quarterly financial performance presentation (4 th quarter ending 31 march 2013)

QUARTERLY FINANCIAL PERFORMANCE

PRESENTATION(4th Quarter ending 31 MARCH 2013)

Presented by: Ms Yvonne Chetty Chief Financial Officer

1

PRESENTATION LAYOUT

•4th Quarter Financial Performance for 2012/13 - Overview per Economic Classification• 4th Quarter - Top 5 Major Cost Drivers (Goods & Services) For 2012/13• 4th Quarter Financial Performance for 2012/13 – Overview Per Programme• 4th Quarter Transfer Payment Schedule for 2012/13

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4th QUARTER FINANCIAL PERFORMANCE FOR 2012/13

Overview – Economic Classifications

3

VOTE 29: ENERGY

2012/13 ADJUSTED BUDGET

2012/13

ACTUAL

2012/13

VARIANCE

2012/13 PercentageVARIANCE

2012/13 BUDGET

EXPENDEDR'000 R'000 R'000 % %

TOTAL ENERGY

6,734,478

6,658,984 75,494 1.1% 98.9%

Compensation of Employees

206,763

201,485

5,278 2.6% 97.4%

Goods & Services

207,747

170,208

37,539 18.1% 81.9%

Payments for Financial Assets

-

36

-36

- -

Transfers & Subsidies

6,304,841

6,276,700

28,141 0.4% 99.6%

Payments for Capital Assets 15,127 10,555 4,572 30.2% 69.8%

4th QUARTER FINANCIAL PERFORMANCE FOR 2012/13• The Department’s 2012/13 adjusted budget was a total of

R6.73 billion

• As at 31 March 2013, a total of R6.66 billion or 98.9% of this adjusted budget had been disbursed

• This resulted in an unspent total/remaining balance of R75.49 million or 1.1% of the adjusted allocation

• The overall under spend, R75.49 million, was mainly due to the spending within the Goods & services economic classification, which accounted for R37.5 million of the remaining balance, while the Transfer Payments economic classification contributed R28.1 million to the remaining balance

• A roll over motivation will be submitted to the NT for consideration

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4th QUARTER (TOP 5) - MAJOR COST DRIVERS: GOODS AND SERVICES FOR 2012/13

5

Expenditure Item

2012/13 Actual

Expenses

R’000

Percentage of Total Goods & Services

Spent%

Travel and Subsistence 37,009 28.8%

Lease Payments 28,575 22.2%

Operating Payments 23,989 18.7%

Property Payments 23,664 18.4%

Cons/Prof: Business & Advisory Service 15,358 11.9%

TOTAL 128,623 75.55%TOTAL 12/13 GOODS & SERVICES ACTUAL: R170,208• Travel & Subsistence: 56% of the total expenditure was incurred in the Administration programme•Lease Payments: This is inclusive of operating leases for printing machines and office accommodation for both regional and head offices. Office accommodation leases accounts for 89% of the total spend• Operating payments: Mainly for international membership fees, the total is inclusive of payments from the 2011/12

Financial year which was funded by the approved roll over.• Property Payments: Include and amount of approx. R20m for the Bill of quantities which was payable to DPW prior to the Head office relocation

4th QUARTER FINANCIAL PERFORMANCE FOR 2012/13 - per PROGRAMME

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VOTE 29: ENERGY


2012/13

ACTUAL

2012/13

VARIANCE


2012/13 BUDGET

EXPENDED

R'000 R'000 R'000 % %

TOTAL ENERGY

6,734,478

6,658,984 75,494 1.1% 98.9%

Administration

236,583

219,486

17,097 7.2% 92.8%

Energy Policy & Planning

1,563,403

1,544,913

18,490 1.2% 98.8% Energy Regulation

1,139,787

1,139,476

311 0.1% 99.9%

National Electrification Programme

3,147,822

3,112,376

35,446 1.1% 98.9%

Nuclear Energy & Regulation

646,883

642,733

4,150 0.6% 99.4%

Programme 1: Administration

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• Compensation of employees: Variance due to additional funding from the EEDSM reclassification to clear the estimated shortfall as a result of staff additional to the establishment and salary adjustments for senior management, for the entire DoE.

• Goods and services: The remaining balance is mainly due to office accommodation leases, a total of R25.6m was paid from a budget allocation of R32.2m resulting in a balance of R6.6 million

Capex: Balance due to funds shifted in order to provide for projects in Auxiliary services, e.g. PA, system, Atrium closing and equipment purchases in IT. The projects could not be

finalized and the delivery of the equipment did not take place before year end.

VOTE 29: ENERGY


2012/13

ACTUAL

2012/13

VARIANCE


2012/13 BUDGET

EXPENDEDR'000 R'000 R'000 % %

236,583

219,486

17,097 7.2% 92.8%

Compensation of employees

99,289

92,876

6,413 6.5% 93.5%

Goods and services

122,046

115,848

6,198 5.1% 94.9%

Payment for Financial Assets

-

35

-35 0.0% 0.0%

Transfers and subsidies

400

179

221 55.2% 44.8%

Payments for capital Assets

14,848

10,548

4,300 29.0% 71.0%

Programme 2: Energy Policy and Planning

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• Goods & services: Variance mainly due to a number of projects which were not finalized as planned, e.g. the mini ADAM project , the audit of refineries as well as the clean energy campaigns within one of the PPP events which were postponed to the next financial year

VOTE 29: ENERGY


2012/13

ACTUAL

2012/13

VARIANCE


2012/13 BUDGET

EXPENDEDR'000 R'000 R'000 % %

1,563,403

1,544,913

18,490 1.2% 98.8%


32,470

32,901 -431 -1.3% 101.3%

Goods and services

30,701

11,973

18,728 61.0% 39.0%

Payment for Financial Assets

-

1 -1 0.0% 0.0%


1,500,000

1,500,031 -31 0.0% 100.0%


232

7

225 97.0% 3.0%

Programme 3: Energy Regulation

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• Goods & services: The payment to IPEEC for international membership fees could not be processed before year end as anticipated.

VOTE 29: ENERGY


2012/13

ACTUAL

2012/13

VARIANCE


2012/13 BUDGET

EXPENDED

R'000 R'000 R'000 % %

1,139,787

1,139,476

311 0.1% 99.9% Compensation of employees

49,984

51,314

-1 ,330 -2.7% 102.7%

Goods and services

13,054

11,374

1,680 12.9% 87.1%


1,076,739

1,076,788

-49 0.00% 100%


10

-

10 100.00% 0.00%

Programme 4: National Electrification Programme

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• Goods and services: The remaining balance is as a result of the halting of procurement processes for the acquisition of the energy reporting tool, which was allocated R6m from the EEDSM reclassification

• Transfer payments: The remaining balance is solely due to the performance of the Non-grid electrification project. Due to a number of challenges experienced, which led to the delayed implementation at the beginning of the financial year, the project ‘s total allocation could not be fully utilized. Contracts are already in place, with service providers carrying out the necessary work which will be the basis for a roll over motivation.

VOTE 29: ENERGY


2012/13

ACTUAL

2012/13

VARIANCE


2012/13 BUDGET

EXPENDED

R'000 R'000 R'000 % %

3,147,822

3,112,376

35,446 1.1% 98.9%


17,213

16,111

1,102 6.4% 93.6%

Goods and services

13,398

7,059

6,339 47.3% 52.7%


3,117,211

3,089,206

28,005 0.9% 99.1%

Programme 5: Nuclear Energy and Regulation

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• Goods and services: An additional R7 million was allocated from the EEDSM reclassification and the under spent is as a result of some projects that could not be finalized before year end. These will be motivated for a roll over into the 2013/14 financial year

VOTE 29: ENERGY


2012/13

ACTUAL

2012/13

VARIANCE


2012/13 BUDGET

EXPENDED

R'000 R'000 R'000 % %

646,883

642,733

4,150 0.6% 99.4%


7,807

8,283

-476 -6.1% 106.1%

Goods and services

28,548

23,954

4,594 16.1% 83.9%


610,491

610,496 -5 0.00% 100.0%


37

-

37 100.0% 0.0%

4th QUARTER TRANSFER PAYMENT SCHEDULE FOR 2012/13

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VOTE 29: ENERGY


2012/13

ACTUAL

2012/13

VARIANCE


2012/13 BUDGET

EXPENDEDR'000 R'000 R'000 % %

TOTAL ENERGY 6,304,841 6,276,700 28,141 0.4% 99.6%

Programme 2 Transnet Pipelines 1,500,000 1,500,000

- 0.00% 100.00%

Programme 3 EEDSM - Municipalities

200,000 200,000 - 0.00% 100.00%

EEDSM – Eskom 820,629 820,629 - 0.00% 100.00%

SANEDI 56,110 56,110 - 0.00% 100.00%

Programme 4 INEP - Municipalities 1,151,443 1,151,443 - 0.00% 100.00%

INEP - Eskom 1,879,368 1,879,368 - 0.00% 100.00%

INEP – Non-grid 86,400 58,328 28,072 32.49% 67.51%

Programme 5 NNR 42,912 42,912

- 0.00% 100.00%

NECSA 567,579 567,579 0.00% 100.00%

Programme 1 Households 400 331 69 17.2% 82.8%

Thank You!

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quarterly financial performance presentation (4 th quarter ending 31 march 2013)

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