1. Vote 27 : Environmental Affairs Portfolio Committee Briefing Annual Report for period 1 April 2015 – 31 March 2016
Ms Nosipho Ngcaba
Director-General
Department of Environmental Affairs
30 November 2016

2. Presentation Outline Audit opinion Expenditure per programme
Expenditure per economic classification
Expanded Public Works Programmes & Projects
Re-classifications
30 days payment report
Donor Funding
Public Entities Report

3. Audit Opinion
In my opinion, the financial statements present fairly, in all material respects, the financial position of the Department of Environmental Affairs as at 31 March 2016 and its financial performance and cash flows for the year ended, in accordance with Modified Cash Standard and the requirements of the PFMA.
Emphasis of matter
I draw attention to the matter below. My opinion is not modified in respect of this matter.
Restatement of corresponding figures
As disclosed in note 31 to the financial statements, the corresponding figures for 31 March 2015 have been restated as a result of an error discovered during 2016 in the financial statements of the Department of Environmental Affairs at, and for the year ended, 31 March 2015.
Additional matter
Unaudited supplementary schedules
The supplementary information set out on pages 220 to 231 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.

4. Expenditure for the 2015/16 Financial Year per Programme
Adjusted
Appro-priation
R’000
Q1:
1 April - 30 June 2015
Q2:
1 July –
30 Sept 2015
Q3:
1 Oct –
31 Dec 2015
Q4:
1 Jan –
31 March 2016
Total
April 15 – March
2016 %
Spent
1. Administration
95.7
2. Legal, authorization and
compliance
27 820
31 596
35 278
36 723
98.1
3. Oceans and coasts
73 860
99 998
92 071
92.3
4. Climate change and air
quality
60 842
66 573
62 072
56 627
102.5
5. Biodiversity and conservation
95.8
6. Environmental programmes
102.6
7. Chemicals and waste
management
79 281
16 853
17 142
20 422
25 323
79 740
100.6
99.9
23%
25%
29%
99.9%

5. Expenditure per Economical Classification
Final Appro-priation
R’000
Q1:
1 April - 30 June 2015
Q2:
1 July –
30 Sept 2015
Q3:
1 Oct –
31 Dec 2015
Q4:
1 Jan –
31 March
2016
Total
April ‘15 – Jan %
Spent
Current Payments
99.9
Compensation of employees
Goods and services**
100.0
99.7
Transfers and Subsidies
Departmental Agencies
Foreign Governments
Non-Profits Institutions
Green fund
Expanded Public Works
Other Transfers
compensation fund, leave gratuity & bursaries
16 000
10 519
4 641
1 808
3 487
574
582
7 032
1 677
Payment for capital assets*
24 853
41 087
40 490
54 429
99.0
PPP New Building: Unitary pmt
Machinery & Equipment
Software & other intangible
31 308
1 824
20 985
3 868
31 702
9 385
31 264
9 226
45 405
7 200
29 679
94.8
Payments for financial Assets
908 3
397
104
404 99

6. Detail Current Expenditure *
Goods and services Q1
R’000 Q2 Q3 Q4
Total
Consultants, contractors and agency/ outsourced services **
Travel and subsistence - Foreign & Domestic Travel **(Annexure A)
Venues and facilities (communication projects and meetings)
Other operating expenditure **
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, data lines & external computer services)
Consumables (stationery, printing, office suppliers)
Assets <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)
Rental and hiring
49 567
47 538
9 941
15 109
3 867
1 776
4 861
6 758
6 998
2 469
2 759
5 498
2 150
1 694
258
277
4 273
1 407
43 016
6 037
2 860
19 189
2 324
8 271
19 470
4 883
(664)
2 858
3 512
8 104
3 626
3 242
279
(3 535)
4 029
1 982
55 245
14 483
17 119
22 294
3 216
17 962
25 059
5 793
427
5 046
5 194
5 378
1 947
2 536 3
435
1 619
551
33 702
4 197
30 189
25 534
5 394
3 780
24 260
6 926
852
3 639
3 529
4 938
1 608
1 512
817
263
1 966
484
34 658
65 277
70 884
12 710
34 874
75 547
24 600
3 084
14 302
17 733
20 570
8 875
7 548
1 376
1 436
9 021
3 017
TOTAL

7. Graphical Presentation

8. Detail Consultants, Contractors and Agency Services *
Notes Q1
R’000 Q2 Q3 Q4
Total
Consultants, Contractors and Agency Services *
External Auditors
Audit Committee
Research and Environmental Projects (CSIR and other)
Legal Costs
Agency Fees: Smit Amandla: operating and manning vessels: SA Agulhas & Algoa
Contractors: Eradication Alien Vegetation
Event Promotors (CITES COP 17)
Medical Services: Examinations
Transport
Graphic Designers
Audio visual Services
Casual Labourers 53
17 964
2 203
25 208
3 511
127
341 93 16 12 39
261 15
46 647
2 029
56 353
7 898
4 140 77
331 4
398 20
2 709 47
24 303
(231)
50 783
40 367
1 571 92
780 34 14 6
885
33 749
11 863
46 687
36 007 42
300
445
168
3 855
115
4 093
98 463
41 845
552
1 504
499
592 65
TOTAL
49 567
Professional bodies, membership and subscription fees:
African Institute for Environmentally Sound Management of Hazardous and Other Waste,
Environmental Fund - United Nations Environment Programme ,
Commission for the Conservation of Antarctic Marine Living Resources,
Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) Plenary meeting
Benguela Current Commission (BCC) membership.

9. Detail Current Other Operating Expenditure *
Notes Q1
R’000 Q2 Q3 Q4
Total
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 & Harbour services
Other:
Car valet & wash services/Laundry services/Gifts/Nonlife insurance/Drivers licenses & permits/Achievements and awards/Storage of assets & goods
5 852
4 688
2 195
174
423
336
1 441
869
1 139
339
347 74 92
8 057
6 092
1 843
505
390
115
117
12 831
13 475
3 201
318
178 27
159
26 740
25 124
8 378
1 336
1 338
552
1 809
TOTAL
15 109
2 860
17 119
30 189
65 277
Professional bodies, membership and subscription fees:
African Institute for Environmentally Sound Management of Hazardous and Other Waste,
Environmental Fund - United Nations Environment Programme ,
Commission for the Conservation of Antarctic Marine Living Resources,
Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) Plenary meeting
Benguela Current Commission (BCC) membership.

10. Payment for Professional bodies, membership and subscription fees
Payment for Professional bodies, membership and subscription fees* (R )
Benguela Current Commission (BCC)
Intergovernmental Science –Policy Platform on Biodiversity & Ecosystem Services (IPBES)
Commission for the Conservation of Antarctic 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. Payment of Capital Assets
Machinery and Equipment Q1
R’000 Q2 Q3 Q4
Total
Computer Equipment
Transport Equipment
Furniture fixture & appliances
Office Equipment
Finance Leases
Telecommunication Equipment
Printing Equipment
Photographic Equipment
Medical & Allied Equipment
Audio Visual Equipment
Kitchen Appliances
Survey Equipment
Tents, Flags and Accessories
Paintings, Sculptures & Ornaments
Radio Equipment
Learning/training/library equipment
Laboratory Equipment
Lifting and Handling Equipment
Workshop Equipment
Domestic Equipment
2 979
358
106 54 73 9 68 65 19 46 8 17 38 25
5 644
1 826
177
162 63 6
193
189
128 14
541
3 996
2 308
129 99
578 22
118
485
679 27
134 15 81
198
174
5 083
1 448 39
(314)
110 32
172
(33)
317 93 7
124
160
(144)
17 702
5 940
451
340
400
136
548
471
1 231
279 36
746 30

12. Payment of Capital Assets (Continue)
Machinery and Equipment Q1
R’000 Q2 Q3 Q4
Total
Security Equipment
Refrigeration Equipment
Ship and Marine Equipment
334
125 51
3 865
8 989
9 123
7 702
29 679

13. Allocations & Transfers to DEA Public Entities
SANParks
R’000
SANBI
SAWS
ISWP
TOTAL
Allocated Budget
92 769
DEA Operational
Infrastructure Grant
72 263
31 628
61 141
Transferred
( )
( )
( )
(92 769)
( )
( )
( )
( )
(72 263)
(0)
(31 628)
(61 141)
( )
( )
Balance
% Spent
100%

14. Allocations & Transfers to Other Agencies
DBSA
Green Fund
R’000
Nat. Assoc.
for Clean Air
(NACA)
Nat. Regulator of Compulsory Spec.
(NRCS)
Global Environmental Fund
(GEF)
African World Heritage Fund
Natal Conservation Board
Other transfers
TOTAL
Allocated Budget
1 400
6 832
16 000
1 000
1 287
4 641
Transferred
( )
(1 400)
(6 832)
(16 000)
(1 000)
(1 287)
(4 641)
( )
Balance
% Spent
100%

15. Allocations & Transfers Environmental Public Works Projects
Working for Water
R’000
Working on Fire
Environmental Projects
TOTAL
Allocated Budget
Projects
Incentives
44 019
Transferred
( )
( )
( )
( )
( )
( )
( )
(44 019)
( )
( )
( )
( )
Balance
930
% Spent
100%
99.9%

16. Re-Classifications of EPWP Projects to Goods & Services
Initial
Goods & Services
R’000
Working for Water
Working on Fire
Environmental Projects
Total
44 019
( )
( )
( )
( )
( )
2 445
930
Re-classified to Capital
Per Modified Cash Standards (MCS) transfers to EPWP Projects to be reclassified as goods & services

17. NOTES
These adjustments were made based on a meeting held with AG and DG on the 19 October 2016 to comply with MCS
The AG indicated in the meeting that these adjustments were agreed with the Office to the Accountant General, and that she is awaiting a confirmation letter from the OAG
Adjusted Annual Financial Statements with additional notes were submitted on the 02 November 2016
The Audit Committee Meeting was held on the 14 November 2016
Unqualified Opinion received on the 16 November 2016

18. Invoices paid on average within15 days while the legislated baseline is 30 days

19. Foreign Aid Assistance
Name of Donor Country
Purpose
Budget Allocated
R’000
Expenditure
United Nations
Benguela Current Large Marine Ecosystem Programme 54
Australia
Funding agreement in relation to South Africa Land Sector Measurement
1 121
970
Botswana
Transfrontier Conservation Areas Strategy
813
Germany
Climate Change Support Programmes
429
Promethium Carbon Programme 59
USAID
Compilation of Arid Transfrontier Project
103
NORWAY
Capacity Development within the South African National Greenhouse Gas Inventory Unit (New)
2 827
UNEP
Strengthening Law Enforcement Capabilities to Combat Wildlife Crime for Conservation and Sustainable Use of Species: Target: Rhinoceros
11 556
5 921

20. Foreign Aid Assistance cont…..
Name of Donor Country
Purpose
Budget Allocated
R’000
Expenditure
UNEP
Preparation of Intended Nationally Determined Contribution (INDC) to the 2015 Agreement under UNFCCC
1 668 4
AEWA: 6th session of the AEWA meeting of parties
1 218
Total
19 848
8 113

21. Public Entities AFS Review (31 March 2016)
Financial Management Services 18

22. Allocation to Public Entities and Own Revenue for the year ended 31 March 2016
SANParks
R’000
SANBI
SAWS
ISWP
DEA Operational and Infrastructure Grant
92 769
Total Transferred
93 927
Revenue from operating activities/Admission fees/Aviation income/Park revenue
Other income
Investment income
Other Grants, Sponsorships and Donations
Sales of Fauna & Flora/Rent Received/Non-regulated commercial income/Sundry income
37 134
37 189
48 791
55 285
5 707
11 248
15 161
1 305
1 793
7 111
19 022
18 522
653
1 765
68 182
4 805
Sub-total
Deferred grant /transfers
Other Gains -
857
2 626
Total revenue 19

23. Public Entities Revenue and Expenditure as at 31 March 2016
SANParks
R’000
SANBI
SAWS
iSimangaliso
Total revenue
( )
( )
( )
( )
**Total expenditure
Surplus/(Deficit)
34 093
(16 349)
62 397
**SANParks Expenditure includes an amount of R3 204m for loss on disposal of asset. 20

24. Public Entities Revenue and Expenditure as at 31 March 201621

25. Public Entities Surplus/ (Deficit) as at 31 March 2016
SANParks
R’000
SANBI
SAWS
iSimangaliso
Surplus/(Deficit)
34 093
(16 349)
62 397
Due to the realisation of the Infrastructure grant income (application of GRAP23 - recognition of grants received)
Due to realization of Depreciation and Amortization (R30m)
Non-Cash Surplus and is the result of the accounting policies relating to grants (GRAP23)
SANParks achieved a cash surplus of R98, 735 (Cash Flow) to cover ongoing business activities.
Revenue from grants received are measured at the amount of increase in net assets i.e net proceeds received from DEA. 22

26. Auditor-General’s Opinion on Public Entities
Entity
Unqualified/
qualified
Emphasis of matter
Reason
Action
SANParks
Unqualified
None -
SANBI
Yes
Restatement of corresponding figures
correction of prior period errors
SAWS
iSimangaliso