1. DEPARTMENT OF TRANSPORT
PORTFOLIO COMMITTEE PRESENTATION
2ND QUARTER 2015/16

2. Organisational Health Financial Information
Contents
Overview
Performance Analysis
Organisational Health
Financial Information 2

3. Overview
Report focuses on the progress made with the implementation of programmes & projects in the period covering 01 July 2015 – 30 September 2015;
Focus was on optimal performance of deliverables in terms of the MTEF 2015/16 – 2017/18;
Report in compliance with relevant statutory requirements

4. Department Of Transport (Overall)
Total Number of targets = 50 % Achievement = 43 targets (86%) % Not Achieved = 7 targets (14%)

5. Department Of Transport (Overall)
39,8%
Women in SMS
Expenditure
51%
Vacancy Rate
18.9%
1,79%
Disabled
*Vacancy Rate, Expenditure and Equity Stats are as at end of September 2015 while Performance covers only Q2

6. Department Of Transport (Quarter to Quarter)
PROGRAMME
TOTAL NUMBER OF TARGETS
ACHIEVED Q1
ACHIEVED Q2
Non / Improvement from previous quarter
Number of targets %
Administration
Q1 = 7 / Q2 = 8 6
85.7% 7
87.5%
Integrated Transport Planning 9
77.8%
100.0%
Rail Transport 5 2
40.0%
Road Transport 4
Civil Aviation 8
75.0%
Maritime Transport
50.0% 3
37.5%
Public Transport
DoT (Overall ) 50 37
75.5% 43
86.0%

7. PERFORMANCE PER PROGRAMME

8. Administration: Key Notable Q2 Achievements
Human Resource Development: 59 interns exposed to training intervention
Upgrading of DoT internet system: Internet system upgraded and roll out will continue in the 3rd quarter
Enterprise Architecture: Application and Data architectures finalised

9. Administration: Notable Q2 non-achievements
Vacancy Rate: Only 21 vacant posts were filled during the quarter against a target of 29. The shortfall was as a result of a moratorium placed by the National Treasury on filling vacant posts due to unavailability of funding.
Remedial Action: DoT is in the process of engaging the National Treasury for consideration of application for additional funds.

10. Administration: Carry-Over deliverable from Q1
International Relation Strategy:
The draft of the International Relations Strategy was finalised in Quarter 2 and stakeholder consultations on the strategy were conducted.

11. ITP: Key Notable Q2 Achievements
Review of the White Paper on the National Transport Policy: Policy Gap Analysis has been conducted
Review of the Road Freight Strategy: Stakeholder consultations conducted with the National Transport Forum
Infrastructure Funding Framework and Transport Pricing Framework: Stakeholder consultations conducted with National Taxi Association, SA Bus Operation Association
Public Sector Participation Framework: Draft PSP Framework developed and consultations conducted with PRASA, Transnet, DBSA and the National Treasury

12. ITP: Carry-Over deliverable from Q1
Transport Pricing Framework:
Inception report developed accordingly and stakeholder consultations conducted as targeted in Q2.
Road Freight Strategy:
Service provider appointed and consultative workshop held with the National Transport Forum as targeted in Quarter 2.

13. Rail Transport: Key Notable Q2 Achievements
National Railway Policy: Green Paper on the National Railway Policy approved by Cabinet in August The launch and stakeholder consultations of the Green Paper took place in September 2015.
National Railway Safety Regulator Bill: Draft Amendment Bill developed

14. Rail Transport: Carry-Over deliverable from Q1
National Railway Policy:
Green Paper approved by Cabinet in August 2015 and stakeholder consultations commenced in September 2015 as targeted.
National Railway Safety Regulator Bill:
Scoping and needs analysis conducted; and draft Bill developed as targeted.
National Railway Safety Strategy:
Inception report and a draft conceptual report developed.

15. Road Transport: Key Notable Q2 Achievements
Roads Policy: Stakeholder consultations on the Policy conducted during the quarter and are ongoing
S’hamba Sonke Programme: National Support for Provincial Road Maintenance: Monitoring of projects ongoing. Progress reports on expenditure and physical indicators provided for the quarter
AARTO Amendment Bill: Bill approved by JCPS Cluster in June for presentation at Cabinet .

16. Civil Aviation: Key Notable Q2 Achievements
National Civil Aviation Policy: Stakeholder consultations conducted in July 2015 and stakeholder comments incorporated in August The Policy was presented at the ESEID Cluster in September 2015.
National Airports Development Plan: Stakeholder inputs discussed and incorporated in August 2015 and presented to the ESEID Cluster.
Accident and Incident Investigations: 30 occurrence reports published with 13 safety recommendations and 2 emergency recommendations made.

17. Civil Aviation: Carry-Over deliverable from Q1
ACSA and ATNS Amendment Bills:
Stakeholder consultations ongoing.
Regulations for the phasing out of the Chapter 2 Aircraft:
Legal vetting process complete and draft regulations submitted to Minister for approval as targeted.

18. Maritime Transport: Key Q2 Notable Achievements
Merchant Shipping Bill: Bill approved by the PCOT and NCOP; and will be presented at the National Assembly
African Maritime Charter: Charter presented to PCOT in September 2015

19. Maritime Transport: Notable Q2 non-achievements
National Maritime Transport Policy: The Green Paper could not be finalised for submission to the ICTS Cluster due to capacity constraints
Remedial Action: Service provider to be appointed to finalise the Green Paper and the submission to ICTS will be fast-tracked
Cabotage Policy: The appointment of the service provider has not yet been finalised
Remedial Action: Fast tracking the appointment of the service provider

20. Maritime Transport: Notable Q2 non-achievements
Cabotage Strategy and Bill: The appointment of the service provider has not yet been finalised
Remedial Action: Fast tracking the appointment of the service provider
Inland Waterway Strategy: Stakeholder inputs still being captured
Remedial Action: Stakeholder meeting to be convened in Q3 to finalise inputs

21. Maritime Transport: Carry-Over deliverable from Q1
Recommendations of mock audit findings:
Red Flag: The audit is complete and the report has been finalised. Initiating process of stakeholder consultations
1st and 2nd quarter targets missed.

22. Public Transport: Key Notable Achievements
Rural Transport Strategy: Reviewed strategy submitted to MinMEC
Integrated Public Transport Turnaround Plan: Draft plan presented to Provinces and Bus Industry in July 2015

23. Public Transport: Notable Q2 non-achievements
Land Transport Amendment Bill: Bill submitted to Cabinet in Q1. Cabinet recommended further consultations with CoGTA, which were subsequently held in July Bill currently being processed for re-submission to Cabinet.
Remedial Action: Bill will be submitted to State Law Advisors once approved by Cabinet.

24. Organisational Health
Vacancy Rate
Current vacancy rate is 18%. Down by 0.58% from 1st Quarter.
Notable high vacancy rates in ODG (21%), TIS (26%), Road Transport (28%), Civil Aviation (21%) and Maritime Transport (21%)
Total of 38 vacant positions in SMS

25. Organisational Health
Employment Equity
Female representation in SMS level stands at 40%
Of the 38 vacant SMS positions, 30 are earmarked for females
2 SMS members who have disabilities (1.8%)

26. Governance Risk Management
Risk Management Strategy developed and approved.
Responses to Audit Findings
Action plans to address 2014/15 Audit Findings developed and implemented.

27. Factors Affecting Performance
Government-wide policy decisions (E.g. National Treasury moratorium on filling of vacant posts)
Non-availability of evidence to support reported information
Evidence submitted not in line with approved Technical Indicator Descriptions
Capacity constraints (skills and vacancies)
External dependencies beyond DoT control
Prolonged procurement processes

28. FINANCIAL INFORMATION

29. Contents Expenditure per Programme to 30 September 2015
Expenditure per Economic Classification to 30 September 2015
Transfer Payments
Provincial Road Maintenance Grant
Public Transport Operations Grant

30. Expenditure per Programme to 30 September 2015
Original Budget
Virements and Additional funding
Adjusted budget
Cashflow projection
Expenditure
Available
Under / (Over) spent
% Spent
R'000
R'000  
1. Administration -
(19 695)
51%
2. Integrated Transport Planning
80 583
7 500
88 083
40 457
35 228
52 855
5 229
40%
3. Rail Transport
5 126
60%
4. Road Transport
( )
52%
5. Civil Aviation
81 200
70 905
78 621
10 295
47%
6. Maritime Transport
10 000
55 203
45 933
75 156
9 270
38%
7. Public Transport
(17 500)
33%
Total Department
37 630
The Department has a total adjusted budget of R billion. To date of reporting the department has spent R billion or 51% of the allocated budget.

31. Expenditure per Economic Classification
Original Budget
Virements and Additional funding
Adjusted budget
Cashflow projection
Expenditure
Available
Under / (Over) spent
% Spent
R'000
R'000  
  R'000
Compensation of Employees
11 200
(8 122)
48%
Goods and Services
(3 571)
(56 903)
55%
Transfers & Subsidies
51%
Machinery and Equipment
4 133
1 584
5 717
2 522
5 256
461
(2 734)
92%
Payment for financial assets - 44
(44) 0%
Total Department
37 630
Compensation of Employees: Overspent due to salary increase, an amount of R11.2 million has been allocated to cover the shortfall which was lower than what the Department required. The National Treasury has requested the Department to stop the filling of vacancies.
Goods and Services: Overspending due to the cost of maintaining and operating the eNatis, state funerals and AU conference.
Transfers and Subsidies: Underspent due to slow spending in the Taxi Recapitalisation project, however a journal of an amount of R52 million has been processed and the expenditure will reflect in the October report.
Machinery and Equipment: Reclassification of operating leases due to modified cash standards, funds will be shifted from goods and services to cover the overspending.
NOTE: Cashflow projections has not yet been revised for adjusted budget It will be revised after adjusted appropriation bill.

32. Expenditure per Economic Classification: Programme 1
Original Budget
Virements and Additional funding
Adjusted budget
Cashflow projection 2nd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
5 000
78 487
87 848
87 964
(9 361)
50%
Goods and Services
(3 647)
91 640
94 115
(8 375)
52%
Transfers & Subsidies
12 490
(1 853)
10 637
3 762
3 998
6 639
(236)
38%
Machinery and Equipment
2 378
500
2 878
1 638
3 353
(475)
(1 715)
117%
Payment for financial assets 8
(8) 0%
Total -
(19 695)
51%
Compensation of Employees: Overspent due to salary increase.
Goods and Services: Overspent due to the transport costs for the state funerals, AU conference.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

33. Expenditure per Economic Classification: Programme 2
Original Budget
Virements and Additional funding
Adjusted budget
Cashflow projection 2nd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
39 780
2 700
42 480
19 893
21 443
21 037
(1 550)
50%
Goods and Services
40 591
4 366
44 957
20 444
13 196
31 761
7 248
29%
Transfers & Subsidies - 9
(9) 0%
Machinery and Equipment
212
434
646
120
557 89
(437)
86%
Payment for financial assets 23
(23)
Total
80 583
7 500
88 083
40 457
35 228
52 855
5 229
44%
Compensation of Employees: Overspent due to salary increase .
Goods and Services: Underspent due to the delay of invoices on the following projects: White paper on National Transport Policy, NATMAP, Transport Policy Framework, National Transport Planning Databank and Single Transport Economic Regulator.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending

34. Expenditure per Economic Classification: Programme 3
Original Budget
Virements and Additional funding
Adjusted budget
Cashflow projection 2nd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
20 187
500
20 687
10 094
9 981
10 706
113
48%
Goods and Services
15 751
(650)
15 101
7 921
2 727
12 374
5 194
18%
Transfers & Subsidies
150
(32)
60%
Machinery and Equipment -
149
(149) 0%
Payment for financial assets
Total
5 126
Goods and Services: Underspent due to the delayed invoices on the following projects: National Rail Policy Green Paper and the draft National Railway amendment bill.
Machinery and Equipment:Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

35. Expenditure per Economic Classification: Programme 4
Original Budget
Virements and Additional funding
Adjusted budget
Cashflow projection 2nd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
50 284 -
24 134
21 971
28 313
2 163
44%
Goods and Services
48 416
23 822
(95 172)
( )
297%
Transfers & Subsidies
(139)
52%
Machinery and Equipment
631
336
416
215
(80)
66%
Payment for financial assets 11
(11) 0%
Total
( )
53%
Compensation of Employees:Underspent as a result of vacancies.
Goods and Services: Overspent due to the cost of maintaining and operating eNatis as a result of a court order.
Transfers and Subsidies: Overspent due to leave gratuities
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

36. Expenditure per Economic Classification: Programme 5
Original Budget
Virements and Additional funding
Adjusted budget
Cashflow projection 2nd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
34 854 -
16 649
16 093
18 761
556
46%
Goods and Services
75 653
(140)
75 513
39 566
29 297
46 216
10 269
39%
Transfers & Subsidies
38 599
140
38 739
24 775
25 133
13 606
(358)
65%
Machinery and Equipment
420
210
382 38
(172)
91%
Total
81 200
70 905
78 621
10 295
47%
Compensation of Employees: Underspent as a result of vacancies.
Goods and Services: Underspent due to the delayed invoices: National Airport Development plan, Telkom watch keeping services.
Transfers and Subsidies: Overspent due to once off payments of foreign membership fees.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

37. Expenditure per Economic Classification: Programme 6
Original Budget
Virements and Additional funding
Adjusted budget
Cashflow projection 2nd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
21 728
10 865
9 232
12 496
1 633
42%
Goods and Services
69 709
34 934
27 266
42 443
7 668
39%
Transfers & Subsidies
19 317
10 000
29 317
9 236
9 171
20 146 65
31%
Machinery and Equipment
335
168
264 71
(96)
79%
Total
55 203
45 933
75 156
9 270
41%
Compensation of Employees: Underspent as a result of vacant posts.
Goods and Services: Underspent due to the delays in the appointment of the services providers on the following projects: The White Paper on the Maritime Transport Policy, Cabotage Strategy, Review of the Merchant Shipping African Maritime Charter and Feasibility study on the TUG boat services.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

38. Expenditure per Economic Classification: Programme 7
Original Budget
Virements and Additional funding
Adjusted budget
Cashflow projection 2nd quarter
Expenditure
Available
Under / (Over) spent
% Spent
R'000
Compensation of Employees
40 961
3 000
43 961
20 472
22 149
21 812
(1 677)
50%
Goods and Services
(3 500)
60 363
40 974
26%
Transfers & Subsidies
(17 500)
33%
Machinery and Equipment
157
500
657 50
248
409
(198)
38%
Payment for financial assets - 2
(2) 0%
Total
Compensation of Employees: Overspent due to salary increase.
Goods and Services: Underspent due to the following projects: Implementation of the IPTN in district municipalities and taxi review model.
Transfers and Subsidies: Underspent due to slow spending on the Taxi Recapitalisation programme.
Machinery and Equipment: Reclassification of operating leases due to modified cash, funds will be shifted from goods and services to cover the overspending.

39. Transfer Payments Transfer Payments (R'000) Adjusted budget
Expenditure
Available
% Spent
Conditional Grants:
Provincial Roads Maintenance
56%
Public Transport Operations
43%
Public Transport Network
25%
Rural Road Asset Management
96 842
100%
Public Corporations:
Passenger Rail Agency of South Africa (PRASA)
60%
Departmental Agencies & Accounts:
S.A. National Roads Agency
49%
Road Traffic Management Corporation
92 052
50%
Railway Safety Regulator
53 379
S.A. Civil Aviation Authority
20 124
10 062
Ports Regulator of South Africa
27 627
8 814
18 813
32%
Road Traffic Infringements Agency
11 497
5 749
5 748
Maritime Rescue Co-ordination Centre
7 205
3 603
3 602
Transport SETA
1036
1 036 0%
Total
51%

40. Transfer Payments Transfer Payments (R'000) Adjusted budget
Expenditure
Available
% Spent
Other:
Taxi scrapping
52 360
16%
Non Profit Institutions
2 415
2 335 80
97%
South African National Taxi Council
19 254
16 500
2 754
86%
Higher Education Institutions(Bursaries to non-employees)
9 433
3 910
5 523
41%
International Organisations
10 685
9 194
1 491
Leave pay and donations
168
529
(361)
315%
Sub-total
84 828
23%
Total
51%

41. Provincial Road Maintenance Grant
Original budget
Adjustments
Adjusted budget
Transfer
Spent by Province
Variance %
R'000 %
Eastern Cape
(41 104)
57%
Free State
52%
Gauteng
(10)
50%
KwaZulu-Natal
54%
Limpopo
58%
Mpumalanga
(1)
56%
North West
51%
Northern Cape
(2 105)
Western Cape
62%
Overall Total
(43 220)
55%
The spent by province covers the period until the month of August as they submit their expenditure on the 25th of every month.

42. PUBLIC TRANSPORT OPERATIONS GRANT PUBLIC TRANSPORT OPERATIONS GRANT
Original budget
Transfer
Spent by Province
Variance %
R'000 %
Eastern Cape
90 725
71 333
45%
Free State
93 520
70 624
42%
Gauteng
43%
KwaZulu-Natal
44%
Limpopo
95 394
41%
Mpumalanga
North West
92 313
18 550
27 561
20%
Northern Cape
44 907
39 248
16 702
87%
Western Cape
Total
The spent by province covers the period until the month of August as they submit their expenditure on the 25th of every month.

43. PUBLIC TRANSPORT NETWORK GRANT
Budget
Transfer
Spent by Municipality
Variance %
R'000 %
EC: Buffalo City
EC: Nelson Mandela Bay
93 064
921
25%
FS: Mangaung 0%
GT: City of Tshwane
232902
43380
GT: Ekurhuleni
6 333
29%
GT: City of Johannesburg
16 138
KZN: Msunduzi
30 000
605
14%
KZN: eThekwini
LP: Polokwane
46 047
MP: Mbombela
24 945
1 555
21%
NW: Rusternburg
80 150
27%
WC: George
53 000
5 358
46%
WC:City of Cape Town
76 941
Overall Total
The spent by province covers the period until the month of August as they submit their expenditure on the 25th of every month.

44. THANK YOU