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“The moving link” Serving with humility, honesty & integrity. OVERVIEW ROADS AND TRANSPORT. Vision : An Efficient, Safe, Affordable, Sustainable and Accessible Transportation System
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“The moving link” Serving with humility, honesty & integrity OVERVIEW ROADS AND TRANSPORT
Vision : An Efficient, Safe, Affordable, Sustainable and Accessible Transportation System • Mission : To provide, develop, regulate and / or enhance a safe and affordable multi-modal transport system which is integrated with land use to ensure optimal mobility of people and goods in the Province of the Eastern Cape in pursuance of the strategic focus areas contained in the Provincial Growth and Development Plan. • Values : In carrying out its mandate the Department of Roads and Transport subscribes to the following set of values : • Transparency • Accountability • Integrity • Consultation • Professionalism • Transformation • Service delivery ( Batho Pele) • Preservation of the Environment • Respect for our Heritage
Important policy decisions and strategic issues facing the department • The delivery of the policy speech and strategic plan in May 2005 followed a national election. • The Executing Authority gave the strategic direction that transport is moving back to rail. • The department also identified programmes to improve rural accessibility in order to contribute to the national and provincial goals in particular the Provincial Growth and Development Plans 2004 to 2014. • It is general knowledge that strategic performance planning in government is guided by political priorities as cited by the State President, Premier and Member of the Executive Council. The successful implementation of the strategic performance plan for the department is a collective approach led by the Executing Authority on a policy formulating level and the Accounting Officer on an administration level. The senior managers provide strategic collective leadership in policy implementation and monitoring through the different departmental programmes.
Important policy decisions and strategic issues facing the department • The objectives of the departmental programmes indicate how the department intended to continue with its commitment of transforming the department in transport related matters: - • Administration: To render effective financial, human resources and management support services. To provide efficient and sustainable government transport services to user provincial departments. • Public Transport: To formulate, promote and implement integrated transport planning and policies. To provide reliable, safe, affordable and efficient public passenger multi-modal transport systems; and regulation of air traffic control and navigational services. • Traffic Management: To facilitate and promote traffic safety and traffic control.
Significant events and major projects during the year • The road functions was legally transferred from the then Department of Roads and Public Works to the then Department of Transport with effect from 1 September 2004. • The Kei Rail project progressed at a less satisfactory due to the re-location of citizens from siding rail site at Zamukulungisa informal settlement (Mthatha) to a new residential area.
Overview of the voted funds • During the 2005 financial year, provincial legislature appropriated an amount of R312 507 000 (2004:R309 037 000) to the department. • The R312 507 000 was revised to R302 586 000 in order to assist in funding a provincial deficit. The actual total expenditure for the financial year amounted to R 289 367 853 (2004: R 307 901 000). • The amount that was not spent from the vote is R13 218 147, which is 4 % of the Voted funds (2004:R1 136 000, which equals 0.5% of the Voted funds). The unspent amount of R13 218 147, is before the inclusion of non-voted funds and expenditure of local and foreign aid assistance. • The expenditure of R289m reflects a 96 % spending (2004:99.5%) after the final adjustment and write-offs of irrecoverable debts of R2m. The spending, before write-off, amounts to R286m, which is 95% (2004:98%) of the Voted funds.
Motor Vehicle License Fees • The major source of own collected revenue arise from motor vehicle licence fees as a result of fees charged on vehicles usingpublic roads. • The fee is applicable to all annual registrations and renewals of motor vehicle licenses and trailers. While not directly earmarked for road works, the revenue generated from this process provides an important contribution to the provincial fund as own revenue.
Vehicle Licence Number Plates • Ordinary licence number plates are sold by registered private businesses and the department charges royalties at R5.30 per plate. A private company 3M (Pty) Ltd was appointed by the Department of Transport to collect these royalties on its behalf. Since February 2003 the company stopped collecting the royalties as a result of unsigned agreement. Efforts to collect monies since February 2003 are still pursued via the signing of a written agreement. It appears that the amount is recoverable because it is collectable. • The second category of licence number plates is the specific plates or numerical alpha and is sold at R500.00 per set. This revenue is collected by and payable directly to the Department of Transport. • The third category of licence number plates is the personalised plate, which is sold at R1 500.00 per set. The department also collects the revenue from this category.
Significant events and major projects during the year • Own revenue collection target of R152m beginning of the financial year. • Revised the target in November 2004 to R109m. • The department collected R116m (2004:R152 m) as its own revenue, against a revised target of R109m (2004:R149m). • The collection of revenue decreased by 24%, at R116m for 2005 compared to the previous financial year 2004. • A comparison of the collected revenue of R116m with the revised budget of R109m, reflects a 6% (R7m) increase above the target.
Capacity constraints • An organisational structure, as a result of the transfer of Roads function to the Department is in place as at March 2005. • The Department is still constrained by non-filling of critical posts which hampers the Department to deliver on its mandate as prescribed by various legislations particularly the Public Finance Management Act, Public Service Act, National Road Traffic Act and National Land Transport Transition Act. (NLTTA).
Arrive Alive Funds • The department received donor-funding amounting to R374 059 (2004: R2 816 672) in August 2004, from National Department of Transport during the year under review. • The R374 059 received during the current financial year added to the balance at beginning of year which amounted to R1 349 763. • A total amount of R1 102 614 was utilised as reflected in the Notes to the Annual Financial Statements. The balance of R 621 208 is disclosed as part of equity in the balance sheet.
Algoa Bus Funds • An opening balance of R3 272 920 from the previous year was added to an amount of R83 700 000 (2004:R78 000 000) which was received during 2005. • The balance, after claims amounting to R76, 439m by Algoa Bus Company amounts to R10, 534m. (2003: R3 272 920) which is payable in subsequent financial year.
National Land Transport Transition Act (NLTTA) project • An amount of R800 000 was received towards the end of the financial year from National Department of Transport (NDOT). • The purpose of the funds is to assist the Department and certain municipalities as identified by the department, in the preparation of the Operating Licences Strategies (OLS), Rationalisation Plans (Rat Plans), Public Transport Plans (PTPs) and Integrated Transport Plans (ITPs). • A total of R 210 709 was spent and the balance of R589 290 is disclosed in the Annual Financial Statements.
Kei Rail Project • The department utilised the remainder of R10 330 193 from the R28m which was received in 2003/4 from National Department of Transport. • The purpose of funding was to augment the provincial voted funds in carrying out the Kei Rail project, being a refurbishment of the rail line between East London and Umtata. • During the financial year the department utilised R6 935 479 and the remaining balance of R3 394 714 is reflected in the Annual Financial Statements.
Teta • An amount of R125 000 was received which is funding learnerships related to transport sector. • The whole amount was spent subsequent to the financial year end. • This balance at year end is disclosed in the Annual Financial statement.
Corporate governance • Risk Management • Fraud Prevention • Events after the reporting date
Explanation of Variance Voted Funds after virement Actual Difference % • Programme 1:Administration 83,854 81,189 2,665 3.18 • The saving against this programme is due to effective control of expenditure against communication, travel and subsistence and accommodation costs. • Programme 2: Public Transport 117,866 110,072 7,794 6.92 • The under-spending against this programme is due to the fact that the Kei Rail project progressed at a less satisfactory pace due to re-location of citizens from he rail site at Zamukulungisa informal settlement (Mthatha) to a new residential area. • Programme 3 100,866 98,106 2,750 2.74 • The saving against this programme is due to the curbing of spending especially against payments for capital assets in order to assist Provincial Treasury in avoiding the provincial deficit.
R&T at a glimpse • The core business of the department is to promote an integrated transport system that promotes accessibility and mobility. Thus the planning and provision of adequate urban and rural transport facilities and infrastructure relating to land and civil aviation. • Thus creating a transport system which will provide fully integrated transport operations and infrastructure which will best meet the needs of its primary customers plus support governments’ strategies for socio-economic development whilst being environmentally sustainable. • The vote constitutes 5% of the provincial budget or R1,714 billion. • Funding for the vote comprises R885,303 million (51,7%) equitable share, R675,330 million (39,4%) conditional grants and R153,062 million (8,9%) from own revenue.
R&T at a glimpse • There is an overall growth of 7 % from 2004/05 compared to the first year of the 2005/06 MTEF period. This is due to the transfer of Roads function from the Department of Public Works to the department of Transport. Consequently, substantial increases have been recorded in all economic classification as a result of the shift. • The most significant categories of expenditure are Payments for Capital Assets (35%), Goods and Services (31%) followed by Compensation of Employees (20%). • There is a decrease of 13% in Payments for Capital Assets, and 3% for Transfers and subsidies compared to 2004/05 adjusted budget. The decrease in Payments of Capital Assets is due to the department shifting funds to maintenance, which is part of Goods and Services, hence an increase of 57% for Goods and Services.
R&T at a glimpse • 81.2% of the budget has been allocated to Programme 4 (Roads Infrastructure), followed by Public Transport (9%). Programme 4 main driver of the department’s activities. • All programmes increased in their 2005/06 budgets compared to the 2004/05 revised allocation with Roads Infrastructure remaining constant. • The allocations to Municipalities are for contractual obligations to pay for workers taken over by the Municipalities specifically to perform roads functions. • A further 250,000 is allocated specifically for the HIV/Aids program.
Challenges • Roads function take-over. • Softer Issues around mergers: • Work ethic / culture • Skill levels • Own revenue of 8,9% (R153,062 million) • Supply chain management fine-tuning • Getting the basics right
Overview of Programme 1
OVERVIEW OF PROGRAMME 1 • The Programme has been transformed into six sub programmes, namely : • Office of the MEC • Management • Corporate Support • Programme Support • Organisational Development • Government Fleet Management
OVERVIEW OF PROGRAMME 1 The Sub-Programme: Office of the MEC is to provide overall strategic leadership and policy decisions to all divisions in the department from which the strategic objectives will flow. The Sub-Programme: Management is to provide strategic direction of the department and overall management to ensure that the policy, projects and commitments set by the Executing Authority are accomplished. The Sub-Programme: Corporate Support is to manage financial resources, information systems, budgeting, expenditure controls, effective provisioning and asset management and revenue collection.
OVERVIEW OF PROGRAMME 1 The Sub-Programme: Programme Support is to provide efficient human resources; to promote effective management of information and technology as a strategic resource and to develop work improvement procedures and methods. The Sub-Programme: Organisational Development is to influence departmental policies for advancement of transformation viz. Affirmative Action, Employment Equity, Skills Development, Procurement Policies, etc. The Sub-Programme: Government Fleet Management is To determine and supply suitable vehicles to user Departments, and facilitating general hire (pool) vehicle replacement and to complete the restructuring of the Government Motor Transport Garages; as well as implementing provincial and national policies on the provision of government transport by completing the investigation of the PPP strategy.
Administration • This was the second year whereby the department managed the 5 year contract with Fleet Africa for providing Fleet Management services to provincial departments. • This contract will expire in August 2008. • Despite the initial hurdles, substantial improvements have occurred during period under review which can be contributed to frequent reviews and consultations with line departments. • Consequently the reporting of misuse of vehicles has declined tremendously, compared to previous years.
Overview of Programme 2
PUBLIC TRANSPORT • PURPOSE • To plan, regulate and facilitate the provision of public transport services and infrastructure facilities in order to enhance mobility of all communities, particularly those without or with limited access.
OVERVIEW OF PROGRAMME 2 • The Programme has been transformed into seven sub programmes, namely : • Programme Support • Planning • Infrastructure • Empowerment & Institutional Management • Operator Safety & Compliance • Regulation & Control • Civil Aviation
OVERVIEW OF PROGRAMME The Sub-Programme: Planning is responsible for developing the statutory plans required in terms of the National Land transport Transition Act, 2000 and the accompanying provincial legislation. The Sub-Programme: Infrastructureis responsible for designing and implementing the public transport infrastructure required for providing services in terms of the plans. The Sub-Programme: Empowerment and Institutional Management is responsible to ensure that persons in the industry who provide and manage public transport are empowered to perform their function and receive adequate training to enable them to provide the required level of service delivery..
OVERVIEW OF PROGRAMME The Sub-Programme: Programme Support is to provide efficient human resources; to promote effective management of information and technology as a strategic resource and to develop work improvement procedures and methods. The Sub-Programme: Operator Safety & Compliance is to promote and improve safety on the public transport system and to enforce compliance with public transport legislation and regulations as well as the liaison and co-ordination of provincial safety and compliance initiatives.. The Sub-Programme: Civil Aviaton : The main focus area of the sub-programme is the provision of management of air space and airport management services in terms of the civil aviation act, regulations and requirements of the international civil aviation organization (ICAO).
SERVICE DELIVERY RESULTS SUB-PROGRAMME 2.1: PLANNING
