2 nd & 3 rd Quarterly Performance Report, Audit Matters and Financial Position Mr Fundisile Mketeni:…

2nd & 3rd Quarterly Performance Report, Audit Matters and Financial Position

Mr Fundisile Mketeni: Chief Executive Officer (SANParks)

Presentation Content

1. Vision and Mission

2. High Level Structure

3. 2015/16 SANParks Strategy Map

4. Amendment to indicators and targets

5. Performance Dashboard

6. 2nd Quarterly Performance Reporting

7. 2014/15 Financial Performance

8. AG Findings (including IT Governance Framework)

2

SANParks Vision and Mission

VisionA Sustainable National Park System Connecting Society

MissionTo 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

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Performance Reporting Framework

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Chief Financial Offi cer:R Mahabeer

ME Parks (Acting)P Mokoena

ME Conservation Services(Acting) H Hendricks

HEAD: CEO Offi cceL Zepe

ME Kruger NPG Phillips

ME Toursim Development & Marketting

H SelloBoard Secretary:P Van Der Spuy

ME: CorporateW Makutshulwa

HOD Socio-Economic Development

P Daphne

Minister: Environmental AffairsHon E Molewa

Corporate Support Functions Parks Operations Core Functions CE & Board Support

Chief Executive OfficerF Mketeni

SANPARKS Board

Chief Operationx Offi cerL McCourt

2015/16 Strategy Map

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2015/162015/1622ndnd & 3 & 3rdrd Quarters Quarters

PerformancPerformanc

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http://www.google.co.za/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http%3A%2F%2Fwww.reussirsaboutiqueenligne.fr%2F2014%2F11%2F&ei=ZQucVcKSG4L-7AbuoozoAQ&bvm=bv.96952980,d.ZGU&psig=AFQjCNFHpEWPRyy07rFkCEPgW530BKPR-A&ust=1436376270428122

LegendLegend

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Target achieved or exceeded - Good Performance

Work in Progress - Caution

Target not achieved – Underperformance

No target planned for reporting period

Indicator / Target amended at mid-year

Information not provided

Amendment to Indicators – October 2015

SO Indicator Annual Quarterly Reason for amendmentFormer New Former New

1 Budget variance - Income 0%

1:1

0%

1:1

Amended to a break-even target, Income:Expend to meet PFMA requirements

1 Budget variance - expenditure

0% 0%

2METT Score

70% 70% 70% Milestones detailed

METT assessment only every 2nd year, not quarterly

2 Total Hectares of Land Rehabilitated / Restored (Initial) or New (ha)

50 086 33,368 22 038 25,026

Targets amended in response to DEA

approvals and budget – August 2015

2 2.2 Total Hectares of Land Rehabilitated / Restored (Follow-up) (ha)

212 678 202,694 163 762 152,021

2 2.2 Total of Land Rehabilitated / Restored (Wetlands) (m³)

16 128m³ (26 sites) 6,508

11 773 m³ (19 sites) 2,603

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SO Indicator Annual Quarterly Reason for amendment

Former New Former New

2 Total Number of Park Management Plans Reviewed and Submitted

2 2 2 Milestones Review and submission happens annually and not quarterly

2 Total Number of Species Protection Interventions Implemented

6 6 6 Milestones Interventions only fully implemented at year end

3 Total Number of Full-time Equivalent Jobs Created (EPWP) 6 254 7,942 4,691 4,691

Targets amended after approval by DEA of budget and projects Aug 2015

3 3.6 Total Number of SMMEs / Enterprises Supported 482 501 482 482

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SO Indicator Annual Quarterly Reason for amendment

Former New Former New

6Women as % of Management 36% 50.0% 36% 41.5%

Alignment with Government targets as per PCEA instruction

6People with Disabilities 1% 2.0% 1% 1.5%

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BIRDS-EYE VIEW ON PERFORMANCE YTD

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Performance Dashboard

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Annual Target Q1 Q2 Q3

1.1 - Budget Variance - Income -7.3% -1.5%

1.1 - Budget Variance - Expenditure -7.8% -1.5%1.2 Gross / Operating Tourism Revenue (YoY) 10.5% 11% 7.9% 9.9% 9.2%1.3 Total Number of Revenue Generating Products Implemented

07

0 1 5

1.4 Fundraising Policy & Strategy Developed and Implemented

75.0%100%

37.5% 60.0% 75

1.5 Accommodation Occupancy 74.0% 72.50% 71.4% 75.8% 75.9%1.6 Customer Satisfaction Index 82.0% 82% 81.8% 82.1% 82.2%1.7 Total Number of Visitors to National Parks 3,349,584 5,600,000 1,067,094 2,405,279 4207320

1;11,12:1

SO1: Optimised Economic Contribution Through Tourism and Associated Activities

Break Even

Corporate Strategic Objectives Performance Indicators 3rd Quarterly TargetActual Performance


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Corporate Strategic Objectives Performance Indicators 3rd Q Target

Actual PerformanceAnnual Target Q1 Q2 Q3

SO2: Enhanced Conservation and Ecological Integrity of National Parks System

2.1 METT Score

Implementation of the corrective actions per park

70.0% 74.0% 74.0%Implementation on

target

2.2 Total Hectares of Land Rehabilitated / Restored (Initial) or New (ha)

25,026 33,368 14,737 24,611 35,301

2.2 Total Hectares of Land Rehabilitated / Restored (Follow-up) (ha)

152,021 202,694 38,433 93,609 177,301

2.2 Total of Land Rehabilitated / Restored (Wetlands) (m³)

2,603 6,508 0 0 4,417

2.3 Total Area Added to National Parks (Terrestrial) (ha)

03715

0 0 0

2.3 Total Area Added to National Parks (Marine) (km2)

00

0 0 0


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Corporate Strategic Objectives Performance Indicators 3rd Quarterly

Target


SO2: Enhanced Conservation and Ecological Integrity of National Parks System

2.4 Total Number of Park Management Plans Reviewed and Submitted

Completion of Lower

Level Plans for MZ NP and KG NP

2 0 0

Completed draft lower level

plans for both

parks.

2.5 Total Number of Species Protection Interventions Implemented

(5) - Compulsory

interventions to protect

rhinos:6 1 3

5 Interventions all on

target

2.6 Total Number of Cultural Heritage Interventions Implemented

4 5 1 2 4

2.7 % of new research projects relevant to SANParks key issues

72.5% 73.0% 77.5% 76.0% 75.6%

2.8 Total Number of Peer Reviewed Research Publications

15 20 18 23 31


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Corporate Strategic Objectives Performance Indicators 3rd Quarterly Target

Actual Performance


SO3: Optimised Socio-economic Beneficiation

3.1 Total Number of Free Access Entrants 18,200 18,200 0 53,028 53,028

(cum) 3.2 Total Number of Environmental Education Impact Assessment Tools Developed.

2 2 0 1 2 (cum)

3.3 Total Number of Participants in Environmental Education Programme

139,200 185,600 41,656 89,601 133,453 (cum)

3.4 Total Number of Full-time Equivalent Jobs Created (EPWP) 4,691 7,942 1,200 2,627 4,422

3.4 Total Number of Full-time Equivalent Jobs Created (Other) 150 196 27 105 144

3.5 Total Number of temporary Jobs Created through Socio-economic initiatives

40 50 0 40 44

3.6 Total Number of SMMEs / Enterprises Supported 482 501 455 615 780

3.7 Number Community Contractual Agreements in Place 1 5 0 0 0


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Corporate Strategic Objectives Performance Indicators 3rd Quarterly Target

Actual Performance


SO4: Enhanced Stakeholder Engagement

4.1 Total Number of Proactive Media Engagements (Articles) 15 25 16 50 69

4.1 Total Number of Proactive Media Engagements (Media Events)

9 10 4 8 12

4.2 Media Reputation Rating 95% 95% 97.0% 99.0% 99%

SO5: Effective and Efficient Corporate Governance

5.1 Auditor General Audit Report

unqualified with no other matters

unqualified with no other matters

Unqualified with no

other matters

Unqualified with no

other matters

Unqualified with no

other matters

5.2 % progress against Risk Response Plan

4590

25.0% 45.0% 45.0%

4070

20.0% 40.0% 40.0%

3020

15.0% 30.0% 30.0%

5.3 % Compliance with Governance Requirements 80.00%

100%100.0% 100.0% 100.0%

5.4 Total Number of ICT Strategy Initiatives Implemented per Schedule

11

0 1 1


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Corporate Strategic Objectives Performance Indicators 3rd Quarterly

Target


SO6: Strengthened Human Capital and Management

6.1 Black as % of Management 56,5% 57% 55.2% 54.9% 54.9%

6.1 Women as % of Management 41.5% 50.0% 34.5% 41.4% 35.1%

6.1 People with Disabilities 1.5% 2.0% 1.2% 1.3% 1.3%

6.1 Total Male: Female Ratio 1,8:1 1,8:1 1.8% 1.79:1 1.79:1

6.2 % of Employees Meeting Minimum Educational Requirements (C and Upper)

94.0% 94.0% 97.3% 95.0% 95.0%

6.3 % of Performance Appraisals Completed (C and Upper)

80.0% 100.0% 60.0% 46.0% 46.0%

6.4 % Success Rate at CCMA 83.8% 85.0% 100.0% 100.0% 100.0%

6.5 % progress against implementation of Skills Development Programme

80.0% 85.0% 20.0% 65.0% 65.0%

DETAILED PERFORMANCE (CUMULATIVE TO END QUARTER 3)

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SANParks Cumulative Quarter 3

SO 1: Optimised Economic Contribution Through Tourism and Associated Activities

Performance indicator

Baseline Annual target

2015/16

Achievements

(cumulative to end Q3)

Challenges Corrective measures Overall performance

1.1 Revenue : Expenditure 1:1

1:1 (break even)

1,12:1 None N/a

1.2 Gross / Operating Tourism Revenue (YoY)

7.5% 11% 9.2% (slightly off target)

• Target might have been over ambitious given economic climate;

• Declining visitor numbers to national parks resulted in a 0.63% (equivalent to R1.665 million) less income realised from conservation fees than budget, most of which is generated from international market.

• Easter weekend fall within financial year

• New revenue generating projects coming on line shortly

• SANParks is cautiously optimistic that annual target will be achieved

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Baseline Annual target 2015/16

Achievements (cumulative to

end Q3)

Challenges Corrective measures

Overall performance

1.3 Total Number of Revenue Generating Products Implemented

5 7 5 None N/a

1.4 Fundraising Policy & Strategy Developed and Implemented

New 100% 75% None N/a

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end Q3)


Overall perform

ance

1.5 Accommodation Occupancy

69.9% 72.50% 75.9% None Not applicable

1.6 Customer Satisfaction Index 80.2% 82% 82.2% None Not applicable

1.7 Total Number of Visitors to National Parks

5 235 095 5,600,000 4207320 None Not applicable

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SO2: Enhanced Conservation and Ecological Integrity of South Africa’s National Parks




end Q3)


Overall perform

ance

2.1 METT Score 69.0% 70.0%Implementation of

the corrective actions per park

None Not applicable

2.2 Total Hectares of Land Rehabilitated / Restored (Initial) or New (ha)

50 836 ha 33,368 35,301 None Not applicable

2.2 (Follow-up) (ha) 206 299 ha 202,694 177,301 None Not applicable

2.2 (Wetlands) (m³)

16 823 m³

(29 sites) 6,508 4,417 None Not applicable

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SO2: Enhanced Conservation and Ecological Integrity of South Africa’s National ParksPerformance

indicator Baseline Annual target

2015/16Achievemen

ts (cumulative to end Q3)


Overall performan

ce

2.3 Total Area Added to National Parks (Terrestrial) (ha)

3 715 ha 3715 0 None Not applicable

2.3 (Marine) (km2) 0 0 0 None Not applicable2.4 Total Number of Park Management Plans Reviewed and Submitted

2 2

Completed draft lower

level plans for both parks.

None Not applicable

2.5 Total Number of Species Protection Interventions Implemented

New 65

Interventions all on target

None Not applicable

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SO2: Enhanced Conservation and Ecological Integrity of South Africa’s National Parks



Achievements



Overall performan

ce

2.6 Total Number of Cultural Heritage Interventions Implemented

5 4 4 None Not applicable

2.7 % of new research projects relevant to SANParks key issues

72.0% 72.5% 75.6% None Not applicable

2.8 Total Number of Peer Reviewed Research Publications


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SO 3: Optimised Socio-Economic Beneficiation


Baseline Annual target

2015/16

Achievements (cumulative to end

Q3)


Overall perform

ance

3.1 Total Number of Free Access Entrants 18 100 18,200 53,028 None Not applicable

3.2 Total No of Env. Education Impact Assessment Tools Developed.


3.3 Total Number of Participants in Environmental Education Programme

180 600 185,600

133,453 participants as opposed to the Q-ly target of 139,200. Target marginally missed

DBE Policy restricting Extra-curicular activities outside school grounds during schooling hours contributes to reducing learners' numbers.

Engagement with DBE re school tour policies and expanding holiday programmes

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Achievements


Challenges Corrective measures Overall perform

ance

3.4 Total Number of Full-time Equivalent Jobs Created (EPWP)

5, 686 7,942 4,422

• Delays in approval of Business Plans

• Budget cuts• Management

capacity in Garden Route EPWP

• Interventions in Management system to improve efficiency

• Management positions in GNP prioritised

3.4 Total Number of Full-time Equivalent Jobs Created (Other)

New 196 144

• This is Groen Sebenza and SANParks Interms

• Number of interns left programme due to full time employment

• Full time employment is encouraged; - numbers to stabilise toward end of year instead of increase 26





Achievements



Overall performan

ce

3.5 Total Number of temporary Jobs Created through Socio-economic initiatives

New 50 44 None Not applicable

3.6 Total Number of SMMEs / Enterprises Supported


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Baseline

Annual target

2015/16

Achievements (cumulative to end

Q3)

Challenges Corrective measures Overall performan

ce

3.7 Number Community Contractual Agreements in Place

4 5 0 • (See next) (see next)

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Indicator Achievements ( Challenges Corrective measures

3.7 Number Community Contractual Agreements in Place

• No community contractual agreements were concluded.

• Contractual Park Agreement with Richtersveld Community, agreed in principle..

• Bevhula/ Gidjani : Ecological assessment done; Community Trust establishment commenced; EPWP funded rehabilitation under way.

• Mjejane: Several conflict resolution interventions beneficiary list is developed . The Community Trust is to be established,.

• Nkambeni: Ecological assessment concluded. Community Trust establishment commenced. EPWP funded land rehabilitation commenced.

• Mdluli: litigations have been resolved. Benefit products identified .

• Khomani San: Game donations finalised

• Time consuming negotiations

• Legal process to establish Community Trsusts

• Litigation (Mdluli)• Conflict resolution

(Mjejane)

•Leverage goodwill created towards SANParks to expedite concluding community agreements

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SO 4: Enhanced Stakeholder Engagement

Performance indicator Baseline Annual target 2015/16

Achievements (cumulative

to end Q3)


Overall performa

nce

4.1 Total Number of Proactive Media Engagements (Articles)


4.1 Total Number of Proactive Media Engagements (Media Events)


4.2 Media Reputation Rating New 95% 99% None Not applicable

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SO 5: Effective and Efficient Corporate Governance




end Q3)


Overall performance

5.1 Auditor General Audit Report

Unqualified with no other

matters

Unqualified with no other matters

Unqualified with other matters None Not applicable

5.2 % progress against Risk Response Plan

New High: 90% 45.0% None Not applicable

New Medium: 70% 40.0% None Not applicable

New Low: 20% 30.0% None Not applicable

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SO 5: Effective and Efficient Corporate Governance




end Q3)


Overall performance

5.3 % Compliance with Governance Requirements

75.0% 100% 100% None Not applicable

5.4 Total Number of ICT Strategy Initiatives Implemented per Schedule


32


SO 6: Strengthened Human Capital

indicator Baseline Annual Q3 Challenges Corrective measures

6.1 Black as % of Management 55% 57% 54.9%

• Resignation of black managers;

• Recruitment policy amended;

• EE and succession plan to be reviewed

6.1 Women as % of Management 34% 50.0% 35.1%

• Original target met and exceeded; target increased upwards to be aligned with National Targets;

• Insufficient vacancies to meet target

• Recruitment policy and procedure amended;

• Women Forum launch – making SANParks attractive for professional woman

6.1 People with Disabilities 0.9% 2.0% 1.3%

• As above• Nature of work limit

categories of disabilities• Universal access standards

in work place not yet achieved

• Continue with declaration drive

• Identify and ring fence posts• Engage organised structures

6.1 Total Male: Female Ratio 1,8:1 1,8:1 1.79:1 None Not applicable

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SO 6: Strengthened Human Capital

Indicator Baseline Annual Achieved Challenges Corrective measures

6.2 % of Employees Meeting Minimum Educational Requirements (C and Upper)

93% 94.0% 95.0% None Not applicable

6.3 % of Performance Appraisals Completed (C and Upper)

80% 100.0% 46.0%Delay in roll out of new performance system – include CMC

PM training; individual follow-up

6.4 % Success Rate at CCMA 80% 85.0% 100.0% None Not applicable

6.5 % progress against implementation of Skills Development Programme

82% 85.0% 65.0%

Internal processes (training committee functioning)

Skills Development Plan approval prior to commencement of financial year

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Summary of YTD Performance

Financial or Trading Financial or Trading PositionPosition

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

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Statement of Financial Performance

Statement of Financial Position

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SANParks Operating Surplus / (Deficit)

Quarterly performance is based on management accounts incremental per month

IndicatorIndicator BudgetBudgetR ‘000R ‘000

ActualActualR ‘000R ‘000

VarianceVariance

%% R ‘000R ‘000

Total Income R 1 521 021 R 1 839 702 20.95% R 318 681

Total Expenses R 1 355 851 R 1 657 184 22.22% R 301 333

Bottom Line surplus R 165 170 R 182 518 10.50% R 17 348

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Update on IT Governance Model

• A Governance improvement programme was developed.

• Relevant COBIT processes were grouped together into five (5) Programme Objectives as follows:

41


Progress to date: •Governance and Strategy

ICT Governance Framework Policy completed and approved by Board, and is currently being implemented

Charters for IT Steering Committee and IT Portfolio Planning Committee adopted and approved by EXCO, and are currently being implemented

•Risk and Security Management: ICT Security Policy and Implementation Plan developed, and are currently being implemented

Development of Comprehensive Information Security Plan to commence March 2016 Business Continuity Plan development will commence March 2016 ICT Continuity Plan approved by EXCO and is currently being implemented

•Operations Management Operations management well established and governed Supplier management principles well established and governed SCM policies evaluated for compliance with COBIT standards

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Progress to date:

•Portfolio, Programme and Project Management IT Project Management Office (PMO) re-established, to be operational by March 2016 Value Management office being considered, initially part of PMO

•Change enablement All encompassing practice addressing all areas of business of which IT is only one element To mature in SANParks in 2016/17 financial year In the interim, any new IT system implementation is done together with business and

appropriate training for staff members

Audit MattersAudit Matters

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`

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• SANParks obtained an unqualified audit opinion on its AFS for the 2014/15 financial year.

• Two of the strategic objectives as presented in the 2014/15 Annual Performance Plan were qualified.

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The AGSA raised the following compliance matters relating to the AFS;

1.Irregular expenditure of R126 000.2.Fruitless and wasteful expenditure of R2.951m.

Audit Matters - Finance

46

Finding: Irregular expenditure

Action Plan•SANParks SCM division has implemented a management review process to check suppliers on the NT database.


47

Finding: Irregular expenditure cont’dProgress•SCM has successfully cleared the supplier database of all suppliers who were on the NT database of prohibited suppliers.•Furthermore, suppliers are checked against the NT database of prohibited suppliers, prior to processing each purchase order.•Internal Audit performed two SCM audits and no findings of this nature were noted.


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Finding: Fruitless and wasteful expenditureAction plan•Interest on overdue accounts - SANParks staff was trained to follow up suppliers for outstanding invoices.•Penalties by SARS – SANParks undertook to verify tax amendments directly with SARS•Cash embezzlement – SANParks to enhance fraud detection internal controls.•Stock losses – improve general controls over warehouse and fuel station management.


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Finding: Fruitless and wasteful expenditure cont’dProgress - Interest on overdue accounts•SCM has implemented an invoice tracking register as a control measure to ensure adherence to 30 days payment to suppliers, thus avoiding interest charges.•Internal audit conducted two SCM audits and no findings relating to this matter were noted.


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Finding: Fruitless and wasteful expenditure cont’dProgress – Cash embezzlement•Investigations were finalised and proper disciplinary measures, in adherence to the PFMA and SANParks policies, were taken against affected parties. •Existing internal controls were reviewed, root causes identified and additional controls designed to enhance fraud detection controls.


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Finding: Fruitless and wasteful expenditure cont’dProgress - Stock losses•The inventory procedure manual was drafted and approved.•Internal Audit conducted the half yearly stock counts and communicated recommendations.•SANParks is in the process of automating the inventory and fuel systems to improve stock control.


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Finding: Performance against Predetermined Objectives (AOPO)

There were two findings on predetermined objectives, relating to;•non-verifiability of the Black Visitor and; •non measurability of the Rhino Poaching performance indicators.

Audit Matters - AOPO

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Finding: Performance against Predetermined Objectives (AOPO)Progress•Management took the decision to review both performance indicators in the current the APP

The Black Visitors indicator was removed from the current APP. However, due to its importance, management will report statistical trends relating to this indicator in another section of the Annual Report. Also, for the 2016/17 year this is reintroduced in the AOPO and concerns raised by AG addressed through amendments to the Indicator Profile / description


54

Finding: Performance against Predetermined Objectives (AOPO)

Progress•Management took the decision to review both performance indicators in the current the APP

A more suitable performance indicator has been adopted to report on Rhino Poaching incidents.


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Finding: Information Technology Governance

Progress•ICT Strategy – An ICT Steering Committee was established and its terms of reference were approved by EXCO. The ICT Strategy was approved by the Board in January 2016.

Audit Matters - Compliance

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Finding: Non-compliance with regulations

ProgressInformation Security Policy – IT Steering Committee has requested an Information Security Policy to be developed and submitted for approval to EXCO, the Audit & Risk Committee and the Board. Target date for completion is March 2016.


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ProgressBusiness Continuity and Disaster Recovery Plan – The ICT Service Continuity Plan and the ICT Disaster Recovery Plan was approved at EXCO in July 2015. The Corporate Business Continuity Plan, incorporating the ICT Service Continuity and Disaster Recovery plans, is being developed for submission to EXCO in March 2016. Thereafter it will be submitted to the Audit & Risk Committee and the Board for its consideration.


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ProgressUser Account Management Process – User access on the VIP HR Management System was reviewed and the appropriate changes were implemented, limiting access and keeping an audit trail. Ongoing monitoring is in place and any deviations are dealt with immediately.


Thank YouThank You

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Documents

2 nd & 3 rd Quarterly Performance Report, Audit Matters and Financial Position Mr Fundisile Mketeni:…