ANNUAL REPORT 2005/2006 - Railway Safety Regulator

Directors’ Reportfor the year ended 31 MARCH 2006The directors present their annual report which forms part of the auditedfinancial statements of the company for the year ended 31 March 2006.Nature of the businessThe objective of Railway Safety Regulator is primarily to oversee safe railwayoperations in the railway transportation industry with a view to:- Provide for and promote safety in the railway safety transport industry;- Encourage the collaboration and participation of interested and affected partiesin improving railway safety;- Recognize the prime responsibility and accountability of operations in ensuringthe safety of railway operations;FundingThe Railway Safety Regulator receives funds in the form of grants from theDepartment of Transport. Refer to Note 1.2Multi-year budgetingA multi-year expenditure framework was completed and detailed financialplans were implemented to ensure that the key strategic objectives are met.Legal Framework and IntegrityThe Railway Safety Regulator is a Schedule 3A public entity established interms of the National Railway Safety Regulator Act (Act No. 16 of 2002). Itsjurisdiction covers the whole of South Africa.Property, Plant & EquipmentThe entity acquired Property, Plant & Equipment to the value of R3 863 949in the current financial year. This represent an increase of R3 005 169 ascompared to the previous financial year.- Facilitate a modern, flexible and efficient regulatory regime that ensures thecontinuing enhancement of safe railway operations;- Promote the harmonization of the railway safety regime of the Republicof South Africa with the objectives of the Southern African DevelopmentCommunity for the operation of railways; and - Further the achievement of thispurpose by establishing a suitable regulatory institution and introduction ofmonitoring mechanisms for overseeing safe railway operations.Financial ResultsThe current financial results are clearly set out in the financial statementson pages 30-47.Performance ReviewCorporate GovernanceThe Board endorses the King Report on corporate governance and during theperiod under review has applied the Code of Corporate Practices and Conduct asset out in the King Report.Reporting and AccountabilityConcise monthly executive management reports were prepared with inputfrom the executive managers. In addition to this quarterly progress reportswere prepared, monitoring performance against the entity’s strategy andpredetermined objectives.EmployeesThe number of employees is 36, having grown from 1 in 2005.Chief Executive OfficerThe case of Chief Executive Officer was finalised and she subsequentlyterminated her employment contract at the end of December 2005.DirectorsDetails of the directors are included on page 30.AuditorsThe Auditor-General acts as the auditor of the Railway Safety Regulator.Events after balance sheet dateNo events occurred subsequent to the reporting period which may affect thecurrent financial year.____________________________Chairperson of the Board (Mr S Madonsela)JohannesburgAnnual Report - 35