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VOTE 30 2012/2013 Annual Financial Statements for the year ended 31 March 2013 Annual Report Presentation to the Portfolio Committee on Water and Environmental Affairs 15 October 2013. Presentation Outline. Expenditure per programme Expenditure per economic classification - PowerPoint PPT PresentationTRANSCRIPT
VOTE 30 2012/2013
Annual Financial Statements for the year ended31 March 2013
Annual Report Presentation to the Portfolio Committee on Water and Environmental Affairs
15 October 2013
1
Presentation Outline
- Expenditure per programme- Expenditure per economic classification- Transfers to Public & Entities and other Agencies- Expanded Public Works Programmes & Projects - Donor Funding- 30 Days Payment Report- Auditor- General report
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Expenditure for the 2012/13 Financial Year per Programme
Programme Final appropriation
R’000
Expenditure
R’000
Expenditure as % of final
appropriationR’000
Variance
R’000
1. Administration 715 751 703 041 98.2% 12 710
2. Environmental quality and protection 324 990 324 990 100.0% -
3. Oceans and coasts 524 584 524 584 100.0% -
4. Climate change 28 905 28 061 97.1% 844
5. Biodiversity and conservation
568 413 568 412 100.0% 1
6. Environmental sector programmes and projects
3 012 678 2 793 573 92.7% 219 105
Total 5 175 321 4 942 661 95.5% 232 660
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Expenditure per Economical Classification
Economical classification Final appropriation
R’000
Expenditure
R’000
BalanceSurrendered
R’000
Note
Current Payments 1 407 165 1 385 750 21 415- Compensation of employees -Goods and services
574 882832 283
560 834824 916
14 0487 367
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Transfers and Subsidies 3 293 354 3 082 109 211 245
Departmental agencies and accountsForeign GovernmentsNon Profit OrganisationsOther transfers – Green FundExpanded Public Works Projects
750 58512 89029 978
300 0002 199 901
750 58512 89029 95988 774
2 199 901
--
19211 226
3
Payment for capital assets* 474 802 474 802 -
PPP payment for the new buildingSA Agulhas: VAT and Customes Clearing costMachinery, computers, office, laboratories equipment,& financial assets
220 000187 684
67 118
220 000187 684
67 118
o/w payments for financial assets 161 161 -
Total 5 175 321 4 942 661 232 660
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Funds surrendered to National Treasury-Note 1: vacant posts not filled during the review of the establishment-Note 2: Savings from goods & services-Note 3: Late allocation of Green Fund budget by NT therefore late approvals of projects
Detail Current Expenditure *Notes Expenditure
Goods and services 2012/13R’000
2011/12R’000
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. Annexure COther operating expenditure (refer to next slide)*Operating leases – Accommodation charges and operating lease payments.Inventory – herbicides, research supplies, oil & gas, food suppliesComputer services - External computer services, software license and operational systems. Advertising – Media coverage services. Owned and leasehold property - Renovations (Fedsure forum- Pretoria and Waterfront building).Communications – (Radio, TV transmission, National People's and Parks conference)Training and staff development (courses & workshops)Audit cost - ExternalCateringAssets less than R5 000Bursaries employeesRental and hiring - Minister's Sod-Turning ceremony for the new building.Administrative fees - Launch of SA Algulhas II and the Sod-Turning ceremonyEntertainment - Meetings with external and internal stakeholders. Transport provided as part of the departmental activities.Fleet services
340 382
142 28330 21957 48467 48859 89336 06826 82021 745
16 5907 3685 7184 0713 9891 6801 6751 139
2326210
556 692
96 91021 50763 74858 06850 24828 90524 13416 781
10 97816 043
4 4343 0654 1561 2102 428
765136
691
Total 824 916 960 278
Notes on goods & services
Item Description VarianceR’000
Consultants , contractors and agency/ outsourced services
Decrease in contractorsCOP 17 late invoices paid in 2012– R112m,Re-classification of NRM contractors from goods & services to transfers- R104m
216 310
Operating leases Increase Additional rental/ accommodation charges in respect of the NRM regional offices and operating lease payments.
9 420
Computer services - IncreaseThe support and maintenance for Working for Water and Fire Information Management System, Premium support and 2nd year Enterprise Agreement with Microsoft via SITA.
7 163
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Detail Other Operating Expenditure *
Notes Expenditure
Other operating expenditure *2012/13
R’0002011/12
R’000
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.
30 86614 598
5 5131 6901 4341 2061 200
977
25 29314 385
4 6843 293
14 989805
95204
Total 57 484 63 748
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* Refer following slides
Payment for Professional bodies, membership and subscription fees* (R14 598)
• 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
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Allocation to Public Entities and Own Revenue
Revenue SANParksR’000
SANBIR’000
SAWSR’000
ISWPR’000
TOTAL
DEA Operational and Infrastructure Grant 319 216 209 698 150 581 71 090 750 585
Transfers from other departments/institutions, EPWP)
259 936 179 665 8 453 34 846 482 900
Total Transferred 579 152 389 363 159 034 105 936 1 233 485
Revenue 1 097 375 53 557 94 316 15 716 1 260 964
Revenue from operating activities/Admission fees/Aviation income/Park revenueOther incomeSalesInvestment incomeDonationsFair value gainNon-regulated commercial incomePenalties
1 058 11720 196
3 75212 573
2 737---
32 05413 870
1 5955 586
239213
--
73 7711 853
-4 781
--
13 911-
10 9954 231
-465
---
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Sub-total 1 676 527 442 920 253 350 121 652 2 494 449
Deferred grant /transfers - (43 346) 22 (42 341)
Total revenue 1 676 527 399 574 253 372 79 311 2 408 784
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Expenditure SANParksR’000
SANBIR’000
SAWSR’000
iSimangalisoR’000
Total revenue per annual financial statements
(1 676 527) (399 574) (253 372) (79 311)
Total expenditure per annual financial statements
1 717 837 405 211 269 120 89 036
Deficit per annual financial statements
(41 310) (5 637) (15 748) (9 725)
Public Entities Revenue and Expenditure
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Public Entities Revenue and Expenditure
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SANParksR’000
SANBIR’000
SAWSR’000
iSimangalisoR’000
Deficit 41 309 5 637 15 748 9 725
Reason • Damages caused by floods (R7m)
• Outstanding forestry grant (R24,4m) - Request submitted to National Treasury during the 2013/2014 financial year to include in the adjustments estimate allocation.
• Operating cost as a result from control take over of the restaurants in the KNP, Kgalagadi and Augrabies National Parks (R10,m)
• Increased liability valuation on retirement benefits fund for employees (Post-retirement Medical Benefit R2m and interest on Fair value of Defined Benefit Obligation R3m)
• Shortfall in: Aviation income
(R5.7m) Non-regulated
commercial revenue (R5.3m)
• Bad debt written-off in respect of administrative expenses (R4.2m)
• Bad debt written-off in respect of penalties levied on a contractor that subsequently went into liquidation (R5.7m)
• Increase in sub-contractors in respect of project cost (R4m).
Public Entities Deficit
Auditor-General’s Opinion on Public Entities
Audit Opinion
Entity Unqualified Emphasis of matter
Reason/Comments Action
SANParks Unqualified None - -
SANBI Unqualified Yes Leave and bonus accrual disclosed as provisions
(Previous year restated)
Reporting error corrected
SAWS Unqualified None Material non- compliance reported due to the
misstatement of commitments (leases) and 31 March 2012
need to be restated
Misstatement was corrected and previous
year figure restated
iSimangaliso Unqualified Yes Identified classification errors that required corrections and restatement of the previous years financial statements
Reclassification was done and previous
year figures restated
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Allocations & Transfers to Other Agencies
DBSAGreen Fund
R’000
Nat. Assoc.
for Clean Air
(NACA)
R’000
Nat. Regulator
of Compulsory Spec. &
Comp. Fund
(NRCS)R’000
Global Environmental Fund
(GEF)R’000
KZN Conserv. Board:Maloti
North West
University
World Wild Life Soc. Of
SAWESSA
Social Benefits/
Leave gratitude
TOTAL
R’000
Allocated Budget
Donations & Licenses
Buyisa eBag
300 000 1 400 10 0007 689
12 890 1 288 1 000 4 000 3 893 342 160
508
200
Transferred (88 774) (1 400) (17 689) (12 890) (1 287) (1 000) (4 000) (3 893) (130 933)
Donations & licenses
Buyisa e bag
(490)
(200)
Balance 211 226 - - - 1 - - 211 245
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Allocations & Transfers Expanded Public Works Projects
Working for Water
R’000
Working for Fire
R’000
Environmental Projects
R’000
TOTAL R’000
Allocated Budget 705 836 446 288 1 048 019 2 200 143
Projects Incentives
550 800155 036
397 37748 911
900 674147 345
1 848 851 351 292
Transferred (705 605) (446 276) (1 048 020) (2 199 901)
ProjectsIncentives
(550 557)(155 048)
(397 377)(48 899)
(900 675)(147 345)
(1 848 609) (351 292)
Balance 231 12 - 243*
*Unearned Incentives to paid back to National Treasury
Expanded Public Works per Projects*Expenditure
2012/13R’000
2011/12R’000
Working for water 662 519 297 572
Sustainable land base livelihoods 493 290 245 454
Working for Fire 362 620 351 996
People and parks 215 748 128 770
Working for waste 188 069 177 021
Working for coast 114 448 76 384
Working for forest operations 85 359 -
Working for land operations 41 384 -
Beneficiary training 36 464 23 869
Total 2 199 901* 1 301 066*
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*The increase in 2012 is due to Additional funding received from NT for Environmental Programmes (- +R375 million) including the shift from small contractors to transfers (-+R480 million)
Foreign Aid Assistance
Donor Country Purpose Budget Allocated
Expenditure Balance
United Nations on Environmetal Programmes (UNEP)
Convention on Climate Change & Reducing Mercury emission
518 444 74
United Nations Development Programmed (UNDP)
Rotterdam Convention & Marine Coastal Programme
(48) (48) -
Denmark Waste Management Strategy 1000 1 000
Botswana Transfrontier Conservation Strategy
812 - 812
World Bank African Stofile Programme (8) 44 (52)
Norway Environmental Co-operation Programme
- - -
Germany Climate Change Programme 540 1 539
TOTAL 2 814 1 441 1 37317
30 Days Report Financial 2012-13
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FY 2012-13 Apr'12 May'12 Jun'12 Jul'12 Aug'12 Sep'12 Oct'12 Nov'12 Dec'12 Jan'13 Febr'13 March'13 TotalTotal Number of Invoices < 30 days 620 1,753 1,772 2,115 1,568 1,751 2,401 2,546 2,339 2,374 2,588 3,875 25,702 Total Expenditure < 30 days R 320,742 R 432,325 R 455,843 R 527,986 R 290,239 R 276,323 R 369,561 R 456,461 R 436,883 R 378,767 R 400,391 R 597,140 R 4,942,661Average days of payments 24 26 22 31 25 23 27 22 23 25 20 24 24 Number of Invoices > 30 days 4 24 15 83 25 19 21 19 1 12 - 2 225 Total Value > 30 days R 30 R 387 R 289 R 692 R 985 R 154 R 3,344 R 249 R 87 R 28 R 0 R 36 R 6,281Percentage of payments > 30 days 1% 1% 1% 4% 2% 1% 1% 1% 0% 1% 0% 1% 1%
Exception Report: Instruction Note 34 (Effecting Payments Within 30 Days)Financial Year 2012-2013
Apr '12 May '12 Jun '12 Jul '12 Aug '12 Sep '12 Oct '12 Nov '12 Dec '12 Jan '13 Feb '13 Mar '13
legislated Base line 30 30 30 30 30 30 30 30 30 30 30 30
Average payment days 24 26 22 31 25 23 27 22 23 25 20 24
Percentage of payments > 30 days 1% 1% 1% 4% 2% 1% 1% 1% 0% 1% 0% 0%
0
5
10
15
20
25
30
35
Num
ber o
f da
ys
Exception Report: Effecting Payment Within Thirty (30) Days
Departmental Expenditure Trend
Year BudgetR’000
ActualR’000
% Expenditure
2004/2005 1 652 268 1 633 882 98.9%
2005/2006 1 753 307 1 746 154 99.6%
2006/2007 2 061 804 2 059 664 99.9%
2007/2008 2 790 521 2 788 757 99.9%
2008/2009 3 206 557 3 198 878 99.8%
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 4 942 661 95.5%
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Auditor-General Report on the Financial Statements (Refer Annexure A)
• Unqualified Audit
• One matter on material misstatement of commitments:– Commitments overstated by R61,575 million as a result of including LOGIS orders that should
have been deleted prior to 31 March 2013.– Corrected in Annual Financial Statements after 31 May 2013.– Resulted in non-compliance to specific matters in key applicable laws and regulations.
• Unauthorized and irregular expenditure: - No new irregular expenditure occurred.
- Irregular expenditure was incurred in the previous financial year- 2012/1 was condoned by National Treasury
• Disclosure items in the financial statementsThe department complied with all disclosure requirements, classifications and policy frameworks as prescribed by Treasury.
• Transfers to agencies and other organisationsAll transfers made are per prior management and Treasury approval as well as within disclosure requirements.
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