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Integrated Annual Report Necsa Annual Report 2017/18 002 General Information 1 Table of Contents 2018 INTEGRATED ANNUAL REPORT NECSA ANNUAL REPORT 2017/18 002 GENERAL INFORMATION 1 TABLE OF CONTENTS HUMAN RESOURCES & GENERAL 2 REAL ESTATE ASSET 74 1 INFORMATION 7 MANAGEMENT About this Integrated Annual Report 3 Introduction 75 Necsa’s Origins 4 Staff Financial Statistics 76 Abbreviations and Acronyms 5 Staff Social Statistics 79 Necsa Strategy 6 Staff Development 84 Organisational Structure 8 Key Human Resources Challenges 87 FOREWORD OF THE 12 GOVERNANCE 88 2 CHAIRPERSON 8 Accounting Authority – Necsa Board 89 CEO’S Committees of the Board 94 3 15 OVERVIEW Executive Management Committee - EXCO 98 Risk Management 101 HIGHLIGHTS 18 4 OF 2017/18 9 SUSTAINABILITY REPORT 104 Economic Sustainability 105 KEY PERFORMANCE 5 24 Social Sustainability 106 INFORMATION Environmental Sustainability 107 Statement of Responsibility for Performance Information 25 FINANCIAL 10 108 Auditor-General’s Report: Predetermined Objectives 26 REPORT Overview of Public Entity’s Performance 26 General Information 110 Strategic Outcome Oriented Goals 27 Director’s Responsibilities and Approval 111 Performance Information by Programme Cluster 28 Report of the Audit and Risk Committee 112 Summary of Financial Information 32 Directors’ Report 114 NECSA DIVISIONS AND Independent Auditor’s Report 120 36 Consolidated Statement of Financial Position 127 6 KEY SUBSIDIARIES Consolidated Statement of Comprehensive Group Functions 37 Income 130 Chief Technology Office 45 Consolidated Statement of Changes in Equity 132 Nuclear Compliance and Services 60 Consolidated Statement of Cash Flows 134 Pelindaba Enterprise 63 Accounting Policies 135 Business Development and Innovation 64 Notes to the Annual Financial Statements 152 Finance Division 67 KNOWLEDGE Pelchem SOC Ltd 70 244 11 DISSEMINATION NTP Radioisotopes SOC Ltd 71 Articles Published in ISI Listed Journals 245 NECSA ANNUAL REPORT 2017/18 1 GENERAL INFORMATION 1 1 GENERAL INFORMATION NECSA ANNUAL REPORT 2017/18 2 GENERAL INFORMATION 1 ABOUT THIS INTEGRATED ANNUAL REPORT Significant Frameworks Applied Complementary national and international frameworks were used to evaluate material matters included in this report. Necsa Group. The organisational structure in terms of both The primary guidance is from the Treasury Guide on the Divisions and Programme Clusters is presented on pages Preparation of the Annual Report for Public Entities, April 8,9 and 10. 2013. This was enhanced with the requirements from the International Integrated Reporting Council’s International Structure of Report Integrated Reporting Framework, December 2013. Finally, This report has been significantly restructured compared to care was exercised to address all material topics covered in previous editions. This was necessitated in order to comply the previous annual report. with the reporting frameworks discussed above while improving logical flow of information. Guidance was also taken from the King III Report on Corporate Governance, September 2009 and an assessment of compliance to the King III Report is presented in the chapter Assurance Statement on Governance. The performance of the Corporation in terms The Board Audit and Risk Committee has evaluated the of sustainable development is examined in Chapter 9. Annual Financial Statements as well as performance information for the year ended 31 March 2018. Additionally, The reporting of Risk Management was informed by Treasury’s the Committee reviewed the reports of the Group’s Internal Public Sector Risk Management Framework as well as the Audit Department, the Auditor-General’s Management report ISO 31000 Standard on Risk Management. and Management’s response thereto, as well as any significant The Annual Financial Statements are prepared in accordance adjustments resulting and has recommended the approval of with the International Financial Reporting Standards (IFRS), the Annual Financial Statements to the Board in the separate the Companies Act of 2008, as amended, and the Public Annual Financial Statements. Finance Management Act (PFMA) of 1999. The Auditor-General of South Africa has audited the Annual Materiality Determination Process Financial Statements, performance against predetermined objectives, compliance with legislation as well as internal Material matters for inclusion in this Integrated Annual controls of the Necsa Group, see separate Annual Financial Report are in large part prescribed by the Treasury Guide Statements. on the Preparation of the Annual Report for Public Entities. Within this framework, department heads are expected to Directors’ Responsibility and Approval contribute significant information concerning their areas The Necsa Board of Directors acknowledges their respon- of responsibility. Internal reviewers evaluated the report for sibility to ensure the integrity of the 2017/18 Integrated overall balance and prioritisation of material issues. Annual Report. The Board confirms that the report addresses Scope and Reporting Boundary all material issues and fairly presents the performance of the Necsa Group in accordance with the International Integrated This Integrated Annual Report covers the operations of Reporting Framework. The Board approved the 2017/18 the Necsa Group for the financial year beginning 1 April Integrated Annual Report in the separate Annual Financial 2017 and ending 31 March 2018. The Necsa Group – as Statements. financial reporting entity - consists of Necsa SOC Ltd and its subsidiaries, most notably NTP Radioisotopes SOC Ltd Enquiries and Pelchem SOC Ltd. Other subsidiaries, as well as those Any enquiries regarding this report can be directed to the of NTP Radioisotopes SOC Ltd and Pelchem SOC Ltd are General Manager: Finance at +27 12 305 5678/5707 or reported on to the extent that they materially affect the [email protected] NECSA ANNUAL REPORT 2017/18 3 GENERAL INFORMATION 1 NECSA’S Name and Registration Number The South African Nuclear Energy Corporation, trading as ORIGINS Necsa, is a state owned company (SOC). On 13 August 1944, the United Kingdom first requested Registration number: 2000/003735/06 South Africa’s assistance in obtaining uranium for the Holding Company: Department of Energy Manhattan Project. After World War II, interest in the Country of South Africa extraction of uranium oxide continued from the USA and Incorporation and UK for both military and peaceful applications. This led Domicile: to the establishment in February 1946 of the “Uranium Physical and Elias Motsoaledi Street Extension Research Committee” and in September 1948, the South Business Address: (Church Street West) African Atomic Energy Board (AEB) was constituted. R104 Pelindaba Following international developments in nuclear power Brits Magisterial District and radioisotope applications, construction of the National Madibeng Municipality Nuclear Research Centre, including the SAFARI-1 Research North West Province Reactor, started at Pelindaba in 1961. 0240 Postal Address: PO Box 582, Pretoria In 1970, the Uranium Enrichment Corporation (UCOR) 0001 was created and tasked to establish a nuclear fuel cycle South Africa programme at Valindaba, adjacent to the then Pelindaba Telephone Number: +27 12 305 4911 site. The ostensible aim was to investigate the feasibility of Fax Number: +27 12 305 3111 nuclear explosives for peaceful applications. However, in E-mail Address: [email protected] 1977 the emphasis changed to a strategic nuclear weapons deterrent capability and in November 1979 the first nuclear Website Address: www.necsa.co.za explosive device was equipped with highly enriched uranium. External Auditors: Auditor-General of South Africa 300 Middel Street Application of the nuclear fuel cycle technologies to civilian New Muckleneuk nuclear power generation started with construction of the Pretoria “Z” Enrichment Plant in 1978. A fuel element manufacturing Bankers: Nedbank Limited facility supplying Koeberg Nuclear Power Station started 135 Rivonia Road Sandown production in 1987. Sandton Meanwhile, the Nuclear Energy Act of 1982 renamed the Company Secretary: Fulufhulani Corporate Governance AEB to NUCOR and combined it with UCOR under the and Legal Advisory (Pty) Ltd Atomic Energy Corporation (AEC) as the controlling body. 105 Ninth Road Carlswald On 1 July 1985, the NUCOR and UCOR subsidiaries were Midrand combined into the AEC. Dismantling of the nuclear deterrent Johannesburg capability started in 1989 while the civilian nuclear fuel 1685 cycle services proved uncompetitive post 1994. A drive Enquiries regarding General Manager: Finance at to industrialise technologies emanating from the nuclear this report: +27 12 305 5678/5707 or programme was launched. In 1999, the current Nuclear [email protected] Energy Act transitioned the AEC to the South African Nuclear Energy Corporation – Necsa. NECSA ANNUAL REPORT 2017/18 4 GENERAL INFORMATION 1 ABBREVIATIONS AND ACRONYMS API Active Pharmaceutical Ingredient Molybdenum-99 A radioactive isotope of molybdenum AGSA Auditor-General of South Africa MTEF Medium-Term Expenditure Framework ALARA As Low As Reasonably Achievable Necsa South African Nuclear Energy Corporation SOC Limited ANSTO Australian Nuclear Science and Technology Organisation NEHAWU National Education, Health and Allied Workers Union ASME American Society for Mechanical Engineers NIASA Nuclear Industry Association of South Africa B-BBEE Broad-Based Black Economic Empowerment NKP National Key Point BBS Behaviour-Based Safety NNR National Nuclear Regulator CHIETA Chemical Industries Education and NQF National Qualifications
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