SANParks 2017/18 ANNUAL REPORT...

SANParks 2017/18 ANNUAL REPORT

PRESENTATIONPresented by Mr Fundisile Mketeni: CEO SANParks

10 October 2018 AR Presentation to the PCA 1

Presentation Content

1. SANParks Mandate

2. National Priorities & Other Considerations

3. Vision and mission

4. Strategic Goals

5. Description of strategic goals

6. Our Strategy Map

7. Annual Performance report 2017/18

8. Financial Performance for 2017/18

9. Audit report

10 October 2018 AR Presentation to PCA 2

Mandate is derived from National Environmental Management:

Protected Areas Act, 57 of 2003

Mandate is to conserve, protect, control and manage National Parks

and other defined protected areas and their biological diversity.

SANParks is a Schedule 3A Entity in terms of the PFMA.

OUR MANDATE

Conservation, Tourism and

infrastructure Management

Conservation –Terrestrial and

Marine

Own air wing

Emergency services and

Disaster Management

Health and Ambulance

Services

Growing our own revenue

R20 billon infrastructure to

manage

MANDATE IS LOADED

Law Enforcement and Security

Wildlife Crime

Traffic Services and Management

Covert Operations and

Intelligence workDefence force and Police Services

Firearms Management

MANDATE IS LOADED

Socio-Economic Development

Community Development

Enterprise and Supplier

Development

Wildlife Economy and transformation

Human Settlements

Land Claims

Municipality relations

MANDATE IS LOADED

SANParks Strategy: Context

NATIONAL PRIORITIES

The South African Constitution

The National Development Plan

International Policies (MEAs – CBD, CITES, IPBES, RAMSAR etc.)

Government’s 12 Outcomes : SANParks delivers on Outcome 10: Sustainable Development

Schedule 3a company governed by National Policies – esp. NEM Protected Areas Act, NEMBA and PFMA

OTHER CONSIDERATIONS

Local communities (socio economic development, radical economic transformation)

Priorities at provincial level

Triple challenge: poverty, inequality and unemployment

Political uncertainty

Depressed economic outlook, hard to sell BrandSA (international tourists)

Climate change and impacts on biome boundaries, communities

Challenging compliance environment


SANPARKS VISION AND MISSION

VISION: A sustainable National Parks System connecting

society

MISSION: Develop, expand, manage and promote a system

of sustainable national parks that represents biodiversity

and heritage assets, through innovation and best practice

for the just and equitable benefit of current and future

generations.

SANParks Strategic Goals

10 October 2018 AR Presentation to DEA 5

SANParks Strategic Goals

SG1: Sustainable conservation asset

To ensure that environmental assets and natural resources are well protected and continually enhanced through an adaptive

and effective National Parks System.

SG2: Diverse and responsible tourism

To enhance the tourism plant in order to maximise economic returns, social and environmental benefits, by creating

diversified and better tourism products for people to enjoy, visit and appreciate.

SG3: Progressive, equitable and fair socio-economic transformation

To foster an efficient, effective and development oriented public service and an empowered, fair and inclusive citizenship that will enable the creation of decent employment through inclusive economic growth, vibrant, equitable and sustainable rural communities.

SG4: Effective resource utilisation and good governance

To create and maintain a conducive workplace for skilled and capable workforce that will form a responsive, accountable,

effective and efficient National Parks System.


SANParks Strategy Map


High Level Structure

12

HIGH LEVEL STRUCTURE

MINISTER

Dr BEE Molewa

BOARD

Chair: Ms J Yawitch

CEO

Mr F Mketeni

Board Sec

Ms. M

Mathabathe

H:OCEO

Mr L Zepe

COO

Ms L McCourt

CFO

Mr D. Dlamini

ME: Corporate

Services

Vacant

ME: Parks

Mr P Mokoena

ME: Kruger

Mr G Phillips

ME: Tourism &

Marketing

Ms H Sello

ME:

Conservation

Dr L. Dziba

2017/18

Annual Performance Report


http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.reussirsaboutiqueenligne.fr/2014/11/&ei=ZQucVcKSG4L-7AbuoozoAQ&bvm=bv.96952980,d.ZGU&psig=AFQjCNFHpEWPRyy07rFkCEPgW530BKPR-A&ust=1436376270428122

http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.reussirsaboutiqueenligne.fr/2014/11/&ei=ZQucVcKSG4L-7AbuoozoAQ&bvm=bv.96952980,d.ZGU&psig=AFQjCNFHpEWPRyy07rFkCEPgW530BKPR-A&ust=1436376270428122

Key to dashboard

% of target achieved Status Traffic-light

≥90% Achieved

75% - 89% Work in Progress

<75% Off Target

No target No target


SG1 : Sustainable Conservation Asset

SO 1: IMPROVED REPRESENTATIVE CONSERVATION ESTATE

• METT Assessment: 71%

• SoB : 58%

• SOAIM: 2.8

Total ha included:

3847 ha

Participated in all relevant Phakisa

Tasks Teams towards the

declaration of MPAs.

Management Effectiveness

Baseline determination in parks.

KNP: 2.2% increase in fossil fuel energy and decrease of 7.34 % water use


SG1 : Sustainable Conservation Asset

SO 1: IMPROVED REPRESENTATIVE CONSERVATION ESTATE

Hectares Rehabilitated & SO 6: (Jobs Created; Budget Spent)

•

Initial: 44,519 ha.

Follow-up: 199,484 ha

Wetlands:6,467 m³

7,109 FTEs Created

733 SMMEs supported

Total value spent on SMMEs =

R 231,064 million



SO2: Effectively managed ecosystem, species and cultural

heritage assets: Rhino Management

•

32% decrease YoY in arrests

from key species from

baseline

12.9 % reduction

(YoY) in recorded fatalities of rhino

and elephant poached in Kruger

NP

No rhino poached in the other six parks

13.9 % reduction

YOY in J534 fines




heritage assets: Deviance from the sustainability threshold of

identified key species

Rhinos:

SWBR: 0

SCBR: 36

SWR: 466 (exceeded by 5.9%)

Elephants well within acceptable range:

GRNP: 0

KNP: 74

Mapungubwe: 0

Marakele: 0

Addo: 0

Cycads: Threshold determined & 100%

of activities achieved

Penguins:

Threshold determined 77,7% of

the management plan completed



heritage assets: Cultural Heritage

Kalahari Gemsbok NP

listed as a World Heritage

site

86,6% Cultural Heritage planned activities

implemented

Submitted to SAHRA:

Thulamela; Masorini &

Agulhas Lighthouse for declaration as

national heritage sites

A thorough assessment of

all movable heritage

collections in KNP was done.




heritage assets: Research

•

Research projects rated as essential and important on

key SANParks issues : 79.6%

52 peer reviewed SANParks research

publications

Koedoe journal celebrated 60

years

International Savannah Science

Networking event has grown from

strength to strength


SG2: Diverse and Responsible Tourism

SO 4: Enhanced Tourism Returns

•

•

• Grown from R 1,423,892 billion in 16/17 to R 1,603,634 billionin 17/18

• ( + 12.6 %) % growth in Gross

Operating Tourism

Revenue (YoY)

Total Number of Visitors to NPs has grown from

6,664,996 to 7,007,152

( 5,1% increase)

Growth in Total Number of local

Black ( & overnight)

Visitors from 547,683 to 572,734

Customer Satisfaction Index: 80.8%



SO 5: Diversified and enhanced tourism opportunities and

experiences

•

14 Revenue Generating Products

Implemented

Each PPP includes a

BBBEE scorecard

Tourism Growth Strategy

developed

9 Park Visitor Management & Interpretation

Plans Implemented

10 October 2018 AR Presentation to DEA 17


SO 6: Optimised contribution to the green and blue economy

•

• Draft Framework developed

• Task Team Committee established

• 7 pillars identified

• Various scoping workshops held with top management

Integrated Transformation

Strategy not finalised

Wildlife Economy

9 Beneficiaries of Wildlife loans - 941

Animals

5 disease free buffalo to the Matsila

Community Trust

65 different heads of plane game to the Khomani SAN

CPA

3 Social Legacy Projects

implemented:

Kgalagadi Multi-purpose playground;

Mbuyani and Mtitiscience labs



SO 6: Optimised contribution to the green and blue economy & SO 7:

Enhanced Awareness and Skills & SO 8: Enhanced Stakeholder Engagement

•

Kruger NP Land Claims: Beneficiation

Scheme developed &

approved

139,668 participants in the

Environmental Education

programme

Free Entrants

SANParks Week : 77 340

(24% YoY increase)

Media Releases: 306; Media

Events: 20, Media Reputation rating:

93% positive


SG4: Effective Resource Utilisation & Good Governance

SO 9: Adequate, appropriately skilled, transformed & diverse human capital

• 01:06

•

• 59% Black as % of management

Employment Equity : Black

as a % of Management

EE: 38.5 % of Women in

management

5 year plan to reach target.

Women’s Forum

Total male to female ratio

Employment Equity: 2.1 % of people with disabilities



SO 9: Adequate, appropriately skilled, transformed & diverse human capital

• 1%• Fair application of

disciplinary policy & procedure

• Enabling policies

• Training interventions

Skills Development: 1.48% ( R 14,4

million) of payroll spent

Leadership Development

Executive Coaching

Global Executive Leadership

Staff turn-over rate

100% success rate at CCMA


SG4: Effective Resource Utilisation & Good GovernanceSO 11: Optimised business processes & knowledge management & SO 12:

Accountable Corporate Governance management

:

• 2 BABEX systems in GRNP

• Least cost routing

• Last mile date to allowe for voice mail traffic

• Security incident and event monitoring

• Tragetted threat protection

• Vulnerability Scanning

• 100%

• Biometric access

• Job profiling

• Facilities overnight requests

• Fire arm control

• Facilities Helpdesk

• Central supplier integration

• Biometric access

• Job profiling

• Facilities overnight requests

• Fire arm control

• Facilities Helpdesk

• Facilities stock management

• IT User access 7 business processes

mapped

6 processes automated

7 ICT Strategic Projects

implemented

Compliance with

Governance Regulations



SO 13: Financial Sustainability

• 51% • 82%

• 2% • 01:11.01

Income to Cost Ratio

Expenditure Budget Variance

Direct HR costs as a % of total expenditure

Own revenue generated as a % of total

revenue



SO 13: Financial Sustainability

• R34 652 744 million

• 25 days • 39 days

Average no of days for debtor

collection

Average no of days for creditor

payment

Total Revenue Generated from

fundraising


Financial performance as at

31 March 2018

30

http://www.fotosearch.com/CSP839/k8395034/

http://www.fotosearch.com/CSP839/k8395034/

Statement of Financial Position

31

Statement of Financial Position

32

Net Worth

R2,284 billion

Current Assets

R 1,856 bn

Current Liabilities

R 1,523 bn

Inventory

R39,6 m

Cash and

Bank

R1,776bn

Receivables

R39,9 m

Trade and

other

payables

R240,9m

Provision

R58,9 m

Loan and

Lease

obligations

R55,6 m

Conditional

Grants

R814,4m

Reservation

Deposits

R353,4m

Total Assets

R4,763 bn

Total Liabilities

R2,479 bn

Statement of Financial Performance

33

Revenue Streams

34

Revenue and Expenses – 5 year period

35

Update on AG Findings

36

Auditor General’s Report

External Audit Outcome:

Unqualified audit opinion in the 2017/18 financial year

Audit of financial statements

The financial statements submitted were free from material misstatements; however matter of emphasis were raised which relates to:

• Material provision for impairment;

• Restatement of corresponding figures

Auditor General’s Report..cont.

Audit of Performance Information

The material finding related to the strategic objective – Enhanced Tourism

Returns in particular the following key performance indicators:

• % Growth in Total number of local Black Visitors;

• % Growth in Overnight Local Black Visitors.

The Auditor – General could not obtain sufficient appropriate audit evidence

for the variances and the reported achievements.

Implementation of corrective measures

Activity Finding Description of finding Corrective measures

Audit of

Performance

Information

Adjustment of

material

misstatements

Material misstatements were reported

in the performance information.

Management has subsequently corrected

the misstatements; however the finding is

raised on the usefulness and reliability of

the reported performance information.

Management implemented rigorous

controls and monitoring processes to

minimise the misstatements.

Audit of

Compliance with

legislation

Expenditure

management

Effective and appropriate steps were

not taken to prevent irregular

expenditure amounting to R6,164,000

as disclosed in the annual financial

statements.

Management has implemented focussed

training to staff to make them aware of the

proper SCM processes to follow.

Capacity of resources to support

operational requirements is assessed and

the necessary capacity would be build.

The contract management function will be

reviewed to enhance and improve the

efficient control of contracts to prevent

irregular expenditure.

Thank You

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