1. Second & Third Quarter Report Presentation
Portfolio and Select Committees
Second & Third Quarter Report Presentation
February 2016

2. Vision: to create Africa’s greatest conservation-based tourism destination driven by community empowerment
Mission: To protect, conserve and present the Wetland Park and its World Heritage Values for current and future generations in line with the standards laid down by UNESCO and the World Heritage Act, and to deliver benefits to communities living in and adjacent to the Park by facilitating optimal tourism and related development

3. High-Level Structure Minister Board Chief Executive Officer
Park Operations
Director
Business
Research, Policy & Planning
Senior Manager
CFO

4. Synopsis Second Quarter Results
Key Performance Indicator
Programme
Info not provided
No milestone
Off target
Work in progress
On target
Park Operations 1 8
Transformation 5
Commercialisation/Tourism
Corporate Governance 4
Total 2 22

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

6. Performance indicator Achievements/Challenges/
SO: To ensure the World Heritage Values are conserved
Performance indicator
Baseline
Annual target
2015/16
3rd Quarter Target
Quarter 2
Quarter 3
Achievements/Challenges/
Corrective measures
Detection of poaching incidents within 2 weeks
2 weeks
2weeks
Environmental monitors programme initiated (30 new monitors deployed to various sections of the Park)
Detection of illegal developments within 48 hours
48 hours
48hrs
Response to EIA’s and reported developments
100%
5 environmental audits 5 1
Total = 4
15000ha of land rehabilitation
15000ha
15000ha follow-up/ 500ha initial/ 4 wetlands
3875
8421ha
16125ha
Total =37172ha cleared in total; Have cleared in excess of target as a result of additional funding

7. Performance indicator Achievements/Challenges/
SO: To ensure the World Heritage Values are conserved
Performance indicator
Baseline
Annual target
2015/16
3rd Quarter Target
Quarter 2
Quarter 3
Achievements/Challenges/
Corrective measures
Completion of annual game management programme
Completion of annual programme
Annual game management programme completed
Nil offtakes or introductions
3 rhinos
7 rhinos
Additional unanticipated translocations completed in quarter 3 as part of the drought management strategy (moved rhino from uMkhuze to other sections of the Park)
Applications in buffer actioned
80%
100%
Initiate implementation of hydrological solution for St Lucia Estuary
Preferred solution initiated
Implementation of preferred solution subject to availability of funds
Tender concluded and awarded
tender process initiated
tender awarded
Work will commence in May 2016; equipment is being customised for salt water use. The cost of sand removal is much higher than anticipated. Additional funding is being sought.
Complete annual infrastructure programme
Annual programme achieved
3 tenders issued
tenders initiated
3 tenders issued; 2 awarded; 1 failed
Q3 = 2 tenders concluded and awarded valued at R140million/1 tender failed – will be reissued in last quarter of the year in three clusters;
The drought may become a factor as water is needed for construction; water availability and requirements are assessed on a continuous basis

8. 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

9. Performance indicator Achievements/Challenges/
SO: to improve access to work and income generation activities
Performance indicator
Baseline
Annual target
2015/16
3rd Quarter Target
Quarter 2
Quarter 3
Achievements/Challenges/
Corrective measures
Creation of temporary jobs
1514
1530
380
161
328
Total =1354
The bulk of the jobs were created in quarter one; achievement over target is attributable to the increase in land rehabilitation budgets
Permanent jobs from park-related activities 23 10 15
Total =15
2 internal posts were created/a decision was made to retain all the interns under the groen sebenza programme for a further year as part of the board approved human resource development strategy
BEE smme’s through iSimangaliso programme 82 50
Programme was revised to reduce the costs of participation per smme enabling the inclusion of more participants
BEE procurement
71%
86%
87%
Achievement due to additional budgets for landcare – work allocated is 100% BEE/local
Training
400 people
100
545
566
Total =1111 people
The training programme was accelerated to coincide with revised project roll-out/ as well as for additional/unplanned contractors retained under the additional funding for land care

10. 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

11. Performance indicator Achievements/Challenges/
SO: to improve financial sustainability
Performance indicator
Baseline
Annual target
2015/16
3rd Quarter Target
Quarter 2
Quarter 3
Achievements/Challenges/
Corrective measures
Increase revenue
R11.9m
R16.1m
R5.38m
R5.0m
R5.5m
Total =R14.3m
Maintain visitor prior year levels
533451
178257
120617
167299
Total =
The Park is primarily a domestic tourism destination – recessionary factors could be playing a role in visitor numbers/there have been some challenges with the international tourism market due to inter alia visa requirements
Implementation of annual environmental education programme
2700 children
2700
675
3150
1610
Total = 7120
The increases is due to a rhino education drive in conjunction with various partners, such as the Kingsley Holgate foundation, who invited iSimangaliso to participate
40 schools in school awards 40 30
Total = 75
The school awards was linked to the rhino awareness drive resulting in a greater number of competition entries

12. Performance indicator
SO: to improve financial sustainability
Performance indicator
Baseline
Annual target
2015/16
3rd Quarter Target
Quarter 2
Quarter 3
Corrective measures
Implementation of annual communication programme with claimants and traditional councils 12
Workshops/meetings 3 6 10
Total = 23
Internal decision was made to step-up communication with land claimants and traditional councils
Implementation of annual communication programme with groups other than local community eg government, ngos
24 newsflashes 24 9
Total = 19

13. 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

14. SO: effective financial management
Performance indicator
Baseline
Annual target
2015/16
3rd Quarter Target
Quarter 2
Quarter 3
Achievements/Challenges/
Corrective measures
Unqualified audit -
Tabling of annual report
On 31 August
Table annual report
Tabled on due date
SO: to cultivate an environment that will make iSimangaliso an employer of choice
Performance indicator
Baseline
Annual target
2015/16
3rd Quarter Target
Quarter 2
Quarter 3
Achievements/Challenges/
Corrective measures
Staff retention rate
80%
SO: to make research relevant to park management and transform the research sector
Performance indicator
Baseline
Annual target
2015/16
3rd Quarter Target
Quarter 2
Quarter 3
Achievements/Challenges/
Corrective measures
Reports tabled quarterly
4 reports
1 report 1
Total = 3

15. Financial Overview

16. Accounting revenue for the period 31 December 2015 is 0
Accounting revenue for the period 31 December 2015 is 0.5% below budget – this is due to recognition principles of GRAP 23 Park revenue has increased by 18.6% due to the introduction of an overnight levy. Expenditure is 18.2% below budget. This is attributable to cost containment strategies. Accounting surplus for the period ended 31 December 2015 is R10.6m. This is a non-cash surplus and is the result of the accounting policies such relating to grants (GRAP23).

17. Year to Date
Actual
Variance
Revised Budget
Income: R
Net Interest Received/(Paid)
12.3 %
Fees received
(48 791)
(3.0)%
Grants
(4 887)
(0.0)%
Park Revenue
18.6 %
Sundry Income
( )
(73.8)%
Projects net profit/(loss)
( )
(5.9)%
Total income
( )
(0.5)%
Expenditure:
Audit Fees
(20 151)
(1.8)%
Advertising, Marketing & Promotion
40 668
9.8 %
Depreciation
6.6 %
Game Purchases
( )
(227.1)%
98 038
Insurances & Licences
(15 317)
(9.9)%
Maintenance & Repairs
40 349
0.7 %
Personnel Costs (Net of Charge-outs)
27.2 %
Professional & Tech Fees
31.4 %
Telephone Fax & Internet
(7 420)
(2.1)%
Travelling Expenses
31.6 %
Workshops & Meetings
(85 449)
(87.3)%
97 867
Other expenses (Net of Charge-outs)
32.1 %
Total expenditure
18.2 %
Net Profit/(Loss) ~

18. Auditor General Matters
IT Framework – iSimangaliso has an IT framework but it is contained in multiple documents. This must be consolidated into one document consistent with the Treasury framework – this is in process

19. SIYABONGA – THANK YOU