2 nd & 3 rd Quarterly Performance Report, Audit Matters and Financial Position Mr Fundisile Mketeni: Chief Executive Officer (SANParks)

Presentation Content 1.Vision and Mission 2.High Level Structure /16 SANParks Strategy Map 4.Amendment to indicators and targets 5.Performance Dashboard 6.2 nd Quarterly Performance Reporting /15 Financial Performance 8.AG Findings (including IT Governance Framework) 2

SANParks Vision and Mission Vision A Sustainable National Park System Connecting Society Mission To develop, expand, manage and promote a system of sustainable national parks that represents biodiversity and heritage assets, through innovation and best practice for the just and equitable benefit of current and future generations 3

Performance Reporting Framework 4

2015/16 Strategy Map 5

2015/16 2 nd & 3 rd Quarters Performanc 6

Legend 7 Target achieved or exceeded - Good Performance Work in Progress - Caution Target not achieved – Underperformance No target planned for reporting period Indicator / Target amended at mid-year Information not provided

Amendment to Indicators – October 2015 SOIndicatorAnnualQuarterlyReason for amendment FormerNewFormerNew 1Budget variance - Income0% 1:1 0% 1:1 Amended to a break- even target, Income:Expend to meet PFMA requirements 1Budget variance - expenditure 0% 2 METT Score 70% Milestones detailed METT assessment only every 2 nd year, not quarterly 2 Total Hectares of Land Rehabilitated / Restored (Initial) or New (ha) , ,026 Targets amended in response to DEA approvals and budget – August Total Hectares of Land Rehabilitated / Restored (Follow-up) (ha) , , Total of Land Rehabilitated / Restored (Wetlands) (m³) m³ (26 sites) 6, m³ (19 sites) 2,603 8

Amendment to Indicators – October 2015 SOIndicatorAnnualQuarterlyReason for amendment FormerNewFormerNew 2 Total Number of Park Management Plans Reviewed and Submitted 222MilestonesReview and submission happens annually and not quarterly 2 Total Number of Species Protection Interventions Implemented 666MilestonesInterventions only fully implemented at year end 3 Total Number of Full-time Equivalent Jobs Created (EPWP) ,942 4,691 Targets amended after approval by DEA of budget and projects Aug Total Number of SMMEs / Enterprises Supported

Amendment to Indicators – October 2015 SOIndicatorAnnualQuarterlyReason for amendment FormerNewFormerNew 6 Women as % of Management36%50.0% 36%41.5% Alignment with Government targets as per PCEA instruction 6 People with Disabilities1%2.0% 1%1.5% 10

BIRDS-EYE VIEW ON PERFORMANCE YTD 11

Performance Dashboard 12

Performance Dashboard 13 Corporate Strategic Objectives Performance Indicators3rd Q Target Actual Performance Annual Target Q1Q2Q3 SO2: Enhanced Conservation and Ecological Integrity of National Parks System 2.1 METT Score Implementati on of the corrective actions per park 70.0%74.0% Implemen tation on target 2.2 Total Hectares of Land Rehabilitated / Restored (Initial) or New (ha) 25,02633,36814,73724,61135, Total Hectares of Land Rehabilitated / Restored (Follow-up) (ha) 152,021202,69438,43393,609177, Total of Land Rehabilitated / Restored (Wetlands) (m³) 2,6036,508004, Total Area Added to National Parks (Terrestrial) (ha) Total Area Added to National Parks (Marine) (km2)

Performance Dashboard 14 Corporate Strategic Objectives Performance Indicators 3rd Quarterly Target Actual Performance Annual Target Q1Q2Q3 SO2: Enhanced Conservation and Ecological Integrity of National Parks System 2.4 Total Number of Park Management Plans Reviewed and Submitted Completion of Lower Level Plans for MZ NP and KG NP 200 Complete d draft lower level plans for both parks. 2.5 Total Number of Species Protection Interventions Implemented (5) - Compulsory interventions to protect rhinos: Interventi ons all on target 2.6 Total Number of Cultural Heritage Interventions Implemented % of new research projects relevant to SANParks key issues 72.5%73.0%77.5%76.0%75.6% 2.8 Total Number of Peer Reviewed Research Publications

Performance Dashboard 15 Corporate Strategic ObjectivesPerformance Indicators 3rd Quarterly Target Actual Performance Annual Target Q1Q2Q3 SO3: Optimised Socio-economic Beneficiation 3.1 Total Number of Free Access Entrants 18, ,028 53,028 (cum) 3.2 Total Number of Environmental Education Impact Assessment Tools Developed (cum) 3.3 Total Number of Participants in Environmental Education Programme 139,200185,60041,65689, ,453 (cum) 3.4 Total Number of Full-time Equivalent Jobs Created (EPWP) 4,6917,9421,2002,6274, Total Number of Full-time Equivalent Jobs Created (Other) Total Number of temporary Jobs Created through Socio- economic initiatives Total Number of SMMEs / Enterprises Supported Number Community Contractual Agreements in Place 15000

Performance Dashboard 16 Corporate Strategic ObjectivesPerformance Indicators 3rd Quarterly Target Actual Performance Annual Target Q1Q2Q3 SO4: Enhanced Stakeholder Engagement 4.1 Total Number of Proactive Media Engagements (Articles) Total Number of Proactive Media Engagements (Media Events) Media Reputation Rating95% 97.0%99.0%99% SO5: Effective and Efficient Corporate Governance 5.1 Auditor General Audit Report unqualified with no other matters Unqualified with no other matters 5.2 % progress against Risk Response Plan %45.0% %40.0% %30.0% 5.3 % Compliance with Governance Requirements 80.00% 100% 100.0% 5.4 Total Number of ICT Strategy Initiatives Implemented per Schedule

Performance Dashboard 17 Corporate Strategic Objectives Performance Indicators 3rd Quarterly Target Actual Performance Annual Target Q1Q2Q3 SO6: Strengthened Human Capital and Management 6.1 Black as % of Management 56,5% 57% 55.2%54.9% 6.1 Women as % of Management 41.5%50.0%34.5%41.4%35.1% 6.1 People with Disabilities1.5%2.0%1.2%1.3% 6.1 Total Male: Female Ratio 1,8:1 1.8%1.79:1 6.2 % of Employees Meeting Minimum Educational Requirements (C and Upper) 94.0% 97.3%95.0% 6.3 % of Performance Appraisals Completed (C and Upper) 80.0%100.0%60.0%46.0% 6.4 % Success Rate at CCMA83.8%85.0%100.0% 6.5 % progress against implementation of Skills Development Programme 80.0%85.0%20.0%65.0%

DETAILED PERFORMANCE (CUMULATIVE TO END QUARTER 3) 18

SANParks Cumulative Quarter 3 SO 1: Optimised Economic Contribution Through Tourism and Associated Activities Performance indicator Baseline Annual target 2015/16 Achieveme nts (cumulative to end Q3) ChallengesCorrective measuresOverall perfor mance 1.1 Revenue : Expenditure 1:1 1:1 (break even) 1,12:1NoneN/a 1.2 Gross / Operating Tourism Revenue (YoY) 7.5% 11% 9.2% (slightly off target) Target might have been over ambitious given economic climate; Declining visitor numbers to national parks resulted in a 0.63% (equivalent to R1.665 million) less income realised from conservation fees than budget, most of which is generated from international market. Easter weekend fall within financial year New revenue generating projects coming on line shortly SANParks is cautiously optimistic that annual target will be achieved 19

SANParks Cumulative Quarter 3 SO 1: Optimised Economic Contribution Through Tourism and Associated Activities Performance indicator Baseline Annual target 2015/16 Achievements (cumulative to end Q3) ChallengesCorrective measures Overall perfor mance 1.3 Total Number of Revenue Generating Products Implemented 5 75 NoneN/a 1.4 Fundraising Policy & Strategy Developed and Implemented New 100%75% NoneN/a 20

SANParks Cumulative Quarter 3 SO 1: Optimised Economic Contribution Through Tourism and Associated Activities Performance indicator Baseline Annual target 2015/16 Achievements (cumulative to end Q3) ChallengesCorrective measures Overall perform ance 1.5 Accommodation Occupancy 69.9% 72.50%75.9% NoneNot applicable 1.6 Customer Satisfaction Index 80.2% 82%82.2% NoneNot applicable 1.7 Total Number of Visitors to National Parks ,600, NoneNot applicable 21

SANParks Cumulative Quarter 3 SO2: Enhanced Conservation and Ecological Integrity of South Africa’s National Parks Performance indicator Baseline Annual target 2015/16 Achievements (cumulative to end Q3) ChallengesCorrective measures Overall perform ance 2.1 METT Score 69.0% 70.0% Implementation of the corrective actions per park NoneNot applicable 2.2 Total Hectares of Land Rehabilitated / Restored (Initial) or New (ha) ha 33,36835,301 NoneNot applicable 2.2 (Follow-up) (ha) ha 202,694177,301 NoneNot applicable 2.2 (Wetlands) (m³) m³ (29 sites) 6,5084,417 NoneNot applicable 22

SANParks Cumulative Quarter 3 SO2: Enhanced Conservation and Ecological Integrity of South Africa’s National Parks Performance indicator Baseline Annual target 2015/16 Achievemen ts (cumulative to end Q3) ChallengesCorrective measures Overall performan ce 2.3 Total Area Added to National Parks (Terrestrial) (ha) ha NoneNot applicable 2.3 (Marine) (km2) 0 00 NoneNot applicable 2.4 Total Number of Park Management Plans Reviewed and Submitted 2 2 Completed draft lower level plans for both parks. NoneNot applicable 2.5 Total Number of Species Protection Interventions Implemented New 6 5 Interventions all on target NoneNot applicable 23

SANParks Cumulative Quarter 3 SO2: Enhanced Conservation and Ecological Integrity of South Africa’s National Parks Performance indicator Baseline Annual target 2015/16 Achievemen ts (cumulative to end Q3) ChallengesCorrective measures Overall performan ce 2.6 Total Number of Cultural Heritage Interventions Implemented 5 44 NoneNot applicable 2.7 % of new research projects relevant to SANParks key issues 72.0% 72.5%75.6% NoneNot applicable 2.8 Total Number of Peer Reviewed Research Publications NoneNot applicable 24

SANParks Cumulative Quarter 3 SO 3: Optimised Socio-Economic Beneficiation Performance indicator Baseline Annual target 2015/16 Achievements (cumulative to end Q3) ChallengesCorrective measures Overall perform ance 3.1 Total Number of Free Access Entrants ,20053,028 NoneNot applicable 3.2 Total No of Env. Education Impact Assessment Tools Developed NoneNot applicable 3.3 Total Number of Participants in Environmental Education Programme , ,453 participants as opposed to the Q- ly target of 139,200. Target marginally missed DBE Policy restricting Extra- curicular activities outside school grounds during schooling hours contributes to reducing learners' numbers. Engagement with DBE re school tour policies and expanding holiday programmes 25

SANParks Cumulative Quarter 3 SO 3: Optimised Socio-Economic Beneficiation Performance indicator Baseline Annual target 2015/16 Achievemen ts (cumulative to end Q3) ChallengesCorrective measuresOverall perform ance 3.4 Total Number of Full-time Equivalent Jobs Created (EPWP) 5, 686 7,9424,422 Delays in approval of Business Plans Budget cuts Management capacity in Garden Route EPWP Interventions in Management system to improve efficiency Management positions in GNP prioritised 3.4 Total Number of Full-time Equivalent Jobs Created (Other) New This is Groen Sebenza and SANParks Interms Number of interns left programme due to full time employment Full time employment is encouraged; - numbers to stabilise toward end of year instead of increase 26

SANParks Cumulative Quarter 3 SO 3: Optimised Socio-Economic Beneficiation Performance indicator Baseline Annual target 2015/16 Achievemen ts (cumulative to end Q3) ChallengesCorrective measures Overall performan ce 3.5 Total Number of temporary Jobs Created through Socio-economic initiatives New 5044 NoneNot applicable 3.6 Total Number of SMMEs / Enterprises Supported NoneNot applicable 27

SANParks Cumulative Quarter 3 SO 3: Optimised Socio-Economic Beneficiation Performance indicator Baselin e Annual target 2015/16 Achievements (cumulative to end Q3) ChallengesCorrective measuresOverall performan ce 3.7 Number Community Contractual Agreements in Place 4 50 (See next)(see next) 28

SANParks Cumulative Quarter 3 IndicatorAchievements (ChallengesCorrective measures 3.7 Number Community Contractual Agreements in Place No community contractual agreements were concluded. Contractual Park Agreement with Richtersveld Community, agreed in principle.. Bevhula/ Gidjani : Ecological assessment done; Community Trust establishment commenced; EPWP funded rehabilitation under way. Mjejane: Several conflict resolution interventions beneficiary list is developed. The Community Trust is to be established,. Nkambeni: Ecological assessment concluded. Community Trust establishment commenced. EPWP funded land rehabilitation commenced. Mdluli: litigations have been resolved. Benefit products identified. Khomani San: Game donations finalised Time consuming negotiations Legal process to establish Community Trsusts Litigation (Mdluli) Conflict resolution (Mjejane) Leverage goodwill created towards SANParks to expedite concluding community agreements 29

SANParks Cumulative Quarter 3 SO 4: Enhanced Stakeholder Engagement Performance indicator Baseline Annual target 2015/16 Achievement s (cumulative to end Q3) ChallengesCorrective measures Overall performa nce 4.1 Total Number of Proactive Media Engagements (Articles) NoneNot applicable 4.1 Total Number of Proactive Media Engagements (Media Events) NoneNot applicable 4.2 Media Reputation Rating New 95%99% NoneNot applicable 30

SANParks Cumulative Quarter 3 SO 5: Effective and Efficient Corporate Governance Performance indicator Baseline Annual target 2015/16 Achievements (cumulative to end Q3) ChallengesCorrective measures Overall perfor mance 5.1 Auditor General Audit Report Unqualified with no other matters Unqualified with other matters NoneNot applicable 5.2 % progress against Risk Response Plan NewHigh: 90% 45.0% NoneNot applicable NewMedium: 70% 40.0% NoneNot applicable NewLow: 20% 30.0% NoneNot applicable 31

SANParks Cumulative Quarter 3 SO 5: Effective and Efficient Corporate Governance Performance indicator Baseline Annual target 2015/16 Achievements (cumulative to end Q3) ChallengesCorrective measures Overall perfor mance 5.3 % Compliance with Governance Requirements 75.0% 100% NoneNot applicable 5.4 Total Number of ICT Strategy Initiatives Implemented per Schedule NoneNot applicable 32

SANParks Cumulative Quarter 3 SO 6: Strengthened Human Capital indicator BaselineAnnual Q3ChallengesCorrective measures 6.1 Black as % of Management 55% 57%54.9% Resignation of black managers; Recruitment policy amended; EE and succession plan to be reviewed 6.1 Women as % of Management 34% 50.0%35.1% Original target met and exceeded; target increased upwards to be aligned with National Targets; Insufficient vacancies to meet target Recruitment policy and procedure amended; Women Forum launch – making SANParks attractive for professional woman 6.1 People with Disabilities 0.9% 2.0%1.3% As above Nature of work limit categories of disabilities Universal access standards in work place not yet achieved Continue with declaration drive Identify and ring fence posts Engage organised structures 6.1 Total Male: Female Ratio 1,8:1 1.79:1 NoneNot applicable 33

SANParks Cumulative Quarter 3 SO 6: Strengthened Human Capital Indicator BaselineAnnual AchievedChallengesCorrective measures 6.2 % of Employees Meeting Minimum Educational Requirements (C and Upper) 93% 94.0%95.0% NoneNot applicable 6.3 % of Performance Appraisals Completed (C and Upper) 80% 100.0%46.0% Delay in roll out of new performance system – include CMC PM training; individual follow-up 6.4 % Success Rate at CCMA 80% 85.0%100.0% NoneNot applicable 6.5 % progress against implementation of Skills Development Programme 82% 85.0%65.0% Internal processes (training committee functioning) Skills Development Plan approval prior to commencement of financial year 34

35 Summary of YTD Performance

Financial or Trading Position 36

37 Statement of Financial Performance

Statement of Financial Position

39 SANParks Operating Surplus / (Deficit) Quarterly performance is based on management accounts incremental per month IndicatorBudget R ‘000 Actual Variance % Total IncomeR R %R Total ExpensesR R %R Bottom Line surplusR R %R

40 Update on IT Governance Model A Governance improvement programme was developed. Relevant COBIT processes were grouped together into five (5) Programme Objectives as follows:

41 Update on IT Governance Model Progress to date: Governance and Strategy ICT Governance Framework Policy completed and approved by Board, and is currently being implemented Charters for IT Steering Committee and IT Portfolio Planning Committee adopted and approved by EXCO, and are currently being implemented Risk and Security Management: ICT Security Policy and Implementation Plan developed, and are currently being implemented Development of Comprehensive Information Security Plan to commence March 2016 Business Continuity Plan development will commence March 2016 ICT Continuity Plan approved by EXCO and is currently being implemented Operations Management Operations management well established and governed Supplier management principles well established and governed SCM policies evaluated for compliance with COBIT standards

42 Update on IT Governance Model Progress to date: Portfolio, Programme and Project Management IT Project Management Office (PMO) re-established, to be operational by March 2016 Value Management office being considered, initially part of PMO Change enablement All encompassing practice addressing all areas of business of which IT is only one element To mature in SANParks in 2016/17 financial year In the interim, any new IT system implementation is done together with business and appropriate training for staff members

Audit Matters 43

` 44 SANParks obtained an unqualified audit opinion on its AFS for the 2014/15 financial year. Two of the strategic objectives as presented in the 2014/15 Annual Performance Plan were qualified.

45 The AGSA raised the following compliance matters relating to the AFS; 1.Irregular expenditure of R Fruitless and wasteful expenditure of R2.951m. Audit Matters - Finance

46 Finding: Irregular expenditure Action Plan SANParks SCM division has implemented a management review process to check suppliers on the NT database. Audit Matters - Finance

47 Finding: Irregular expenditure cont’d Progress SCM has successfully cleared the supplier database of all suppliers who were on the NT database of prohibited suppliers. Furthermore, suppliers are checked against the NT database of prohibited suppliers, prior to processing each purchase order. Internal Audit performed two SCM audits and no findings of this nature were noted. Audit Matters - Finance

48 Finding: Fruitless and wasteful expenditure Action plan Interest on overdue accounts - SANParks staff was trained to follow up suppliers for outstanding invoices. Penalties by SARS – SANParks undertook to verify tax amendments directly with SARS Cash embezzlement – SANParks to enhance fraud detection internal controls. Stock losses – improve general controls over warehouse and fuel station management. Audit Matters - Finance

49 Finding: Fruitless and wasteful expenditure cont’d Progress - Interest on overdue accounts SCM has implemented an invoice tracking register as a control measure to ensure adherence to 30 days payment to suppliers, thus avoiding interest charges. Internal audit conducted two SCM audits and no findings relating to this matter were noted. Audit Matters - Finance

50 Finding: Fruitless and wasteful expenditure cont’d Progress – Cash embezzlement Investigations were finalised and proper disciplinary measures, in adherence to the PFMA and SANParks policies, were taken against affected parties. Existing internal controls were reviewed, root causes identified and additional controls designed to enhance fraud detection controls. Audit Matters - Finance

51 Finding: Fruitless and wasteful expenditure cont’d Progress - Stock losses The inventory procedure manual was drafted and approved. Internal Audit conducted the half yearly stock counts and communicated recommendations. SANParks is in the process of automating the inventory and fuel systems to improve stock control. Audit Matters - Finance

52 Finding: Performance against Predetermined Objectives (AOPO) There were two findings on predetermined objectives, relating to; non-verifiability of the Black Visitor and; non measurability of the Rhino Poaching performance indicators. Audit Matters - AOPO

53 Finding: Performance against Predetermined Objectives (AOPO) Progress Management took the decision to review both performance indicators in the current the APP  The Black Visitors indicator was removed from the current APP. However, due to its importance, management will report statistical trends relating to this indicator in another section of the Annual Report. Also, for the 2016/17 year this is reintroduced in the AOPO and concerns raised by AG addressed through amendments to the Indicator Profile / description Audit Matters - AOPO

54 Finding: Performance against Predetermined Objectives (AOPO) Progress Management took the decision to review both performance indicators in the current the APP  A more suitable performance indicator has been adopted to report on Rhino Poaching incidents. Audit Matters - AOPO

55 Finding: Information Technology Governance Progress ICT Strategy – An ICT Steering Committee was established and its terms of reference were approved by EXCO. The ICT Strategy was approved by the Board in January Audit Matters - Compliance

56 Finding: Non-compliance with regulations Progress Information Security Policy – IT Steering Committee has requested an Information Security Policy to be developed and submitted for approval to EXCO, the Audit & Risk Committee and the Board. Target date for completion is March Audit Matters - Compliance

57 Finding: Non-compliance with regulations Progress Business Continuity and Disaster Recovery Plan – The ICT Service Continuity Plan and the ICT Disaster Recovery Plan was approved at EXCO in July The Corporate Business Continuity Plan, incorporating the ICT Service Continuity and Disaster Recovery plans, is being developed for submission to EXCO in March Thereafter it will be submitted to the Audit & Risk Committee and the Board for its consideration. Audit Matters - Compliance

58 Finding: Non-compliance with regulations Progress User Account Management Process – User access on the VIP HR Management System was reviewed and the appropriate changes were implemented, limiting access and keeping an audit trail. Ongoing monitoring is in place and any deviations are dealt with immediately. Audit Matters - Compliance

Thank You 59