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Annual Report 2019/20

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Annual Report 2019/20 ANNUAL REPORT 2019/20 ANNUAL REPORT 2019/20 1 Annual Report 2019/20_26_OCT_2020.indd 1 10/26/20 4:29 PM 2 ANNUAL REPORT 2019/20 Annual Report 2019/20_26_OCT_2020.indd 2 10/26/20 4:29 PM Constitutional Contents PART A: GENERAL INFORMATION 05 Statement of Responsibility and Public Entity’s General Information 6 Confirmation of Accuracy for List of Abbreviations/Acronyms 7 the Annual Report 12 Chairperson’s Foreword 9 Strategic Overview 14 Chief Executive Officer’s Overview 11 Constitutional and other Mandates 16 Board of Directors 18 Executive Committee 19 Organisational Structure 20 PART B: PERFORMANCE INFORMATION Auditor’s Report: Performance Information by Programme/ 21 Predetermined Objectives 22 Activity/ Objective 33 Situational Analysis 22 Outcome 1: Railways are Safer 33 Service Delivery Environment 22 Outcome 2: Sustainable Institutional Organisational Environment 27 Growth and Development 40 Key Policy Developments and Outcome 3: Improved Stakeholder Service 43 Legislative Changes 29 Revenue Collection 46 Strategic Outcome Oriented Goals 30 Capital Investment 47 PART C: GOVERNANCE 49 Introduction 50 Compliance with Laws and Regulations 67 Portfolio Committees 50 Fraud and Corruption 68 Executive Authority 50 Minimising Conflict of Interest 69 The Accounting Authority/Board 50 Code of Conduct 69 Company/Board Secretary 62 Health Safety and Environmental Issues 70 Risk Management 63 Social Responsibility 72 Internal Controls 65 Audit Committee Report 73 Internal Audit and Audit Committees 65 B-BBEE Compliance Performance Information 75 77 PART D: HUMAN RESOURCE MANAGEMENT PART E: FINANCIAL INFORMATION Introduction 78 87 Auditor General’s Report 90 Human Resource Oversight Statistics 80 Annual Financial Statements 94 Notes 142 ANNUAL REPORT 2019/20 3 Annual Report 2019/20_26_OCT_2020.indd 3 10/26/20 4:29 PM 4 ANNUAL REPORT 2019/20 Annual Report 2019/20_26_OCT_2020.indd 4 10/26/20 4:29 PM PART A: GENERAL INFORMATION ANNUAL REPORT 2019/20 5 Annual Report 2019/20_26_OCT_2020.indd 5 10/26/20 4:29 PM Public Entity’s General Information Registered Name: Railway Safety Regulator Registration Number: N/A Physical Address: Building 4, Waterfall Point Office Park, Cnr Waterfall and Woodmead Drive, Waterfall City, Midrand, 1685, South Africa Postal Address: P.O Box 11202, Centurion, 0051, South Africa Telephone Number: +27 10 495 5291 Email Address: [email protected] Website Address: https://www.rsr.org.za External Auditors: Auditor General of South Africa 271 Veale Street, Muckleneuk, 0181 Banker: ABSA Company/ Board Secretary Mmuso Selaledi (Acting) 6 ANNUAL REPORT 2019/20 Annual Report 2019/20_26_OCT_2020.indd 6 10/26/20 4:29 PM List of Abbreviations/Acronyms AFS Annual Financial Statements AGSA Auditor General of South Africa APP Annual Performance Plan ASB Accounting Standards Board BBBEE Broad Based Black Economic Empowerment CCMA Commission for Conciliation Mediation and Arbitration CEO Chief Executive Officer CFO Chief Financial Officer COO Chief Operations Officer CSM-CA Common Safety Method Conformity Assessment CSM-RA Common Safety Method Risk Assessment DoT Department of Transport ERM Enterprise-Wide Risk Management FY Financial Year GRAP Generally Recognised Accounting Practice HFM Human Factor Management IAA Internal Audit Activity ICT Information Communication Technology IIMS Integrated Information Management System KPI Key Performance Indicator MoU Memorandum of Understanding MTEF Medium Term Expenditure Framework MTSF Medium Term Strategic Framework NATMAP National Transport Master Plan 2050 NDP National Development Plan 2030 ANNUAL REPORT 2019/20 7 Annual Report 2019/20_26_OCT_2020.indd 7 10/26/20 4:29 PM NIMS National Information Monitoring System PFMA Public Finance Management Act PRASA Passenger Rail Agency of South Africa REPUBLIC Republic of South Africa RIA Regulatory Impact Assessment RM3 Railway Management Maturity Model RSR Railway Safety Regulator SADC Southern Africa Development Community SALGA South African Local Government Association SANS South African National Standards SARA Southern Africa Railways Association SATAWU South African Transport and Allied Workers SCM Supply Chain Management SMME Small Medium and Micro Enterprises SMS Safety Management System SMSR Safety Management System Report SOP Standard Operating Procedure TETA Transport, Education and Training Authority TFR Transnet Freight Rail TR Treasury Regulations UNTU United National Transport Union VSCC Verbal Safety Critical Communication 8 ANNUAL REPORT 2019/20 Annual Report 2019/20_26_OCT_2020.indd 8 10/26/20 4:29 PM Chairperson’s foreword s I take over the reins as the Chairperson of the Board of Directors of the Railway Safety Regulator (RSR), I am pleased to present the 2019/20 Annual Report in a year where the Regulator achieved 94 A per cent of its annual performance targets. It would be remiss of me not to acknowledge the role played by my colleagues who were part of the previous RSR Board. This great performance would not have been possible without their dedication and stewardship. The year under review has indeed been exceptional and saw the RSR accentuate the 6th Administration’s apex priorities and the Department of Transport’s Strategic Outcome to ensure an efficient and integrated rail network that accelerates social and economic development. The Regulator aligned its strategic goals and objectives to ensure that all rail industry activities are completed with safety as the main consideration. The Board of Directors focused on discharging their duties of ensuring that the RSR complies with legislation, conducts its business in harmony with the applicable regulatory requirements and ensures that suitable policies, as well as frameworks, are steadfast to promote a culture of compliance within the organisation. In line with this, the Compliance Unit was established to assist the Board in the management of compliance risks, by ensuring that all instances of non-compliance are adequately followed up and resolved. This enabled the RSR to conduct its business activities in an increasingly efficient and effective environment. Throughout the 2019/20 Financial Year, the RSR’s compliance monitoring was prioritised with the organisation ensuring controls and processes to support the requirements of the relevant Acts. These controls and processes were assessed for validity through corroboration of supporting evidence. To this effect, numerous policies were signed off and all departments across the organisation developed Standard Operating Procedures which guarantees that processes are in place to ensure excellent service delivery every time. We are very pleased about the key strategic relationships that were established with the South African Local Government Association (SALGA) in the Gauteng and North-West provinces respectively. To this end, strong relationships are being built that will have mutual benefits for both entities. A lot of work is still required in this space and over time, we hope to see positive impacts on compliance as well as spatial planning, among other priorities. In the new financial year, the RSR will focus on strengthening its mandate by developing a Common Safety Method for Supervision Framework as well as a Financial Sustainability Plan. These will no doubt bring immeasurable value to the industry. Allow me to thank the Minister of Transport, Mr. Fikile Mbalula, the members of the previous Board, the executive team and all the staff members of the RSR as well as our extensive assembly of stakeholders for making the Regulator a significant player in the railway environment. ________________________________________ Mr Boy Johannes Nobunga CHAIRPERSON: RSR BOARD ANNUAL REPORT 2019/20 99 Annual Report 2019/20_26_OCT_2020.indd 9 10/26/20 4:29 PM 1010 ANNUAL REPORT 2019/20 Annual Report 2019/20_26_OCT_2020.indd 10 10/26/20 4:29 PM Chief Executive Officer’s report he past financial year has been both challenging and outstanding for the Railway Safety Regulator (RSR). Notwithstanding the challenges, the Regulator performed exceptionally well. T I am, therefore, truly honoured to present the 2019/20 Annual Report of the RSR which reflects on a year where the RSR achieved a sterling 94 per cent overall performance. As a state-owned entity of the National Department of Transport, the RSR aligned its Annual Performance Plan with the Apex Priorities of the 6th Administration. In line with transforming the economy to serve all South Africans and create jobs, the organisation awarded a total of R3 044 959 for internal and external bursaries during the year under review. The bursaries were awarded to nine staff members and 29 deserving students, who will over time become contributing professionals in industries, including the rail sector. To advance nation-building and social cohesion, the RSR is strengthening the rail regulatory framework through the development of determinations, protocols and guidelines. These tools are aimed at building industry capacity to develop effective safety management approaches as well as the development of an industry safety risk profile to support critical risk mitigation decisions that will result in safer railway operations. These require industry cooperation. To that extent, the RSR reviewed its engagement with the industry by adopting a collaborative approach in mitigating the risks of railway occurrences and thereby reducing the number of occurrences. Throughout the financial year, the Supply Chain Management (SCM) unit continued to ensure compliance with legislation, National Treasury
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