1. VOTE 30: ENVIRONMENTAL AFFAIRS Portfolio Committee Briefing Annual Financial Statements for the year ended 31 March 2014
Ms Nosipho Ngcaba
Director General
Department of Environmental Affairs
14-16 October tbc

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

3. Expenditure for the 2013/14 Financial Year per Programme
Final appropriation
R’000
Actual
Expenditure
Expenditure as % of final appropriation
Variance
1. Administration
99.7%
1 992
2. Legal, Authorisations and Compliance
98.7%
1 324
3. Oceans and Coasts
99.8%
726
4. Climate Change and Air Quality
100.0% -
5. Biodiversity and Conservation
6. Environmental Programmes
7. Chemicals and Waste Management
74 445
73 113
98.2%
1 332
Total
99.9%
6 535

4. Expenditure per Economical Classification
Final appropriation
R’000
Actual
Expenditure
Balance
Surrendered
Note
Current Payments
5 094
Compensation of employees
Goods and services
3 102
1 992 1 2
Transfers and Subsidies
1 441
Provinces and Municipalities
Departmental agencies and accounts
Foreign Governments
Non-Profit Organisations
Public Corporations: DBSA: Green Fund
Expanded Public Works Projects
Other transfers 14
12 890
1 517
3 062 -
280
1 161 3 4
Payment for capital assets*
PPP payment for the new building
PPP IT infrastructure new building
Machinery, computers, office, laboratories equipment,& financial assets
27 582
48 037
o/w payments for financial assets
156
Total
6 535
Funds surrendered to National Treasury
Note 1: vacant posts not filled during the review of the establishment Note 3: Saving on National Regulator for
Note 2: Savings from goods & services Compulsory Standards transfer
-Note4: Saving on Expanded Public Works Projects

5. Detail Current Expenditure *
Goods and services
2013/14
R’000
2012/13
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
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, recruitment, tenders
Owned and leasehold property - Renovations for the previous financial year (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 and Forensic investigations
Catering
Assets less than R5 000
Bursaries employees
Rental and hiring
Administrative fees (Registration, bank charges, management and handling fees)
Entertainment - Meetings with external and internal stakeholders.
Transport provided as part of the departmental activities.
Fleet services
38 969
58 201
66 678
62 796
52 693
27 264
15 991
17 385
12 483
8 077
4 022
2 518
1 740
3 058
1 608
311 34 15
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
Total

6. Notes on goods & services
Item
Description
Variance
R’000
Consultants , contractors and agency/ outsourced services
Increase
Increased operation and manning cost for the SA Agulhas and Algoa Vessels
17 500
Operating leases
Decrease
Additional rental/ accommodation charges in respect of the NRM regional offices and operating lease payments.
5 754
Computer services -
The support and maintenance for Working for Water and Fire Information Management System, Premium support and 2nd year Enterprise Agreement with Microsoft via SITA
New departmental building expenditure
16 625

7. Detail Other Operating Expenditure *
Notes
Expenditure
Other operating expenditure *
2013/14
R’000
2012/13
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
28 356
18 448
5 602
3 033
649
1 087
916
110
30 866
14 598
5 513
1 690
1 434
1 206
1 200
977
Total
58 201
57 484
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.
* Refer following slides

8. Payment for Professional bodies, membership and subscription fees
Payment for Professional bodies, membership and subscription fees* (R18 448)
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

9. Allocation to Public Entities and Own Revenue for the year ended 31st March 2014
SANParks
R’000
SANBI
SAWS
ISWP
TOTAL
Total Allocation
DEA Operational
Infrastructure Grant
55 570
20 000
28 790
96 790
Transfers from other departments/institutions, EPWP)
5 067
10 205
Total Transferred
60 443
14 646
Revenue from operating activities/Admission fees/Aviation income/Park revenue
Other income
Sales
Investment income
Donations
Fair value gain
Non-regulated commercial income
Penalties
20 169
33 529
21 275
5 391 -
36 735
14 304
1 871
6 522
171
840
81 952
898
4 616
5 520
16 247
11 902
2 039
675 10 20
37 410
35 400
33 088
11 092
Sub-total
Deferred grant /transfers
(45 454)
38 654
(64 229)
(71 028)
Total revenue
86 202

10. Public Entities Revenue and Expenditure for the year ended 31st March 2014
SANParks
R’000
SANBI
SAWS
iSimangaliso
Total revenue per annual financial statements
( )
( )
( )
(86 202)
Total expenditure per annual financial statements
Surplus/(Deficit) per annual financial statements
40 751
39 820
40 164
(20 813)
NB: SANParks has recorded a surplus of R40,7 million as opposed to a deficit of R million due to the application of GRAP 23 whereby all revenue received for infrastructure projects were recognised for the year under review.

11. Public Entities Revenue and Expenditure for the year ended 31st March 2014

12. Public Entities Surplus/ (Deficit) for the year ended
31st March 2014
SANParks
R’000
SANBI
SAWS
iSimangaliso
Surplus/(Deficit)
40 751
39 820
40 164
(20 813)*
Reason
R million infrastructure grant revenue recognised as satisfied obligations during the year under review as well as the security services.
The subsidising of employees' post-retirement health care benefit resulted in an actuarial loss of R million.
Outstanding forestry grant claim from DAFF (R19,4m)
A decrease in the Defined benefit liability (R22,6m)
Capitalisation of Non-current assets (R24,2m)
Gains from fair value adjustment- investment property (R38,7) This property relates to the portion of the Waterkloof land earmarked for sub-leasing. The value of the land has increased from R44,5m to R83,2m.
This is a non-cash loss and is largely a function of reduced recoveries from projects and an increase in operating costs such as security related to boundary integrity (R21,3m)
Write-off balance of the amount due to the entity by Sanyati (R6,1m)

13. Auditor-General’s Opinion on Public Entities
Entity
Unqualified
Emphasis of matter
Reason/Comments
Action
SANParks
None
SANBI
Material under spending of the budget
Material underspent on capital expenditure by R15,400 million
The variance resulted from the timing differences between the transfer of funds from National Treasury and the actual spending. The Capital expenditure project are closely monitored to ensure that they are concluded on time.
SAWS
iSimangaliso

14. Allocations & Transfers to Other Agencies
DBSA
Green
Fund
R’000
Nat. Assoc.
for Clean Air
(NACA)
National Regulator of Compulsory Specifications.
Global Environmental Fund
(GEF)
Buyisa- e-
Bag
Compen-
sation Fund
Donations and Liences
Social Benefits/Leave gratitude
TOTAL
Allocated Budget
1 400
10 500
12 890
117
6 169 71
2 994
Transferred
( )
(1 400)
(10 220)
(12 890)
(117)
(6 169)
(71)
(2 994)
( )
Balance -
280

15. Allocations & Transfers Expanded Public Works Projects
Working for Water
R’000
Working for
Fire
Environmental Projects
TOTAL
Allocated Budget
Projects
Incentives
52 843
Transferred
( )
( )
( )
( )
( )
( )
( )
(52 843)
( )
( )
( )
( )
Balance
1 454
(279)
(14)
1 161*
*Unearned Incentives to paid back to National Treasury

16. Expanded Public Works per Projects*
Expenditure
2013/14
R’000
2012/13
Working for water
Sustainable land base livelihoods -
Working for Fire
People and parks
Working for waste
Working for coast
Working for forest operations
85 359
Working for land operations
91 757
41 384
Beneficiary training
24 013
36 464
Greening & open space management
Wildlife economy
35 917
Youth environmental service
36 817
Total *

17. Foreign Aid Assistance
Donor Country
Purpose
Budget Allocated
R’000
Expenditure
Balance
United Nations on Environmental Programmes (UNEP)
Convention on Climate Change & Reducing Mercury emission
964
1 669
(705)
United States Agency for International Development (USAID)
Compilation of ARID Transfrontier Projects
216 -
Denmark
Waste Management Strategy
1 000
(1 000)
Germany
Climate Change Programme & Supporting the development and implementation of access and benefit sharing policies in Africa – South Africa
1 099
824
275
Australia
Funding agreement in relation to South Africa land sector measurement
1 240
2 006
(766)
TOTAL
3 519
5 715
(2 196)

19. Departmental Expenditure Trend
Year
Budget
R’000
Actual
% Expenditure
2004/2005
98.9%
2005/2006
99.6%
2006/2007
99.9%
2007/2008
2008/2009
99.8%
2009/2010
2010/2011
96.0%
2011/2012
97.8%
2012/2013
95.5%
2013/2014

20. Auditor-General Report on the Financial Statements
Unqualified Audit (Clean audit)
Unauthorized and irregular expenditure:
No irregular expenditure occurred or brought forward to the reporting year.
Fruitless and wasteful expenditure
Possible fruitless expenditure from previous years project spending to the amount of R25,865 million has been disclosed.
Disclosure items in the financial statements
The department complied with all disclosure requirements, classifications and policy frameworks as prescribed by Treasury. However, National Treasury has exempted the department from applying Modified Cash Standards in respect of Infrastructure development projects.
Transfers to agencies and other organisations
All transfers made are per prior management and Treasury approval as well as within disclosure requirements.

21. THANK YOU