VOTE 30: ENVIRONMENTAL AFFAIRS Portfolio Committee Briefing

Annual Financial Statements for 2012/13 19-20 March 2013

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Presentation Outline

- Expenditure for 2012/13- Detail on current expenditure- Detail other operating expenditure- Transfers on EPWP - Transfers to Public Entities & non-profit and other institutions- Capital Expenditure- Departmental expenditure trend- Reprioritization to fund Oceans and Coasts shortfall- Public Entities Reporting

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Expenditure for the 2012/13 Financial Year per Programme

Programme Final appropriation

R’000

Expenditure till 15 March

2013R’000

Expenditure as % of final

appropriationR’000

Variance

R’000

1. Administration 715 751 654 879 91.5% 60 872

2. Environmental quality and protection 315 959 305 103 96.6% 10 856

3. Oceans and coasts 528 388 522 839 98.9% 5 549

4. Climate change 28 905 25 586 88.5% 3 319

5. Biodiversity and conservation 567 324 565 773 99.7% 1 551

6. Environmental sector programmes and projects 3 018 994 2 682 083 88.8% 336 911

Total 5 175 321 4 756 263 91.9% 419 058

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Expenditure per Economical ClassificationEconomical classification Final

appropriation

R’000

Expenditure till 15

March 2013

R’000

Variance

R’000

Current Payments 1 416 852 1 265 158 151 694- Compensation of employees- Goods and services - Interest

579 518837 101

233

543 310721 615

233

36 208115 486

-

Transfers and Subsidies 3 266 501 3 013 945 252 556

-Households: Expanded Public Works Programme Departmental entities*- Non-profit institutions*- Public Corporations: DBSA: Green Fund Projects-Other transfers:* Global Environmental Fund Households: Social benefits (leave gratification) North West University Vehicle licenses

2 179 586760 585

6 888300 000

12 8905 5381 000

14

2 148 257750 585

6 88788 774

12 8905 5381 000

14

31 32910 000

1211 226

----

Sub total 4 683 353 4 279 103 404 250

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Continued Expenditure per Economical ClassificationEconomical classification Final

appropriation

R’000

Expenditure till 15 March

2013

R’000

Variance

R’000

Payment for capital assets* 491 808 477 000 14 808

-Machinery and equipment -Buildings and other fixed structures (PPP new Departmental Building)-Software and other intangibles

269 861

220 5001 447

255 134

220 4191 447

14 727

810

Payments for financial assets 160 160 -

Sub total 491 968 477 160 14 808

TOTAL 5 175 321 4 756 263 419 058

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Funds to be rolled over/surrendered

R’0002012/13

Green Fund Expenditure Summary 2012/2013 to DBSA

Budget Allocation for the 2012/2013 financial yearManagement Fees& identified projects (9,360 +79,414)Funds available till 31 March 2013 (to be requested for rollover)

300,000(88,774)211,226

Rollover from unitary payment allocation for IT Infrastructure for the New Departmental Building (To be occupied in June 2014)

60 000

Total 271 226

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Expenditure graph till 15 March 2013

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Detail Current Expenditure *Notes Expenditure

Goods and services 2012/13R’000

2011/12R’000

Consultants , contractors and agency/ outsourced services (Annexure A -as at 28/02/13)*Travel and subsistence (Annexure B – as at 28/02/13)Other operating expenditure (refer to next slide)*Operating leases (include accommodation, car rentals and Nestle machines rentals; transfer to DAFF)Inventory (Including stores for Antarctica) – Herbicides purchased for eradication of alien invasion species: NRM, computer consumables for tracking oceanographic research items. Computer services (Increase in computer service, Microsoft Enterprise upgrade and licensing) Advertising (promotional items and recruitments costs) Venues and facilities (communication projects and meeting to facilitate the transfer of NRM)Owned and leasehold property expenditure (Include building maintenance and repairs)Training and staff development (NRM Implementing Agencies & pilot youth programmes ; Training to employees)Communication (Installation of data lines, telephone & conference facilities in regions/Cape Town) Audit cost Catering Bursaries employeesAdministrative fees (increase in personnel agency and travel agency fees) Transport provided as part of the departmental activitiesFleet services Management / Handling Fees

220 469 134 162

53 96767 143

75 707

18 01926 62126 78722 266

6 853

15 984

5 7183 9091 630

65962

041 659

556 69296 91063 74858 068

50 248

28 90524 13421 50716 78116 043

10 978

8 5905 5621 210

765136

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TOTAL 721 615 960 2788

Detail Current Other Operating Expenditure *

Notes Expenditure Expenditure

Other Operating Expenditure *2012/13 2011/12

R’000

Air charter services, voyages to Islands& landing rights Harbour, dock fees (Buoy, ocean surveyor & systems)Annual Membership and subscription fees (GEF) Printing & publications services Resettlement costsCourier & Delivery servicesFreight services transport goodsOther:Car valet & wash services/Laundry services/Gifts/Nonlife insurance/Drivers licenses & permits/Achievements and awards/Storage of assets & goods

29 9381 434

12 1785 3551 6371 035

970

1 420

25 29314 98914 385

4 6843 293

805204

95

TOTAL 53 967 63 748

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Transfer onExpanded Public Works Projects 2012/13 *

Institutions R’0002012/13

R’0002011/12

Sustainable land base livelihoods 476 590 245 454

Working for waste 188 069 177 021

People and parks 217 208 128 770

Working for the coast 112 674 76 384

Beneficiary training 35 753 23 869

Working for Fire 381 412 351 996

Working for Water 736 551 297 572

Total 2 148 257 1 301 066

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Transfer to Public Entities *

Institutions 2012/13

R’000

2011/12

R’000

South African National Parks 319 216 222 014

South African Biodiversity Institute 209 698 220 387

South African Weather Services 150 581 148 407

iSimangaliso Wetland Park of Authority 71 090 67 847

Total 750 585 658 655

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Transfer to Non-Profit Institutions *2012/13

R’0002011/12

R’000

Buyisa-e-Bag 200 16 050

Wildlife and Environmental Society of South Africa 4 000 4 000

African World Heritage Fund 0 3 000

National Association for Clean Air 1 400 1 400

Maloti Drakensberg 1 287 1 203

Total 6 887 25 653

Global Environmental Fund 12 890 12 890

Social Benefit 5 538 2 838

North West University 1 000 967

Municipalities (various) 14 5

Total 19 442 16 700

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Payment for Capital Assets *Machinery and equipment 2012/13

R’0002011/12

R’000

Building & Other fixed structures ( PPP New Departmental Building)Ship & marine equipment (SA Agulhas II Vat & Clearing costs)2012/13)Computer hardware & systemsExpenditure for capital assets; Good and servicesAudio visual equipmentOffice furnitureFinance fee leaseOffice equipmentPhotographic equipmentMotor vehicleSoftware and other intangible assetsMedical and allied equipmentLifting & handling equipmentTransport accessories & trailersRadio equipmentSecurity equipment, systems, material: movableWorkshop equipmentGardening equipmentKitchen appliancesTelecommunication equipmentBagsSurvey equipmentDomestic equipmentEmergency / Rescue EquipmentWoodwork Machinery and Equipment

220 419232 400

8 6700

462821

3 046533239653

1 4474 623

86176

770

680

515015

08

2 1461 010

0645 701

9 1376 0734 4242 3572 1001 365

627698515369213147118

79706944382411

700

Total 477 000 673 72613

Departmental Expenditure Trend

Year BudgetR’000

ActualR’000

% Expenditure

2009/2010 3 510 641 3 503 338 99.8%

2010/2011 2 488 514 2 390 023 96.0%

2011/2012 4 201 616 4 108 549 97.8%

2012/2013 5 175 321 4 756 263 91.9%

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Identified Shortfalls for Oceans & Coasts

R’000

SA Agulhas 11 insuranceSA Agulhas 11 Administration costsOverlapping manning & operational costs (SA Agulhas 1 & 11)

ALGOADrydocking costsBunkers & LubesTechnical management fee, manning, & insurance

Research & Laboratory EquipmentHelicopter Services

Additional Life Saving Relief Voyage

3 4374 5557 410

24 229

61 66150 505

4 500

Total 151 797

15* Additional required to fund the shortfall (151 797 – 116 753) = 35 044

8 000 2 20014 029

Reprioritization to fund Oceans & Coasts (within 8% per PFMA Requirements)

Programme Amount

R’000

Programme 1 Goods and Services Programme 2 (Environmental Quality & Protection)

Programme 4 (Climate Change)

Programme 5 (Biodiversity & Conservation)

Programme 6 (Sector Programmes)

(62 239)

(10 000)

(2 514)

(12 000)

(30 000)

Total (116 753)

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Preparedness for year end and audits

• Projected Unqualified Audit

• Interim Audit by Auditor General conducted, report to be issued end of March

• Full reporting on PPP disclosure required in the current financial year. • Unauthorized and irregular expenditure:

No irregular expenditure has been reported to date

• Projected Expenditure as at 31 March 2013 - 93%-95%

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Public Entities Reporting (next)

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