1. VOTE 30: ENVIRONMENTAL AFFAIRS Portfolio Committee Briefing Annual Financial Statements for 2012/13 19-20 March 2013 1

2. Presentation Outline -Expenditure for 2012/13 -Detail on current expenditure -Detail other operating expenditure -Transfers on EPWP -Transfers to Public Entities & non-profit and other institutions -Capital Expenditure -Departmental expenditure trend -Reprioritization to fund Oceans and Coasts shortfall -Public Entities Reporting 2

3. Expenditure for the 2012/13 Financial Year per Programme ProgrammeFinal appropriation R’000 Expenditure till 15 March 2013 R’000 Expenditure as % of final appropriation R’000 Variance R’000 1. Administration715 751654 87991.5%60 872 2. Environmental quality and protection315 959305 10396.6%10 856 3. Oceans and coasts528 388522 83998.9%5 549 4. Climate change28 90525 58688.5%3 319 5. Biodiversity and conservation567 324565 77399.7%1 551 6. Environmental sector programmes and projects3 018 9942 682 08388.8%336 911 Total5 175 3214 756 26391.9%419 058 3

4. Expenditure per Economical Classification Economical classificationFinal appropriation R’000 Expenditure till 15 March 2013 R’000 Variance R’000 Current Payments1 416 8521 265 158151 694 - Compensation of employees - Goods and services - Interest 579 518 837 101 233 543 310 721 615 233 36 208 115 486 - Transfers and Subsidies3 266 5013 013 945252 556 -Households: Expanded Public Works Programme Departmental entities* - Non-profit institutions* - Public Corporations: DBSA: Green Fund Projects -Other transfers:* Global Environmental Fund Households: Social benefits (leave gratification) North West University Vehicle licenses 2 179 586 760 585 6 888 300 000 12 890 5 538 1 000 14 2 148 257 750 585 6 887 88 774 12 890 5 538 1 000 14 31 329 10 000 1 211 226 - Sub total4 683 3534 279 103404 250 7

5. Continued Expenditure per Economical Classification Economical classification Final appropriation R’000 Expenditure till 15 March 2013 R’000 Variance R’000 Payment for capital assets*491 808477 00014 808 -Machinery and equipment -Buildings and other fixed structures (PPP new Departmental Building) -Software and other intangibles 269 861 220 500 1 447 255 134 220 419 1 447 14 727 81 0 Payments for financial assets160 - Sub total491 968477 16014 808 TOTAL5 175 3214 756 263419 058 8

6. Funds to be rolled over/surrendered R’000 2012/13 Green Fund Expenditure Summary 2012/2013 to DBSA Budget Allocation for the 2012/2013 financial year Management Fees& identified projects (9,360 +79,414) Funds available till 31 March 2013 (to be requested for rollover) 300,000 (88,774) 211,226 Rollover from unitary payment allocation for IT Infrastructure for the New Departmental Building (To be occupied in June 2014) 60 000 Total271 226 6

7. Expenditure graph till 15 March 2013 7 Summary Apr-12May-12Jun-12Jul-12Aug-12Sep-12Oct-12Nov-12Dec-12Jan-13Feb-13Mar-13 R'000 Actual (BAS) Expend iture Month 320 742432 325455 843527 986234 371332 260368 802470 309423 725334 801291 250563 849 Cumulative 320 742753 0671 208 9101 736 8961 971 2672 303 5272 672 3293 142 6383 566 3633 901 1644 192 4144 756 263 Approv ed Drawin gs Month 411 519192 869687 563410 191298 162325 687394 478318 420472 892513 010414 525736 005 Cumulative 411 519604 3881 291 9511 702 1422 000 3042 325 9912 720 4693 038 8893 511 7814 024 7914 439 3165 175 321

8. Detail Current Expenditure * NotesExpenditure Goods and services2012/13 R’000 2011/12 R’000 Consultants, contractors and agency/ outsourced services (Annexure A -as at 28/02/13)* Travel and subsistence (Annexure B – as at 28/02/13) Other operating expenditure (refer to next slide)* Operating leases (include accommodation, car rentals and Nestle machines rentals; transfer to DAFF) Inventory (Including stores for Antarctica) – Herbicides purchased for eradication of alien invasion species: NRM, computer consumables for tracking oceanographic research items. Computer services (Increase in computer service, Microsoft Enterprise upgrade and licensing) Advertising (promotional items and recruitments costs) Venues and facilities (communication projects and meeting to facilitate the transfer of NRM) Owned and leasehold property expenditure (Include building maintenance and repairs) Training and staff development (NRM Implementing Agencies & pilot youth programmes ; Training to employees) Communication (Installation of data lines, telephone & conference facilities in regions/Cape Town) Audit cost Catering Bursaries employees Administrative fees (increase in personnel agency and travel agency fees) Transport provided as part of the departmental activities Fleet services Management / Handling Fees 220 469 134 162 53 967 67 143 75 707 18 019 26 621 26 787 22 266 6 853 15 984 5 718 3 909 1 630 659 62 0 41 659 556 692 96 910 63 748 58 068 50 248 28 905 24 134 21 507 16 781 16 043 10 978 8 590 5 562 1 210 765 136 1 0 TOTAL721 615960 278 8

9. Detail Current Other Operating Expenditure * NotesExpenditure Other Operating Expenditure * 2012/132011/12 R’000 Air charter services, voyages to Islands& landing rights Harbour, dock fees (Buoy, ocean surveyor & systems) Annual Membership and subscription fees (GEF) Printing & publications services Resettlement costs Courier & Delivery services Freight services transport goods Other: Car valet & wash services/Laundry services/Gifts/Nonlife insurance/Drivers licenses & permits/Achievements and awards/Storage of assets & goods 29 938 1 434 12 178 5 355 1 637 1 035 970 1 420 25 293 14 989 14 385 4 684 3 293 805 204 95 TOTAL53 96763 748 9

10. Transfer on Expanded Public Works Projects 2012/13 * InstitutionsR’000 2012/13 R’000 2011/12 Sustainable land base livelihoods476 590245 454 Working for waste188 069177 021 People and parks217 208128 770 Working for the coast112 67476 384 Beneficiary training35 75323 869 Working for Fire381 412351 996 Working for Water736 551297 572 Total2 148 2571 301 066 10

11. Transfer to Public Entities * Institutions2012/13 R’000 2011/12 R’000 South African National Parks319 216222 014 South African Biodiversity Institute209 698220 387 South African Weather Services150 581148 407 iSimangaliso Wetland Park of Authority71 09067 847 Total750 585658 655 11

12. Transfer to Non-Profit Institutions * 2012/13 R’000 2011/12 R’000 Buyisa-e-Bag20016 050 Wildlife and Environmental Society of South Africa4 000 African World Heritage Fund03 000 National Association for Clean Air1 400 Maloti Drakensberg1 2871 203 Total6 88725 653 Global Environmental Fund12 890 Social Benefit5 5382 838 North West University1 000967 Municipalities (various)145 Total19 44216 700 12

13. Payment for Capital Assets * Machinery and equipment2012/13 R’000 2011/12 R’000 Building & Other fixed structures ( PPP New Departmental Building) Ship & marine equipment (SA Agulhas II Vat & Clearing costs)2012/13) Computer hardware & systems Expenditure for capital assets; Good and services Audio visual equipment Office furniture Finance fee lease Office equipment Photographic equipment Motor vehicle Software and other intangible assets Medical and allied equipment Lifting & handling equipment Transport accessories & trailers Radio equipment Security equipment, systems, material: movable Workshop equipment Gardening equipment Kitchen appliances Telecommunication equipment Bags Survey equipment Domestic equipment Emergency / Rescue Equipment Woodwork Machinery and Equipment 220 419 232 400 8 670 0 462 821 3 046 533 239 653 1 447 4 623 86 176 77 0 68 0 51 50 15 0 8 2 146 1 010 0 645 701 9 137 6 073 4 424 2 357 2 100 1 365 627 698 515 369 213 147 118 79 70 69 44 38 24 11 7 0 Total477 000673 726 13

14. Departmental Expenditure Trend YearBudget R’000 Actual R’000 % Expenditure 2009/20103 510 6413 503 33899.8% 2010/20112 488 5142 390 02396.0% 2011/20124 201 6164 108 54997.8% 2012/20135 175 3214 756 26391.9% 14

15. Identified Shortfalls for Oceans & Coasts R’000 SA Agulhas 11 insurance SA Agulhas 11 Administration costs Overlapping manning & operational costs (SA Agulhas 1 & 11) ALGOA Drydocking costs Bunkers & Lubes Technical management fee, manning, & insurance Research & Laboratory Equipment Helicopter Services Additional Life Saving Relief Voyage 3 437 4 555 7 410 24 229 61 661 50 505 4 500 Total151 797 15 * Additional required to fund the shortfall (151 797 – 116 753) = 35 044 8 000 2 200 14 029

16. Reprioritization to fund Oceans & Coasts (within 8% per PFMA Requirements) ProgrammeAmount R’000 Programme 1 Goods and Services Programme 2 (Environmental Quality & Protection) Programme 4 (Climate Change) Programme 5 (Biodiversity & Conservation) Programme 6 (Sector Programmes) (62 239) (10 000) (2 514) (12 000) (30 000) Total(116 753) 16

17. Preparedness for year end and audits Projected Unqualified Audit Interim Audit by Auditor General conducted, report to be issued end of March Full reporting on PPP disclosure required in the current financial year. Unauthorized and irregular expenditure: No irregular expenditure has been reported to date Projected Expenditure as at 31 March 2013 - 93%-95% 17

18. Public Entities Reporting (next) 18