1. Portfolio and Select Committees
Quarter /19 Reports
June 2018

2. QUARTER /19

3. Synopsis first Quarter 2018/19 Results
Quarter one
Year to Date
Programme
Off target
Work in progress
On target
Park Operations 3 7
Transformation 2
Commercialisation/Tourism 4
Corporate Governance 1 5
Total 9 19

4. Programme One: Conservation & Park Operations Strategic objective: to ensure the world heritage values are conserved

5. Programme One: Conservation & Park Operations Strategic objective: to ensure the world heritage values are conserved

6. SO: To ensure the World Heritage Values are conserved
Performance indicator
Baseline
Annual target
2018/19
Qu1 target
Qu1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Number of park management meetings 6 2
KPI met.
Meetings were held on 19/04/2018 and 07/
Number of new environmental audits completed 5 1
Target exceeded
Two new environmental audits completed this quarter
Environmental audit of the Kosi Bay Resort hospitality facilities (campsites, ablution blocks and cabins)
Environmental audit of the Kosi Bay workshop
Number of follow-up environmental audits
Two follow-up environmental audit reports completed this quarter:
Mkhuze dumpsite
Maphelane Dumpsite

7. SO: To ensure the World Heritage Values are conserved
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Number of hectares of invasive alien plants treated
45000ha
5 000
KPI not met
Annexure C and APP completed to standard on due date as required by NRMP Working for Water in line with allocated budget.
Site inspections completed and contracts prepared in anticipation for project implementation.
No funds received YTD so no hectares achieved this quarter.
Number of kilometres of accessible coastline cleaned
320
KPI met
The coastline is cleaned by iSimangaliso’s service provider, Katanga Cleaning. The entire coastline of 320 km is cleaned each quarter.
Percentage completion of annual burning programme
1470
2500 (ha)
625
345
The burning programme is dynamic and carried out in response to the impact of changing weather patterns on vegetation and other environmental factors
Unfavourable environmental conditions together with unseasonal autumn rains, >200mm, contributed to not achieving the planned 625ha. 325ha of controlled burning was achieved for Q1.

8. SO: To ensure the World Heritage Values are conserved
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Percentage applications processed in respect of developments in the buffer zone 80
100
KPI exceeded.
All applications received for comment during this quarter were processed
Provided comments on the EIA application for the proposed Phinda water pipeline installation on 11 May 2018.
Provided comments on the proposed R22 route re-alignment EIA process on 30 April 2018.
Provided comments on the proposed border fencing EIA process on 31 May 2018
Percentage of identified unauthorised activities actioned legally
n/a
None received for actioning during this quarter
Percentage completion of infrastructure maintenance programme 30
KPI met.
Maintenance of roads, water and infrastructure is ongoing. uMkhuze, Eastern and Western shores roads graded and drains cleared. Headwalls repaired

9. Programme One: Conservation & Park Operations ctd… Strategic objective: to ensure effective partnerships and stakeholder relations

10. SO: To ensure effective partnerships and stakeholder relations
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Number of annual stakeholder engagement conducted, including Park Forums 60 15 35
KPI exceeded.
Two more Area Managers were appointed which increased the number of stakeholder engagement meetings
5-year Communication strategy approved
New indicator
5 year Communi-cation strategy reviewed and annual action plan developed
No progress
KPI not met
The process has been delayed. The new organogram places this function under the stakeholder and communications manager in the support services unit. Once this appointment has been finalised, the communication strategy will be reviewed and developed.
Percentage of annual Communication action plan implemented
100
n/a
Nothing planned for this quarter
Number of community based communication events 1 2

11. Programme Two: Transformation Strategic objective: to optimise the empowerment in all activities of the Park in a way that will improve the livelihoods of previously-disadvantaged

12. Performance indicator Achievements/Challenges/Corrective Measures
SO: to optimize socio-economic benefits to communities
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Number of temporary jobs created
530
550 90 62
KPI not met
Working for Water and Working for Wetlands contractors were not in the field for this period. iSimangaliso is awaiting funding from DEA for this financial year. Once funding received this indicator will be on track.
Number of training days
4800
482
518
KPI exceeded
Induction to dangerous game training days conducted:
IP Infrastructure 57
Waste water pond rehab 12
Working for water 436
Buyer introduction workshops conducted for craft groups:13
 New buyer (Ashanti design) for crafts has been introduced to six craft groups and orders placed.
Number of people participating in SMME and skills development programmes 50
100 40 75
75 enterprises were supported through site visits and workshops. The number was more than planned due to appointment of a manager and site visit assistant. Meetings were held with additional SMMEs contracted to Katanga for cleaning & maintenance to assess their support needs.

13. Performance indicator Achievements/Challenges/Corrective Measures
SO: SO: to optimize socio-economic benefits to communities
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Number of students participating in bursary and support programme 31 37 27
KPI exceeded
At the start of the 2018 academic year, there were 30 students on the programme. One additional first year was recruited this quarter.
Of these, 10 senior participated in the two week annual students work based training and 27 students participated in this year’s Annual Student Workshop
BEE spend on majority black owned suppliers as a percentage of qualifying expenditure 55 60 47
KPI not met
The Authority is still awaiting pro-ject funding for EPWP Projects, mainly Working for Water and Working for Wetlands Projects. Once the funding is available, this indicator will be on track. .

14. Programme Three: Tourism/Commercial Strategic objective: to optimise the Park’s revenue generation in a commercially- and environmentally-sustainable manner, that fosters job creation and empowerment of historically-disadvantaged communities

15. Performance indicator Achievements/Challenges/Corrective Measures
SO: to improve financial sustainability
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Revenue from commercial sources
R18.4
R20.7m
5.0
4.5
KPI not met
The Executive position has been vacant since 3rd quarter last year.
There were delays in awarding new licences tendered in March Revenue to increase in the next quarter when the new licences are awarded.
Number of non-paying local entries
New Indicator
32 535
20 224
32535
Free entry promotions to be conducted in the following quarters
Number of paid visitor entries
50 256
59 005
KPI exceeded
 Strong gate control system and new payment system i.e. use of electronic payment system as an option.
Percentage implementation of commercial development plan 60 80 10
KPI met
Charters Creek day visitor and camp site nearing completion. Architectural designs for further development at Charters were conducted.
Consultative meeting to develop the Bhanganek area were held with the Department of Tourism.
The EIA process for the Bhangazi development near completion.
Draft operational model for Bhangazi done.

16. Performance indicator Achievements/Challenges/Corrective Measures
SO: to improve financial sustainability
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Number of marketing events implemented 3 4 2
KPI met
Sodwana Bay Photographic competition: 29 April - ! May
Trail Challenge: 29 June – 1 July
Percentage Implementation of the marketing plan
100 28 25
KPI not met.
The Cape Getaway show scheduled for 6-8 April was cancelled.
Achievements: 3 editorials, 1 media junket, 4 newsflashes, increase in social media posts
Percentage Implementation of infrastructure programme 90 20 31
KPI exceeded.
Field ranger accommodation, uMkhuze hides, campsite and boardwalk are nearing completion..
Tender documents for roads in the North are being finalised and specifications for libraries in schools are in process.

17. Programme Four: Corporate Governance Strategic objective: to ensure that iSimangaliso’s operations are properly funded and cost-effectively managed while maintaining an appropriate system of internal control and reporting of accounting, management, and statutory information

18. Performance indicator Achievements/Challenges/Corrective Measures
SO: effective knowledge management systems
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Percentage of new independent research proposals approved that relate to management 50
KPI met
Of the four research applications approved, two applications were relevant to management as they contribute to groundwater management and the management of invasive alien species.
Park monitoring programme implemented
Monitoring of impacts of St Lucia restoration programme
Review report completed
The Real-time monitoring system is in place and a service provider maintains the system that includes on-line access to real-time data.
Number visitor market surveys 2 1
One visitor market survey completed 1-3 April Five (5) youth from the surrounding area were trained as enumerators.

19. Performance indicator Achievements/Challenges/Corrective Measures
SO: effective knowledge management systems
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Number of learners visiting the Park
4 500
5 000
1 200
1 133
KPI not met
17 schools and 1133 learners made unsolicited visits to the Park. iSimangaliso placed guides with 16 schools. Hosted trips will take place next quarter which will bring the work on track to meet the target.

20. Performance indicator Achievements/Challenges/Corrective Measures
SO: Sound plans, policies and strategies for protected area management
Performance indicator
Baseline
Annual target
2018/19
Qu 1 target
Qu 1 actual
YTD target
YTD actual
Achievements/Challenges/Corrective Measures
Number of plans completed (wetland rehabilitation and boat launch management plan) 2
Draft scope of work for launch management plan completed, awaiting internal comment. To be tendered next quarter.
iSimangaliso is in contact with Working for Wetlands who have indicated that plan for Wetland rehabilitation is scheduled to take place in due course, no dates have been finalised.
Number of plans implemented (wetland rehabilitation and MPA extension)
Wetland Rehabilitation projects: PIP and Annexure C completed to standard on due date as required by NRMP Working for Wetlands in line with allocated budget.
Site inspections completed and contracts prepared in anticipation for project implementation.
First tranche of funding was received in the last week of June so work can only commence in the second quarter.

21. Performance indicator Achievements/Challenges/Corrective Measures
SO: effective financial management. Appropriately skilled and diverse workforce. Effective and efficient ICT systems
Performance indicator
Baseline
Annual target
2018/19
Qu 1 Target
Qu 1 Actual
YTD Target
YTD Actual
Achievements/Challenges/Corrective Measures
Unqualified external audit opinion
Unqualified audit
AG audit
PFMA and Treasury regulations quarterly compliance report completed
KPI met.
Percentage retention of skills 90
100
KPI met
No resignations this quarter
Number of business system improvements implemented
New indicator 2
Tender documentation prepared awaiting approval to proceed with tender process

22. SUMMARY OF FINANCIAL RESULTS: JUNE 2018
3 Months to date
to Jun-17
to Jun-18
Budget
Operating results:
Income
R 43.3 m
R 39.6 m
R 31.2 m
grants
R 7.0 m
R 8.2 m
Park revenue
R 4.4 m
R 4.5 m
R 4.8 m
projects net profit/(loss)
R 25.7 m
R 22.9 m
R 12.9 m
other
R 6.2 m
R 4.0 m
R 5.3 m
Expenditure
R 24.4 m
R 29.0 m
depreciation
R 7.3 m
R 8.6 m
R 10.1 m
maintenance & repairs
R 4.2 m
R 5.4 m
personnel costs
R 5.2 m
R 6.6 m
professional fees
R 2.5 m
R 1.1 m
R 2.0 m
R 5.5 m
R 7.9 m
Net profit/(loss)
R 18.9 m
R 10.6 m
R 0.0 m
Grants to total income
16.2 %
20.7 %
26.3 %
Profit to revenue
43.6 %
26.8 %
0.0 %

23. 2018/19 Quarter 1 Financial Performance cont.
Income exceeds the budget by R8.4m for the period April to June This difference is due to differences in the basis of preparation of the budget (modified cash basis as required by the PFMA) and the financial statements (GRAP as required by the PFMA and the application of GRAP23).
The fees received under Other Income is below budget as a result of delays in the funding for the land rehabilitation project. This will even itself out by the end of the financial year.
Park revenue decreased due to delays in awarding concession licence as a result of capacity in the tourism directorate.

24. 2018/19 Quarter 1 Financial Performance cont.
Expenditure is above budget by R2.2m.
The repairs and maintenance costs increased as a result of the fence maintenance on the new fences erected in the Park.
Personnel costs are below budget as a result of finalisation of the new structure and approval of appointments and critical posts to be filled.
The depreciation is below budget due to the delay in the award of the final completion certificate as a result of the snags not been completed and additional work requested. This includes the gate entrances and the meet & greet.
Professional and technical fees reduced due to staff empowering themselves with some of the tasks assigned to consultants.

25. 2018/19 Quarter 1 Financial Performance cont.
Accounting revenue for the period ended 30 June is R39.6m. The accounting surplus for the period is R10.6m. This is a non-cash surplus and is the result of the accounting policies relating to grants (GRAP23). In other words R29.0m has been recognised into income in respect of capital expenditure. The reciprocal expense reflects in the balance sheet under the fixed assets.

26. SIYABONGA – THANK YOU