Vote 27:Environmental Affairs Portfolio Committee Briefing Q2 Expenditure Report for the period 1 July – 30 September 2017 Financial Management Services Ms Nosipho Ngcaba Director-General Department of Environmental Affairs 21 November 2017 18

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

Expenditure for the 2017/18 Financial Year per Programme Main Appro-priation R’000 Q1: Expenditure 1 April - 30 June 2017 Q2: Expenditure 1 July – 30 Sept 2017 Balance Available till 31 March 2018 % Spent 1. Administration 863 045 180 264 220 119 462 662 46 2. Legal, authorization and compliance 179 780 34 721 39 785 105 274 41 3. Oceans and coasts 468 455 55 772 137 035 275 648 4. Climate change and air quality 294 872 73 946 72 683 148 243 50 5. Biodiversity and conservation 696 518 183 626 159 709 353 183 49 6. Environmental programmes 3 895 209 507 373 915 702 2 472 134 37 7. Chemicals and waste management 450 335 20 044 24 172 406 119 10 Total 6 848 214 1 055 746 1 569 205 4 223 263 38 Percentage Expenditure 15% 23% 62%

Expenditure per Economical Classification Main Appropriation R’000 Q1: Expenditure 1 April - 30 June 2017 Q2: Expenditure 1 Jul – 30 Sept 2017 Balance Available till 31 March 2018 % Spending Current Payments 2 186 652 406 389 522 871 1 257 392 42 Compensation of employees Goods and services* 1 035 073 1 151 579 257 941 148 448 278 097 244 774 499 035 758 357 52 34 Transfers and Subsidies 4 496 053 631 950 995 215 2 868 888 36 Departmental Agencies Foreign Governments Non-Profits Institutions Green fund Expanded Public Works Projects Waste Bureau Projects Other Transfers compensation fund, leave gratuity & bursaries 1 194 037 16 000 10 893 110 455 2 879 437 278 000 7 231 308 774 2 287 316 503 4 386 344 445 1 200 646 725 2 845 540 818 7 406 1 916 209 55 32 33 100 Payment for capital assets* 165 509 17 407 51 119 96 983 41 PPP New Building Machinery & Equipment Software & Intangible Assets Financial & Software Assets 136 901 28 092 510 6 12 046 5 320 48 029 2 615 469 76 826 20 157 44 28 Total 6 848 214 1 055 746 1 569 205 4 223 263 38

Graphical Presentation

Detail Current Expenditure * Goods and services Q1 R’000 Q2 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 8 653 110 288 44 562 14 524 12 747 7 735 9 557 8 488 10 730 5 272 341 9 403 5 813 4 889 2 524 1 321 301 1 848 1 856 (7 425) TOTAL 148 448 244 774

Detail Consultants, Contractors and Agency Services ** Notes Q1 R’000 Q2 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 2 658 633 38 74 16 700 2 414 88 350 1 127 241 566 43 102 TOTAL 29 714 110 288 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 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 7 823 1 266 1 790 191 887 160 630 TOTAL 6 408 12 747 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 541 659.36) Branch International Membership Biodiversity and Conservation -African Eurasian Water Birds -Convention on Biological Diversity -Nagoya Protocol -Biosafety Protocol -Convention on International Trade of Wild Fauna and Flora (CITES) -United Nations Convention to Combat Desertification -Ramsar Convention -World Heritage Convention Chemicals and Waste Management -Stockholm Convention -Rotterdam Convention -Vienna Convention -Montreal Protocol -Basel Convention -Africa Institute Environmental Advisory Services -United Nations Environmental programme -African Ministerial Conference on Environment 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 for Professional bodies, membership and subscription fees (R5 541 659.36) Branch International Membership Oceans and Coasts -Benguela Current Commission -IOSEA Turtle MOU -CMS Sharks MOU -International Whaling Commission -Antarctic Treaty -Abidjan Convention -Nairobi Convention -CCAMLR Climate Change and Air Quality -Kyoto Protocol -United Nations Framework Convention on Climate Change (UNFCCC) 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 Q2 Computer Equipment Computer Hardware & Systems: Server / Mainframe Transport Equipment Building Air-con systems Furniture fixture & appliances Office Equipment Laboratory Equipment Photographic Equipment Audio Visual Equipment Kitchen Appliances Survey Equipment Security Equipment Ship and Marine Equipment Domestic Furniture 971 31 3 428 19 8 34 192 27 498 17 95 2 015 138 356 6 21 28 Total 5 320 2 615

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 (197 025) (201 191) (137 741) (117 262) (653 219) (144 750) (52 275) (126 191) (75 000) (102 741) (35 000) (17 262) (100 000) (390 944) (262 275) Balance 297 079 123 737 102 741 17 261 540 818 % Spent 40% 62% 57% 87% 55%

Allocations & Transfers to DEA Public Entities: EPWP SANParks R’000 SANBI ISWP TOTAL Allocated Budget 476 249 44 000 37 318 557 567 Transferred (160 428) (0) (6 348) (166 776) Working for the Coast Working for Water Working for Wetlands Value Added Industries (10 696) (115 194) (3 563) (34 185) Balance 315 821 30 071 390 791 % Spent 34% 0% 17% 30%

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 7 231 144 579 Transferred (0) (1 200) (1 000) (1 287) (7 231) (10 718) Balance 274 133 861 % Spent 0% 81% 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 (438 895) (314 343) (209 990) (963 228) (0) (131 366) (78 624) (884 081) Balance 830 076 294 544 791 589 1 916 209 % Spent 35% 52% 21% 33%

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 435 591 330 238 959 424 297 311 070 541 317 060 273 375 881 268 819 676   Total number of invoices paid by Head office 803 2 878 2 084 2 162 3 067 2 345 Invoices Paid after 30 days Total invoices paid by CPT 10 152 860 37 443 601 21 082 547 74 003 136 143 112 569 70 117 806 Total number of invoices paid by CPT 154 364 263 392 325 335 Avarage days taken to pay invoices Head office 16 19 22 21 18 Avarage days taken to pay invoices CPT 11 10 14 13 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 2 383

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) 3 790 2 929 Total 13 488 5 327

Public Entities 2nd Quarter Review (30 September 2017) Financial Management Services 18

Allocation to Public Entities and Own Revenue for the year ended 30 September 2017 SANParks R’000 SANBI SAWS ISWP DEA Operational and Infrastructure Grant 197 025 201 191 137 741 117 262 Total Transferred 882 522 91 751 79 331 73 553 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 825 914 26 406 25 636 1 142 3 424 20 416 5 245 10 179 50 771 5 240 63 833 577 2 622 881 11 418 9 627 52 278 1 414 - 10 234 Sub-total 1 079 547 292 942 216 892 190 815 Deferred grant /Committed funds transferred (SANBI) (4 174) (20 122) (35 000) (103 280) Total revenue 1 075 373 272 820 182 072 87 535 19

Public Entities Revenue and Expenditure as at 31 September 2017 SANParks R’000 SANBI SAWS iSimangaliso Total revenue (1 075 373) (272 820) (182 072) (87 535) **Total expenditure 925 752 252 025 178 741 55 816 Surplus/(Deficit) 149 621 20 795 3 331 31 719 **SANBI’s Expenditure includes an amount of R41 834m for Capital expenditure. **SAWS’s Expenditure includes the amounts for Depreciation and Amortisation R17 234m. 20

Public Entities Revenue and Expenditure as at 30 September 2017 21

Public Entities Surplus as at 30 September 2017 SANParks R’000 SANBI SAWS iSimangaliso Surplus/(Deficit) 149 621 20 795 3 331 31 719 Reason Tourism revenue generated from Conservation and Concession fees. Project Revenue not realised in time. Due to under expenditure: Compensation of Employees. Non-Cash/Accounting Surplus, (GRAP23) 22