Cross-Border Road Transport Agency

Budget presentation16 March 2006

SINETHEMBA MNGQIBISA

1

Outline of presentation

• Mandate

• Status quo report

• Service delivery strategy

• Financial sustainability

• Budget 2006/07

• Way Forward

2

Mandate 

* To improve the flow of road and freight and passenger transport in the region.* To liberalise market access and to introduce regulated competition in respect of cross-border road transport industry.* To reduce operational constraints for the cross-border road transport industry.* To enforce the law in cross-border road transport industry in terms of safety, security, reliability and quality.* Provision of training and development of SMME’s in the cross-border road transport industry.

3

Status Quo

Strategic direction of the organisation not aligned to mandate

• Provincial co-operation on issuing of permits • Interpretation of law of jurisdiction between provinces and CBRTA

Organisational structure not aligned to mandate• Human resource capacity limited

Board and CEO Management

• Revenue less than expenses• Manual Support Systems and processes • Lack of financial reporting to parliament

Annual report non-compliance

4

Service delivery strategy

• Continuous improvement of our safety and economic regulatory environment in the region

• Become a performance based service provider

• Maintain long term financial sustainability

• Improve internal controls

• Improve facilitation and co-operation between provinces, region and other agencies

• Anti-corruption strategy

• Implement a Human resource strategy (reduce percentage personnel/income ratio)

5

Financial sustainabilityBudget 2006/07 with Government Grant

Item Budget

‘000

Forecast

06/07

‘000

Forecast

07/08

‘000

Forecast

08/09

‘000

Income 35,100 33,838 36,750 41,300

Permit fees 25,200 25,200 26,000 30,000

Penalty income 6,000 4,738 6,200 6,500

Other income 3,900 3,900 4,550 4,800

Expenditure (34,972) (35,772) (36,731) (38,341)

Revenue lost (fraud/Provinces issuing permits)

(20,000) (14,000) (7,000)

Operations (10,919) (10,776) (11,355) (11,696)

Salaries (24,053) (24,996) (25,376) (26,645)

6

Income budget for 2006/07

72%

17%

11%

permit fees

penalty income

other income

Expenditure for the CBRTA 06/07

31%

69%

operations

salaries

Financial sustainabilityBudget 2006/07 without Government Grant

Item Budget Forecast

06/07

Forecast

07/08

Forecast

08/09

Income 31,600 30,338 32,750 36,800

Permit fees 25,200 25,200 26,000 30,000

Penalty income 6,000 4,738 6,200 6,500

Other income 400 400 550 300

Expenditure (34,992) (35,772) (36,731) (38,341)

Revenue lost (fraud/Provinces)

(20,000) (20,000) (14,000) (7,000)

Operations (10,919) (10,776) (11,355) (11,696)

Salaries (24,053) (24,996) (25,376) (26,645)

7

Financial sustainabilityStatistics

Item Budget Forecast

06/07

Percentage

increase/decrease

Income 35,100 33,838 4%

Permit fees 25,200 25,200 0%

Penalty income 6,000 4,738 21%

Other income 3,900 3,900 0%

Expenditure (34,972) (35,772) 2%

Revenue lost (fraud) (20,000) (14,000) 30%

Labour cost (24,053) (24,996) 4%

Operational expenses (10,919) (10,776) 1%

Depreciation (504) (504) 0%

8

Financial sustainabilityCash Flow 06/07

Item Budget Forecast

06/07

Forecast

07/08

Forecast

08/09

Income 35,100 33,838 36,750 41,300

Permit fees 25,200 25,200 26,000 30,000

Penalty income 6,000 4,738 6,200 6,500

Other income 3,900 3,900 4,550 4,800

Expenditure (34,972) (35,772) (36,731) (38,341)

Labour cost (24,053) (24,996) (25,376) (26,645)

Operational expenses

(10,919) (10,776) (11,355) (11,696)

Depreciation (504) (504) (480) (456)

9

Way Forward

Key strategic interventions

Short term Long term

Financial stability 31 March 2009

Provincial

co-operation

31 March 2006

Electronic processes

31 March 2007

Human resource strategy

31 March 2007

Fraud prevention strategy

30 May 2006

Internal controls 31 March 2007

10

Thank you

Questions !

11