Vote 30: Environmental AffairsPortfolio Briefing
Expenditure Report for period 1 April -30 September 2013
Nosipho NgcabaDirector-GeneralDepartment of Environmental Affairs15 October 2013
1
Presentation Outline
- Adjusted Allocations- Expenditure per programme- Expenditure per economic classification- Expanded Public Works Programmes & Projects- 30 days payment report- Donor Funding - Budget Structure & Funding of priorities
2
Adjustments requested and allocatedDescription Requested Allocated
R’000 R’000
Oceans & Coasts Fire Laboratory: Cape Town 8 410 8 410
Emergency trip to Marion Islands for Medical Evacuation
2 288 0
Fuel increase: Vessel Operation 13 600 0
SANParks Management of Indigenous Forests: Garden Route
44 000 0
Floods damage in a Kruger National ParkDisaster Funding
13 500 13 4643 812
Chemicals and Waste Provision of Waste Management Services per pre-determined Outcome 9&10 targets
342 000 0
Expanded Public Works Proposed Cuts by National Treasury (100 000)
TOTAL 423 798
3Adjustment not yet effected, will only be effected in October after the proposed cuts have been reversed by National Treasury
Expenditure for the 2013/14 Financial Year per Programme
Programme Final appropriation
R’000
Expenditure till 30 September
2013R’000
% Spent
1. Administration 777 314 326 234 42%
2. Legal, authorization and compliance
113 324 44 716 39%
3. Oceans and coasts 309 766 158 989 51%
4. Climate change and air quality 233 814 113 921 49%
5. Biodiversity and conservation 559 453 261 162 47%
6. Environmental programmes 3 371 778 1 318 437 39%
7. Chemicals and waste management
65 707 25 098 38%
Total 5 431 156 2 248 557 41%
4
Expenditure per Economical Classification
Economical classification Final appropriation
R’000
Expenditure
R’000
% Spending
Current Payments 1 632 588 665 176 31%- Compensation of employees -Goods and services*
668 000964 588
326 333338 843
50%35%
Transfers and Subsidies 3 606 977 1 478 118 47%
Departmental Agencies Foreign GovernmentsNon-Profits InstitutionsGreen fundExpanded Public WorksGifts & donations
1 099 76512 89011 900
500 0001 985 305
117
451 0550
6 336167 290853 320
117
43%72%53%33%86%
100%
Payment for capital assets* 191 591 105 263 55%PPP New Building Machinery & EquipmentFinancial & Software Assets
146 00044 992
599
86 01818 834
411
72%42%67%
Total 5 431 156 2 248 557 41%
5
Notes Expenditure Trends
6
Programme 1: 42%-SITA payments: delayed submission of invoices -R60million for IT infrastructure for new building: Tendering process in progress-Department of Public Works invoices (+- 80 Million)-Invoices for rental and office accommodation not yet received or due
Programme 2: 39% - Re-alignment of the structure and filling of posts recently completed- Legal claims for cost with regard to cases in the enforcement cases is only expected at a later stage- Claims for travel and accommodation for enforcement, compliance, and monitoring only processed after projects are finalised.
Notes Expenditure Trends
7
Programme 6: ( 40%)-Green Fund: Awaiting request for approved projects and cash flow projections before transfers are effected-Working for Water and working on fire Small Contractors Payments: Payments for eradicating invasive species paid only after completion of project. -Transfer of Infrastructure Grants to Public Entities : -Incentives for over-achievement of EPWP project targets. only paid after quarterly reporting is finalized Programme 7: (38%) -Re-alignment of the structure and filling of posts recently completed.-Payment of R10,5 million to the National Regulator for Compulsory Specifications will only payable in January 2014.
Detail Current Expenditure *Goods and services Expenditure
R’000Consultants , contractors and agency/ outsourced services -Annexure ATravel and subsistence - Foreign & Travel -Annexure BVenues and facilities (communication projects and meetings)Other operating expenditure (refer to next slide)*Operating leases (include accommodation, car rentals and Nestle machines rentals, printers, fax machines)Owned and leasehold property expenditure (Include building maintenance and repairs)Inventory includes: oil gas, medical, food supplies for AntarcticaComputer services (software licenses, operating systems, datalines & external computer services)Consumables (stationery, printing, office suppliers)Island & laboratories suppliesAssests <R5000Advertising (tenders, marketing, promotional items and recruitments costs) Training and staff development (NRM Implementing Agencies & pilot youth programmesCommunication (Installation of data lines, telephone & conference facilities in regions/Cape Town) Audit cost – (External)Catering & EntertainmentBursaries employeesAdministrative fees (increase in personnel agency and travel agency fees) Fleet services (transport provided as part of the departmental activities)
134 49963 15813 91422 65726 405
6 4008 3969 2573 321
12 1491 1508 7063 3058 977
3 8472 105
7201 3538 524
TOTAL 338 843
8
Graphical Presentation
9
Actual Month: Apr - Sep 2013 Forecast Month: Oct 2013 - March 2014
National Allocation: R 5 431 156 000
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Total
Approved Drawings vs Projected vs
Actual Expenditure
Avg. Rate of Deviation
Comment
R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000 R'000
Month 287 720 433 549 259 818 541 347 282 653 443 470 0 0 0 0 0 0 2 248 557 2 248 557 187 380
Cumulative 287 720 721 269 981 087 1 522 434 1 805 087 2 248 557
Month 474 928 494 799 440 024 354 688 445 965 316 706 343 501 430 330 315 230 456 504 539 886 818 595 5 431 156 2 527 110 86 955
Cumulative 474 928 969 727 1 409 751 1 764 439 2 210 404 2 527 110 2 870 611 3 300 941 3 616 171 4 072 675 4 612 561 5 431 156
Act
ual (
BAS)
Expe
nditu
re
DEPARTMENT OF ENVIRONMENTAL AFFAIRS 2013/14
Gra
phic
al A
naly
sis
of M
onth
ly F
orec
ast v
ersu
s M
onth
ly A
ctua
l Exp
endi
ture
s;in
clud
ing
the
Ave
rage
Rat
e of
Mon
thly
Exp
endi
ture
Summary
SUMMARY FOR DEPARTMENT CUMULATIVE EXPENDITURE
App
rove
d D
raw
ings
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
3 500 000
4 000 000
4 500 000
5 000 000
5 500 000
Apr-1
3
May
-13
Jun-
13
Jul-1
3
Aug-
13
Sep-
13
Oct
-13
Nov
-13
Dec
-13
Jan-
14
Feb-
14
Mar
-14
R'000
Actual (BAS)Expenditure
ApprovedDrawings
2 527 110
2 248 557
0
500 000
1 000 000
1 500 000
2 000 000
2 500 000
3 000 000
3 500 000
4 000 000
4 500 000
5 000 000
5 500 000
Approved Drawings vs Projected vsActual Expenditure
R'0
00
Detail Current Other Operating Expenditure *
Notes Expenditure
Operating Expenditure *
Air charter services, voyages to Islands& landing rights Harbour, dock fees (Buoy, ocean surveyor & systems)Professional bodies,membership and subscription fees*Printing & publications services Resettlement costsCourier & Delivery servicesFreight & Harbor services Other:Car valet & wash services/Laundry services/Gifts/Nonlife insurance/Drivers licenses & permits/Achievements and awards/Storage of assets & goods
8 560
8 0303 2981 266
52766
910
TOTAL 22 657
10
Payment for Professional bodies, membership and subscription fees* (R8 030)
• 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
11
Payment of Capital AssetsMachinery and Equipment Expenditure
R’000
Computer Equipment Transport Equipment ( Vehicles: Environmental Programmes)Furniture fixture & appliancesPhotographic EquipmentShip and Marine Equipment (Exchange rate correction)Finance LeasesTelecommunication Equipment Printing EquipmentSport and Recreation Equipment (Tents, Flags & Accessories)Learn/Training/LibraryFixed Air Conditioner
4 26012 460
479138272929
3964786946
Total 18 834
12
13
Allocations & Transfers to DEA Public Entities
SANParksR’000
SANBIR’000
SAWSR’000
ISWPR’000
TOTALR’000
Allocated Budget 526 988 264 254 182 943 125 580 1 099 765
DEA Operational Infrastructure Grant
220 145306 843
208 68455 570
162 94320 000
28 79096 790
620 562479 203
Transferred (168 764) (128 029) (101 472) (52 790) (451 055)
DEA Operational Infrastructure Grant
(101 921)(66 843)
(104 0290 (24 000)
(81 472)(20 000)
(14 395)(38 395)
(301 817)(149 238)
Balance 358 194 136 225 81 471 72 790 648 710
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Expenditure SANParksR’000
SANBIR’000
SAWSR’000
iSimangalisoR’000
Total revenue (468 622) (199 651) (130 456) (17 991)
Total expenditure 497 134 169 464 114 436 25 034
Public Entities Revenue and Expenditure as at 31 August 2013
15
Allocations & Transfers to Other Agencies
DBSAGreen Fund
R’000
Nat. Assoc. for Clean Air
(NACA)
R’000
Nat. Regulator of Compulsory
Spec.(NRCS)R’000
Global Environmental
Fund (GEF)R’000
Social Benefits/Leav
e gratitude
TOTAL
R’000
Allocated Budget 500 000 1 400 10 500 12 890 524 907
Transferred (167 290) (1 200) 0 0 (5 136) (173 400)
Donations & licenses (117)
Balance 332 710 200 10 500 12 890 351 390
16
Allocations & Transfers Environmental Public Works Projects
Working for Water
R’000
Working for Fire
R’000
Environmental Projects
R’000
TOTAL R’000
Allocated Budget 732 766 421 475 828 064 1 982 305
Projects Incentives
623 730109 036
368 63252 843
630 512197 552
1 622 874 359 431
Transferred (323 445) (235 209) (294 666) (853 320)
ProjectsIncentives
(323 445)0
(235 209)0
(242 253)(52 413)
(800 907) (52 413)
Balance 409 321 186 266 533 398 1 128 985
Expanded Public Works per Projects
Projects ExpenditureR’000
Working for water 323 487
Youth Environmental Service 15 088
Working for Fire 19 030
People and parks 44 165
Working for waste 39 142
Working for coast 75 789
Working for forest operations 216 179
Working for land operations 55 962
Beneficiary training 14 422
World Economy 11 725
Green Open Space 39 265
Total 853 320
30 Days Report Financial 2013-14
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FY 2012-13 Apr'13 May'13 Jun'13 Jul'13 Aug'13 Sep'13 Oct'13 Nov'13 Dec'13 Jan'14 Febr'14 March'14 TotalTotal Number of Invoices < 30 days 1,233 2,321 2,015 2,375 1,460 2,349 - - - - - - 11,753 Total Expenditure < 30 days R 226,931 R 618,409 R 204,892 R 485,186 R 227,060 R 540,377 R 0 R 0 R 0 R 0 R 0 R 0 R 2,302,855Average days of payments 28 23 22 24 27 30 - - - - - - 26Number of Invoices > 30 days - - - - - 4 - - - - - - 4 Total Value > 30 days R 0 R 0 R 0 R 0 R 0 R 121 R 0 R 0 R 0 R 0 R 0 R 0 R 121Percentage of payments > 30 days 0% 0% 0% 0% 0% 0% 0%
Exception Report: Instruction Note 34 (Effecting Payments Within 30 Days)Financial Year 2013-2014
Apr '13 May '13 Jun '13 Jul '13 Aug '13 Sep '13 Oct '13 Nov '13 Dec '13 Jan '14 Feb '14 Mar '14legislated Base line 30 30 30 30 30 30 30 30 30 30 30 30Average payment days 28 23 22 24 27 30 - - - - - -Percentage of payments > 30 days - - - - - 0%
0
5
10
15
20
25
30
35
Num
ber o
f day
s
Exception Report: Effecting Payment Within Thirty (30) Days
Reasons for over 30 days payment report –0 to 1% of total invoices
Reasons
IT system issues BAS, Logis, Safetyweb down during the first two weeks of August 2013
Faulty or incomplete invoices and supporting documents returned to suppliers
Late submission of invoices
Corrective Actions
Processing at SITA premises
Provision for overtime to process backlog of payments
Continuous reporting to National Treasury & SITA to effect corrective actions
Department has an effective document flow & control processes to track unpaid invoices
19
Foreign Aid AssistanceName of
Donor Country
Purpose Budget Allocated
R’000
Expenditure
R’000
UNEP Reducing Mercury Emmisions from Coal Combustion into the Energy Sector
74 74
World Bank African Stockpile Programme (funds surrended) (52) (52)
Botswana Transfer Conservation Areas Strategy 813 0
Germany Supporting the Development and Implementation of Access and benefit sharing Policies in Africa
200 200
Germany Climate Change Programmes 539 539
USAID Compilation of arid Transfrontier Project 319 226
UNEP National Roundtable on Sustainable Consumption and Reduction
317 317
2 210 1 30420
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%
2013/2014 5 431 156 2 248 557 41.4%
21
DETAIL BUDGET STRUCTURE &
FUNDING OF PRIORITIES
22
23
COMPENSATION OF EMPLOYEES
Budget ExpenditureR’000
% Spend
R668 000 000 R 326,333 48.9%
S&W: BASIC SALARY R 218,848 32.8%
NON PENSIONABLE ALLOWANCES R 33,837 5.1%
EMPLOYER CONTRIBUTIONS R 32,085 4.8%
PERFORMANCE BONUS R 15,496 2.3%
SERVICE BONUS R 13,953 2.1%
HOUSING ALLOWANCE R 6,233 0.9%
OVERTIME R 3,102 0.5%
OTHER REMUNERATION R 2,777 0.4%
Programme 1: Administration
Sub-Programme Adjusted Allocation
1. ManagementR’000
92 598
2. Corporate Affairs 182 460
3. Environmental Advisory Services 103 220
4. Environmental Sector Coordination 56 883
5. Financial Management 48 073
6. Office Accommodation PPP: Unitary Payment PPP: Government Contract Office Accommodation
60 000146 000
88 080
Total 777 314
24
Programme 2: Legal, Enforcement and Compliance
Sub-Programme Adjusted Allocation
1.Legal, Authorisations and Compliance ManagementR’0006 496
2. Compliance Monitoring 15 816
3. Integrated Environmental Authorisations 43 092
4. Enforcement 26 099
5. Corporate Legal Support and Legislation 8 247
6. Law Reform and Appeals 13 574
Total 113 324
25
Programme 3: Oceans and CoastsSub-Programme Adjusted
Allocation
1. ManagementR’0006 791
2. Integrated Coastal Management 34 101
3. Oceans and Coastal Research 110 774
4. Oceans Conservation 161 472
5. Specialist Monitoring Services 5 038
Total 318 176
26
Programme 4: Climate Change and Air QualitySub-Programme Adjusted
Allocation
1. Climate Change ManagementR’0006 298
2. Climate Change Mitigation 7 644
3. Climate Change Adaptation 3 883
4. Air Quality Management 36 541
5. South African Weather Service 162 943
6. International Climate Change Relations & Negotiations 9 148
7. Climate Change Monitoring and Evaluation 7 357
Total 233 814
27
Programme 5: Biodiversity and ConservationSub-Programme Adjusted
Allocation
1. Biodiversity and Conservation ManagementR’000
15 352
2. Biodiversity Planning and Management 23 559
3. Protected Areas Systems Management 43 591
4. iSimangaliso Wetland Park Authority 28 790
5. South African National Parks 277 645
6. South African National Biodiversity Institute 208 684
7. Biodiversity Monitoring and Evaluation 4 575
8. Biodiversity Economy and Sustainable Use 14 757
Total 616 953
28
Programme 6: Environmental ProgrammesSub-Programme Adjusted
Allocation
1. Environmental Protection and Infrastructure ProgrammeR’000
1 357 760
2. Working for Water and Working on Fire 1 496 879
3. Green Fund 500 000
4. Environmental Programmes 4 939
5. Information Management and Sector Coordination 12 200
Total 3 371 778
29
Programme 7: Chemicals and Waste ManagementSub-Programme Adjusted
Allocation
1. Chemicals and Waste ManagementR’0004 854
2. Hazardous Waste Management and Licensing 10 566
3. General Waste and Municipal Support 30 640
4. Policy Evaluation and Monitoring 11 645
5. Chemicals Management 8 002
Total 65 708
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