1. Cross-Border Road Transport Agency1
Cross-Border Road Transport Agency
Budget presentation 16 March SINETHEMBA MNGQIBISA

2. Outline of presentation2
Outline of presentation
Mandate
Status quo report
Service delivery strategy
Financial sustainability
Budget 2006/07
Way Forward

3. 3
Mandate
* To improve the flow of road and freight and passenger transport in the region.
* To liberalise market access and to introduce regulated competition in respect of cross-border road transport industry.
* To reduce operational constraints for the cross-border road transport industry.
* To enforce the law in cross-border road transport industry in terms of safety, security, reliability and quality.
* Provision of training and development of SMME’s in the cross-border road transport industry.

4. 4
Status Quo
Strategic direction of the organisation not aligned to mandate
Provincial co-operation on issuing of permits
Interpretation of law of jurisdiction between provinces and CBRTA
Organisational structure not aligned to mandate
Human resource capacity limited
Board and CEO
Management
Revenue less than expenses
Manual Support Systems and processes
Lack of financial reporting to parliament
Annual report non-compliance

5. Service delivery strategy5
Service delivery strategy
Continuous improvement of our safety and economic regulatory environment in the region
Become a performance based service provider
Maintain long term financial sustainability
Improve internal controls
Improve facilitation and co-operation between provinces, region and other agencies
Anti-corruption strategy
Implement a Human resource strategy
(reduce percentage personnel/income ratio)

6. Financial sustainability Budget 2006/07 with Government Grant
Item
Budget
‘000
Forecast
06/07
07/08
08/09
Income
35,100
33,838
36,750
41,300
Permit fees
25,200
26,000
30,000
Penalty income
6,000
4,738
6,200
6,500
Other income
3,900
4,550
4,800
Expenditure
(34,972)
(35,772)
(36,731)
(38,341)
Revenue lost (fraud/Provinces issuing permits)
(20,000)
(14,000)
(7,000)
Operations
(10,919)
(10,776)
(11,355)
(11,696)
Salaries
(24,053)
(24,996)
(25,376)
(26,645)

9. Financial sustainability Budget 2006/07 without Government Grant
Item
Budget
Forecast
06/07
07/08
08/09
Income
31,600
30,338
32,750
36,800
Permit fees
25,200
26,000
30,000
Penalty income
6,000
4,738
6,200
6,500
Other income
400
550
300
Expenditure
(34,992)
(35,772)
(36,731)
(38,341)
Revenue lost (fraud/Provinces)
(20,000)
(14,000)
(7,000)
Operations
(10,919)
(10,776)
(11,355)
(11,696)
Salaries
(24,053)
(24,996)
(25,376)
(26,645)

10. Financial sustainability8
Financial sustainability
Statistics
Item
Budget
Forecast
06/07
Percentage
increase/decrease
Income
35,100
33,838 4%
Permit fees
25,200 0%
Penalty income
6,000
4,738
21%
Other income
3,900
Expenditure
(34,972)
(35,772) 2%
Revenue lost (fraud)
(20,000)
(14,000)
30%
Labour cost
(24,053)
(24,996)
Operational expenses
(10,919)
(10,776) 1%
Depreciation
(504)

11. Financial sustainability9
Financial sustainability
Cash Flow 06/07
Item
Budget
Forecast
06/07
07/08
08/09
Income
35,100
33,838
36,750
41,300
Permit fees
25,200
26,000
30,000
Penalty income
6,000
4,738
6,200
6,500
Other income
3,900
4,550
4,800
Expenditure
(34,972)
(35,772)
(36,731)
(38,341)
Labour cost
(24,053)
(24,996)
(25,376)
(26,645)
Operational expenses
(10,919)
(10,776)
(11,355)
(11,696)
Depreciation
(504)
(480)
(456)

12. Way Forward 10 Key strategic interventions Short term Long term
Financial stability
31 March 2009
Provincial
co-operation
31 March 2006
Electronic processes
31 March 2007
Human resource strategy
Fraud prevention strategy
30 May 2006
Internal controls

13. 11
Thank you
Questions !