1. Vote 27 : Environmental Affairs Portfolio Committee Briefing Expenditure Report for period 1 April – 31 December 2015 Ms Nosipho Ngcaba Director-General Department of Environmental Affairs 16 February 2016 1

2. Presentation Outline -Expenditure per programme -Expenditure per economic classification -Expanded Public Works Programmes & Projects -30 days payment report -Donor Funding -Public Entities Review 2

3. Expenditure for the 2015/16 Financial Year per Programme ProgrammeAdjusted Appropriation R’000 Q1: Expenditure 1 April - 30 June 2015 R’000 Q2: Expenditure 1 July – 30 Sept 2015 R’000 Q3: Expenditure 1 Oct – 31 Dec 2015 R’000 Total Expenditure April – Dec 2015 R’000 % Spent 1. Administration870 184155 642232 083243 954631 67973 2. Legal, authorization and compliance 133 92127 82031 59635 27894 69471 3. Oceans and coasts399 52973 86099 998102 730276 58869 4. Climate change and air quality 240 14960 84266 57362 072189 48779 5. Biodiversity and conservation730 600168 784157 104158 369484 25766 6. Environmental programmes3 489 633864 501888 7331 082 3692 835 60381 7. Chemicals and waste management 79 28116 85317 14220 42254 41769 Total5 943 2971 368 3021 493 2291 705 1944 566 72577 23%25%29%77% 3

4. Programme 1: Administration: 73% Operation Phakisa expenditure of R77m Facilitated investment in specialised infrastructure for ports and harbours to the amount of R17 billion - Aquaculture projects with DAFF - Water Quality Monitoring - National Oceans and Coasts Information System - Marine Spatial Planning - Strategic environmental assessments to fast track authorisations Programme 3: Oceans and Coasts: 69% - Agency payment for operation and maintenance of SA Agulhas II and Algoa research vessels, - Marine Protected Areas (MPA) contracts - Oceans Laboratories - Helicopter Services for Gough Island voyage 4 Additional information on expenditure per Programme till 31 March 2016

5. Programme 5: Biodiversity and Conservation: 66% - CITES COP 17 expenditure for venue, communication and secretariat services (R19,3 m already paid in January 2016, balance R55,7m in February – March 2016 Programme 6: Environmental Programmes: 81% Over expenditure on Environmental Projects and Infrastructure Programme. Funds to be reprioritised between EPWP projects and Infrastructure projects of Public Entities Programme 7: Chemicals and Waste Management: 69% National Regulator of Compulsory Specifications (NRCS): payment to be effected in February 2016 5 Additional information on expenditure per Programme till 31 March 2016

6. Expenditure per Economical Classification Economical classificationAdjusted appro- priation R’000 Q1: Expenditure 1 April - 30 June 2015 R’000 Q2: Expenditure 1 July – 30 Sept 2015 R’000 Q3: Expenditure 1 Oct – 31 Dec 2015 R’000 Total Expenditure April – Dec 2015 R’000 % Spent Current Payments1 997 353379 615491 978531 4071 403 00070 - Compensation of employees - Goods and services** 930 681 1 066 672 212 415 167 200 244 322 247 656 226 625 304 782 683 362 719 638 73 67 Transfers and Subsidies3 762 739963 834960 1641 133 2973 057 29581 Departmental Agencies Foreign Governments Non-Profits Institutions Green fund Expanded Public Works Other Transfers -compensation fund, leave gratuity & bursaries 1 104 583 16 000 10 519 300 000 2 328 673 2 964 236 757 0 725 269 1 808 329 921 0 3 487 0 626 182 574 167 369 16 000 0 150 000 799 346 582 734 047 16 000 3 487 150 000 2 150 797 2 964 66 100 33 50 92 100 Payment for capital assets*183 20524 85341 08740 490106 43059 PPP New Building: Unitary payment Machinery & Equipment Financial & Software Assets 135 576 47 127 502 20 985 3 865 3 31 702 8 989 396 31 264 9 123 103 83 951 21 977 502 62 47 100 Total 5 943 2971 368 3021 493 2291 705 1944 566 725 77 4

7. Total expenditure already at 77%, 2% above target of 75% due to all payment documents received processed in December 2015 before closure Unitary Payment for PPP agreement: 4 months payments till 31 March 2016 still to be paid (December, January, February and March) Compensation of Employees within allocated amounts, no over expenditure projected Goods and Services at 67%, Projects projected to be finalised in the 4 th quarter: - Small contractors for alien invasive species, - SITA payments, - Office Accommodation (Regional and Cape Town Offices), - Strategic Infrastructure Projects (SIPS), 99% expenditure projected for the 2015/16 financial year 7 Additional information on expenditure till 31 March 2016

8. Detail Current Expenditure * Goods and servicesQ1 R’000 Q2 R’000 Q3 R’000 Total R’000 Consultants, contractors and agency/ outsourced services **(Annexure A) Travel and subsistence - Foreign & Domestic Travel **(Annexure B) 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 0 118 173 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 1 982 120 475 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 1 619 551 288 215 145 799 30 461 35 088 45 350 7 316 31 094 51 287 17 674 2 232 10 663 14 204 15 632 7 267 6 036 559 1 173 7 055 2 533 TOTAL167 200247 656304 782719 638 8

9. Graphical Presentation 9

10. Detail Consultants, Contractors and Agency Services * NotesQ1 R’000 Q2 R’000 Q3 R’000 Total R’000 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 Medical Services: Examinations Transport Graphic Designers Audio visual Services Casual Labourers 0 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 2 970 115 88 914 4 001 132 344 51 776 5 838 510 1 204 54 424 65 TOTAL49 567118 173120 475288 215 10

11. Detail Current Other Operating Expenditure * NotesQ1 R’000 Q2 R’000 Q3 R’000 Total R’000 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 0 869 1 139 339 347 74 92 8 057 6 092 1 843 505 390 115 117 13 909 11 649 5 177 1 018 1 160 525 1 650 TOTAL15 1092 86017 11935 088 11

12. Payment for Professional bodies, membership and subscription fees* (R11 649 000) 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 12

13. Payment of Capital Assets Machinery and EquipmentQ1 R’000 Q2 R’000 Q3 R’000 Total R’000 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 0 5 644 1 826 177 162 63 0 6 193 0 189 0 128 0 46 14 541 0 3 996 2 308 129 99 578 17 22 118 485 679 27 134 0 15 81 198 63 174 12 619 4 492 412 315 714 26 96 376 504 914 35 279 38 25 46 29 622 198 63 174 Total3 8658 9899 12321 977 13

14. 14 Allocations & Transfers to DEA Public Entities SANParks R’000 SANBI R’000 SAWS R’000 ISWP R’000 TOTAL R’000 Allocated Budget546 979304 412160 42392 7691 104 583 DEA Operational Infrastructure Grant 278 675 268 304 232 149 72 263 160 423 0 31 628 61 141 702 875 401 708 Transferred(355 362)(204 658)(120 312)(53 715)(734 047) DEA Operational Infrastructure Grant (198 710) (156 652) (174 658) (30 000) (120 312) (0) (23 715) (30 000) (517 395) (216 652) Balance191 61799 75440 11139 054370 536 % Spent68%67%75%60%66%

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 Environm ental Fund (GEF) R’000 African World Heritage Fund R’000 Natal Conserva tion Board R’000 Other transfers R’000 TOTAL R’000 Allocated Budget 300 0001 4006 83216 0001 0001 2872 964329 483 Transferred(150 000)(1 200)(0)(16 000)(1 000)(1 287)(2 964)(172 451) Balance*150 000200**6 8320000157 032 % Spent50%86%0%100% 52% * Green Fund: request received end January 2016 to process payment, to be transferred in February 2016 ** NRCS payment to be effected in February 2016

16. 16 Allocations & Transfers Environmental Public Works Projects Working for Water R’000 Working on Fire R’000 Environmental Projects R’000 TOTAL R’000 Allocated Budget912 574613 232802 8672 328 673 Projects Incentives 775 445 137 129 569 213 44 019 641 914 160 953 1 986 572 342 101 Transferred(736 608)(525 304)(888 885)(2 150 797) Projects Incentives (650 513) (86 095) (525 304) (0) (778 392) (110 493) (1 954 209) (196 588) Balance175 96687 928*(86 018)177 876 % Spent81%86%111%92% * Environmental Projects over spending will be reprioritised from within EPWP allocation

17. 17 Invoices paid on average within15 days while the legislated baseline is 30 days

18. Foreign Aid Assistance Name of Donor Country PurposeBudget Allocated R’000 Expenditure R’000 United NationsBenguela Current Large Marine Ecosystem Programme 540 AustraliaFunding agreement in relation to South Africa Land Sector Measurement 1 121970 BotswanaTransfrontier Conservation Areas Strategy8130 GermanyClimate Change Support Programmes4290 GermanyPromethium Carbon Programme590 USAIDCompilation of Arid Transfrontier Project1030 NORWAYCapacity Development within the South African National Greenhouse Gas Inventory Unit (New) 2 8270 UNEPStrengthening Law Enforcement Capabilities to Combat Wildlife Crime for Conservation and Sustainable Use of Species: Target: Rhinoceros 11 5565 921 18

19. Foreign Aid Assistance cont….. Name of Donor Country PurposeBudget Allocated R’000 Expenditure R’000 UNEPPreparation of Intended Nationally Determined Contribution (INDC) to the 2015 Agreement under UNFCCC 1 6684 UNEPAEWA: 6 th session of the AEWA meeting of parties1 218 Total19 848 8 113 19

20. Public Entities 3 rd Quarter Review 31 December 2015 20 Ms Nosipho Ngcaba Director-General Department of Environmental Affairs 16 February 2016

21. Allocation to Public Entities and Own Revenue for the year ended 31 st December 2015 RevenueSANParks R’000 SANBI R’000 SAWS R’000 ISWP R’000 DEA Operational and Infrastructure Grant355 362204 658120 31253 715 Total Transferred355 362204 658120 31253 715 Revenue1 317 811147 282105 74039 883 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 1 203 999 34 118 23 021 14 313 42 360 31 913 53 368 6 932 44 934 10 135 91 292 1 048 1 371 2 674 9 355 14 320 22 319 1 232 - 2 012 Sub-total1 673 173351 940226 05293 598 Deferred grant /transfers--- (34 406) Total revenue1 673 173351 940226 05259 192 21

22. Public Entities Revenue and Expenditure as at 31 December 2015 ExpenditureSANParks R’000 SANBI R’000 SAWS R’000 iSimangaliso R’000 Total revenue1 673 173351 940226 05259 192 Total expenditure(1 463 636)(376 043)(246 546)(48 628) Surplus/(Deficit)209 537(24 103)(20 494)10 564 22

23. Public Entities Revenue and Expenditure as at 31 December 2015 21

24. SANParks R’000 SANBI R’000 SAWS R’000 iSimangaliso R’000 Surplus/(Deficit)209 537(24 103)(20 494)10 564 Reason The realisation of the Infrastructure grant income (application of GRAP23 - recognition of grants received) Due to a decrease in income, MTEF behind by (R9,64m) Capital expenditure is behind budget 22.83% Mainly due to over- expenditure in Operating costs (10,39m) year to date Where Depreciation and Amortization exceeds budget (30%) The surplus of R10.3m is non-cash surplus attributable to the application of GRAP23 (recognition of grants) Public Entities Surplus/ (Deficit) as at 31 December 2015 24

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