1. QUARTER 2 & /19
Progress report

2. Synopsis 2nd and 3rd Quarter 2018/19 Results
Year to Date
Programme
Off target
Work in progress
On target
Park Operations 2 3 7 8
Transformation
Commercialisation/Tourism 1 6
Corporate Governance 5
Total 10 20 22

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

4. SO: To ensure the World Heritage Values are conserved
Performance indicator
Baseline
Annual target
2018/19
Qu2 target
Qu2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Number of park management meetings 6 2 1 5
KPI met.
Meetings were held on 02/08/2018, 11/09/2018 and 07/12/2018
Number of new environmental audits completed
KPI met
Environmental audist of the Thonga Beach Lodge, Rocktail Bay, Coral Divers and Mseni Lodger tourism accommodation facilities
Number of follow-up environmental audits
Follow up environmental audit of the NL 1 – Mlambomude stream crossing rebuild
uMkhumbe Hunting Camp facilities, Sodwana Bay dumpsite and Sodwana Bay sewage ponds
Number of environmental monitors deployed in iSimangaliso
120
109
117
KPI not met
This is due to resignations after appointments. 8 positions have been filled. Appointment of a further 3 monitors will take place once a suitable workplace has been secured.

5. SO: To ensure the World Heritage Values are conserved
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Number of hectares of invasive alien plants treated
45000ha
20 000
12 679
10 000
13 175
25 853
KPI not met for Q2.
Funding was only received from NRM - DEA on the 20 August The delay resulted in the planned hectares not being achieved in Q2. However good progress has been made in project implementation achieving 25,853ha YTD
Number of kilometres of accessible coastline cleaned
320
KPI met
The entire coastline of 320 km is cleaned each quarter, which includes estuarine shorelines.
Percentage completion of annual burning programme
1470
2500 (ha)
Revised to 1750 (ha)
1250
1396
625 24
1764
KPI met in terms of YTD.
Unfavourable environmental conditions together with unseasonal autumn rains, negatively affected burning plans in Q1. However in contrast conditions particularly in the latter part of Q2 proved more favourable. As a result 1396ha was burnt. In Q3 an uncontrolled fire event was opportunistically turned into a controlled fire with 24ha burnt concluding the burning season.

6. SO: To ensure the World Heritage Values are conserved
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Percentage applications processed in respect of developments in the buffer zone 80
n/a
Applications for telecommunication masts were received in the last week of Q3. These will be processed in Q4 in line with the legislated timeframes..
Percentage of identified unauthorised activities actioned legally
100
KPI met
2 out of 2 (100%) unauthorised activities actioned in Q2
One unauthorised activity was identified during an environmental audit on the 27th of September 2018 where the sewage system of Rocktail Bay lodge facility was leaking
On 18 September 2018 a site visit was undertaken and non-compliance activity was identified wherein the uMhlabuyalingana LM had failed to comply with the Permit.
No unauthorised activities for Q4
Percentage completion of infrastructure maintenance programme 30 29 90
KPI met in terms of YTD
Maintenance of roads, water and infrastructure is ongoing and implemented on the basis of the schedules with the contracted service provider. Early rains required that verge cutting and pruning be stepped up in Q2.

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

8. SO: To ensure effective partnerships and stakeholder relations
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Number of annual stakeholder engagement conducted, including Park Forums 60
(Revised target 120) 25 30 90
KPI met
Annual target revised to 120 due to two more Area Managers who were appointed which increased the number of stakeholder engagement meetings. Total to date is 60 (35 in the first quarter and 25 in the second quarter).
5-year Communication strategy approved
New indicator
5 year Communi-cation strategy reviewed and annual action plan developed
No progress
Not achieved
KPI not met
After the CEO was appointed in September, the restructuring process was completed The restructuring included the position of the Communications/PR Manager that was advertised in December. The appointment will take place in Q4. The appointed will be responsible for the strategy. As an interim measure, the CEO developed a stakeholder strategy and has embarked on a communication process with key stakeholders.

9. SO: To ensure effective partnerships and stakeholder relations
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/ Corrective Measures
Percentage of annual Communication action plan implemented
New indicator
100
Annual Action Plan Implemented as per Q2 milestones
No progress
Not achieved
KPI not met.
Progress on this KPI has been delayed for the same reasons above. Although there has been extensive communication activities since the new CEO, no annual plan is directing the implementation.
Number of community based communication events 1 2
KPI met
In Q2, this event was deferred to Q3.
Community stakeholders participated in a Park wide communication tour where iSimangaliso’s strategy and plan was communicated (27-29/11/2018)
A workshop to present and discuss the mandate and revised strategy was held in Mbazwana with community leadership on 30/11/2018

10. 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

11. Performance indicator Achievements/Challenges/Corrective Measures
SO: to optimize socio-economic benefits to communities
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Number of temporary jobs created
530
550
175 80
140
135
277
KPI not met
Funding for land-care contracts was received late in the financial year – late August 2018, which has delayed the work. On track to meet the annual target.
Number of training days
4800
1900
1703
1930
1603
3824
Training days conducted Q2 and Q3:
Working for water 1208 and 1305
Working for wetlands 152
Environmental monitors /IP Infrastructure budget 132
Tourism upskilling 150 and 98
Art programme 55 and 170
Craft 6
Research terratest 2
Lighthouse maintenance 28
Late payment of NRM funding has delayed implementation but, the annual target will be achieved as training has been scheduled for Q4.
Number of people participating in SMME and skills development programmes 50
100 40 27
29 (3 were seen for 1st time in Q3
105
KPI met.
IN Q3 29 SMMEs were supported of which 26 participated in both Q1 and Q2. 3 were supported for the 1st time in Q3

12. Performance indicator Achievements/Challenges/Corrective Measures
SO: SO: to optimize socio-economic benefits to communities
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Number of students participating in bursary and support programme 31 37
KPI met
31 students participated in the programme for the academic year 2018.
During Q3, 6 students passed. 5 students have withdrawn : 3 due to academic exclusion and 2 due to program non-compliance. The 20 continuing students have passed.
In Q3, a recruitment drive was conducted that led to 43 applications for study in 2019 that will be finalised in Q4. The target is 10.
BEE spend on majority black owned suppliers as a percentage of qualifying expenditure 55 60 40 45 39
KPI not met
Funding for land-care contracts was received late in the financial year – towards the end of August 2018, which has delayed the work. On track to meet the annual target.

13. 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

14. Performance indicator Achievements/Challenges/Corrective Measures
SO: to improve financial sustainability
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Revenue from commercial sources
R18.4
R20.7m
5.0
5.3
6.2
7.1
16.9
KPI exceeded.
New vessel launching fees were introduced.
Above average annual accommodation concession fees received.
Number of non-paying local entries
New Indicator
32 535
23 886
40 770
76 710
KPI met in terms of YTD.
This is due to an enhanced gate control system, increase in local neighbours and the media initiative in publicising free entry.
Number of paid visitor entries
70 256
71 713
75 641
86 106
KPI exceeded
Increased visitors during the festive season.
Percentage implementation of commercial development plan 60 80 35 10 55
KPI met
Architectural designs for further development at Charters presented to executive and approved.
The EIA process for the Bhangazi development submitted.
Entry fees revised and launch site fees introduced.
Permits issued for filming events

15. Performance indicator Achievements/Challenges/Corrective Measures
SO: to improve financial sustainability
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Number of marketing events implemented 3 4 1
KPI met
1 event was hosted in Q2:
iSimangaliso MTB Adventure Tour /09/2018
1 event hosted in Q3 – the Dukuduku sports tournament – 16/12/2018
Percentage Implementation of the marketing plan
100 25
42.5 29
107
KPI exceeded
Shows – The Gauteng Getaway Show 14-16/11/2018 was attended by the marketing department and licensed operators.
The PR programme for Q2 and Q4:
8 editorials, 7 media junkets, 6 newsflashes, increase in followers on social media
Percentage Implementation of infrastructure programme 90 30
KPI met in terms of YTD.
Field rangers’ accommodation completed. Ophanzi gate staff accommodation completed.
uMkhuze hides completed
Sugarloaf boardwalk completed.
Charters creek day visitor and camp site completed.

16. 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

17. Performance indicator Achievements/Challenges/Corrective Measures
SO: effective knowledge management systems
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Percentage of new independent research proposals approved that relate to management 50 57 53
KPI met
Of the 7 research applications approved in Q3, four applications (7/4 is 57%) were relevant to management as they contribute to climate change impacts on national parks, turtles, understanding diversity and ecology of SA sponges, understanding the impact of long-term closure of the Lake St Lucia mouth. Of the total of 19 applications approved to date, 10 were relevant to management
Park monitoring programme implemented
Monitoring of impacts of St Lucia restoration programme
Review report completed
Monitoring 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.

18. Performance indicator Achievements/Challenges/Corrective Measures
SO: effective knowledge management systems
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Number visitor market surveys 2 1
KPI not met in Q3.
The survey will take place in Q4 to coincide with school holidays that begin on 15 March.
Number of learners visiting the Park
4 500
5 000
2800
2652
400
348
4133
KPI not met
There is a shortfall of 267 learners visiting the Park as part of the environmental education programme. The iSimangaliso bus was repaired in Q3 but implementation was difficult due to the school timetable with exams and holidays.
Environmental education trips have been planned for Q4 that meet the annual target.

19. Performance indicator Achievements/Challenges/Corrective Measures
SO: Sound plans, policies and strategies for protected area management
Performance indicator
Baseline
Annual target
2018/19
Qu 2 target
Qu 2 actual
Qu3 target
Qu3 actual
YTD actual
Achievements/Challenges/Corrective Measures
Number of plans completed (wetland rehabilitation and boat launch management plan) 2 1
Boat launch plan will commence in the 3rd quarter.
iSimangaliso is in contact with Working for Wetlands who have indicated that planning for Wetland rehabilitation is scheduled to take place in due course, no dates have been finalised, however it is expected to take place in the 3rd quarter.
Number of plans implemented (wetland rehabilitation and MPA extension)
KPI on track
First tranche of funding was received in the last week of June so work only commenced in the second quarter.
Good progress has been made. Project expenditure is 57% YTD.
It is unlikely that iSimangaliso will implement any activities related to the MPA extension, as declaration of the extension is still in process in DEA. Approval to revise the target has been requested

20. 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 2 Target
Qu 2 Actual
Qu3 target
Qu3 actual
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 94
100
KPI met
2 resignations this quarter
Number of business system improvements implemented
New indicator 2 1
Tender documentation prepared awaiting approval to proceed with tender process

21. SUMMARY OF FINANCIAL RESULTS: DECEMBER 2018
9 Months to date
to Dec-17
to Dec-18
Budget
Operating results:
Income
R m
R 94.8 m
R 93.5 m
grants
R 21.0 m
R 24.5 m
R 24.6 m
Park revenue
R 17.1 m
R 16.9 m
R 15.2 m
projects net profit/(loss)
R m
R 44.9 m
R 37.9 m
other
R 18.4 m
R 8.6 m
R 15.9 m
Expenditure
R 83.9 m
R 88.5 m
depreciation
R 21.5 m
R 25.7 m
R 30.4 m
maintenance & repairs
R 14.1 m
R 19.0 m
R 16.1 m
personnel costs
R 19.9 m
professional fees
R 6.7 m
R 2.1 m
R 6.1 m
R 20.7 m
R 25.6 m
R 20.9 m
Net profit/(loss)
R 76.1 m
R 6.4 m
R 0.0 m
Grants to total income
13.1 %
25.8 %
26.3 %
Profit to revenue
47.6 %
6.7 %
0.0 %

22. 2018/19 Quarter 3 Financial Performance
Income exceeds the budget by R6.4m for the period April to December 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).
Sundry income increased as a result of funds that have also been re-allocated from the community levies to sundry income for the bursary programme – the expenditure is reflected under training.
The fees related to administration and management received is below budget as a result of delays in the funding for the land rehabilitation project. The tranche payment was received on 22 August. This will even itself out by the end of the financial year.
Park revenue increased due to above average annual accommodation concession fees received.

23. 2018/19 Quarter 3 Financial Performance cont
Expenditure is below budget by R5.0m.
The repairs and maintenance costs increased as a result of the fence maintenance on the new fences erected in the Park. A maintenance plan is to be included in the infrastructure allocation from DEA. Personnel costs are below budget as a result of finalisation of the new structure and approval of appointments and critical posts to be filled. Certain critical posts have been advertised and recruitment would be finalised in the 4th quarter.
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 entrance, sugarloaf bus turning circle, walkway and the meet & greet.
Professional and technical fees are below budget. This is a cost containment saving due to staff taking on some of the responsibilities.
Accounting revenue for the period ended 31 December is R94.8m. This is a non-cash revenue and is the result of the accounting policies relating to grants (GRAP23). In other words R44.9m has been recognised into income in respect of capital expenditure. The reciprocal expense reflects in the balance sheet under the fixed assets.

24. SIYABONGA – THANK YOU