Department of Transport Annual Report Presentation

Department of Transport Annual Report Presentation
2016/17 1

Contents Background DoT Overall Performance Performance per Programme
Human Resource Management Human Resource Development DoT Equity Statistics Governance Areas for Improvement Identified Best Practices Financial Statements 2016/17

Key Focus Areas for the Report
Performance of the Department of Transport (DoT); Non-financial and financial results; DoT Organisational Health and Capability to deliver on policy objectives.

Background Report focuses on the progress made with the implementation of programmes & projects in 2016/17 Focus was on optimal performance of deliverables in terms of the MTSF & MTEF Targets were guided by the outcomes-based approach (Outcome 4, 6, 7 & 10)

Overview of the Transport Sector for the 2016/17 Financial Year
NDP emphasizes necessity of sound economic infrastructure as a pre-condition for economic growth; The APP 2016/17 highlights the DoT’s commitment to address major social and economic challenges facing the sector through interventions aimed at accelerating service delivery, increasing job opportunities, rural development and skills development; This report emphasizes the DoT’s continued restatement of the need for increased investments in public transport infrastructure, restructuring of current subsidies to promote integrated settlements and transport infrastructure projects to improve access to opportunities for the urban and rural poor.

DoT Overall Performance (2016/17)
Total Number of targets - 53 Targets Achieved - 50 targets Targets Not Achieved - 3 targets Overall % Achievement – 94.3%

DoT Comparative Analysis: Performance per Programme per Quarter (2016/17)
1. Administration 67% 80% 90% 2. Integrated Transport Planning 33% 57% 71% 83% 3. Rail Transport 60% 4. Road Transport 50% 78% 75% 5. Civil Aviation 87% 100% 6. Maritime Transport 0% 20% 7. Public Transport 85% 8. Dept. of Transport 64%

DoT Annual Performance (2016/17)
PROGRAMME Total Number of Targets Number of Targets Achieved Number of Targets Not Achieved Percentage Performance 1. Administration 10 100% 2. Integrated Transport Planning 7 3. Rail Transport 6 4 2 66.7% 4. Road Transport 9 1 90% 5. Civil Aviation 8 6. Maritime Transport 5 7. Public Transport 8. Dept. of Transport 53 50 3 94.3%

DoT Year-to-year Performance Comparison
PROGRAMME % Achieved 2013/14 % Achieved 2014/15 % Achieved 2015/16 % Achieved 2016/17 (Year under review) ADMINISTRATION (ODG, CFO, COO, TIS) - 72% 88% 100% ITP 44% 67% 78% RAIL 60% 66.7% ROAD 61% 90% CIVIL AVIATION 53% 75% MARITIME 52% 22% PUBLIC TRANSPORT 63% DOT (OVERALL) 66% 73% 94.3%

Key Achievements Programme 1: Administration
Transport Sector Gender Empowerment Policy was approved for implementation in March 2017 Total of seven (7) community outreach campaigns were conducted on Gender, Disability, Youth and Children. The Department exceeded the DPSA target of 5% of staff establishment by appointing 56 interns, which translates into 8.1% during 2016/17. 411 (61%) staff members were trained against the set target of 60%. 46 new bursaries were awarded to the serving employees. Total number of employees on bursaries amount to 146 for the reporting period.

Key Achievements Programme 2: Integrated Transport Planning
Implementation of the NATMAP 2050 commenced with the successful identification and profiling of priority pilot projects. A draft implementation plan was also developed for identified priority projects. Review of the White Paper on the National Transport Policy was finalised and the Policy was submitted to Cabinet Draft Road Freight Strategy was reviewed and submitted to Cabinet Draft Road Tariff Determination Framework was developed as targeted during the period under review Green Transport Strategy was finalised and submitted to Cabinet

Key Achievements Programme 3: Rail Transport
Legislative review and analysis were conducted and the draft National Rail Bill developed Rail sector priority areas needing economic regulations were analysed; and a regulatory review and analysis was conducted. Draft economic regulations were subsequently developed for the rail sector Draft branchline model for Private Sector Participation (PSP) was developed Stakeholder consultations were conducted on the draft National Railway Safety Regulator Amendment Bill and the Bill was submitted to Cabinet during the period under review.

Key Achievements Programme 4: Road Transport
Oversight and monitoring of approved Provincial Road Maintenance Grant (PRMG) projects were conducted through site visits and quarterly bilateral consultations in line with DoRA requirements. Draft Access Road Development Plan (ARDP) was developed and consultations on the draft ARDP were conducted in all provinces The Administrative Adjudication of Road Traffic Offences (AARTO) Amendment Bill was submitted to Parliament The Road Accident Benefit Scheme (RABS) Bill was submitted to Cabinet The Road Safety Strategy submitted to and approved by Cabinet Inspections of all active VTCs, DLTCs and DGOs were successfully conducted over the four quarters.

Key Achievements Programme 5: Civil Aviation
Airports Company and ATNS Amendment Bills were submitted to Cabinet National Civil Aviation Policy (NCAP) and National Airports Development Plan (NADP) were submitted to Cabinet Air service arrangements were reviewed with nine (9) States during the period under review. Civil Aviation Amendment Bill was submitted to Cabinet Amendment Bill for the rationalisation of the Air Services Licencing Act and the International Air Services Act was developed and consultations were conducted with the State Attorney during the period under review.

Key Achievements Programme 6: Maritime Transport
Draft Maritime Transport Policy was submitted to Cabinet during the period under review Draft Merchant Shipping Bill (2016) was developed Inland Waterway Strategy was submitted to Cabinet Project Plan for the 2020 IMO World Maritime Day parallel event was developed

Key Achievements Programme 7: Public Transport
Rural Transport Strategy was submitted to Cabinet Draft Integrated Public Transport Network (IPTN) plan was developed in one (1) district municipality Stakeholder consultations were conducted on the draft Taxi Recapitalisation Review Report and the Report was subsequently submitted to Cabinet Stakeholder consultations were conducted on the draft Integrated Public Transport Turnaround Plan and the Plan was submitted to Cabinet Draft Public Transport Safety Improvement Plan was developed National Land Transport Amendment Bill was submitted to Parliament

Notable Challenges to be Prioritised for Remedial Action
Programme 2: Integrated Transport Planning Though the Harrismith Hub Framework Implementation Plan was developed and submitted to Cabinet as targeted, there were pertinent issues that were identified that threatens to delay approval and subsequent implementation of the Framework. Corrective measures: A political resolution will be sought between the DoT and the Free State Province to ensure that the issues are addressed.

Notable Challenges to be Prioritised for Remedial Action
Programme 3: Rail Transport Though consultations were conducted with SANRAL, Transnet and Provinces on the White Paper on the National Rail Policy and the National Railway Safety Strategy, both the White Paper and the Strategy could not be submitted to Cabinet as targeted. During the consultation process, several issues needing further investigations were identified. Corrective Measure: Research is currently being conducted on the identified issues and pending the outcome, the White Paper will be submitted to Cabinet in the 2018/19 Financial Year Finalisation of the National Railway Safety Strategy is also dependent on the finalisation of the White Paper on the national Rail Policy.

Human Resource Management
Vacancy Rate DoT staff establishment increased from 872 to 889 during period under review due to creation of 17 additional posts for the National Public Transport Regulator as at 01 December 2016. Number of filled posts equals 672, thus translating into 217 vacancies (24% vacancy rate). This vacancy rate is not a true reflection as most of the positions are not funded due to cost containment measures

Human Resource Development Initiatives
56 interns were appointed, translating into 8.1% of staff establishment, thus exceeding DPSA target of 5%. 411 staff members trained and 46 new bursaries awarded during the period under review. Total number of employees on bursaries stands at 146. 5 employees attended donor funded international programmes and 4 female SMS members were accepted for TETA Leadership Development Programme for Women Comprehensive skills audit exercise completed within 12 months with 95% response rate MoUs signed with 11 institutions of Higher Learning where 803 learners were enrolled.

Employment Equity Statistics
Race African – 91.7% (target – 79.5%) Coloured – 1.36% (target – 9%) Indian – 1.96% (target – 2.5%) White – 4.98% (target – 9%) Gender Male – 285 (43%) target = 54.20% Female – 377 (57%) target = 45.80%

Employment Equity Statistics
SMS Male – 62 (62%) Female – 38 (38%) (Target = 50% female representation in SMS) Disability Male – 3 Female – 10 DoT Disability Status – 1.96% (Target = 2%)

GOVERNANCE

Risk Management DoT Strategic and Operational Risk Registers compiled and monitored for the 2016/17 financial year. Risk Champion Forum and Risk Management Committee meetings held on a quarterly basis to ensure that key risk controls are in place and track implementation of risk mitigation strategies Risk Management is a standing item in Executive Committee meetings, Audit Committee Meetings as well as Strategic Management Committee of the DoT.

Minimising Conflict of Interest
Financial Disclosure Framework – All SMS members sensitized to disclose financial interest so as to identify conflict of interest 100% compliance with SMS Disclosure Framework Declaration of interest for all procurement as a measure to minimise conflict of interest in SCM (SBD 4 Form and SBD 9 Form)

Code of Conduct 100% of new appointees were inducted on the Code of Conduct SMS training on disciplinary matters related to violation of Code of Conduct

Internal Control Action plans to address audit findings for 2015/16 financial year were developed and monitored on a quarterly basis; Progress reports on the implementation of action plans were monitored on a quarterly basis and presented to Audit Committee meetings; Compliance reviews were conducted on PFMA, Treasury Regulations, DoRA, Financial Policies and SCM Prescripts. Loss Control Committee meetings were facilitated to ensure optimal safekeeping of departmental assets by Branches.

Internal Audit and Audit Committees
Audit Committee complied with its responsibilities - Section 38 (1) (a) (ii) of the PFMA and Treasury Regulation Audit Committee has adopted appropriate formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with the Charter and has discharged all its responsibilities as contained therein. Among the responsibilities of the AC, the following were done during the period under review: Review of the effectiveness of Internal Control systems Review of effectiveness of internal audit function Review of risk areas of the Department In-year management of quarterly reporting Evaluation of Annual Financial Statements and reporting on predetermined objectives Compliance with laws and regulations

Areas of Improvement Identified
Oversight of sector state-owned entities and the management of transversal functions with Provincial Departments remain critical areas where the DoT will focus in the short to medium term. Internal and external engagements will be conducted to ensure that the Department improves its performance in optimally delivering on these important tasks. The Department has commenced its development of a 3-year Evaluations Plan in the quest to strengthen performance evaluation in line the DPME National Evaluation Framework. During the 2016/17 financial year, the evaluation of the Learner/Scholar Transport Policy commenced as the initial step to improve evaluation of DoT and sector programmes and projects.

Best Practices Regular and vigorous EXCO deliberations on performance information DoT Internal Planning, Monitoring and Reporting Guidelines were amended to incorporate standard operation procedures for managing red flags identified during quarterly reporting phases. The exercises of predetermining quarterly and annual evidence and the management of Technical Indicator Descriptions by EXCO has resulted in improved completeness, accuracy and integrity of the DoT performance information.

Department of Transport Annual Financial Statements 2015/16

Contents Report of the Auditor-General
Report of the Accounting Officer Overview of financial results Unauthorised, Fruitless and Wasteful and Irregular Expenditure Sponsorships / Gifts and Donations received Events after the reporting date Other Statement of Financial Performance Expenditure breakdown for 2015/16 Expenditure on major projects Statement of Financial Position Notes to the Annual Financial Statements

Report of the Auditor-General
Audit Report Actions taken Actions to be taken Audit Opinion: Unqualified N/a Restatement of corresponding figures: Corresponding figures for 31 March 2016 were restated as a result of an error in the financial statements of the Department, and for the year ended, 31 March 2017. Misstatements relating to the disclosure of Electronic National Traffic Information System (eNaTIS) assets were corrected. The eNaTIS assets and liabilities will be transferred to the Road Traffic Management Corporation (RTMC). Predetermined objectives: No material findings were identified on the usefulness and reliability of performance information for four selected Programmes.

Report of the Auditor-General (continued)
Audit Report Actions taken Actions to be taken Annual Financial Statements: Material amendments relating to intangible and tangible capital assets were made to the financial statements submitted for audit as reliable information only became available after submission date. Misstatements relating to the disclosure of eNaTIS assets were corrected. The eNaTIS assets and liabilities will be transferred to the RTMC. Expenditure management: Effective steps were not taken to prevent unauthorised, irregular and fruitless and wasteful expenditure. The RTMC took over the eNaTIS on 5 April 2017. Cases are investigated where applicable. Disciplinary steps were taken and are underway. Finalise disciplinary steps. Recover / condone or write off. Some investigations are still in progress.

Report of the Accounting Officer
Overview of financial results – Departmental revenue: Departmental receipts 2016/2017 2015/2016 Estimate Actual Over/ (Under) Amount Collection Collected R’000 Sale of goods and services other than capital assets 651 1,139 488 619 556 (63) Fines, penalties and forfeits 70 - (70) Interest, dividends and rent on land 150 256,745 256,595 205,644 205,494 Financial transactions in assets and liabilities 80,010 32,376 (47,634) 80,000 3,735 (76,265) Total 80,881 290,260 209,379 80,839 209,935 129,096 The Department did not expect to receive dividends of R255.6 million, and expected revenue from unspent conditional grants of R80 million for the year.

(Over) / Under expenditure
Report of the Accounting Officer (continued) Overview of financial results – Programme expenditure: Programme 2016/17 2015/16 Final Appropria-tion Actual expendi-ture (Over) / Under expenditure R'000 Administration 365,182 365,136 46 422,169 420,824 1,345 Integrated Transport Planning 77,054 - 88,764 88,762 2 Rail Transport 18,993,457 18,992,005 1,452 18,310,610 18,305,274 5,336 Road Transport 24,878,466 25,055,434 (176,968) 23,164,889 22,889,198 275,691 Civil Aviation 258,267 210,427 47,840 150,383 145,284 5,099 Maritime Transport 156,386 153,561 2,825 143,674 142,874 800 Public Transport 11,557,042 11,550,042 7,000 11,334,588 11,328,571 6,017 Direct charge 3,821 Total 56,289,675 56,407,480 (117,805) 53,615,077 53,320,787 294,290

Report of the Accounting Officer (continued)
Overview of financial results – Programme expenditure (cont.): Administration underspent R21.7 million on Compensation of Employees and R7.5 million on Goods and Services, mainly due to under expenditure in projects of Management and Communications. The under expenditure was shifted across Programmes, mainly to reduce the over expenditure in Road Transport. The final savings of R46,000 in Transfer Payments and Machinery & Equipment could not be shifted across Programmes. Integrated Transport Planning underspent by R1,9 million due to savings on the Harrismith Hub project, which was taken over by the province. The savings were shifted across Programmes to reduce the over expenditure in Road Transport.

Overview of financial results – Programme expenditure (cont.): Rail Transport underspent by R1.7 million on Compensation of Employees and by R1.9 million in Goods and Services. Under expenditure and savings were shifted to cover over expenditure in other Programmes. A rollover of R1.452 million was requested for the Interim Rail Economic Regulator project, which represents the final under expenditure. Road Transport overspent on Goods and Services by R260.3 million due to expenditure of R269.1 million on the eNaTIS. Funds were shifted across Programmes to reduce the over expenditure in Road Transport. Civil Aviation underspent by R43.5 million on Goods and Services, mainly due to funds of R47.84 million that were earmarked for the upgrade of a satellite tracking system that was not spent. The Programme also underspent by R2.3 million on Compensation of Employees. Funds were shifted from other Programmes to cover over expenditure on projects, mainly Watchkeeping Services, to remain with the unspent earmarked funds.

Overview of financial results – Programme expenditure (cont.): Maritime Transport overspent on its Goods and Services by R15.6 million, mainly due to additional expenditure on the Oil Pollution project, and incurred a loss of R22.1 million due to the write off of a debt of the South African Maritime Safety Authority. The shortfalls were covered by shifting funds from other Programmes. The remaining under expenditure of the Programme reflects the balance of unspent earmarked funds. Public Transport underspent on a number of projects, mainly, the Review of the Taxi Recapitalisation Model (R51.4 million), the Implementation of Integrated Public Transport Network Plans in District Municipalities (R27 million), Technical Oversight and Support (R9.1 million) and the Shova Kalula bicycle project (R6.4 million). A total of R98.3 million was shifted to other Programmes to cover over expenditure, mainly in Road Transport and Maritime Transport. The remaining under expenditure of the Programme reflects the balance of unspent earmarked funds.

Com-pensation of em-ployees Machinery & Equip-ment
Report of the Accounting Officer (continued) Overview of financial results – Virements: Programme Com-pensation of em-ployees Goods and services Machinery & Equip-ment Foreign Govern-ments House-holds Total Administration (21,676) (7,428) 1,493 Integrated Transport Planning 431 (3,194) 689 174 Rail Transport (1,686) (492) 10,000 102 Road Transport 35,221 43,995 124 Civil Aviation (2,219) 5,140 225 838 1,060 Maritime Transport (3,878) 40,724 (457) (838) Public Transport (6,193) (92,236) 81 - (13,491) 2,133 1,358

Overview of financial results – Virements (continued): Compensation of employees: Most Programmes experienced under expenditure on Compensation of Employees, which was shifted across Programmes to reduce the over expenditure in Road Transport and to compensate for shortfalls. Goods and services was underspent mainly in Public Transport and Administration. Funds were shifted to Road Transport to reduce the over expenditure due to eNaTIS that was not budgeted for, to Maritime Transport to cover the additional cost on Oil Pollution and the write off of a debt of the South African Maritime Safety Authority, to Rail Transport to increase the transfer to the Railway Safety Regulator and to Civil Aviation to cover the over expenditure on a number of projects.

Overview of financial results – Virements (continued): Machinery and equipment was over and underspent between Programmes and over expenditure was covered by shifting funds across Programmes. Foreign governments was overspent mainly for the African Civil Aviation Commission (AFCAC) and the International Civil Aviation Organisation (ICAO). Savings in membership fees for the International Maritime Organisation was shifted to cover the over expenditure on ICAO and to partially cover the over expenditure on AFCAC. Households was overspent because more taxis were scrapped than budgeted for and leave pay was under budgeted for. Funds were shifted within and across Programmes to cover the over expenditure.

Overview of financial results – Rollovers requested: Programme R'000 Programme 3: Rail Transport: Interim Rail Economic Regulator 1,452 Total National Treasury did not approver the rollover.

Unauthorised, Fruitless and Wasteful and Irregular Expenditure: Unauthorised expenditure: Unauthorised expenditure amounted to R1,338,165,000 at 31 March 2017: An amount of R R1,207,374,000 was allocated to the Department in 2016/17 as a direct charge against the National Revenue Fund to offset unauthorised expenditure that was incurred during 2008/09 and 2009/10 as a result of over expenditure on bus subsidies. Over spending of Road Transport in 2013/14, 2014/15 and 2016/17 because eNaTIS is unfunded represents the balance of unauthorised expenditure of R1,338,165,000.

Unauthorised, Fruitless and Wasteful and Irregular Expenditure (continued): Fruitless and wasteful expenditure: Fruitless and wasteful expenditure that was declared and not yet transferred to receivables, amounting to a total of R1,603,946 is made up as follows: Intangible assets procured in prior years that are not used R845,196. Services paid for but not delivered for which litigation was finalised R447,500. An overseas trip that was undertaken that exceeded the authorization by R147,523, which is under investigation. Other fruitless and wasteful expenditure under investigation R52,181. To be written off R78,334. To be recovered R33,212.

Unauthorised, Fruitless and Wasteful and Irregular Expenditure (continued): Irregular expenditure: A total of R93,843,538 was declared as irregular expenditure in 2016/17: Relating to prior years: Contract extended for a period of five years without following procurement procedures R92,139,498. The case was investigated and is still under investigation by the Special Investigating Unit and the Hawks. Relating to the current year: Six cases were declared as irregular totalling R1,704,040 because work was done after expiry of a contract, approval was not obtained to appoint a sole provider in two cases, no process was followed for an event, vehicles were rented without approval to deviate from the prescribed vehicle group and no approval was obtained to reject a bid.

Unauthorised, Fruitless and Wasteful and Irregular Expenditure (continued): Irregular expenditure (continued): Ten cases of irregular expenditure incurred in prior years and in the current year amounting to R10,433, were condoned. Of the remaining 11 cases, disciplinary proceedings were initiated in 7 cases. Disciplinary steps could not be initiated in 2 cases because the irregular expenditure was identified after the responsible employees left the employ of the Department. In one case the responsible employees must still be identified and in the other, disciplinary steps have not yet started.

Sponsorships / Gifts and Donations received – Financial Statements Note 28 and Annexure 1G: In kind goods and services provided/ received from related parties - Note 28 to the financial statements R’000 The South African Civil Aviation Authority provided accommodation for 80 nominees for the Annual Transport Awards 112 The South African National Roads Agency Limited sponsored an artist for the Annual Transport Awards 198 The Road Traffic Infringement Agency sponsored gifts for the Annual Transport Awards 20 The Cross Border Road Transport Agency sponsored promotional gifts for the Annual Transport Awards Isuzu Trucks sponsored promotional gifts for the Annual Transport Awards 12 The Passenger Rail Agency of South Africa provided transport for the Annual Transport Awards 50 Total received from related parties 412 In kind sponsorships received from non-related parties 1,385 Total of gifts. donations and sponsorships received in kind 1,797

Events after the reporting date: A number of eNaTIS assets were stolen from service centres in Tshwane. The RTMC indicated that it requested the city of Tshwane to provide them with a security improvement plan before the assets would be replaced. Other: The RTMC has taken over the eNaTIS and related services on 5 April 2017 following a Constitutional Court judgment on 9 November 2016. The RTMC appointed a service provider to verify and value all of the eNaTIS assets, to compile a complete, accurate and compliant asset register and to facilitate the transfer of the assets from the Department to the RTMC. The eNaTIS assets were taken up at cost or fair value of the assets as at the date of acquisition and appropriate prior year adjustments were made to the financial statements.

Statement of Financial Performance
2016/17 2015/16 Note R'000 REVENUE Annual appropriation 1 56,289,675 53,615,077 Departmental revenue 2 290,260 209,935 TOTAL REVENUE 56,579,935 53,825,012 EXPENDITURE Current expenditure Compensation of employees 3 392,791 382,866 Goods and services 4 814,153 701,267 Total current expenditure 1,206,944 1,084,133 Transfers and subsidies 6 55,168,748 52,219,379 Expenditure for capital assets Tangible assets 7 9,548 10,596 Intangible assets - 3,354 Total expenditure for capital assets 13,950 Payments for financial assets 5 22,240 3,325 TOTAL EXPENDITURE 56,407,480 53,320,787 SURPLUS/(DEFICIT) FOR THE YEAR 172,455 504,225 Reconciliation of Net Surplus/(Deficit) for the year Voted Funds - Annual appropriation (117,805) 294,290 Departmental revenue and NRF Receipts 14

Expenditure Breakdown for 2016/17
Transfer Payments 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 18,000,000 20,000,000 Passenger Rail Agency of South Africa Ltd. (PRASA) 18,890,267 S.A. National Roads Agency SOC Ltd. (SANRAL) 13,915,586 Provincial Roads Maintenance Grant 10,478,194 Public Transport Network Grant 5,592,691 Public Transport Operations Grant 5,400,292 All other transfers (next slide) 891,718

Expenditure Breakdown for 2016/17 (continued)
Transfer Payments (continued) 50,000 100,000 150,000 250,000 300,000 Other Transfers 200,000 350,000 400,000 Taxi recapitalisation 359,352 Rural Road Asset Management Systems Grant 101,514 Railway Safety Regulator 65,987 Air Traffic and Navigation Services Company Ltd. 52,160 Ports Regulator 28,561 Road Traffic Management Corporation 193,862 Other transfers (next slide) 90,282

Transfer Payments (continued) Transport Education and Training Non-profit Institutions 22,816 S.A. Civil Aviation Authority 21,191 Foreign organisations 15,845 Bursaries, Leave Pay and Gifts 11,698 Road Traffic Infringements Agency 10,092 S.A. Maritime Safety Authority 7,586 Authority 1,054 5,000 10,000 15,000 20,000 25,000 Other Transfers (continued) Total of Transfer Payments (97.8% of expenditure) ,168,748

Other expenditure 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000 Goods and Services 814,153 Compensation of Employees 392,791 Payments for Financial Assets 22,240 Expenditure for Capital Assets 9,548

Expenditure on major projects for 2016/17
ENATIS 269,107 Taxi Scrapping Administrator 113,498 Oil Pollution Prevention 64,018 Watchkeeping Services 60,063 Programme Development For S'Hamba Sonke 10,357 Bee Charter Council 6,004 October Transport Month 5,480 Impleme Shova Kalula Bicycle Programme 4,678 Feasibility Study On Tug Boat Services 4,383 Cleaning Services 3,768 Branchline Strategy Review 3,754 Draft White Paper On Rail Transport 3,447 Standardisation Of Road Asset Management 2,682 Employee Health And Wellness 2,602 Public Transport Grant 2,187

Statement of Financial Position
2016/17 2015/16 Note R'000 ASSETS Current Assets 1,381,006 2,446,028 Unauthorised expenditure 8 1,338,165 2,368,571 Cash and cash equivalents 9 400 31 Prepayments and advances 10 32,884 46,286 Receivables 11 9,557 31,140 Non-Current Assets 6,089,441 Investments 12 TOTAL ASSETS 7,470,447 8,535,469 LIABILITIES Current Liabilities 1,380,392 2,445,488 Voted funds to be surrendered to the Revenue Fund 13 59,163 294,290 Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 14 134 136 Bank overdraft 15 1,320,821 2,148,564 Payables 16 274 2,498 Non-Current Liabilities 17 184 49 TOTAL LIABILITIES 1,380,576 2,445,537 NET ASSETS 6,089,871 6,089,932 Represented by: Capitalisation reserve Recoverable revenue 430 491 TOTAL

Statement of Financial Position (continued)
Unauthorised expenditure decreased by R1,207,374,000 that was approved with funding and increased by R176,968,000 as a result of Road Transport over spending its budget because of court judgments against the Department to pay the cost of eNaTIS. Prepayments and advances of R32.9 million include R28.9 million paid in advance for the scrapping of taxis. Receivables of R9.5 million include R4.0 million owing by the Road Traffic Management Corporation and R2.7 million owing by the Passenger Rail Agency of South Africa Ltd. The bank overdraft decreased by R827.7 million, mainly due to the unauthorised expenditure that was approved with funding.

Notes to the Annual Financial Statements
Major deviations in expenditure on goods and services compared to 2015/16 (R’000): 2016/17 2015/16 Advertising 17,621 23,871 Less expenditure on recruitment advertising due to budget cuts. Communication 69,297 54,439 Cost of Watchkeeping Services increased by R15 million. Consultants, business and advisory services 443,607 308,394 Expenditure on eNaTIS increased by R148 million. Infrastructure and planning services+ 64,201 44,921 Expenditure on oil pollution prevention increased by R19 million.

Notes to the Annual Financial Statements (continued)
Major deviations in expenditure on goods and services compared to 2014/15 (R’000): 2015/16 2014/15 Legal services 19,911 9,950 Increased cost due to litigation regarding eNaTIS. Inventory 4,679 766 Expenses on the Shova Kalula project increased by R3.9 million. Operating leases 53,728 67,045 Property payments decreased by R14 million. Transport provided 126 39,127 No expenditure on State funerals in 2016/2017 Travel and subsistence 68,187 82,251 Expenditure decreased in six Programmes due to cost containment measures.

Notes to the Annual Financial Statements (continued)
Other notes: Note 5.2 Debts written off include R22,2 million for the South African Maritime Safety Authority. Note 12.1 Impairment of investments amount to R4 billion because the net asset value of the Passenger Rail Agency of South Africa (PRASA) is less than the cost of the investment. Note 20.1 / Annexure 3B Contingent liabilities include a claim for extra works on Mthatha airport (R46.7 million). Note 22.1 Accruals include a claim by the Road Traffic Management Corporation for the payment of expenditure on eNaTIS of R176.7 million.

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Department of Transport Annual Report Presentation

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