Vote 27:Environmental Affairs Portfolio Committee Briefing Expenditure Report for the period 1 April – 30 June 2017 Financial Management Services Ms Nosipho Ngcaba Director-General Department of Environmental Affairs 12 September 2017 18

Presentation Outline Expenditure per Programme Expenditure per Economic Classification Expanded Public Works Programmes & Projects 30 days payment report Donor Funding Public Entities first quarter reporting

Expenditure for the 2017/18 Financial Year per Programme Main Appropriation R’000 Q1: Expenditure 1 April - 30 June 2017 Balance Available till 31 March 2018 % Spent 1. Administration 863 045 180 264 682 781 21 2. Legal, authorization and compliance 179 780 34 721 145 059 19 3. Oceans and coasts 468 455 55 772 412 683 12 4. Climate change and air quality 294 872 73 946 220 926 25 5. Biodiversity and conservation 696 518 183 626 512 892 26 6. Environmental programmes 3 895 209 507 373 3 387 836 13 7. Chemicals and waste management 450 335 20 044 430 291 5 Total 6 848 214 1 055 746 5 792 468 15

Expenditure per Economical Classification Main Appropriation R’000 Q1: Expenditure 1 April - 30 June 2017 Balance Available till 31 March 2018 % Spending Current Payments 2 189 497 406 389 1 783 034 19 Compensation of employees Goods and services* 1 035 073 1 154 424 257 941 148 448 777 132 1 005 976 25 13 Transfers and Subsidies 4 493 208 631 950 3 861 258 14 Departmental Agencies Foreign Governments Non-Profits Institutions Green fund Expanded Public Works Projects Other Transfers compensation fund, leave gratuity & bursaries 1 194 037 16 000 10 893 110 455 3 157 437 4 386 308 774 2 287 316 503 885 263 8 606 2 840 934 26 21 10 100 Payment for capital assets* 165 509 17 407 148 102 11 PPP New Building Machinery & Equipment Software & Intangible Assets Financial & Software Assets 136 901 28 567 41 12 046 5 320 124 855 23 247 9 Total 6 848 214 1 055 746 5 792 468 15

Graphical Presentation

Detail Current Expenditure * Goods and services Q1 R’000 Consultants, contractors and agency/ outsourced services ** (Annexure A) Travel and subsistence - Foreign & Domestic Travel (Annexure B) Venues and facilities (communication projects and meetings) Other operating expenditure *** Operating leases (include accommodation, car rentals and Nestle machines rentals, printers, fax machines) Owned and leasehold property expenditure (Include building maintenance and repairs) Inventory includes: oil gas, medical, food supplies for Antarctica Computer services (software licenses, operating systems, data lines & external computer services) Consumables (stationery, printing, office suppliers) Assets <R5000 Advertising (tenders, marketing, promotional items and recruitments costs) Training and staff development (NRM Implementing Agencies & pilot youth programmes Communication (Installation of data lines, telephone & conference facilities in regions/Cape Town) Audit cost – (External) Catering & Entertainment Bursaries employees Administrative fees (increase in personnel agency and travel agency fees) Fleet services (transport provided as part of the departmental activities) Rental and hiring 29 714 37 215 3 082 6 408 27 356 2 941 233 4 775 8 189 80 2 179 6 803 3 589 2 738 1 515 296 1 597 1 085 8 653 TOTAL 148 448

Detail Consultants, Contractors and Agency Services ** Notes Q1 R’000 Consultants, Contractors and Agency Services ** Internal Auditors Audit Committee Communication Research and Environmental Projects (CSIR and other) Legal Costs Agency Fees: Smit Amandla: operating and manning vessels: SA Agulhas & Algoa Contractors: Eradication Alien Vegetation Event Promotors Medical Services: Examinations Transport Audio Visual and Photography 1 714 49 112 24 194 1 616 75 1 200 62 32 2 658 TOTAL 29 714 Professional bodies, membership and subscription fees: African Institute for Environmentally Sound Management of Hazardous and Other Waste, Environmental Fund - United Nations Environment Programme , Commission for the Conservation of Antarctic Marine Living Resources, Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) Plenary meeting Benguela Current Commission (BCC) membership.

Detail Current Other Operating Expenditure *** Notes Q1 R’000 Operating Expenditure *** Air charter services, voyages to Islands & landing rights, harbour, dock fees (Buoy, ocean surveyor & systems) Professional bodies, membership and subscription fees# Printing & publications services Resettlement costs Courier & Delivery services Freight & Harbour services Other: Car valet & wash services/Laundry services/Gifts/Nonlife insurance/Drivers licenses & permits/Achievements and awards/Storage of assets & goods 4 276 1 168 583 231 7 143 TOTAL 6 408 Professional bodies, membership and subscription fees: African Institute for Environmentally Sound Management of Hazardous and Other Waste, Environmental Fund - United Nations Environment Programme , Commission for the Conservation of Antarctic Marine Living Resources, Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) Plenary meeting Benguela Current Commission (BCC) membership.

Payment for Professional bodies, membership and subscription fees# (R4 275 881.07) Benguela Current Commission (BCC) for Benguela Current Convention United Nations Environment Programme (UNEP) for Nairobi Convention United Nations Educational, Scientific and Cultural Organisation (UNESCO) for World Heritage Commission

Payment of Capital Assets Machinery and Equipment Q1 R’000 Computer Equipment Computer Hardware & Systems: Server / Mainframe Transport Equipment Building Air-con systems Furniture fixture & appliances Office Equipment Sanitation, Waste Equipment Photographic Equipment Audio Visual Equipment Kitchen Appliances Survey Equipment 971 31 3 428 19 8 34 192 27 498 17 95 Total 5 320

Allocations & Transfers to DEA Public Entities SANParks R’000 SANBI SAWS ISWP TOTAL Allocated Budget 494 104 324 928 240 482 134 523 1 194 037 DEA Operational Infrastructure Grant 285 336 208 768 249 928 75 000 205 482 35 000 34 523 100 000 775 269 418 768 Transferred (84 450) (64 322) (51 371) (108 631) (308 774) (0) (8 631) (100 000) (208 774) Balance 409 654 260 606 189 111 25 892 885 263 % Spent 17% 20% 21% 81% 26%

Allocations & Transfers to Other Agencies DBSA Green Fund R’000 Nat. Assoc. for Clean Air (NACA) Nat. Regulator of Compulsory Spec. (NRCS) Global Environmental Fund (GEF) African World Heritage Fund Natal Conservation Board Other transfers TOTAL Allocated Budget 110 455 1 474 7 132 16 000 1 000 1 287 4 386 141 734 Transferred (0) (1 000) (1 287) (4 386) (6 673) Balance 135 061 % Spent 0% 100% 5%

Allocations & Transfers Environmental Public Works Projects Working for Water R’000 Working on Fire Environmental Projects TOTAL Allocated Budget 1 268 971 608 887 1 001 579 2 879 437 Projects Incentives 1 107 975 160 996 527 184 81 703 773 128 228 451 2 408 287 471 150 Transferred (102 843) (169 066) (44 594) (316 503) (0) Balance 1 166 128 439 821 956 985 2 562 934 % Spent 8% 28% 5% 11%

Allocations & Transfers Waste Bureau Projects Tyre Recycling Programme R’000 Plastic Programme Recycling Enterprise Support Programme TOTAL Allocated Budget 187 000 33 000 58 000 278 000 Transferred (0) Balance % Spent 0% Note: Waste Bureau projects delayed due to setting up the correct processes and monitoring tools. Progress in expenditure projected from Q3 and Q4.

30 Days Payment Report PERFOMANCE INDICATOR April May June July August September October November December January February March Total invoices paid by Head office 435 591 330 238 959 424   Total number of invoices paid by Head office 803 2878 Invoices Paid after 30 days Total invoices paid by CPT 10 152 860 37 443 601 Total number of invoices paid by CPT 154 364 Avarage days taken to pay invoices Head office 16 19 Avarage days taken to pay invoices CPT 11 10 Base line 30

Foreign Aid Assistance Name of Donor Country Purpose Budget Allocated R’000 Expenditure United Nations Benguela Current Large Marine Ecosystem Programme 54 Australia Funding agreement in relation to South Africa Land Sector Measurement 222 15 Botswana Transfrontier Conservation Areas Strategy 437 Germany Climate Change Support Programmes 424 Promethium Carbon Programme 59 USAID Compilation of Arid Transfrontier Project 103 NORWAY Capacity Development within the South African National Greenhouse Gas Inventory Unit (New) 1 731 UNEP Strengthening Law Enforcement Capabilities to Combat Wildlife Crime for Conservation and Sustainable Use of Species: Target: Rhinoceros 5 000 119

Foreign Aid Assistance Name of Donor Country Purpose Budget Allocated R’000 Expenditure UNEP Preparation of Intended Nationally Determined Contribution (INDC) to the 2015 Agreement under UNFCCC 1 668 South Africa: Enabling Activities for the Preparation of Third National Communications (TNC) and Biennial Update Report (BUR) 379 Total 10 077 513

Public Entities 1st Quarter Review (30 June 2017) Financial Management Services 18

Allocation to Public Entities and Own Revenue for the year ended 30 June 2017 SANParks R’000 SANBI SAWS ISWP DEA Operational and Infrastructure Grant 84 450 64 322 51 371 108 631 Total Transferred 449 982 34 035 40 191 36 262 Revenue from operating activities/Admission fees/Aviation income/Park revenue Other income Investment income Other Grants, Sponsorships and Donations Sales of Fauna & Flora/Rent Received/Non-regulated commercial income/Sundry income 424 195 7 945 11 165 737 5 940 10 257 1 308 4 493 15 864 2 113 31 281 547 1 486 517 6 360 4 386 31 176 700 - Sub-total 534 432 98 357 91 562 144 893 Deferred grant /transfers (3 868) (101 640) Total revenue 530 564 43 253 19

Public Entities Revenue and Expenditure as at 30 June 2017 SANParks R’000 SANBI SAWS iSimangaliso Total revenue (530 564) (98 357) (91 562) (43 253) **Total expenditure 485 311 117 257 105 013 24 383 Surplus/(Deficit) 45 253 (18 900) (13 451) 18 870 **SANBI’s Expenditure includes an amount of R13 573m for Capital expenditure. 20

Public Entities Revenue and Expenditure as at 30 June 2017 21

Public Entities Surplus/ (Deficit) as at 30 June 2017 SANParks R’000 SANBI SAWS iSimangaliso Surplus/(Deficit) 45 253 (18 900) (13 451) 18 870 Reason Due to revenue generated from Conservation and Concession fees Resulting in Project Revenue not realized in time. Operating deficit as well as lower revenue during the period. Non-Cash Surplus. 22