1. VOTE 30 2012/2013 Annual Financial Statements for the year ended 31 March 2013 Annual Report Presentation to the Portfolio Committee on Water and Environmental Affairs 15 October 2013 1

2. Presentation Outline -Expenditure per programme -Expenditure per economic classification -Transfers to Public & Entities and other Agencies -Expanded Public Works Programmes & Projects -Donor Funding -30 Days Payment Report -Auditor- General report 2

3. Expenditure for the 2012/13 Financial Year per Programme ProgrammeFinal appropriation R’000 Expenditure R’000 Expenditure as % of final appropriation R’000 Variance R’000 1. Administration715 751703 04198.2%12 710 2. Environmental quality and protection324 990 100.0%- 3. Oceans and coasts524 584 100.0%- 4. Climate change28 90528 06197.1%844 5. Biodiversity and conservation 568 413568 412100.0%1 6. Environmental sector programmes and projects 3 012 6782 793 57392.7%219 105 Total5 175 3214 942 66195.5%232 660 3

4. Expenditure per Economical Classification Economical classificationFinal appropriation R’000 Expenditure R’000 Balance Surrendered R’000 Note Current Payments1 407 1651 385 75021 415 - Compensation of employees -Goods and services 574 882 832 283 560 834 824 916 14 048 7 367 1212 Transfers and Subsidies3 293 3543 082 109211 245 Departmental agencies and accounts Foreign Governments Non Profit Organisations Other transfers – Green Fund Expanded Public Works Projects 750 585 12 890 29 978 300 000 2 199 901 750 585 12 890 29 959 88 774 2 199 901 - 19 211 226 3 Payment for capital assets*474 802 - PPP payment for the new building SA Agulhas: VAT and Customes Clearing cost Machinery, computers, office, laboratories equipment,& financial assets 220 000 187 684 67 118 220 000 187 684 67 118 o/w payments for financial assets161 - Total5 175 3214 942 661232 660 5 Funds surrendered to National Treasury -Note 1: vacant posts not filled during the review of the establishment -Note 2: Savings from goods & services -Note 3: Late allocation of Green Fund budget by NT therefore late approvals of projects

5. Detail Current Expenditure * Notes Expenditure Goods and services2012/13 R’000 2011/12 R’000 Consultants, contractors and agency/ outsourced services - Project Management cost, Smit Amandla operating and maintenance cost and professional fees. (Annexure A) Travel and subsistence. (Annexure B) Venues and facilities. Annexure C Other operating expenditure (refer to next slide)* Operating leases – Accommodation charges and operating lease payments. Inventory – herbicides, research supplies, oil & gas, food supplies Computer services - External computer services, software license and operational systems. Advertising – Media coverage services. Owned and leasehold property - Renovations (Fedsure forum- Pretoria and Waterfront building). Communications – (Radio, TV transmission, National People's and Parks conference) Training and staff development (courses & workshops) Audit cost - External Catering Assets less than R5 000 Bursaries employees Rental and hiring - Minister's Sod-Turning ceremony for the new building. Administrative fees - Launch of SA Algulhas II and the Sod-Turning ceremony Entertainment - Meetings with external and internal stakeholders. Transport provided as part of the departmental activities. Fleet services 340 382 142 283 30 219 57 484 67 488 59 893 36 068 26 820 21 745 16 590 7 368 5 718 4 071 3 989 1 680 1 675 1 139 232 62 10 556 692 96 910 21 507 63 748 58 068 50 248 28 905 24 134 16 781 10 978 16 043 4 434 3 065 4 156 1 210 2 428 765 136 69 1 Total824 916960 278

6. Notes on goods & services ItemDescriptionVariance R’000 Consultants, contractors and agency/ outsourced services Decrease in contractors COP 17 late invoices paid in 2012– R112m, Re-classification of NRM contractors from goods & services to transfers- R104m 216 310 Operating leasesIncrease Additional rental/ accommodation charges in respect of the NRM regional offices and operating lease payments. 9 420 Computer services -Increase The support and maintenance for Working for Water and Fire Information Management System, Premium support and 2nd year Enterprise Agreement with Microsoft via SITA. 7 163 6

7. Detail Other Operating Expenditure * NotesExpenditure Other operating expenditure * 2012/13 R’000 2011/12 R’000 Air charter services & landing rights. Professional bodies, membership and subscription fees* Printing & publications services. Resettlement costs. Harbour, dock fees. Courier & Delivery services. Other operating expenditure. Freight services transport goods. 30 866 14 598 5 513 1 690 1 434 1 206 1 200 977 25 293 14 385 4 684 3 293 14 989 805 95 204 Total57 48463 748 7 * Refer following slides

8. Payment for Professional bodies, membership and subscription fees* (R14 598) Benguela Current Commission (BCC) Intergovernmental Science –Policy Platform on Biodivsersity & Ecosystem Services (IPBES) Commission for the Conservation of Antartictic Marine Living Resources(CCAMLR) African Institute for Environmentally Sound Management of Hazardous & other waste (AIESMH &W) United Nations Environment Programme (UNEP) Environmental Assessment Practitioners (EAP’s) Interim Certification Board (ICB) Environmental Systems Research Institute South Africa (ESRI) Enterprise Licence Agreement 8

9. 9 Allocation to Public Entities and Own Revenue RevenueSANParks R’000 SANBI R’000 SAWS R’000 ISWP R’000 TOTAL DEA Operational and Infrastructure Grant319 216209 698150 58171 090750 585 Transfers from other departments/institutions, EPWP) 259 936179 6658 45334 846482 900 Total Transferred579 152389 363159 034105 9361 233 485 Revenue1 097 37553 55794 31615 7161 260 964 Revenue from operating activities/Admission fees/Aviation income/Park revenue Other income Sales Investment income Donations Fair value gain Non-regulated commercial income Penalties 1 058 117 20 196 3 752 12 573 2 737 - 32 054 13 870 1 595 5 586 239 213 - 73 771 1 853 - 4 781 - 13 911 - 10 995 4 231 - 465 - 25 Sub-total1 676 527442 920253 350121 6522 494 449 Deferred grant /transfers-(43 346)22(42 341) Total revenue1 676 527399 574253 37279 3112 408 784

10. 10 ExpenditureSANParks R’000 SANBI R’000 SAWS R’000 iSimangaliso R’000 Total revenue per annual financial statements (1 676 527)(399 574)(253 372)(79 311) Total expenditure per annual financial statements 1 717 837405 211269 12089 036 Deficit per annual financial statements (41 310)(5 637)(15 748)(9 725) Public Entities Revenue and Expenditure

11. 11 Public Entities Revenue and Expenditure

12. 12 SANParks R’000 SANBI R’000 SAWS R’000 iSimangaliso R’000 Deficit41 3095 63715 7489 725 Reason Damages caused by floods (R7m) Outstanding forestry grant (R24,4m) - Request submitted to National Treasury during the 2013/2014 financial year to include in the adjustments estimate allocation. Operating cost as a result from control take over of the restaurants in the KNP, Kgalagadi and Augrabies National Parks (R10,m) Increased liability valuation on retirement benefits fund for employees (Post-retirement Medical Benefit R2m and interest on Fair value of Defined Benefit Obligation R3m) Shortfall in:  Aviation income (R5.7m)  Non-regulated commercial revenue (R5.3m) Bad debt written-off in respect of administrative expenses (R4.2m) Bad debt written-off in respect of penalties levied on a contractor that subsequently went into liquidation (R5.7m) Increase in sub- contractors in respect of project cost (R4m). Public Entities Deficit

13. Auditor-General’s Opinion on Public Entities Audit Opinion EntityUnqualifiedEmphasis of matter Reason/CommentsAction SANParksUnqualifiedNone-- SANBIUnqualifiedYesLeave and bonus accrual disclosed as provisions (Previous year restated) Reporting error corrected SAWSUnqualifiedNoneMaterial non- compliance reported due to the misstatement of commitments (leases) and 31 March 2012 need to be restated Misstatement was corrected and previous year figure restated iSimangalisoUnqualifiedYesIdentified classification errors that required corrections and restatement of the previous years financial statements Reclassification was done and previous year figures restated 13

14. 14 Allocations & Transfers to Other Agencies DBSA Green Fund R’000 Nat. Assoc. for Clean Air (NACA) R’000 Nat. Regulator of Compulsor y Spec. & Comp. Fund (NRCS) R’000 Global Environme ntal Fund (GEF) R’000 KZN Conserv. Board:Maloti North West University World Wild Life Soc. Of SA WESSA Social Benefits/ Leave gratitude TOTAL R’000 Allocated Budget Donations & Licenses Buyisa eBag 300 0001 40010 000 7 689 12 8901 2881 0004 0003 893342 160 508 200 Transferred(88 774)(1 400)(17 689)(12 890)(1 287)(1 000)(4 000)(3 893)(130 933) Donations & licenses Buyisa e bag (490) (200) Balance211 226---1--211 245

15. 15 Allocations & Transfers Expanded Public Works Projects Working for Water R’000 Working for Fire R’000 Environmental Projects R’000 TOTAL R’000 Allocated Budget705 836446 2881 048 0192 200 143 Projects Incentives 550 800 155 036 397 377 48 911 900 674 147 345 1 848 851 351 292 Transferred(705 605)(446 276)(1 048 020)(2 199 901) Projects Incentives (550 557) (155 048) (397 377) (48 899) (900 675) (147 345) (1 848 609) (351 292) Balance23112-243* *Unearned Incentives to paid back to National Treasury

16. Expanded Public Works per Projects* Expenditure 2012/13 R’000 2011/12 R’000 Working for water662 519297 572 Sustainable land base livelihoods493 290245 454 Working for Fire362 620351 996 People and parks215 748128 770 Working for waste188 069177 021 Working for coast114 44876 384 Working for forest operations85 359- Working for land operations41 384- Beneficiary training36 46423 869 Total2 199 901*1 301 066* 16 * The increase in 2012 is due to Additional funding received from NT for Environmental Programmes (- +R375 million) including the shift from small contractors to transfers (-+R480 million)

17. Foreign Aid Assistance Donor CountryPurposeBudget Allocated ExpenditureBalance United Nations on Environmetal Programmes (UNEP) Convention on Climate Change & Reducing Mercury emission 51844474 United Nations Development Programmed (UNDP) Rotterdam Convention & Marine Coastal Programme (48) - DenmarkWaste Management Strategy1000 BotswanaTransfrontier Conservation Strategy 812- World BankAfrican Stofile Programme(8)44(52) NorwayEnvironmental Co-operation Programme --- GermanyClimate Change Programme5401539 TOTAL2 8141 4411 373 17

18. 30 Days Report Financial 2012-13 18

19. Departmental Expenditure Trend YearBudget R’000 Actual R’000 % Expenditure 2004/20051 652 2681 633 88298.9% 2005/20061 753 3071 746 15499.6% 2006/20072 061 8042 059 66499.9% 2007/20082 790 5212 788 75799.9% 2008/20093 206 5573 198 87899.8% 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 942 66195.5% 19

20. Auditor-General Report on the Financial Statements (Refer Annexure A) Unqualified Audit One matter on material misstatement of commitments: – Commitments overstated by R61,575 million as a result of including LOGIS orders that should have been deleted prior to 31 March 2013. – Corrected in Annual Financial Statements after 31 May 2013. – Resulted in non-compliance to specific matters in key applicable laws and regulations. Unauthorized and irregular expenditure: - No new irregular expenditure occurred. - Irregular expenditure was incurred in the previous financial year- 2012/1 was condoned by National Treasury Disclosure items in the financial statements The department complied with all disclosure requirements, classifications and policy frameworks as prescribed by Treasury. Transfers to agencies and other organisations All transfers made are per prior management and Treasury approval as well as within disclosure requirements. 20

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