ANNUAL REPORT 2018/2019 ANNUAL REPORT 2018/19 VOTE 26 CONTENTS PART A: GENERAL INFORMATION 5 PART C: GOVERNANCE 80 1.1 Department of Energy General 6 3.1 Introduction to Governance 81 Information 1.2 List of Abbreviations/Acronyms 7 3.2 Risk Management at the DoE 82 1.3 Foreword by the Minister of Mineral 9 3.3 Fraud and Corruption 83 Resources and Energy 1.4 Deputy Minister of Mineral Resources and 3.4 Minimising Conflict of Interest 83 12 Energy’s Statement 3.5 Code of Conduct 84 1.5 Report of the Accounting Officer 16 3.6 Health Safety and Environmental Issues 84 1.6 Vision, Mission and Values 27 3.7 Portfolio Committees 84 1.7 Legislative and Other Mandates 28 3.8 Standing Committee on Appropriations 85 1.8 Organisational Structure 29 Resolutions 1.9 Entities Reporting to the Minister 30 3.9 Prior Modifications to Audit Reports 85 1.10 Future Plans 33 3.10 Internal Control Unit 85 1.11 Statement of Responsibility and 3.11 Internal Audit and Audit Committees 85 Confirmation of Accuracy for the 35 Annual Report 3.12 Audit Committee Report 87 PART B: PERFORMANCE INFORMATION 36 PART D: HUMAN RESOURCE 90 MANAGEMENT 2.1 Performance Information 37 4.1 Human Resource Management 91 2.2 Auditor-General’s Report: Predetermined 37 Objectives 4.2 Introduction 91 2.3 Overview of Departmental Performance 37 4.3 Human Resources Oversight Statistics 92 2.4 Organisational Environment 43 2.5 Strategic Outcome Oriented Goals 44 PART E: FINANCIAL INFORMATION 121 2.6 Performance Information 50 5.1 Report of the Auditor-General to Parliament 123 on Vote 26: Department of Energy 2.7 Performance Information by Programme 50 5.2 Annual Financial Statements 127 2.8 Governance and Compliance Branch 51 2.9 Transfer Payments 72 PART F: ANNEXURES 243 2.10 Conditional Grants 75 Independent Power Producer Office 245 Unaudited Financial Statements, 2018/19 2.11 Donor Funds 77 LISOABT F T LES Table 1 Summary of DoE 2018/19 Annual Performance Plan Results 17 Table 2 Performance Standards for Annual Reports 17 Table 3 Departmental receipts 18 Table 4 Budget Variance per Economic Classification 19 Table 5 Programme Expenditure 21 Table 6 Additional funding to Programme 5: Nuclear Energy for the New Nuclear Build Programme (NNBP) 23 Table 7 Programme 4: Electrification and Energy Programme and Project Management) 24 Table 8 Additional operational funding to the Administration Programme 24 Table 9 Accounting Officer’s virement approval for the 2018/19 financial year 25 Table 10 National Treasury’s final virement approval for the 2018/19 financial year 25 Table 11 Final Virement approval for the 2018/19 financial year 26 Table 12 Roll-over funds 27 Table 13 Entities reporting to the Minister 30 Table 14 Future Initiatives/plans 33 Table 15 Number of Public – Private projects and contracted electricity capacity 33 Table 16 Main services and standards 41 Table 17 Batho Pele arrangements with beneficiaries (Consultation access etc.) 42 Table 18 Service delivery information tool 42 Table 19 Complaints mechanism 42 Table 20 Fourteen Priority Government Outcomes and Energy Related Strategic Infrastructure Projects (SIPs) 46 Table 21 Strategic Objectives from the 2018/19 APP 48 Table 22 The progress made in achieving Programme 1 pre-determined objectives for FY 2018/19 is 53 summarised next Table 23 Sub-programme expenditure 54 Table 24 The progress made in achieving Programme 2 pre-determined objectives for FY 2018/19 is 56 summarised next Table 25 Sub-programme expenditure 57 Table 26 Refined products imports 61 Table 27 The progress made in achieving Programme 3 pre-determined objectives for FY 2018/19 is 63 summarised next Table 28 Sub-programme expenditure 64 Table 29 The progress made in achieving Programme 4 pre-determined objectives for FY 2018/19 is 66 summarised next Table 30 Sub-programme expenditure 67 1 DEPARTMENT OF ENERGY Annual Report 2018|2019 LISOABT F T LES Table 31 The progress made in achieving Programme 5 pre-determined objectives for FY 2018/19 is 68 summarised next Table 32 Linking performance with budgets for Programme 5 69 Table 33 The progress made in achieving Programme 6 pre-determined objectives for FY 2018/19 is 70 summarised next Table 34 Sub-programme expenditure 71 Table 35 Department of Energy Programme expenditure 71 Table 36 Transfers and subsidies 72 Table 37 Transfer payments to public entities 72 Table 38 Transfer payments to all organisations other than public entities 74 Table 39 Conditional Grants 1: National Electrification Programme (equitable share) 75 Table 40 Conditional Grant 2: National Electrification Programme (Eskom) 75 Table 41 Conditional Grant 3: Energy Efficiency and Demand Side Management Programme (equitable share) 76 Table 42 Donor Fund: Renewable Energy Development Programme 77 Table 43 Guiding Risk Management Questions Department Guiding Risk Management Questions 82 Table 44 Total number and average scores of inherent and residual branch risks 82 Table 45 Key to levels of risk 83 Table 46 Compliance rates of financial disclosure per employee category 83 Table 47 Date and subject of briefing to the Portfolio Committee on Energy 84 Table 48 Standing Committee on Appropriations 85 Table 49 Meeting attendance of Audit Committee members 86 Table 50 Personnel costs by programme for the period 1 April 2018 to 31 March 2019 93 Table 51 Personnel costs by Salary Band for the period 1 April 2018 to 31 March 2019 93 Table 52 Salaries, overtime, home owners allowance and medical aid by programme for the period 1 April 2018 to 31 March 2019 94 Table 53 Salaries, overtime, home owners allowance and medical aid by Salary Band the period 1 April 2018 to 31 March 2019 94 Table 54 Employment and vacancies by programme at end of period 95 Table 55 Employment and vacancies by Salary Band at end of period 95 Table 56 Employment and vacancies by Critical Occupation at end of period 96 Table 57 SMS post information as of 31 March 2019 97 Table 58 SMS post information as of 30 September 2018 98 Table 59 Advertised and filling of SMS posts for the period 1 April 2018 to 31 March 2019 98 DEPARTMENT OF ENERGY Annual Report 2018|2019 2 LISOABT F T LES Table 60 Reasons for not having complied with the filling of funded vacant SMS - advertised within 5 months and filled within 12 months after becoming vacant for period 1 April 2018 to 31 March 2019 98 Table 61 Job Evaluation by Salary Band for the period 1 April 2018 to 31 March 2019 99 Table 62 Profile of employees whose positions were upgraded due to their posts being upgraded for the 99 period 1 April 2018 to 31 March 2019 Table 63 Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2018 to 31 March 2019 100 Table 64 Profile of employees who have salary levels higher than those determined by job evaluation for the 100 period 1 April 2018 to 31 March 2019 Table 65 Annual turnover rates by Salary Band for the period 1 April 2018 to 31 March 2019 101 Table 66 Employment and vacancies by Critical Occupation at end of period 101 Table 67 Reasons why staff are leaving the department for the period 1 April 2018 to 31 March 2019 103 Table 68 Promotions by Critical Occupation for the period 1 April 2018 to 31 March 2019 103 Table 69 Promotions by Salary Band for the period 1 April 2018 to 31 March 2019 104 Table 70 Total number of employees (incl. employees with disabilities) per occupational category (SASCO) for 105 the period 1 April 2018 to 31 March 2019 Table 71 Total number of Employees with Disabilities for the period 1 April 2018 to 31 March 2019 105 Table 72 Total number of employees (incl. employees with disabilities) per occupational bands for the period 1 April 2018 to 31 March 2019 105 Table 73 Recruitment for the period 1 April 2018 to 31 March 2019 106 Table 74 Recruitment (Employees with disabilities) for the period 1 April 2018 to 31 March 2019 106 Table 75 Promotions for the period 1 April 2018 to 31 March 2019 106 Table 76 Promotions (Employees with disabilities) for the period 1 April 2018 to 31 March 2019 106 Table 77 Terminations for the period 1 April 2018 to 31 March 2019 107 Table 78 Disciplinary Action for the period 1 April 2018 to 31 March 2019 107 Table 79 Terminations for the period 1 April 2018 to 31 March 2019 107 Table 80 Signing of performance agreements by SMS members 108 Table 81 Reasons for not having concluded performance agreements for all SMS members 108 Table 82 Disciplinary steps taken against SMS members for not having concluded performance agreements 108 Table 83 Performance rewards by race, gender and disability for the period 1 April 2018 to 31 March 2019 109 Table 84 Performance rewards by Salary Band for personnel below Senior Management Service for the period 1 April 2018 to 31 March 2019 109 Table 85 Performance rewards by Critical Occupation for the period 1 April 2018 to 31 March 2019 109 Table 86 Performance Related Rewards (cash bonus) by Salary Band for Senior Management Service for the 111 period 1 April 2018 to 31 March 2019 3 DEPARTMENT OF ENERGY Annual Report 2018|2019 LISOABT F T LES Table 87 Foreign workers by Salary Band for the period 1 April 2018 to 31 March 2019 111 Table 88 Foreign workers by major occupation for the period 1 April 2018 to 31 March 2019 111 Table 89 Sick leave for January 2018 to December 2018 112 Table 90 Disability leave (Temporary and Permanent) for January 2018 to December 2018 112 Table 91 Annual leave for the period 1 January 2018 to 31 December 2019 113 Table 92 Capped leave for January 2018 to December 2018 113 Table 93 Leave pay-outs for