ANNUAL REPORT: 2013/14 FINANCIAL YEARpmg-assets.s3-website-eu-west-1.amazonaws.com/141119dst.pdf ·...

ANNUAL REPORT: 2013/14 FINANCIAL YEAR

PRESENTATION TO THE SELECT COMMITTEE

19 NOVEMBER 2014

1

POLICY MANDATE

• White Paper (1996)

• National Development Plan

• National Research and Development Strategy

(2002)

• Ten-Year Innovation Plan (2007)

• Various Acts for DST entities

2

To enhance South Africa’s knowledge-generation capacity.

To develop the innovation capacity of the NSI.

To develop appropriate science, technology and innovation human capital.

To build world-class STI infrastructure.

To position South Africa as a strategic international RDI partner and destination.

3

DST STRATEGIC OBJECTIVES

11/24/2014

Outcome 2: A long and healthy life for all South Africans.

Outcome 4: Decent employment through inclusive economic growth.

Outcome 5: A skilled and capable workforce to support an inclusive growth path.

Outcome 6: An efficient, competitive and responsive economic infrastructure network.

Outcome 7: Vibrant, equitable and sustainable rural communities and food security for all.

Outcome 10: Environmental assets and natural resources that are well protected and continually enhanced.

4

DST CONTRIBUTION TO OUTCOMES

The DST Performance Information Report was submitted

to the Auditor-General of South Africa (AGSA) and the

National Treasury by 31 May 2014. The information

reported on the DST Performance Information Report

includes the actual achievements for the reporting

period, in relation to the planned targets and budget as

published in the Strategic Plan, Annual Performance

Plan, and Estimates of National Expenditure.

11/24/2014 5

CONTEXT FOR ANNUAL PERFORMANCE REPORT

DST PROGRAMME STRUCTURE

Research,

Development

and Innovation

Human Capital

and Knowledge

Systems

International

Cooperation and

Resources

Administration

White Paper on

S&T, National

Research &

Development Strategy,

Ten-Year Innovation

Plan

Socio-Economic

Partnerships

6

7

THREE-YEAR PERFORMANCE OVERVIEW (TARGETS ACHIEVED)

62%

64%

66%

68%

70%

72%

74%

76%

78%

2011/12 2012/13 2013/14

67%

71%

77%

8

DST OVERALL PERFORMANCE FOR 2013/14

44(77%)

9(16%)

4(7%) Achieved

Partly achieved

Not achieved

9

PROGRAMME PERFORMANCE

11(100%)

5(38%)

12(86%) 44(77%)

5(38%)

4(100%)

2(13%)

12(80%)

9(16%) 3(24%)

1(7%) 2(14%) 4(7%)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Pgm 1(n=11)

Pgm 2(n=13)

Pgm 3(n=4)

Pgm 4(n=15)

Pgm 5(n=14)

Total(n=57)

Achieved

PartiallyachievedNotachieved

HIGHLIGHTS : PROGRAMME 1 (ADMINISTRATION)

• The Performance Information Management System

(PIMS) was successfully piloted internally and launched

in September 2013.

• All entities’ annual reports and that of the Department

were tabled in Parliament by the required deadlines.

• The Department’s vacancy rate was maintained at an

average rate of six percent over the financial year.

• Over the financial year, it has taken the Department an

average of 70 days to fill its vacancies.

10

HIGHLIGHTS : PROGRAMME 1 (ADMINISTRATION)

• The external quality assurance review of the

Department’s internal audit activity provided an overall

rating of “generally conforms to best practice”.

• The 2013/14 strategic programme and functional risk

profiles were finalised and approved by the Director-

General on the recommendation of the Enterprise Risk

Management Committee.

• On a quarterly basis, the Enterprise Risk Management

Committee exercised oversight on the effectiveness of

the Department’s risk management processes.

11

PERFORMANCE AGAINST APP: PROGRAMME 1 (ADMINISTRATION)

Annual Target

Actual Achievement

Status

Reasons

for

deviation

80% aligned 2014/15 DST

planning documents (strategic

plan, annual performance

plan) submitted to Parliament

by 31 March 2014.

90% aligned 2014 DST ENE

and 2014/15 APP by 31 March

2014

DST APP submitted to Parliament;

and 100% aligned DST APP and

ENE (performance indicators)

Achieved

Approved 2014/15 DST public

entities strategic and annual

performance plans and signed

shareholder compacts by 31

March 2014

The Annual Performance Plans of

entities for the 2014/15 and

shareholder compacts were approved

by the Minister prior to the start of the

2014/15 financial year. They were

tabled in Parliament on 12 March

2014

Achieved

12

Annual Target

Actual Achievement

Status

Challenges /

Reasons for

deviation

Vacancy rate reduced

to seven percent by

31 March 2014

Vacancy rate reduced to six percent by 31

March 2014

Achieved

10 public participation

programmes

conducted by 31

March 2014

A total of 13 public participation

programmes conducted by 31 March 2014

Achieved

13

PERFORMANCE AGAINST APP: PROGRAMME 1 (ADMINISTRATION)

• The Nuclear Technologies in Medicine and Biosciences

Initiative (NTeMBI) partnership in collaboration with the

National Energy Corporation of South Africa (NECSA) was

successfully concluded during the period under review.

• Four other research and development (R&D) initiatives in the

biosciences sector were also supported, namely the Bio-

informatics Service Platform (Technology Platform), the Bio-

catalysis initiative, the Bio-manufacturing initiative and finally

the Bio-safety initiative.

14

HIGHLIGHTS : PROGRAMME 2 (RESEARCH, DEVELOPMENT AND INNOVATION)

Sixteen space and earth-based end-user technology solutions

were provided by the South African National Space Agency

(SANSA), including

• compass calibration services for the South African Air

Force (SAAF) and the general aviation sector;

• space weather bulletins for stakeholders and the general

public, time series applications;

• a forest and carbon tracking portal and geohazard atlas;

• remote-sensing short courses to students and end-users;

• magnetic field maps for the South African National

Defence Force (SANDF);

• Landsat Moving Window Display; and

• an Earth Observation Catalogue.

15

HIGHLIGHTS : PROGRAMME 2 (RESEARCH, DEVELOPMENT AND INNOVATION)

Annual Target

Actual Achievement

Status

Challenges/ Reasons for

deviation

20 research and

development initiatives

in hydrogen and energy

and biosciences related

fields financially and

strategically supported

and which would lead to

publications, patents

and prototypes by 31

March 2014

19 research and

development initiatives in

hydrogen and energy and

biosciences related fields

financially and strategically

supported by 31 March

2014

Partially

achieved

The Solar Centre of

Competence was not

established due to delays in

obtaining data on industry

capability in order to support

the Solar Roadmap. The

Roadmap is a prerequisite

for the establishment of the

Solar Centre of

Competence

Four MeerKAT antennae

designed and installed

as per SKA

specifications by 31

March 2014

One MeerKAT antennae

designed and installed as

per SKA specifications by

31 March 2014

Not

achieved

Project delays by the

contractor have resulted in

the remaining three dishes

not being installed yet. The

contractor has resolved to

have the remaining dished

installed by 31 June 2014

16

PERFORMANCE AGAINST APP: PROGRAMME 2 (RD&I)

Annual Target

Actual Achievement

Status

Challenges / Reasons for

deviation

Three regulations

(frequency spectrum;

electronic Magnetic

Interference and SKA

procedural matters)

gazetted by 28

February 2014

The Minister declared the

Karoo Central Astronomy

Advantage Area and

Sutherland Central

Astronomy Advantage

Areas on 14 March 2014

Not

achieved

The process of concurring

with the draft regulations is

still ongoing with the

Independent

Communications Authority

of South Africa (ICASA)

and National Treasury.

Following the concurrence,

the public consultation

process (Gazetting draft

regulations for public

comments) will be initiated

30 technology- based

products/processes

developed through TIA

investments by 31

March 2014

37 technology-products/

processes have been

developed through TIA

investments

Achieved Additional requests to

support technology- based

products/processes were

received by TIA

17


Annual Target

Actual Achievement

Status

Challenges /

Reasons for

deviation

24 institutions

awarded a rebate for

IP prosecution and

maintenance costs

from the IP Fund by

31 March 2014

The internal IP Fund Committee

met on 6 March 2014 to finalise the

rebate amount for each of the 24

institutions. All the necessary

documentation was also prepared

for approval pending the

availability of funds from the

Department

Not

achieved

A lack of funds

prevented the

immediate award

of rebates to the 24

institutions. The

obligation is rolled

over into the new

financial year

18


• International partnerships enabled more than 2,000

cooperation opportunities for the South African National

System of Innovation.

• DST hosted first BRICS S&T Ministerial Meeting in February

2014.

• New agreements with UK, USA, Finland, Sweden, Norway.

• In November 2013 the DST DG assumed the Presidency of

the Science Commission of the United Nations Educational

Scientific and Cultural Organisation (UNESCO), the first time

ever an African chaired an UNESCO Commission.

19

HIGHLIGHTS : PROGRAMME 3 (INTERNATIONAL COOPERATION AND RESOURCES)

Annual Target

Actual

Achievement

Status

Challenges /

Reasons for

deviation

R300 million foreign STI funds

secured from international partners for

knowledge production, technology

transfer; enhanced innovation, and

STI Human Capital Development

through agreed instruments by 31

March 2014

R436.38m

foreign STI

funds

leveraged by

31 March 2014

Achieved Additional

philanthropic and

development

funding

opportunities arose

during the financial

year

855 South African postgraduate

(master’s, doctoral and postdoctoral)

students participating in international


transfer, enhanced innovation, and

STI human capital development as

agreed with foreign partners by 31

March 2014

896 South

African

postgraduate

students

participating in

international

STI

programmes

Achieved Student numbers

increased due to

increased

opportunities that

became available,

such as the FPO

and ODA

opportunities

20

PERFORMANCE AGAINST APP: PROGRAMME 3 (ICR)

Annual Target

Actual Achievement

Status

Challenges /

Reasons for

deviation

R85.2m of South African and

foreign funds secured for


transfer, enhanced innovation and

STI human capital development in

Africa as agreed with foreign

partners by 31 March 2014

R93m South African and foreign

funds secured Achieved More funds

were secured

under the

NEPAD

Flagship

Programmes

than originally

planned

2,175 foreign participants

(representing the links to global

knowledge and STI networks)

collaborating with South African

participants in knowledge

production, technology transfer,

enhanced innovation, and STI

HCD as agreed with foreign

partners by 31 March 2013

3,985 foreign participants

(representing links to global

knowledge and STI networks)

collaborating with South African

participants in knowledge

production technology transfer,

enhanced innovation and STI

human capital development as

agreed with foreign partners by 31

March 2014

Achieved More foreign

participants in

the EU

programmes

as originally

planned

21

PERFORMANCE AGAINST APP: PROGRAMME 3 (ICR)

• On 7 March 2014, Deputy President announced 54 new

Research Chairs and Chair holders, bringing the total

number of awarded Chairs to 137.

• Five new Centres of Excellence were established (total now

14)

Mathematics and Statistics (Witwatersrand University);

Scientometrics and Science, Technology and Innovation (STI) Policy

(Stellenbosch University);

Food Security (University of the Western Cape & University of

Pretoria)

Integrated Mineral and Energy Resource Analysis (University of

Johannesburg); and

Human Development (Witwatersrand University & University of

Kwazulu Natal)

22

HIGHLIGHTS : PROGRAMME 4 (HUMAN CAPITAL AND KNOWLEDGE SYSTEMS)

23


• More than a million participants in National Science Week

and science festivals etc., more than half from general

public (as opposed to learners).

• Implementation Plan for Palaeosciences strategy, and

Antarctic and Marine Research plans were approved by

DST.

24


• Draft bill for the protection, promotion, development and

management of indigenous knowledge;

• Framework for accreditation and certification of IK

holders and practitioners;

• IKS database and ethics policies;

• IKS Bioprospecting and product development platform

launched;

• IKS Advocacy and Communication Strategy; and

• National Recordal System (NRS).

Annual Target

Actual Achievement

Status

Challenges / Reasons for deviation

700 graduates and

students placed in

DST-funded work

preparation

programmes in

SETI institutions by

31 March 2014

1 010 graduates and students

placed in DST-funded work

preparation programmes in

SETI institutions by 31 March

2014 (568 from the DST-NRF

Internship programme and

442 from the National Youth

Service)

Achieved The distribution of

available funds

across the different

internship support

programmes allowed

more students to be

supported than

originally estimated

60 research

infrastructure grants

awarded as per the

award letters by 31

March 2014

61 research infrastructure

grants were awarded by 31

March 2014

Achieved One additional

research

infrastructure grant

awarded

25

PERFORMANCE AGAINST APP: PROGRAMME 4 (HC&KS)

Annual Target

Actual Achievement

Status

Challenges / Reasons for deviation

3,822

researchers

awarded

research grants

through NRF-

managed

programmes by

31 March 2014

3,569 researchers awarded

research grants through NRF-

managed programmes as

reflected in the NRF project

reports by 31 March 2014

Partially

achieved

Delays in taking up

positions by new

South African

Research Chairs

resulted in a decrease

of grants taken up,

and there were delays

in the take-up of

research grants linked

to the misalignment of

the financial and

academic years

26


Annual Target

Actual Achievement

Status

Reasons for

deviation

Three indigenous

knowledge based

technological

innovations developed

and registered as

intellectual property by

31 March 2014

Three indigenous

knowledge-based

technological innovations

were developed and

registered as intellectual

property by 31 March 2014

Achieved

904 646 participants

(876 250 learners, 28

396 members of the

public) in science

awareness and

engagement

programmes by 31

March 2014

1 108 759 people directly

participated in science

awareness and engagement

programmes by 31 March

2014

Achieved Increased

investment in

television-based

awareness campaign

and inclusion of

STEMI Olympiads

and competitions

contributed to

increased

participation.

27


• Industry Innovation Partnership (IIP) initiative established

– PPP to co-fund research, development and innovation

in key strategic sectors of the economy.

• Sector Innovation Funds (SIF) programme approved as

part of the broader IIP initiative – instrument for co-

investment in industry-wide RDI priorities identified by

industry and which support economic outcomes such as

modernisation, competitiveness, and job creation.

• First Waste Sector Survey conducted with assistance

from DEA:

28

HIGHLIGHTS : PROGRAMME 5 (SOCIO-ECONOMIC PARTNERSHIPS)

• The DST is providing Technology Assistance Packages (TAPs)

to qualifying local manufacturing companies in order to

increase their technological capability and competitiveness.

• This leads to an increased local production and supplier base

which can increase the level of local content (services and

manufacturing) procured as a result of the large-scale public

procurement programmes of mainly Stated-Owned Enterprises.

• HCD: supported 264 master’s and PhD students in designated

niche areas of advanced manufacturing, aerospace, chemicals,

mining, advanced metals and ICTs, and 190 interns in the R&D

of design, manufacturing and product development.

29


• Agreement with the Bill and Melinda Gates Foundation for

piloting various sanitation technology solutions within the 23

district municipalities and rural schools within the Cofimvaba

Technology for Rural Education Development (Tech4RED)

Project. The conclusion of this agreement enables the DST to

access rigorously tested and selected sanitation technologies

within the Bill and Melinda Gates Foundation portfolio.

• The Tech4RED project is producing results that include a

rudimentary decision support tool in support of effective and

efficient implementation of the e-Education White Paper. This

tool is perceived to be crucial in integrating and incorporating

ICT in basic education.

30


• In contributing to improving the capacity of municipalities to

improve sanitation service delivery, the DST has invested in a

project intending to develop a sanitation technology decision

support tool. This tool will assist decision-makers in selecting

appropriate technologies for their contexts.

• The DST received an allocation of R143m towards the Innovation

Partnership for Rural Development. This initiative focuses on

demonstrating and piloting innovative technology solutions to

improve public services within the 26 rural District Municipalities.

The initiative includes a capacity building aspect intended to

enable municipalities to better integrate technology based

solutions in public service delivery.

31


Annual Target

Actual Achievement

Status

Challenges / Reasons for

deviation

400 livelihood opportunities

created, sustained or

improved by 31 March 2014

511 livelihoods created,

sustained or improved by 31

March 2014. Of the total

number of 511 people, 60%

are female and 40% are

male

Achieved The commercial activities of

the Nkowankowa

Demonstration Centre

(NDC) came on stream

sooner than was

anticipated, which resulted

in the creation of

approximately 100 casual

workers during quarter 4.

This number had not been

anticipated at the time of

setting the target

Two additional decision

support systems introduced,

and two existing decision

support systems maintained

and improved (Spatial

Temporal Evidence for

Planning [StepSA] and Risk

and Vulnerability [R&V Atlas])

by 31 March 2014

Two additional decision

support systems for

improving sanitation and

basic education service

delivery introduced; and two

existing decision support

systems (StepSA and R&V

Atlas) maintained by 31

March 2014

Achieved

32

PERFORMANCE AGAINST APP: PROGRAMME 5 (SEP)

Annual Target

Actual Achievement

Status

Challenges / Reasons

for deviation

One knowledge product for

government planning and

service delivery

improvement through

innovation by 31 March

2014

A policy brief on water

services delivery was

published on the DST website

by 31 March 2014

Achieved

200 master’s and doctoral

students fully funded or co-

funded in global change

sciences and earth system

sciences by 31 March

2014

247 master’s and doctoral

students fully funded or co-

funded in global change

sciences and earth system

sciences by 31 March 2014.

These students were

supported under five Global

Change programmes

Achieved The demand for

bursaries is high and

the DST allocation is

therefore distributed in

such a way that most

of the recipients are

co-funded from other

sources e.g.

international partners

and the private sector

33

PERFORMANCE AGAINST APP: PROGRAMME 5 (SEP)

DST Financial Performance

FINANCIAL PERSPECTIVE: 2013/14 BUDGET AND PROGRAMME SPLIT (Rk)

34

Programme 1 R258,926 (4.2%) Programme 2

R1,671,041 (27%)

Programme 3 R141,430

(2.3%)

Programme 4 R2,473,172

(39.9%)

Programme 5 R1,653,586

(26.7%)

Adjusted budget was R6.198 billion

35

Compensation of Employees

R242,856 (3.9%) Goods and

Services R166,920

(2.7%)

Transfer Payments

R5,725,237 (92.4%)

Capital Assets R63,142

(1%)

FINANCIAL PERSPECTIVE: ECONOMIC CLASSIFICATION OF 2013/14 BUDGET (Rk)

• 92.4% of budget is paid out as transfer payments to public

entities and other DST policy implementing partners.

• 48.5% as parliamentary grants to seven DST-managed

public institutions (AISA, ASSAf, CSIR, HSRC, NRF,

SANSA and TIA). The remaining 51.5% is payments for

various projects which are managed through contracts.

• Projected expenditure = R6,198 billion

• Actual expenditure = R6,169 billion

• Surplus = R28,6 million

• 99.5% of budget was spent.

36

FINANCIAL PERSPECTIVE: 2013/14 BUDGET AND TRANSFER PAYMENTS

37

6 1

98

15

5

6 1

98

15

5

6 1

69

48

9

28

66

6

4 9

99

61

0

4 9

99

61

0

4 9

73

31

5

26

29

5

-

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

Budget Plannedexpenditure

Actual expenditure Surplus

4th Quarter 2013/14 fy4th Quarter 2012/13 fy

FINANCIAL PERSPECTIVE: COMPARISON WITH PREVIOUS YEAR

38

CONCLUSION

• Achieved or partially achieved 96% of its targets,

and has shown consistent improvement over

three years.

• Expensed 99.5% of its budget, transferring

92.5% outside the Department.

• Was evaluated 2nd of all Departments in DPME

evaluation of performance management

systems.

39

THANK YOU

ANNUAL REPORT: 2013/14 FINANCIAL YEARpmg-assets.s3-website-eu-west-1.amazonaws.com/141119dst.pdf ·...

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