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2014/15 Annual Performance Report

2014/15 Annual Performance Report. Presentation to the Portfolio Committee on Public Enterprises 14 October 2015. Contents. 1. Purpose of the presentation. 2. Assessment of performance against targets. 4. Human resource performance. 5. Audit performance. 3.

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2014/15 Annual Performance Report

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  1. 2014/15 Annual Performance Report Presentation to the Portfolio Committee on Public Enterprises 14 October 2015

  2. Contents 1 Purpose of the presentation 2 Assessment of performance against targets 4 Human resource performance 5 Audit performance 3 Annual Financial Statement analysis Conclusions 6

  3. Purpose of the presentation • Provide overview on the performance of the Department on predetermined objectives • Outline key challenges on operational performance and lessons learned • Assessment on the resource utilisation (Human and financial resources) • Briefing on the audit outcomes and corrective measures

  4. Contents 1 Purpose of the presentation 2 Assessment of performance against targets 3 Annual Financial Statement analysis Human resource performance 4 5 6 Audit performance Conclusions

  5. Strategic direction framework for the Department for the 2014/15 FY To drive investment, productivity and transformation in the Department’s portfolio of State Owned Companies (SOC), their customers and suppliers so as to unlock growth, drive industrialisation, create jobs and develop skills. Mission Vision Outcomes To provide decisive strategic direction to the SOC, so that their businesses are aligned with the national growth strategies arising out of the NGP • Unlock Economic Growth • Industrialisation • Transformation • Regional Development • Bold • Professional • Caring • Integrity • Fun • Passion • Programme 1: Administration • Programme 2: Legal & Governance • Programme 3: Portfolio Management & Strategic Partnerships Values Objectives Programmes • Review the shareholder oversight to ensure alignment of SOC to developmental outcomes • Promote good corporate governance • Build internal capacity to enhance Department’s ability to execute its strategic plan and fulfill its mandate • Stabilise our SOC looking at strengthening of balance sheets and funding options • Drive economic infrastructure investment to enhance the capacity of the economy with emphasis on the Strategic Integrated Projects • Leverage SOC procurement spend to support industrialisation and transformation

  6. Annual performance overview • In the 2014/15 FY, the performance of the Department was below the 80% target • The review of performance showed that the Department achieved most of the shareholder oversight related targets. • This performance reflects regression when compared to the 2013/14 FY

  7. Performance against the targets

  8. PROGRESS HIGHLIGHTS PER PROGRAMME

  9. Programme 1: Administration • Achievements • Attraction and Retention Policy approved • The 3 year Evaluation Plan was developed • and implementation of the framework is • underway • Independent assessment on the IT • infrastructure was completed • Annual Plan for public participation • programme was finalised • 4 provincial engagements took place • during the year under review • Non- achievements • The idenfication of organisationalcapabili- • ties to inform the development of the • DPE competency model was completed. • The raking of the capabilities not yet • finalised. • Standardisation of SOC performance review • will be finalised in the 2015/16 financial • year.

  10. Programme 2: Legal and Governance Performance overview for 2014/15 FY • Achievements • Deregistration of Aventura • Non-Achievements • Resolution of the 20% State Shareholding • in Namaqualand Mines. • Government Shareholder Management Bill • Risk Modelling Tool

  11. Programme 3: Energy Enterprises Performance overview for 2014/15 FY • Achievements • Implemented of the MYPD3 Response Strategy • which culminated into the Government • Support Package (R23 billion) • On 6 March 2015 the first power from Medupi • was successfully fed into the national power • grid • 100 MW of clean power generated from Sere • Wind Farm is being fed into the power grid. • Successfully supported the implementation • of the REIPPP. • Finalised Position paper on the ICT Broadband • Strategy and shared with the DTPS. • Infraco MTEF application submitted as • planned. • MOU with DPW signed for Infraco to access • properties. • Non-achievements • Delays in initiating the assessment of the • Eskom generation fleet. • Benchmarking of Eskom’s operational • efficiencies was not achieved.

  12. Programme 3: Manufacturing Enterprises Performance overview for 2014/15 FY

  13. Programme 3: Transport Enterprises Performance overview for 2014/15 FY • Achievements • Assessed Corporate Plans for Transnet, • SAA and SAX • Assessed Annual Reports for Transnet, SAA • and SAX • Minister’s addressed for Transnet, SAA and • SAX’s AGM were submitted • Transnet’s Shareholder Compact for • 2015/16 was approved • Transnet’s Strategic Intent Statement was • developed • Quarterly reports for Transnet, SAA and SAX • were assessed • All PFMA applications that were received • were assessed • The implementation of SAA’s LTTs 7 SAX’s • 20:20 was monitored • Funding requirments for SAA and SAX • was defined • Non-achievements • Strategic Intent Statements for SAA & SAX • were not signed off due to the fact that • guarantee applications to National Treasury • were still pending • SAX Shareholder Compact not finalised • Quarter 2 & 3 of SAX’s fleet renewal • programme were not assessed. • Whole of State Policy: The Department • could not formulate a way forward as they • are dependent on the Departments of • Transport and Home Affairs’ assessment of • the proposed policies. • Quarter 2 and 3 reports for SAA were not • assessed due to SAA’s transfer to National • Treasury

  14. Programme 3: EIPA Performance overview for 2014/15 FY • Achievements • Analysis of SOC quarterly WULs and EIAs • applications on Dashboard. • Draft Transformation measurement tool • developed. • SOC socio economic indicators and • Shareholder Compact and Corporate Plans • defined. • Reports on SOC Transformation contribution • Non-achievements • Filling critical positions remained a challenge • in the Unit • Approval of the process of the Strategic • Transformation Framework and guidelines • delayed

  15. Programme 3: Strategic Partnership Performance overview for 2014/15 FY • Achievements • Implementation of the Africa Strategy has • commenced • SOCs have continued to implement the • CSDP and localisation has gained traction • The Department has maintained its support • to the PICC projects • Non-achievements • Filling critical positions remained a challenge • in the Unit • The Unit has lost critical skills that have • been difficult to secure

  16. Contents 1 Purpose of the presentation 2 Assessment of performance against targets 3 4 5 6 Annual Financial Statement analysis Human resource performance Audit performance Conclusions

  17. Annual Financial Statements Analysis The following table provides a summary of actual expenditure incurred vs budget per programme for the 2013/14 and 2014/15 financial years

  18. Analysis of Expenditure Trends • The department had an allocation of R322.9 million and actual spending was R298.4 million with a variance of R24.5 million (7.6%) • The underspending is a combination of compensation of employees and goods and services • The underspending on compensation of R6.7 million (4%) is the result of delays in filling of vacant positions and inability for the department to attract the specialised skills required to fulfil the mandate of the Department. • The underspending in goods and services of R17.6 million (16.8%) is the result of delays in the commencement of projects such as: • The project to ensure collaboration between SAA and SAX could not be completed because of changes in Department’s mandate • Transfer of BBI also had an impact as projects could not be concluded • Risk modelling tool was delayed • Government shareholder Management Bill project was also delayed

  19. Contents 1 Purpose of the presentation 2 Assessment of performance against targets 6 Conclusions 5 Audit performance Annual Financial Statement analysis 3 Human resource performance 4

  20. Organisational Structure

  21. Human resource statistics– as at 30 September 2015

  22. Employment equity targets as at 31 March 2015 DPSA SMS Female and Male target = 50/50 DPE SMS Female and Male actual = 48%/ 52%

  23. Contents 1 Purpose of the presentation 2 Assessment of progress on the pre-determined objectives 3 4 5 6 Annual Financial Statement analysis Human resource performance Audit performance Conclusions

  24. Response to audited outcomes

  25. Response to audited outcomes

  26. Response to audited outcomes

  27. Contents 1 Purpose of the presentation 2 Assessment of performance against targets 3 4 5 6 Annual Financial Statement analysis Human resource performance Audit performance Conclusions

  28. Conclusion • The performance of the Department has regressed when compared to the 2013/14 FY • Actions have been taken to ensure that the challenges identified in the execution Department’s Plans • The first quarter performance of 2015/16 shows that the Department is largely on track

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