Vote 27 : Environmental Affairs Portfolio Committee Briefing Annual Report for period 1 April 2015 – 31 March 2016 Ms Nosipho Ngcaba Director-General Department of Environmental Affairs 30 November 2016

Presentation Outline Audit opinion Expenditure per programme Expenditure per economic classification Expanded Public Works Programmes & Projects Re-classifications 30 days payment report Donor Funding Public Entities Report

Audit Opinion In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Environmental Affairs as at 31 March 2016 and its financial performance and cash flows for the year ended, in accordance with Modified Cash Standard and the requirements of the PFMA. Emphasis of matter I draw attention to the matter below. My opinion is not modified in respect of this matter. Restatement of corresponding figures As disclosed in note 31 to the financial statements, the corresponding figures for 31 March 2015 have been restated as a result of an error discovered during 2016 in the financial statements of the Department of Environmental Affairs at, and for the year ended, 31 March 2015. Additional matter Unaudited supplementary schedules The supplementary information set out on pages 220 to 231 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

Expenditure for the 2015/16 Financial Year per Programme Adjusted Appro-priation R’000 Q1: 1 April - 30 June 2015 Q2: 1 July – 30 Sept 2015 Q3: 1 Oct – 31 Dec 2015 Q4: 1 Jan – 31 March 2016 Total April 15 – March 2016 % Spent 1. Administration 870 184 155 642 232 083 243 954 200 808 832 487 95.7 2. Legal, authorization and compliance 133 921 27 820 31 596 35 278 36 723 131 417 98.1 3. Oceans and coasts 399 529 73 860 99 998 102 730 92 071 368 659 92.3 4. Climate change and air quality 240 149 60 842 66 573 62 072 56 627 246 114 102.5 5. Biodiversity and conservation 730 600 168 784 157 104 158 369 215 606 699 863 95.8 6. Environmental programmes 3 489 633 864 501 888 733 1 082 369 744 037 3 579 640 102.6 7. Chemicals and waste management 79 281 16 853 17 142 20 422 25 323 79 740 100.6 5 943 297 1 368 302 1 493 229 1 705 194 1 371 195 5 937 920 99.9 23% 25% 29% 99.9%

Expenditure per Economical Classification Final Appro-priation R’000 Q1: 1 April - 30 June 2015 Q2: 1 July – 30 Sept 2015 Q3: 1 Oct – 31 Dec 2015 Q4: 1 Jan – 31 March 2016 Total April ‘15 – Jan % Spent Current Payments 1 915 461 379 615 491 978 531 407 510 551 1 912 643 99.9 Compensation of employees Goods and services** 909 477 1 005 984 212 415 167 200 244 322 247 656 226 625 304 782 225 815 283 828 909 177 1 003 466 100.0 99.7 Transfers and Subsidies 3 864 440 963 834 960 164 1 133 297 806 215 3 863 510 Departmental Agencies Foreign Governments Non-Profits Institutions Green fund Expanded Public Works Other Transfers compensation fund, leave gratuity & bursaries 1 104 583 16 000 10 519 300 000 2 428 697 4 641 236 757 725 269 1 808 329 921 3 487 626 182 574 167 369 150 000 799 346 582 370 536 7 032 276 970 1 677 2 427 767 Payment for capital assets* 162 488 24 853 41 087 40 490 54 429 160 859 99.0 PPP New Building: Unitary pmt Machinery & Equipment Software & other intangible 129 356 31 308 1 824 20 985 3 868 31 702 9 385 31 264 9 226 45 405 7 200 29 679 94.8 Payments for financial Assets 908 3 397 104 404 5 943 297 1 368 302 1 493 229 1 705 194 1 371 195 5 937 920 99

Detail Current Expenditure * Goods and services Q1 R’000 Q2 Q3 Q4 Total Consultants, contractors and agency/ outsourced services ** Travel and subsistence - Foreign & Domestic Travel **(Annexure A) 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 49 567 47 538 9 941 15 109 3 867 1 776 4 861 6 758 6 998 2 469 2 759 5 498 2 150 1 694 258 277 4 273 1 407 118 173 43 016 6 037 2 860 19 189 2 324 8 271 19 470 4 883 (664) 2 858 3 512 8 104 3 626 3 242 279 (3 535) 4 029 1 982 120 475 55 245 14 483 17 119 22 294 3 216 17 962 25 059 5 793 427 5 046 5 194 5 378 1 947 2 536 3 435 1 619 551 130 238 33 702 4 197 30 189 25 534 5 394 3 780 24 260 6 926 852 3 639 3 529 4 938 1 608 1 512 817 263 1 966 484 418 453 179 501 34 658 65 277 70 884 12 710 34 874 75 547 24 600 3 084 14 302 17 733 20 570 8 875 7 548 1 376 1 436 9 021 3 017 TOTAL 167 200 247 656 304 782 283 828 1 003 466

Graphical Presentation

Detail Consultants, Contractors and Agency Services * Notes Q1 R’000 Q2 Q3 Q4 Total Consultants, Contractors and Agency Services * External 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 (CITES COP 17) Medical Services: Examinations Transport Graphic Designers Audio visual Services Casual Labourers 53 17 964 2 203 25 208 3 511 127 341 93 16 12 39 261 15 46 647 2 029 56 353 7 898 4 140 77 331 4 398 20 2 709 47 24 303 (231) 50 783 40 367 1 571 92 780 34 14 6 885 33 749 11 863 46 687 36 007 42 300 445 168 3 855 115 122 663 4 093 144 207 98 463 41 845 552 1 504 499 592 65 TOTAL 49 567 118 173 120 475 130 238 418 453 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 Q3 Q4 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 Other: Car valet & wash services/Laundry services/Gifts/Nonlife insurance/Drivers licenses & permits/Achievements and awards/Storage of assets & goods 5 852 4 688 2 195 174 423 336 1 441 869 1 139 339 347 74 92 8 057 6 092 1 843 505 390 115 117 12 831 13 475 3 201 318 178 27 159 26 740 25 124 8 378 1 336 1 338 552 1 809 TOTAL 15 109 2 860 17 119 30 189 65 277 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 Payment for Professional bodies, membership and subscription fees* (R25 123 948) Benguela Current Commission (BCC) Intergovernmental Science –Policy Platform on Biodiversity & Ecosystem Services (IPBES) Commission for the Conservation of Antarctic 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 Q3 Q4 Total Computer Equipment Transport Equipment Furniture fixture & appliances Office Equipment Finance Leases Telecommunication Equipment Printing Equipment Photographic Equipment Medical & Allied Equipment Audio Visual Equipment Kitchen Appliances Survey Equipment Tents, Flags and Accessories Paintings, Sculptures & Ornaments Radio Equipment Learning/training/library equipment Laboratory Equipment Lifting and Handling Equipment Workshop Equipment Domestic Equipment 2 979 358 106 54 73 9 68 65 19 46 8 17 38 25 5 644 1 826 177 162 63 6 193 189 128 14 541 3 996 2 308 129 99 578 22 118 485 679 27 134 15 81 198 174 5 083 1 448 39 (314) 110 32 172 (33) 317 93 7 124 160 (144) 17 702 5 940 451 340 400 136 548 471 1 231 279 36 746 30

Payment of Capital Assets (Continue) Machinery and Equipment Q1 R’000 Q2 Q3 Q4 Total Security Equipment Refrigeration Equipment Ship and Marine Equipment 334 125 51 3 865 8 989 9 123 7 702 29 679

Allocations & Transfers to DEA Public Entities SANParks R’000 SANBI SAWS ISWP TOTAL Allocated Budget 546 979 304 412 160 423 92 769 1 104 583 DEA Operational Infrastructure Grant 278 675 268 304 232 149 72 263 31 628 61 141 702 875 401 708 Transferred (546 979) (304 412) (160 423) (92 769) (1 104 583) (278 675) (268 304) (232 149) (72 263) (0) (31 628) (61 141) (702 875) (401 708) Balance % Spent 100%

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 300 000 1 400 6 832 16 000 1 000 1 287 4 641 331 160 Transferred (300 000) (1 400) (6 832) (16 000) (1 000) (1 287) (4 641) (331 160) Balance % Spent 100%

Allocations & Transfers Environmental Public Works Projects Working for Water R’000 Working on Fire Environmental Projects TOTAL Allocated Budget 857 838 615 684 955 175 2 428 697 Projects Incentives 720 709 137 129 571 665 44 019 794 222 160 953 2 086 596 342 101 Transferred (857 838) (615 684) (954 245) (2 427 767) (720 709) (137 129) (571 665) (44 019) (793 292) (160 953) (2 085 666) (342 101) Balance 930 % Spent 100% 99.9%

Re-Classifications of EPWP Projects to Goods & Services Initial Goods & Services R’000 Working for Water Working on Fire Environmental Projects Total 1 005 911 857 838 615 684 955 175 3 434 608 720 709 137 129 571 665 44 019 794 222 160 953 (1 003 466) (857 838) (615 684) (729 764) (3 206 752) 2 445 930 227 856 Re-classified to Capital 224 481 Per Modified Cash Standards (MCS) transfers to EPWP Projects to be reclassified as goods & services

NOTES These adjustments were made based on a meeting held with AG and DG on the 19 October 2016 to comply with MCS The AG indicated in the meeting that these adjustments were agreed with the Office to the Accountant General, and that she is awaiting a confirmation letter from the OAG Adjusted Annual Financial Statements with additional notes were submitted on the 02 November 2016 The Audit Committee Meeting was held on the 14 November 2016 Unqualified Opinion received on the 16 November 2016

Invoices paid on average within15 days while the legislated baseline is 30 days

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 1 121 970 Botswana Transfrontier Conservation Areas Strategy 813 Germany Climate Change Support Programmes 429 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 UNEP Strengthening Law Enforcement Capabilities to Combat Wildlife Crime for Conservation and Sustainable Use of Species: Target: Rhinoceros 11 556 5 921

Foreign Aid Assistance cont….. 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 4 AEWA: 6th session of the AEWA meeting of parties 1 218 Total 19 848 8 113

Public Entities AFS Review (31 March 2016) Financial Management Services 18

Allocation to Public Entities and Own Revenue for the year ended 31 March 2016 SANParks R’000 SANBI SAWS ISWP DEA Operational and Infrastructure Grant 546 979 304 412 160 423 92 769 Total Transferred 2 356 735 518 458 149 910 93 927 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 1 497 892 37 134 37 189 735 729 48 791 55 285 5 707 11 248 126 645 15 161 120 679 1 305 1 793 7 111 19 022 18 522 653 1 765 68 182 4 805 Sub-total 2 903 714 310 333 186 696 Deferred grant /transfers Other Gains - 857 2 626 Total revenue 519 315 312 959 19

Public Entities Revenue and Expenditure as at 31 March 2016 SANParks R’000 SANBI SAWS iSimangaliso Total revenue (2 903 714) (519 315) (312 959) (186 696) **Total expenditure 2 624 716 485 222 329 308 124 299 Surplus/(Deficit) 278 998 34 093 (16 349) 62 397 **SANParks Expenditure includes an amount of R3 204m for loss on disposal of asset. 20

Public Entities Revenue and Expenditure as at 31 March 2016 21

Public Entities Surplus/ (Deficit) as at 31 March 2016 SANParks R’000 SANBI SAWS iSimangaliso Surplus/(Deficit) 278 998 34 093 (16 349) 62 397 Due to the realisation of the Infrastructure grant income (application of GRAP23 - recognition of grants received) Due to realization of Depreciation and Amortization (R30m) Non-Cash Surplus and is the result of the accounting policies relating to grants (GRAP23) SANParks achieved a cash surplus of R98, 735 (Cash Flow) to cover ongoing business activities. Revenue from grants received are measured at the amount of increase in net assets i.e net proceeds received from DEA. 22

Auditor-General’s Opinion on Public Entities Entity Unqualified/ qualified Emphasis of matter Reason Action SANParks Unqualified None - SANBI Yes Restatement of corresponding figures correction of prior period errors SAWS iSimangaliso