Vote 27 : Environmental Affairs Portfolio Committee Briefing Expenditure Report for period (Quarter2) 1 April 2016 – 30 September 2016 Ms Nosipho Ngcaba Director-General Department of Environmental Affairs 25 October 2016

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

Expenditure for the 2016/17 Financial Year per Programme Main Appropriation R’000 Q1: Expenditure 1 April - 30 June 2016 Q2: Expenditure 1 July – 30 Sept 2016 Total 1 April till 30 Sept 2016 Balance Available till 31 March 2017 % Spent 1. Administration 808 226 176 287 198 420 374 707 433 519 46 2. Legal, authorization and Compliance 164 647 32 853 30 561 63 414 101 233 39 3. Oceans and Coasts 475 041 160 530 65 678 226 208 248 833 48 4. Climate Change and Air Quality 289 582 71 111 74 316 145 427 144 155 50 5. Biodiversity and Conservation 718 249 219 507 190 209 409 716 308 533 57 6. Environmental Programmes 3 865 083 830 856 624 366 1 455 222 2 409 861 38 7. Chemicals and Waste Management 109 273 17 746 16 193 33 939 75 334 31 6 430 101 1 508 890 1 199 743 2 708 633 3 721 468 42

Expenditure per Economical Classification Main Appropriation R’000 Q1: Expenditure 1 April - 30 June 2016 Q2: Expenditure 1 July – 30 Sept 2016 Total 1 April till 30 Sept 2016 Balance Available till 31 March 2017 % Spending Current Payments 2 236 414 492 928 449 275 942 203 1 294 211 42 Compensation of employees Goods and services* 1 001 609 1 234 805 243 059 249 869 244 900 204 375 487 959 454 244 513 650 780 561 49 37 Transfers and Subsidies 4 010 418 963 208 712 940 1 676 148 2 334 270 Departmental Agencies Foreign Governments Non-Profits Institutions Green fund Expanded Public Works Other Transfers compensation fund, leave gratuity & bursaries 1 294 314 16 000 10 530 180 000 2 498 566 11 008 207 477 1 800 744 015 9 916 176 142 2 487 533 219 1 092 383 619 4 287 1 277 234 910 695 6 243 1 221 332 30 41 51 100 Payment for capital assets 183 269 52 754 37 528 90 282 92 987 PPP New Building Machinery & Equipment Software & Intangible Assets Financial Assets 135 954 46 527 600 188 20 869 31 228 579 78 33 604 3 814 110 54 473 35 042 81 481 11 485 21 40 75 97 6 430 101 1 508 890 1 199 743 2 708 633 3 721 468

Detail Current Expenditure * Goods and services Q1 R’000 Q2 Total 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 107 692 35 428 34 695 14 304 12 731 2 829 5 142 9 173 6 315 679 4 214 4 419 4 994 1 464 2 680 209 320 929 1 652 79 559 27 822 18 669 10 022 14 702 4 326 2 250 15 119 6 339 736 4 228 3 506 4 273 2 539 5 225 296 1 159 1 029 2 576 187 251 63 250 53 364 24 326 27 433 7 155 7 392 24 292 12 654 1 415 8 442 7 925 9 267 4 003 7 905 505 1 479 1 958 TOTAL 249 869 204 375 454 244

Graphical Presentation

Detail Consultants, Contractors and Agency Services ** Notes Q1 R’000 Q2 Total Consultants, Contractors and Agency Services ** Internal Auditors Audit Committee 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 Graphic Designers 154 50 33 082 3 705 67 996 1 991 186 110 211 207 321 25 38 445 3 247 18 540 11 960 6 825 45 100 51 475 75 71 527 6 952 86 536 13 951 7 011 155 311 258 TOTAL 107 692 79 559 187 251 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 Q2 Total 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 Witness Fees Other: Car valet & wash services/Laundry services/Gifts/Nonlife insurance/Drivers licenses & permits/Achievements and awards/Storage of assets & goods 5 687 4 668 1 700 412 457 250 108 1 022 6 224 1 291 1 712 355 378 3 59 11 911 5 959 3 412 767 835 253 1 081 TOTAL 14 304 10 022 24 326 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# (R5 959 354.58) Benguela Current Commission (BCC) Intergovernmental Science –Policy Platform on Biodivsersity & Ecosystem Services (IPBES) Commission for the Conservation of Antartictic Marine Living Resources(CCAMLR) African Institute for Environmentally Sound Management of Hazardous & other waste (AIESMH &W) United Nations Environment Programme (UNEP) Environmental Assessment Practitioners (EAP’s) Interim Certification Board (ICB) Environmental Systems Research Institute South Africa (ESRI) Enterprise Licence Agreement

Payment of Capital Assets Machinery and Equipment Q1 R’000 Q2 Total Computer Equipment Computer Hardware & Systems: Server / Mainframe Transport Equipment Building Air-con systems Domestic Equipment Furniture fixture & appliances Office Equipment Finance Leases Telecommunication Equipment Printing Equipment Photographic Equipment Audio Visual Equipment Kitchen Appliances Survey Equipment Ship and Marine Equipment Tents, Flags and Accessories Radio Equipment Workshop Equipment and Tools Laboratory Equipment 1 377 6 195 4 532 32 484 46 840 29 1 068 51 26 1 161 24 11 192 22 61 15 026 2 376 9 443 10 638 58 18 6 93 109 44 3 753 6 204 4 975 494 684 898 47 57 119 1 270 68 21 31 228 3 814 35 042

Allocations & Transfers to DEA Public Entities SANParks R’000 SANBI SAWS ISWP TOTAL Allocated Budget 637 724 319 331 204 985 132 274 1 294 314 DEA Operational Infrastructure Grant 278 939 358 785 237 973 81 358 33 031 99 243 754 928 539 386 Transferred (144 451) (120 158) (102 492) (16 518) (383 619) Infrastructure Grant ** (0) Balance 493 273 199 173 102 493 115 756 910 695 % Spent 23% 38% 50% 12% 30% **Infrastructure Grant requested and paid during October 2016 179 393 43 102 222 495

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 180 000 1 400 6 043 16 000 1 800 1 287 11 008 217 538 Transferred (0) (1 200) (1 800) (1 287) (11 008) (15 295) Balance 200 202 243 % Spent 0% 86% 100% 7%

Allocations & Transfers Environmental Public Works Projects Working for Water R’000 Working on Fire Environmental Projects TOTAL Allocated Budget 987 957 605 051 905 558 2 498 566 Projects Incentives 843 560 144 397 558 871 46 180 736 074 169 484 2 138 505 360 061 Transferred (398 990) (393 416) (484 828) (1 277 234) (0) (456 212) (28 616) (1 248 618) Balance 588 967 211 635 420 730 1 221 332 % Spent 40% 65% 54% 51%

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 1 121 899 Botswana Transfrontier Conservation Areas Strategy 813 376 Germany Climate Change Support Programmes 429 5 Promethium Carbon Programme 59 USAID Compilation of Arid Transfrontier Project 103 NORWAY Capacity Development within the South African National Greenhouse Gas Inventory Unit (New) 2 827 1 096 UNEP Strengthening Law Enforcement Capabilities to Combat Wildlife Crime for Conservation and Sustainable Use of Species: Target: Rhinoceros 13 779 11 957

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 AEWA: 6th session of the AEWA meeting of parties 1 298 Total 22 151 15 631

Public Entities 2nd Quarter Review (30 September 2016) Financial Management Services 18

Allocation to Public Entities and Own Revenue for the year ended 30 September 2016 SANParks R’000 SANBI SAWS ISWP DEA Operational and Infrastructure Grant **126 711 120 158 102 492 16 518 Total Transferred 126 711 1 222 616 66 747 84 001 119 297 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 791 565 13 311 20 563 359 051 38 126 13 920 6 070 6 306 37 123 3 328 65 236 5 176 1 893 1 418 10 278 8 763 9 987 1 050 99 497 - Sub-total 1 349 327 186905 186 493 135 815 Deferred grant /transfers Total revenue 186 905 **It should be noted that SANParks Grants are VAT exclusive R 126 711 (144 451 VAT incl.) 19

Public Entities Revenue and Expenditure as at 30 September 2016 SANParks R’000 SANBI SAWS iSimangaliso Total revenue (1 349 327) (186 905) (186 493) (135 815) **Total expenditure 1 267 419 243 457 172 338 34 192 Surplus/(Deficit) 81 908 (56 552) 14 155 101 623 **SANBI’s Expenditure includes an amount of R36,206m for Capital expenditure SANParks Expenditure includes an amount of R147 000 for loss on disposal of asset. SAWS Expenditure include an amount of R17,956m for Depreciation and Amortization. 20

Public Entities Revenue and Expenditure as at 30 September 2016 21

Public Entities Surplus/ (Deficit) as at 30 September 2016 SANParks R’000 SANBI SAWS iSimangaliso Surplus/(Deficit) 81 908 (56 552) 14 155 101 623 Reason Due to the realisation of the Infrastructure grant income (application of GRAP23 - recognition of grants received) Government grant is (R39.5m) behind budget due to timing differences between the Institute and the Department. This relates particularly to the capital grant transfers. Other income is (R3.8m) behind budget ,this is made up of sundry income such as plant sales and unidentified deposits. Mainly due to higher revenue collected (Aviation income: R65m) Non-Cash Surplus and is the result of the accounting policies relating to grants (GRAP23) 22