D S T F I R S T Q U A R T E R P E R F O R M A N C E A N D F I N A N C I A L R E P O R T ( A P R I L T O J U N E 2018)
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1 D S T F I R S T Q U A R T E R P E R F O R M A N C E A N D F I N A N C I A L R E P O R T ( A P R I L T O J U N E 2018) Tommy Makhode Date: 12 September 2018 Portfolio Committee on Science and Technology 9/10/2018 1
2 Presentation outline Purpose Backgrounds Overall Performance Information Performance Per DST s Strategic Goals Performance Per DST s Programmes Financial Performance 2
3 Purpose To present the DST s First Quarter Performance and Financial Report for the financial year. Review of the 2015/16 Annual Performance Plan implementation 3
4 DST s Policy mandate (1) The Department of Science and Technology (DST) derives its mandate from the 1996 White Paper on Science and Technology, which introduced the concept of a National System of Innovation. The NSI remains an ideal for which South Africa continues to strive. It is an enabling framework for science, technology and innovation (STI). NSI can be understood as a set of functioning institutions, organisations and policies that interact constructively in the pursuit of a common set of social and economic goals and objectives, seeking to promote change through the introduction of innovations. 4
5 DST s Policy Mandate (2) The DST, as the custodial coordinator for the development of the NSI, influences this system through key strategies such as the National Research and Development Strategy (NRDS) and the Ten-Year Innovation Plan (TYIP). The latter, particularly, seeks to contribute to the transformation of the South African economy from a resource-based into a knowledge-based economy, in which the production and dissemination of knowledge will lead to economic benefits and enrich all fields of human endeavor. In this regard, the measure of success will be the level to which science, technology and innovation (STI) play a driving role in enhancing productivity, economic growth and socioeconomic development. 5
6 DST s Vision Vision Increased well-being and prosperity through science, technology and innovation 6
7 DST s Mission Statement (4) Mission To provide leadership, and enabling environment, and resources for science, technology and innovation in support of South Africa s development 7
8 The DST s contributions to Government Outcomes The Department contributes to and reports on the following MTSF outcomes: Outcome 3: All people in South Africa are and feel safe. 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. 8
9 DST s Strategic outcome-oriented goals A responsive, coordinated and efficient NSI. Increased knowledge generation. Human capital development. Increases knowledge generation. Using knowledge for Economic development. 9
10 DST S CONTRIBUTION TO THE STRATEGIC OUTCOME-ORIENTED GOALS 9/10/
11 Overall Performance Information (1) In conducting the quarterly performance review, the DST followed the 2018/19 DPME Reporting Guidelines, which amongst other things introduced: That the Departments should finalise and submit Exco approved performance reports to oversight bodies 60 days after the end of each quarter. Prior to the Executive Committees, programmes discuss quarterly progress on the set targets, and identify corrective actions where necessary. Ensure that in-year monitoring reports serve as management oversight and decision-making tool; and It for this reason that the Minister wrote a letter to the Chairperson informing her about the new reporting requirements (new reporting schedule attached). 11
12 Overall Performance Information (2) As per the PFMA and National Treasury prescripts, the DST was involved in the audit process for the financial year in the period under review. Figure 1 below depicts the summary of AGSA findings: 12
13 Overall Performance Information (3) From the figure above it can be seen that the Department had decreased it s findings relating to performance information (Detailed audit outcomes will be presented during the presentation of the DST annual Report). This can be attributed to the executive interventions to improve the quality of reported information. For Example: The introduction of the roles and responsibilities framework; and The strict internal controls over data management. These measures have had a positive impact on the DST quarter one (1) performance. 13
14 DST Quarter One Performance (1) Figure 2 below illustrates the performance of the Department of Science and Technology (DST) from April to June During the period under review, the total number of planned output targets was (n= 22). The Department achieved 86% (19) of the planned output targets and 14% (3) of the planned output targets were not achieved. 14
15 DST Quarter One Performance (2) Figure 2: DST s overall final first quarter performance overview: (Total number of planned output targets, n= 22) 3 (14%) 19 (86%) Achieved Not Achieved 15
16 A Responsive, Coordinated and Efficient NSI (1) In pursuit of this goal, the following can be reported for the period under review: The DST executive provided guidance to programmes on the developing of the new DST Strategic Plan, Amongst others the department reviewed its Strategic Plan and contribution to the Medium Term Strategic Framework (MTSF), with a view to start developing a new Strategic Plan. The first draft 2019/20 APP has been submitted to National Treasury, Department of Planning, Monitoring and Evaluation and Auditor-General on 31 August 2018 following consideration and approval by the Director-General and the Minister. The DST continues to provide support to the Economic Sectors, Employment and Infrastructure Development (ESEID) cluster and Government s Nine-Point Plan project management team. During the reporting period, the government programme of action (POA) report for quarter four was also finalised and submitted. 9/10/
17 A Responsive, Coordinated and Efficient NSI (1) During the period under review, the DST approved the following compliance documents: 2018/19 DST Annual Performance Plan; 2018/19 FinancialYear Internal Audit coverage plan; The DST Three year DST Evaluation Plan; The 2018/19 FinancialYear Strategic Risk Plan; 2018/19 FinancialYear DST Business Continuity Implementation Plan; and 2018/19 FinancialYear DST Fraud Prevention and Detection Plan. 9/10/
18 A Responsive, Coordinated and Efficient NSI (4) National Research Foundation (NRF) Amendment Bill of 2017 In the reporting period, the NRF Amendment Bill has been passed by the National Assembly and sent to the NCOP for concurrence. The Bill seeks to include, in the NRF mandate, the functions of supporting and promoting public awareness of, and engagement, with science; and to codify Minister s powers on determination of the: national research and funding policy, and national research facilities as well as the withdrawal of such determination; and declaration of research institutions which can be funded through the NRF. 9/10/
19 Indigenous Knowledge Bill The Portfolio Committee led the process to finalise the IKS Bill. Further, public hearings were held on the Bill. Prior to the public hearings, public awareness campaigns were conducted to sensitise communities. A Responsive, Coordinated and Efficient NSI (5) During the months of May and June 2018, the Department briefed all nine provincial legislatures and provided technical support in 32 of the 36 hearings in the provinces. The process for finalising the Bill is currently with the NCOP. 9/10/
20 Increased Knowledge Generation (1) The DST acknowledged that without research grants support, knowledge generation is not possible. Grants are provided through a number of instruments designed to strengthen research capacity at universities, including the South African Research Chairs Initiative and the Centres of Excellence Programme. For example, researchers received research grant through the DST NRFmanaged programmes. Big data flagship projects During the reporting period, collaboration between the SKA and NICIS: The CSIR- NICIS and NRF SKA-(SARAO) Memorandum of Agreement (MoA) was finalised and signed. Furthermore, the draft national strategy for research big data was submitted to the DST for consideration and input. 9/10/
21 Increased Knowledge Generation (2) Launch of MeerLICHT On the 25 May 2018, the DST successfully launched MeerLICHT telescope, Sutherland in the Northern Cape. The launch of the instrument was a key milestone in Multiwavelength astronomy development. This development put South Africa on the map and it highlighted the importance and success of international collaborations in Astronomy. The MeerLICHT will complement the MeerKAT observations in the Optical spectrum. 9/10/
22 Human Capital Development (HCD) initiative Bursaries awarded through NRF and DST programmes PhD students, and pipeline postgraduate students (honours and masters students). Interns A total of 806 ( ) graduates and students from both the NRF and National Youth Service placed in SETI DST-funded institutions. National Science Week (NSW) Human Capital Development The primary goal of this campaign is to promote science and technology literacy, as well as their pivotal role in addressing issues affecting people. To implement this initiative, grants were awarded to 82 organisers of National Science Week and science festivals, respectively in the reporting period. 9/10/
23 Using Knowledge and Innovation for Economic Development (1) Innovation for Economic Development The DST continues to encourage industry innovation partnerships as part of a broader government efforts to support industry competitiveness. HySA commercial sales: During the quarter under review, HySA Infrastructure had sold the Liquid Organic Hydrogen Carrier (LOHC) to a local company; and HySA Systems sold a 1 KW high temperature fuel cell stack to a Chinese company. The products which were sold were identified in the HySA independent assessment as products which were ready for the market. 9/10/
24 Using Knowledge and Innovation for Economic Development (2) The IK-Based Technology Innovation In collaboration with agencies, reporting to national departments workshops for the handing over of IK based initiatives that are ready for commercialisation to line departments were organised in this reporting period: The Departments of Trade and Industry (the dti); Small Business Development (DSBD); Rural and Land Affairs (DRLA), and Agriculture, Forestry and Fisheries (DAFF). 24
25 Knowledge Utilisation for Inclusive Development (1) The DST through the HySA initiative contributes to the South Africa diversified energy mix strategy. Hydrogen and fuel cell technology: The 2.5kW HySA developed fuel cell system, with renewable hydrogen production and storage on site, was launched by the Minister of Science and Technology on 13 April 2018 in Poelane, North West. This provides a reliable source of clean energy for the rural school. This 2.5 kw fuel cell system powers the lights in classrooms and some computer laboratories within those rural schools. 9/10/
26 Support for Service Delivery The DST Scientific knowledge, evidence and appropriate technology initiatives featured in the South African Local Government Association s innovation publication (in.know.vation). For example; Knowledge Utilisation for Inclusive Development (2) A DST designed and funded an initiative to advance leveraging ICT in agriculture was recognised through an award for relevance and innovation at the national agriculture extension services advisory forum. In advancing an interdisciplinary approach to addressing development challenges, seminar was hosted by the DST on the 14th of June 2018 on the water-energy nexus and the application of green technologies. The discussions were aligned to respond to the Sustainable Development Goal 6 (water and sanitation) and Goal 7 (affordable and clean energy). 9/10/
27 International Resources In the reporting period, the DST successfully secured an amount of R100m over 3 years from the European Union (EU) General Budget Support (GBS) programme in support of the Green Economy for Development. International Cooperation and Resources (1) The DST represented South Africa at the International Meeting on Triangular Cooperation hosted by the Organisation for Economic Cooperation and Development s (OECD). The focus of the deliberations was on sharing experiences, scaling-up triangular cooperation to multi-stakeholder partnerships, South-South cooperation and ongoing work at the Global Partnership Initiative on effective triangular cooperation. The DST formed part of a panel that reviewed and discussed the newly developed OECD Toolkit for Identifying, Monitoring and Evaluating the Value-added of Triangular Cooperation. In partnership with DST, Hitachi, the Water Research Commission (WRC) and the South African Institution of Civil Engineering (SAICE), six candidates were selected to participate in the DST-Hitachi Scholarship for South African Engineers for two months on-the-job training in Japan in Water and Sanitation Treatment and Technologies. 9/10/
28 Overseas Bilateral Cooperation International Cooperation and Resources (2) The DST participated in the SA-Canada Binational Consultation Meeting in Ottawa led by DIRCO to review progress on current programmes and agreed on a new action plan, including the signing of an MOU for S&T policy dialogues. Preparation for the Chinese State visit, under the leadership of DIRCO, started during the reporting period and specific reference to the Joint Research Centres, Young, Science exchange Programme, Science Park and the strengthening of S&T bilateral cooperation was high on the agenda. The DST supported the S&T Portfolio Committee to visit South Korea and Japan in order to learn about these science systems, benchmark and identify opportunities for South Africa. 9/10/2018 South Africa hosted the BRICS Young Scientist Forum and meetings with S&T Ministers of India and China were held to recommit on the bilateral cooperation and note progress of ongoing cooperation. 28
29 International Cooperation and Resources (3) Multilateral Cooperation and Africa The DST hosted the Joint meeting of SADC Ministers for Education and Training and Science,Technology and Innovation as the current Chair of SADC. Substantial support towards the approved SADC Women in Science, Engineering and Technology Organisation (WISETO) was garnered and will be signed by all countries. South Africa was elected as a consortium partner within the Africa-Europe Coordination and the Support Action on Renewable Energy. The continuous promotion of South African science and scientific capability has increasingly improved the international profile of South Africa, therefore more South Africans are identified for leadership positions globally. 9/10/
30 PERFROMANCE INFORMATION OVERVIEW 9/10/
31 DST s Programmes Administration Technology Innovation International Cooperation and Resources White Paper on S&T, National Research & Development Strategy, Ten- Year Innovation Plan Research Development and Support Socio-Economic Innovation Partnerships 31
32 Overall DST s Performance per Programme (1) Figure 2 below illustrates the performance of the Department per Programme in the first quarter. Programme 1 achieved 100% of its targets Programme 2 achieved 100% of its targets. Programme 3 achieved 100% of its targets Programme 4 achieved 100% of its targets Programme 5 achieved 70% of its targets and 30% of the planned targets were not achieved. 32
33 Overall DST s Performance per Programme (2) Figure 2: The DST performance per Programme (100%) 7(70%) (100%) 2(100%) 3(100%) 3(30%) Prg1:Admin(n=2) Prg2: TI(n=2) Prg3:ICR(n=3) Prg4:RDS(n=5) Prg5:SIP(n=10) Achieved Not Achieved 9/10/
34 Programme 1 Purpose of the Programme (1) Programme 1: Administration To conduct the overall management and administration of the Department. 34
35 Programme 1 Performance Quarter 1 achievements - Administration Annual Target Quarter 1 Target Quarter 1 Progress Status 24 media articles were written to raise the DST's public profile by 31 March 2019 Four media articles were written to raise the DST's public profile 16 media articles were written to raise the DST's public profile Achieved 10 Public participation programmes were held for the quarter by 31 March 2019 Two Public participation programmes were held for the quarter Two Public participation programmes were held for the quarter Achieved 35
36 Programme 2 Purpose of the Programme (2) Programme 2: Technology Innovation To enable research and development in strategic and emerging focus areas to promote the realisation of commercial products, processes and services from R&D outputs; through the implementation of enabling policy instruments. 36
37 Programme 2 Performance Quarter 1 achievements Technology Innovation Annual Target Quarter 1 Target Quarter 1 Progress Status 100% of regulatory recommendations made to the GMO Executive Council through DAFF to support decision making by 31 March % of regulatory recommendations made to the GMO Executive Council through DAFF to support decision making 5 requests were received and 5 recommendations were made to the Executive Council. Thus 100% was achieved Achieved 220 new disclosures reported by publicly funded institutions by 31 March new disclosures reported by publicly funded institutions 150 new disclosures were received from publicly funded institutions by 30 June 2018 Achieved 37
38 Programme 3 Purpose of the Programme (3) Programme 3: International Cooperation and Resources This Programme aims to strategically develop, promote and manage international relationships, opportunities and S&T agreements that strengthen the NSI and enable an exchange of knowledge, capacity and resources between South Africa and its regional and international partners. Minister Kubayi- Ngubane attending Next Einstein Forum in Kigali 38
39 Programme 3 Performance Quarter 1 achievements - Programme 3: International Cooperation and Resources Annual Target Quarter 1 Target Quarter 1 Progress Status 550 international partner organisations (i.e. legal entities) collaborating with South African partners within the formalised framework of collaborative research, innovation or STI HCD projects counted as part of cooperation initiatives facilitated by the DST by 31 March international partner organisations (i.e. legal entities) collaborating with South African partners within the formalised framework of collaborative research, innovation or STI HCD projects counted as part of cooperation initiatives facilitated by the DST 64 international partner organisations (i.e. legal entities) collaborating with South African partners within the framework of formalised collaborative research, innovation or STI human capital development projects as part of cooperation initiatives. Achieved 25 dedicated international technical exchanges to build or reinforce South Africa s capacities in key STI domains specifically referenced in the DST Strategic Plan, undertaken with the support of international partners and facilitated by the DST by 31 March dedicated international technical exchanges to build or reinforce South Africa s capacities in key STI domains specifically referenced in the DST Strategic Plan, undertaken with the support of international partners and facilitated by the DST 8 dedicated international technical exchanges such as workshops, seminars or training programmes to build or reinforce South Africa s capacities in key STI domains specifically referenced in the DST Strategic Plan, undertaken with the support of international partners. Achieved 39
40 Programme 3 Performance Quarter 1 achievements - Programme 3: International Cooperation and Resources Annual Target Quarter 1 Target Quarter 1 Progress Status 17 AU or SADC STI initiatives, including programmes, projects or governance frameworks, endorsed at AU or SADC ministerial level supported (financially or in kind) by the DST by 31 March AU or SADC STI initiatives, including programmes, projects or governance frameworks, endorsed at AU or SADC ministerial level supported (financially or in kind) by the DST 7 AU or SADC STI initiatives, including programmes, project or governance frameworks, endorsed at AU or SADC ministerial level supported (financially or in kind) by the DST Achieved 40
41 Programmes 4 Purpose of the Programme (4) Programme 4: Research Development and Support Provide an enabling environment for research and knowledge production that promotes strategic development of basic sciences and priority science areas, through science promotion, human capital development, the provision of research infrastructure and relevant research support in pursuit of South Africa s transition to a knowledge economy. 41
42 Sampled Programme 4 Performance Quarter 1 achievements - Programme 4: Research Development and Support Annual Target Quarter 1 Target Quarter 1 Progress Status Not less than PhD students awarded an annual bursary as reflected in the reports from the NRF and relevant entities by 31 March 2019 Not less than PhD students awarded an annual bursary as reflected in the reports from NRF and relevant entities PhD students awarded an annual bursary as reflected in the reports from NRF and relevant entities Achieved Not less than pipeline postgraduate students awarded an annual bursary as reflected in the reports from the NRF and relevant entities by 31 March 2019 Not less than pipeline postgraduate students (BTech and honours, and masters students) awarded an annual bursary pipeline postgraduate students (BTech and honours, and masters students) awarded an annual bursary Achieved 42
43 Programme 4 Performance Quarter 1 achievements - Programme 4: Research Development and Support Annual Target Quarter 1 Target Quarter 1 Progress Status 790 graduates and students placed in DST-funded work preparation programmes in SETI institutions by 31 March graduates and students placed in DST-funded work preparation programmes in SETI Institutions 676 graduates and students placed in DST-funded work preparation programmes in SETI Institutions Achieved Not less than researchers awarded an annual research grant through NRF-managed programmes as reflected by the NRF project reports by 31 March 2019 Not less than researchers awarded an annual research grant through NRF-managed programmes researchers awarded an annual research grant through NRF-managed programmes Achieved 43
44 Programme 4 Performance Quarter 1 Achievements - Programme 4: Research Development and Support Annual Target Quarter 1 Target Quarter 1 Progress Status Not less than 2.1 million participants (learners and members of the public) in science awareness and engagement programmes annually as reflected in the project reports of the NRF and other service providers by 31 March 2019 Grant funding awarded to organisations implementing the initiatives by 30 June 2018 Grants have been awarded to 82 organisers of Science engagement activities. Achieved 44
45 Programme 5 Purpose of the Programme (5) Programme 5: Socio-Economic Innovation Partnerships This Programme enhances the growth and development priorities of government through targeted S&T-based innovation interventions and the development of strategic partnerships with other government departments, industry, research institutions and communities. 45
46 Sampled Programme 5 Performance Quarter 1 Achievements - Programme 5: Socio-Economic Innovation Partnership Annual Target Quarter 1 Target Quarter 1 Progress Status Six knowledge products on innovation for inclusive development published by 31 March knowledge product on innovation for inclusive development published between 1 April 2018 and 30 June policy brief (PB) was published on the DST website by 30 June 2018 Achieved 10 decision-support systems maintained and improved by 31 March 2019 Annual work plan approved for at least 2 decision-support systems between 1 April 2018 and 30 June 2018 Work plans were approved for at least 3 decision-support systems Achieved 46
47 Sampled Programme 5 Performance Quarter 1 Achievements - Programme 5: Socio-Economic Innovation Partnership Annual Target Quarter 1 Target Quarter 1 Progress Status 9 learning interventions (seminars, lectures, learning forums and policy dialog) generated 31 March learning intervention generated between 1 April and 30 June learning intervention was generated between 1 April and 30 June 2018 Achieved 90 unique honours, master s and doctoral students fully funded or cofunded in designated niche areas that support the green economy and sustainable development by 31 March unique honours, masters and doctoral students fully funded or cofunded between 1 April 2018 and 30 June unique honours, masters and doctoral students were fully funded or co-funded between 1 April 2018 and 30 June 2018 Achieved 47
48 Sampled Programme 5 Performance Quarter 1 Achievements - Programme 5: Socio-Economic Innovation Partnership Annual Target Quarter 1 Target Quarter 1 Progress Status 126 interns fully funded or co-funded in R&D related to design, manufacturing and product development by 31 March interns fully funded or cofunded in R&D related to design, manufacturing and product development 130 interns fully funded or co-funded in R&D related to design, manufacturing and product development Achieved 9 instruments funded in support of increased localisation, competitiveness and R&D-led industry development by 31 March 2019 Annual work plans or contract approved for 6 support instruments Annual work plans or contract approved for 8 support instruments Achieved 48
49 Sampled Programme 5 Performance Quarter 1 Achievements - Programme 5: Socio-Economic Innovation Partnership Annual Target Quarter 1 Target Quarter 1 Progress Status 8 innovation-support interventions Annual work plan approved funded or co-funded that strengthen for at least 3 innovation provincial or rural innovation support interventions systems by 31 March 2019 between 1 April 2018 and 30 June 2018 Work plans for 3 interventions to support rural innovation systems were finalised and approved between 1 April 2018 and 30 June 2018 Achieved 49
50 Underperformance TARGETS WHICH WERE NOT ACHIEVED 9/10/
51 Classification of reasons for variances due to non / under achievement Process delays refers to factors which are outside the control of the DST and therefore achievement of such targets is mainly dependent on outside circumstances. Ineffectiveness of implementers refers to non-achievement due to deficiencies during the implementation phase. Target formulation deficiencies refers to targets which were not achieved because of variables which were not foreseen during the target formulation phase. 9/10/
52 DST s Underperformance Overview Quarter 1 Targets which were not achieved Quarter 1 Target Quarter 1 Progress Reasons for nonachievement 200 masters and doctoral students fully funded or co-funded in designated niche areas (advanced manufacturing, aerospace, chemicals, mining, advanced metals, ICTs, Industry Innovation Programme and the sector innovation fund) At least 1 knowledge or innovation product added to the industrial development IP portfolio between 1 April 2018 and 30 June master s and doctoral students fully funded or co-funded in designated niche areas (advanced manufacturing, aerospace, chemicals, mining, advanced metals, ICTs and SIFs) Nothing reported The number of 33 students funded are still being validated. In the process of improving declaring, listing and registering the IP products Status Not Achieved Not Achieved Variance Classification Ineffectiveness of implementers Process delays 52
53 DST s Underperformance Overview Quarter 1 Targets which were not achieved Quarter 1 Target Quarter 1 Progress Reasons for nonachievement Preapproval decisions provided within 90 days on 80% of applications received between 1 January 2018 and 31 March 2018 Of the 45 applications received between 1 January 2018 and 31 March 2018, 10 (or 22%) received decisions within 90 days. In total, of the 45 applications received between 1 January 2018 and 31 March 2018, 30 (66%) were adjudicated and 14 (31%) received preapproval decisions Available capacity was used to clear the pre-2018 applications. Briefings were required for the Minister on the R&D tax incentive processes Status Not Achieved Variance Classification Ineffectiveness of implementers 53
54 FINANCIAL PERFORMANCE AND CONCLUSION 54
55 Financial performance report Budget split By Programme DST Financial Performance 55
56 Financial performance report Budget split By economic classification 56
57 Financial performance report DST First Quarter Financial Performance (including parliamentary grants) DST Financial Performance Report 57
58 Financial performance report Financial performance per Programme (including parliamentary grants) 58
59 Conclusion To ensure that the NDP goals are realized, the Department and it s public entities are committed to maintaining the highest standards of corporate governance, which are fundamental to the management of public finances and resources. The DST will continue to play a central role in providing STI initiatives that enhance socio-economic development central to the NDP objectives. These includes amongst other: Targeted Human Capital Development initiatives; Innovation-support interventions implemented in province or priority district municipalities; and Targeted innovations for inclusive development. The DST continues to strengthen cooperation in STI in Africa, to build capacities and support initiatives of the SADC, AU, and Africa s growth and the development agenda. 59
60 Dankie Enkosi Ha khensa Re a leboga Ro livhuwa Siyabonga Siyathokoza Thank you Dankie Enkosi Ha khensa Re a leboga Ro livhuwa Siyabonga Siyathokoza Thank you 41
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