1. Vote 30: Environmental Affairs Portfolio Briefing Expenditure Report for period 1 April -30 September 2013 Nosipho Ngcaba Director-General Department of Environmental Affairs 15 October 2013 1

2. Presentation Outline -Adjusted Allocations -Expenditure per programme -Expenditure per economic classification -Expanded Public Works Programmes & Projects -30 days payment report -Donor Funding -Budget Structure & Funding of priorities 2

3. Adjustments requested and allocated DescriptionRequestedAllocated R’000 Oceans & CoastsFire Laboratory: Cape Town8 410 Emergency trip to Marion Islands for Medical Evacuation 2 2880 Fuel increase: Vessel Operation13 6000 SANParksManagement of Indigenous Forests: Garden Route 44 0000 Floods damage in a Kruger National Park Disaster Funding 13 50013 464 3 812 Chemicals and WasteProvision of Waste Management Services per pre-determined Outcome 9&10 targets 342 0000 Expanded Public WorksProposed Cuts by National Treasury(100 000) TOTAL423 798 3 Adjustment not yet effected, will only be effected in October after the proposed cuts have been reversed by National Treasury

4. Expenditure for the 2013/14 Financial Year per Programme ProgrammeFinal appropriation R’000 Expenditure till 30 September 2013 R’000 % Spent 1. Administration777 314326 23442% 2. Legal, authorization and compliance 113 32444 71639% 3. Oceans and coasts309 766158 98951% 4. Climate change and air quality233 814113 92149% 5. Biodiversity and conservation559 453261 16247% 6. Environmental programmes3 371 7781 318 43739% 7. Chemicals and waste management 65 70725 09838% Total5 431 1562 248 55741% 4

5. Expenditure per Economical Classification Economical classificationFinal appropriation R’000 Expenditure R’000 % Spending Current Payments1 632 588665 17631% - Compensation of employees -Goods and services* 668 000 964 588 326 333 338 843 50% 35% Transfers and Subsidies 3 606 9771 478 11847% Departmental Agencies Foreign Governments Non-Profits Institutions Green fund Expanded Public Works Gifts & donations 1 099 765 12 890 11 900 500 000 1 985 305 117 451 055 0 6 336 167 290 853 320 117 43% 72% 53% 33% 86% 100% Payment for capital assets*191 591105 26355% PPP New Building Machinery & Equipment Financial & Software Assets 146 000 44 992 599 86 018 18 834 411 72% 42% 67% Total5 431 1562 248 55741% 5

6. Notes Expenditure Trends 6 Programme 1: 42% -SITA payments: delayed submission of invoices -R60million for IT infrastructure for new building: Tendering process in progress -Department of Public Works invoices (+- 80 Million) -Invoices for rental and office accommodation not yet received or due Programme 2: 39% - Re-alignment of the structure and filling of posts recently completed - Legal claims for cost with regard to cases in the enforcement cases is only expected at a later stage - Claims for travel and accommodation for enforcement, compliance, and monitoring only processed after projects are finalised.

7. Notes Expenditure Trends 7 Programme 6: ( 40%) -Green Fund: Awaiting request for approved projects and cash flow projections before transfers are effected -Working for Water and working on fire Small Contractors Payments: Payments for eradicating invasive species paid only after completion of project. -Transfer of Infrastructure Grants to Public Entities : -Incentives for over-achievement of EPWP project targets. only paid after quarterly reporting is finalized Programme 7: (38%) -Re-alignment of the structure and filling of posts recently completed. -Payment of R10,5 million to the National Regulator for Compulsory Specifications will only payable in January 2014.

8. Detail Current Expenditure * Goods and servicesExpenditure R’000 Consultants, contractors and agency/ outsourced services -Annexure A Travel and subsistence - Foreign & Travel -Annexure B Venues and facilities (communication projects and meetings) Other operating expenditure (refer to next slide)* Operating leases (include accommodation, car rentals and Nestle machines rentals, printers, fax machines) Owned and leasehold property expenditure (Include building maintenance and repairs) Inventory includes: oil gas, medical, food supplies for Antarctica Computer services (software licenses, operating systems, datalines & external computer services) Consumables (stationery, printing, office suppliers) Island & laboratories supplies Assests <R5000 Advertising (tenders, marketing, promotional items and recruitments costs) Training and staff development (NRM Implementing Agencies & pilot youth programmes Communication (Installation of data lines, telephone & conference facilities in regions/Cape Town) Audit cost – (External) Catering & Entertainment Bursaries employees Administrative fees (increase in personnel agency and travel agency fees) Fleet services (transport provided as part of the departmental activities) 134 499 63 158 13 914 22 657 26 405 6 400 8 396 9 257 3 321 12 149 1 150 8 706 3 305 8 977 3 847 2 105 720 1 353 8 524 TOTAL338 843 8

9. Graphical Presentation 9

10. Detail Current Other Operating Expenditure * NotesExpenditure Operating Expenditure * Air charter services, voyages to Islands& landing rights Harbour, dock fees (Buoy, ocean surveyor & systems) Professional bodies,membership and subscription fees* Printing & publications services Resettlement costs Courier & Delivery services Freight & Harbor services Other: Car valet & wash services/Laundry services/Gifts/Nonlife insurance/Drivers licenses & permits/Achievements and awards/Storage of assets & goods 8 560 8 030 3 298 1 266 527 66 910 TOTAL22 657 10

11. Payment for Professional bodies, membership and subscription fees* (R8 030) 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 11

12. Payment of Capital Assets Machinery and EquipmentExpenditure R’000 Computer Equipment Transport Equipment ( Vehicles: Environmental Programmes) Furniture fixture & appliances Photographic Equipment Ship and Marine Equipment (Exchange rate correction) Finance Leases Telecommunication Equipment Printing Equipment Sport and Recreation Equipment (Tents, Flags & Accessories) Learn/Training/Library Fixed Air Conditioner 4 260 12 460 479 138 272 929 39 64 78 69 46 Total18 834 12

13. 13 Allocations & Transfers to DEA Public Entities SANParks R’000 SANBI R’000 SAWS R’000 ISWP R’000 TOTAL R’000 Allocated Budget526 988264 254182 943125 5801 099 765 DEA Operational Infrastructure Grant 220 145 306 843 208 684 55 570 162 943 20 000 28 790 96 790 620 562 479 203 Transferred(168 764)(128 029)(101 472)(52 790)(451 055) DEA Operational Infrastructure Grant (101 921) (66 843) (104 0290 (24 000) (81 472) (20 000) (14 395) (38 395) (301 817) (149 238) Balance358 194136 22581 47172 790648 710

14. 14 ExpenditureSANParks R’000 SANBI R’000 SAWS R’000 iSimangaliso R’000 Total revenue(468 622)(199 651)(130 456)(17 991) Total expenditure497 134169 464114 43625 034 Public Entities Revenue and Expenditure as at 31 August 2013

15. 15 Allocations & Transfers to Other Agencies DBSA Green Fund R’000 Nat. Assoc. for Clean Air (NACA) R’000 Nat. Regulator of Compulsory Spec. (NRCS) R’000 Global Environmental Fund (GEF) R’000 Social Benefits/Leave gratitude TOTAL R’000 Allocated Budget500 0001 40010 50012 890524 907 Transferred(167 290)(1 200)00(5 136)(173 400) Donations & licenses (117) Balance332 71020010 50012 890351 390

16. 16 Allocations & Transfers Environmental Public Works Projects Working for Water R’000 Working for Fire R’000 Environmental Projects R’000 TOTAL R’000 Allocated Budget732 766421 475828 0641 982 305 Projects Incentives 623 730 109 036 368 632 52 843 630 512 197 552 1 622 874 359 431 Transferred(323 445)(235 209)(294 666)(853 320) Projects Incentives (323 445) 0 (235 209) 0 (242 253) (52 413) (800 907) (52 413) Balance409 321186 266533 3981 128 985

17. Expanded Public Works per Projects ProjectsExpenditure R’000 Working for water323 487 Youth Environmental Service15 088 Working for Fire19 030 People and parks44 165 Working for waste39 142 Working for coast75 789 Working for forest operations216 179 Working for land operations55 962 Beneficiary training14 422 World Economy11 725 Green Open Space39 265 Total853 320

18. 30 Days Report Financial 2013-14 18

19. Reasons for over 30 days payment report – 0 to 1% of total invoices Reasons IT system issues BAS, Logis, Safetyweb down during the first two weeks of August 2013 Faulty or incomplete invoices and supporting documents returned to suppliers Late submission of invoices Corrective Actions Processing at SITA premises Provision for overtime to process backlog of payments Continuous reporting to National Treasury & SITA to effect corrective actions Department has an effective document flow & control processes to track unpaid invoices 19

20. Foreign Aid Assistance Name of Donor Country PurposeBudget Allocated R’000 Expenditure R’000 UNEPReducing Mercury Emmisions from Coal Combustion into the Energy Sector 74 World BankAfrican Stockpile Programme (funds surrended) (52) BotswanaTransfer Conservation Areas Strategy8130 GermanySupporting the Development and Implementation of Access and benefit sharing Policies in Africa 200 GermanyClimate Change Programmes539 USAIDCompilation of arid Transfrontier Project319226 UNEPNational Roundtable on Sustainable Consumption and Reduction 317 2 2101 304 20

21. 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% 2013/20145 431 1562 248 55741.4% 21

22. DETAIL BUDGET STRUCTURE & FUNDING OF PRIORITIES 22

23. 23 COMPENSATION OF EMPLOYEES BudgetExpenditure R’000 % Spend R668 000 000 R 326,33348.9% S&W: BASIC SALARY R 218,84832.8% NON PENSIONABLE ALLOWANCES R 33,8375.1% EMPLOYER CONTRIBUTIONS R 32,0854.8% PERFORMANCE BONUS R 15,4962.3% SERVICE BONUS R 13,9532.1% HOUSING ALLOWANCE R 6,2330.9% OVERTIME R 3,1020.5% OTHER REMUNERATION R 2,7770.4%

24. Programme 1: Administration Sub-ProgrammeAdjusted Allocation 1. Management R’000 92 598 2. Corporate Affairs182 460 3. Environmental Advisory Services103 220 4. Environmental Sector Coordination56 883 5. Financial Management48 073 6. Office Accommodation PPP: Unitary Payment PPP: Government Contract Office Accommodation 60 000 146 000 88 080 Total777 314 24

25. Programme 2: Legal, Enforcement and Compliance Sub-ProgrammeAdjusted Allocation 1.Legal, Authorisations and Compliance Management R’000 6 496 2.Compliance Monitoring15 816 3.Integrated Environmental Authorisations43 092 4.Enforcement26 099 5. Corporate Legal Support and Legislation8 247 6. Law Reform and Appeals13 574 Total113 324 25

26. Programme 3: Oceans and Coasts Sub-ProgrammeAdjusted Allocation 1.Management R’000 6 791 2. Integrated Coastal Management34 101 3. Oceans and Coastal Research110 774 4. Oceans Conservation161 472 5. Specialist Monitoring Services5 038 Total318 176 26

27. Programme 4: Climate Change and Air Quality Sub-ProgrammeAdjusted Allocation 1. Climate Change Management R’000 6 298 2. Climate Change Mitigation7 644 3. Climate Change Adaptation3 883 4.Air Quality Management36 541 5. South African Weather Service162 943 6. International Climate Change Relations & Negotiations9 148 7. Climate Change Monitoring and Evaluation7 357 Total233 814 27

28. Programme 5: Biodiversity and Conservation Sub-ProgrammeAdjusted Allocation 1. Biodiversity and Conservation Management R’000 15 352 2. Biodiversity Planning and Management23 559 3. Protected Areas Systems Management43 591 4. iSimangaliso Wetland Park Authority28 790 5. South African National Parks277 645 6. South African National Biodiversity Institute208 684 7. Biodiversity Monitoring and Evaluation4 575 8. Biodiversity Economy and Sustainable Use14 757 Total616 953 28

29. Programme 6: Environmental Programmes Sub-ProgrammeAdjusted Allocation 1.Environmental Protection and Infrastructure Programme R’000 1 357 760 2.Working for Water and Working on Fire1 496 879 3.Green Fund500 000 4.Environmental Programmes4 939 5.Information Management and Sector Coordination12 200 Total3 371 778 29

30. Programme 7: Chemicals and Waste Management Sub-ProgrammeAdjusted Allocation 1. Chemicals and Waste Management R’000 4 854 2. Hazardous Waste Management and Licensing10 566 3. General Waste and Municipal Support30 640 4. Policy Evaluation and Monitoring11 645 5. Chemicals Management8 002 Total65 708 30