QUARTERLY FINANCIAL PERFORMANCE
PRESENTATION(4th Quarter ending 31 MARCH 2013)
Presented by: Ms Yvonne Chetty Chief Financial Officer
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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
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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
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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 ADJUSTED BUDGET
2012/13
ACTUAL
2012/13
VARIANCE
2012/13 PercentageVARIANCE
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 ADJUSTED BUDGET
2012/13
ACTUAL
2012/13
VARIANCE
2012/13 PercentageVARIANCE
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 ADJUSTED BUDGET
2012/13
ACTUAL
2012/13
VARIANCE
2012/13 PercentageVARIANCE
2012/13 BUDGET
EXPENDEDR'000 R'000 R'000 % %
1,563,403
1,544,913
18,490 1.2% 98.8%
Compensation of employees
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%
Transfers and subsidies
1,500,000
1,500,031 -31 0.0% 100.0%
Payments for capital Assets
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 ADJUSTED BUDGET
2012/13
ACTUAL
2012/13
VARIANCE
2012/13 PercentageVARIANCE
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%
Transfers and subsidies
1,076,739
1,076,788
-49 0.00% 100%
Payments for capital Assets
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 ADJUSTED BUDGET
2012/13
ACTUAL
2012/13
VARIANCE
2012/13 PercentageVARIANCE
2012/13 BUDGET
EXPENDED
R'000 R'000 R'000 % %
3,147,822
3,112,376
35,446 1.1% 98.9%
Compensation of employees
17,213
16,111
1,102 6.4% 93.6%
Goods and services
13,398
7,059
6,339 47.3% 52.7%
Transfers and subsidies
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 ADJUSTED BUDGET
2012/13
ACTUAL
2012/13
VARIANCE
2012/13 PercentageVARIANCE
2012/13 BUDGET
EXPENDED
R'000 R'000 R'000 % %
646,883
642,733
4,150 0.6% 99.4%
Compensation of employees
7,807
8,283
-476 -6.1% 106.1%
Goods and services
28,548
23,954
4,594 16.1% 83.9%
Transfers and subsidies
610,491
610,496 -5 0.00% 100.0%
Payments for capital Assets
37
-
37 100.0% 0.0%
4th QUARTER TRANSFER PAYMENT SCHEDULE FOR 2012/13
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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 6,304,841 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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