Vote 27:Environmental Affairs Portfolio Committee Briefing Expenditure Report for the period 1 April 2017– 31 March 2018 Quarter 3 and Quarter 4 Financial Management Services Ms Nosipho Ngcaba Director-General Department of Environmental Affairs 9 October 2018 18

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

Expenditure for the 2017/18 Financial Year per Programme Final Appro-priation R’000 Q1: Expenditure 1 April - 30 June 2017 Q2: Expenditure 1 July – 30 Sept 2017 Q3: 1 Oct -31 Dec 2017 Q4: 1 Jan – 31 March 2018 Total 1 April till 31 March 2018 Variance % Spent 1. Administration 922 046 180 264 220 119 279 716 241 947 100 2. Legal, authorization and Compliance 169 594 34 721 39 785 44 488 46 447 165 441 4 153 97.6 3. Oceans and Coasts 434 138 55 772 137 035 110 282 125 524 428 613 5 525 98.7 4. Climate Change and Air Quality 295 824 73 946 72 683 73 050 75 208 294 887 937 99.7 5. Biodiversity and Conservation 695 690 183 626 159 709 162 444 186 881 692 660 3 030 99.6 6. Environmental Programmes 3 908 870 507 373 915 702 1 063 164 1 246 366 3 732 605 176 265 95.5 7. Chemicals and Waste Management 422 052 20 044 24 172 113 021 196 648 353 885 68 167 83.8 6 848 214 1 055 746 1 569 205 1 846 165 2 119 021 6 590 137 258 077 96.2 % Spent 15.4% 22.9% 27.0% 30.9% 96.2%

Expenditure per Economical Classification Final Appro-priation R’000 Q1: Expenditure 1 April - 30 June 2017 Q2: Expenditure 1 July – 30 Sept 2017 Q3: 1 Oct -31 Dec 2017 Q4: Expenditure 1 Jan – 31 March 2018 Total Expenditure 1 April till 31 March 2018 Variance % Spent Current Payments 2 257 488 406 387 522 352 652 230 619 833 2 200 802 56 686 99.7 Compensation of employees Goods and services* Interest and rent on land 1 050 073 1 198 327 9 088 257 941 148 446 278 097 244 255 266 486 385 744 247 530 363 215 1 050 054 1 141 660 19 56 667 99.9 99.6 100.0 Transfers and Subsidies 4 343 106 631 952 995 734 1 143 723 1 370 306 4 141 715 201 391 99.1 Departmental Agencies Foreign Governments Non-Profits Institutions Green fund Expanded Public Works Progr. Waste Management Bureau Recycling Enterprise Support Programme Other Transfers compensation fund, leave gratuity & bursaries 1 196 837 16 000 19 397 110 455 2 911 612 16 261 58 000 14 544 308 774 2 287 316 503 4 388 344 445 1 200 646 725 3 364 182 170 943 529 2 024 361 448 15 910 852 949 24 776 4 768 2 759 706 151 906 33 224 94.8 0.0 42.7 Payment for capital assets 247 609 17 407 51 113 50 211 128 878 PPP New Building Machinery & Equipment Software & Intangible Assets 144 343 89 092 14 174 12 046 5 320 41 48 029 2 615 469 36 014 7 620 6 577 48 254 73 537 7 087 Payment for financial assets 11 6 1 4 Total 6 848 214 1 055 746 1 569 205 1 846 165 2 119 021 6 590 137 258 077 96.2

Graphical Presentation

Detail Goods and Services Expenditure * Q1 R’000 Q2 Q3 Q4 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 29 714 37 215 3 082 6 408 27 356 2 941 233 4 773 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 4 370 2 524 1 321 301 1 848 1 856 (7 425) 167 357 68 069 11 827 16 696 20 344 33 879 8 947 29 003 8 772 614 10 810 (2 649) 4 043 1 130 1 609 105 2 977 1 852 359 145 439 33 028 4 485 38 488 24 218 32 256 6 587 29 105 11 507 552 12 779 12 570 5 312 409 1 119 1 136 1 939 1 594 692 452 798 182 874 33 918 74 339 79 653 78 633 24 255 73 611 33 740 1 587 35 171 22 537 17 314 6 801 5 564 1 838 8 361 6 387 2 279 TOTAL 148 446 244 255 385 744 363 215 1 141 660

Detail: Consultants, Contractors and Agency Services ** Notes Q1 R’000 Q2 Q3 Q4 Total Consultants, Contractors and Agency Services ** Internal Auditors (Grant Thornton R1.219m & Deloitte and Touche R1.896m) Audit Committee: Members fees Communication Research and Environmental Projects (CSIR various Serv Provider Legal Costs (State Attorney Legal Advice R11,247m) Agency Fees: African Marine Solution Group: operating and manning of vessels: SA Agulhas II and Algoa Research Vessel Event Promoters Medical Services: Examinations Transport: Relocation cost Audio Visual and Photography Transport: Waste Management Tyre Recycling Transporters Contractors: Waste Management Tyre Recycling 1 714 49 112 24 194 1 616 75 62 32 2 658 1 200 633 38 74 16 700 2 414 88 350 241 566 43 102 1 127 51 22 69 977 2 994 95 720 407 111 161 129 (2 327) 717 19 37 9 318 6 007 6 381 72 91 45 770 77 027 3 115 128 335 120 189 13 031 190 526 782 800 206 889 TOTAL 29 714 110 288 167 357 145 439 452 798 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. Waste Management Bureau: Came into operation within the Department from October 2017.

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 4 276 1 168 583 231 7 143 7 823 1 266 1 790 191 887 160 630 8 196 4 052 4 003 99 239 8 16 402 8 902 12 420 272 255 4 233 32 421 18 496 19 381 1 145 1 612 270 1 014 TOTAL 6 408 12 747 16 696 38 488 74 339 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 # (R18 495 784.70) 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 (continue) 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 & Equipment Machinery and Equipment Items Q1 R’000 Q2 Q3 Q4 Total Computer Equipment Computer Hardware & Systems: Server / Mainframe Transport Equipment Building Air-con systems Farm/Agriculture Equipment Air, Gas, Light & Temperature Measurement Equipment Domestic Furniture Office Furniture Office Equipment Pump, Plumbing, Sanitation, Waste Equipment Printing Equipment Photographic Equipment Audio Visual Equipment Kitchen Appliances Survey Equipment Security Equipment Ship and Marine Equipment Tents, Flags and Accessories Waste Management Equipment Laboratory Equipment Library Books Medical and Allied Equipment 971 31 3 428 19 8 34 192 27 498 17 95 2 024 22 28 138 (192) 356 6 7 (21) 21 4 735 2 147 154 147 93 78 191 69 4 041 5 510 972 223 25 53 610 39 316 199 5 807 55 521 209 11 771 11 085 1 126 516 59 1 086 621 30 390 233 5 828 401 5 320 2 615 7 620 73 537 89 092

Transfers: Departmental Agencies Final Appro-priation R’000 Q1: Expenditure 1 April - 30 June 2017 Q2: Expenditure 1 July – 30 Sept 2017 Q3: 1 Oct -31 Dec 2017 Q4: Expenditure 1 Jan – 31 March 2018 Total Expenditure 1 April till 31 March 2018 Variance % Spent South African National Parks Operational Infrastructure 285 336 208 768 84 450 60 300 52 275 80 286 156 493 100% South African National Biodiversity Institute 252 728 75 000 64 322 61 869 64 668 South African Weather Service 205 482 35 000 51 371 51 370 iSimangaliso Wetland Park Authority 34 523 100 000 8 631 8 630 Total 1 196 837 308 774 344 445 182 170 361 448 % Spent 25.8% 28.8% 15.2% 30.2% 100.0%

Transfers: Expanded Public Works Projects Public Entities Final Appro-priation R’000 Q1: Expenditure 1 April - 30 June 2017 Q2: Expenditure 1 July – 30 Sept 2017 Q3: 1 Oct -31 Dec 2017 Q4: Expenditure 1 Jan – 31 March 2018 Total Expenditure 1 April till 31 March 2018 Variance % Spent Working for Water Projects Projects Incentives 1 046 533 160 996 102 843 279 180 56 349 285 963 67 229 356 745 37 418 1 024 731 21 802 98% 100% Working on Fire 621 615 81 703 140 470 28 596 124 851 20 426 248 276 108 018 12 255 Environmental Projects 772 314 228 451 44 594 86 772 78 624 283 358 38 277 236 918 102 118 651 642 219 019 120 672 9 432 84% 96% Total 2 911 612 316 503 646 202 943 529 853 472 2 759 706 151 906 94.8% % Spent 10.9% 22.2% 32.4% 29.3% 94.80%

Transfers: Other Agencies Non Profit Organisations ; Other Agencies And Employee Social Benefits Final Appro-priation R’000 Q1: Expenditure 1 April - 30 June 2017 Q2: Expenditure 1 July – 30 Sept 2017 Q3: 1 Oct -31 Dec 2017 Q4: Expenditure 1 Jan – 31 March 2018 Total Expenditure 1 April till 31 March 2018 Variance % Spent DBSA: Green Fund National Association for Clean Air (NACA) National Regulator of Compulsory Specifications (NRCS) Global Environmental Fund (GEF) Environmental Assessment Practitioner Association of SA African World Heritage Fund Kwa-Zulu Natal Conservation Board Recycling Enterprise Support Programme Other Transfers: SSF: Compensation Fund Severance Package Leave Gratuity Bursaries non-employees Donations Vehicle Licences Communication Licences 110 455 1 548 11 313 16 000 4 249 1 000 1 287 58 000 2 643 4 821 5 452 1 053 451 123 1 1 489 167 57 31 1 200 835 1 777 341 360 51 1 055 760 134 24 348 24 776 2 931 1 426 494 (100) 17 33 224 100% 43% Total 218 396 6 675 4 564 18 024 155 909 185 172 85% % Spent 3% 2% 8% 72% 15%

30 Days payment report PERFOMANCE INDICATOR April May June July August September October November December January February March Total invoices paid by Head office 435 591 330.07 238 959 423.69 297 311 070.33 541 317 060.04 273 375 880.73 268 819 676.45 636 515 485.49 296 195 910.61 326 040 470.97 647 031 177.20 492574396.19 647031177.20 Total number of invoices paid by Head office 803 2878 2084 2162 3067 2345 2560 3972 2729 1147 3716 2936 Invoices Paid after 30 days Total invoices paid by CPT 10 152 860.03 37 443 601.35 21 082 547.14 74 003 136.05 143 112 568.69 70 117 806.31 67 610 571.54 138 022 124.15 71 360 578.13 116 341 154.55 110295359.06 116226330.07 Total number of invoices paid by CPT 154 364 263 392 325 335 408 367 328 317 435 429 Avarage days taken to pay invoices Head office 16 19 22 21 18 23 7 10 12 11 Avarage days taken to pay invoices CPT 14 13 8 4 6 Base line 30

Foreign Aid Assistance Name of Donor Country Purpose Budget Allocated R’000 Expenditure United Nations Benguela Current Large Marine Ecosystem Programme 1 196 1 142 Australia Funding agreement in relation to South Africa Land Sector Measurement 4 606 3 736 Botswana Transfrontier Conservation Areas Strategy 813 376 Germany Climate Change Support Programmes 4 290 3 293 NORWAY Capacity Development within the South African National Greenhouse Gas Inventory Unit (New) 2 827 2 138 UNEP Strengthening Law Enforcement Capabilities to Combat Wildlife Crime for Conservation and Sustainable Use of Species: Target: Rhinoceros 13 779 11 957 Preparation of Intended Nationally Determined Contribution (INDC) to the 2015 Agreement under UNFCCC 2 279 2 132 South Africa enabling activities for the preparation of the Third National Communications (TNC) and Biennial Update Report (BUR) 17 342 12 906 Total 47 132 37 680

Public Entities 4th Quarter Review (31 March 2018) Financial Management Services 18

Allocation to Public Entities and Own Revenue for the year ended 31 March 2018 SANParks R’000 SANBI SAWS ISWP DEA Operational and Infrastructure Grant 494 104 327 728 240 482 134 523 Total Transferred 2 000 419 189 614 166 053 171 204 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 and Sundy income 1 889 438 31 344 53 106 9 310 17 221 66 571 **(47 418) 21 965 133 861 14 635 129 301 1 282 6 744 3 239 25 487 22 556 144 140 2 483 - 2 025 Sub-total 2 494 523 517 342 406 535 305 727 Deferred grant /transfers (8 733) 40 600 (106 496) Total revenue 2 485 790 557 942 199 231 ** includes Project committed funds released amounting to (R58 227m) and Other income of R10 808m. 19

Public Entities Revenue and Expenditure as at 31 March 2018 SANParks R’000 SANBI SAWS iSimangaliso Total revenue (2 485 790) (557 942) (406 535) (199 231) **Total expenditure 2 157 551 535 695 385 252 116 623 Surplus/(Deficit) 328 239 22 247 21 283 82 608 **SANBI’s Expenditure includes an amount of R91,973m for Capital expenditure and (R50 730) for Capital expenses transferred to assets. SANParks Expenditure includes an amount of R3 802m for loss on disposal of asset and natural disasters. 20

Public Entities Revenue and Expenditure as at 31 March 2018 21

Public Entities Surplus/ (Deficit) as at 31 March 2018 SANParks R’000 SANBI SAWS iSimangaliso Surplus/(Deficit) 328 239 22 247 21 283 82 608 Reason Due to the realisation of the Infrastructure grant income (application of GRAP23 - recognition of grants received) Due to Infrastructure grants and project conditions, were revenue is received and expensed in the latter period. Mainly due to higher revenue collected (Aviation income: R129m) Non-Cash Surplus and is the result of the accounting policies relating to grants (GRAP23) 22