CGS Annual Performance Plan 2019/2020
Transcript of CGS Annual Performance Plan 2019/2020
CGS Annual Performance Plan 2019/2020
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FOREWORD
The Council for Geoscience (CGS) has adopted a new strategy in 2018/2019 financial year to refocus the functions of the organisation to its legislatively prescribed mandate. This refocus of the CGS strategy was primarily determined to provide a framework that seeks to optimise the delivery of the CGS programme (i.e. the integrated and multidisciplinary geoscience mapping programme at a scale of 1: 50 000) which is sufficiently aligned with the intent of “science applications in responding to current and future societal challenges” as well as National imperatives.
This document presents the CGS Annual
Performance Plan (APP) for the Medium Term
Expenditure Framework (MTEF) period 2019–2022,
which operationalises the five-year Strategic Plan of
the CGS. The CGS APP outlines the Geoscience
Technical Programme, which supports the strategic
objectives. The APP further provides an indication
of financial and Human Resources allocations, as
well as performance indicators and targets.
The APP also highlights the linkages of the work of
CGS to national developmental imperatives that
span the National Development Plan, Medium
Term Strategic Framework (MTSF), the 10-year
innovation plan of the DST, the DMR goals,
transformative agenda, environmental
stewardship, energy security, etc.
We are delighted to present the APP of the Council for Geoscience for 2019/2020 in support of accelerating the delivery of our mandate, as inscribed in the Geoscience Act, Act No. 100 of 1993 and the Geoscience Amendment Act, Act No. 16 of 2010. This APP is closely aligned to the CGS strategy integrating all critical aspects of the geosciences.
___________________________ ___________________________ Mr Mosa Mabuza Dr Humphrey Mathe Chief Executive Officer Chairperson of the Board
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OFFICIAL SIGN-OFF
It is hereby certified that this Annual Performance Plan:
● Was developed by the Management of the Council for Geoscience under the guidance of the Board.
● Considers all the relevant policies, legislation and other mandates for which the Council for Geoscience is
responsible.
● Accurately reflects the strategic goals, strategies and outputs which the Council for Geoscience will
endeavour to achieve over the financial year 2019/2020.
Mr Leonard Matsepe
Chief Financial Officer Signature_____________________
Mr Mosa Mabuza
Chief Executive Officer Signature_____________________
Dr Humphrey Mathe
Chairperson of the Board Signature_____________________
Mr Samson Gwede Mantashe
Executive Authority Signature_____________________
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TABLE OF CONTENTS
FOREWORD .............................................................................................................................................. i
OFFICIAL SIGN-OFF .................................................................................................................................. ii
LIST OF TABLES ....................................................................................................................................... iv
LIST OF FIGURES ..................................................................................................................................... iv
ACRONYMS ............................................................................................................................................ iv
EXECUTIVE SUMMARY ............................................................................................................................ 1
PART A: STRATEGIC OVERVIEW .............................................................................................................. 1
UPDATED SITUATIONAL ANALYSIS .......................................................................................................... 1
1.1 External Environmental Analysis ............................................................................................. 1
1.1.1 Macro Socio-Economic Trends ............................................................................................ 1
1.1.2 Mining Industry Overview ................................................................................................... 2
1.1.3 Stakeholder Analysis ........................................................................................................... 6
1.1.4 Organisational Overview ..................................................................................................... 8
PART B: STRATEGIC OBJECTIVES ........................................................................................................... 11
STRATEGIC CONTEXT............................................................................................................................. 11
STRATEGIC OBJECTIVES AND ANNUAL PERFORMANCE TARGETS FOR MTEF CYCLE (FY 2019/2020 – FY
2021/2022)............................................................................................................................................ 13
1.2 Objective (Programme) 1: Financial sustainability (Financial Perspective) .......................... 13
1.3 Objective (Programme) 2: Organisational Effectiveness and Efficiency (Organisational
Effectiveness and Efficiency Perspective) ......................................................................................... 14
1.4 Objective (Programme 3): An Empowered, Transformed, Motivated and Capacitated
Workforce (Learning and Growth Perspective) ................................................................................ 15
1.5 Objective (Programme) 4. Delivery of the mandate (Stakeholder/Market Perspective) ..... 16
1.6 Objective (Programme) 5. Advisory, Stakeholder Engagement and Knowledge
(Stakeholder/Market Perspective).................................................................................................... 17
QUARTERLY PERFORMANCE TARGTES FOR FY 2019/2020 ................................................................... 18
1.7 Programme 1: Financial Perspective ..................................................................................... 18
1.8 Programme 2: Systems Perspective ...................................................................................... 19
1.9 Programme 3: Learning and Growth Perspective ................................................................. 20
1.10 Programme 4: Stakeholder/Market Perspective .................................................................. 21
OVERVIEW OF THE MTEF BUDGET AND MTEF ESTIMATES .................................................................. 23
1.11 Resource Requirements ........................................................................................................ 23
1.11.1 Income Statement ............................................................................................................. 23
1.11.2 Revenue Analysis .............................................................................................................. 24
1.12 Expenditure Estimates .......................................................................................................... 25
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1.13 Materiality Framework ......................................................................................................... 26
PART C: EXECUTION PLAN ..................................................................................................................... 29
INTEGRATED AND MULTIDISCIPLINARY GEOSCIENCE MAPPING PROGRAMME .................................. 29
1.14 GEOSCIENCE TECHNICAL PROGRAMME AND BUDGETS FOR THE FY 2019/2020 ................. 32
STRATEGIC RISKS ................................................................................................................................... 33
LIST OF TABLES
Table 1: CGS SWOT Analysis ................................................................................................................... 6
Table 2: Stakeholder Analysis ................................................................................................................. 7
Table 3: Financial Perspective – Strategic Objectives, Initiatives and KPIs ........................................... 13
Table 4: Efficiency and Effectiveness Perspective – Strategic Initiatives and KPIs ............................... 14
Table 5: Perspective — Learning and Growth Perspective — Strategic Objectives, Initiatives and KPIs
.............................................................................................................................................................. 15
Table 6: Stakeholder/Market Perspective – Strategic Objectives, Initiatives and KPIs ........................ 16
Table 7: Stakeholder/Market Perspective – Strategic Objectives, Initiatives and KPIs ........................ 17
Table 8: Financial Perspective - Quarterly Targets FY 2019/2020 ........................................................ 18
Table 9: Systems Perspective - Quarterly Targets FY 2019/2020 ......................................................... 19
Table 10: Learning and Growth Perspective - Quarterly Targets FY 2019/2020 .................................. 20
Table 11: Stakeholder/Market Perspective - Quarterly Targets FY 2019/2020 ................................... 21
Table 12: Income Statement ................................................................................................................. 23
Table 13: Analysis of Government Grant Allocation ............................................................................. 24
Table 14: Programme Expenditure per Strategic Objective ................................................................. 25
Table 15: Materiality Framework.......................................................................................................... 26
Table 16: Geoscience technical programme and budgets for FY 2019/2020 ....................................... 32
Table 17: Strategic Risks ....................................................................................................................... 33
LIST OF FIGURES
Figure 1: Inflation. ................................................................................................................................... 2
Figure 2: PESTEL analysis. ....................................................................................................................... 3
Figure 3: CGS Organisational Structure. .............................................................................................. 10
Figure 4: CGS Strategy Articulation Map. ............................................................................................. 12
Figure 5: Matrix of the Integrated and Multidisciplinary Geoscience Mapping Programme. .............. 30
Figure 6: Integrated and Multidisciplinary Geoscience Mapping Programme including detailed
coastal and marine geoscience programme study areas for FY 2018/2019 – FY 2020/2021. ............. 31
ACRONYMS
GTP Geoscience Technical Programme
BSC Balanced Scorecard
CGS Council for Geoscience
DEA Department of Environmental Affairs
DMR Department of Mineral Resources
DST Department of Science and Technology
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DWS Department of Water and Sanitation
ICT Information and Communications Technology
ISO International Organisation for Standardisation
KPI Key Performance Indicator
MTEF Medium Term Expenditure Framework
MTSF Medium Term Strategic Framework
NDP National Development Plan
OAGS Organisation of African Geological Surveys
OECD Organisation for Economic Cooperation and Development
PFMA Public Finance Management Act
POPI Protection of Personal Information Act
SDG Sustainable Development Goal
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EXECUTIVE SUMMARY
The Council for Geoscience’s (CGS) Annual Performance Plan (APP) provides a roadmap for the implementation of the Geoscience Technical Programme (GTP) for the MTEF period. The GTP has adopted an integrated and multidisciplinary approach to optimise delivery of the geoscience mandate. The APP outlines the strategic objectives, which state the intended outcomes and achievement of CGS for the MTEF period; the associated risks and mitigation plans; financial and human resources allocations and the materiality framework which indicates material threshold values for transactions and processes to be initiated if thresholds are exceeded. The APP further includes performance indicators and targets.
PART A: STRATEGIC OVERVIEW
UPDATED SITUATIONAL ANALYSIS
1.1 External Environmental Analysis
1.1.1 Macro Socio-Economic Trends
The South African economic growth has recently signalled positive prospects and accordingly projected to pick
up moderately in 2018–191. This projection is based on the assumption that business confidence is increasing.
The levels of poverty, unemployment and inequality remain unacceptably high, threatening to reverse the gains
of a democratic dispensation over the past 24 years. However, the longstanding fiscal discipline, including an
inflation targeting policy are yielding results, with the largely contained within the policy range of 3 to 6% since
2011, notwithstanding a few anomalous incidents (see Figure 1: Inflation)2. A low inflation environment leaves
room for a moderately expansionary monetary policy to support economic activity.
The OECD Economic Survey of South Africa3 highlights certain risks to growth, the bulk of which are being
addressed by the Government. The central bank reduced the repurchase rate from 6.75% to 6.5% in March 2018.
Increasing the efficiency of public investment in infrastructure is much needed to boost productivity. An
unexpected slippage of the budget deficit is contributing to growth in the short term, but is also creating more
pressure to contain rising public debt.
1 Developments in individual OECD and selected Non-Member Economies 2 Statistics South Africa and OECD Economic Outlook 102 database 3http://www.oecd.org/eco/surveys/economic-survey-south-africa.htm
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Figure 1: Inflation.
Prudent and effective spending of funds and better control of the deficits of state-owned enterprises are
necessary to raise fiscal credibility and create room for public investment to foster growth and reduce social
inequality. Reforms to ease the cost of doing business boost entrepreneurship, lifting competition barriers in
many sectors and facilitating the expansion of firms in the African region, will boost productivity and help create
jobs.
1.1.2 Mining Industry Overview
The mining industry remains an important player in the South African economy. The industry directly contributes
R8 for every R100 produced by the national economy and employs one in every 40 working individuals (or 2,5%
of the entire workforce)4. Mining is the largest industry in four of South Africa’s nine provinces: North West,
Limpopo, Mpumalanga and Northern Cape. In particular, mining contributed R33 for every R100 produced by
North West’s economy in 2015, and the industry employed one in every six working individuals (or 16% of the
provincial workforce). Importantly, the inter-dependence of other economic sectors on the mining industry may
be neither overstated nor readily quantifiable to illustrate its significance to the economy.
The protracted effects of a global economic and financial crisis have collectively contributed to the decline in
production of various commodities, scaling down of employment as well as a significant drop in green-field
exploration.
The early signs of commodity price recovery have been consistent over the past two years, suggestive of base-
consolidation for a longer term growth of the sector. This necessitates that the country prepares itself to
leverage optimal value from mineral exploitation in the current boom.
Although the entire country has been covered in terms of maps at the scales 1:1 million and 1:250 000, the
detailed geological published map coverage of South Africa at 1:50 000 scale remains un-competitively low at
less than 5%. Consequently, the country has fallen out of the global top-ten exploration expenditure against
peer jurisdiction whose comparative detailed geological mapping is correlatively highest. The South African
Government has re-affirmed its commitment to investment in the implementation of the multi-disciplinary and
integrated geological mapping programme by the CGS, which seeks to significantly enhance the knowledge and
understanding of the geosciences in the country.
4 Statistics South Africa
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The external environment consists of variables/forces that are outside the traditional boundaries of the CGS and therefore are not typically within the short-term control of the organisation. These variables shape the context within which the organisation exists and present it with threats and opportunities that have the potential to either retard or stimulate strategic success. The variables include diverse factors such as rapid technological change, Government action, the socio-economic climate and energy. The following factors were assessed by means of the PESTEL analysis:
Figure 2: PESTEL analysis.
Political: The CGS reports to and supports the DMR in executing its mandate and priorities. The CGS takes
direction from the strategic goals of the DMR in developing its own strategies. As a science institution, the CGS
reports on scientific research and innovation to the Department of Science and Technology (DST). Other
Government policies and priorities such as transformation are central to the normalisation of the longstanding
irregularities of society, in keeping with the democratic values of the country. To this end, the CGS subscribes to
the transformation agenda in respect of broad-based black economic empowerment, employment equity and
economic growth.
Economic: The slow rate of recovery from the global economic downturn has meant that the Government’s
fiscal strength is accordingly limited. The CGS appreciates this possible constraint, but mitigates it in presenting
a strategy that seeks to provide requisite quality data with profound impact on long-term national
developmental and investment decisions.
The ability of the CGS to generate external revenue to supplement the Government grant, as it had prior to the
economic downturn, has been vastly reduced. The contribution of external revenue has been reduced
significantly in relation to the total revenue of the CGS. The expansionary policy in terms of increased
expenditure on infrastructure development has afforded the CGS the opportunity to focus on South Africa.
Further, the slow recovery has the potential to limit Government’s ability to fund the delivery of the CGS
mandate due to other pressing and competing socio-economic priorities.
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Commodity price and demand fluctuations
The demand of platinum metal has been predicted to go down in the years to come, due to the emerging
technology of electric vehicles that use battery metals. This might also impact negatively on platinum prices.
Platinum is mainly used in the automotive industry as catalytic converters, which help to reduce harmful
poisonous emissions from vehicles. On the other hand, platinum is also used in the jewellery industry. The
introduction of electric vehicles presents a new demand and an emergence of demand for other battery
minerals/metals such as graphite, lithium, tantalum, cobalt and vanadium. The geoscience investment ought to
indicate the prospects of availability of such minerals as a precursor to an imminent shift from the traditional
minerals in a medium to long term.
Social/Cultural: The CGS, as a science council, takes cognizance of its social and cultural environment and
ensures that it responds accordingly. The increased participation and advocacy of society on issues relating to,
amongst others, infrastructure development, mineral resources development, energy and the preservation of
the natural environment influence the objectives of the CGS and also have the potential to impact on both the
profile and the value of services provided by the CGS.
Energy Security
As global population continues to rise, the demand for cheap energy will also rise. Today, the global economies
rely mainly on fossil fuels which contribute to the greenhouse emissions which will have an impact on climate
change. Efforts to encourage clean energy have been discussed by the United Nations countries to set goals that
focus on affordable and clean energy. Energy security is vital in every society because it contributes positively to
social and economic development, health, food security and poverty alleviation. South Africa, through its NDP
Vision 2030 aims to have an energy mix (coal, nuclear, renewable energy, oil and gas) plan that promotes
economic growth and development, social equity through expanded access to energy services and
environmental sustainability through efforts to reduce greenhouse emissions and to mitigate the effects of
climate change. Accordingly, South Africa adopted a low-carbon economic growth trajectory that requires
urgent attention to sustainable and cost-effective sources of energy. Such energy sources potential as
geothermal energy are a subject of the programme of the CGS.
Food Security
The NDP Vision 2030, SDGs 2030 and Agenda 2063 identify food security as a key element of both poverty and
inequality and make reference to a number of requisite steps to improve food security by including sustainable
agriculture, expansion of the use of irrigation, security of land tenure, especially for women, and the promotion
of nutrition education. Food security, is however, threatened by various factors such as globalisation,
international trade regimes, climate change, and the poor storage and distribution of food.
The strategy of the CGS further focuses on geoscience programmes that will contribute towards land use,
groundwater and the environment.
Technological: Technological advancement enables the CGS to respond to the expectations and requirements
of its stakeholders in order to ensure service delivery. The innovative utilisation of emerging mapping
technologies for the gathering of data improves the effectiveness and efficiency of the CGS in delivering on its
mandate. The rapid development of technology provides the CGS with major opportunities in the areas of
research, innovation, skills development and service delivery.
Investment in scientific research and technological development is an imperative stimulant for innovation. This
will enable the organisation to be globally competitive and relevant.
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The world is now experiencing the Fourth Industrial Revolution which will drive more inclusive economic growth
through the integration of physical, digital and biological technologies. South Africa has the ability to accurately
collect, interpret and introduce artificial intelligence and machine learning for data capturing in real time.
Environmental: Natural environmental and man-made hazards create a need for geological information and
solutions to mitigate hazards, e.g. infrastructure development on dolomitic ground prone to sinkhole formation,
tsunamis, earthquakes, acid mine drainage, groundwater pollution and global warming. The natural
environmental challenges dictate the programmes and mitigating strategies that the CGS should address.
Changes in climatic conditions, i.e. when conducting fieldwork, will mostly affect the CGS operationally in terms
of the effective and timely delivery of projects and services.
Climate change
Climate change is referred to as a change in average weather conditions or in the time variation of weather
within the context of longer term average conditions and it is caused by various factors such as biotic processes,
variations in solar radiation received by Earth, plate tectonics and volcanic eruptions. Greenhouse gas emissions
from human activities are also believed to drive climate change. One of the sustainable development goals
adopted by a number of United Nations countries includes taking an urgent action to combat climate change
and its impacts. The members of the global nations have formed a coalition of the willing and are in agreement
to work towards limiting global temperature rise to well below 2 degrees Celsius.
The CGS will continue investigating possible storage options for carbon dioxide and identifying other sources of
energy which will mitigate the greenhouse emissions to the atmosphere.
Legislative: The CGS is an organisation mandated by legislation and any changes to the legislative framework
(i.e. Geoscience Act No. 100 of 1993, as amended , Minerals and Mining Policy for South Africa (1998), National
Development Plan (NDP) 2030, Government’s Medium Term Strategic Framework (MTSF), Outcome‐Oriented
Goals of the Department of Mineral Resources (DMR) and the Department of Science and Technology (DST) will
have a direct impact on the strategy and operations of the organisation.
In developing the five-year strategy for the CGS, these factors have been considered to enable the organisation
to take full advantage of opportunities to adjust and navigate within the legislative framework to contribute to
the creation of a prosperous society for all within South Africa.
Table 1 below summarises the major strengths and weaknesses of the CGS as well as the major threats and
opportunities facing the organisation.
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Table 1: CGS SWOT Analysis
Strengths Weaknesses
Government grant funding.
A sound historical heritage and information accumulated over a 100-year period on which to shape the future. - Research competence and strong
knowledge base. - Good understanding of the South African
natural resources environmental landscape. - Empowering legislative mandate.
Geological data and information as major strategic resources.
A limited capacity of highly qualified and skilled scientists.
Inadequate access and utilisation of vast historical geological information.
A very low coverage of high quality, integrated, multidisciplinary maps in South Africa.
Dependency on short term ring-fenced funding for MTEF (Medium Term Expenditure Framework) projects.
Paucity of career growth for internal geo-scientists.
Opportunities Threats
Supportive line function departments (DMR, DST).
Collaboration opportunities with various Government departments such as but not limited to the DWS and DEA, science councils, international entities in geoscientific research as well as universities.
Innovative utilisation of geoscientific information in various emerging fields such as medical geology and geometallurgy, which are new fields that integrate existing geoscientific information to deliver envisaged results.
Utilisation of existing structures across the continent to facilitate regional integration of the geosciences.
Transformation, growth and development of world-class scientists.
Competing for geoscientific skills.
Competing Government priorities for fiscal funding.
Loss of geoscience talent.
Lack of real growth in Government grant funding.
1.1.3 Stakeholder Analysis
An effective stakeholder engagement strategy is a key requirement for the CGS: (1) to fulfil its legislative
mandate and (2) to leverage optimal delivery through collaborative relationships that enhance and nurture the
development of the geosciences.
The CGS is accountable to, and has to align with a wide network of internal and external stakeholders. The
various functions within the organisation, both core and support, are interdependent and have to be aligned
internally and across stakeholder groupings in order for the CGS to operate effectively in the execution of its
mandate. Primary stakeholders include, but are not limited to the Parliament of the Republic of South Africa,
the DMR, the National Treasury, the DST and the South African public. The secondary stakeholders critical for
the CGS include, amongst others, international geological survey organisations, geoscience organisations,
institutions of higher learning and mining companies. The CGS is a state‐owned entity and, by extension, an
instrument of Government that has been established to execute aspects of national foreign policy through
bilateral agreements with other countries. Table 2 summarises the various stakeholder groupings of the CGS. In
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this regard, the Geoscience Diplomacy Programme of the CGS has been developed and implemented to
coordinate strategic partnerships with stakeholders outside South Africa.
Table 2: Stakeholder Analysis
Classification Stakeholder Expectations
Social and Strategic
Political Partners
Government and related
Departments (DMR, DST)
The Public
Political Agencies and Parties
Media
NGOs and Section 9 Institutions
Nature Conservation Institutes
Regional Integration Partners
e.g. the African Union and the
OAGS
Organised Labour
Contribute to economic growth, skills
development, the socio-economic
development of the country and
accelerated implementation of
Government programmes
Public and Private
Institutions
Spatial Planning and
Development Companies,
Science Councils, Minerals
Council South Africa (former
Chamber of Mines) and etc.
Accelerate geological mapping of the
whole country, disseminate geological
information and knowledge on the
wealth of the country, both onshore
and offshore
Financial Resources
Structures
Development Bank
Insurance Companies
Operating and managing an efficient
and sustainable business
Professional Institutions Universities
Research Institutions
Geological Society of South
Africa and similar Institutions
Partnering for the development and
execution of research and other
development programmes
Various opportunities exist to strengthen stakeholder relations and to establish opportunities for networking,
learning, alignment and integration. An initiative that the CGS could explore to strengthen stakeholder relations
is the consideration of bi-annual stakeholder interventions — national, continental or international. These
interventions would provide marketing platforms for the CGS to create visibility and awareness of the CGS, to
disseminate information, and to showcase the current and planned work of the CGS.
The Intergovernmental Relations Framework Act (Act No. 13 of 2005) prescribes principles for the national
government, provincial and local governments, and all organs of state to facilitate coordination in the
implementation of policy and legislation, including, but not limited to the effective provision of services,
monitoring the implementation of policies and legislation, and the realisation of national priorities. The Act
makes provision for the establishment of intergovernmental structures for coordinating actions across
government departments when implementing policies or legislation, for the execution of statutory functions
(taking into account the circumstances, material interests and budgets of other government departments) and
to consult, cooperate and share information to achieve the objectives of the Act.
An opportunity presents itself for the CGS to explore the potential for establishing an intergovernmental forum
comprising key stakeholders (e.g. DMR, DST, DEA, etc.). This forum would have the authority to establish rules
and principles for the endorsement of cross-government departmental projects and programmes, and the
approval of the transfer or allocation of resources (financial or otherwise) across departments in the execution
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of the integrated and multidisciplinary geoscience mapping programmes. The identified projects/programmes
would support the achievement of national objectives, considering the collective mandates and functions of
various Government departments. This would allow the CGS to access and/or share resources with other
Government departments for projects and programmes that have be funded and executed in National interest,
enabling the optimal use of grant funding and other resources across departments, without additional demands
on the fiscus.
1.1.4 Organisational Overview
Overview of the CGS
The CGS conducts integrated and multidisciplinary geoscience mapping and research of both the onshore and
offshore geology of South Africa, as mandated, to:
Catalyse optimal development of mineral, energy and groundwater resources;
Contribute to the assessment and sustainable management of mineral, hydrogeological and geo-
environmental resources (including agricultural development and environmental health);
Support infrastructure development and land use;
Leverage the frontier Blue Economy prospects.
The above is achieved through collaboration between the following skills areas:
Geophysics;
Remote Sensing;
Geological Mapping;
Geochemical Surveys;
Minerals and Energy;
Geohydrology;
Environment;
Seismology;
Marine Geology.
In addition, the CGS has a responsibility to act as a national advisory authority on geohazards and geo-
environmental pollution by leveraging knowledge and expertise gained through the mapping and research
activities discussed above.
Governance
Board
The CGS Board approves the strategies, goals, operating policies and priorities of the organisation and monitors
compliance with the policies and achievements with respect to scientific, administrative and financial objectives.
The Board Members bring independent counsel on strategic decisions. Moreover, Board Members are fully
conversant with their fiduciary duties, as outlined in section 50 of the PFMA (Act No. 1 of 1999).
Four Board Committees underpin the Board:
Finance;
Technical;
Personnel, Remuneration and Transformation;
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Audit and Risk.
Management
Managers are responsible for the following functions in the organisation:
Development of the strategic direction of the CGS;
Development and implementation of annual performance plans;
Management of legal, regulatory, ethical and other compliances;
Management of CGS operations and service delivery;
Management of corporate administration;
Management of corporate performance;
Management of finances;
Management of personnel;
Management of transformation;
Promotion of the CGS.
Organisational Structure
Figure 3 depicts the organisational structure of the CGS that was developed to support the efficient,
effective and robust functioning of the organisation.
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Figure 3: CGS Organisational Structure.
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PART B: STRATEGIC OBJECTIVES
STRATEGIC CONTEXT
The strategy map illustrated in the diagram below articulates the strategy of the CGS, aligned with the BSC
methodology. The existence of the CGS is premised on its vision of contributing to a prosperous and transformed
society enabled by geoscience solutions.
For the execution of its mandate and to sustain its operations, the CGS is funded by Government grants. The
financial resource base is supplemented by commercial projects that generate revenue, enhanced by funding
from the exploitation of intellectual property through collaborative partnerships. In addition, a sound financial
management framework with supporting management services, processes and procedures are required to
achieve the goal of financial growth through integrated geoscience service delivery, partnerships and innovation
in making a sustainable contribution to the NDP imperatives.
The CGS is required to invest in the recruitment, development and retention of human resources and specialist
skills to create the capacity for the execution of its mandate. The Learning and Growth focus is moulded around
the empowerment of the CGS workforce and to develop a pool of appropriately skilled, engaged, motivated and
capacitated human resources to better support and enable the implementation of the Geoscience Technical
Programme (GTP) and the execution of the CGS mandate. This would enhance the CGS status and the realisation
of its goal of becoming an employer of choice, attracting, recruiting and retaining highly skilled personnel in the
Geoscience industry, enabled by improved human capital and institutional knowledge management strategies.
From an effective and efficient systems perspective, the goal of the CGS is to transform into a geoscience
institute that is capable, effective and efficient, compliant and responsive, through an integrated service delivery
model. This will be enabled by the investment in and rollout of ICT (Information and Communications
Technology) solutions, supporting digital infrastructure, compliant policies, procedures and business processes
that will ensure good corporate governance practices and a sound control environment.
The strategy of the CGS largely revolves around meeting stakeholder requirements — as they relate to its core
mandate — by delivering special geoscience information to develop mineral and upstream petroleum resources,
support infrastructure development programmes, enable agricultural development groundwater exploration
and managing stakeholder relations with strategically aligned institutions and partners, in compliance with
global standards in the implementation of geoscience policies and governance. The implementation of the
multidisciplinary mapping programme is the core driver for ensuring the delivery of the CGS mandate. In the
effective execution of its mandate, the CGS will contribute to the national objectives of enhancing living
conditions and a safe environment and create an enabling environment in support of national imperatives – this
will ultimately translate to the CGS achieving its vision, validating its existence and cementing its footprint in the
geoscience space.
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Figure 4: CGS Strategy Articulation Map.
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CGS financial growth through integrated geoscience services delivery,
partnerships and innovation in providing sustainable contribution to
the NDP imperatives
To ensure effective and efficient delivery of
financial management
services
To secure increased grant funding to sustain
the CGS operations in support of the mandate
and national
imperatives
To secure funding from the exploitation of intellectual
property, collaborative
activities and partnerships
To attract and retain highly skilled personnel
in the Geoscience
industry
To acquire, develop and implement innovative ICT solutions & state of the art
infrastructure to support the
expanded mapping programme
An enabling environment in support
of national imperatives
To ensure delivery of the mandate through the
expanded multi-disciplinary mapping programme
An employer of choice, attracting, recruiting and retaining highly skilled personnel in the
Geoscience industry through improved human capital and institutional knowledge
management strategies
A geoscience institution that is capable, effective, efficient, compliant and responsive, through an integrated
service-delivery model
Develop capacity through training, mentorship, skills
transfer and succession
planning
To build capacity in respect of
geoscientific, administrative and managerial/leadership
skills while also developing innovative products, systems
and services
To ensure the workforce is empowered, transformed,
motivated, and capacitated to support the expandedmappng programme
To create and sustain an organisational culture and
environment that attracts and promotes excellence
To promote and invest in human resource transformation and
diversity
To ensure good corporate governance and sound control
environment
To develop and implement effective & compliant policies,procedures and business processes in support of the
CGS integrated service delivery model
To ensure compliance with globall standards,
international geoscience policy and governance
To deliver spatial geoscience information and services that
attract local and international
investment to develop mineral and upstream petroleum resources
To provide Geoscience information and services input
to infrastructure development in support of South Africa’s
economic development of mineral, upstream petroleum (such as oil and gas) and water
resources
To provide geoscientific information that enables
agricultural development and groundwater exploration
To improve stakeholder relations through
collaborations with strategically aligned
institutions, private sector and the general public
Enhanced living conditions and a safe
environment
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STRATEGIC OBJECTIVES AND ANNUAL PERFORMANCE TARGETS FOR MTEF CYCLE (FY 2019/2020 – FY 2021/2022)
1.2 Objective (Programme) 1: Financial sustainability (Financial Perspective)
Goal CGS financial growth through integrated geoscience services delivery, partnerships and innovation
Table 3: Financial Perspective – Strategic Objectives, Initiatives and KPIs
Strategic Objective Strategic Initiatives Measures (KPI) Estimated
performance
Medium-term Targets
FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022
1 Financial
sustainability
To ensure effective and efficient
delivery of financial management
services
Percentage of overhead costs to
total costs (non-cumulative)
N/A ≤55% ≤55% ≤55%
Percentage of personnel costs to
total costs (non-cumulative)
N/A ≤60% ≤60% ≤60%
To secure funding from the
exploitation of collaborative activities
and partnerships
Revenue from collaborative
activities/partnerships (non-
cumulative)
R24.2m R26.6m R29.3m R32.2m
To secure increased grant funding to
sustain the CGS operations in support
of the mandate and national
imperatives
Grant revenue (non-cumulative) R386.3m R414.1m R435.7m R251.4m
N/A Measures were not included for the FY 2018/2019 APP. The CGS reintroduced the measure in FY 2019/20.
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1.3 Objective (Programme) 2: Organisational Effectiveness and Efficiency (Organisational Effectiveness and Efficiency Perspective)
Goal A geoscience institution that is capable, effective, efficient, compliant and responsive, through an integrated service-delivery model
Table 4: Efficiency and Effectiveness Perspective – Strategic Initiatives and KPIs
Strategic Objective Strategic Initiatives Measures (KPI) Estimated
performance
Medium-term Targets
FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022
2 Organisational effectiveness and efficiency
To develop and implement effective and compliant policies, procedures and business processes in support of the CGS integrated service delivery model
Percentage of total Procurement spend on goods and services from Small Micro and Medium Enterprises (non-cumulative)
30% ≥30% ≥30% ≥30%
Adhere to best practice to achieve sustainable governance
Number of audit qualifications (non-cumulative)
0 0 0 0
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1.4 Objective (Programme 3): An Empowered, Transformed, Motivated and Capacitated Workforce (Learning and Growth Perspective)
Goal An employer of choice, attracting, recruiting and retaining highly skilled personnel in the Geoscience industry through improved human
capital and institutional knowledge management strategies
Table 5: Perspective — Learning and Growth Perspective — Strategic Objectives, Initiatives and KPIs
Strategic Objective Strategic Initiatives Measures (KPI) Estimated
performance
Medium-term Targets
FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022
3 An empowered,
transformed, motivated
and capacitated
workforce
To attract and retain highly
skilled scientific personnel in
the Geoscience industry
Percentage of scientific staff with
Masters or Doctoral degrees (non-
cumulative)
N/A* ≥35% ≥35% ≥35%
Staff turnover rate (non-cumulative) ≤5% ≤5% ≤5% ≤5%
To build capacity in respect of
geoscientific, administrative
and managerial/leadership
skills while also developing
innovative products, systems
and services
Percentage of training expenditure
to leviable amount of payroll (non-
cumulative)
≥2% ≥2% ≥2% ≥2%
To create and sustain an
organisational culture and
environment that attracts and
promotes excellence
Percentage of satisfied staff (non-
cumulative)
≥75% ≥75% ≥75% ≥75%
To promote and invest in
human resources
transformation and diversity
Percentage of staff living with
disability (non-cumulative)
≥1.25% ≥1.5% ≥1.5% ≥1.5%
EE statistics, Male–Female ratio
(non-cumulative)
53:47 ≤50:≥50 ≤50:≥50 ≤50:≥50
N/A- Not Applicable, *Measures were not included for the FY 2018/2019 APP. The CGS reintroduced the measure in FY 2019/20.
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1.5 Objective (Programme) 4. Delivery of the mandate (Stakeholder/Market Perspective)
Goal An enabling environment in support of national imperatives and enhancing living conditions and creating a safe environment
Table 6: Stakeholder/Market Perspective – Strategic Objectives, Initiatives and KPIs
Strategic Objective Strategic Initiatives Measures (KPI) Estimated
performance
Medium-term Targets
FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022
4 Delivery of the
mandate
Execute the integrated and
multidisciplinary geoscience
mapping programme
Geoscience for mineral and energy
resources: Number of geoscience
products (non-cumulative)
36 50 60 30
Geoscience for infrastructure and land
use: Number of geoscience products
(non-cumulative)
3 5 5 2
Geoscience for health, groundwater and
the environment: Number of geoscience
products (non-cumulative)
N/A 6 8 4
Geoscience innovation: Number of
geoscience products (non-cumulative)
3 3 3 1
Geoscience diplomacy: Number of
geoscience products (non-cumulative)
3 3 3 2
N/A – Not Applicable
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1.6 Objective (Programme) 5. Advisory, Stakeholder Engagement and Knowledge (Stakeholder/Market Perspective)
Goal An enabling environment in support of national imperatives and enhancing living conditions and creating a safe environment
Table 7: Stakeholder/Market Perspective – Strategic Objectives, Initiatives and KPIs
Strategic Objective Strategic Initiatives Measures (KPI) Estimated
performance
Medium-term Targets
FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022
5 Advisory, stakeholder
engagement and
knowledge
To improve stakeholder
relations through
collaborations with
strategically aligned
institutions, the private
sector and the general public
Number of articles published
on media platforms (non-
cumulative)
10 16 16 16
Stakeholder satisfaction level
(non-cumulative)
≥70% ≥70% ≥70% ≥70%
Number of peer-reviewed
articles published (non-
cumulative)
20 22 24 16
Number of CGS publications
(non-cumulative)
105
10 11 9
Number of conference
proceedings published (non-
cumulative)
41 80 25
Stakeholder satisfaction level expressed as a percentage: target for 2018/2019 was incongruently set against a strategic re-orientation programme of the CGS. Accordingly, the target was normalised in-line
with the CGS strategic objectives.
Publications produced: Peer reviewed articles – This key performance indicator target for 2018/2019 is 20, which is lower than the actual achievements for the FY2017/2018. This reduction from 47 peer-
reviewed articles (FY 2017/2018) was planned based on the strategic re-orientation and consolidation. It is anticipated that the publication of peer-reviewed articles will increase in the next five years when
the geoscience technical programme is fully executed.
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QUARTERLY PERFORMANCE TARGTES FOR FY 2019/2020
1.7 Programme 1: Financial Perspective
Table 8: Financial Perspective - Quarterly Targets FY 2019/2020
Strategic Objective Measures (KPI) Reporting Period Annual Target Quarterly Targets
FY 2019/2020 1st 2nd 3rd 4th
1 Financial
sustainability
Percentage of overhead costs
to total costs (non-
cumulative)
Quarterly ≤55% ≤55% ≤55% ≤55% ≤55%
Percentage of personnel
costs to total costs (non-
cumulative)
Quarterly ≤60% ≤60% ≤60% ≤60% ≤60%
Revenue from collaborative
activities/partnerships
(cumulative)
Quarterly R26.6m R5m R10m R15m R26.6m
Grant revenue (cumulative) Quarterly R414.1m R184.8m R316.5m R365.3m R414.1m
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1.8 Programme 2: Systems Perspective
Table 9: Systems Perspective - Quarterly Targets FY 2019/2020
Strategic Objective Measures (KPI) Reporting Period Annual Target Quarterly Targets
FY 2019/2020 1st 2nd 3rd 4th
2 Organisational effectiveness and efficiency
Percentage of total Procurement spend on goods and services from Small Micro and Medium Enterprises (non-cumulative)
Quarterly ≥30% ≥30% ≥30% ≥30% ≥30%
Number of audit qualifications
Annually 0 - - - 0
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1.9 Programme 3: Learning and Growth Perspective
Table 10: Learning and Growth Perspective - Quarterly Targets FY 2019/2020
Strategic Objective Measures (KPI) Reporting Period Annual Target Quarterly Targets
FY 2019/2020 1st 2nd 3rd 4th
3 An empowered,
transformed,
motivated and
capacitated
workforce
Percentage of scientific staff with
Masters or Doctoral degrees (non-
cumulative)
Annually ≥35% - - - ≥35%
Staff turnover rate (non-
cumulative)
Quarterly ≤5% ≤5% ≤5% ≤5% ≤5%
Percentage of training expenditure
to leviable amount of payroll (non-
cumulative)
Annually ≥2% - - - ≥2%
Percentage of satisfied staff (non-
cumulative)
Annually ≥75% - - - ≥75%
Percentage of staff living with
disability (non-cumulative)
Annually ≥1.5% - - - ≥1.5%
EE statistics, Male–Female ratio
(non-cumulative)
Annually ≤50:≥50 - - - ≤50:≥50
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1.10 Programme 4: Stakeholder/Market Perspective
Table 11: Stakeholder/Market Perspective - Quarterly Targets FY 2019/2020
Strategic Objective Measures (KPI) Reporting Period Annual Target Quarterly Targets
FY 2019/2020 1st 2nd 3rd 4th
4 Delivery of the
mandate
Geoscience for mineral and
energy resources: Number of
geoscience products
(cumulative)
Quarterly 50 5 20 40 50
Geoscience for infrastructure
and land use: Number of
geoscience
products(cumulative)
Quarterly 5 1 2 4 5
Geoscience for health,
groundwater and the
environment: Number of
geoscience products
(cumulative)
Quarterly 6 1 3 4 6
Geoscience innovation: Number
of geoscience products
(cumulative)
Quarterly 3 0 1 2 3
Geoscience diplomacy: Number
of geoscience products
(cumulative)
Quarterly 3 0 1 2 3
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Strategic Objective Measures (KPI) Reporting Period Annual Target Quarterly Targets
FY 2019/2020 1st 2nd 3rd 4th
5 Advisory, stakeholder
engagement and
knowledge
Number of articles published on
media platforms (cumulative)
Quarterly 16 4 8 12 16
Stakeholder satisfaction level
(non-cumulative)
Annually ≥70% - - - ≥70%
Number of peer-reviewed
articles published (cumulative)
Quarterly 22 2 7 12 22
Number of CGS publications
(cumulative)
Quarterly 10 2 5 7 10
Number of conference
proceedings
published(cumulative)
Quarterly 41 0 10 30 41
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OVERVIEW OF THE MTEF BUDGET AND MTEF ESTIMATES
The financial resource requirements over the five-year period are summarised below. These projections consider
the scope of work of the CGS, accounting for improved supply chain management in support of project
execution, as well as the optimisation of underutilised movable and immovable assets.
1.11 Resource Requirements
1.11.1 Income Statement
Table 12: Income Statement
INCOME (RAND) FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022
x 1 000 x 1 000 x 1 000 x 1 000
Government grant 405,983 414,062 435,734 251,402
Deferred income 114,808
Sales and contracts 24,200 26,620 29,282 32,210
Sundry income 3,694 3,878 4,072 4,276
TOTAL INCOME (RAND) 548,685 444,560 469,088 287,888
EXPENDITURE (RAND) FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022
x 1 000 x 1 000 x 1 000 x 1 000
Personnel costs 244,919 309,028
330,721
227,487
Bursaries 3,367 3,704 4,074 4,481
Commercial project costs 10,890 11,979 13,177 14,495
Overheads and operating costs 124,657 104,349
105,616
25,925
SUBTOTAL 383,833 429,060
453,588
272,388
Surplus before capital expenditure 164,852 15,500 15,500 15,500
Application of surpluses:
Capital expenditure
Vehicles and aircrafts 3,500 3,500 3,500 3,500
Equipment 12,000 12,000 12,000 12,000
Deferred: Building and Laboratory Infrastructure 59,352 - - -
Digital information system, buildings, equipment and facilities
90,000 - - -
SUBTOTAL 164,852 15,500 15,500 15,500
TOTAL EXPENDITURE (RAND) 548,685 444,560
469,088
287,888
Surplus (Loss) - - - -
The CGS has two sources of funding, namely the Government grant and collaborative/contract
revenue. These revenues determine the scope of the Annual Technical Programme of the CGS.
Due to the lack of certainty in the contract revenue stream, the CGS implements its programmes for
each year with caution in order to avoid over-expenditure or losses. The increase in the Government
grant in FY 2019/2020 and FY 2020/2021 is due to additional allocations of R188,0m and R198,3m
respectively for analytical and research work for the Geoscience Laboratory.
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Revenue from Government Grant
The Government grant consists of the baseline grant, additional funding for MTEF projects. There has
been no real growth in the baseline grant over the MTEF period. The marginal increase in the grant is
meant to address inflation. The average growth rate is 6% year on year. The Government grant for the
FY 2018/2019 financial year includes deferred income of R114,8m million from the MTEF projects. The
baseline grant is R199,4m, R198,5m, R208,5m and R220,8m for the financial years 2018/2019,
2019/2020, 2020/2021 and 2021/2022 respectively.
1.11.2 Revenue Analysis
Table 13: Analysis of Government Grant Allocation
Revenue from Collaborative/Partnership Activities
Revenue from collaborative activities is budgeted at R24,2m for FY 2018/2019 and is expected to increase by
10% year on year over the MTEF period. This is based on current collaborative contracted work. The absence of
further revenue income in this category of work is due to the organisational refocus on the core mandate of the
CGS.
Personnel Costs
The personnel costs budget includes salaries for existing and additional critical positions, fringe benefits, such as
death and disability insurance, post-retirement medical aid insurance as well as recruitment-related costs.
Annual salary increases are negotiated at the bargaining forum and are approved by the CGS Board. Personnel
cost is budgeted at R244,9m for FY 2018/2019 and an 8% increase year on year over the MTEF period to cater
for additional staff required to unlock the MTEF projects. Due to the additional allocations for FY 2019/2020 and
FY 2020/2021, the personnel costs have been budgeted at R309,0m and R330,7m respectively. From the FY
2021/22 the personnel budget decreases significantly to R227,5m due to the end of the ECSP allocations for analytical and research work for the Geoscience Laboratory. A recent benchmarking exercise was conducted
and depicted a picture that CGS salary scales are low compared with those of industry. Both financial and non-
Item FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022
x 1 000 x 1 000 x 1 000 x 1 000
Government grant 520,8m 414,1m 435,8m 251,4m
Baseline allocation 199,4m 198,5m 208,5m 220,8m
MTEF projects (ring fenced) 116,6m 27,6m 29,0m 30,6m
Deferred income 114,8m
Economic Competitiveness and Support Package
90m 0 0 0
Analytical and research work for the Geoscience Laboratory
0 188m 198,3m 0
Commercial revenue 24,2m 26,6m 29,2m 32,2m
Sundry income 3,7m 3,9m 4,1m 4,3m
TOTAL REVENUE (RAND) 548,7m 444,6m 469,1m 287,9m
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financial means necessary to retain staff should be identified, formalised, implemented and monitored for
impact.
Bursaries
The bursary budget is essential for developing capacity and to expedite the training of individuals. The
commercial environment in which the CGS competes for international and national tenders is extremely
competitive and the only way for the CGS to be able to compete is by upgrading the skills of its staff members.
The bursary scheme has an added advantage as it also serves as a feeder pipeline for the transformation of the
staff complement. In this regard, an amount of R3,4m has been budgeted for FY 2018/2019, with a 10% increase
year on year over the MTEF period.
Cost of Collaborative/Partnership Projects
The CGS invests in the commercial environment to generate the budgeted revenues over the MTEF period. These
investments are in the form of direct materials and services required to deliver the agreed commercial outputs.
Commercial project expenditure is budgeted at R10,9m for FY 2018/2019, which is 45% of the projected revenue
for each year over the MTEF period.
Overheads and Operating Costs
This budget is for the scientific programme, i.e. Annual Technical Programme expenditure; the operating costs
of the mandatory functions such as the geoscience library, core library, laboratory, maintenance of buildings
and infrastructure and administration requirements for Finance, Supply Chain, Corporate Services and
Integrated Communication Technology (ITC). The budget increases in proportion to the total Government grant.
Overhead and operating costs are budgeted at R124,7m for FY 2018/2019 which includes deferred income of
R55,5m. A significant decrease in the budget in FY 2021/2022 is due the additional allocations for the analytical
and research work for the Geoscience Laboratory which are currently allocated for FY 2019/2020 and FY
2020/2021 which comes to an end in FY 2021/2022.
Scientific and Technical Equipment
The rapidly aging research infrastructure of the CGS is of great concern to the organisation. Over the past few
years, attention has been given to the replacement of some equipment. However, this is not sufficient to sustain
services and skills development in the CGS.
An amount of R15,5m has been budgeted for the replacement of vehicles, equipment and aircraft repairs for FY
2018/2019. Funding has been allocated to the digital information system, buildings, equipment and facilities
from National Treasury to the amount of R90,0m in FY 2018/2019. A capital renewal plan is developed annually
to address the infrastructure requirements.
1.12 Expenditure Estimates
Table 14: Programme Expenditure per Strategic Objective
CGS Objectives FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022
Objective (Programme) 1: Delivery of Mandate 363,237,826 294,305,490 310,543,400 190,586,240
Objective (Programme) 2: Advisory, Stakeholder Engagement and Knowledge Management
14,693,315 11,904,937 12,561,776 7,709,395
Objective (Programme) 3: An empowered, transformed, motivated and capacitated workforce
13,684,114 11,087,253 11,698,978 7,179,879
Objective (Programme) 4: Organisational effectiveness and efficiency 95,956,662 77,746,783 82,036,357 50,347,233
Objective (Programme) 5: Financial Sustainability 61,113,083 49,515,537 52,247,490 32,065,253
Total Budget 548,685,000 444,560,000 469,088,000 287,888,000
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1.13 Materiality Framework
Table 15: Materiality Framework
Nature of Business Circumstances giving rise to
Need for Disclosure in Terms of
Materiality and Significance
Material Threshold Value
for Disclosure and Reporting
Purposes
Process to be initiated if
Threshold is reached
Geophysics and
Research
Generally,
research-related
entities may set a
materiality figure
higher than for
non-research-
related entities, as
research related
losses can be
expected to be
higher and more
difficult to
anticipate and
manage
within the normal
accounting
practices,
Geoscience Act and
operating
procedures.
Disclosure in this
area is unlikely to
materialise
Equipment and Technology
Laboratories and Geophysics are
the two main areas giving rise to
the need for disclosure in terms
of materiality and significance
Laboratories
Geophysics
Consideration in terms of
expenditure was given as
follows: (as included within the
budgeting process)
Irregular
Expenditure consisting
of spending outside of
approved budget
Fruitless and
Wasteful Expenditure.
Equipment not suited
or necessary for
purpose
Calculating the property and
equipment threshold value at
2% of the value as indicated in
the annual financial statements
(R259,700,000)
R5,2m
R5,2m
The usual accounting practices
and the Geoscience Act will
generally cover replacement or
loss of equipment in the normal
operational process and should
not require disclosure
Management to submit a
report with all relevant
details and values concerned
to Executive for comment
and disclosure to Treasury
where required
Process:
Information to
be provided
regarding event;
Investigate
where required:
Internal Audit and
Finance;
Determine
whether loss is due
to contravention of
the Act or disregard
of Geoscience Act;
Determine
whether due to lack
of due care and
diligence, gross
negligence or
criminal activity;
and
Responsibility
The Executive must direct a
request for ruling or approval
from Treasury or the relevant
Executive Authority
The business needs
to ensure that all
financial
transactions fall
within the
approved budget
and are conducted
within the normal
accounting
Financial
Operations and Capex are
considered as the main areas
giving rise to the need for
disclosure in terms of
materiality and significance:
Management to submit a
report with all relevant
details and values concerned
to Executive for comment
and disclosure to Treasury
where required
Process:
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practices and
Geoscience Act
Operating Expenditure
(Existing Budgeted Projects)
Any irregular spending outside
of approved budget
New Projects
Unforeseen additional
expenditure due to poor project
planning or early termination or
cancellation of projects
Capex: -
Total Assets
R1,2m
Operating threshold value
calculated at 1% of budget value
(R124,657,000)
Expressed as 2% of the Project
Value
This threshold will vary
according to the project value.
E.g. R40m
equates to R800,000,
R10m equates to
R200,000
R11,3m
Total asset threshold value
calculated at 2% of the value as
indicated in the annual financial
statements
(R565,655,000)
Information to
be provided regarding
event;
Investigate
where required: Internal
Audit and Finance;
Determine
whether loss is due to
contravention of the Act
or disregard of
Geoscience Act;
Determine
whether due to lack of
due care and diligence,
gross negligence or
criminal activity; and
Responsibility
The Executive must direct a
request for ruling or approval
from Treasury or the relevant
Executive Authority
In terms of the
PFMA Section 54,
information will be
submitted by the
accounting
authorities in
respect of any
significant change
in the nature or
extent of its
interest in a
significant business
activity; and
A significant change
in the nature or
extent of its
interest in a
significant
partnership, trust,
unincorporated
joint venture or
similar
arrangement
Where the business has joint
ventures or similar
arrangements, these are strictly
governed by the Geoscience Act
in addition to the PFMA
Concluding any transaction in
terms of Section 54 without
approval from the Executive
Authority
Should such an event materialise
it would need to be investigated
and only then would the
potential loss be determined
No threshold can be anticipated
Any transgression is to be
investigated and reported once
all relevant details have been
compiled
Management to submit a
report with all relevant
details and values concerned
to Executive for comment
and disclosure to Treasury
where required
Process:
Information to
be provided regarding
event;
Investigate
where required: Internal
Audit and Finance;
Determine
whether loss is due to
contravention of the Act
or disregard of
Geoscience Act;
Determine
whether due to lack of
due care and diligence,
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gross negligence or
criminal activity; and
Responsibility
The Executive must direct a
request for ruling or approval
from Treasury or the relevant
Executive Authority
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PART C: EXECUTION PLAN
INTEGRATED AND MULTIDISCIPLINARY GEOSCIENCE MAPPING PROGRAMME
Challenges related to the geoscience and mining sector (Section 1.1) culminated in the introduction and
implementation of the Integrated and Multidisciplinary Geoscience Mapping Programme (i.e. GTP). Through this
programme, the CGS seeks to provide detailed (high resolution) integrated mapping and various other surveys
to generate high-intensity geoscience data. The CGS aims to deliver detailed high-quality geoscience data on a
digital platform for South Africa and its marine and coastal territories to attain its developmental imperatives,
which include:
● Mineral and upstream petroleum exploration and mining for economic investment
● Improved energy security, including facilitation of clean energy sources
● Environmental health promotion
● Groundwater assessment and exploration for drought-stricken areas
● Geohazard mapping for cost-effective and efficient infrastructure
● Development and ground motion assessment
● Carbon capture and sequestration for global warming reduction
● Geoscience for land use, inclusive of facilitation of prospects for agriculture for food security (identification
of arable land)
● Understanding mechanisms of climate change in the palaeo-record
● Planning of coastal and offshore infrastructure
● Capacity building.
Other objectives of the Integrated and Multidisciplinary Geoscience Mapping Programme include the provision
of 1:50 000-scale multi-disciplinary mapping, thematic and systematic mapping including onshore and offshore
mapping, address current National Imperatives in South Africa and align with SONA resolutions as they relate to
Infrastructure, Youth Development, SOEs, Agriculture, Mining, Procurement, etc.
The three to five year matrix illustrated in the diagram below is derived from the GTP (Geoscience Technical
Programme) model and has been created to address five core technical programmes.
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Figure 5: Matrix of the Integrated and Multidisciplinary Geoscience Mapping Programme.
The five programmes identified respond to the national development imperatives for geosciences, and are as
follows:
● Economic growth (geosciences for mineral and energy resources, infrastructure and land use)
● Environmental health (geosciences for infrastructure and land use, health, groundwater and the
environment)
● Innovation (geosciences collaboration with other institutions)
● International relations (geoscience diplomacy).
A number of three to five year programme areas have been targeted and execution of the programmes in
these areas commenced in 2018. The following are some of the priority programme areas targeted:
● Griqualand West in the Northern Cape Province
● Various locations around South Africa that have been chosen as priority areas that may support the
development of minerals and energy, and which have been identified through soil geochemical
surveys and core drilling programmes (e.g. Springbok Flats Coalfield).
● Marine geoscience in the western and eastern coast of South Africa
INTEGRATED AND MULTIDISCIPLINARY GEOSCIENCE MAPPING PROGRAMME
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Figure 6: Integrated and Multidisciplinary Geoscience Mapping Programme including detailed coastal and marine geoscience programme study areas for FY 2018/2019 – FY 2020/2021.
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1.14 GEOSCIENCE TECHNICAL PROGRAMME AND BUDGETS FOR THE FY 2019/2020
Table 16: Geoscience technical programme and budgets for FY 2019/2020
THEME TOTAL COST
Geoscience for Minerals and Energy R49 307 716.25
Geoscience for Infrastructure and land use R25 262 634.00
Geoscience for Health, Water and Environment R22 200 000.00
Geoscience Innovation R6 938 722.00
TOTAL R103 709 072.25
The GTP is also composed of the Mine Water Management project (MTEF), several commercial projects in Namibia, Malawi and South Africa. The commercial projects in South Africa are executed on behalf of other departments and municipalities).
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STRATEGIC RISKS
The CGS is required to manage and respond to a set of strategic risks that may have an impact on the execution of its strategic plan. These, together with the response of
the CGS to the risks are summarised in the table below. In addition, the initiatives proposed to achieve the CGS strategic objectives will further provide a level of mitigation
of the stated risks.
Table 17: Strategic Risks
Strategic Objectives Strategic Risks CGS Response
Financial sustainability ● Reduction in government grant ● Inadequate integrated ICT Systems
● Development of programmatic approach to manage geoscience technical programmes
● Implementation of the IP Management Office to increase revenue generating potential
● Aggressive business development including venturing into Africa and elsewhere where the political environment coincided with the parameters of the lawful Diplomacy Programme of CGS
● Increasing the order book by developing product management protocols, increasing quality proposals, and optimally delivering of products
An empowered, transformed, motivated and capacitated workforce
● Inadequate resources impacting on service delivery ● Inadequate talent management
● Organisation-wide alignment of the skills matrix for staff ● Succession planning, talent management and employee training and
development programmes
Delivery of the mandate and Advisory, stakeholder engagement and knowledge
● Inability to meet stakeholder needs ● Lack of applied solution driven products ● Inadequate access and management of geoscience
data ● Unconducive working conditions ● CGS brand is not adequately known
● Stakeholder relationships management programmes ● GTP model in place and targeted priority programme areas identified ● Implementation of collaborative agreements in geoscientific research
Organisational effectiveness and efficiency
● Inadequate world-class facility to accommodate and retain world-class talent
● Lack of an integrated service-delivery model ● Lack of automated and integrated SCM system ● Non-compliance with regulatory framework (i.e.
POPI, PAIA, National Archives Act)
● Five-Year IT Master Plan, Integrated Service Delivery Model for Accessibility, Storage, Repository and Dissemination Platform, Record Management System, and the integrated ICT System
● Development of a Universal Compliance Legislation Framework, Policies and Guidelines