PowerPoint Presentationpmg-assets.s3-website-eu-west-1.amazonaws.com/170502APP-trans… · •Assessed the measurability and relevance of the final draft indicators and targets planned

Briefing to the Transport Portfolio Committee

PFMA

2017/18

2

AGSA reputation promise

The Auditor-General of South Africa (AGSA) has a

constitutional mandate and, as the Supreme Audit Institution

(SAI) of South Africa, it exists to strengthen our country’s

democracy by enabling oversight, accountability and

governance in the public sector through auditing, thereby

building public confidence.

3

Audit outcomes for

the last three years

Transport Portfolio

• South African National Road Agency (SANRAL)

• Road Accident Fund (RAF)

• Cross Border Road Transport

Agency (CBRTA)

• Road Traffic Management

Corporation (RTMC)

• Road Traffic Infringement

Agency (RTIA)

• Driving License Card Account (DLCA)

• Passenger Rail Agency of South Africa (PRASA)

• Railway Safety Regulator (RSR)

• Autopax (Pty) Ltd (Autopax)

• Intersite Property Management Services (Pty) Ltd (Intersite)

* Section 4(3) entities (ACSA will be audited by the AGSA directly)from 14/15)

Department of Transport

Road

Rail Maritime

Air

• Air Traffic and Navigation Services (ATNS) * • Airports Company of South Africa (ACSA) • South African Civil Aviation Authority (SACAA)

• South African Maritime Safety Authority (SAMSA) • Independent Ports Regulator (PR)

4

To improve/maintain the overall audit outcomes, financial statements processes,

1 3 …. compliance with key legislation and….

2

Three year trend – Overall improvement in audit outcomes

…. performance planning and reporting must be improved by….

8% 8%

61% 77% 54%

31%

23%

38%

2015-16 2014-15 2013-14

5

Movement in audit outcomes over 3 years

2015-16 PFMA

The portfolio’s overall outcomes have improved due to a

CBRTA and RTMC improving their audit outcomes from

unqualified audit opinion with findings to unqualified audit

opinion with no findings. There was a regression in the

audit outcome of the RAF from unqualified audit opinion

with no findings to unqualified audit opinion with finding on

compliance with laws and regulations. DoT regressed from

unqualified audit opinion to a qualified opinion. The rest of

the portfolio maintained their audit outcomes of the

previous year.

There has been a slight improvement in the area of

compliance with laws and regulations. The key areas

of non compliance remain supply chain management

resulting in repeated incurrence of irregular

expenditure and material misstatements in the

financial statements submitted for audit which are

identified in the audit process and corrected by

management which lead to the portfolio, with the

exception of the department, achieving financially

unqualified audit opinions.

There has been a regression in the area of reliable performance

reporting.

Annual performance plans of PRASA, RSR, SAMSA and SANRAL

also contained targets that were not specific, time bound and

verifiable.

Achievements reported by PRASA, RSR, RTIA and SAMSA were

either incorrect or not supported by appropriate sufficient evidence

to confirm the accuracy and reliability thereof.

Three year trend –

Compliance with key legislation

77% 77% 69%

23% 23% 31%

2015-16 2014-15 2013-14

Three-year trend –

Quality of annual

performance plans

Three year trend –

Quality of submitted

annual performance reports

31%

8%

31%

69%

92%

69%

2015-16 2014-15 2013-14

31% 23%

31%

69% 77%

69%

2015-16 2014-15 2013-14

With no material findings

With material findings

Outstanding audits

No APR/ late submitted

Unqualified

with

no findings

Unqualified

with findings

Qualified

with findings

Adverse

with findings

Disclaimed

with finding

Audits

outstanding

----------------------------------------------------

5

6

Scope, process and

key considerations

in the review of the

17/18 Draft APP

•The interim review provides an early warning where concerns with

regards to the measurability and relevance of the indicators and

targets have been identified

•The interim review does not entail the performance of detail

procedures where underlying systems and supporting

documentation is inspected to give assurance on the verifiability of

indicators and targets

•The interim review is only performed on a selection of significant

programmes

7

Scope of the 2017/18 APP review

Draft APP review 2017/18 of the Department of Transport

Review process

• Assessed the process followed by departments to prepare and submit strategic plans and APPs.

• Assessed the measurability and relevance of the final draft indicators and targets planned for selected programmes

Reporting

• Findings from the review are communicated in the 2016-17 interim management report to enable changes to be made.

• Findings relevant to the interim review do not have an impact on the audit conclusion on usefulness or reliability of the selected programmes for the PFMA 2016-17 year end audit.

8

Scope of the 2017/18 APP review


Does the APP align with MTSF?

Are indicators relevant and complete?

Is there a logical link between

objectives, indicators and

targets?

Are the targets realistic i.e.

SMART?

Are adequate resources (human

and financial) available to achieve

APPs?

How can the APP be achieved e.g.

Performance contracts/ monitoring

Review quarterly progress against

APP targets

Review annual achievement against

APP targets

Review and track changes to strategic

plans and annual performance reports.

9

Key considerations when reviewing the APP


Measurability of indicators and targets

Indicators are well-defined

Indicators are verifiable

Targets are specific, measurable and time-

bound.

Relevance of indicators and targets

Indicators and targets are relevant to the

mandate and realisation of strategic goals and objectives

Well-defined =

clear,

unambiguous

definition so that

data will be

collected

consistently and

will be easy to

understand and

use.

Verifiable = it

must be possible

to validate the

processes and

systems.

Specific = the nature

and the required level

of performance can be

clearly identified

Measurable = the

required performance

can be measured

Time bound = the

time period or deadline

for delivery is specified

The performance measure/

indicator and target relates

logically and directly to an

aspect of the entity’s

mandate and the

realisation of its strategic

goals and objectives.

10

Criteria used to assess the draft APP


11

Strategic Alignment

of Portfolio

Strategic alignment of portfolio ENTITY NDP MTSF Included in strategic plan

DoT Outcome 4:

Sub-outcome 1: Productive

investment is effectively crowded in

through the infrastructure build

programme

Outcome 6 Sub-Outcome 1: Regulation,

funding and investment improved

Develop a Private Sector

Participation (PSP) Framework for

ports and freight rail, removing

barriers to entry for private

investment

Sub-Outcome 3: Ensure

development and approval of the

Integrated Transport Plan

Improve public transport

Strengthen institutional

arrangements for public transport

Integrated National Transport Plan

developed and approved

Establish a Single Transport

Economic Regulator (STER) -

Cabinet and Parliamentary approval;

establishment and appointments

PSP Framework;

Rands private investment and market

share of private ownership of ports

and rail over MTSF

Integrated National Transport Plan

developed and approved

Improved public transport:

Implementation of approved plans

and initiatives; % increase in the use

of public transport

Yes

12

Strategic alignment of portfolio

(cont) ENTITY NDP MTSF Included in strategic plan

SANRAL Sub-Outcome 3

• Improve and preserve national,

provincial and local road

infrastructure

Sub-Outcome 6

• SIP 2: Durban- Free State–

Gauteng Logistics and Industrial

Corridor • SIP 3: South Eastern Node and

Corridor Development

Sub-Outcome 5

• Access Road Development Plan

for improving rural road

infrastructure implemented

• Development and

implementation of approved

plan including maintenance;

kms new, upgraded or

rehabilitated

• N2 De Beers Pass (Harrismith

Hub)

• New Project: N2 Wild Coast

Highway (subject to funding

secured), starting with bridge

structures

Yes

RTMC Sub-Outcome 3

• Strengthen road traffic

management

• Development and

implementation of approved

plan;

% reduction in accidents and

fatalities

Yes

13

Strategic alignment of portfolio

(cont) ENTITY NDP MTSF Included in strategic

plan

PRASA Sub-Outcome 6

• SIP 1: Unlocking the

Northern Mineral Belt

• SIP 2: Durban- Free State–

Gauteng Logistics and

Industrial Corridor

• SIP 3: South Eastern Node

and Corridor Development

Sub-Outcome 5

• Access Road Development

Plan for improving rural

road infrastructure

implemented

• Develop heavy haul rail

corridor to Waterberg

coalfield

• Number of mtpa expansion

of the rail network capacity

beyond

Yes

14

15

Outcome of review

of 17/18 draft APP

Programme

Total no. of

indicators

included in

the APP

Targets not specific

and measurable

(draft APP)- to be

corrected based on

recommendations

from the review

Targets not Time

bound

(draft APP) - to be

corrected based on

recommendations

from the review

Programme 2: Integrated

Transport Planning 7 2 (25%) 0

Programme 3: Rail

Transport 5 1 (17%) 0

Programme 4: Road

Transport 7 3 (20%) 0

Programme 7: Public

Transport

4 3 (25%) 0

16

Overview of Key findings on the review of the 2017-18 APP

Department of Transport

National Department of Transport

Outcome of preliminary review of 2017/18 APP

17

Targets not specific and measurable Programme Indicator Annual target APP

Q2, Q3 & Q4

Observation Amendments by

management

Programme 2:

Integrated

Transport

Planning

Roll-out of 10

NATMAP

2050

interventions

by March

2019

Implementation

of ten (10)

NATMAP 2050

Priority Pilot

Projects

monitored

Q2: Conduct

Performance

Monitoring on four

(4) prioritised

projects

Q3: Conduct

Performance

Monitoring on four

(4) prioritised

projects

Q4: Conduct

Performance

Monitoring on two

(2) prioritised

projects

Neither the APP nor

the TIDs defines the

priority projects that

will be rolled out

and

monitored. This

makes it impossible

to measure

achievement at the

end of any quarter

or at year end.

Yes

The Technical

Indicator

Description was

amended to

specify the

priority projects

to be

implemented in

each of the

quarters i.e. 2, 3

and 4.

Programme Indicator Annual

target

APP

Observation Amendments by

management

Programme 2:

Integrated

Transport

Planning

Regional

Transport

Market Access

Strategy

developed by

March 2018

Draft Regional

Transport

Market

Access

Strategy

developed

Q3: Conduct a

benchmarking

exercise

towards the

Draft Regional

Transport

Market Access

Strategy of SA

Target is not

specific as

information to be

used as the

benchmark is not

defined. It would

be difficult to

determine

whether the

target was

achieved if it is

not specific.

Yes

The Technical

Indicator

Description was

updated to

include the

method of

benchmarking,

criteria for

identifying

member states

for the

benchmarking

exercise and the

members states

identified.

6

Targets not specific and measurable (cont)

Programme Indicator Annual target APP

Observation Amendments

by

management

Programme 3:

Rail Transport

National Rail

Bill submitted

to the Cabinet

by March

2019

National Rail

Bill submitted to

the ESEID

Cluster

Q1 & Q2: Conduct

stakeholder

consultation on

the Draft National

Rail Bill

Targets are not

specific as

stakeholders to

be consulted are

not defined. It

would be

impossible to

measure

quarterly

achievements if

the targets are

not specific.

Yes

Stakeholders

have been

included in the

final Technical

Indicator

Descriptions,

making the

achievement of

the targets

measurable and

well defined

7




by

management

Programme 4:

Road Transport

Access Road

Development

Plan submitted

to Cabinet by

March 2019

Comprehensive

stakeholder

consultations

conducted on the

draft Access

Road

Development

Plan

Conduct

stakeholder

consultations on

the draft Access

Road

Development

Plan

Q1: relevant

provincial

departments

Q2: relevant

municipalities

Q3: relevant

sector

departments

Targets are not

specific as

stakeholders to

be consulted are

not defined. The

targets are

therefore not

measurable as

the desired level

of achievement is

unknown

Yes

The final

Technical

Indicator

Descriptions

define the

stakeholders for

consultation in

all the quarters,

making the

target specific

and measurable.

8



Observation

Amendments

by

management

Programme 4:

Road Transport

Construction

and

maintenance of

provincial

roads

monitored in

line with the

approved

budget

Overall

implementation

of the SSP

monitored in line

with PRMG

budget

Q1, Q2, Q3 & Q4:

Monitor

implementation of

the SSP through

the site

inspections,

bilateral

consultations and

compile progress

report

In all four

quarters, the

TID does not

define the

parties involved

in the bilateral

consultations.

Further there is

no indication of

which sites will

be visited. It

would be

impossible to

measure

quarterly

achievements if

the targets are

not specific.

Yes

The final

Technical

Indicator

Descriptions

define the

stakeholders for

consultation in

all the quarters,

making the

target specific

and measurable

8



Observation

Amendments

by

management

Programme 4:

Road Transport

Draft Bill for

Founding

legislations of

road entities

submitted to

Cabinet by

March 2020

Review founding

legislations of

road entities

conducted

Q1: Conduct

status qou

analysis of

founding

legislations of

road entities

Target is not

specific as road

entities to be

consulted are

not defined.

The target is

therefore not

measurable as

the desired level

of achievement

is unknown

It is not clear

whether the

consultations

will take place

with all road

entities.

Yes

The final

Technical

Indicator

Descriptions

define the road

entities that will

be consulted,

making the

target specific

and

measurable.

8




by

management

Programme 7:

Public Transport

Implementation

of the National

Land Transport

Amendment Act

monitored

Develop draft

regulations for

the Land

Transport

Amendment Act

Q3: Conduct

public

consultations of

the draft

Regulations

through the

Gazette process

Target is not

specific as it is

not defined who

the consultations

will be

conducted with.

Removed from

the APP

Removal of this

indicator may

result in the

Department not

meeting its

mandatory

requirements.

Transport Appeal

Tribunal (TAT)

Amendment Bill

submitted to

Cabinet by

March 2019

Develop draft

Transport Appeal

Tribunal (TAT)

Amendment Bill

Q3: Conduct

public

consultations of

the draft TAT

Amendment Bill

through the

Gazette process

Target is not

specific as it is

not defined who

the consultations

will be

conducted with.

Yes

The final

Technical

Indicator

Descriptions

define the

stakeholders that

will be consulted,

making the

target specific

and measurable

9




by

management

Programme 7:

Public Transport

Implementation

of the integrated

public transport

turnaround plan.

Framework for

implementation

of the integrated

Public Transport

Turnaround plan

developed.

Q1: Conduct

stakeholders

engagement on

the programme

of action for the

integrated Public

Transport

Turnaround Plan

Included in the

definitions of

stakeholders to

be conducted is

"Industry" -

concept of who

constitutes

industry is not

well defined

especially taking

into account that

Provincial

Department and

Municipalities

are already

identified as

stakeholders

Yes

The final

Technical

Indicator

Descriptions

define the

stakeholders that

will be consulted,

making the

target specific

and measurable

9


Questions

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PowerPoint Presentationpmg-assets.s3-website-eu-west-1.amazonaws.com/170502APP-trans… · •Assessed the measurability and relevance of the final draft indicators and targets planned