1. Department of Transport
Portfolio Committee on Transport
Expenditure to Quarter 2 of 2012/13
13 November 2012 1

2. Contents: Budget per programme Budget per economic classification
Adjustments
Virements
Adjusted Budget vs Expenditure
Expenditure Analysis per Programme
Expenditure on Conditional Grants
Expenditure on Transfers
Overview of Public Entities 2

3. BUDGET PER PROGRAMME 3 PER PROGRAMME Voted (Main appropria-tion)
Roll-overs
Unforeseen/ unavoidable
Virements and shifts due to savings
Self-finan-cing
Declared savings
Significant and unforsee-able economic and financial events
Total adjust-ments
Adjusted appropria-tion
Administration
317,473 -
14,969
1,407
16,376
333,849
Integrated Transport Planning
88,542
34,900
(5,272)
322
29,950
118,492
Rail Transport
10,298,893
2,308
163
2,471
10,301,364
Road Transport
17,928,809
4,468
297,000
428
301,896
18,230,705
Civil Aviation
70,022
450,000
284
450,284
520,306
Maritime Transport
138,543
20,000
(9,697)
173
10,476
149,019
Public Transport
9,986,670
38,700
(32,230)
353
6,823
9,993,493
Total
38,828,952
80,376
470,000
3,130
818,276
39,647,228 3

4. PER ECONOMIC CLASSIFICATION
Voted (Main appropriation)
Roll-overs
Unforeseen / unavoidable
Virements and shifts due to savings
Self-finan-cing
Declared savings
Significant and unforseeable economic and financial events
Total adjustments
Adjusted appropriation
Current Payments
848,083
80,376
20,000
(6,100)
297,000 -
3,130
394,406
1,242,489
Compensation of employees
316,129
319,259
Goods and services
531,954
391,276
923,230
Transfers and subsidies
37,976,514
450,000
4,100
(32,230)
421,870
38,398,384
Provinces and municipalities
17,324,512
Departmental agencies and accounts
9,895,405
1,000
9,896,405
Higher education institutions
9,648
Foreign governments and international organisations
6,032
3,100
9,132
Public corporations and private enterprises
10,227,905
10,677,905
Non-profit institutions
17,827
Households
495,185
462,955
Payments for capital assets
4,355
2,000
6,355
Machinery and equipment
Total
38,828,952
470,000
818,276
39,647,228 4

5. PRG 2: INTEGRATED TRANSPORT PLANNING
ADJUSTMENTS: ROLLOVERS
ROLL OVER (R’000)
PRG 2: INTEGRATED TRANSPORT PLANNING
Funds rolled over for the National Household Travel Survey
34,900
PRG 3: RAIL TRANSPORT
Funds rolled over for the development of Rail Policy and Act
2,308
PRG 4: ROAD TRANSPORT
Funds has rolled over for the S'hamba Sonke programme management support service,
4,468
PRG 7: PUBLIC TRANSPORT
Funds rolled over for the technical support and verification of bus contracts payments in Limpopo.
8,500
Funds rolled over for the technical support and verification of road infrastructure payments in Limpopo
30,200
TOTAL: ROLL OVER
80,376 5

6. UNFORESEEN AND UNAVOIDABLE PRG 7: MARITIME TRANSPORT
ADJUSTMENTS: UNFORESEEN
AND UNAVOIDABLE
UNFORESEEN AND UNAVOIDABLE
PRG 5: CIVIL AVIATION
Expenditure has been approved for the refurbishment of Mthatha Airport
450,000
PRG 7: MARITIME TRANSPORT
Expenditure has been approved for the removal of Seli 1 wreck from the Bloubergstrand beach near Table Bay
20,000
TOTAL
470,000
OTHER ADJUSTMENTS
Adjustments due to significant and unforeseeable economic and financial events
3,130 6

7. ADJUSTMENTS: SELF FINANCING AND DECLARED SAVINGS
PRG 4: ROAD TRANSPORT
Funds collected from transaction fees and has been allocated to the department for the payment to the service provider for the maintenance and upgrade of the electronic National Traffic Information System (eNaTIs)
297,000
DECLARED SAVINGS
PRG 7: PUBLIC TRANSPORT
Funds has been declared as under spending on Taxi recapitalisation transfer
32,230 7

8. VIREMENTS 8 FROM: TO: Programme by economic classification Motivation
TO:
Programme by economic classification
Motivation
R thousand
Programme 1
Goods and services
Funds shifted from the sub-programme: Ministry due to the reprioritization on goods and services.
(2,000)
Machinery and equipment
Funds shifted within the sub- programme to fund the purchases of the new vehicle for the Minister.
2,000
Programme 2
Funds shifted from Programme 2: Integrated Transport Planning in the sub-programme: Macro Sector Planning due to a departmental reprioritization process.
(5,272)
Funds shifted to Programme 1: Administration in the sub-programme: Management to fund the consultants to address the Auditor-General's report
5,272 8

9. VIREMENTS CONTINUED 9 FROM: TO: Programme by economic classification
TO:
Programme by economic classification
Motivation
R thousand
Programme 5
Goods and services
Funds shifted from the sub-programme: Aviation Safety and Security. Funds were initially reprioritized for the International Civil Aviation day on goods and services  
(1,000)
Departmental agencies and accounts
Funds shifted to the sub-programme: Aviation Oversight to fund the International Civil Aviation Day. Funds will increase the transfer to the South African Civil Aviation Authority.
1,000
Funds shifted from the sub-programme: Aviation Regulation  which were initially reprioritized on goods and services to fund the SADC Safety and Airworthiness
(3,100)
Foreign governments and international organisations
Funds shifted to the sub-programme: Aviation Oversight to fund the SADC Safety and Airworthiness Funds will increase the transfer to the International Civil Aviation Authority
3,100 9

10. VIREMENTS CONTINUED 10 FROM: TO: Programme by economic classification
TO:
Programme by economic classification
Motivation
R thousand
Programme 6
Programme 1
Goods and services
Funds shifted from Programme 6: Maritime Transport in the sub-programme: Implementation, monitoring and evaluation due to a departmental reprioritisation process.
(9,697)
Funds shifted to Programme 1: Administration in the sub-programme: Management to fund the consultants to address the Auditor-General's report a and the International Maritime Organisation Diplomatic conference
9,697 10

11. ADJUSTED BUDGET VS EXPENDITURE
PER PROGRAMME
Adjusted Appropriation
Total Expenditure April to Sept 2012
Expenditure as % of Adjusted Appropriation
Available budget
Administration
333,849
166,799
50.0%
167,050
Integrated Transport Planning
118,492
28,402
24.0%
90,090
Rail Transport
10,301,364
5,142,026
49.9%
5,159,338
Road Transport
18,230,705
9,397,997
51.6%
8,832,708
Civil Aviation
520,306
32,609
6.3%
487,697
Maritime Transport
149,019
53,002
35.6%
96,017
Public Transport
9,993,493
2,890,415
28.9%
7,103,078
Total
39,647,228
17,711,250
44.7%
21,935,978 11

12. ADJUSTED BUDGET VS EXPENDITURE CONTINUED
PER ECONOMIC CLASSIFICATION
Adjusted Appropriation
Total Expenditure April to Sept 2012
Expenditure as % of Adjusted Appropriation
Available budget
Current Payments
1,242,489
391,321
31.5%
851,168
Compensation of employees
319,259
149,820
46.9%
169,439
Goods and services
923,230
241,501
26.2%
681,729
Transfers and subsidies
38,398,384
17,316,269
45.1%
21,082,115
Provinces and municipalities
17,324,512
7,043,942
40.7%
10,280,570
Departmental agencies and accounts
10,346,405
4,968,200
48.0%
5,378,205
Higher education institutions
9,648
4,876
50.5%
4,772
Foreign governments and international organisations
9,132
3,231
35.4%
5,901
Public corporations and private enterprises
10,227,905
5,113,953
50.0%
5,113,952
Non-profit institutions
17,827
8,000
44.9%
9,827
Households
462,955
174,067
37.6%
288,888
Payments for capital assets
6,355
3,660
57.6%
2,695
Machinery and equipment
3,597
56.6%
2,758
Payments for financial assets - 63
N/A
(63)
Total
39,647,228
17,711,250
44.7%
21,935,978 12

13. DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME
Programme 1: Administration
The programme has been allocated a total adjusted budget of R333.8 million. To date the programme has spent R166.8 million or 50% of the allocated adjusted budget, against the benchmark expenditure drawings target of R149.7 million or 45%. 13

14. DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.)
Programme 2: Integrated Transport Planning
The programme has been allocated a total adjusted budget of R118.5 million. The programme has spent R28.4 million to date or 24% of the allocated adjusted budget, against the benchmark expenditure drawings target of R44.3 million or 37%.
The under spending is mainly due delays on projects such as the National Household Travel Survey, the update of the National Freight databank, and cross border optimization plan. The service level agreements have been signed on most of the projects and the expenditure is expected to escalate in the coming months. 14

15. DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.)
Programme 3: Rail Transport
A total adjusted budget of R billion has been allocated. The programme has spent R5.142 billion to date or 50% of the allocated adjusted budget, against the benchmark expenditure drawings target of R5.149 billion or 50%.
The under spending of R7 million against the expenditure drawings target was mainly due in the following goods and services projects; Feasibility Study Rail Manufacturing, Rail Economic Regulator, Rail safety gap analysis and Institutional Reform in Republic of South Africa (RSA) project and the delay in the approval of Rail Policy & Act. Expenditure is expected to escalate in the coming months. 15

16. DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.)
Programme 4: Road Transport
A total adjusted budget of R billion has been allocated. The programme has spent R9.398 billion to date or 52% of the allocated adjusted budget, against the benchmark expenditure drawings target of R9.406 billion or 52%.
The under spending is mainly due delays on the following projects: Decade of Action for Road Safety, and review of drivers training manual. The programme is busy with the process to appoint the service providers and expenditure is expected to escalate in the coming months. 16

17. DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.)
Programme 5: Civil Aviation
A total budget of R520.8 million has been allocated. The programme has spent R32.6 million to date or 6.3% of the allocated adjusted budget, against the benchmark expenditure drawings target of R37.7 million or 7.2%.
The under spending is mainly due to delays in the establishment of Regulating Committee and the establishment of the Civil Aviation Safety Investigation Board. 17

18. DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.)
Programme 6: Maritime Transport
A total adjusted budget of R149 million has been allocated. The programme has spent R53 million to date or 36% of the allocated adjusted budget and against the benchmark expenditure drawings target of R67.5 million or 45%.
The under spending is mainly due to delays in concluding the contract for the watchkeeping services and late invoices for oil pollution prevention. 18

19. DEPARTMENTAL EXPENDITURE ANALYSIS PER PROGRAMME (cont.)
Programme 7: Public Transport
A total adjusted budget of R9.993 billion has been allocated. The programme has spent R2.890 billion to date or 30% of the allocated adjusted budget and against the benchmark expenditure drawings target of R2.970 billion or 30%.
The under spending is mainly due to lengthy administration process with regard to the transfer payment for Taxi recapitalisation. The under spending on goods and services was mainly due to delays in the following projects: the development of the scholar transport framework, the development of migration plan for scholar transport and integrating the Shova Kalula into scholar transport services. Expenditure is expected to escalate in the coming months of the financial year. 19

20. EXPENDITURE ON CONDITIONAL GRANTS
Details of Grants
Cumulative amounts (R’000)
Quarter 1
July
August
Sept
Payment Schedules:
Rural Roads Asset Management
37,295
Public Transport Infrastructure & Systems
228,000
458,000
Provincial Roads Maintenance
1,995,463
4,390,017
Public Transport Operations
1,122,490
1,467,870
1,813,250
2,158,630
Payments made:
31,967
158,000
4,211,580
Variances:
5,328
70,000
178,437 20

21. EXPENDITURE ON CONDITIONAL GRANTS (Cont.)
Details of Grants
Cumulative amounts (R’000)
Quarter 1
July
August
Sept
Variances:
Rural Roads Asset Management
5,328
Public Transport Infrastructure & Systems
70,000
Provincial Roads Maintenance
178,437
Public Transport Operations
Variances in July 2012 were due to payments that were rejected on the SafetyNet system:
Rural Roads Asset Management Grant:
Bank accounts were amended - payments were rejected and paid in August 2012: Uthungu, Amajuba and Umgungundlovu District Municipalities Rm 1,776 each
Public Transport Infrastructure & Systems Grant:
Payments to Metropolitan Municipalities were rejected and paid in August 2012: Ekhurhuleni R10m, Nelson Mandela Bay R10m and Johannesburg R50m
Provincial Roads Maintenance Grant:
The payment to North West Provincial Treasury was rejected and paid in August 2012 21

22. EXPENDITURE ON CONDITIONAL GRANTS (Cont.)
Provincial Roads Maintenance Grant:
Summary 2011/12 to Quarter 2 of 2012/13
R’000 %
Total paid to Provinces
10,847,371
100.00%
Total spent by Provinces
8,591,723
79.2%
Unspent to Quarter 2 of 2012/13
2,255,648
20.8%
Public Transport Operations Grant:
Summary 2010/11 to Quarter 2 of 2012/13
R’000 %
Total paid to Provinces
10,185,936
100.0%
Total spent by Provinces
9,732,449
95.55%
Unspent to Quarter 2 of 2012/13
453,487
4.45% 22

23. EXPENDITURE ON CONDITIONAL GRANTS (Cont.)
Public Transport Infrastructure and Systems Grant:
Summary 2005/06 to Quarter 2 of 2012/13
R’000 %
Total paid to Municipalities
16,113,446
100.0%
Total spent by Municipalities
11,467,244
71.2%
Unspent to Quarter 2 of 2012/13
4,646,202
28.8%
Rural Road Asset Management Grant:
Summary 2011/12 to Quarter 2 of 2012/13
R’000
Total paid to Municipalities
72,734
100%
Total spent by Municipalities collectively
2,727,851
100%+
Notes: Of the 21 Municipalities:
9 Spent much more than the grant that was received on road asset management
4 Did not yet spend funds received
6 Started spending in the 1st Quarter of 2012/13 – No funds were transferred in the 1st Quarter 23

24. EXPENDITURE ON TRANSFERS (EXCL. CONDITIONAL GRANTS)
Recipient
Transfer
(R’000)
Phased Budget
Phased Variance
Notes
Passenger Rail Agency of S.A.
5,113,953
S.A. National Roads Agency
4,864,026
Road Traffic Management Corporation
61,809
41,206
(20,603)
Advance payment
Railway Safety Regulator
19,675
S.A. Civil Aviation Authority
8,013
Ports Regulator
7,535
Marine Rescue Co-Ordination Centre
3,078
3,079 1
S.A. Maritime Safety Authority
1,565
Road Traffic Infringements Agency
2,500
Transport Education & Training Authority
104
Await training schedules
S.A. National Taxi Association
8,000
8,230
230
Search and Rescue organisations
684
Await reports
Universities
6,207
8,295
2,088
Paid per schedules
Foreign memberships
3,231
3,016
(215)
Most fees already paid
Taxi Recapitalisation
173,841
247,521
73,680
Less taxis scrapped excl Sept 2012
Leave pay and donations 2
(2)
To shift funds
TOTALS
10,273,435
10,329,402
55,967 24

25. Cash and Cash Equivalents Cash increase (decrease)
OVERVIEW OF PUBLIC ENTITIES
R’000: As at 30 September Financial Year 2012/13
Entity
Retained Earnings
Surplus (Deficit)
Cash and Cash Equivalents
Cash increase (decrease)
Net Current Assets
ACSA
9,957,849
703,829
3,196,171
1,215,786
2,832,518
ATNS
1,105,546
151,253
582,640
56,971
560,330
RAF
(46,056,084)
411,713
5,494,011
1,249,000
(4,506,612)
Of which
41,688,126
Provision for outstanding claims
PRASA Group
(2,305,191)
(523,561)
4,130,842
(329,234)
3,084,468
SANRAL
(7,073,602)
(925,909)
6,154,232
(3,077,699)
2,934,318
SACAA
67,023
16,086
185,534
(4,982)
99,570
SAMSA
176,346
(53,778)
171,863
56,607
165,202
C-BRTA
101,610
27,012
111,139
26,488
94,313
RSR
22,488
11,150
8,658
7,370
29,211
RTMC
(207,457)
(4,283)
212,366
81,925
(215,184)
RTIA
15,785
9,077
1,668
15,015 PR
8,518
3,049
8,032
2,272
7,592 25

26. ABBREVIATIONS Abbreviation Meaning PRASA
Passenger Rail Agency of South Africa Ltd.
RSR
Railway Safety Regulator
SANRAL
South African National Roads Agency SOC Ltd.
RTMC
Road Traffic Management Corporation
CBRTA
Cross Border Road Transport Agency
RTIA
Road Traffic Infringements Agency
RAF
Road Accident Fund
ACSA
Airports Company of South Africa Ltd.
ATNS
Air Traffic and Navigation Services Company Ltd.
SACAA
South African Civil Aviation Authority
SAMSA
South African Maritime Safety Authority PR
Ports Regulator of South Africa
PRMG
Provincial Roads Maintenance Grant
PTIS
Public Transport Infrastructure and Systems Grant
PTOG
Public Transport Operations Grant
BEE
Black Economic Empowerment
SADC
Southern African Development Community 26

27. Thank you 27