Download
1 / 59
590 likes | 731 Vues
Department of Energy. Presentation to the Parliamentary Committee on Energy – 3 rd Quarter Performance (2013/14) Nelisiwe Magubane 11 February 2014. CONTENT. Introduction- 2013/14 Midterm Review Highlights for the quarter Financial Report Programme Performance Conclusion.
E N D
Department of Energy Presentation to the Parliamentary Committee on Energy – 3rd Quarter Performance (2013/14) Nelisiwe Magubane 11 February 2014
CONTENT • Introduction-2013/14 Midterm Review • Highlights for the quarter • Financial Report • Programme Performance • Conclusion
INTRODUCTION • Mid-Term Review conducted November 2013 • Revised 2013/14 APP and Operational Plans are aligned to the Framework for Strategic Plans and Annual Performance Plans • Branch presentations to respond to additional points raised by the Chairperson of the PCE, last Friday afternoon.
B. HIGHLIGHTS FOR THE QUARTER • Announcement of the successful bidders for Window 3 • Implementation of the Regulatory Accounting System (RAS) • Concluded the IEP • Finalised the review of the IRP • Nuclear -Completed the Self Assessment Report • Completed the Leadership Development Management Programme for Senior Managers • Completed and submitted the annual Management Performance Assessment Tool (MPAT) to DPME
PRESENTATION LAYOUT 3rd Quarter Financial Performance: Overview per Economic Classification Top 5 Major Cost Drivers (Goods & Services) Overview per Programme Transfer Payment Schedule for 2013/14
2013/14: 3rd QUARTER FINANCIAL PERFORMANCE Overview – per Economic Classification
Total expenditure as at the end of the quarter under review was planned or estimated at R5.7 billion and the actual amount spent was a total of R4.1 billion or 72.7% resulting in a budget variance of R1.5 billion or 27.3% • The composition of this budget balance was as follows: • Compensation of employees: R14.6 million (7.9%) below budget mainly attributable to vacancies • Goods & services: R41.7 million (27.4%) below budget due to various projects which could not commence as planned • Transfer payments: R1.49 billion (28%) below budget mainly due the budget under spend in the EEDSM-Eskom programme which is accountable for R1.14 billion or 19% of the total transfer payments’ budget balance. • Payments for Capital Assets: R2.4 million (39.5%) below budget, most of this amount is currently committed in the system. 3rd QUARTER FINANCIAL PERFORMANCE FOR 2013/14
MAJOR COST DRIVERS (Top 5): GOODS AND SERVICES • Total spent on Goods & services is R110.8 m • The top 5 costs accounts for 68.6% of the total spend • Spending on travel and subsistence constituted 37% of the total Departments goods and services expenditure, 51% still being accounted by the Administration programme • Operating leases is mainly for office accommodation lease rentals for head office and all regional offices • More than 50% of total computer costs are incurred on services rendered by SITA
Programme 1: Administration • Compensation of employees: Variance is mainly due to vacancies. The recruitment process for these is currently underway. • Goods & services: Due to a number of engagements undertaken towards the latter part of the year, e.g. nuclear study tour headed by the Minister, the travelling costs came to more that anticipated which resulted in the budget over spend. • Payments for Capital Assets: The saving is currently committed, awaiting delivery of goods & services.
Programme 2: Energy Policy and Planning • The over spend in Goods and services is attributable to the number of IEP stakeholder engagement workshops which were undertaken. This variance is off-set by the under-spending in compensation of employees.
Programme 3: Energy Regulation • Compensation of employees: Variance is mainly due to vacancies. The recruitment process for these is currently underway. • Goods & services: The process of appointing a service providers to undertake the fuel specification testing project and the replacement cost of (4) secondary depot size project is currently underway.
Prog.4: Electrification & Energy Programmes Management • Compensation of employees: Variance due to vacancies, the recruitment process is currently underway • Goods and services: Saving is mainly due to the delayed procurement of a reporting tool and its related support, the procurement process is underway. Part of the saving is earmarked for the marketing of Non-grid technologies in certain areas where backlogs have been identified. • Transfer payments: The variance is mainly attributable to the performance of the Non-grid electrification project, which is R33.3 million behind in spending. The delay in the finalization of service providers’ contracts contributed to the variance. The transfers to certain municipalities were also withheld , an application was made to Treasury for the re-directing of these allocations to other municipalities . National Treasury has since sanctioned the proposed redirection, payments will thus follow.
Programme 5: Nuclear Energy and Regulation • Compensation of employees: The reported saving is attributable to vacancies, the recruitment process of which was finalized in December 2013. • Goods and services: Variance is due to delays in projects, i.e. the nuclear awareness campaigns, study on the cost of nuclear power and advisory services on the financing options, models and solutions for the new nuclear build programme. These projects have since commenced. • Transfer Payments: The transfers to the NRAWDI could not be transferred as the appointment of the board was still not finalized. The board has since been appointed and the operationalization of the Institute has commenced.
Programme 6: Clean Energy • Goods and services: The planned Clean energy/energy efficiency awareness campaigns could not commence as planned due to conflicting engagements, resulting in the above variance. The saving from this project, which cannot be utilized, will be redirected to the SWH local content verification project, the procurement process of which has commenced. • Transfers and subsidies: The reported variance mainly emanates from the EEDSM-Eskom programme. No transfers could be processed as the implementation contract with Eskom was not finalized.
3rd QUARTER TRANSFER PAYMENT SCHEDULE FOR 2013/14 • YTD, the transfer payments category reflected a budget under spend of R1.49 billion (28%) mainly due to the following: • EEDSM Municipalities: R31.65 million (30.8%) under budget as a result of the withholding of transfers from certain municipalities in terms of the provisions of DoRA. Through regazetting, these transfers will be directed towards other municipalities before year end • EEDSM –Eskom: R1.24 billion or 100% under budget, due to the delayed finalization of the implementation contract with Eskom • INEP Municipalities: R193.40 million (13.7%) million under budget mainly due to the late submission of payment requests from municipalities. Expenditure is expected to increase during last quarter of 2013/14 financial year following the re-gazetting of some withheld allocations. • INEP Non-grid: R25.5 million (42.9%) under budget. Work already undertaken by service providers must first be verified before payments can be processed. This will be done during last quarter of 2013/14 • financial year.
3rd QUARTER TRANSFER PAYMENT SCHEDULE FOR 2013/14 • NWRDI: R15.9 million (100%) under budget due to the delay in the establishment of the institute and its board of directors . The appointment of the board was finalized in November 2013. Interim arrangements has been instituted to ensure a transfer before 31 March 2014
PROJECTED SPENDING TO 31 MARCH 2014 • As at the end of the quarter under review, the Department had utilized a total of R4.13 billion or 63.5% of its total 2013/14 budget of R6.50 billion. • The above resulted in the available budget balance of R2.37 billion to be utilized in the 4th quarter of 2013/14 financial year. • The Forecast, based on information in the system, is that a total of R2.32 billion will be spent in the 4th quarter as follows: • Compensation of employees: R56.6 million • Goods & services: R60.9 million • Transfer payments: R2.2 billion • Payments for Capital Assets: R7.7 million • Based on the estimates available it is forecasted that 56 million will be unspent, However plans are in place to utilize a total of R40 million.
CONCLUSION • In the 2012/13 financial year, the Department spent 98.9% of its allocated budget (99.6% of the allocated budget was spent in 2011/12). • Based on the best available information to date, it is anticipated that in the 2013/14 financial year, the Department will spend 99% of its allocated budget .
PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT)
PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT) (1)
PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT) (2)
PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT) (3)
PROGRAMME 4 (ELECTRIFICATION AND ENERGY PROGRAMME MANAGEMENT) (4)
