Road Traffic Infringement Agency

RTIA - Justice in Adjudication

Road Traffic Infringement Agency

Annual Report Presentation to the Portfolio Committee on Transport

Thursday 10 October 2013

By Japh Chuwe

Registrar


Contents

PART I: Strategic Objectives•Strategic Objectives•Performance Summary on Strategic ObjectivesPART II: Performance review: 2012/13 Period •Background•Corporate governance: internal system of control•Human resource overview•Infringements Report: Issuing Authority Performance•Adjudications Performance•Financial Performance•Challenges•Highlights & AchievementsPART III: Annual financial statementsPART IV: Audit outcomesPART V: Conclusion


PART I: Strategic Objectives

PART I:Strategic Objectives


Strategic Objectives

• SO 1: Increase the Agency’s revenue share from outstanding road traffic infringement penalties

• SO 2: Implementation of effective governance processes to achieve an unqualified opinion

• SO 3: Implementation of AARTO communication campaigns

• SO 4: Implementation of effective adjudication processes• SO 5: Comprehensive legislative review• SO 6: Full transfer of AARTO functions to the RTIA


Performance Summary on Strategic Objectives

No.

Strategic objective Performance Reason/Constraints

1 Increase the Agency revenue share from outstanding road traffic infringement penalties

Achieved•Projected budget – R50 m•Collected – R49 m•Increased from R28.5 m previous year (2011/12)

• Non-rollout of AARTO

• Extended delay in mandate enforcement

2 Implement effective governance processes to achieve an unqualified opinion

Achieved•(Unqualified opinion for the 2011/12 period)

•Another unqualified opinion for the 2012/13 period

None

3 Implement AARTO communication campaigns

Partly achieved•Communication & educational materials distributed through partnerships with DoT & agencies•Reactive public communication

• Lack of funding limited audience target reach


Performance Summary on Strategic ObjectivesNo.


4 Implement effective adjudications processes

Achieved•Backlog representations eliminated•Adjudications framework updated•100% adjudicated within timeframes•35,552 representations received•34,869 representations were adjudicated. •A balance of 683 representations carried over to the 1st quarter of 2013/14 financial year.

None

5 Comprehensive legislative review process

Achieved •Draft Amendment Bill published for comments in Gazette 36173 dated 20 February 2013 •Draft Regulations Amendments intensively discussed with stakeholders

None


Performance Summary on Strategic ObjectivesNo.


6 Full transfer of the AARTO functions to the RTIA

Not Achieved•AARTO Bank accounts not transferred •RTIA not in control of all functions and accounts•RTIA and IAs not receiving their revenue portion timeously •Ineffective dispense of mandate, especially revenue collection from IAs

• RTMC lodged objection on the transfer of AARTO functions and accounts to RTIA

• Delayed process of transfer

Note: This objective has subsequently been achieved and is recognised as a significant event in the current financial year.

The transfer of the functions and accounts will be achieved with effect from 1 October 2013


PART II:

PART II:Performance review

2012/13 Period


Background

• The Agency started the year with a staff of 22 and increased its complement by 16 (72%) to a total of 38• A government grant of R5m was allocated, with an additional virement of R14m towards the end of the financial year• The board continued operating, albeit stretched due to limited number of members, exacerbated by 1 resignation• Management continued to be overly stretched due to insufficient staff compliment


Corporate governance: Internal system of control

• The Agency committed to implementing processes and systems for ensuring compliance to governance prescripts in the AARTO Act and PFMA

• Implemented pro-active measures to address deficiencies and review progress on quarterly basis

• Imbedded audit and verification measures in the business process, in the absence of an internal audit unit


Human resource overview

• Increased staff compliment from 22 to 38 by end of the financial period (16, being 72% but less by 37 being 49% compared to approved target of 75)

• 2 managers transferred from RTMC• 8 staff appointed for data clean-up of the NCR• ROs increased to 8


Human resource overview : Staff Profile

Level African Coloured Indian White Total Registrar 1 0 0 0 1 Deputy Registrar 0 1 0 0 1 Senior Management 6 0 0 1 7 Middle Management 4 0 0 1 5 Specialists 7 2 0 0 9 Junior staff 13 0 0 0 13 General workers 2 0 0 0 2 Total Staff 33 3 0 2 38 % 86.84% 7.89% 0.00% 5.26% 100.00%


Infringements report : Issuing Authority performance

Month Grand

Captured JMPD TMPD GDOCS RTMC Total Apr 12 84 660 73 990 9 626 5 807 174 083

May 12 134 016 104 453 8 100 6 885 253 454

Jun 12 102 340 71 419 5 833 3 768 183 360

Jul 12 114 191 54 637 6 241 4 335 179 404

Aug 12 115 622 83 158 7 020 4 197 209 997

Sep 12 175 183 60 491 5 554 3 719 244 947

Oct 12 254 307 70 369 6 704 5 178 336 558

Nov 12 206 098 70 351 5 837 4 857 287 143

Dec 12 190 788 44 354 4 245 4 787 244 174

Jan 13 490 200 93 094 6 958 5 551 595 803

Feb 13 496 501 71 507 6 793 7 728 582 529

Mar 13 465 720 71 346 6 654 4 753 548 473

Total 2 829 626 869 169 79 565 61 565 3 839 925

Number of all Notices captured per Issuing Authority

Issuing Authority



Year Grand

Captured JMPD TMPD GDOCS RTMC Total2011-2012 870 886 799 168 72 386 45 077 1 787 517

2012-2013 2 829 626 869 169 79 565 61 565 3 839 925

Change 1 958 740 70 001 7 179 16 488 2 052 408

% Change 224.91% 8.76% 9.92% 36.58% 114.82%

Number of All Notices captured per Issuing Authority

Issuing Authority

Number of infringement notices captured in comparison with previous year



Month

CapturedAARTO 01 AARTO 03 AARTO 31 Operator

infringementsNominations

ServedOffences Total

Apr 12 74 058 65 197 24 291 8 486 2 012 39 174 083

May 12 92 363 103 880 43 724 10 002 3 395 90 253 454

Jun 12 66 230 73 899 33 742 7 212 2 220 57 183 360

Jul 12 76 585 61 707 30 268 8 382 2 398 64 179 404

Aug 12 77 764 88 172 33 337 8 477 2 202 45 209 997

Sep 12 76 872 93 986 62 342 7 991 3 651 105 244 947

Oct 12 86 217 147 209 90 942 7 614 4 517 59 336 558

Nov 12 87 465 115 374 70 513 7 698 6 063 30 287 143

Dec 12 54 558 129 059 50 755 4 982 4 801 19 244 174

Jan 13 93 255 421 712 69 069 7 723 3 980 64 595 803

Feb 13 71 069 413 789 85 969 7 341 4 260 101 582 529

Mar 13 68 193 383 059 86 661 6 525 3 978 57 548 473

Total 924 629 2 097 043 681 613 92 433 43 477 730 3 839 925

Number of Notices Captured : All Issuing Authorities

Number of notices captured per category



Number of infringement notices per category captured in comparison with previous year

Year

CapturedAARTO 01 AARTO 03 AARTO 31 Operator

infringementsNominations

ServedOffences Total

2011-2012 838 034 609 356 228 960 100 118 10 962 87 1 787 517

2012-2013 924 629 2 097 043 681 613 92 433 43 477 730 3 839 925

Change 86 595 1 487 687 452 653 -7 685 32 515 643 2 052 408

% Change 10.33% 244.14% 197.70% -7.68% 296.62% 739.08% 114.82%

Number of Notices Captured : All Issuing Authorities

19




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Apr 12 68 882 6 145 450 14 107 580 271 83 648 174 083

May 12 111 055 7 647 662 24 160 994 458 108 478 253 454

Jun 12 81 671 5 835 543 15 950 740 310 78 311 183 360

Jul 12 81 127 10 732 628 18 111 1 818 859 66 129 179 404

Aug 12 127 807 25 191 1 039 34 541 4 798 2 049 14 572 209 997

Sep 12 130 851 24 225 1 308 40 620 5 213 2 115 40 615 244 947

Oct 12 192 540 25 855 1 492 53 307 5 807 2 569 54 988 336 558

Nov 12 162 928 26 033 1 538 48 287 6 183 2 672 39 502 287 143

Dec 12 145 900 21 168 1 110 37 969 4 429 1 768 31 830 244 174

Jan 13 403 905 48 641 3 015 76 356 6 107 2 699 55 080 595 803

Feb 13 379 738 46 038 2 985 77 635 6 323 2 612 67 198 582 529

Mar 13 368 939 38 963 2 841 70 861 5 364 2 419 59 086 548 473

Total 2 255 343 286 473 17 611 511 904 48 356 20 801 699 437 3 839 925

% 58.73% 7.46% 0.46% 13.33% 1.26% 0.54% 18.21% 100.00%

Number of Infringement Notices issued per Vehicle Category : All IA's



2011 / 2012 2012 / 2013 Change % Change

Vehicle registration & licencing 112 413 165 588 53 175 47%

Vehicle number plates 11 304 12 076 772 7%

Learner & driving licences 68 578 71 624 3 046 4%

Professional driving permits 36 391 34 534 -1 857 -5%

Vehicle roadworthiness - general 71 367 86 610 15 243 21%

Vehicle - Brakes 13 680 14 674 994 7%

Vehicle - Lights 45 078 59 017 13 939 31%

Vehicle - Steering mechanism 386 384 -2 -1%

Vehicle - Tyres 40 481 46 658 6 177 15%

Seatbelts 158 696 166 220 7 524 5%

Loads : Passenger tspt vehicles 7 352 8 698 1 346 18%

Vehicle overload 2 705 3 424 719 27%

Passengers on goods vehicles 3 043 4 375 1 332 44%

Passenger carrying vehicles 13 754 10 715 -3 039 -22%

Operator fitness 102 329 95 162 -7 167 -7%

Dangerous goods 338 368 30 9%

Road signs, signals & markings 214 478 235 627 21 149 10%

Rules of the road & driving signals 144 077 295 905 151 828 105%

Driving under the influence 2 598 3 153 555 21%

Other 81 070 348 090 267 020 329%

Bylaws 2 278 738 -1 540 -68%

Total 1 132 396 1 663 640 531 244 47%

Number of Notices captured per Infringement Category

Infringements Category All Issuing Authorities


Analysis of infringement performance

• Johannesburg accounts for 73.7% of captured infringements

• Tshwane accounts for 22.6% of captured infringements• Gauteng Community Safety accounts for 2.1% of captured

infringements• RTMC accounts for 1.6% of captured infringements

• AARTO 01 (handwritten) infringements account for 24% of all notices

• AARTO 03 (speed) infringements account for 58% of all notices

• AARTO 31 (parking) infringements account for 18% of all notices


Other Selective Options – Court option

JMPD TMPD GDoCS RTMC Total JMPD TMPD GDoCS RTMC Total

Apr 7 347 17 0 371 340 3 992 155 50 4 537

May 12 606 18 0 636 590 4 255 196 52 5 093

Jun 60 1 007 9 0 1 076 1 005 5 003 174 66 6 248

Jul 62 1 304 30 0 1 396 405 4 895 182 79 5 561

Aug 49 1 545 71 0 1 665 800 6 057 243 67 7 167

Sep 4 950 41 0 995 736 2 599 217 98 3 650

Oct 2 931 9 0 942 749 5 963 245 101 7 058

Nov 8 1 373 28 2 1 411 1 029 5 474 314 93 6 910

Dec 2 1 749 50 3 1 804 574 4 294 217 94 5 179

Jan 29 3 686 116 17 3 848 1 607 6 570 331 115 8 623

Feb 13 2 828 64 5 2 910 985 5 357 278 98 6 718

Mar 71 5 673 188 23 5 955 452 3 769 168 84 4 473

Total 319 21 999 641 50 23 009 9 272 58 228 2 720 997 71 217

% of Total 1.39% 95.61% 2.79% 0.22% 100.00% 13.02% 81.76% 3.82% 1.40% 100.00%

Number of Elections to be Tried in Court per Issuing AuthorityMonth

captured

2011-2012 2012-2013


Other Selective Options – Court option


Other Selective Options - Representations

Month JMPD TMPD GDoCS RTMC All IA's

Apr 0.65% 1.81% 1.23% 1.38% 1.25%

May 0.58% 2.36% 1.81% 1.82% 1.29%

Jun 1.10% 2.42% 1.63% 2.73% 1.70%

Jul 1.30% 3.02% 1.45% 2.70% 1.95%

Aug 1.82% 2.36% 1.28% 2.03% 2.06%

Sep 1.20% 2.86% 1.72% 1.29% 1.85%

Oct 1.26% 2.78% 1.50% 0.91% 1.67%

Nov 0.85% 3.94% 1.51% 0.98% 1.73%

Dec 0.22% 1.63% 1.13% 0.38% 0.58%

Jan 0.34% 1.90% 1.46% 0.95% 0.70%

Feb 0.37% 2.65% 1.11% 0.93% 0.84%

Mar 0.29% 2.39% 1.47% 1.09% 0.75%Average 0.67% 2.51% 1.44% 1.19% 1.24%

% of Notices on which Representations were submitted


Other Selective Options - Representations


Adjudications performance



Month Adjudicated

Number Adjudicated

Number Successful

% SuccessfulNumber

Unsuccessful% Unsuccessful

Apr 12 2 213 822 37.14% 1 391 62.86%

May 12 2 661 1 172 44.04% 1 489 55.96%

Jun 12 2 661 1 123 42.20% 1 538 57.80%

Jul 12 3 680 1 512 41.09% 2 168 58.91%

Aug 12 4 311 1 537 35.65% 2 774 64.35%

Sep 12 4 086 1 889 46.23% 2 197 53.77%

Oct 12 4 346 2 043 47.01% 2 303 52.99%

Nov 12 1 748 560 32.04% 1 188 67.96%

Dec 12 2 004 1 121 55.94% 883 44.06%

Jan 13 1 891 916 48.44% 975 51.56%

Feb 13 2 306 1 088 47.18% 1 218 52.82%

Mar 13 2 962 1 478 49.90% 1 484 50.10%

Total 34 869 15 261 43.77% 19 608 56.23%

Number of Representations Adjudicated : 2012-2013


Year AdjudicatedNumber

AdjudicatedNumber

Successful% Sucessful

Number Unsuccessful

% Unsuccessful

2011-2012 34 410 25 292 73.50% 9 118 26.50%

2012-2013 34 869 15 261 43.77% 19 608 56.23%

Change 459 -10 031 - 10 490 -

% Change 1.33% -39.66% - 115.05% -

Number of Representations Adjudicated


Number of Representations adjudicated in comparison with previous year



Main reasons for Successful Representations %Infringer given benefit of doubt 35.37%SAPO page not updated - cannot confirm posting & collection of notice 35.36%Supporting evidence accompanying representation provided 3.75%licencing of vehicles - disc not affixed to vehicle 3.67%licencing of drivers - licence not carried on person 3.32%Infringement description is vague and incomplete 3.15%Particulars of the vehicle incorrectly recorded 2.25%Police members with acceptable documentary evidence 0.87%Operator charges - applicable to operator not driver 0.27%Particulars of the infringer incorrectly recorded 0.23%PrPD - not carried on person 0.08%Members of Diplomatic community 0.03%



Main reasons for Unsuccessful Representations %Infringer does not dispute infringement facts 21.15%No supporting reasons provided disputing the infringement 18.67%Infringer's explanation not probable 10.22%Representation not made in the prescribed form or manner 6.96%Infringer's explanation based on financial circumstances 6.74%Details other than the infringement in dispute 6.22%Infringer's explanation without acceptable evidence 6.17%Police official without acceptable documentation 4.97%Insufficient evidence to corroborate the explanation 4.47%Application submitted outside the presicribed period 0.37%Diplomatic immunity not confirmed by supporting documents 0.00%


Month 2011-2012 2012-2013 Change % Change

Apr 163 557 121 629 -41 928 -25.64%May 22 318 142 732 120 414 539.54%Jun 71 721 143 562 71 841 100.17%Jul 36 620 61 543 24 923 68.06%Aug 38 613 0 - -Sep 86 172 0 - -Oct 97 972 0 - -Nov 127 069 0 - -Dec 98 579 0 - -Jan 100 475 0 - -Feb 83 867 0 - -Mar 112 463 0 - -Total 1 039 426 469 466 -569 960 -54.83%

Number of Courtesy Letters Served

Agency notices: Courtesy letters


Agency notices: Enforcement Orders

Month 2011-2012 2012-2013 Change % Change

Apr 0 0 0 -May 0 19 233 19 233 -Jun 0 58 389 58 389 -Jul 0 12 589 12 589 -Aug 0 1 - -Sep 0 0 - -Oct 0 0 - -Nov 0 2 - -Dec 0 0 - -Jan 3 102 0 - -Feb 6 724 0 - -Mar 0 0 - -Total 9 826 90 214 80 388 818.12%

Number of Enforcement Orders Served


Agency notices : Others

Month 2011-2012 2012-2013

Apr 0

May 1

Jun 1 2

Jul 1 4

Aug 168

Sep 1 446

Oct 42

Nov 3

Dec 0

Jan 16

Feb 198

Mar 0

Total 3 880

Number of Application Results for Instalment Payments


Financial performance : Payments made

Payments made within 1st phase (<32 days) whilst the infringement was still in the discounted stage. Infringer pays 50% which all goes to issuing authorities.

Payments made in 2nd phase (between 33 and 64 days). IA’s receive 50% and RTIA 50% (discount now forfeited)

Payments made in 3rd phase (after 64 days). IA’s receive 50% and RTIA 50%

Payment Time Frames


Month

Number of

Infringements

captured

Number of

Infringements

paid within 32

days

Number of

Infringements

paid from 33

to 64 days

Number of

Infringements

paid after 64

days

Total number

of

Infringements

paid

Number of

Infringements

outstanding

Apr 12 174 083 8 824 5 024 15 833 29 681 144 402May 12 253 454 10 063 6 842 16 729 33 634 219 820Jun 12 183 360 9 578 7 232 17 967 34 777 148 583Jul 12 179 404 10 522 9 583 29 662 49 767 129 637Aug 12 209 997 10 282 6 316 29 175 45 773 164 224Sep 12 244 947 8 492 3 738 18 079 30 309 214 638Oct 12 336 558 11 360 6 924 20 432 38 716 297 842Nov 12 287 143 13 993 8 809 22 097 44 899 242 244Dec 12 244 174 11 244 7 499 20 474 39 217 204 957Jan 13 595 803 12 494 7 530 18 028 38 052 557 751Feb 13 582 529 20 369 10 843 18 863 50 075 532 454Mar 13 548 473 14 175 11 893 20 833 46 901 501 572

Total 3 839 925 141 396 92 233 248 172 481 801 3 358 124

Financial performance : Number of Payments made


Financial performance : Value of Payments made

Month

Value of

Infringements

captured R mil

Value of

Infringements

paid within 32

days R mil

Value of

Infringements

paid from 33-

64 days R mil

Value of

Infringements

paid after 64

days R mil

Total Value of

Infringements

paid R mil

Value of

Infringements

outstanding

R mil

Apr 12 R 110.7 R 2.1 R 1.3 R 4.8 R 8.1 R 102.6May 12 R 162.0 R 2.5 R 1.8 R 5.1 R 9.4 R 152.6Jun 12 R 118.2 R 2.5 R 2.1 R 5.3 R 10.0 R 108.2Jul 12 R 118.3 R 2.9 R 3.3 R 8.7 R 14.9 R 103.4Aug 12 R 134.1 R 2.8 R 2.6 R 8.9 R 14.3 R 119.8Sep 12 R 127.8 R 2.5 R 1.6 R 5.6 R 9.6 R 118.2Oct 12 R 163.2 R 2.9 R 2.7 R 6.6 R 12.2 R 151.1Nov 12 R 143.1 R 3.4 R 2.9 R 7.5 R 13.8 R 129.4Dec 12 R 118.6 R 2.7 R 2.3 R 6.6 R 11.6 R 107.0Jan 13 R 255.1 R 2.8 R 2.4 R 6.1 R 11.3 R 243.8Feb 13 R 244.1 R 4.2 R 2.8 R 6.5 R 13.6 R 230.5Mar 13 R 229.8 R 3.1 R 3.3 R 8.1 R 14.5 R 215.3

Total R 1 925.1 R 34.3 R 29.0 R 79.9 R 143.2 R 1 781.9


Financial performance : Payments made

Month

Captured

Number of

Infringements

Captured

Penalty Value of

Infringements

Captured (Rand)

Number of

Infringements

Paid

Total Amount

Paid

(Rand)

Percentage of

Infringements

Paid

(Number)

Percentage of

Infringements

Paid

(Rand)

2011-2012 1 787 517 R 980 500 950.00 186 993 R 86 553 514.98 10.46% 8.83%

2012-2013 3 839 925 R 1 925 064 500.00 481 801 R 143 185 321.01 12.55% 7.44%

Change 2 052 408 R 944 563 550.00 294 808 R 56 631 806.03 2.09% -1.39%

% Change 114.82% 96.33% 157.66% 65.43% - -

All Notices and Payments Captured

Number of total infringement notices paid in comparison with previous year


Month

Number of

Infringements

captured

Value of

Infringements

captured R

mil

Number of

Infringements

paid

Value of

Infringements

paid

R mil

Number of

Infringements

outstanding

Value of

Infringements

outstanding

R mil

Apr 12 174 083 R 110.7 29 681 R 8.1 144 402 R 102.6May 12 253 454 R 162.0 33 634 R 9.4 219 820 R 152.6Jun 12 183 360 R 118.2 34 777 R 10.0 148 583 R 108.2Jul 12 179 404 R 118.3 49 767 R 14.9 129 637 R 103.4Aug 12 209 997 R 134.1 45 773 R 14.3 164 224 R 119.8Sep 12 244 947 R 127.8 30 309 R 9.6 214 638 R 118.2Oct 12 336 558 R 163.2 38 716 R 12.2 297 842 R 151.1Nov 12 287 143 R 143.1 44 899 R 13.8 242 244 R 129.4Dec 12 244 174 R 118.6 39 217 R 11.6 204 957 R 107.0Jan 13 595 803 R 255.1 38 052 R 11.3 557 751 R 243.8Feb 13 582 529 R 244.1 50 075 R 13.6 532 454 R 230.5Mar 13 548 473 R 229.8 46 901 R 14.5 501 572 R 215.3

Total 3 839 925 R 1 925.1 481 801 R 143.2 3 358 124 R 1 781.9

Financial performance :


Financial performance : Monthly % payments made

The higher payments during June & July was due to the serving of Enforcement Orders


Month

%

Infringements

paid within 32

days

%

Infringements

paid from 33 to

64 days

%

Infringements

paid after 64

days

Total % of

Infringements

paid

% of

Infringements

outstanding

Apr 12 5.07% 2.89% 9.10% 17.05% 82.95%May 12 3.97% 2.70% 6.60% 13.27% 86.73%Jun 12 5.22% 3.94% 9.80% 18.97% 81.03%Jul 12 5.86% 5.34% 16.53% 27.74% 72.26%Aug 12 4.90% 3.01% 13.89% 21.80% 78.20%Sep 12 3.47% 1.53% 7.38% 12.37% 87.63%Oct 12 3.38% 2.06% 6.07% 11.50% 88.50%Nov 12 4.87% 3.07% 7.70% 15.64% 84.36%Dec 12 4.60% 3.07% 8.39% 16.06% 83.94%Jan 13 2.10% 1.26% 3.03% 6.39% 93.61%Feb 13 3.50% 1.86% 3.24% 8.60% 91.40%Mar 13 2.58% 2.17% 3.80% 8.55% 91.45%

Total 3.68% 2.40% 6.46% 12.55% 87.45%

Financial performance : % payments made


Challenges

• Legislative inefficiencies• Inadequate funding - IT infrastructure - Staffing - Limited communication & education• Mandate conflicts on institutional arrangements• Governance (insufficient board membership)


Highlights & achievements

• Audit Performance - 2nd consecutive unqualified opinion• Legislative amendments - Amendment Bill published for comment in Gazette 36173 dated 20 February 2013• Institutional capacitation - cautious & strategic recruitment - establishment of internal audit, IT & debt collection units• Marketing & education - leveraged on the DoT and other entities for communications


PART III: Annual financial statements

PART III: Annual Financial Statements


Highlights: Financial Performance

2012/13 2011/12Revenue 68 011 052 45 579 863 Infringement fees 49 011 052 28 579 863 Grant received 19 000 000 17 000 000

Expenses (61 408 113) (34 467 653)Impairment loss on receivables (31 164 022) Employment costs (10 538 186) (2 259 932)Other operating expenses (19 451 088) (32 058 909)Depreciation of property, plant and equipment (225 103) (105 719)Amortisation of intangible assets (22 819) (16 298)Assets written off (6 894) (26 795)

Surplus from operations 6 602 939 11 112 210


Highlights: Financial Position

2013/12 2012/11AssetsNon- Current Assets 643 257 750 779

Property, plant and equipment 608 934 693 637 Intangible asset 34 323 57 142

Current assets 14 631 608 6 850 327

Trade and other receivables 1 428 816 6 850 281

Cash and cash equivalents 13 202 792 46

Total Assets 15 274 865 7 601 106


Highlights: Financial Position

2013/12 2012/11Net Assets 12 890 676 6 280 802 Accumulated surplus / (deficit) 12 890 676 6 280 802

Current liabilities 2 384 189 1 320 304 Trade and other payables 2 384 189 1 320 304

Total net assets and liabilities 15 274 866 7 601 106


Financial Performance 2012/13

• Revenue earned increased significantly by 71% from R28.5 million to R49 million.

• The year’s overall performance was significantly lower than expected due to the impairment of debtors of R31 million. Without the impairment the net surplus would have been 240% above last year’s performance of R11.1 million.

• Staff costs have increased significantly as the Agency skills up with the best of breed employees that will see it into its next phase of National roll-out.

• The agency was in a much stronger net asset position as at year end with total assets exceeding liabilities 6.4 times.


PART IV: Audit Outcomes

PART IV:Audit Outcomes


Improved Audit Performance

• The Agency achieved an unqualified audit opinion with an emphasis of matter paragraph in 2012/2013 for the second time in a row.

• The number of findings also decreased from the previous year as a result of management's commitment to compliant reporting.


Audit outcomes

Audit opinion Basis of opinion

Unqualified audit opinion

The financial statements present fairly, in all material respects, the financial position of the Road Traffic Infringement Agency as at 31 March 2013, and its financial performance and cash flows for the year then ended, in accordance with SA Standards of GRAP and the PFMA.

Emphasis of matter

Material impairment

As disclosed in note 5 to the financial statements, a material impairment to the amount of R31 164 022 was incurred as a result of the assessment made on the cash recoverability of the accounts receivable relating to the AARTO management process.


Audit outcomes

Report on other legal & regulatory requirements

Predetermined objectives

Some objectives, performance indicators and targets not consistent with approved annual performance agreement and not approved by the executive authority.

Achievement of planned targets

33% of total planned targets were not achieved during the year under review. This was mainly due to the fact that indicators and targets were not suitably developed during the strategic planning process.

Courtesy and Enforcement letters not issued

The agency did not issue and serve any courtesy and enforcement letters to traffic infringers for the period September 2012 to March 2013 in contravention of the AARTO Act.

Material misstatements

Material misstatements identified by the AGSA were subsequently corrected.


Audit Certification

• Audit committee in place and fully operational during the period under review

• AG invited and participated in meetings• Reviewed the effectiveness of internal control

systems• Reviewed compliance to legal & regulatory

provisions, particularly to the AARTO Act & PFMA• Reviewed and adopted a risk management

framework


Audit Certification

• Adopted a going concern premise for the Agency• Reviewed & discussed the AG’s management letter• Reviewed & discussed the AFS & the AG’s report &

audit opinion• Reviewed the appropriateness of accounting policies &

practises• Reviewed significant adjustments resulting from the

audit• Satisfied with the Annual Report & recommended

Board approval


PART VIII: Conclusion

PART V:Conclusion


Conclusion

In spite of the difficulties experienced, the Agency is fully committed to the achievement of its mandate and believes it will soon be one of the most effective performers under the Department!


Conclusion

Thank you!

Road Traffic Infringement Agency

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