ANNUAL REPORT 2016/2017 - Provincial Government · Annual Report for 2016/2017 3 PART A ANNUAL REPORT 2016/2017 2016/2017 ANNUAL REPORT REGISTERED NAME: Mpumalanga Tourism and Parks

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Annual Report for 2016/2017 1

PART A: GENERAL INFORMATION

1. PUBLIC ENTITY’S GENERAL INFORMATION

3

2. LIST OF ABBREVIATIONS/ACRONYMS 4

3. STRATEGIC OVERVIEW 6

3.1 Vision 6

3.2 Mission 6

3.3 Values 6

3.4 Strategic Outcome Oriented Goals 6

4. LEGISLATIVE AND OTHER MANDATES 7

5. ORGANISATIONAL STRUCTURE 8

6. FOREWORD BY THE MEC 12

7. OVERVIEW BY THE CHAIRPERSON OF THE BOARD

14

8. OVERVIEW BY THE CHIEF EXECUTIVE OFFICER

16

PART B: PERFORMANCE INFORMATION

1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION

21

2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

22

3. OVERVIEW OF THE PUBLIC ENTITY’S PERFORMANCE

23

3.1 Service Delivery Environment 23

3.2 Organisational Environment 24

3.3 Key Policy Developments and Legislative Changes

25

3.4 Strategic Outcome Oriented Goals 25

4. PERFORMANCE INFORMATION BY PROGRAMME

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4.1 Programme 1: Executive Office 27

4.2 Programme 2: Office of the CFO 37

4.3 Programme 3: Corporate Services 40

4.4 Programme 4: Tourism 44

4.5 Programme 5: Biodiversity Conservation 52

5. SUMMARY OF FINANCIAL INFORMATION 58

5.1 Revenue Collection 58

5.2 Programme Expenditure 58

5.3 Capital Investment, Maintenance and Asset Management Plan

59

5.4 Materiality and Significance Framework 59

PART C: GOVERNANCE

1. INTRODUCTION 63

2. PORTFOLIO COMMITTEES 63

3. EXECUTIVE AUTHORITY 68

4. THE ACCOUNTING AUTHORITY / BOARD 68

5. RISK MANAGEMENT 79

6. INTERNAL CONTROL UNIT 81

7. INTERNAL AUDIT AND AUDIT COMMITTEE

81

8. COMPLIANCE WITH LAWS AND REGULATIONS

84

9. FRAUD AND CORRUPTION 85

10. MINIMISING CONFLICT OF INTEREST 85

11. CODE OF CONDUCT 86

12. HEALTH, SAFETY AND ENVIRONMENTAL ISSUES

86

13. COMPANY SECRETARY / BOARD SECRETARIAT

86

14. SOCIAL RESPONSIBILITY 86

15. AUDIT COMMITTEE REPORT 86

PART D: HUMAN RESOURCE MANAGEMENT

1. INTRODUCTION 89

2. HUMAN RESOURCE OVERSIGHT STATISTICS

91

PART E: FINANCIAL INFORMATION 96

PART F: GROUP ANNUAL FINANCIAL STATEMENTS

166

CONTENTS

Mpumalanga Tourism and Parks Agency 2

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Part A: General Information


PART A


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REGISTERED NAME: Mpumalanga Tourism and Parks Agency

REGISTRATION NUMBERS: Schedule 3C

REGISTERED OFFICE ADDRESS: Samora Machel Drive, Hall’s Gateway, Mataffin, Mbombela, 1200

POSTAL ADDRESS: Private Bag x11338, Mbombela, 1200

TELEPHONE NUMBER/S: 027 13 759 5300/01 (Switchboard)027 13 759 5432 (Reservations)

FAX NUMBER: 027 13 755 3928

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.mpumalanga.comwww.mtpa.co.za

EXTERNAL AUDITORS: The Auditor – General South Africa, P O Box 446, Pretoria, 0001

BANKERS: First National Bank 1 Parkin Street, Pinnacle Building, Ground floor, Mbombela, 1201

Standard BankThe Grove Centre, Corner of R40 and Riverside Road, Mbombela, 1200

COMPANY SECRETARY: Ms. M.P. Hlahane Company Secretary

1. PUBLIC ENTITY’S GENERAL INFORMATION


AFS Annual Financial Statements

ARC Agricultural Research Council

BABSBATOBICBMML

Bio-prospecting and Benefit Sharing Barberton Tourism and Biodiversity CorridorBarberton Makhonjwa Mountain Land

CA Chartered Accountant

CATHSSETA Culture, Arts, Tourism, Hospitality and Sport Sector Education and Training Authority

CEO Chief Executive Officer

CFO Chief Financial Officer

CIA Certified Internal Auditor

CIBTM China Incentive Business Travel and Meetings Exhibition

CITES Convention on International Trade in Endangered Species

CMCCOE

Co-management CommitteeCost of Employment

CPA Communal Property Association

CPE Chrissiesmeer Protected Environment

DARDLEA Department of Agriculture, Rural Development, Land and Environmental Affairs

DCA Damage Causing Animals

DCSSL Department of Community Safety, Security and Liaison

DEA Department of Environmental Affairs

DEDT Department of Economic Development and Tourism

DIRCO Department of International Relations and Cooperation

DMS Destination Marketing System

EE Employment Equity

EIA Environmental Impact Assessment

EPIP Environmental Protection and Infrastructure Programme

EPWP Expanded Public Works Programme

EWT Endangered Wildlife Trust

FILDA Feira International de Luanda

HDI Historically Disadvantaged Individuals

GEF Global Environmental Facility

GIS Geographical Information System

GRAP Generally Recognized Accounting Practice

HED (PG) Higher Education Diploma (Post Graduate)

HOD Head of Department

ICCA International Congress and Convention Association

ICT Information Communication Technology

IKM Information Knowledge Management

IMEX Worldwide Exhibition for Incentives Travel, Meetings and Events

INATUR National Tourism Institute of Mozambique

ITB International Tourisme Borse

IUCN International Union For Conservation Of Nature

2. LIST OF ABBREVIATIONS / ACRONYMS


PART A

KLTKNP

Kruger Lowveld TourismKruger National Park

LED Local Economic Development

LMF Labour Management Forum

MANCOMBCP

Management CommitteeMpumalanga Biodiversity Conservation Plan

MBSP Mpumalanga Biodiversity Sector Plan

MEC Member of the Executive Council

MEGA Mpumalanga Economic Growth Agency

METT Management Effectiveness Tracking Tool

MICEMOA

Meetings, Incentives, Conferences, ExhibitionsMemorandum of Agreement

NDTNEMPANR

National Department of TourismNational Environmental Management Protected Areas ActNature Reserve

NTSS National Tourism Sector Strategy

OHS Occupational Health and Safety

OPCO Operations Committee

PA Protected Area

PAE Protected Area Expansion

PE Protected Environment

PFMA Public Finance Management Act

PMDSPMU

Performance Management Development SystemProject Management Unit

PR Public Relations

RLCC Regional Land Claims Commission

SAPPI South African Pulp and Paper Industry

SAPS South African Police Service

SATSASAWHCC

Southern African Tourism Services AssociationSouth African Wildlife Heritage Convention Committee

SCM Supply Chain Management

SCOPA Standing Committee On Public Accounts

SITE Society of International Travel Executives

SMART Specific, Measureable, Achievable, Relevant, Time-bound

SMME Small Medium Micro Enterprise

SMTFCA Songimvelo-Malolotja Transfrontier Conservation Area

SOPA State of the Province Address

SOP Standard Operating Procedures

TOPSWHSWPS

Threatened or Protected Species World Heritage SiteWildlife Protection Services

WSP Workplace Skills Plan

WTM World Travel Market

2. LIST OF ABBREVIATIONS / ACRONYMScontinued...


3.1 VISION

Mpumalanga a world-class tourism and wildlife economy

3.2 MISSION

Grow tourism and manage bio-diversity to stimulate sustainable economic growth that is inclusive and creates decent employment

3.3 VALUES

The MTPA subscribes to the following core values:

• Productive (results oriented / disciplined / efficient / punctual / cost conscious)• Integrity (ethical / honest / transparent / truthful / accountable / reliable / responsible)• Committed (motivated / dedicated / diligent / passionate)• Teamwork (participative / consultative / collaborative)• Service excellence (responsive / client need driven / approachable / friendly / competitive / time conscious)• Innovative (flexible / creative / adaptable / pro-active / initiative)• Respectful (treating others with respect / dignity / humility / fairness / consistent)• Quality conscious (attention to detail / accuracy / critical mindset / quality focus / preparedness)

3.4 STRATEGIC OUTCOME ORIENTATED GOALS

STRATEGIC OUTCOME ORIENTED GOALS GOAL STATEMENT

1 Sustainable environment Conserve, manage and protect biodiversity and eco-systems in the Province by 2019

2 Sustained economic growth Promote the Province through branding, marketing, invest in tourism infrastructure and product development by 2019

3. STRATEGIC OVERVIEW


PART A

The MTPA was established in terms of the Mpumalanga Tourism and Parks Agency Act of 2005, Act No. 5 of 2005, and listed as a Schedule 3C Public Entity. The entity came into existence on 1 April 2006 following the merger of the now defunct Mpumalanga Parks Board and Mpumalanga Tourism Authority.

Section 3 to the MTPA Act defines the Objects of the Agency as follows:

1. The objects of the Agency shall be to provide for the sustainable management and promotion of tourism and nature conservation in the Province and to ensure the sustainable utilization of natural resources.

2. In pursuing its objects, the Agency shall – (a) Provide for effective management and conservation of biodiversity and ecosystems within the Province;(b) Develop and ensure effective management and market tourism;(c) Foster, promote and sustainably develop and market tourism; and(d) Promote and create socio-economic growth and transformation within the tourism and conservation industry,

thereby creating economic and employment opportunities for previously disadvantaged individuals and local communities in the Province

The following key policy frameworks have been recognised as part of clarifying the legal and legislative mandate of MTPA.

• The Constitution of the Republic of South Africa• The MTPA Act of 2005 • Regulations to the MTPA Act• The White Paper on Biodiversity, (1997)• The Mpumalanga Economic Growth and Development Path • The Mpumalanga Tourism Growth Strategy (MTGS) (2006)• The National Biodiversity Strategy and Action Plan (DEAT 2005)• The National Environmental Management Biodiversity Act (Act 10 of 2004)• The Mpumalanga Biodiversity Conservation Plan (MBCP 2006)• The Mpumalanga Nature Conservation Act (Act 10 of 1998)• The Provincial Growth and Development Strategy (2008)• The National Environmental Management Act (1998)• The National Environmental Management Protected Areas Act (2003)• The White Paper on Promotion and Development of Tourism (1996)• The National Tourism Act (Act 3 0f 2014)• The Mpumalanga Biodiversity Sector Plan Conservation Plan (MBSP 2006)

4. LEGISLATIVE AND OTHER MANDATES


5. ORGANISATIONAL STRUCTURE

MTPA BOARD

CHIEF EXECUTIVE OFFICERVACANT

Mr. VA SIBIYA (Acting)

HEADTOURISM

Mr. JX MTHETHWA

HEAD BIODIVERSITY

CONSERVATIONMr. D. MAHLANGU

(Acting)

HEADCORPORATE SERVICES

VACANTMr. T. LUBANGA (Acting)

CHIEF FINANCIAL OFFICER

Mr. S. MATHYE (Acting)

COMPANY SECRETARYMs. MP HLAHANE

CHIEF OPERATIONS OFFICER

Mr. SE THWALA (Seconded to DEDT)


PART A

MR THULANINZIMA

Chairperson

MS SIJABULILEMAKHATHINIBoard Member

MS NOMASWAZISHABANGU-MNDAWE

Deputy Chairperson

MR SIPHOMTHOMBENIBoard Member

MS THOLAKELENKAMBULE

Board Member

DR DANIELMAGOME

Board Member

MR CHRISTOPHERGOLOLO

Board Member

MR TLOUKEETSE

Board Member

MS NONYANISOMZUZU

Board Member

MS SHEILASEKHITLA

Board Member

MEMBERS OF THE BOARD


AUDIT COMMITTEE

MS PRECIOUS MVULANEChairperson

MS NONYANISOMZUZUMember

MR SAMMTHEMBU

Member

MS SIJABULILEMAKHATHINI

Member


PART AEXECUTIVE MANAGEMENT COMMITTEE

MR ABE SIBIYA Acting

Chief Executive Officer

MR XOLANI MTHETHWA Head: Tourism

MR SIZWE MATHYE Acting

Chief Financial Officer

MS PETUNIA HLAHANE Company Secretary

MR DAN MAHLANGUActing Head: Biodiversity

Conservation

MR THANDUXOLO LUBANGA

Acting Head:Corporate Services


6. FOREWORD BY THE MEC

Mr. S.E. KHOLWANE, MPL

MEC: Finance, Economic Development and Tourism

The performance of the Mpumalanga Tourism and Parks Agency (MTPA) during the 2016/2017 financial year has shown that the Agency is focused in delivering on its mandate to grow tourism and manage biodiversity to stimulate sustainable economic growth that is inclusive and creates decent employment.

Mpumalanga boasts a high level of biological diversity as such Biodiversity Conservation has been identified as a priority and a critical sector that provides services essential to human development.

During the 2016/17 financial year a total of 18 711 hectares were added to the provincial protected areas system by the declaration of four (4) nature reserves on SAPPI owned land and the declaration of the Greater Lakenvlei Protected Environment which will protect one of the most significant wetland systems in the province – the Lakenvlei wetlands located south of Dullstroom.

Furthermore, four (4) new settlement agreements on provincial nature reserves were concluded and seven co-management committees were established to enable the MTPA to improve the management of the nature reserves in conjunction with the new landowners (claimant communities).

The tourism industry in the Province remains one of our most strategic sectors and has the potential to grow our economy and contribute to job creation. This industry is amongst the fastest growing industries in the world.

A number of interventions were put in place during the year under review which amongst others saw seventeen (17) Historically Disadvantaged Individuals (HDIs) integrated in the tourism industry. We have ensured that the SMMEs are exposed to the various marketing platforms to ensure that their products grow further and are of acceptable industry standards.

During the year under review the Agency launched the Mpumalanga Convention Bureau aimed at increasing the


PART A

number of visitors to our province. The convention bureau is directly responsible for bidding for new events and MICE (Meetings, Incentives, Conferences and Exhibitions). The Conventions Bureau although at a small scale continues to provide business tourism support services to industry partners.

We have made progress on the four (4) Blyde tourism flagship projects. A transaction adviser has been appointed to assist with packaging new projects to attract investment for the development of new tourism products. The priority projects such as the Sky Walk, Cable Car and the 5-star Bourke’s Luck hotel have also been registered with the National Treasury for consideration of the public-private partnerships.

One of the challenges that can be highlighted is the Damage Causing Animals (DCA) that escape from the Kruger National Park and other nature reserves. An integrated approach to the handling of DCAs has been formulated and agreed upon between the SANParks, MTPA and Limpopo Province, to ensure a rapid response to the handling of such incidents.

The marketing of the nature reserves remain a priority in order to increase exposure of the nature reserves and attract tourism with the objective of improving occupancy and increasing visitor numbers. The Agency has prioritized the following tourism key areas for the 2018/2019 financial year:

• Focus on domestic and regional Africa• Improve the management of concessions in our protected areas• Develop the marketing strategy with emphasis on digital marketing• Fast track the development of tourism flagship projects• Operate a fully-fledged Mpumalanga Convention Bureau• Focus on the transformation of the tourism industry

We expect the MTPA Board to lead a strong and cooperative partnerships with different stakeholders to achieve all these priorities.

I would like to take this opportunity to appreciate the immense contribution and continued support made by all our stakeholders in the industry. Many thanks to the chairperson and all members of the Board for steering the Agency in the desired governance direction. I would also like to convey my appreciation to the CEO, management and the staff for always providing the necessary support to my office.

Working together we can reclaim a spot amongst the world best tourism destinations and be a revered province on effective management of biodiversity.

Mr. S.E. Kholwane, MPLMEC: Finance, Economic Development and Tourism


7. OVERVIEW BY THE CHAIRPERSON OF THE BOARD

Tourism and Biodiversity Conservation have become the key drivers of the economy with the potential to create job opportunities at various spheres of our communities. The tourism industry is amongst the fastest growing industries in the world. As the custodian of tourism promotion, Mpumalanga Tourism and Parks Agency (MTPA) plays a critical role in marketing Mpumalanga as a destination of choice. Our mission as such is to grow the tourism industry and manage biodiversity with the aim of stimulating sustainable economic growth that is inclusive and creates decent employment.

It is with great pleasure to look back, since this Board was appointed in the last quarter of the 2015/16 financial year, and report on the achievements made during the year under review. Despite many challenges faced by the Agency, as the Board we continue to focus on key priorities that would reposition the Agency and further assist in executing our legislative mandate.

The current budgetary constraints remain a challenge as it limits our ability to execute our legislative mandate to its maximum extent. This therefore results in fewer resources available for Programmes to implement their plans. The Agency however, has prioritized the much - needed infrastructure upgrades in some of our key reserves. Our tourism flagship projects identified in the Blyde River Canyon Nature Reserve are currently underway.

During the year under review the Agency continued to intensify its efforts in making a difference in the tourism and conservation sector. Highlights include participation in the domestic and international consumer and trade shows, leveraging on many events as well as conducting brand activations. Tourism enterprises were developed and given market access through participation in local and international exhibitions with an intent to expose the product offering.

Poaching of endangered fauna and flora remains a challenge within our protected areas. Through joint efforts currently in place between MTPA, SANParks, private sector and social groups, several strict measures were put in place to address these challenges.

The Barberton Makhonjwa Mountains World Heritage Site nomination dossier was submitted to UNESCO through the Department of Environmental Affairs (DEA). This has the potential to positively change the economic landscape of the province.

Mr. THULANI NZIMA

Chairperson of the MTPA Board


PART A

The Board has put together a five - year plan that outlines priorities such as improving administration through proper ICT systems; diversification of the product base to improve revenue; development of strategies to improve destination marketing; building organizational culture and improving stakeholder relations, amongst others.

The Board continues to prioritize a positive final audit performance report with the aim of achieving a clean audit and a significant improvement has already been noticed in this regard. The Board is committed to ensuring that the Agency addresses the findings in the audit report and further works towards acceptable outcomes in the future.

The Provincial moratorium in filling vacancies has no doubt had an impact on the Agency’s ability to fill in key strategic positions. However, with the co-operation of the Shareholder, (the MEC for Finance, Economic Development and Tourism) Mr. S.E. Kholwane, we have started addressing this matter with earnest. This, notwithstanding, the Agency has largely been successful in delivering on its APP during the year under review.

Working together with the Executive Management we are committed to ensure that we improve on the partnerships in place and enhance our relations with the local communities as well as both the tourism and conservation industries. This will assist us to achieve our planned targets and further position Mpumalanga as a destination of choice.

On behalf of the Board of MTPA, I would like to thank the Portfolio Committee, SCOPA, Honourable MEC for Finance, Economic Development and Tourism, Mr. S.E Kholwane (MPL), for their continued support and guidance.

I would also like to extend our sincere gratitude to the Audit Committee for assisting the Board with its oversight responsibility during the year under review. Further gratitude goes to the Executive Management and staff of MTPA for carrying forth the Agency’s mandate.

___________________________________Mr. T.J. NzimaChairperson of the MTPA Board


8. OVERVIEW BY THE CHIEF EXECUTIVE OFFICER

The year under review was an exciting period on many fronts. A new permanent Board was appointed in March 2016 and a reasonable amount of stability was achieved at that level. Much more attention was given to pertinent challenges of the time, and significant progress has been made to date. Despite a decline in real terms, the entity has had asatisfactory level of performance and achieved on key strategic deliverables.

Tourism remains the most important economic sector in South Africa poised to create more sustainable jobs than both mining and agriculture in the next few years. The tourism industry has remained resilient during the year under review, contributing over 10 million foreign arrivals to the country. In 2016 tourism contributed an estimated R102 billion in the South African economy, this is 11.1% more than the R91.8 billion contributed in 2015.

Revenue from domestic tourism increased by 12% to a record R26.5 billion in 2016 compared to R23.6 billion in 2015. The Mpumalanga province received an increased number of foreign tourists at 1 427 795 in 2016 when compared to 1 300 271 in 2015. These tourists contributed an amount of R4, 7 billion to the provincial economy.

However, on the domestic front, tourism in South Africa accounted for 24.3 million trips in 2016 and has decreased by 0. 7% when compared to 24.5 million trips in 2015. The decrease in domestic trips was largely driven by the decrease in trips taken for the purposes of visiting friends and relatives. The province saw a decline of domestic trips in the year under review from 2 156 000 in 2015 to 1 658 000 in 2016. The tough economic conditions were cited as the main reason for the domestic visitors not to travel to the province.

The agency continued to market the province as a world class tourism destination in various trade and consumer shows around the globe. During the year under review, the province was showcased at some of the key platforms including the annual tourism lndaba in Durban, the SAT UK School roadshow in four cities in the UK, the IMEX in Frankfurt and the IBTM in Barcelona. We also participated in the regional trade shows in Swaziland and Mozambique. A number of domestic trade workshops were also conducted in Cape Town, Johannesburg and Pretoria. The Mpumalanga Convention Bureau, located within the MTPA, was launched in 2016.

Mr. ABE SIBIYA

Acting Chief Executive Officer


PART A

During the period under review, we continued our ongoing efforts in facilitating the effective training of emerging entrepreneurs active in tourism and tourism-related business activities. Our interventions provided an enabling environment for skills transfer and knowledge sharing. We also offered a vital advisory service for the benefit of newcomers to the tourism environment in order to drive the transformation agenda.

An allocation of R18 million was made available by the Province for the upgrade of certain tourism infrastructure at the Blyde Canyon and Manyeleti Nature Reserves. As a result significant improvements were made on view sites and accommodation facilities. New infrastructure includes a modern day visitor facility and caravan camping site at Manyeleti.

Further, the once famous Blyde hiking trails were resuscitated. This new infrastructure will result in increased revenue for the MTP A.

Given the value of its asset base, the MTPA is under constant pressure to increase its revenue generation. The enabling legislation also empowers the entity to initiate commercial transactions that can assist in improving its revenue generation. In this regard, the MTPA has established a Commercial Operations Unit that will solely focus on this aspect. Appropriate guidelines have been established to ensure proper governance in these activities, taking into account ecological limits within which development is desirable. Particular attention has been given to the management of current concessions on certain nature reserves. A number of these concession agreements have been inherited from previous administrations and Limpopo Province, and therefore, do not necessarily comply with current Public Private Partnership principles. Others have been a subject of unresolved disputes. A regularization process is underway to clear all disputes and align agreements with current principles, and to develop the capacity required for concession management. The success of this intervention was realised in the recovery of some top up concession fees amounting to over R3 million.

This renewed business-like approach has resulted in a number of opportunities identified in the reserves. Total revenue grew from R29,8m in 2015/2016 to R37,9m in 2016/2017, representing an increase of 29% year on year.

The MTPA continues to collaborate with claimant communities in the management of nature reserves which are subject to restitution claims. A number of settlement and comanagement agreements are in place to enable the management of the protected areas within the government established frameworks. These frameworks provide for a collaborative management approach aimed at the beneficiation of claimant communities. It must be acknowledged, however that while there are a few challenges related to the resolution of claims on protected areas, this is not unique to the MTPA. We continue to learn through this process.

The stewardship programme is a national initiative aimed at expanding the area under conservation. The programme allows private/communal land to be declared as a protected environment and prohibits extensive exploitation in favor of sustainable development approaches. During the reporting period, a total of 18, 711 ha of land was secured under this programme.

As part of the transformation initiatives within the biodiversity conservation industry, the MTPA has identified a number of projects aimed at encouraging black South Africans to participate in the wildlife industry. These initiatives include sable breeding, hunting and game donation to communities who have acquired land. The necessary feasibility studies are under way and project implementation should start during 2017/2018.


For the third consecutive year Mpumalanga has seen another decline in rhino poaching incidents. During the past year the province has lost 32 animals compared to 67 and 83 during 2015 and 2014 years respectively. This decline is mostly attributed to extensive collaborative efforts with other state and private entities. Furthers steps will be taken to better equip our ranger corps against this onslaught.

The audit outcomes of the year under review suggest that much more work needs to be done to improve performance. Appropriate action plans have been developed in order to deal with the audit findings. In addition, the entity is involved in a few matters pertaining to litigation. The MTPA has obtained legal advice, which indicates that in most, the prospects of success are good.

Finally, I would like to express my warm appreciation to the Honorable MEC for Finance, Economic Development and Tourism as well as the Head of Department for Economic development and Tourism for their support.

I would also like to thank the Board and its Committees for their support and guidance, the Executive team and all staff for their dedication and support.

_______________________________ Mr. V.A Sibiya Acting Chief Executive Officer

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Hall’s GatewayN4 National Road

Mataffin, Mbombela, 1200

Private Bag X11338Mbombela, 1200

Tel: +27 13 759 5300Fax: +27 13 752 4186

Reservations:+27 13 79 5432Email: [email protected]

www.mpumalanga.com

PR: 192/2017 ISBN: 978-0-621-45579-3

Title of Publications: Mpumalanga Tourism and Parks Agency

Annual Report for 2016/2017


PART A

Nokuthula Simelane Statue


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Part B: Performance Information


PART B


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Statement of Responsibility for Performance Information for the year ended 31 March 2017

The Chief Executive Officer is responsible for the preparation of the Public Entity’s performance information and for the judgement made in this information.

The Chief Executive Officer is responsible for establishing and implementing a system of internal control designed to provide reasonable assurance as to the integrity and reliability of performance information.

In my opinion, the performance information fairly reflects the actual achievements against planned objectives, indicators and targets as per the strategic and annual performance plan of the public entity for the financial year ended 31 March 2017.

The Mpumalanga Tourism and Parks Agency’s performance information for the year ended 31 March 2017 have been examined by the external auditors and their report is presented on page 109.

The performance information of the entity set out on page 27 to page 57 was approved by the Board.

_______________________________ ______________________________Mr. V.A Sibiya Mr. T.J. Nzima Acting Chief Executive Officer Chairperson of the MTPA BoardDate Date

1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION


The Auditor General South Africa currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.

Refer to page 109 of the report of the Auditor’s Report, published as Part E: Financial Information.

2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES


PART B3. OVERVIEW OF THE PUBLIC

ENTITY’S PERFORMANCE

3.1 SERVICE DELIVERY ENVIRONMENT

Mpumalanga Tourism and Parks Agency, as the custodian of tourism promotion in the Province, plays a pivotal role in marketing Mpumalanga as a world-class tourism and wildlife economy. Tourism and Biodiversity Conservation are the back bone of the provincial economy and it is in this context that the Agency contributes towards service delivery within the Tourism and Conservation sectors.

TOURISM

The Tourism Programme is tasked to conduct generic marketing both domestically and internationally for purposes of increasing tourist arrivals. The Programme also facilitates tourism product development in the Province. Furthermore the programme conducts registration of tourism amenities. During the year under review, the Programme profiled the destination through domestic and international consumer and trade shows, leveraged on events and launched the Mpumalanga Convention Bureau which will assist the entity to bid for meetings, incentives, conferences and events to be hosted in the province. To enhance the image of the destination and assist tourists with information, several marketing material was distributed through the Agency’s information service offices. SMME’s were developed and given marketing access through facilitation of attendance to exhibitions and provision of business advice. The Programme also facilitated the development of tourism products, e.g. Liberation Heritage route and investment opportunities including those in the Agency’s conservation areas. It is further required by the MTPA Act to maintain an up-to-date tourism business database within the Province and register certain people who are rendering tourism products/services. The Agency has maintained and registered tourism businesses/individually on the database.

MANAGEMENT AND CONSERVATION OF BIODIVERSITY AND ECO-SYSTEMS

Management effectiveness of the provincial nature reserves has improved during the 2016/17 financial year, largely attributable to the fact that significant investments have been made on infrastructure improvements and upgrades on the nature reserves and the completion of management plans for various reserves. The 2016/2017 final assessments made a downslide dive to an assessment score of 43%.

Land claims on the provincial nature reserves, however remain a challenge as the expectations of communities for jobs and development within the nature reserves remains high and it is difficult to meet these expectations. The entity maintains 3 setttement agreements in the provincial nature reserves, and additional 4 agreements where co-managament agreements have been concluded. The co-management agreements put in place the rules and modus operandi for the MTPA to manage the nature reserves in conjunction with claimant communities.

Rhino poaching continues to be a major challenge for the MTPA. 29 rhinos were lost to poaching within Mpumalanga Province compared to 67 lost in the previous finanacial year. This is a 57% reduction. The achievements were attributed to the integrated strategic interventions with the KNP, the bordering Private Nature Reserves, Intelligence Working Group on Illegal Wildlife Trade (IWG), coordinated by the National Intelligence Coordination Committee (NICOC).

INFRASTRUCTURE UPGRADE AND MAINTENANCE

A special budget allocation of R18 million was provided by the shareholder for capital infrastructure upgrades in Blyde River Canyon and Manyleleti nature reserves. The project delivarables at the Blyde River Canyon includes


bulk water supply at view sites, upgrading of ablution facilities, tourist accommodation and curio sales stalls whereas the deliverables for Manyeleti nature reserve include construction of a new Caravan Park and Day Visitor’s Facility. The project deliverables are at different stages of completion and will be completed in the second quarter of 2017-2018. Twelve (12) local contractors and 53 local workers from surrounding communities are benefitting from the infrastructure upgrades.

Department of Environmental Affairs (DEA) funded Projects in MTPA reserves. The year under review saw DEA commencing with project implementation in Andover, Loskop and Manyeleti nature reserves as part of the R315 million DEA funded projects in MTPA reserves.

The following are project delivarables at the nature reserves where work is in progress:

• Upgrades on roads infrastructure• Upgrades on staff houses• Upgrades on office complexes• Upgrades on tourism facilities• Installation of fence• Bulk services

At Manyeleti and Loskop Dam nature reserves substantial upgrades to existing infrastructure and the construction of new buildings are in progress.

The MTPA continued to contribute to the implementation of Outcome 4 (Decent employment through inclusive economic growth) and Outcome 10 (Environment assets and natural resources protected and enhanced) service delivery agreements.

3.2 ORGANISATIONAL ENVIRONMENT

The Agency has not been successful in the filling of critical positions that have been vacant for the previous financial years and those that have just been vacated as a result of natural attrition because of a government moratorium on the filling of vacant positions and budget constraints. However the entity has prioritised and made budget provision for certain critical positions for the year 2017-2018.

In the meantime the intervention by DEDT to seconding officials to assist in areas of Corporate Services, Monitoring and Evaluation and Supply Chain Management is making a significant impact.

3. OVERVIEW OF THE PUBLIC ENTITY’S PERFORMANCEcontinued...


PART B3. OVERVIEW OF THE PUBLIC

ENTITY’S PERFORMANCEcontinued...

Programmes and Sub-programmes are as follows for the 2016/2017 financial year:

PROGRAMME SUB-PROGRAMMEEXECUTIVE OFFICE • Office of the CEO

• Project Management Unit• Board Secretariat• Communication and Public Relations• Risk Management and Internal Audit• Planning and Coordination• Monitoring and Evaluation • Security Management• Zithabiseni Resort and Conference Centre

OFFICE OF THE CFO • Financial and Management Accounting • Supply Chain Management• Asset Management

CORPORATE SERVICES • Human Resources• Legal Services• Information Communication Technology, Management and Systems

TOURISM • Tourism Development• Tourism Marketing• Tourism Registration

BIODIVERSITY CONSERVATION • Protected Areas and Development• Biodiversity Support Services• Conservation Services• Biodiversity Policy and Compliance

3.3 KEY POLICY DEVELOPMENT AND LEGISLATIVE CHANGES

The entity took over the transfer of government grant to Zithabiseni Confernce Centre and Resort

3.4 STRATEGIC OUTCOME ORIENTED GOALS

The following progress was made towards the achievement of the Strategic Goals:

STRATEGIC GOAL 1: SUSTAINABLE ENVIRONMENT

Protected areas achieved 43% on Management Effectiveness Tracking Tool (METT) assessment towards the effective management of protected areas against the set target of 75%. The poor infrastructure conditions in the reserves amongst contributed to the assessment score being low.

Wildlife crimes remain a challenge in the nature reserves as well as in the province, a total of 29 rhinos were poached in Mpumalanga Province, of the 29 poached 7 were in MTPA protected areas (Manyeleti Nature Reserve in particular) and 22 in private nature reserves leading to a total of 69 arrests and 42 weapons recovered. On the other hand, cycad poaching was also not spared. 30 E middelburgesis of different sizes and age have been illegally harvested leading to 3 suspects arrested. During the middle of 2016 pangolin cases were a major issue and 6 cases were registered in which 16 arrests were made. A total of 6 live pangolin were released during the investigative process. Pangolin is an international burning issue and was discussed at length at the 2016 CITES COP meeting.


In fulfilling the Protected Areas Expansion Programme, the agency has received and facilitated 7 stewardship applications with a total of 30 683 hectares of land with the intention to declare as protected environment.

Permit administrationThe entity attended to 5074 general permit applications against the 4000 planned annual target 1074 additional permits issued than planned.

EnforcementThe entity attended to 36 criminal enforcement actions and 193 administrative enforcement actions.

Sale of gameThe entity sold 53 buffalo in the Loskop Dam Nature Reserve. This activity is part of the corridor positive buffalo disposal programme from Loskop Dam Nature Reserve. There is still a sizeble population that still needs to be removed before the quarantine programme resumes, 16 disease free buffalo have been relocated from Nooitgedacht Dam Nature Reserve to Ohrigstad Dam Nature Reserve.

Environmental educationThe entity reached 142 842 learners against the annual target of 200 000 learners through several conservation education programmes. The under achievement is 57 158

STRATEGIC GOAL 2: SUSTAINED ECONOMIC GROWTH

Various marketing activities were undertaken to promote Mpumalanga as a tourist destination and to increase the tourist numbers to the Province. The marketing activities included:

• Exhibited at Tourism Indaba 2016 in Durban• Revised and printed a tourist map• Replenished the Best of Mpumalanga• Conducted 3 seasonal domestic marketing campaigns• Participated at Mozambique International Trade Fair • Exhibited at Swaziland International Travel Fair• Attended the client/supplier workshop in Lusaka, Zambia• Participated at SA Tourism UK school trade roadshow (United Kingdom)• Exhibited at World Wide Exhibition for Incentive Travel, Meetings and Events MICE tradeshow (Germany)• Exhibited at Global Meetings and Incentive Exhibition (Spain)• Hosted Zambian Tour Operators on a familiarization trip• Leveraged on 2 Signature Events namely: Mbombela Beach Festival and Mpumalanga Cultural Experience• Launched the Mpumalanga Conventions Bureau

3. OVERVIEW OF THE PUBLIC ENTITY’S PERFORMANCEcontinued...


PART B4. PERFORMANCE INFORMATION

BY PROGRAMME

4.1 PROGRAMME 1: EXECUTIVE OFFICE

PurposeTo oversee specialist functions within the Executive Office

Sub-programmes• Office of the CEO• Project Management Unit• Board Secretariat• Communications and Public Relations• Risk Management and Internal Audit• Planning and Coordination• Monitoring and Evaluation • Security Management• Zithabiseni Resort and Conference Centre

Strategic objectives• To manage and improve stakeholder relationships• To improve governance and compliance• Improve financial performance

STRATEGIC OBJECTIVES, PERFORMANCE INDICATORS, PLANNED TARGETS AND ACTUAL ACHIEVEMENTS

STRATEGIC OBJECTIVES

PROGRAMME 1: EXECUTIVE OFFICE

STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016

PLANNED TARGETS 2016/17

ACTUAL ACHIEVEMENTS

2016/2017

DEVIATIONS FROM PLANNED

TARGETS TO ACTUAL

ACHIEVEMENTS FOR 2016/2017

COMMENTS ON DEVIATIONS

To manage and improve stakeholder relationships

Provided integrated communication services through PR and Media support

Provide integrated communication services through PR and Media support by 31 March 2017


None Not applicable



STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



To improve governance and compliance

1 Risk Register developed

Approved Enterprise Risk Management register by 31 April 2016

Approved Enterprise Risk Management register

None Not applicable

The Annual Strategic Plan was reviewed in September 2015

Review and submit Annual Strategic Plan and Annual Performance Plan to the shareholder by 30 September 2016

Annual Strategic Plan and Annual Performance Plan reviewed and submitted to the shareholder

None Not applicable

Consolidated the Annual Report for 2014/2015 and submitted to the shareholder

Consolidate and submit 1 Annual Report to the shareholder by 31 August 2016

1 Annual Report consolidated and submitted to the shareholder

None Not applicable

9 Audit reports submitted to the Board and 1 external (AG) report for 2014/2015 financial year

Obtain an unqualified audit opinion by 31 March 2017

Obtain an qualified audit opinion

Basis of qualification is property, plant and equipment as well as other income

Selected infrastructure could not be traced to the asset register. Incompleteness of revenue due to inadequate contract management (concessions)

4. PERFORMANCE INFORMATION BY PROGRAMMEcontinued...



BY PROGRAMMEcontinued...


STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Improve financial performance

Completed Projects at Head Office:Upgraded the Server Room, installed and commissioned a 550Kw standby generator, installed 57 new airconditioning units, constructed a new perimeter fence Mkhombo Dam Nature Reserve Project:Construction of 12 new staff houses at Mkhombo Dam is 70% completeSS Skosana:The main communal ablution building servicing the chalets at the CN Mahlangu Lodge was refurbished

Maintain and upgrade 7 capital infrastructure projects at Blyde nature reserve, namely:1. Rehabilitation

of Belvedere Guest House Complex

2. Upgrading of Bulk Services at all view sites

3. Installation of access control and revenue collection system at all view sites

4. Upgrading of curio stalls at Three Rondawels

5. Upgrading of curio stalls at God’s window

6. Upgrading trails huts

7. Development and procurement of visitor management system by 31 March 2017

1. Rehabilitation of Belvedere Guest House Complex in progress

2. Upgrading of bulk services is in progress at Bourke’s Luck and Three Rondavels

3. Demolition of old structures at Three Rondawels completed and commenced with construction of foundations

4. Construction of paypoint completed, 3 curio stalls completed and additional 3 in progress at God’s Window

5. Upgrading of trails huts in progress

6. Installation of access control and revenue collection system at all view sites not commenced

7. Visitor management system not procured

Maintainance and upgrading of 7 capital infrastructure projects at Blyde nature reserve not completed

Construction phase behind schedule due to extended engagement with claimant communities, floods and service providers declining offers



STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL




Completed Projects at Head Office:Upgraded the Server Room, installed and commissioned a 550Kw standby generator, installed 57 new airconditioning units, constructed a new perimeter fence Mkhombo Dam Nature Reserve Project:Construction of 12 new staff houses at Mkhombo Dam is 70% CompleteSS Skosana:The main communal ablution building servicing the chalets at the CN Mahlangu Lodge was refurbished

Maintain and upgrade 4 capital infrastructure projects at Manyeleti nature reserve, namely:1. Construction

of a new day visitor facility

2. Construction of new camping and caravan facility

3. Access control and revenue collection system

4. Development and implementation of new tourism products by 31 March 2017

1. New day visitor facility: Fencing of the site completed, road networks completed, construction of a swimming pool, ablution facility and hall in progress

2. New camping and caravan facility: Road network, ablution facility, braai stand, drainage system complete, electrification and plumbing in progress

3. Access control and revenue collection system not commenced

4. Development and implementation of new tourism products completed

Maintainance and upgrading of 4 capital infrastructure projects at Manyeleti nature reserve not completed

Construction phase behind schedule due to extended engagement with claimant communities regarding labour rates





KEY PERFORMANCE INDICATORS, PLANNED TARGETS AND ACTUAL ACHIEVEMENTS

SUB-PROGRAMME: COMMUNICATIONS AND PUBLIC RELATIONSPURPOSE: PUBLIC RELATIONS AND MEDIA LIAISON

SUB PROGRAMME PERFORMANCE

INDICATORS

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Integrated communication services provided through PR and media support


Provide integrated communication services through PR and Media support by 31 March 2017


None Not applicable


SUB-PROGRAMME: RISK MANAGEMENT AND INTERNAL AUDITPURPOSE: RISK MANAGEMENT AND MONITORING AND TO CONDUCT INTERNAL AND OTHER AUDITS


INDICATORS

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Approved Enterprise Risk Management

1 Risk Register developed

Approved Enterprise Risk Management risk register by 31 April 2016

Approved Enterprise Risk Management risk register

None Not applicable

Obtain unqualified audit opinion

9 Audit reports submitted to the Board and 1 external (AG) report for 2014/2015 financial year

Obtain an unqualified audit opinion by 31 March 2017

Obtain an qualified audit opinion

Basis of qualification is property, plant and equipment as well as other income

Selected infrastructure could not be traced to the asset register. Incompleteness of revenue due to inadequate contract management (concessions)



SUB-PROGRAMME: PLANNING AND COORDINATIONPURPOSE: PROVISION OF PLANNING AND COORDINATION SERVICES


INDICATORS

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



The number of Annual Strategic Plans (ASP) and Annual Performance Plans (APP) submitted to the shareholder as per legislative prescripts

The Annual Strategic Plan was reviewed in September 2015

Review and submit Annual Strategic Plan and Annual Performance Plan to the shareholder by 30 September 2016

Annual Strategic Plan and Annual Performance Plan reviewed and submitted to the shareholder

None Not applicable

The number of Annual Reports consolidated and submitted as per legislative prescripts

Consolidated the Annual Report for 2014/2015 and submitted to the shareholder

Consolidate and submit 1 Annual Report to the shareholder by 31 August 2016

1 Annual Report consolidated and submitted to the shareholder

None Not applicable






SUB-PROGRAMME: PROJECT MANAGEMENTPURPOSE: THE MANAGEMENT OF MTPA AND PARTNERSHIP FUNDED PROJECTS AND THE ALIGNMENT OF THESE PROJECTS WITH THE IDPS AT DISTRICT MUNICIPALITIES


INDICATORS

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



The number of capital infrastructure projects completed at Blyde nature reserve within the approved time period, budget and project plans

Completed Projects at Head Office:Upgraded the Server Room, installed and commissioned a 550Kw standby generator, installed 57 new airconditioning units, constructed a new perimeter fence Mkhombo Dam Nature Reserve Project:Construction of a 12 new staff houses at Mkhombo Dam is 70% completeSS Skosana:The main communal ablution building servicing the chalets at the CN Mahlangu Lodge was refurbished

Maintain and upgrade 7 capital infrastructure projects at Blyde nature reserve, namely:1. Rehabilitation

of Belvedere Guest House Complex

2. Upgrading of Bulk Services at all view sites

3. Installation of access control and revenue collection system at all view sites

4. Upgrading of curio stalls at Three Rondawels

5. Upgrading of curio stalls at God’s window

6. Upgrading trails huts

7. Development and procurement of visitor management system by 31 March 2017

1. Rehabilitation of Belvedere Guest House Complex in progress

2. Upgrading of bulk services is in progress at Bourke’s Luck Potholes and Three Rondavels

3. Demolition of old structures at Three Rondawels completed and commenced with construction of foundations

4. Construction of paypoint completed, 3 curio stalls completed and additional 3 in progress at God’s Window

5. Upgrading of trails huts in progress

6. Installation of access control and revenue collection system at all view sites not commenced

7. Visitor management system not procured


Construction phase behind schedule due to extended engagement with claimant communities and floods, service providers declining offers


SUB-PROGRAMME: PROJECT MANAGEMENTPURPOSE: THE MANAGEMENT OF MTPA AND PARTNERSHIP FUNDED PROJECTS AND THE ALIGNMENT OF THESE PROJECTS WITH THE IDPS AT DISTRICT MUNICIPALITIES


INDICATORS

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



The number of capital infrastructure projects completed at Manyeleti nature reserve within the approved time period, budget and project plans

Completed Projects at Head Office:Upgraded the Server Room, installed and commissioned a 550Kw standby generator, installed 57 new airconditioning units, constructed a new perimeter fence Mkhombo Dam Nature Reserve Project:Construction of a 12 new staff houses at Mkhombo Dam is 70% completeSS Skosana:The main communal ablution building servicing the chalets at the CN Mahlangu Lodge was refurbished

Maintain and upgrade 4 capital infrastructure projects at Manyeleti nature reserve, namely:1. Construction

of a new day visitor facility

2. Construction of new camping and caravan facility

3. Access control and revenue collection system

4. Development and implementation of new tourism products by 31 March 2017

1. New day visitor facility: Fencing of the site completed, road networks completed, construction of a swimming pool, ablution facility and hall in progress

2. New camping and caravan facility: Road network, ablution facility, braai stand, drainage system complete, electrification and plumbing in progress

3. Access control and revenue collection system not commenced

4. Development and implementation of new tourism products completed


Construction phase behind schedule due to extended engagement with claimant communities regarding labour rates





STRATEGY TO OVERCOME AREAS OF UNDERPERFORMANCE

AREA OF UNDER PERFORMANCE STRATEGY TO OVERCOME AREAS OF UNDER PERFORMANCE

Obtained qualified audit opinion Develop action plan to implement recommendations by the AG. Prepare half year financial statrements and conduct dashboard audit


Appointed contractors for all construction site in order to accelerate the construction and complete the projects by 31 June 2017


Appointed contractors for all construction sites in order to accelerate the construction and complete the projects by 31 June 2017

LINKING PERFORMANCE WITH BUDGET

SUB-PROGRAMME

2016/ 2017 2015/ 2016COMMENTS ON

THE (OVER)/UNDER-

EXPENDITURE

BUDGETR’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER EX-PENDITURE

R’000

BUDGET R’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

Office of the CEO 4 114 4 083 31 4 780 7 566 (2 785) Board Secretariat 3 767 4 516 (748) 4 389 4 513 (124)

Special meetings attended

Project Management 27 283 18 052 9 231 9 872 9 506 366

Extensive consultations with the Communal Property Associations (CPA’s) who are representatives of the claimant communities regarding the implementation models to be used, refusal to accept appointed local contractors and floods after the Cyclone Dineo delayed the actual construction phase

Communication and Public Relations 2 077 1 955 123 2 999 2 295 704

Cost containment applied to external media broadcasting

Risk Management and Internal Audit 6 021 5 416 604 4 289 6 770 (2 481)

Adhoc engagements assigned to the Internal Auditors


SUB-PROGRAMME

2016/ 2017 2015/ 2016COMMENTS ON

THE (OVER)/UNDER-

EXPENDITURE

BUDGETR’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER EX-PENDITURE

R’000

BUDGET R’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

Planning and Coordination 1 592 1 751 (159) 1 931 1 880 51

Salary increase negotiated higher than estimated

Monitoring and Evaluation 1 261 1 264 (3) 1 004 1 149 (145)

EPIP 0 0 0 4 000 2 451 1 549No transactions in 2016/17

Security Management 6 852 7 375 (523) 4 719 5 777 (1 058)

Additional workforce demand and new contracts negotiated at higher rates than estimated

EPWP 2 911 2 912 (1) 2 538 2 535 3 Zithabiseni Resort 21 510 21 510 0 0 0 0 Total Approved Budget 77 389 68 835 8 555 40 521 44 442 (3 921)

Joint Project Conservation expenses 5 682 5 682 0 3 864 3 864 0

Expenses incurred are off-set by Partnership funding received and recorded in Sundry Income

Ringfenced projects 10 10 0 4 081 4 081 0

Relates to money received in prior year of which expenditure only incurred in the current year

Total after Joint Project Conservation and Ringfenced expenses 83 081 74 527 8 555 48 466 52 387 (3 921)



PART B

4.2 PROGRAMME 2: OFFICE OF THE CFO

PurposeFinancial Services

Sub-programmesThe Office of the CFO Programme comprises of the following sub-programmes:• Financial and Management Accounting• Supply Chain Management• Asset Management

Strategic objectives• Improve financial performance



PROGRAMME 2: OFFICE OF THE CFO

STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL




Generated R31,2 million own revenue by 31 March 2016 including R5,1 million income from Partnerships

Increase revenue collection to R35 million by 31 March 2017

Revenue collection increased to R37,9 million

Collected R3,8 million more revenue

The entity did top-ups on concession agreements


continued...



SUB-PROGRAMME: FINANCIAL AND MANAGEMENT ACCOUNTINGPURPOSE: FINANCIAL AND ACCOUNTING SERVICES

SUB PROGRAMME

PERFORMANCE INDICATORS

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



The number of financial management reports compiled and submitted

Compiled 4 Financial Management Reports and submitted to applicable Board Committees as per Committee dates

Compile 4 Financial Management reports and submit to the Board by 31 March 2017

Compiled and submitted 4 Financial Management reports to the Board

None Not applicable


Generated R31,2 million own revenue by 31 March 2016 including R5,1 million income from Partnerships


Revenue collection increased to R37,9 million

Collected R3,8 million more revenue

The entity did top-ups on concession agreements

SUB-PROGRAMME: SUPPLY CHAIN MANAGEMENTPURPOSE: PROCUREMENT

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



The number of SCM reports compiled and submitted

Compiled 4 Supply Chain Management reports and submitted to applicable Board Committees

Compile 4 Supply Chain Management reports and submit to the Board by March 2017

Compiled and submtted 4 Supply Chain Management reports to the Board

None Not applicable







None Not applicable


SUB-PROGRAMME

2016/ 2017 2015/ 2016COMMENTS

ON THE (OVER)/UNDER-

EXPENDITURE

BUDGETR’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

BUDGET R’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

CFO 1 632 2 355 (723) 1 606 2 076 (470)

Payment of additional workforce in Acting CFO position, due to instability

Financial and Management Accounting 12 348 8 402 3 946 4 555 4 899 (344)

Higher than expected salary increases resulted in cost containment in this sub-programme to avoid overspending by the entity as a whole

Supply Chain Management 7 001 7 228 (227) 23 640 19 555 4 086

Increased printing cost on rental equipment

Asset Management 8 127 8 431 (304) 7 934 7 546 388

Additional expenses incurred in relation of valuation of Heritage Assets

Total Approved Budget 29 108 26 416 2 692 37 735 34 076 3 660


4.3 PROGRAMME 3: CORPORATE SERVICES

PurposeTo provide effective and efficient management and business support

Sub-programmes• Human Resources• Legal Services• Information Communications Technology, Management and Systems

Strategic objectives• To provide strategic leadership, admnistrative and management support to the MTPA• To improve governance and compliance• Improve organisational performance



PROGRAMME 3: CORPORATE SERVICES

STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



To provide strategic leadership, admnistrative and management support to the MTPA

Integrated administrative and management support to the MTPA provided

Provide integrated administrative and management support within the MTPA by 31 March 2017

Provided integrated administrative and management support within the MTPA

None Not applicable

To improve governance and compliance

Provided and maintained ICT hardware and software as per the annual ICT plan and time frames as stipulated in the plan

ICT Governance Framework approved and implemented by 31 March 2017

Draft ICT Governance Framework developed

ICT Governance Framework not approved

ICT Governance Framework was subsequently approved in the first quarter of 2017/2018

4 HR policies developed and implemented

4 Human Resources policies developed/reviewed and approved by 31 March 2017

3 Human Resources policies developed/reviewed and approved

1 Human Resources policy not finalised

Delay in consultation process. Policies still to be subjected to consultation processes.



PART B

PROGRAMME 3: CORPORATE SERVICES

STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Improve organisational performance

Not assessed Approved and implemented Human Resource Plan by 31 March 2017

Draft Human Resources Plan developed

Human Resources Plan not approved

Human Resources Plan still due to further scrutiny by the Agency’s internal Auditors


SUB-PROGRAMME: HUMAN RESOURCES PURPOSE: HUMAN RESOURCE SUPPORT SERVICES

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Approved Human Resource Plan

Not assessed Approved and implemented Human Resource Plan by 31 March 2017

Draft Human Resources Plan developed

Human Resources Plan not approved

Human Resources Plan still due for further scrutiny by the Agency’s internal Auditors. The plan will be approved in the first quarter of 2017/2018

Number of HR policies developed/reviewed and approved

4 HR policies developed and implemented

4 Human Resources policies developed/reviewed and approved by 31 March 2017

3 Human Resources policies developed/reviewed and approved

1 Human Resources policy not finalised

Delays in consultation process. Policies still to be subjected to consultation processes

Number of reports on the implementation of Workplace Skills Plan (WSP)

Provided 4 training reports on the implementation of the Workplace Skills Plan (WSP) and provided the Annual Training Report (ATR)

4 reports on implementation of the Workplace Skills Plan by 31 March 2017

4 reports on the implementation of the Workplace Skills Plan

None Not applicable


continued...


SUB-PROGRAMME: INFORMATION COMMUNICATION TECHNOLOGY, MANAGEMENT AND SYSTEMSPURPOSE: INFORMATION COMMUNICATION TECHNOLOGY SYSTEMS AND SUPPORT, INFORMATION MANAGEMENT, INFORMATION INTEGRATION AND INSTITUTIONAL MEMORY

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Approved ICT Governance Framework

Provided and maintained ICT hardware and software as per the annual ICT plan and time frames as stipulated in the plan

ICT Governance Framework approved and implemented by 31 March 2017

Draft ICT Governance Framework developed

ICT Governance Framework not approved

ICT Governance Framework was subsequently approved in the first quarter of 2017-2018



Human Resource Plan not approved, the plan is in a draft format

Draft HR Plan to be subjected to further scrutiny by the Internal Auditors and therafter presented to the Board for approval

3 of 4 Human Resources policies developed/reviewed and approved

Policy Consultation Forum to be convened to scrutinise the outstanding policy

ICT Governance Framework not approved on time ICT Governance Framework was subsequently approved in the first quarter of 2017/2018






SUB-PROGRAMME

2016/ 2017 2015/ 2016COMMENTS


EXPENDITURE

BUDGETR’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

BUDGET R’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

Head Corporate Services 610 1 335 (725) 1 995 1 984 12

Salary increase negotiated higher than estimated

Human Resources 15 974 18 307 (2 332) 16 485 14 694 1 790

Delayed Workmen’s Compensation billing received

Legal Services 4 800 3 715 1 085 1 943 6 829 (4 886)

Protracted legal cases ongoing, resulting in sporadic invoicing

ICT 9 743 7 043 2 700 8 181 6 727 1 455

Better prices negotiated via another state entity resulted in savings on Microsoft license. Cost containment was implemented in Capital expenditure to avoid overspending

Total Approved Budget 31 127 30 400 728 28 604 30 234 (1 629)

Joint Project Conservation expenses 4 181 4 181 0 0 0 0

Expenses incurred are off-set by Partnership funding received and recorded in Sundry Income.

Total after Joint Project Conservation expenses 35 308 34 580 728 28 604 30 234 (1 629)


4.4 PROGRAMME 4: TOURISM

PurposeFoster, promote and sustainably develop and market tourism

Sub-programmesThe Tourism Programme comprises of the following sub-programmes:• Tourism Development• Tourism Marketing• Tourism Registration

Strategic objectives• Promote the province to increase tourist arrivals by 10%• Increase the number of business events hosted in the province by 20%• Increase HDI participation in the tourism industry



PROGRAMME 4: TOURISM

STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Promote the province to increase tourist arrivals by 10%

Attended to 6 trade engagement programmes i.e.• Tourism

Indaba in Durban

• ZATEX tradeshow in Zambia

• Travel People Trade Workshop in Johannesburg

12 leisure marketing programmes conducted:• Winter, Festive

and Easter campaigns

• Getaway show• Mall exhibition• WTM Africa• Indaba• FACIM• SIFT• 3 workshops

by 31 March 2017



• Getaway show• Consumer

exhibition at a Women’s Forum

• WTM Africa• Indaba• FACIM• SIFT• 3 workshops

Mall exhbition could not be done as planned, however a consumer exhibition was conducted at the women’s forum event

A consumer exhibition was conducted at women’s forum event. This was due to delays to get the relevant documents from the identified mall for procurement






STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Promote the province to increase tourist arrivals by 10%(continued...)

• Swaziland International Trade Fair (SIFT) in Swaziland

• FACIM tradeshow in Mozambique

• World Travel Market in United Kingdom

Not assessed Package investment portfolio for Skywalk, Cable Car and Bourkes Luck hotel developed by 31 March 2017

Not achieved Investor mobilisation drive not conducted

The available study is not in full compliance with the National Treasury PPP requirements and a comprehensive feasibility study is required

Increase the number of business events hosted in the province by 20%

3 Business Events Programmes attended:• Exhibited at

IMEX Frankfurt 2015

• Attended MICE - ICCA Africa client supply workshop

• Exhibited at IBTM Spain

5 Business events marketing programmes conducted:• IMEX• Business

Events Conference

• Meetings Africa • Innibos • Beach Festival

by 31 March 2017

5 Business events marketing programmes conducted:• IMEX • Business

Events Conference

• Meetings Africa• Innibos • Beach Festival

None Not Applicable



STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Increase HDI participation in the tourism industry

12 new tourism enterprises owned by HDI’s facilitated through the provision of technical advice

5 new HDI supported by 31 March 2017

5 new HDI supported.

None Not Applicable

Assisted 3 HDI to get 13% share of business ownership through 1 concession agreement

12 existing HDI supported by 31 March 2017

12 existing HDI supported

None Not Applicable



PART B


SUB-PROGRAMME: MARKETINGPURPOSE: MARKETING THE MPUMALANGA PROVINCE AS A TOURISM DESTINATION

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Number of marketing programmes conducted

Attended to 6 Trade Engagement Programmes, i.e.• Tourism

Indaba in Durban

• ZATEX tradeshow in Zambia

• Travel People Trade Workshop in Johannesburg

• Swaziland International Trade Fair (SIFT) in Swaziland

• FACIM tradeshow in Mozambique

• World Travel Market in United Kingdom




by 31 March 2017




Mall exhibition could not be done as planned, however a consumer exhibition was conducted at a women’s forum event

A consumer exhibition was conduced at a women’s forum event. this was due to the delays to get the relevant documents from the identified mall

Number of investment portfolios packaged for investor mobilisation

Not assessed Package investment portfolio for Skywalk, Cable Car and Bourkes Luck hotel developed by 31 March 2017

Not achieved Investor mobilisation drive not conducted

The available study is not in full compliance with the National Treasury PPP requirements and a comprehensive feasibility study is required

Number of business concepts developed

Not achieved Develop business concept for Barberton Theme Park by 31 March 2017

Developed business concept for Barberton Theme Park

None Not Applicable


continued...


SUB-PROGRAMME: MARKETINGPURPOSE: MARKETING THE MPUMALANGA PROVINCE AS A TOURISM DESTINATION

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Number of business events conducted

3 Business Events Programmes attended:• Exhibited at

IMEX Frankfurt 2015

• Attended MICE - ICCA Africa client supply workshop

• Exhibited at IBTM Spain


Events Conference

• Meetings Africa• Innibos• Beach Festival

by 31 March 2017


Events Conference

• Meetings Africa• Innibos• Beach Festival

None Not Applicable






SUB-PROGRAMME: TOURISM DEVELOPMENTPURPOSE: DEVELOP AND GROW THE TOURISM INDUSTRY AND MAINTENANCE AND DEVELOPMENT OF MTPA INFRASTRUCTURE

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Number of tourism awareness programmes conducted

Conducted 6 tourism awareness campaigns: • 3 in Ehlanzeni• 2 in Gert

Sibande• 1 in Nkangala

District Municipalities

Coordinated the Tourism Month programme

Facilitated the Annual Lilizela Tourism awards in September and October

2 tourism awarenes programmesconducted:Tourism Month and Lilizela Awards by 31 March 2017

2 tourism awareness programmes conducted:Tourism Month and Lilizela Awards

None Not Applicable

Number of tourism training programmes conducted

5 tourism training programmes were conducted

5 tourism training programmes conducted by 31 March 2017

5 training programmes conducted:• Housekeeping• Tourism

buddies• General travel• 2 x Tourist

guides training

None Not Applicable


SUB-PROGRAMME: TOURISM DEVELOPMENTPURPOSE: DEVELOP AND GROW THE TOURISM INDUSTRY AND MAINTENANCE AND DEVELOPMENT OF MTPA INFRASTRUCTURE

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Number of HDI’s participated in the tourism industry

12 new tourism enterprises owned by HDI’s facilitated through the provision of technical advice

5 new HDI supported by 31 March 2017

5 new HDIs supported.

None Not Applicable

Assisted 3 HDI to get 13% share of business ownership through 1 concession agreement

12 existing HDI supported by 31 March 2017

12 existing HDIs supported

None Not Applicable


SUB-PROGRAMME: REGISTRATIONPURPOSE: REGISTRATION OF TOURISM BUSINESSES AND COMPLIANCE MONITORING

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Number of tourist guides registered

Renewed all 324 tourist guide renewal applications received in line with applicable regulations by 31 March 2016

252 tourist guides registered

326 tourist guides registered

74 more tourist guides were registered.

Due to market demand



PART B



Did not package investment portfolio for Skywalk, Cable Car and Bourkes Luck hotel developed

Fast track the feasibility studies as required by the National Treasury PPP requirements in order to obtain approval


SUB-PROGRAMME

2016/ 2017 2015/ 2016COMMENTS


EXPENDITURE

BUDGETR’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

BUDGET R’000

ACTUAL EXPENDITURE

R’000

(OVER) / UN-DER

EXPENDITURE R’000

Head Tourism 1 876 1 699 177 2 859 1 657 1 202

Curbed spending to comply with Treasury regulations on cost containment

Tourism Development 13 518 12 590 928 12 023 10 707 1 316

Prolonged stakeholder engagement delayed signing of MOA on a Flagship Project

Tourism Marketing 10 434 13 825 (3 392) 14 284 10 629 3 655

Participation in a strategic business event for an expanded mandate not budgeted for

Tourism Registration 2 165 2 076 89 1 572 2 305 (733)

Total Approved Budget 27 993 30 191 (2 197) 30 738 25 297 5 441


continued...


4.5 PROGRAMME 5: BIODIVERSITY CONSERVATION

PurposeManagement and conservation of biodiversity and eco-systems within the Province

Sub-programmes• Protected Areas and Development• Biodiversity Support Services• Conservation Services• Biodiversity Policy and ComplianceStrategic objectives• To manage the provincial protected areas effectively• Maintain adequate enforcement capacity in the Province• To increase land under conservation in the Provimce• Develop and maintain scientific biodiversity data and information and land use decision support tools



PROGRAMME 5: BIODIVERSITY CONSERVATION

STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



To manage the provincial protected areas effectively

Managed and conserved biodiversity and eco-systems within the Province

75% of area of state managed protected areas assessed with a METT score above 67% by 31 March 2017

43% of the area of state managed protected areas assessed with a METT score above 67%

32% of the area of state managed protected areas did not achieve a METT score above 67% as planned

The state of infrastructure is one of the key METT score drivers. The condition of infrastructure in most of the protected areas is run-down, although infrastructure upgrades are in progress, the actual improvement will be to a limited extent



PART B

PROGRAMME 5: BIODIVERSITY CONSERVATION

STRATEGIC OBJECTIVE

ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Maintain adequate enforcement capacity in the Province

Attended to 5 543 general permit applications

Attend to 4 000 general permit applications received by 31 March 2017

Attended to 5 074 general permit applications received.

Attended to 1 074 more permit applications than planned

As a result of drought, there was an increase in demand for animal harvesting

Attended to 77 criminal enforcement actions

Attend to 24 criminal investigations handed to NPA for prosecution by 31 March 2017

Attended to 36 criminal investigations handed to NPA for prosecution

Attended to 12 more criminal investigations than planned

Demand driven and dictated by criminal activity

Issued 347 administrative enforcement notices

Issue 300 administrative enforcement notices for non compliance with environmental legislation by 31 March 2017

Issued 193 administrative enforcement notices for non compliance with environmental legislation

Issued 107 administrative enforcement notices less than planned

Dictated by criminal activity

To increase land under conservation in the Province

Not achieved Submit proposal for 15 000 hectares (2 stewardship sites) to the MEC for gazetting as protected areas by 31 March 2017

Submitted proposals for 18 711 hectares (5 stewardship sites) to the MEC for gazetting as protected areas

Submitted proposals for 11 972 hectares (2 stewardship sites) to the MEC for gazetting intention to declare protected areas

3 711 more hectares was submitted than planned to the MEC for gazetting as protected areas

The additional hectares are from the previous years under achievement

Develop and maintain scientific biodiversity data and information and land use decision support tools

Data captured as received and MBSP database updated

Annual scientific insight published on the website by 31 March 2017

Published the annual scientific insight on the website

None Not Applicable


continued...



SUB-PROGRAMME: PROTECTED AREAS AND DEVELOPMENTPURPOSE: MANAGEMENT AND CONSERVATION OF BIODIVERSITY IN PROTECTED AREAS AND MANAGEMENT AND MAINTENANCE OF FACILITIES WITHIN PROTECTED AREAS

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Percentage of area of state managed protected areas assessed with a METT score above 67%

METT score 50% achieved

75% of area of state managed protected areas assessed with a METT score above 67% by 31 March 2017

43% of the area of state managed protected areas assessed with a METT score above 67%


The state of infrastructure is one of the key METT score drivers. The condition of infrastructure in most of the protected areas is run-down, although infrastructure upgrades are in progress, the actual improvement will be to a limited extent

Number of Internationally Recognised Conservation Areas registered and developed

Not achieved Complete the BMML WHS nominations dossier and submit the document to SAWHSCC (South African World Heritage Convention Committee) by 31 March 2017

The BMML WHS nomination dossier was completed and submitted to SAWHSCC (South African World Heritage Convention Committee)

None Not applicable

Increasing number of tourists visiting protected Areas

Not assessed Increase the tourism visitor percentage by 10% (93 368) from a baseline of 933 677 per annum by 31 March 2017

818 119 (87.6%) tourism visitors visited protected areas

208 926 less tourism visitors visited to the protected areas

The protected areas have limited value add activities for tourists



PART B


SUB-PROGRAMME: CONSERVATION SERVICESPURPOSE: MANAGE AND PROPAGATE THREATENED WILDLIFE, COMPLIANCE MONITORING, WILDLIFE MANAGEMENT, ENFORCEMENT AND PERMITS

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Number of permits issued within legislated time frames

Attended to 5 543 general permit applications

Attend to 4 000 general permit applications received by 31 March 2017

Attended to 5074 general permit applications received

Attended to 1074 more permit applications than planned

As a result of drought, there was an increase in demand for animal harvesting

Number of enforcement actions undertaken for non compliance with environmental legislation related criminal investigations handed to the NPA for prosecution (for EMI Institution)

Attended to 77 criminal enforcement actions

Attend to 24 criminal investigations handed to NPA for prosecution by 31 March 2017

Attended to 36 criminal investigations handed to NPA for prosecution

Attended to 12 more criminal investigations than planned

Demand driven and dictated by criminal activity

Number of enforcement actions undertaken for non compliance with environmental legislation administrative enforcement notices issued for non-compliance with environmental legislation

Issued 347 administrative enforcement notices

Issue 300 administrative enforcement notices for non compliance with environmental legislation by 31 March 2017

Issued 193 administrative enforcement notices for non compliance with environmental legislation


Dictated by criminal activity

Number of compliance inspections conducted

Performed 89 inspections

Perform 400 inspections to assess compliance with provisions of applicable legislation by 31 March 2017

Performed 294 inspections to assess compliance with provisions of applicable legislation

Performed 106 inspections less than planned

Demand driven by the conservation industry demand


continued...



SUB-PROGRAMME: BIODIVERSITY SUPPORT SERVICESPURPOSE: BIO-DIVERSITY RESEARCH, STATUS MONITORING AND SCIENTIFIC SUPPORT, ENGAGEMENT AND DEVELOPMENT OF NEIGHBOURING COMMUNITIES TO PROTECTED AREAS AND INCREASE OF LAND UNDER CONSERVATION TO ACHIEVE NATIONAL TARGETS

SUB PROGRAMME


ACTUAL ACHIEVEMENTS

2015/2016


ACTUAL ACHIEVEMENTS

2016/2017


TARGETS TO ACTUAL



Number of hectares in the conservation estate

Number of hectares in the biodiversity stewardship sites

Not achieved Submit proposal for 15 000 hectares (2 stewardship sites) to the MEC for gazetting as protected areas by 31 March 2017

Submitted proposals for 18 711 hectares (5 stewardship sites) to the MEC for gazetting as protected areas

Submitted proposals for 11 972 hectares (2 stewardship sites) to the MEC for gazetting as intention to declare protected areas

3 711 more hectares was submitted than planned to the MEC for gazetting as protected areas

The additional hectares are from the previous years under achievement

Numbers of learners reached through conservation education programmes

Conservation education was provided to 152 449 learners

Provide conservation education to 200 000 learners by March 2017

Provided conservation education to 142 842 learners

Conservation education was provided to 57 158 less learners than planned

Demand driven. Less learners participated in programmes than planned

Biodiversity information which is accesible to the public and decision makers

Data captured as received and MBSP database updated

Update Biodiversity information and indicators by March 2017

Biodiversity information and indicators updated by adding 507 records

None Not Applicable

Annual scientific insight published on the website by March 2017

Published the annual scientific insight on the website

None Not Applicable



PART B




Improve fundraising efforts and increase revenue generation in order to improve infrastructure spend


Dictated by criminal activity and therefore demand driven

Performed 106 inspections less than planned Proactively visit private conservation practitioners to inspect compliance

208 926 less tourism visitors to the protected areas than planned

Increase marketing of protected areas to improve market exposure

Conservation education was provided to 57 158 less learners than planned

Demand driven


SUB-PROGRAMME

2016/ 2017 2015/ 2016COMMENTS


EXPENDITURE BUDGET

R’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

BUDGET R’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

Head Biodiversity Conservation 5 585 5 525 59 2 754 3 539 (785)

Budget reporting was decentralized to sub-programme level. Delay experienced in realigning COE cost in the Operating System to a new level posting. Over expenditure in total relates to overtime paid on Sundays and Public Holidays

Protected Area Management 148 272 174 792 (26 520) 122 193 142 869 (20 675)Biodiversity Support Services 24 048 15 642 8 407 28 341 28 952 (611)Conservation Services 38 286 21 320 16 967 26 844 33 671 (6 827)Biodiversity policy and compliance 0 0 0 19 705 0 19 705Total Approved Budget 216 191 217 279 (1 087) 199 837 209 031 (9 193)Joint Project Conservation expenses 306 306 0 0 0 0Ringfenced projects 484 484 0 868 868 0Total after Joint Project Conservation and Ringfenced expenses 216 981 218 069 (1 087) 200 705 209 899 (9 193)


continued...


5.1 REVENUE COLLECTION

SOURCES OF REVENUE

2016/ 2017 2015/ 2016

BUDGET ACTUAL AMOUNT

COLLECTED

(OVER) / UNDER

COLLECTION BUDGET

ACTUAL AMOUNT

COLLECTED

(OVER) / UNDER

COLLECTION R’000 R’000 R’000 R’000 R’000 R’000

Sale of goods 2 088 3 693 (1 606) 5 032 3 055 1 977Rendering of services 21 706 22 733 (1 027) 9 818 13 730 (3 912)Concession fees 3 394 4 516 (1 122) 861 2 808 (1 947)Rental income 86 108 (23) 181 73 108Recoveries 198 252 (54) 281 253 28Sales – game 6 420 2 241 4 179 3 008 3 008 0Sundry income 308 2 772 (2 464) 2 986 2 251 735Interest received 800 912 (112) 833 930 (97)DEA implementers management 0 0 0 4 000 0 4 000Total Own Revenue 35 000 37 229 (2 229) 27 000 26 108 892Joint Project Conservation income 6 150 6 150 0 5 128 5 128 0Total after Joint Project Conversationincome 41 150 43 378 (2 229) 32 128 31 236 892

NB: Financial information above excludes all non-cash deposit.

5.2 PROGRAMME EXPENDITURE

PROGRAMME

2016/ 2017 2015/ 2016

BUDGET R’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

BUDGET R’000

ACTUAL EXPENDITURE

R’000

(OVER) / UNDER

EXPENDITURE R’000

Board Secretariat** 0 0 0 4 389 4 513 (124)

Executive Office 77 389 68 835 8 555 36 132 39 929 (3 797)

Office of the CFO 29 108 26 416 2 692 37 735 34 076 3 659

Corporate Services 31 127 30 400 727 28 604 30 234 (1 630)

Tourism 27 993 30 191 (2 197) 30 738 25 297 5 441

Biodiversity Conservation 216 191 217 279 (1 087) 199 837 209 031 (9 194)

Total Approved Budget 381 809 373 119 8 690 337 435 343 081 (5 645)Joint Project Conservation expenses 10 169 10 169 0 3 864 3 864 0

Ringfenced projects 494 494 0 4 949 4 949 0Total after Joint Project Conservation and Ringfenced expenses 392 472 383 782 8 690 346 248 351 894 (5 645)

** Board Secretariat is reporting from 2016/17 as part of the Executive Office Programme

5. SUMMARY OF FINANCIAL INFORMATION


PART B

Note: Under-expenditure:• Infrastructure Blyde and Manyeleti: Extensive consultations with the Communal Property Associations (CPA’s)

who are representative of the claimant communities regarding the implementation models to be used, refusal to accept appointed local contractors and floods after the Cyclone Dineo delayed the actual construction phase. This contributed largely towards total underspending

5.3 CAPITAL INVESTMENT, MAINTENANCE AND ASSET MANAGEMENT PLAN

INFRA-STRUCTURE PROJECTS

2016/ 2017 2015/ 2016

R’000 BUDGET

ACTUAL EXPENDITURE

R’000 (OVER) / UNDER EXPEND-

ITURE R’000

BUDGET R’000

ACTUAL EXPENDITURE

R’000 (OVER) / UNDER

EXPENDI-TURER’000

WORK IN

PRO-GRESS

MAINTE-NANCE

CAPITAL EXPEND-

ITURE

WORK IN PRO-

GRESS

MAIN-TE-

NANCE

CAPITAL EXPEND-

ITURE

Infrastructure upgrade 18 000 6 763 28 3 900 7 309 - 0 - Infrastructure maintenance 3 000 0 1 046 1 383 571 3 000 4 407 1 176 1 604 220 TOTAL 21 000 6 763 1 074 5 283 7 880 3 000 4 407 1 176 1 604 220

5.4. MATERIALITY AND SIGNIFICANCE FRAMEWORK

Regulation 28.2.1 of the Treasury Regulations requires that the Annual Report of public entities shall detail the materiality/ significance framework applied during the financial year which relates to:

• Any material losses through criminal conduct and any irregular and fruitless and wasteful expenditure must be disclosed as a note to the Annual Financial Statements of the public entity; and

• Particulars of the public entity’s strategic objectives and outcomes as identified and agreed on by the Executive Authority, the key performance measures and indicators for assessing the entity’s performance in delivering the desired outcomes and objectives and the entity’s actual performance against the strategic objectives and outcomes must be based on the annual report of the public entity.

Regulations 28.3.1 of the Treasury Regulations require that the Accounting Authority must develop and agree on a framework of acceptable levels of materiality and significance with the relevant Executive Authority. South African Audit Standard 320 paragraph 3 defines materiality as “information is material if its omission or misstatement could influence the economic decision of users taken on the basis of the financial statements”. Materiality depends on the size of the item, or error judged in the particular circumstances of its omission or misstatement.

In accordance therewith, this framework has been considered from two main perspectives, namely, quantitative and qualitative aspects. The policy framework set-out hereunder is as required appropriately presented in the Strategic Plan 2015-2020, in terms of the PFMA and Treasury Regulations.

5. SUMMARY OF FINANCIAL INFORMATIONcontinued...


Quantitative Aspects: Taking into account the materiality guideline, we assessed the level of the material loss and the significance is as follows:

• Every amount in respect to criminal conduct; • R300,000 and above in respect of irregular, fruitless and wasteful expenditure involving gross negligence; and • R4.8 million and above being 1% of total assets in respect of any other irregular, fruitless and wasteful

expenditure. In determining the materiality levels the following factors were taken into account:• The nature of MTPA’s Business; • The statutory requirement laid down for the MTPA with specific reference to the PFMA and Treasury Regulations;

and • The control and inherent risks associated with MTPA.

Qualitative Aspects: Materiality is not merely related to the size of the entity and the elements of its financial statements. Misstatements that are large, either individually or in the aggregate, may affect a “reasonable” user’s judgement. However, misstatements may also be material on qualitative grounds. For purpose of significance in terms of a section 54(2) of the PFMA, the level of significance was assessed at an amount of R4.8 million being approximately 1% of total assets. These qualitative grounds, which will be reviewed annually include, amongst others:

• Establishment or participation in the establishment of the company; • Participation in a significant partnership, trust, incorporated joint venture or similar arrangement;• Acquisition or disposal of a significant shareholding in a company; • Acquisition or disposal of a significant asset; • Commencement or cessation of a significant business activity; and • A significant change in nature or extent of its interest in a significant partnership, trust, incorporated joint venture

or similar arrangement.

5. SUMMARY OF FINANCIAL INFORMATIONcontinued...

2016/2017 AN

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Tel: +27 13 759 5300Fax: +27 13 752 4186


www.mpumalanga.com

PR: 192/2017 ISBN: 978-0-621-45579-3




PART B

Blyde River Canyon


2016/2017 AN

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Part C: Governance


PART C


2016/2017 AN

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GOVERNANCE

1. INTRODUCTION

Corporate governance embodies processes and systems by which public entities are directed, controlled and held to account. In addition to legislative requirements based on a public entity’s enabling legislation, and the Companies Act, corporate governance with regard to public entity’s is applied through the precepts of the Public Finance Management Act (PFMA) and run in tandem with the Protocol on Corporate Governance, which encapsulates the principles contained in the King’s Report on Corporate Governance.

Parliament, the Executive and the Board of the public entity are responsible for corporate governance.

2. PORTFOLIO COMMITTEES

The MTPA attended the following meetings of the Portfolio Committee on Premier’s Office, Finance, Economic Development and Tourism:

• April 2016 – meeting Portfolio Committee on 2015-2016 budget vote and 2015-2016 Annual Performance Plan• June 2016 – Presenting responses on 4th quarter performance report • August 2016 - SCOPA hearing on the 2014-15 audit outcomes of the MTPA• September 2016 - Progress Report on the Recommendations of the 2014-2015 Annual Report• October 2016 – Portfolio Committee Questions for 2015-2016 Annual Report • November 2016 – Portfolio Committee meeting to consinder 2016-2017 Budget Adjustments Appropriation Bill• February 2017 - SCOPA hearing on the 2015-16 audit outcomes of the MTPA

Below are the Portfolio Committee Resolutions on the 2016/2017 financial year and progress made as at 31 March 2017:

PROGRESS REPORT ON THE PORTFOLIO COMMITTEE ANALYSIS OF THE 2016-2017 ANNUAL PERFORMANCE PLANPORTFOLIO COMMITTEE RECOMMENDATIONS 2016/2017 PROGRESS AS AT 31 MARCH 2017 STATUS

1. Closely monitor the expenditure with regards to the Zithabiseni Resort to be strictly in terms of the targets as contained in the entity`s APP. Furthermore, the entity must align the budget allocated to Zithabiseni Resort with its deliverables and submit the relevant documentation in this regard to the Committee.

The expenditure with regards to the Resort is closely monitored to ensure that funds are utilized for intended purposes. All transfers to the Zithabiseni Resort follow a report presented by the Resort management demonstrating how the transfer in respect of the previous month was utilized and the intended spending for the following quarter.

Ongoing


PROGRESS REPORT ON THE PORTFOLIO COMMITTEE ANALYSIS OF THE 2016-2017 ANNUAL PERFORMANCE PLANPORTFOLIO COMMITTEE RECOMMENDATIONS 2016/2017 PROGRESS AS AT 31 MARCH 2017 STATUS

2. Strictly adhere to its APP for 2016/17 and ensure 100% implementation of its planned targets, including those removed from sub-programmes and transferred to the Operational Plan, and ensure value for money when utilising its budget.

The entity adhered to the 2016/2017 APP including those in the operations plans. The overall achievement of the entity is 69% year to date. This is as a result of protracted consultations with local and claimant communities that delayed planned targets related to infrastructure projects and appointment of a Transaction Advisor to commence with registration of key catalytic projects with national Treasury as PPP projects.• Progress on projects implementation

Contractors have been appointed for all projects and work in progress is at different stages of completion

• Progress on commercialisation of catalytic projects The appointed Transaction Advisor has commenced with community consultations, revision of feasibility studies for the projects and lodgement of application with National Treasury

The infrastructure projects and registration of key catalytic projects is work in progress and will be completed in the 1st quarter of 2017-2018

3. Provide quarterly progress reports on the conclusion of the Institutional Turnaround and Organisational Development Programme (ITODP) which is driven by DEDT to ensure review of the entity`s Organogram immediately after the conclusion of the ITODP so that the rationalization process in the entity can commence.

The MTPA organogram is under review following the adoption of the list of functions to be migrated to DEDT and DARDLEA. Progress reports will be submitted through DEDT.

Ongoing

PROGRESS REPORT ON THE PORTFOLIO COMMITTEE ANALYSIS OF THE 2015-2016 ANNUAL PERFORMANCE REPORT RESOLUTION 2016/2017 PROGRESS AS AT 31 MARCH 2017 STATUS1. The Executive Authority must ensure that

a Board is appointed in the entity prior the contract of the interim Board comes to an end.

A new Board was appointed on 1 March 2016 Completed

2. Accounting Authority must ensure that the investigation processes on the former CEO are fast tracked and furnish the Committee with a progress report by 30 June 2015.

The investigation has been concluded and the former CEO has been released from his duties

Completed

3. The Accounting Officer must develop plans and mechanism to ensure that the budget of Compensation of Employees does not exceed the service delivery budget.

The entity is rationalizing its structure through the integration of functions, none filling of less critical positions which have been vacated through natural attrition and the redeployment of personnel to areas of high need

On going

GOVERNANCEcontinued...


PART CGOVERNANCE

continued...

PROGRESS REPORT ON THE PORTFOLIO COMMITTEE ANALYSIS OF THE 2015-2016 ANNUAL PERFORMANCE REPORT RESOLUTION 2016/2017 PROGRESS AS AT 31 MARCH 2017 STATUS4. The Accounting Officer must ensure that the

Marketing Strategy and Revenue collection system is developed and implemented in each natures reserve within a period of six months.

The entity has developed a marketing plan for the nature reserves. The Revenue collection system will be rolled out at Manyeleti and Blyde River canyon Nature Reserves

Ongoing

5. The Accounting Officer must ensure that there is relevant capacity on the nature reserves and the budget is decentralised.

The budget for the reserves has been decentralised. Capacity building in the nature reserves has been prioritised and right levels of capacity will be achieved overtime

Budget decentralization completed. Capacity building on going.

Below are questions raised by Standing Committee on Public Accounts (SCOPA) on the 2015/2016 financial year and progress made in this regard:

PROGRESS REPORT ON THE STANDING COMMITTEE ON PUBLIC ACCOUNTS (SCOPA) OF THE 2015-2016 ANNUAL PERFORMANCE REPORT RECOMMENDATIONS PROGRESS AS AT 31 MARCH 2017 STATUS1. The Accounting Authority must prioritise the

vacancies in asset management and process them for approval by the Executive Council.

The senior manager position was filled through an internal process.

Ongoing

2. The Accounting Authority must develop adequate mechanism and systems to safeguard and maintain its assets and ensure that it has necessary capacity thereof.

A consultant was hired to help improve the asset register and other processes within the unit.

Completed

3. The Accounting Authority must ensure that the entity transfers the full evaluation amount from completed work-in-progress to the statement of changes in net assets.

The work-in-progress was completed and allocated to the correct asset categories.

Completed

4. The Executive Authority must consider taking disciplinary actions against the Accounting Officer for failing to provide supporting evidence that was required by the Auditor General.

This was due to capacity constraints and has since been corrected. The entity appointed a dedicated official from within for the safeguarding of all the supporting documents relating to accounts payable. This official is also responsible for storage and movement of all documents.

Completed

5. The Accounting Authority must develop mechanisms to collect all monies due to the entity and safeguarding of documents ie. invoices.

There is a concession register in place and a dedicated official monitors and updates the register accordingly. The finance section is responsible for the timely collection of all outstanding monies.

Ongoing

6. The Accounting Authority must develop a strategy that will ensure that accruals are minimised.

Accounts are paid within 30 days and creditor’s reconciliation is performed before payments are effected. Exceptions are identified immediately when the reconciliation is reviewed by the Chief Financial Officer and then followed up and resolved.

Ongoing


PROGRESS REPORT ON THE STANDING COMMITTEE ON PUBLIC ACCOUNTS (SCOPA) OF THE 2015-2016 ANNUAL PERFORMANCE REPORT RECOMMENDATIONS PROGRESS AS AT 31 MARCH 2017 STATUS7. The Accounting Authority must ensure that

the entity has a proper records management system not later than the 30 November 2016.

There is a concession register in place and a dedicated official monitors and updates accordingly. The finance section is responsible for the timely collection of all outstanding monies.

Ongoing

8. The Accounting Officer must develop a plan that will ensure that the entity achieves all planned targets.

An operations plan is developed to outline the monthly activities required to achieve the planned quarterly targets.

Completed

9. The Accounting Officer must ensure that the entity has a system in place and capacity to monitor the achievement of the planned targets.

Monitoring is done on a quarterly basis and corrections are effected immediately. The outcome of the evaluation is discussed at Management and Board Committee meetings.

Ongoing

10. The Accounting Officer must ensure that the entity has appropriate systems to collect, collate, verify and store performance information.

The entity has a Board approved Monitoring and Evaluation Framework which is applied to process performance information. Monitoring is done on a quarterly basis and corrections are effected immediately. The portfolio of evidence is analysed, evaluated and centrally stored. The outcome of the evaluation is discussed at Management and Board Committee meetings.

Completed

11. The Accounting Authority must consider taking disciplinary actions against officials who failed to prepare the financial statements in accordance with the prescribed financial reporting framework as required by section 55(1) (a) and (b) of the PFMA.

The entity could not take disciplinary action against officials as this was due to instability and incapacity in the Office of the CFO.

Ongoing

12. The Accounting Authority must ensure that investigation on officials who failed to comply with Treasury Regulation 16A6.3(c) and 16A6.1.1 and disciplinary action is taken against complicated officials.

The entity appointed an independent auditor to do an investigation to determine accountability and responsibility .The outcome of the independent investigation proved that there was value for money and the entity benefited from those transactions.

Completed

13. The Accounting Authority must consider taking disciplinary actions against officials who contravene Treasury Regulations 16A6.3.

The entity appointed an independent auditor to do an investigation to determine accountability and responsibility.The outcome of the independent investigation proved that there was value for money and the entity benefited from those transactions.

Completed

14. The Accounting Authority must consider taking disciplinary actions against officials awarded contracts in contravention to the requirements of the Preferential Procurement Policy Framework Act of South Africa (Act No.5 of 2000) and its regulations.

The entity appointed an independent auditor to do an investigation to determine accountability and responsibility.The outcome of the independent investigation proved that there was value for money and the entity benefited from those transactions.

Completed



PART CGOVERNANCE

continued...

PROGRESS REPORT ON THE STANDING COMMITTEE ON PUBLIC ACCOUNTS (SCOPA) OF THE 2015-2016 ANNUAL PERFORMANCE REPORT RECOMMENDATIONS PROGRESS AS AT 31 MARCH 2017 STATUS15. The Accounting Authority must consider

taking disciplinary actions against officials who failed to prevent irregular expenditure as well as fruitless and wasteful expenditure.

The entity appointed an independent auditor to do an investigation on irregular expenditure to determine accountability and responsibility. The outcome of the independent investigation proved that there was value for money and the entity benefited from those transactions. The entity is in the process of the investigation on fruitless and wasteful expenditure. Once report is finalised the entity will act on the recommendations.

Completed

16. The Accounting Authority must consider taking disciplinary actions against officials who failed to submit proof that the irregular expenditure was reported to Provincial Treasury.

The entity could not take disciplinary action against officials as this was due to instability and incapacity in the Office of the CFO, however, the irregular expenditure has since been reported to the Provincial Treasury. The entity has since complied with the Treasury instruction to report any irregular expenditure incurred on a quarterly basis and has applied for condonation on irregular expenditure incurred to date.

Completed

17. The Accounting Authority must consider taking disciplinary action against officials who failed to take effective and appropriate steps to collect all monies due as required by section 51(1) (a) (1) of PFMA and Treasury Regulation 31.2(a) and (e).

Due to land disputes on most of the reserves, the entity was not able to finalise all the concessions contracts in time. Progress has since been made on the matter and the entity has a credible concessions register in place.

Ongoing

18. The Executive Authority must consider taking disciplinary action against the Accounting Officer for failing to implement effective human resource management to ensure adequate and sufficient skilled resources were in place and that performance was monitored.

The inability to implement effective human resources management was due to budget constraints within the entity, in view of these and now lately the moratorium on filling of vacant positions the entity is capacitating the existing personnel to effectively and sufficiently utilise the existing human resources.

Ongoing

19. The Accounting Authority must consider taking disciplinary action against officials who failed to establish and communicate policies and procedures to enable and support the understanding and execution of internal control objectives, processes and responsibilities.

The entity could not take disciplinary action against officials as this was due to human resources capacity constraints in the Corporate Services Programme, either to review, develop policies or either implement policies reviewed.

Ongoing

20. The Accounting Authority must provide the Committee with the outcomes/progress made regarding the 2 suspects arrested for rhino horn theft not later than the 30 November 2016.

The entity is informed by the State Prosecutor that she has provisionally withdrawn the case due to counter allegations made by the suspects against the investigating officer. She promised to reinstate the case once the allegations have been cleared. She did not want to risk losing the rhino horn case because of counter allegations.

Ongoing


3. EXECUTIVE AUTHORITY

The following reports were submitted to the Executive Authority during the reporting period:

• Annual Report 2015/2016 - 30 August 2016• Quarter 1 (2016/2017) - 31 July 2016• Quarter 2 (2016/2017) - 31 October 2016• Quarter 3 (2016/2017) - 30 January 2017• Quarter 4 (2016/2017) - 30 April 2017

The Executive Authority raised no issues during the reporting period with regards to the above reports submitted.

4. THE ACCOUNTING AUTHORITY / THE BOARD

Introduction:The Board is the Accounting Authority of the MTPA and constitutes a fundamental base for the application of corporate governance principles in the MTPA. The Board exercises and performs the powers and functions conferred or imposed upon the Agency by the MTPA Act or any other law. The Board provides strategic direction to the MTPA.

The role of the Board is as follows:In accordance with the MTPA Act and corporate governance, the specific responsibilities discharged by the Board collectively, include the following:

• Retaining effective control over the MTPA and monitoring Management’s implementation of the strategic plan, the Annual Performance Plan as well as financial objectives, as approved by the Board

• Defining levels of materiality• Written delegation of specific powers to management and reserving specific powers to the Board• Monitoring of the delegated powers to management• Ensuring that efficient systems of policies and procedures are in place and appropriate governance structures

exist to ensure efficient and effective running of the Agency• Ensuring compliance to applicable laws and regulations, audit and accounting principles, the MTPA Code of

Conduct, the King III report and such other principles that may be established by the Board from time to time• Regularly reviewing and evaluating the risks to the business of the MTPA and ensuring the existence of

comprehensive and appropriate internal controls to mitigate such risks• Exercising objective judgement on the affairs of the MTPA, independent from management, but with sufficient

management information to enable a proper and informed assessment• Ensuring that the MTPA acts responsibly towards all relevant stakeholders who have a legitimate interest in its

affairs

Board Charter:As recommended by the King Code, the Board has a Charter that sets out the role of the Board, the composition of the Board and the processes that relate to key governance activities.



PART C

The Charter does not necessarily specify all the workings of the Board. It is a high level document that is supported by other (internal) documents such as:

• Delegation of Authority• Board Policies• Operational Policies

The following progress was made in complying with the Board Charter:• The Board has satisfied its role of determining the Agency’s purpose, values, giving strategic direction,

identifying key risk areas and monitoring the performance of the Agency against the set objectives. It has further successfully, advised on significant financial matters in the period under review;

• With regard to the composition of the Board, the Board’s composition is according to the terms set out in the MTPA Act;

• There is a clear division of responsibilities between the Chairperson of the Board and the CEO;• The Board convened its meetings as set out in the Act and also in the Charter and has also convened additional

meetings to address issues that were pertinent to the Agency;• The Board established governance structures on assumption of office to facilitate efficient decision making. It

has further aligned the structures according to its mandate and Treasury prescripts;• The Board Members adhere to the declaration of interests on an annual basis and at each meeting Board

Members are required to declare conflict of interest if any;• The Company Secretary’s office has been aligned with the Charter to permeate a situation whereby it works

closely with the Chairperson of the Board and the CEO;• The appointment of Internal Auditors has been delegated to the Audit Committee; • The Board has satisfied all the reporting and accountability requirement to the MEC, Provincial Legislature,

Provincial Treasury and the Auditor General’s office as set out in the MTPA Act and the PFMA; and

Board Members:The table below compose of Board Members as appointed by the Member of the Executive Council (MEC), their date of appointment and resignation for the financial year under review.



NAME DESIGNATION DATE APPOINTED

DATE RESIGNED QUALIFICATIONS

AREAS OF

EXPERTISE

BOARD DIRECTOR

SHIPS

OTHER COMMITTEES

NUMBER OF

MEETINGS ATTENDED

Mr. TJ Nzima

Board Chairperson

1-Mar-16 Active BCom Degree Tourism • CEO & Ex-officio Board Member - SA Tourism 2012-2015;

• Director Sales & Marketing Avis Rent a Car Southern Africa 2007-2011;

• CEO SA Travel Center 2005-2007;

• Senior Executive Manager SAA 2003-2005;

• Senior Executive Manager Retail & Coastal Sales SAA 2001 - 2002;

• Senior Executive Manager Sales & Voyeger Strategy SAA 2001-2002;

• General Manager KZN & Boarder SAA 2000-2001;

• Regional Manager - Benelux Countries 1997-2000;

• Market Development Manager - Americas 1996-1997;

• Market Development Manager - Asia & Australia 1993-1996; Overseas Cadet Manager 1991-1993;

• Sub Branch Manager - Wynberg Perm Building Society 1984-1991;

• Business Development Manager - Wynberg Perm Building Society 1985 – 1987

• Chairpersons Committee

• Tourism and Marketing Committee

• Board Task Team - CEO Selection Panel

• CHAIRCO - CEO Selection Panel

30 of 32



PART CGOVERNANCE

continued...



AREAS OF

EXPERTISE

BOARD DIRECTOR

SHIPS

OTHER COMMITTEES

NUMBER OF

MEETINGS ATTENDED

Mrs. NR Shabangu- Mndawe

Chairperson Remuneration, Nominations and Governance Committee

1-Mar-16 Active B.Proc; LLB; Corporate Governance

Legal Services • Deputy Chairperson of Black Lawyers Association 2011 - to date;

• Member of Family Law Committee: Law Society of South Africa 2011 - to date

• Remuneration, Nominations and Governance Committee; Chairpersons Committee;

• Zithabiseni Board Tak Team,


• CHAIRCO -CEO Selection Panel

41 of 42

Mr. TF Keetse

Tourism & Marketing Committee Chairperson

1-Mar-16 Active B-Tech Marketing; Global Leardership Certificate - Duke CE India - 2009, MAP - Wit; Sales and Channel Leardership - Insead Business School France; Graduate Diploma in International Marketing - UNISA 1999,

Marketing and Finance

• Head: Franchise and Stakeholder Relations - Old Mutual;

• Board Member - BMF Mpumalanga


• Chaipersons Committee


27 of 38




AREAS OF

EXPERTISE

BOARD DIRECTOR

SHIPS

OTHER COMMITTEES

NUMBER OF

MEETINGS ATTENDED

Dr. DT Magome

Board Member 1-Mar-16 Active Bsc (Hons) University of Bophuthatswana; MSc University of Witwatersrand - Ecology of Sable Antelope; MSc Colorado State University - Wildlife Mnagement; PhD University of Kent UK - Conservation Policy

Conservation • Managing Executive Conservation Services 2000-2005;

• General Manager: Park Planning and Development 1996 - 1999;

• Chief Executive: Bop Parks;

• Assistant Director - Community Wildlife 1992 -1994;

• Study Leave for MSc Wildlife Biology at Colorado State 1990 - 1992;

• Ecologist 1987 - 1990 (For Professor Norman Owen-Smith);

• Assistant Ecologist 1986 - 1987 Botsalano Game Reserve

• Conservation Committee

• Chairpersons Committee

• Zithabiseni Board Task Team


27 of 32



PART C



AREAS OF

EXPERTISE

BOARD DIRECTOR

SHIPS

OTHER COMMITTEES

NUMBER OF

MEETINGS ATTENDED

Ms. TB Nkambule

Board Member 1-Mar-16 Active BCom: Industrial Psychology and Economics; BCom Honours (Economics) Higher Education Diploma; Masters in Development Economics; Advance Certificate in Policy Planning & Project Analysis; Econometrics; Project Management; Jobs for Growth Certificate; SA Excellent model in Entrepreneurship

Economic and Busines Development, Environmental Management

• Director: Ntobe Fire Control; Director: Pel Africa Management CC;

• Director: Neighborhood Development Company;

• Professional Associate: Blue Print;

• Director: Toront Business Enterprise;

• Director: Imbombela ICC;

• Board Member: SEDA; Board of Trustees: My Acre of Africa;

• Enablis Business Plan Competition;

• Umsobomvu Mentoring and Business Support;

• Executive Chairperson: Toro Toro Business Enterprise;

• Southern Regional Manager: Kruger National Park 2001 - 2004;

• Head Economic Planning and Research Unit 1998-2001;

• Assistant Director: SMME Desk 1997-1998;

• Senior Lecturer: Elijah Mango College 1990-1996;

• Lecturer: Mgwenya College of Education 1989-1990;

• Teacher: Khumbula High School 1986-1989

Conservation Committee

19 of 22





AREAS OF

EXPERTISE

BOARD DIRECTOR

SHIPS

OTHER COMMITTEES

NUMBER OF

MEETINGS ATTENDED

Ms. JS Sekhitla

Board Member 1-Mar-16 Active Diploma in General Nursing; Diploma In Midwifery; Diploma in Business Management (RAU); Cerificate in Business Sector Development (RAU); Academy of Real Estate - Certificate of Completion; Computer Studies (RAU; Tourism Certificate from THETHA; Good Governance Course - Institute of Directors SA; Public Finance for non-financial managers programme - Regenesys, Buchelor of Business Administration (Incomplete)

Tourism • Board Member and Director Tourism Grading Council of South Africa 2006-2009;

• Board Member and Director of Tourism Marketing South Africa 2005-2011;

• Executive Member of Tunisia South Africa Chamber of Commerce 2006-2009;

• Ministeral Appointee Higher Education Board Member Cathsseta 2011-2016;

• Executive Member Ekurhuleni Business Innitiatives 2002 - to date

CURRENT DIRECTORSHIP: The View Guest House, Merafe Travel and Tourism, Mmamerafe Construction and Civil Engineering;

CHAIRPERSON: South African Women in Tourism 2013 - to date, Ekurhuleni Travel and Tourism Association 2014 - to date; Tembisa Tourism Association: General Secretary Nafcoc Gauteng 1998; Secretary of Tembisa Chamber o Commerce 1994; Professional Nurse: Garankuwa Hospital 1985-1986 and Tembisa Hospital 1986-1989


• Zithabiseni Board Task Team

• Board Task Team - Extended REMCO

25 of 28



PART C



AREAS OF

EXPERTISE

BOARD DIRECTOR

SHIPS

OTHER COMMITTEES

NUMBER OF

MEETINGS ATTENDED

Ms. BN Mzuzu

Board Member 1-Mar-16 Active B.Proc Degree (University of Fort Hare); Practical Legal Training School; (Law Society of the Cape of Good Hope); MS Windows Certificate - Windows 98; Debt Collection Course (Legal Interact); Conveyencing Practice Course (Legal Education and Development Pretoria)

Legal Services Founder & Director of Mzuzu Attorneys

• Remuneration, Nominations and Governance Committee, Audit Committee,


25 of 32

Ms. SFS Makhathini

Board Member 1-Mar-16 Active Qualified Chatered Accountant CA: SA, saica Articles - TIPP Auditing, Honours in Bachelor of Accounting Sciences (UNISA), Post Graduate Diploma in Accounting Sciences, Diploma in Accounting Sciences (UNISA), Bachelor of Commerse in Accounting (Wits University)

Accounting • Director: Business Methodologies - Ubambo Consulting (Pty) Ltd;

• Audit Manager - Projecys Management and Reporting : CBB Rodl & Partner Inc.;

• Finance Controller: Richards Bay Coal Terminal;

• Golden Key Honour Society Member;

Young Achiever of the Year - Richards Bay Coal Terminal; Executive Commitee Interact Club

Audit Committee and Zithabiseni Board Task Team

20 of 28





AREAS OF

EXPERTISE

BOARD DIRECTOR

SHIPS

OTHER COMMITTEES

NUMBER OF

MEETINGS ATTENDED

Mr. CL Gololo

Board Member 1-Mar-16 Active Diploma Institute Development Management Tanzinia - 1992; Certificate Govt Change Management Wits University - 1994; Certificate Export Management (New Delhi; India) - 1989; Studied in Czechoslovakia - 1983; Studied and Traine in Cuba - 1980

Economic and Busines Development

• Managing Director and Executive Consultant: TLS Global Consultants,

• Director: MAAMS Health Clinic

• Conservation Committee and

• Board Task Team - Extended REMCO

17 of 24

Mr. SG Mthombeni

Board Member 1-Mar-16 Active B Admin - Fort Hare; MBA - Michigan State University; MSPA - Walsh College; CPA Sat and Passed Certificate Public Accountancy Board Eximinations in Michigan USA

Industrial Psycology and Finance

Chief Executive Officer and Executive Director: Gateway Airport Authority

• Remuneration, Nominations and Governance Committee; Zithabiseni Board Task Team 29 of 31

Ms. MS Nee’ Nkgadima

Board Member 1-Mar-16 Resigned 31 Aug 2016

LLB Degree - University of Limpopo; School of Legal Practice Johannesburg Law School; Admitted Attorney Law Society of Northen Province; Member Black Lawyers Association; Member Women Lawyers Association

LegalServices

None Audit Committee

5 of 25



PART C

Board Committees:

The Board had the following Board Committees:• Audit Committee• Remuneration, Nominations and Governance Committee• Conservation Committee• Tourism and Marketing Committee• Zithabiseni Task Team

Board’s list of committees, members that served in each committee and the number of meetings held are as follows:

COMMITTEENO. OF

MEETINGS HELD

NO. OF MEMBERS NAME OF MEMBERS

Audit Committee 8 5 Ms. PMK Mvulane: Chairperson (1 August 2016)Mr. MS Mthembu (01 April 2013)Ms. SFS Makhathini (01 April 2016)Ms. TE Mawelele (Term ended 31 July 2016)Ms. N Mtebele (Resigned 6 March 2017)Mr. TF Keetse (Term ended 31 July 2016)Ms. MS Nee’ Nkgadima (Resigned 31 Aug 2016)Ms. BN Mzuzu (Appointed 23 March 2017)

Remuneration, Nominations and Governance Committee

11 3 Ms. NR Shabangu-Mndawe: ChairpersonMr. SG MthombeniMs. BN Mzuzu

Conservation Committee 5 3 Dr. DT Magome: ChairpersonMs. TB NkambuleMr. CL Gololo

Tourism and Marketing Committee

6 3 Mr.TF Keetse: ChairpersonMr. TJ NzimaMs. JS Sekhitla

Zithabiseni Board Task Team 3 5 Mr. SG Mthombeni: ChairpersonMs. NR Shabangu-MndaweMs. SFS MakhathiniMs. JS SekhitlaDr. DT Magome

Chairpersons Committee 2 5 Mr. TJ Nzima: ChairpersonMs. PMK MvulaneMs. NR Shabangu-MndaweDr. DT MagomeMr. TF Keetse

Special Board Task Team: CEO Selection Panel (CHAIRCO)

5 5 Mr. TJ Nzima: ChairpersonMs. PMK MvulaneMs. NR Shabangu-MndaweDr. DT MagomeMr. TF Keetse

Special Board Task Team: Extended REMCO to meet with NEHAWU

2 3 Ms. NR Shabangu- Mndawe: ChairpersonMs. JS SekhitlaMs. BN Mzuzu

Special Board Task Team - CEO Selection Panel

2 3 Mr. TJ Nzima: ChairpersonMs. BN MzuzuMs. NR Shabangu-Mndawe



The remuneration of the Board members appointed for the period under review is as follows:

NAMEDATE

RESIGNEDREMUNERATION

R

OTHER ALLOWANCES

R

OTHER REIMBURSEMENT.

e.g. TravelR

TOTALR

Mr. Nzima TJ (Chairperson) Active 291 107 12 000 62 175 365 283

Ms. Shabangu-Mndawe NR (Deputy Chairperson) Active 177 736 8 250 8 489 194 474

Dr. Magome DT Active 109 520 6 000 51 213 166 733

Ms. Makhathini SFS* Active 79 232 2 250 4 504 85 986

Ms. Masekoameng nee’ Nkgadima MS (resigned 31 Aug 2016)*

31 August 2016 23 673 2 250 13 317 39 240

Mr. Mthombeni SG Active 117 667 2 250 69 582 189 500

Ms. Mzuzu NB Active 90 565 2 250 2 278 95 093

Ms. Sekhitla JS Active 89 569 2 250 2 360 94 179

Ms. Nkambule TB Active 77 117 2 250 3 995 83 362

Mr. Gololo CL Active 69 055 2 250 7 187 78 492

Mr. Keetse TF* Active 88 729 6 000 30 634 125 363

TOTAL 1 213 969 48 000 255 735 1 517 704* Totals include remuneration for Audit Committee attendance and remuneration = Gross Amount

NAME DATE RESIGNEDREMUNERATION

R

OTHER ALLOWANCES

R

OTHER REIMBURSEMENT.

e.g. TravelR

TOTALR

Ms. Mvulane PMK Active 62 685 4 000 625 67 309

Ms. Mtebele N 06 March 2017 52 676 2 000 1 717 56 394

Mr. Mthembu MS Active 49 550 2 250 914 52 714

Ms. Mawelele TE Term ended 31 July 2016 4 753 2 250 239 7 242

TOTAL 169 664 10 500 3 495 183 659

Totals excludes remuneration received by Mr. Keetse, Ms. Nkgadima and Ms. Makhathini. Their respective remuneration is included under “Board Remuneration” and Remuneration = Gross Amount



PART C

5. RISK MANAGEMENT

The Audit Committee also performs the functions of the Risk Management Committee. The Chairperson of the Audit Committee is also the Chairperson of the Risk Management Committee. The Committee was appointed to identify and manage risks in the MTPA. The Audit Committee comprises of Executive Management members and the Chief Executive Officer. The Audit Committee is provided with quarterly progress reports which are subsequently forwarded to the Board.

A risk assessment workshop was held in March 2017 with the objective to understand what is at risk within the context of the entity’s explicit and implicit objectives and to generate a comprehensive inventory of risks based on the threats and events that might prevent, degrade, delay or enhance the achievement of the objectives. This was done in line with the Approved 2017/18 Annual Performance Plan.

Participants at the annual risk management workshop are Audit Committee members, Programme Heads, Senior Management officials and managers within the programmes.

Quarterly risk mitigation progress reports are submitted to the Audit Committee and the Board.



The top ten risks in the Agency for the period under review are as follows:

RISK PROGRESSIneffective management of protected areas

• Development of Commercialisation plan in progress to enhance revenue, workshop of plan so far conducted with management. Currently there is a process of gathering information from the five reserves in order to finalise the strategy

• Secured funding for infrastructure development and maintenance plan in the protected areas

• upgrading and maintenance of tourism infrastructure/facilities

Inadequate funding • Development Commercialisation plan in progress to enhance revenue, workshop of plan so far conducted with management. Currently there is a process of gathering Information from the five reserves in orderto finalise the strategy

• Provided training to cashiers at the protected areas (nature reserves) • A development of a revenue enhancement plan and funding model is underway

Leadership instability • The entity has prioritised to fill key critical positions• A permanent CEO has been appointed with effect from 01 April 2017

Financial mismanagement • Compliance management framework developed• Delegation of Authourity Manual has been reviewed and wil be presented to the

Board for Approval in May 2017

Inadequate resources to implement the annual performance plan

• The development of HR Strategy that responds to the challenges of cost of employment requirements and budget realities

• In progress to review and update MTPA policies • Critical positions have been prioritised in the new finiancial year 2017/18 in order

to attract adequate skills where applicable • The development of the talent management policy is in progress to be finalised

and implemented in the first quarter of the new financial year

Non-compliance with relevant legislation, regulations, policies and procedures/ ineffective Corporate Governance

• Oversight structures has been formed to monitor compliance • Some approved policies and procedures across MTPA• There is continuous awareness workshops on existing policies and applicable

regulations

Ineffective development of tourism products

• Implementation of the provincial Tourism Growth Strategy is very slow due the external factors. The appointment of the Transaction Advisor for the Blyde flagship projects is on track.

Fraud and corruption • Existing fraud prevention policy and strategy including applicable approved policies and procedures across MTPA

• Existing Governance structures• Existing code of conduct, disciplinary code and procedures• Declaration of interest is monitored on a continuous basis • Existing fraud hotline

Decrease in tourist arrivals • MTPA strategic plan• Approved 2017/18 annual performance plan• Approved 2017/18 operational plans• Approved Marketing Plan and implementation

Ineffective implementation of ICT strategy

• ICT Disaster Recover Plan approved and implemented. In progress to review and update ICT strategy accompanied by a three year implementation plan. The strategy will be approved by the Board in the first quarter of 2017/2018 financial year



PART C

6. INTERNAL CONTROL UNIT

The entity does not have an Internal Control Unit. The functions are performed by Risk Management and Internal Audit Unit

7. INTERNAL AUDIT AND AUDIT COMMITTEE

Internal Audit

The internal Audit services has been outsourced to Sizwe NtsalubaGobodo and Associates effective August 2015 to provide independent and objective assurance and consulting services in the areas of internal controls, risk management and governance processes. The appointment was subject to open tender. The internal audit unit reports functionally to the Audit Management Committee on a quarterly basis and operationally to the Chief Executive Officer. On a quarterly basis the Internal Auditors monitor the operation of the internal control system and report findings and make recommendations to management. Corrective actions are taken to address control deficiencies and other opportunities for improving the systems, as they are identified. The Board, operating through the Audit Committee, provides oversight of the financial reporting process and internal control systems.

The MTPA conducts an annual risk assessment process with the objective to understand what is at risk within the context of the entity’s explicit and implicit objectives and to generate a comprehensive inventory of risks based on the threats and events that might prevent, degrade, delay or enhance the achievement of the objectives. A three year rolling internal audit plan was developed and reviewed annualy to ensure all risks as identified are adequately covered in the plan.

In summary the Internal Audit and Audit committee functions will include:

a. Evaluating the reliability and integrity of information and the means used to identify measure, classify, and report such information.

b. Evaluating the systems established to ensure compliance with those policies, plans, procedures, laws and regulations which could have a significant impact on the organization.

c. Evaluating the means of safeguarding assets as appropriate and verifying the existence of such assets. d. Evaluating the effectiveness and efficiency with which resources are employed. e. Evaluating operations or programs to ascertain whether results are consistent with established objectives and

goals and whether the operations or programs are being carried out as planned. f. Monitoring and evaluating governance processes.g. Monitoring and evaluating the effectiveness of the organization’s risk management processes. h. Evaluating the quality of performance of external auditors and the degree of coordination with internal audit. i. Performing consulting and advisory services related to governance, risk management and control as appropriate

for the organization.j. Reporting periodically on the internal audit activity’s purpose, authority, responsibility and performance relative

to its plan.k. Reporting significant risk exposures and control issues, including fraud risks, governance issues and other

matters needed or requested by the Board.l. Evaluating specific operations at the request of the Board or management as appropriate.



Summary of audit work done are as follows:

FOCUS AREA PLANNED START DATE STATUS AS AT 31 MARCH 2017Predetermined objectives – Biodiversity Quarterly Completed September 2015

Human Resources and payroll August 2016 Completed October 2016

Supply Chain Management August 2016 Completed August 2016

Follow ups on Auditor Generals’ findings January 2017 Completed March 2017

Half year Financial Statements review October 2016 Completed October 2016

Irregular Expenditure Compliance Audit Adhoc Completed October 2016

ICT Management Framework Adhoc Completed March 2017

HR Plan Adhoc Completed May 2017

AUDIT COMMITTEE

Key activities and objectives of the Audit Committee are as follows:

a. Discuss with management, internal and external auditors and major stakeholders the quality and adequacy of the MTPA’s internal controls system and risk management process and their effectiveness and outcomes and meet regularly.

b. Review and discuss with management and the external auditors and approve the audited financial statements of the organization and make a recommendation regarding inclusion of those financial statements in any public filing. Also review with management and the independent auditor the effect of regulatory and accounting initiatives as well as off-balance sheet issues in the organization’s financial statements.

c. Confirm the scope of audits to be performed by the external and internal auditors, monitor progress and review results and review fees and expenses. Review significant findings or unsatisfactory internal audit reports or audit problems or difficulties encountered by the external independent auditor. Monitor management’s response to all audit findings.

d. Manage complaints concerning accounting, internal accounting controls or auditing matters.e. Receive regular reports from the Chief Executive Officer, Chief Financial Officer and the MTPA’s other Control

Committees regarding deficiencies in the design or operation of internal controls and any fraud that involves management or other employees with a significant role in internal controls.

f. Support management in resolving conflicts of interest. Monitor the adequacy of the organization’s internal controls and ensure that all fraud cases are acted upon.



PART C

The table below discloses relevant information on the audit committee members

NAME QUALIFICATIONSINTERNAL

OR EXTERNAL

IF INTERNAL,

POSITION IN THE PUBLIC

ENTITY

DATE APPOINTED

DATE RESIGNED

NUMBER OF MEETINGS ATTENDED

Ms. PMK Mvulane

Chartered Accountant and Registered Auditor 2009,Public Practise Examination Independent Regulatory Board for Auditors Accountants (Part2) 2009, Final Qualifying Examination South African Institute of Chartered Accountants (Part1) 2002, Specialist Diploma in Auditing 2001, Bachelor of Commerce in Accounting (Accounting), Bachelor of Commerce in Accounting (Honors),

ExternalNot Applicable

01-Aug-16 Active 5 of 8

Mr. MS Mthembu

Master of Business Leardership (UNISA) 2004, Bachelor of Commerce in Accounting 1992, Diploma in Accounting and Business Studies 1984, Licentiate Diploma in Banking: LIB (IOB) SA Institute of Bankers in South Africa 1998.


01-Jul-13 Active 7 of 8

Ms. N Mtebele

Higher Diploma in Taxation, BTech in Cost and Management Accounting, National Diploma in Cost and Management Accounting


01-Apr-13 6-Mar-17 3 of 8

Ms. SFS Makhathini

Qualified Chartered Accountant CA: SA, saica Articles - TIPP Auditing, Honours in Bachelor of Accounting Sciences (UNISA), Post Graduate Diploma in Accounting Sciences, Diploma in Accounting Sciences (UNISA), Bachelor of Commerce in Accounting (Wits University)


01-Apr-16 Active 5 of 8



NAME QUALIFICATIONSINTERNAL

OR EXTERNAL

IF INTERNAL,

POSITION IN THE PUBLIC

ENTITY

DATE APPOINTED

DATE RESIGNED

NUMBER OF MEETINGS ATTENDED

Ms. MS Nee’Nkgadima

LLB Degree - University of Limpopo, School of Legal Practice Johannesburg Law School, Admitted Attorney Law Society of Northen Province, Member Black Lawyers Association, Member Women Lawyers Association


01-Aug-16 31-Aug-16 1 of 8

Ms. TE Mawelele

LLM Corporate Law, LLB, AIPSA Diploma (Insolvency Law)


01-Jul-1331-Jul-2016 (term ended)

1 of 8

Mr. TF Keetse

B-Tech Marketing, Global Leardership Certificate - Duke CE India - 2009, MAP - Wits, Sales and Channel Leardership - Insead Business School France, Graduate Diploma in International Marketing - UNISA 1999,


01-Apr-1331-Jul-2016 (term ended)

1 of 8

Ms. BN Mzuzu

B.Proc Degree (University of Fort Hare), Practical Legal Training School, (Law Society of the Cape of Good Hope), MS Windows Certificate - Windows 98, Debt Collection Course (Legal Interact), Conveyencing Practice Course (Legal Education and Development - Pretoria)


23-Mar-17 Active 0 of 8

8. COMPLIANCE WITH LAWS AND REGULATIONS

The Agency ensured compliance with applicable legislation as follows:MTPA Act, PFMA and Treasury Regulations

Complied by compiling and submitting the following documents:• 2015/2016 Annual Report• Four quarterly reports for the year 2016/2017• 2017/2018 Annual Performance Plan• Board members fulfilled their fiduciary obligations by holding a minimum of 4 Board meetings as required by

the PFMA and Companies Act



PART C

9. FRAUD AND CORRUPTION

MTPA has committed itself to actively combat fraud and all other acts of dishonesty on a zero-tolerance basis. The foundations have been laid to ensure the development of anti-fraud prevention strategy policy and plan. These policies and strategies are designed to align MTPA’s anti-fraud functions with the PFMA. In line with the implementation of its Fraud and Corruption prevention Strategy, the entity has published the fraud and corruption reporting hotline number on its website. Cases reported via the national anti-corruption hotline are referred to the office of the CEO, who appoints an investigative officer to facilitate the investigation of alleged fraud or corruption. Where fraud or corruption is detected or suspected, disciplinary proceedings, prosecution or action aimed at the recovery of losses are initiated.

MTPA implemented a five year Fraud and Corruption (Zero Tolerance) campaign in 2010 in partnership with Deloitte. This campaign involved the following:

• Review of the Fraud Prevention and Response Plan• The anti-crime prevention initiative• The awareness campaign with all MTPA staff and some selected stakeholders

10. MINIMISING CONFLICT OF INTEREST

The Supply Chain Management and the Code of Conduct policies are implemented in all procurement processes. The policies were developed in line with the Treasury Regulations and the code of conduct is issued in accordance with the framework for supply chain management, section 74(4) (c) of the PFMA.

MTPA is therefore required to align this to Treasury Regulations and to issue a code of conduct for all officials involved in supply chain management processes.

All officials involved in the procurement process are made aware of the requirements of supply chain management procedures and the code of conduct. Officials who are involved in procurement should:

• Not take improper advantage of their previous office after leaving their official position in the Public Service.• To the extent of their position, declare any business, commercial and financial interests or activities undertaken

for financial gain that may raise a possible conflict of interest;• Not place themselves under any financial or other obligation to outside individuals or companies and

organisations that might seek to influence them in the performance of their official duties; and • Be or are accountable for their decisions and actions to the public and use public property scrupulously;• Record and account for all transactions conducted by a particular practitioner in an appropriate accounting

system i.e. all transactions (requisitions/orders/invoices and payments should be captured on the appropriated financial system. Practitioners should not make any false or misleading entries into the system for any reason whatsoever;

• All officials on the bid committees are required to declare their interest annually, cleared to the level of confidentiality.

During the period under review no instances of conflict of interest were identified.



11. CODE OF CONDUCT

The Agency has a Code of Ethics as part of the Human Resource Policies. This Code is intended to raise ethical awareness and to act as a guide to employees of the MTPA. The Code contains ethical and moral standards to which employees are expected to conform. Contravention of the Code is dealt with in terms of the Disciplinary Procedure of the Agency.

12. HEALTH, SAFETY AND ENVIRONMENTAL ISSUES

The Agency continues to provide assistance to the employees through the Employee Wellness Programme. In compliance with the occupational Health and Safety Act, 1993 (Act no.85 of 1993) the Agency appointed Health and Safety representatives accordingly. Occupational Health and Safety Committee was established to assist in monitoring compliance with legislation in all the work stations. Ongoing inspections were conducted to identify occupational hazards and recommend remedial actions.

13. COMPANY SECRETARY/BOARD SECRETARIAT

In the period under review, the role and responsibilities of the Board Secretariat was the following:

• Compliance in terms of the King IV report, Company’s Act, PFMA and MTPA Act;• Coordination of Board and Board Committee meetings;• Keeping of Board and Board related documents;• Monitoring Board compliance;• Advising the Board as a collective and as individuals;• Ensuring that the Board is properly inducted;• Identifying training needs of Board Members;• Writing of Minutes and Reports;• Managing the Board Office.

14. SOCIAL RESPONSIBILITY

The Agency did not contribute to any social responsibility programmes during the period under review.

15. AUDIT COMMITTEE REPORT

Please refer to the Annual Financial Statements (Part E)


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PART C

Geotrail


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Part D: Human Resource Management


PART D


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1. INTRODUCTION

Overview of HR matters at the public entity

Efforts were focused on providing business support on integrated human resource management services, legal services and information communication and technology services. Whilst the placement process was concluded, for the year under review the Agency initiated the appeals process facilitated by a Senior CCMA Commissioner, related to the implementation of the 2014 revised organisational structure.

In an attempt to attain stability at the strategic level the Agency appointed the Chief Financial Officer, Head Tourism, Board Secretary and the Senior Manager Legal Services, the remaining strategic position will be prioritised in the next financial year. The staff turnover rate was maintained within the set target of 5%. The inability to fill critical vacancies due to a moratorium has created some challenges in achieving some set targets and generally weakened the Agency in achieving optimal operational excellence.

Set HR priorities for the year under review and the impact of these priorities

The Agency continued to successfully implement skills development programmes through a workplace skills plan with a view to address identified skills gap and subsequently improve operational efficiency. The implementation of the employee health and wellness programme has to a greater extent contributed to the healthy and productive workforce in the various work stations.

Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce

Attracting and recruiting skilled employees by following an approach of identifying functional competencies for various occupational categories. To ensure compliance and the eradication of barriers the agency will identify employment equity targets and set numeric goals for consideration in the recruitment processes

Employee performance management framework

The implementation of the performance management and development system was facilitated for all programmes in line with the policy on Performance Management and Development System including quarterly performance reviews for the year under review, however challenges were experienced in the final implementation of the system and attempts to resolve the matter are in progress. Workshops were conducted on the implementation of the system accordingly.

Employee wellness programmes

The Health and Safety function of the Agency implemented its support programmes focusing on the mainstreaming of the pillars as guided by the national framework on employee health and wellness programmes namely; Health and Productivity Management, HIV and AIDS in the workplace and Wellness Management.

The Agency conducted the following Health and Wellness workshops and activities

• Consumer Education workshop • 2016 Wellness Games • World Aids Day

HUMAN RESOURCE MANAGEMENT


Highlight of challenges and achievements faced by the public entity

The entity experienced a strain and instability at the strategic level over years mainly as a result of failure to fill both executive and strategic positions. The gradual filling of executive positions will enhance the earnest efforts towards restoring confidence on the ability of the entity to deliver on its mandate and also rebuild trust with the relevant stakeholders. There is an anomaly of high proportion employee costs against operational costs contributed by various historical factors. In the next financial year the Agency has prioritised the development of a Human Resource plan in order to enhance the corporate performance of the Agency. The inability to fill critical vacancies creates institutional risk in many ways such as inadequate segregation of duties, heavy reliance on key personnel and interns which compromises the execution of the core mandate. The slow implementation of the Organisational Development process facilitated by the shareholder has derailed the initiative to revise the current organisational structure.

The Agency implemented the electronic document management system (SharePoint portal) with an intention to enhance poor information and knowledge management as well as promoting accountability and good governance. The absence of a disaster recovery site remains a challenge however efforts are underway to implement a remote recovery site in the next financial year. The agency obtained an approved File Plan from the Provincial Archives and same was implemented accordingly in order to promote accountability, transparency and efficient record keeping. The Employment Equity Act (EEA) section 21 report was submitted to the Department of Labour during the reporting period. In compliance with the EEA the work environment barriers were investigated in the work stations and subsequently the action plan was presented to MANCO for implementation.

Future HR plans /goals

The development of the Human Resource Plan is one of the critical goals to fulfil the manpower requirement aimed at linking business strategy and its operations.

A process is underway to conduct a skills audit with a view to obtain reliable skills profile for the agency and recommendations for skills development programmes where applicable.

Review of the current organisational structure with an intention to realign with the newly approved corporate strategy as well as the core mandate is underway. Await finalisation of the organisational development programmes facilitated by the shareholder.

Review of the Employment Equity Plan as required by the Act.

HUMAN RESOURCE MANAGEMENTcontinued...


PART DHUMAN RESOURCE MANAGEMENT

continued...

2. HUMAN RESOURCES OVERSIGHT STATISTICS

Personnel cost by programme

PROGRAMME

TOTAL EXPENDITURE

FOR THE ENTITYR’000

PERSONNEL EXPENDITURE

R’000

PERSONNEL EXPENDITURE

AS A PERCENTAGE

OF TOTAL EXPENDITURE

%

NUMBER OF EMPLOYEES

AVERAGE PERSONNEL COST PER EMPLOYEE

R’000

Executive Office 68 835 15 914 23.1% 19 838

Office of the CFO 26 415 15 150 57.4% 22 689

Corporate Services 30 400 15 759 51.8% 28 563

Tourism 30 191 18 722 62.0% 29 646

Biodiversity Conservation 217 279 191 926 88.3% 549 350

TOTAL 373 119 257 471 65.5% 647 398

Personnel cost by salary band

LEVELPERSONNEL

EXPENDITURE R’000

PERCENTAGE OF PERSONNEL

EXPENDITURE TO TOTAL PERSONNEL

COST%

NUMBER OF EMPLOYEES

AVERAGE PERSONNEL COST

PER EMPLOYEER’000

Top Management 4 746 2% 3 1 582

Senior Management 16 624 6% 16 1 039

Professional qualified 94 368 37% 132 715

Skilled 34 879 14% 78 447

Semi-skilled 69 069 27% 227 304

Unskilled 37 785 15% 191 198

TOTAL 257 471 100% 647 398


Performance rewards

No performance rewards were offered this financial year

Training cost

PROGRAMMEPERSONNEL

EXPENDITURER’000

TRAINING EXPENDITURE

R’000

TRAINING EXPENDITURE

AS A PERCENTAGE

OF PERSONNEL COST PER

PROGRAMME%

NUMBER OF EMPLOYEES

TRAINED(INCLUDING

SHORT-TERM)

AVERAGE TRAINING COST PER EMPLOYEE

R’000

Executive Office 15 914 17 0.1% 5 3

Office of the CFO 15 150 50 0.3% 14 4

Corporate Services 15 759 353 2.2% 40 9

Tourism 18 722 4 0.0% 2 2

Biodiversity Conservation 191 926 1 779 0.9% 1 046 2

TOTAL 257 471 2 203 0.9% 1 107 2

Employment and vacancies

PROGRAMMENUMBER OF EMPLOYEES

APPROVED POSTS VACANCIESPERCENTAGE OF

VACANCIES%

Executive Office 19 24 5 21%

Office of the CFO 22 36 14 39%

Corporate Services 28 55 27 49%

Tourism 29 54 25 46%

Biodiversity Conservation 549 960 411 43%

TOTAL 647 1129 482 43%

SALARY BANDNUMBER OF EMPLOYEES

APPROVED POSTS VACANCIESPERCENTAGE OF

VACANCIES%

Top Management 3 6 3 50

Senior Management 16 23 7 30%

Professional qualified 132 215 83 39%

Skilled 78 186 108 58%

Semi-skilled 227 410 183 45%

Unskilled 191 289 98 34%

TOTAL 647 1129 482 43%



PART D

Employment changes

SALARY BANDEMPLOYMENT AT

BEGINNING OF PERIOD

APPOINTMENTS TERMINATIONSEMPLOYMENT AT

END OF THE PERIOD


Senior Management 11 0 1 10

Professional qualified 136 0 0 136

Skilled 82 0 4 78

Semi-skilled 240 0 12 228

Unskilled 196 0 8 188

TOTAL 669 0 25 644

Reason for staff leaving

REASON NUMBERPERCENTAGE OF TOTAL NUMBER OF

STAFF LEAVING%

Death 6 0.93%

Resignation 2 0.31%

Dismissal 0 0%

Retirement 15 2.33%

Health 2 0.31%

Expiry of contract 1 0.16%%

Other 0 0%

TOTAL 26 4.04%

Labour Relations: Misconduct and disciplinary action

NATURE OF DISCIPLINARY ACTIONS NUMBERVerbal Warning 0

Written Warning 0

Final Written Warning 9

Dismissal 1

Demotion 1

Suspension 2

Precautionary suspension 5

Mediation 0



Equity target and employment equity status

LEVELS

MALE

AFRICAN COLOURED INDIAN WHITE

CURRENT TARGET CURRENT TARGET CURRENT TARGETCUR-RENT

TARGET

Top Management 4 3 0 0 0 0 0 0Senior Management 5 10 0 0 0 0 2 2Professional qualified 56 64 1 2 0 1 30 30Skilled 33 39 0 1 0 1 2 4Semi-skilled 180 219 1 6 0 2 0 10Unskilled 63 65 0 0 0 0 0 0TOTAL 341 400 2 9 0 4 34 46

*Targets are as per the EE Plan up to December 2019

LEVELS

FEMALE

AFRICAN COLOURED INDIAN WHITE

CURRENT TARGET CURRENT TARGET CURRENT TARGETCUR-RENT

TARGET

Top Management 0 3 0 0 0 0 0 0

Senior Management 8 8 0 1 0 0 0 1

Professional qualified

33 40 1 2 1 2 9 12

Skilled 36 37 1 1 1 1 5 6

Semi-skilled 47 80 0 5 0 2 0 10

Unskilled 125 130 0 0 0 0 0 0TOTAL 249 298 2 9 2 5 14 29

*Targets are as per the EE Plan up to December 2019

LEVELS

DISABLED STAFF

MALE FEMALE

CURRENT TARGET CURRENT TARGET


Senior Management 0 0 0 10

Professional qualified 0 1 2 1

Skilled 0 2 2 1

Semi-skilled 5 5 0 1

Unskilled 3 3 5 0

TOTAL 8 11 9 13Targets are as per the EE Plan up to 2016


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Tel: +27 13 759 5300Fax: +27 13 752 4186


www.mpumalanga.com

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PART D

Swazi and Ndebele cultures


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Part E: Financial Information


PART E


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Country of incorporation and domicile South AfricaNature of business and principal activities

To perform its duties in line with the Mpumalanga Tourism and Parks Agency Act 5 of 2005. Mpumalanga Tourism and Parks Agency’s (hereinafter ‘’MTPA’’) main shareholder is the Department of Economic Development and Tourism formerly DEDET (hereinafter “DEDT”) from which it receives it’s funding.

Board Members in office during the reporting period

Mr. Nzima TJ (Chairperson) Appointed 01 March 2016 to 29 February 2020Ms. Shabangu-Mndawe NR (Deputy Chairperson) Appointed 01 March 2016 to 29 February 2020Ms. Mzuzu NB Appointed 01 March 2016 to 29 February 2020Ms. Nkambule TB Appointed 01 March 2016 to 29 February 2020Mr. Gololo CL Appointed 01 March 2016 to 29 February 2020

Ms. Masekaomeng MS (nee’ Nkgadima)

Appointed 01 March 2016 to 31 August 2016 (Resigned)

Mr. Mthombeni SG Appointed 01 March 2016 to 29 February 2020Ms. Makhathini SFS Appointed 01 March 2016 to 29 February 2020Ms. Sekhitla JS Appointed 01 March 2016 to 29 February 2020Dr. Magome DT Appointed 01 March 2016 to 29 February 2020Mr. Keetse TF Appointed 01 March 2016 to 29 February 2020

Ex officio Board Members Mr. Mgidi JS (Acting Head of Department) Term ended 30 June 2016Mr. Mkhize MW (Head of Department) Appointed 01 July 2016 to dateMr. Nobunga BJ (Chief Executive Officer) Appointed 01 April 2017 to dateMr. Sibiya VA (Acting Chief Executive Officer) Appointed 01 July 2015 to 31 March 2017

Registered office Samora Machel Drive

Hall’s Gateway

Mataffin

Mbombela1200

GENERAL INFORMATION


Business address Samora Machel Drive

Hall’s Gateway

Mataffin

Mbombela1200

Postal address Private Bag X11338

Mbombela1200

Bankers Standard Bank and,

First National Bank of South Africa LimitedAuditors The Auditor General South Africa

Company Secretary Ms. Hlahane P (Appointed 01 May 2015 to date)

Audit committee external independent members for the reporting period

Ms. Mvulane P (Chairperson) (Appointed 01 August 2016)Ms. Mawelele TE (Term ended 31 July 2016)Mr. Mthembu SMr. Keetse TF (Term ended 31 July 2016) Ms. Mtebele N (Resigned 06 March 2017)Ms. Makhathini SFS Ms. Masekaomeng (nee’ Nkgadima) MS (Resigned 31 August 2016)

GENERAL INFORMATIONcontinued...


PART E

The reports and statements set out below comprise the Annual Financial Statements presented to the Stakeholders:

INDEX PAGE

Statement of Responsibilities for the Annual Financial Statements 100

Report of the Chief Executive Officer 101-102

Audit Committee Report 103-105

Report of Accounting Authority 106-108

Auditor General’s Report 109-116

Statement of Financial Position as at 31 March 2017 117

Statement of Financial Performance for the year ended 31 March 2017 118

Statement of Changes in Net Assets for the year ended 31 March 2017 119

Cash Flow Statement for the year ended 31 March 2017 120

Statement of Comparison of Budget and Actual Amounts 121-123

Accounting Policies for the year ended 31 March 2017 124-138

Disclosure notes to the Annual Financial Statements for the year ended 31 March 2017 139-163

The following supplementary information does not form part of the Financial Statements and is unaudited:Detailed Income statement 164

CONTENTS


The Public Finance Management Act requires the Board Members of the MTPA to ensure that MTPA keeps the full and proper records of its financial affairs. The Annual Financial Statements should fairly present the state of affairs of MTPA, and its financial position at the end of the year in terms of the prescribed standards of Generally Recognised Accounting Practices.

The Board Members are responsible for monitoring the preparation of the Annual Financial Statements. The Auditor General South Africa is responsible for independently auditing and reporting on the Annual Financial Statements.

The Annual Financial Statements are prepared in accordance with the prescribed standards of Generally Recognised Accounting Practices, as per Directives 5 2014; (Appendix G) issued by the Accounting Standards Board (ASB) and incorporate disclosure in line with the accounting policies of the MTPA. The Annual Financial Statements are based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgments and estimates and are prepared on the going concern basis.

MTPA is not entirely comfortable with the current level of financial support from the Provincial Government, and although all indications are that the MTPA will continue to be sustainable and will be able to meet its obligations better going forward, the recent reductions in the funded budget will impact on the ability of the agency to deliver on all of its mandates. In order to accommodate the anticipated budgetary constraints, Management have prioritized deliverables, focusing on core mandates. The view of Management expressed above provides additional assurance as to the continued sustainability of the MTPA. Additional information with regards to going concern is included in this annual report.

To enable the Board Members to discharge the above responsibilities, the MTPA Board developed, and maintains a system of internal control. The internal controls include a risk based system of internal accounting and administrative controls designed to provide reasonable but not absolute assurance that assets are safeguarded and that transactions are executed and recorded in accordance with generally accepted business practices and the MTPA’s policies and procedures. These controls are implemented by trained, skilled personnel with appropriate segregation of duties, are monitored by Management and include a comprehensive budgeting and reporting system operating within strict deadlines and an appropriate control framework.

The system of internal control is designed to provide cost effective assurance that assets are safeguarded and that liabilities and working capital are efficiently managed. The agency continues to function with a high vacancy rate, and this does impact on the segregation of duties within certain functions. Management remains confident that despite this, the system of internal control applied by the MTPA over financial and risk management is in general effective, efficient and transparent.

As part of the system of internal control, the MTPA’s internal audit function conducts operational, financial and specific audits and co-ordinates audit coverage with the external auditors. The MTPA’s Internal Audit function is outsourced to external consultants.

The Annual Financial Statements for the year ended 31 March 2017 set out on pages 117 -163 were approved on 25 August 2017 by the Board of the MTPA appointed in terms of the MTPA Act, 2005 (Act No 5 2005) which has assumed the responsibilities of the Board and are signed on its behalf by:

__________________________Mr. TJ Nzima

__________________________Mr. VA Sibiya

Chairperson of the Board Acting Chief Executive Officer

STATEMENT OF RESPONSIBILITIES FOR THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017


PART EREPORT OF THE CHIEF EXECUTIVE OFFICER

for the year ended 31 March 2017





The agency continued to market the province as a world class tourism destination in various trade and consumer shows around the globe. During the year under review, the province was showcased at some of the key platforms including the annual tourism lndaba in Durban, the SAT UK School roadshow in four cities in the UK, the IMEX in Frankfurt and the IBTM in Barcelona. We also participated in the regional trade shows in Swaziland and Mozambique. A number of domestic trade workshops were also conducted in Cape Town, Johannesburg and Pretoria. The Mpumalanga Convention Bureau, located within the MTPA, was launched in 2016.During the period under review, we continued our ongoing efforts in facilitating the effective training of emerging entrepreneurs active in tourism and tourism-related business activities. Our interventions provided an enabling environment for skills transfer and knowledge sharing. We also offered a vital advisory service for the benefit of newcomers to the tourism environment in order to drive the transformation agenda.

An allocation of R18 million was made available by the Province for the upgrade of certain tourism infrastructure at the Blyde Canyon and Manyeleti Nature Reserves. As a result significant improvements were made on view sites and accommodation facilities. New infrastructure includes a modern day visitor facility and caravan camping site at Manyeleti. Further, the once famous Blyde hiking trails were resuscitated. This new infrastructure will result in increased revenue for the MTPA.

Given the value of its asset base, the MTPA is under constant pressure to increase its revenue generation. The enabling legislation also empowers the entity to initiate commercial transactions that can assist in improving its revenue generation. In this regard, the MTPA has established a Commercial Operations Unit that will solely focus on this aspect. Appropriate guidelines have been established to ensure proper governance in these activities, taking into account ecological limits within which development is desirable. Particular attention has been given to the management of current concessions on certain nature reserves. A number of these concession agreements have been inherited from previous administrations and Limpopo Province, and therefore, do not necessarily comply with current Public Private Partnership principles. Others have been a subject of unresolved disputes. A regularization


process is underway to clear all disputes and align agreements with current principles, and to develop the capacity required for concession management. The success of this intervention was realised in the recovery of some top up concession fees amounting to over R3 million.

This renewed business-like approach has resulted in a number of opportunities identified in the reserves. Total revenue grew from R29, 8m in 2015/2016 to R37, 9m in 2016/2017, representing an increase of 29% year on year.









REPORT OF THE CHIEF EXECUTIVE OFFICER (continued)for the year ended 31 March 2017


PART EAUDIT COMMITTEE REPORT


We are pleased to present our report for the financial year ended 31 March 2017.

AUDIT COMMITTEE MEMBERS AND ATTENDANCE

The Audit Committee consists of the members listed hereunder and should meet at least four times per annum as per its approved terms of reference. During the current year, eight meetings were held.

NAME ROLE ATTENDED

Ms. PMK Mvulane: Chairperson (1 August 2016) Chairperson 5

Mr. MS Mthembu (01 April 2013) External Member 7

Ms. SFS Makhathini (01 April 2016) External Member 5

Ms. N Mtebele (Resigned 6 March 2017) External Member 3

Ms. MS Nee’ Nkgadima (Resigned 31 Aug 2016) External Member 1

Ms. TE Mawelele (Term ended 31 July 2016) External Member 1

Mr. TF Keetse (Term ended 31 July 2016) External Member 1

Ms. BN Mzuzu (23 March 2017) External Member 0

AUDIT COMMITTEE RESPONSIBILITY

The Committee reports that it has complied with its responsibilities arising from Section 38 (1)(a) of the Public Finance Management Act 1 of 1999 and Treasury Regulations 3.1.

The Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee charter, has regulated its affairs in compliance with this charter, and has discharged its responsibilities as contained therein. The charter is reviewed annually and adopted by the committee on approval by the Accounting Authority.

INTERNAL AUDIT

The Committee co-ordinates and monitors the activities of the internal audit function. Through this, the Committee is able to report on the effectiveness of the internal audit. The internal audit function was co-outsourced and operational for the financial year under review even though there were budget constraints.

The Committee has reviewed the Internal Audit Reports which were prepared as per approved the risk based three year rolling internal audit plan. The reports were recommended to the Accounting Authority for adoption. The Committee is satisfied with the effectiveness of the internal audit function.

EFFECTIVENESS OF INTERNAL CONTROLS

The Committee assessed the effectiveness of the internal controls and reviewed the risk assessment process, as follows:

• Attended the workshop with all key stakeholders reviewing APP which included strategic risks assessment; • Considered the effectiveness of the Agency risk assessment processes as on going by management;


AUDIT COMMITTEE REPORT (continued...)for the year ended 31 March 2017

• Monitored the follow up process on all findings by the auditors to ensure findings are dealt with and addressed at root causes; in most cases, the root cause were not addressed and consequence management was not executed.

• Sought assurance from management that action is being taken on related issues identified by auditors. The assurance were not adequate to deal with historical issues in relation to previous audit findings, human resources function, and performance management including filling up of key vacancies.

• Provided guidance and advice to Management and the Accounting Authority strengthening over risk management processes, financial reporting and performance information when we reviewed quarterly reports.

The Committee reviewed the internal audit reports; where there were weaknesses identified within the Agency and considered the adequacy of management responses to ensure the risk exposure is reduced and there is continuous improvement within the control environment. The management corrective action were not adequate to deal with the system or processes to ensure such weaknesses don’t arise in future or current year.

The Committee is not satisfied that the Agency is continually focused on maintaining effective levels of internal controls since most of audit findings raised by both Internal Auditors and Auditor General South Africa are repeated in the current year. The Committee concur with auditors that internal controls were not effective and reliable.

A matter of concern to the Audit Committee is the fact that the Agency is currently not implementing all internal audit action plans agreed upon.

INYEAR MANAGEMENT AND QUARTERLY REPORTING

The administration of quarterly reports submitted in terms of the PFMA and Division of Revenue Act were partly adequate according to internal audit results and management assurances.

EVALUATION OF FINANCIAL STATEMENTS

The Audit Committee has:

• reviewed and discussed the audited annual financial statements to be included in the annual report with the agency;

• reviewed the changes in accounting policies and practices;• Considered the appropriateness, adoption and consistent application of the South African Statement of

Generally Recognised Accounting Practices adopted by the Accounting Authority;• Considering the quality and timeliness of the financial information available to the Committee for oversight

purposes during the year;• Reviewed the financial statements of the Entity for the year ended 31 March 2017 and is satisfied that they

comply relevant provisions of the Public Finance Management Act and the South African Statement of Generally Recognised Accounting Practices;

• evaluated the audited annual financial statement for the consistent application of accounting policies and practices;

• reviewed the annual financial statements for abnormal and/or significant transactions of the agency and the disclosure thereof; and

• sought explanations for all significant variances in the annual financial statements as compared to the prior year.


PART E

EVALUATION OF REPORTING ON PREDETERMINED OBJECTIVES

The Audit Committee has to the extent possible:

• reviewed the compliance with the National Treasury Guidelines for the preparation of the annual report;• reviewed the alignment of reporting to the annual performance plan;• reviewed the consistency of quarterly reporting to the audited annual report; and• reviewed whether the performance reported is in agreement with portfolio of evidence.

AUDITOR GENERAL SOUTH AFRICA

We have reviewed the entity’s implementation plan for audit issues raised in the previous year and we are not satisfied that all the matters have been adequately resolved.

The Audit Committee concurs with the Auditor General South Africa’s conclusions on the annual financial statements and predetermined objectives.

GENERAL

The Audit Committee strongly recommends that the entity must prioritise the adequate and effective implementation and frequent monitoring of the audit action plans for both internal and external audit together with all other recommendations made by the Audit Committee in order to achieve the required effectiveness in governance, accountability and clean administration.

____________________Ms. PMK MvulaneChairperson of the Audit CommitteeDate: 31 July 2017

AUDIT COMMITTEE REPORT (continued...)for the year ended 31 March 2017


REPORT OF ACCOUNTING AUTHORITY for the year ended 31 March 2017

1. BACKGROUND

MTPA is a juristic person established in terms of the MTPA Act (Act 5 of 2005) and is registered as a Schedule 3C Public Entity in terms of the PFMA Act (Act 1 of 1999). The MTPA’s main shareholder is the Department of Economic Development and Tourism (hereinafter ‘’DEDT’’) from which it receives its funding.

2. REVIEW OF ACTIVITIES MAIN BUSINESS AND OPERATIONS

Main business and operations

The objective of the MTPA is to fulfills its mandate in terms of the MTPA Act (Act 5 of 2005), which provides for the management and promotion of responsible Tourism and Nature Conservation in the Province and to ensure sustainable utilisation of natural resources for the benefit of everyone in the Province. The MTPA is committed to showcase Mpumalanga’s scenic beauty, diverse wildlife, adventure activities, culture and heritage.

Land Claims / Co–Management/ Settlement Agreements

MTPA faces a challenge in that the majority of the nature reserves under its management are subject to land claims from the adjacent communities. MTPA has consequently entered into co-management and settlement agreements with some of land claimants, in cases where land ownership has been authenticated by the Regional Land Claims Commission (RLCC); i.e. Mdala, Mkhombo, and Mabusa Nature Reserves (in 2010/2011) and Songimvelo Nature Reserve (in 2012). The RLCC however, is still to formally transfer the land (title deeds) to these successful land claimants.

In certain instances, the land is subject to contested land claims. MTPA continues to endeavour to assists RLCC to settle these claims in our priority reserves. These contested land claims negatively affect MTPA’s ability to realise the full potential of the conservation and tourism capacity of the land. However, this has no impact on the annual financial statements for the period under review, as MTPA, through its provincial legislative mandate; has the right to use, manage, preserve and develop all the reserves according to the acceptable recognised standards and legislation.

The operating results and state of affairs of the MTPA are fully set out in the attached Annual Financial Statements.

2017 2016Financial Performance R RGrant received 304 387 100 307 898 000

Conditional grant - Expanded Public Works Programme (Hereafter EPWP”) 2 911 000 2 538 000

Zithabiseni 21 510 000 -

Infrastructure upgrade 18 000 000 -

(Deficit) (15 921 005) (5 737 115)

Total assets 473 378 720 476 817 289

Total liabilities 49 265 780 34 838 859


PART E

3. GOING CONCERN

We draw attention to the fact that at 31 March 2017 MTPA had a net asset value of R 424 112 940 (Restated 2016: R441 978 430) and that the MTPA’s current liabilities does exceed its current assets by R 8 250 871 (Restated 2016:R9 374 444) , the current liabilities includes a leave provision of R14 927 901 (2016 : R10 116 763), this provision will not strain the cash flow requirements of the entity due to the leave policy that does not allow voluntary encashment of leave. The board after having reviewed the projected cash flows for the foreseeable future and management’s assessment of MTPA’s ability to operate as a going concern, has a reasonable expectation that the agency have adequate resources to continue its operations as a going concern for the foreseeable future.

4. EVENTS AFTER REPORTING DATE

New CEO was appointed on the 1 April 2017.

The case between Barberton Mines and MTPA relating to prospecting rights was ruled in favour of MTPA by the Constitutional Court, since it was considered a protected area and therefore no longer a contingent liability for MTPA.

5. IRREGULAR EXPENDITURE

Irregular expenditure to an amount of R 4 977 412 was identified during this year. Detail of this is disclosed under note 22. MTPA has submitted to Provincial Treasury for condonement of 2016 balances.

6. BOARD MEMBERS FOR THE REPORTING PERIOD

NameMr. Nzima TJ ( Chairperson) Appointed 01 March 2016 to 29 February 2020

Ms. Shabangu-Mndawe NR (Deputy Chairperson) Appointed 01 March 2016 to 29 February 2020

Ms. Mzuzu NB Appointed 01 March 2016 to 29 February 2020

Ms. Nkambule TB Appointed 01 March 2016 to 29 February 2020

Mr. Gololo CL Appointed 01 March 2016 to 29 February 2020

Ms. Masekaomeng MS (nee’ Nkgadima) Appointed 01 March 2016 to 31 August 2016 (Resigned)

Mr. Mthombeni SG Appointed 01 March 2016 to 29 February 2020

Ms. Makhathini SFS Appointed 01 March 2016 to 29 February 2020

Ms. Sekhitla JS Appointed 01 March 2016 to 29 February 2020

Dr. Magome DT Appointed 01 March 2016 to 29 February 2020

Mr. Keetse TF Appointed 01 March 2016 to 29 February 2020

Ex officio Board Members:

Mr. Mgidi JS (Acting Head of Department) Term ended 30 June 2016

Mr. Mkhize MW (Head of Department) Appointed 01 July 2016

Mr. Nobunga BJ (Chief Executive Officer) Appointed 01 April 2017

Mr. Sibiya VA (Acting Chief Executive Officer) Appointed 01 July 2015 to 31 March 2017

REPORT OF ACCOUNTING AUTHORITY (continued...) for the year ended 31 March 2017


7. ZITHABISENI RESORT AND CONFERENCE CENTRE

The Executive Council, at its meeting of 23 August 2015, resolved to transfer the Zithabiseni Resort and Conference Centre to the Mpumalanga Tourism and Parks Agency as a managing authority for the resort. Mpumalanga Tourism and Parks Agency resumed responsibilities as a managing Authority effective 01 April 2016. Further to this effect, the Executive Council approved the option, which promotes joint ownership of the Resort by the State and the Community, but managed by an independent operator (to be appointed) with defined state and community benefits.

The Agency maintains appropriate measures to ensure that the Government grant transferred to Zithabiseni is used for its intended purpose. MTPA receives the Government grant from the Department of Economic Development and Tourism for further transfer to the Resort. The grant is mainly spent on Salaries and Wages. Monitoring on the use of the grant is done through requests for the company’s financial statements and regular reporting by the company through quarterly reports and the review of non-financial performance.

8. ANNUAL FINANCIAL STATEMENTS

These are separate Annual Financial Statements.

9. CONCLUSION

Other than the above, there is nothing that the MTPA Board wishes to draw attention to that has not already been highlighted elsewhere in the Annual Financial Statements, Auditor-General’s Report and Annual Report.

__________________________Mr. TJ Nzima

__________________________Mr. VA Sibiya


REPORT OF ACCOUNTING AUTHORITY (continued...) for the year ended 31 March 2017


PART E

Report of the auditor-general to the Mpumalanga Provincial Legislature on the Mpumalanga Tourism and Parks AgencyReport on the audit of the financial statements

Qualified opinion

1. I have audited the financial statements of the Mpumalanga Tourism and Parks Agency set out on pages 117 to 163, which comprise the statement of financial position as at 31 March 2017, the statement of financial performance, statement of changes in net assets, cash flow statement and statement of comparison of budget information with actual information for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies.

2. In my opinion, except for the effects of the matters described in the basis for qualified opinion section of my report, the financial statements present fairly, in all material respects, the financial position of the Mpumalanga Tourism and Parks Agency as at 31 March 2017, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA).

Basis for qualified opinion

Property, plant and equipment

3. The entity did not recognise all items of infrastructure assets in accordance with GRAP 17, Property, plant and equipment for the year under review and for the previous year. Selected infrastructure assets from the floor amounting to R31 276 861 could not be traced to the fixed asset register. Consequently, property, plant and equipment was misstated. Additionally, there was a resultant impact on the accumulated surplus in the financial statements.

Other income

4. I was unable to obtain sufficient appropriate audit evidence that the entity had properly charged and accounted for all revenue on concessions for the year under review and for the previous year. As the entity had not adequately addressed contract management issues, I was unable to determine whether all revenue relating to other income as disclosed in note 13 to the financial statement had been accounted for. I was unable to confirm the concession revenue by alternative means. Consequently, I was unable to determine whether any further adjustments were necessary relating to concession fees of R4 516 429 (2016: R3 115 580) included in other income of R14 930 559 (2016: R37 704 796) as disclosed in note 13 to the financial statements and receivables from exchange transactions of R3 998 492 (2016: R7 169 752) as disclosed in note 3 to the financial statements.

5. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of my report.

6. I am independent of the public entity in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) together with the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

AUDITOR GENERAL’S REPORTfor the year ended 31 March 2017


7. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion.

Emphasis of matters

8. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Restatement of corresponding figures

9. As disclosed in note 27 to the financial statements, the corresponding figures for 31 March 2016 have been restated as a result of an error in the financial statements of the entity at, and for the year ended, 31 March 2017.

Uncertainty relating to the future outcome of exceptional litigation

10. With reference to note 17 to the financial statements, the entity is the defendant in a land utilisation lawsuit of R740 million and alleged corruption lawsuit of R1,175 million. The entity is opposing the claims. The ultimate outcome of the matters cannot presently be determined.

Material impairments

11. As disclosed in note 3 to the financial statements, the receivables from exchange transactions balance was significantly impaired. The impairment of receivables from exchange transactions amounted to R4 862 617 (2016: R2 494 929), which represented 55% (2016: 26%) of the total debtors. The contribution to the provision for debt impairment was R2 367 688 (2016: R10 759).

Irregular expenditure

12. As disclosed in note 23 to the financial statements, irregular expenditure of R35 957 190 incurred in previous years was awaiting condonation.

Other matter

13. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Revision of the previously issued financial statements

14. The previously issued financial statements of the entity for the year ended 31 March 2017 were revised and re-issued because of a constitutional court ruling that confirmed the non-existence of previously disclosed contingencies information regarding the mining rights on the protected area.

Responsibilities of the accounting authority for the financial statements

15. The accounting authority is responsible for the preparation and fair presentation of the financial statements in accordance with the SA Standards of GRAP and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

16. In preparing the financial statements, the accounting authority is responsible for assessing the public entity’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the accounting authority intends to either liquidate the public entity or cease operations, or has no realistic alternative but to do so.

AUDITOR GENERAL’S REPORT(continued...) for the year ended 31 March 2017


PART E

Auditor-general’s responsibilities for the audit of the financial statements

17. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

18. A further description of my responsibilities for the audit of the financial statements is included in the annexure to the auditor’s report.

Report on the audit of the annual performance report

Introduction and scope

19. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

20. My procedures address the reported performance information, which must be based on the approved performance planning documents of the public entity. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

21. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the public entity for the year ended 31 March 2017:

Programmes Pages in the annual performance report

Programme 5 – tourism 44 - 51

Programme 6 – biodiversity conservation 52 - 57

22. I performed procedures to determine whether the reported performance information was properly presented and whether the performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

23. The material findings in respect of the usefulness and reliability of the selected programmes are as follows:

Programme 6 – biodiversity conservation

Increasing number of tourists visiting protected areas

24. I was unable to obtain sufficient appropriate audit evidence for the reported achievement of the target to increase the



tourism visitor percentage by 10% (93 368) from a baseline of 933 677 per annum by 31 March 2017. This was due to adequate evidence not being provided. I was unable to confirm the reported achievement by alternative means. Consequently, I was unable to determine whether any adjustments were required to the reported achievement.


25. The indicator was reported as ‘number of hectares in the conservation estate’ while there was no target, contrary to the requirements of treasury regulations 28.2.2 and 30.1.3(g).


26. The reported achievement for the target to attend to 4 000 general permit applications received by 31 March 2017 was misstated, as the evidence indicated 5 940 and not 5 074 as reported.

27. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programme:

• Programme 5 – tourismOther matters

28. I draw attention to the matters below.

Achievement of planned targets

29. Refer to the annual performance report on pages 44 to 51 and pages 52 to 57 for information on the achievement of the planned targets for the year and the explanations provided for the under- or overachievement of a significant number of targets. This information should be considered in the context of the material findings on the usefulness and reliability of the reported performance information in paragraphs 24 to 26 of this report.

Adjustment of material misstatements

30. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of the biodiversity conservation programme. As management subsequently corrected only some of the misstatements, I reported material findings on the usefulness and reliability of the reported performance information. Those that were not corrected are included in the basis for qualified conclusion paragraphs.

Report on the audit of compliance with legislation


31. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the public entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

32. The material findings in respect of the compliance criteria for the applicable subject matters are as follows:

Annual financial statements, performance report and annual report

33. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records, as required by section 55(1)(a) and (b) of the PFMA.



PART E

Material misstatements of non-current assets, revenue, expenditure and disclosure items identified by the auditors in the submitted financial statements were corrected and the supporting records were provided subsequently, but the uncorrected material misstatements and supporting records that could not be provided resulted in the financial statements receiving a qualified audit opinion.

Expenditure management

34. Effective steps were not taken to prevent irregular expenditure amounting to R4 977 411 as disclosed in note 23 to the financial statements, as required by section 51(1)(b)(ii) of the PFMA. Most of the irregular expenditure resulted from non-compliance with the Supply Chain Management (SCM) Regulations.

35. Effective steps were not taken to prevent fruitless and wasteful expenditure amounting to R1 567 086 as disclosed in note 21 to the financial statements, in contravention of section 51(1)(b)(ii) of the PFMA. Most of the fruitless and wasteful expenditure resulted from one post being remunerated to two individuals due to challenges at the entity.

Procurement and contract management

36. Quotations were accepted from prospective suppliers who did not submit a declaration on whether they are employed by the state or connected to any person employed by the state, which is prescribed to comply with treasury regulation 16A8.3.

37. Contracts and quotations were awarded to suppliers whose tax matters had not been declared by the South African Revenue Service to be in order, as required by treasury regulation 16A9.1(d) and the Preferential Procurement Regulations.

38. Sufficient appropriate audit evidence could not be obtained that contracts and quotations had been awarded to suppliers whose tax matters had been declared to be in order by the South African Revenue Service, as required by treasury regulation 16A9.1(d) and the Preferential Procurement Regulations.

39. Sufficient appropriate audit evidence could not be obtained that bid adjudication was done by committees composed in accordance with the policies of the public entity, as required by treasury regulation 16A6.2(a), (b) and (c).

40. Sufficient appropriate audit evidence could not be obtained that awards were made only to suppliers who submitted a declaration of past supply chain practices such as fraud, abuse of the SCM system and non-performance, which is prescribed to comply with treasury regulation 16A9.2.

41. Sufficient appropriate audit evidence could not be obtained that contracts were awarded only to bidders who submitted a declaration on whether they are employed by the state or connected to any person employed by the state, which is prescribed to comply with treasury regulation 16A8.3.

42. Contracts were awarded to bidders based on evaluation criteria that were not stipulated in the original invitation for bidding, in contravention of treasury regulation 16A6.3(a) and the Preferential Procurement Regulations.

43. Sufficient appropriate audit evidence could not be obtained that contracts were awarded to bidders based on points given for criteria that were stipulated in the original invitation for bidding and quotations, as required by treasury regulation 16A6.3(a) and the Preferential Procurement Regulations.

44. Sufficient appropriate audit evidence could not be obtained that contracts were awarded to bidders that scored the highest points in the evaluation process, as required by section 2(1)(f) of the Preferential Procurement Policy Framework Act of South Africa, 2000 (Act No. 5 of 2000) (PPPFA) and its regulations.



45. A contract was awarded to a bidder based on functionality criteria that differed from those stipulated in the original invitation for bidding, in contravention of preferential procurement regulation 4.

46. Bid documentation for the procurement of commodities designated for local content and production did not stipulate the minimum threshold for local production and content, as required by preferential procurement regulation 9(1).

47. Commodities designated for local content and production were procured from suppliers who did not submit a declaration on local production and content, as required by preferential procurement regulation 9(1).

48. Sufficient appropriate evidence could not be provided that commodities designated for local content and production were procured from suppliers who met the prescribed minimum threshold for local production and content, as required by preferential procurement regulation 9(5).

49. Sufficient appropriate audit evidence could not be obtained that contracts were awarded to suppliers based on preference points that were allocated and calculated in accordance with the requirements of the PPPFA and its regulations.

Other information

50. The accounting authority of the public entity is responsible for the other information. The other information comprises the information included in the annual report, which includes the directors’ report and the audit committee’s report. The other information does not include the financial statements, the auditor’s report thereon and those selected programmes presented in the annual performance report that have been specifically reported on in the auditor’s report.

51. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

52. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information obtained prior to the date of this auditor’s report, I conclude that there is a material misstatement of this other information, I am required to report that fact.

53. I have read the other information included in the draft annual report and have nothing to report in this regard.

54. I have not yet received the final annual report containing the other information. When I do receive this information, and if I conclude that it contains a material misstatement, I am required to communicate the matter to those charged with governance and to request the other information to be corrected. If the other information is not corrected, I may have to re-issue my auditor’s report amended as appropriate.

Internal control deficiencies

55. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance thereon. The matters reported below are limited to the significant internal control deficiencies that resulted in the basis for the qualified opinion, the findings on the performance report and the findings on compliance with legislation included in this report.



PART E

Leadership

56. Adequate oversight responsibility was not exercised regarding financial and performance reporting and compliance as well as related internal controls.

57. Effective human resource management was not implemented to ensure that vacant key management positions were filled.

58. Policies and procedures that enable and support the understanding and execution of internal control objectives, processes and responsibilities relating to predetermined objectives were not adequately established and communicated to everyone.

59. The developed action plan to address external audit findings was not fully implemented, as recurring audit findings were identified.

Financial and performance management

60. Management did not adequately review the financial statements, as material misstatements were identified during the audit.

61. Management did not implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information was accessible and available to support financial and performance reporting. Information was not always obtained in the required timelines.

62. Management did not implement adequate controls over daily and monthly processing and reconciling of transactions. Misstatements identified in performance reporting could have been avoided if reconciliations of listings to reported information and supporting documents had been adequately performed.

63. Management did not adequately review and monitor compliance with applicable laws and regulations, as evidenced by the compliance findings detailed in this report.

Governance

64. Adequate oversight of performance reporting was not implemented.

Mbombela

25 August 2017



Annexure – Auditor-general’s responsibility for the audit

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on the reported performance information for selected programmes and on the public entity’s compliance with respect to the selected subject matters.

Financial statements

2. In addition to my responsibility for the audit of the financial statements as described in the auditor’s report, I also:

• identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the public entity’s internal control.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting authority.

• conclude on the appropriateness of the accounting authority’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the public entity to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of the auditor’s report. However, future events or conditions may cause the public entity to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Communication with those charged with governance

3. I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting authority that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards.



PART E

2017 Restated 2016

Figures in Rand Note(s) R R

Assets

Current AssetsInventories 2 405 936 534 915

Receivables from exchange transactions 3 3 998 492 7 169 752

Receivables from non-exchange transactions 4 5 140 061 909 309

Cash and cash equivalents 5 27 957 522 13 348 098

37 502 011 21 962 074

Non-Current AssetsProperty, plant and equipment 6 400 593 502 419 572 008

Heritage assets 7 35 283 207 35 283 207

435 876 709 454 855 215

Total Assets 473 378 720 476 817 289

Liabilities

Current LiabilitiesPayables from exchange transactions 9 35 951 508 28 929 609

Project liabilities 10 9 365 799 2 008 384

Long service awards - short term portion 9 435 575 398 525

45 752 882 31 336 518

Non-Current LiabilitiesLong service awards 9 3 512 898 3 502 341

Total Liabilities 49 265 780 34 838 859

Net AssetsContribution from owners 11 70 015 412 70 015 412

ReservesRevaluation reserve 371 219 451 384 492 280

Accumulated deficits (17 121 923) (12 529 262)

Net Assets 424 112 940 441 978 430

Total Liabilities 49 265 780 34 838 859

Total net assets and liabilities 473 378 720 476 817 289

STATEMENT OF FINANCIAL POSITIONas at 31 March 2017


STATEMENT OF FINANCIAL PERFORMANCE for the year ended 31 March 2017

2017 Restated 2016

Figures in Rand Note(s) R R

RevenueRevenue from non-exchange transactions (Grants received) 12 325 298 100 310 436 000Revenue from non-exchange transactions (Other) 12 1 800 471 4 231 710Revenue from exchange transactions 12 26 426 934 16 784 875Gross Surplus 353 525 505 331 452 585Other income 13 14 930 559 37 704 796Operating expenses 13 (385 283 870) (375 820 659)

(16 827 806) (6 663 278)Operating deficitInterest income 14 912 155 930 523Interest expense 15 (5 354) (4 360)Deficit for the year (15 921 005) (5 737 115)


PART E

Figures in Rand Note(s)

Contribution from owners

R

Revaluation reserve

R

Accumulated deficits

R

Total net assets

R

Balance as at 01 April 2015 70 015 412 402 232 181 (29 048 723) 443 198 870

Changes in net assets Prior year Adjustments - - (458 549) (458 549)

Realisation of revaluation surplus - (17 739 903) 17 739 903 -

Net losses recognised directly in net assets - (17 739 903) 17 281 354 (458 549)

Deficit for the year - - (5 737 115) (5 737 115)

Total changes - (17 739 903) 11 544 239 (6 195 664)

Opening balance as at 31 March 2017 70 015 412 384 492 279 (17 504 484) 437 003 207

Prior period error 27 - - 4 975 222 4 975 222

Restated balance as at 01 April 2016 70 015 412 384 492 279 (12 529 262) 441 978 429Deficit for the year - - (15 921 005) (15 921 005)

Realisation of revaluation surplus on buildings - (13 272 829) 13 272 829 -

Correction of concession 27 - - (1 944 485) (1 944 485)

Total changes - (13 272 829) (4 592 661) (17 865 490)

Closing balance as at 31 March 2017 70 015 412 371 219 450 (17 121 923) 424 112 939

Note(s) 11

STATEMENT OF CHANGES IN NET ASSETS for the year ended 31 March 2017


CASH FLOW STATEMENTfor the year ended 31 March 2017

Figures in Rand Note(s)2017

RRestated 2016

R

Cash flows from operating activities

Receipts

Cash receipts from exchange transactions 41 357 492 16 784 875Cash receipts from non-exchange transactions 324 187 571 307 898 000Interest income 912 155 930 523EPWP 2 911 000 2 538 000Other income - 15 313 695

369 368 218 343 465 093

Payments

Employee costs 13 (257 197 868) (252 847 013)Suppliers (94 384 702) (90 219 281)Interest expense 15 (5 354) (4 360)

(351 587 924) (343 070 654)Net cash flows from operating activities 16 17 780 294 394 439

Cash flows from investing activities Purchase of property, plant and equipment 6 (10 528 285) (13 181 174)Cash flows from financing activities

Movement in project liabilities 7 357 415 (3 133 030)

Net (decrease)/ increase in cash and cash equivalents 14 609 424 (15 919 765)Cash and cash equivalents at the beginning of the year 13 348 098 29 267 863Cash and cash equivalents at the end of the year 5 27 957 522 13 348 098


PART E

BUDGET ON ACCRUAL BASIS

Figures in Rand

YTD Approved

budget Adjustments YTD Budget

Actual amounts on comparable

basis

Difference between final

budget and actual Reference

Statement of Financial Performance

Revenue

Revenue from exchange transactions

Sale of goods 2 087 812 - 2 087 812 3 693 478 1 605 666 Note 1

Rendering of services 21 706 433 - 21 706 433 22 733 456 1 027 023 Note 2

Concession fees 3 394 265 - 3 394 265 4 516 429 1 122 164 Note 3

Rental income 85 521 - 85 521 108 370 22 849 Note 4

Recoveries 197 891 - 197 891 251 964 54 073 Note 5

Wildlife Sales 6 420 000 - 6 420 000 2 241 105 (4 178 895) Note 6

Sundry income 308 078 - 308 078 3 463 436 3 155 358 Note 7

Joint project conservation income - - - 6 149 725 6 149 725 Note 8

Interest received 800 000 - 800 000 912 155 112 155 Note 9

Total revenue from exchange transactions 35 000 000 - 35 000 000 44 070 118 9 070 118

Revenue from non-exchange transactionsGovernment grantsGrant allocation 303 896 619 490 000 304 386 619 304 387 100 481

Infrastructure upgrade 18 000 000 - 18 000 000 18 000 000 -

EPWP 2 911 000 - 2 911 000 2 911 000 -

Grant allocation - Zithabiseni 21 000 000 510 000 21 510 000 21 510 000 -

Total revenue from non-exchange transactions 345 807 619 1 000 000 346 807 619 346 808 100 481

Total revenue 380 807 619 1 000 000 381 807 619 390 878 218 9 070 599

ExpenditureCompensation of employees (248 926 605) - (248 926 605) (257 471 474) (8 544 869) Note 10

Board and board committee compensation (1 733 000) - (1 733 000) (1 788 716) (55 716) Note 11

EPWP compensation (2 911 000) - (2 911 000) (2 911 508) (508) Note 12

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS




Figures in Rand

YTD Approved

budget Adjustments YTD Budget


basis



Programme costs (47 488 037) (490 000) (47 978 037) (25 751 677 22 226 360 Note 13

Payment of capital assets (4 601 770) - (4 601 770) (13 751 651) (9 149 881) Note 14

Goods and services (54 147 207) - (54 147 207) (50 654 608) 3 492 599 Note 15

Transfers - Zithabiseni (21 000 000) (510 000) (21 510 000) (21 510 000) -

Total expenditure (380 807 619) (1 000 000) (381 807 619) (373 839 634) 7 967 985

Operating surplus - - - 17 038 584 17 038 584

Joint project conservation expenses - - - (10 168 512) (10 168 512) Note 8

Interest expense - - - (5 354) (5 354)

Ring fenced expenses - - - (494 095) (494 095) Note 16

- - - (10 667 961) (10 667 961)

Surplus / (Deficit) beforetaking into account non-cash items - - - 6 370 623 6 370 623

Budget and Actuals - - - 6 370 623 6 370 623

ReconciliationBasis differenceInsurance non-cash refund 528 719

Increase in provision for bad debts (2 367 688)

Depreciation (29 245 676)

Increase in leave pay accrual (4 811 137) . .

Bonus provision 5 649

Stock adjustment 118 157

Profit/(loss) on fixed assets (271 303)

Non income statement - Capex 13 751 651

Actual Amount in theStatement of FinancialPerformance (15 921 005) Note 17

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS (continued...) for the year ended 31 March 2017


PART E

VARIANCE ON BUDGET

Surplus as per the statement of financial performance

Revenue from exchange transaction

Note 1: Increased focus on game drive activities in Manyeleti Nature Reserves. Note 2: The public holidays during the year had a positive impact as evidenced by the increase in visitor numbers

including the increase of tariffs.Note 3: Recovery of prior year concessions fees since the disputes were resolved in the current yearNote 4: Rental agreement signed for the new tenants at key reserves after new infrastructure upgrade. Note 5: Recovery on staff consumption’s.Note 6: Due to drought experienced in the year the value and the demand for Game declined thus affecting the incomeNote 7: Joint project conservation expenses projects and insurance refunds is included in sundry income but is not

budgeted for as it is incidental in nature outside MTPA normal operations. Note 8: The joint project conservation income and expenses is the joint initiative with SANPARK, SANBI, DST and

other projects, to promote conservation management within the protected areas in the nature reserves. Grants were received that was not budgeted for and consequently neither the joint project conservation expenses. Grant income and expenses cannot be budgeted for, as joint project conservation occurs as and when required by the different parties.

Note 9: Interest income increased as a result of excess cash reserves for ring fenced projects.

Total expenditure variance results from the following:

Note 10: Salary increase negotiated higher than budget and due to grading appeals.Note 11: The overspending of Board remuneration is as a result of special meetings.Note 12: The overspending will be funded through MTPA operational saving.Note 13: requirement of GRAP to reclassify capital expenditure from programme costs to assets. R6.7mfor the year

was transferred to work in progress under Payment of Capital Assets, R3.9 related to prepayment towards the project. Extensive negotiations with claimant communities delayed spending on infrastructure development (R7.7m). Prolonged stakeholder engagement delayed signing of MOA on Flagship project (R1.4m). Protracted legal cases causes sporadic invoicing (R2.1m)

Note 14: included in this maount are assets acquired for the projects Note 15: the savings on goods and services were redirected to offset an overspending on salaries Note 16: This relates to expenditure against the ring fenced monies received in previous financial years. These money

remains a commitment up until the expenditure is incurred.Note 17: Agreed to statement of Financial Performance (SPF).

STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS (continued...)



ACCOUNTING POLICIESfor the year ended 31 March 2017

1. BASIS OF PREPARATION

The Annual Financial Statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practice (GRAP), including any interpretations and directives issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act, (Act No 1 of 1999).

The Annual Financial Statements are prepared on the accrual basis of accounting and incorporate the historical cost conventions as the basis of measurement, except where specified otherwise.

In the absence of an issued and effective Standard of GRAP, accounting policies for material transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with Directive 5.

Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required or permitted by a Standard of GRAP.

The principal accounting policies, applied in the preparation of these annual financial statements, are set out below, which are consistent with those adopted in the prior financial year:

1.1 SIGNIFICANT JUDGEMENTS AND SOURCES OF ESTIMATION UNCERTAINTY

i) These Annual Financial Statements have been prepared based on the expectation that the entity will continue to operate as a going concern for at least the next 12 months.

ii) The Annual Financial Statements have been prepared on accruals basis.iii) Changes in accounting policies are accounted for in accordance with the transitional provisions in the standard.

If no such guidance is given, they are applied retrospectively, unless it is impracticable to do so, in which case they are applied prospectively.

iv) Transactions are accounted for and presented in accordance with their substance and economic reality and not merely their legal form. The substance of transactions or other events is not always consistent with that which is apparent from their legal or contrived form.

v) Presentation and disclosure takes into consideration the materiality of the transaction, which can either be material qualitatively or quantitatively or both.

vi) In preparing the Annual Financial Statements, Management is required to make estimates and assumptions that affect the amounts represented in the Annual Financial Statements and related disclosures. Use of available information and the application of judgements are inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the Annual Financial Statements. Accounting estimates are utilised in determining fair value, total useful lives and remaining useful lives of property, plant and equipment.

1.2 PROPERTY, PLANT AND EQUIPMENT

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are recognised in the Statement of Financial Position initially at cost and thereafter measured at the end of the reporting period at the revalued amount, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are performed with sufficient regularity such that the carrying amounts do not differ materially from those that would be determined using fair values at the end of the reporting period.


PART E

1.2 PROPERTY, PLANT AND EQUIPMENT (CONTINUED)

Any revaluation increase arising on the revaluation of such land and buildings is recognised in other comprehensive income, except to the extent that it reverses a revaluation decrease for the same asset previously recognised in surplus or deficit, in which case the increase is credited to surplus or deficit to the extent of the decrease previously expensed. A decrease in the carrying amount arising on the revaluation of such land and buildings is recognised in surplus or deficit to the extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset.

Depreciation on revalued buildings is recognised in set of Statement of Financial Performance. On the subsequent sale or retirement of a revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly to accumulated deficit. The revaluation reserve in equity related to a specific item of property, plant and equipment is transferred directly to accumulated surplus or deficit as the asset is used. The amount transferred is equal to the difference between depreciation based on the revalued carrying amount and depreciation based on original cost of the asset.

Other fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at each year end. Changes are accounted for as a change in accounting estimate.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in surplus or deficit.

The depreciation rates are in accordance with the MTPA’s asset management policy. Assets are written off over their expected useful lives up to their residual values. The depreciation rates are the following:

Buildings 10-80 yearsLarge capital equipment 25%Furniture and fixtures 20-25%Motor vehicles 33%Small capital equipment 25%Technical furniture and equipment 20%Computer software 33%Infrastructure 10 - 50 years

Large and small capital equipment and technical furniture and equipment have been grouped together for disclosure purposes.

ACCOUNTING POLICIES (continued...)for the year ended 31 March 2017


1.3 HERITAGE ASSETS

Heritage assets are assets, which have a cultural, environmental, historical, natural, scientific, technological, or artistic significance, and are held indefinitely for the benefit of present and future generations.

Classes of heritage assets include conservation areas such as reserves. This land is reflected as a heritage asset of MTPA.

Characteristics often displayed by heritage assets include the following:

• their value in cultural, environmental, educational and historical terms is unlikely to be fully reflected in monetary terms;

• ethical, legal and/or statutory obligations may impose prohibitions or severe stipulations on disposal by sale; · they are often irreplaceable;

• their value may increase over time even if their physical condition deteriorates; • they have an indefinite life and their value appreciates over time due to their cultural, environmental,

educational, natural scientific, technological, artistic or historical significance; and · they are protected, kept unencumbered, cared for and preserved.

Recognition

A heritage asset shall be recognised as an asset if, and only if:

• it is probable that future economic benefits or service potential associated with the asset will flow to the entity; and

• the cost or fair value of the asset can be measured reliably.

MTPA holds heritage assets through conservation areas in the reserves that are regarded as heritage assets. MTPA does not recognise heritage assets, which on initial recognition, do not meet the recognition criteria of a heritage asset because they cannot be reliably measured. Relevant and useful information about them has been disclosed in the notes to the Annual Financial Statements.

Initial measurement

A heritage asset that qualifies for recognition as an asset, shall be measured at its cost. When it is acquired through a nonexchange transaction, it will be measured at its fair value/deemed cost as at the date of acquisition.

Subsequent measurement

After recognition as an asset, a class of heritage assets is carried at its cost less any accumulated impairment losses.

Impairment

MTPA assesses at each reporting date whether there is an indication that it may be impaired. If any such indication exists, MTPA estimates the recoverable amount or the recoverable service amount of the heritage asset.



PART E

1.3 HERITAGE ASSETS (continued)

Transfers

Transfers from heritage assets are only made when the particular asset no longer meets the definition of a heritage asset. Transfers to heritage assets are only made when the asset meets the definition of a heritage asset. The transfer will be made at the carrying value of the heritage asset.

Derecognition

MTPA derecognises heritage assets on disposal, or when no future economic benefits or service potential are expected from its use or disposal. The gain or loss arising from derecognition of a heritage asset is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the heritage asset. Such difference is recognised in surplus or deficit when the heritage asset is derecognised.

1.4 FINANCIAL INSTRUMENTS

Initial recognition

The MTPA classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.

Financial assets and financial liabilities are recognised on the MTPA’s Statement of Financial Position when the MTPA becomes party to the contractual provisions of the instrument.

Receivables from exchange and non-exchange transactions

Trade and other receivables are classified as receivables from exchange transactions and receivables from non-exchange transactions

Trade receivables are measured at initial recognition at fair value less provision made for impairment of these receivables. Short-term receivables and payables are not discounted where the initial credit period granted or received is consistent with terms used in the public sector either through established practices or legislation.

MTPA provides for receivables which are older than 120 days. Appropriate allowances for estimated irrecoverable amounts are recognised in deficit or surplus when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial re-organisation, and default or delinquency in payments are considered indicators that the trade receivable is impaired.

The carrying value of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the income statement within operating expenses. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in the Statement of Financial Performance.



1.4 FINANCIAL INSTRUMENTS (continued)

Payables from exchange transactions and payables from non-exchange transactions

Payables from exchange transactions are carried at the fair value of the consideration to be paid in future for goods or services that have been received or supplied and invoiced or formally agreed with the supplier.

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These are initially and subsequently recorded at fair value.

Other loans and receivables

Other financial assets classified as loans and receivables are initially recognised at fair value plus transaction costs, and are subsequently carried at amortised cost less any accumulated impairment losses.

These financial assets are not quoted in an active market and have fixed or determinable payments.

1.5 TAX

The MTPA is registered as a tax payer in terms of S10(1) of the Income Tax Act, 1962. The institution qualifies as an exempt institution, and is accordingly exempt from South African normal tax in terms of S10(1) of the Income Tax Act, 1962.

1.6 LEASES

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases.

Operating leases

Leases for assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Financial Performance on a straight-line basis over the period of the lease after taking into account any fixed escalation clauses.

Payments made under operating leases are charged to the Statement of Financial Position income on a straight-line basis over the period of the lease after taking into account any fixed escalation clauses. Contingent rents are charged as an expense in the periods in which they are incurred.



PART E

1.7 INVENTORIES

MTPA inventories include consumables, staff uniforms and fuel.

Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition.

Subsequently inventories are measured at the lower of cost and net realizable value.

Inventories are measured at the lower of cost and current replacement cost where they are held for;• Distribution at no charge or for a nominal charge; or • Consumption in the production process of goods to be distributed at no charge or for a nominal charge.

Current replacement cost is the cost the entity incurs to acquire the asset on the reporting date.

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of operations less the estimated costs of completion and the estimated costs necessary to make the sale, exchange or distribution.

When inventories are sold, the carrying amounts of those inventories are recognised as an expense in the period in which the related revenue is recognised. If there is no related revenue, the expenses are recognised when the goods are distributed, or related services are rendered. The amount of any write-down of inventories to net realisable value or current replacement cost and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value or current replacement cost, are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

1.8 IMPAIRMENT OF CASH-GENERATING ASSETS

Cash-generating assets are those assets held by the MTPA for the purpose of generating a commercial return. When an asset is deployed in a manner consistent with that adopted by a profit-orientated MTPA, it generates a commercial return.The MTPA assesses at each reporting date whether there is any indication that an asset or cash-generating unit to which an asset belongs to may be impaired.

When such an indication exists, the MTPA estimates the recoverable amount of the asset. The recoverable amount is the higher of the cash-generating asset’s fair value less costs to sell and its value in use. The value in use is determined as the present value of the estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life.

The future expected cash flows are discounted at a rate that reflects the current market assessment of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.



1.8 IMPAIRMENT OF CASH-GENERATING ASSETS (continued)

If the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired. An impairment loss is recognised immediately in surplus or deficit.

The MTPA assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable amount of that asset and accounts for the reversal of impairment loss if necessary. The increase in the carrying amount of an asset due to the reversal of an impairment loss should not exceed what the carrying amount would have been if no impairment loss had been recognised.

1.9 IMPAIRMENT OF NON-CASH-GENERATING ASSETS

Non-cash-generating assets are those assets held by the MTPA without an intention of generating a commercial return from such asset, such as assets used for general administrative and governance purposes and assets used purely for service delivery. This identification is based on the materiality of cash flows generated from these assets.

The MTPA assesses at each reporting date whether any indications exist that an asset may be impaired. When such an indication exists, the MTPA estimates the recoverable service amount of the asset. The recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use. The value in use is determined by using either the depreciated replacement cost, restoration cost or service unit approach, depending on the availability of data and the nature of the impairment.

If the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired. An impairment loss is recognised immediately in surplus or deficit.

The MTPA assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the MTPA estimates the recoverable service amount of that asset and accounts for the reversal of impairment loss if necessary. The increase in carrying amount of an asset due to the reversal of impairment loss should not exceed what the asset’s original carrying value would have been if no impairment loss were recognised.

1.10 CONTRIBUTION FROM OWNERS

An equity instrument is any contract that evidences a residual interest in the assets of an MTPA after deducting all of its liabilities.

1.11 CONTINGENT ASSETS

Contingent assets are possible assets whose existence will be confirmed by the occurrence or non-occurrence of uncertain future events that are not wholly within the control of the entity. Contingent assets are not recognised, but they are disclosed when it is more likely than not that an inflow of benefits will occur. However, when the inflow of benefits is virtually certain an asset is recognised in the statement of financial position, because that asset is no longer considered to be contingent



PART E

1.12 EMPLOYEE BENEFITS

Short-term employee benefits

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.

The expected cost of bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.

Defined contribution plans

Payments to defined contribution retirement benefit plans are charged as an expense as they fall due.

Payments made to industry-managed (or state plans) retirement benefit schemes are dealt with as defined contribution plans where the MTPA’s obligation under the schemes is equivalent to those arising in a defined contribution retirement benefit plan.

Other long-term employee benefits

Other long-term employee benefits may include, for example:

(a) long-term compensated absences such as long service or sabbatical leave;(b) other long service benefits;(c) long-term disability benefits;(d) bonus, incentive and performance related payments payable twelve months or more after the end of the

reporting period in which the employees render the related service;(e) deferred compensation paid twelve months or more after the end of the reporting period in which it is earned.

Long service awards

Long service awards are provided to employees who achieve certain pre-determined milestones of service within MTPA. The MTPA’s obligation under these plans is valued periodically and the corresponding liability is raised. Payments are set-off against the liability, including notional interest, resulting from the valuation by management and are charged against the Statement of Financial Performance as employee benefits upon valuation.

Gains and losses arising from the experience adjustments and changes in assumptions, is charged or credited to the Statement of Financial Performance in the period that it occurs. These obligations are valued periodically by management.



1.13 PROVISIONS

Provisions are recognised when:

• the MTPA has a present obligation as a result of a past event;• it is probable that an outflow of resources embodying economic benefits or service potential will be required to

settle the obligation; and• a reliable estimate can be made of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.14 REVENUE FROM NON-EXCHANGE TRANSACTION: GOVERNMENT GRANT

Government grants

Government grants are recognised in the period when they become receivable and credited to the Statement of Financial Performance. Funds received for capital development as conditional grants are recognised as deferred income and credited to the Statement of Financial Performance on a straight-line basis when the stipulations of the conditional grants are met.

Restrictions on government grants may result in such revenue being recognised on a time proportion basis. Where there is no restriction on the period, such revenue is recognised on receipt or when the Act becomes effective, whichever is earlier.

When government remit grants on a re-imbursement basis, revenue is recognised when the qualifying expense has been incurred and to the extent that any other restrictions have been complied with.

Revenue from non-exchange transactions

Donations received:

Revenue from donations received shall be measured at the amount of the increase in net assets which in this case will be the net proceeds received from the various donors; and

Conditional grant:

Revenue from special projects grant shall be measured at the amount of the increase in net assets which in this case will be the net proceeds received from the funders. If conditions are attached to the grant a liability will be recognised and shall be the best estimate of the amount required to settle the present obligation at the reporting date. When a liability is subsequently reduced because a condition is satisfied the amount of the reduction in the liability will be recognised as revenue.



PART E

1.15 REVENUE FROM EXCHANGE TRANSACTIONS

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange

Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

• The amount of revenue can be measured reliably.• It is probable that the economic benefits or service potential associated with the transaction will flow to the

entity.• The stage of completion of the transaction at the reporting date can be measured reliably.• The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue shall be recognised only to the extent of the expenses recognised that are recoverable

• Accommodation income is recognised on a daily basis.• Entrance fees are recognised on a daily basis and other tourist related activities are recognised upon

commencement of the activity.• Joint project conservation income relates to employment projects that are administered by MTPA but funded

from external parties. i.e. MTPA – Environmental Monitors for PMU, ICMA – Komati river scientific programs is included in sundry income. These are recognised when accrued.

• Sundry income relates to once of payments that are received for insurance claims, incidental rental income, nursery sales, wood sales etc. These are recognised when accrued.

• Sales relates to game sales, hunting packages and fishing, hunting permits.• Management fees for managing special projects are recognised on a monthly basis, based on the services

performed.• Rent received is recorded on a daily basis or monthly in accordance with the substance of the relevant

agreements.• Income from concessions granted to operators to build, operate and transfer lodges and from rental of facilities

to operators is recognised as it accrues over the period of the agreement.



1.15 REVENUE FROM EXCHANGE TRANSACTIONS (continued)

Sale of goods and services

Revenue from the sale of goods is recognised when all the following conditions have been satisfied:

• The MTPA has transferred to the buyer the significant risks and rewards of ownership of the goods;• The MTPA retains neither continuing managerial involvement to the degree usually associated with ownership

nor effective control over the goods sold;• The amount of revenue can be measured reliably;• It is probable that the economic benefits associated with the transaction will flow to the MTPA; and• The costs incurred or to be incurred in respect of the transaction can be measured reliably

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volume rebates.

Interest is recognised, in Statement of Financial Performance, using the effective interest rate method.

1.16 CAPITAL COMMITMENTS

Capital commitments are disclosed in respect of contracted amounts for which delivery by the contractor is outstanding at the accounting date, and for amounts which the Board’s approval has been obtained but not yet contracted for. Commitments are not recognised in the Statement of Financial Position as a liability or as an expenditure in the Statement of Financial Perfomance but are included in the disclosure notes 24.

1.17 PROJECT LIABILITIES

Projects arise as and when a new project is planned per the MTPA’s implementation plan. These projects are funded by External stakeholders and the projects funds are managed by the MTPA.

The cash payments made during the year relating to these projects are recognized as expenditure in the Statement of Financial Position when final authorisation for payments is effected on the system (by no later than 31 March of each year). Any unutilised amounts are recognised as payables in the Statement of Financial Position.

The community benefit-sharing project arises once a co-management agreement between MTPA and the respective Communities adjacent to the protected areas is in place. A liability is recognised when the amounts due to the community are not paid during the year.

1.18 FRUITLESS AND WASTEFUL EXPENDITURE

Fruitless and wasteful expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the Statement of Financial Performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the Statement of Financial Performance.



PART E

1.19 IRREGULAR EXPENDITURE

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including -

(a) this Act; or(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or (c) any provincial legislation providing for procurement procedures in that provincial government.

Irregular expenditure that was incurred and identified during the current financial year is disclosed under note 22.

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred, unless it is impractical to determine, in which case reasons therefore must be provided in the notes.

Irregular expenditure receivables are measured at the amount that is expected to be recovered and are de-recognised when settled or written-off as irrecoverable.

Irregular expenditure must be removed from the balance of the irregular expenditure notes when it is either

(a) condoned by the relevant authority if no official was found to be liable in law; (b) recovered from an official liable in law; (c) written-off if it’s irrecoverable from an official liable in law; or (d) written-off if it’s not condoned and not recoverable.

1.20 CONTINGENT LIABILITIES

Contingent liabilities are possible obligations that arose from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within control of the entity; or a present obligation that arises from past events but is not recognised because:

• it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

• the amount of the obligation cannot be measured with sufficient reliability.

1.21 BUDGET INFORMATION

MTPA is typically subject to budgetary limits in the form of appropriations or budget authorisations (or equivalent), which is given effect through authorising legislation, appropriation or similar.

General purpose financial reporting by MTPA shall provide information on whether resources were obtained and used in accordance with the legally adopted budget.

The approved budget is prepared on an accrual basis and presented by programmes linked to performance outcome objectives.

The approved budget covers the fiscal period from 01/04/2016 to 31/03/2017.



1.22 RELATED PARTIES

The MTPA operates in an economic sector currently dominated by entities directly or indirectly owned by the South African Government. As a consequence of the constitutional independence of the three spheres of government in South Africa, only entities within the provincial sphere of government are considered to be related parties.

Management are those persons responsible for planning, directing and controlling the activities of the MTPA, including those charged with the governance of the MTPA in accordance with legislation, in instances where they are required to perform such functions. This includes close family members who are considered to be those family members who may be expected to influence, or be influenced by, that Management in their dealings with the MTPA.

1.23 CHANGE IN ACCOUNTING POLICIES, ESTIMATES AND ERRORS

Change in estimate

A change in accounting estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of a period consumption of an asset, the results from the assessment of the present status of, and expected future benefits and obligations associated with assets and liabilities. Change in accounting estimate result from new information and new developments and are not correction of errors.

The effect of a change in accounting estimate shall be recognised prospectively by including it in surplus or deficit in:

• the period of the change, if the change affects that period only; or • the period of the change and future periods, if the change affects both.

To the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, or relates to an item of net assets, it shall be recognised by adjusting the carrying amount of the related asset, liability or item of net assets in the period of the change.

Prior period errors

Prior period errors are omissions from, and misstatements in, the entity’s financial statements for one or more prior periods arising from a failure to use or misuse of, reliable information that:

• was available when the Annual Financial Statements for those period were authorised for issue; and• could reasonably be expected to have been obtained and taken into account in the preparation and presentation

of those financial statements.

A prior period error shall be corrected by retrospective restatement in the first set of financial statements authorised for issue after their discovery by:

• restating the comparative amounts for the prior period(s) presented in which the error occurred; or• if the error occurred before the earliest prior period presented, restating the opening balances of assets,

liabilities and net assets for the earliest prior period presented.



PART E

1.23 CHANGE IN ACCOUNTING POLICIES, ESTIMATES AND ERRORS (continued)

A prior period error shall be corrected by retrospective restatement except to the extent that it is impracticable to determine either the period-specific effects or the cumulative effect of the error.

When it is impracticable to determine the period-specific effects of the error on comparative information for one or more prior periods presented, the entity shall restate the opening balances of the assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable (which may be the current period).

When it is impracticable to determine the cumulative effect, at the beginning of the current period, the entity shall restate the comparative information to correct the error prospectively from the earliest date practicable.

Change in Accounting Policies

Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

An entity shall change an accounting policy only if the change:

• is required by a standard of GRAP; or• results in the Annual Financial Statements providing reliable and more relevant information about the effects of

the transactions, other events or conditions on the MTPA’s Financial Position, Financial Performance or Cash Flows.

A change in accounting policy shall be applied retrospectively, except to the extent that it is impracticable to determine either the period-specific effects or the cumulative effect of the change.

When is it impracticable to determine the period-specific effects of changing an accounting policy on comparative information of one or more prior periods presented, the entity shall apply the new accounting policy to the carrying amounts of the assets and liabilities as at the beginning of the earliest period of which retrospective application is practicable, which may be the current period, and shall make a corresponding adjustment to the opening balance of each affected component of net assets for that period. When it is impracticable to determine the cumulative effect, at the beginning of the current period, of applying a new accounting policy to all prior periods, the entity shall adjust the comparative information to apply the new accounting policy prospectively from the earliest date practicable.



1.24 NEW STANDARDS AND INTERPRETATIONS

The standards and interpretations are effective 01 April 2016 and adopted by MTPA during the current year

STANDARD

GRAP 1 - Presentation of Financial Statements

GRAP 2 - Cash Flow Statements

GRAP 3 - Accounting Policies, Changes in Accounting Estimates and Errors

GRAP 9 - Revenue from Exchange Transactions

GRAP 12 - Inventories

GRAP 13 - Leases

GRAP 14 - Events After the Reporting Date

GRAP 17 - Property Plant and Equipment

GRAP 19 - Provisions, Contingent Liabilities and Contingent Assets

GRAP 21 - Impairment of Non-cash-generating Assets

GRAP 23 - Revenue from Non-exchange Transactions (Taxes and Transfers)

GRAP 24 - Presentation of Budget Information in Financial Statements

GRAP 25 - Employee Benefits

GRAP 26 - Impairment of Cash-generating assets

GRAP 27- Agriculture

GRAP 103 - Heritage Assets

GRAP 104 - Financial Instruments

The following standards have been revised and approved, that are effective 01 April 2017 and MTPA has not early adopted any of these standards. The Board is still assessing the impact of the implementation of the standards.

STANDARD

GRAP 20 - Related Party Disclosures

GRAP 32 - Service Concession Arrangements: Grantor

GRAP 34 - Separate Financial Statements

GRAP 35 - Consolidated Financial Statements

GRAP 36 - Investments in Associates and Joint Ventures

GRAP 37 - Joint Arrangements

GRAP 38 - Disclosure of Interests in Other Entities

GRAP 108 - Statutory Receivables

GRAP 109 - Accounting by Principals and Agents

GRAP 110 - Living and Non-living Resources



PART E

Figures in Rand2017

RRestated 2016

R

2. INVENTORIES

Consumable stores 70 798 78 778

Fuel (Diesel, Petrol) 335 138 456 137

405 936 534 915

3. RECEIVABLES FROM EXCHANGE TRANSACTIONS

Receivable from exchange transactions 8 861 109 9 664 681

Provision for impairment of trade receivable (4 862 617) (2 494 929)

3 998 492 7 169 752

The average credit period on trade receivables is 30 days. No interest is charged on outstanding balances of trade receivable accounts.

The majority of MTPA’s accounts receivables originate from tender awarding processes. The inherent credit risk is mitigated by a credit verification process performed before awarding of future accounts.

The following receivables had balances outstanding that represented more than 5 % of the total balance of outstanding receivable from exchange transactions:

31 March 2017Percentage

of total 31 March 2016Percentage

of total

Account Rand (%) Rand (%)

Inzalo / BOE 1 604 584 18 1 604 584 16

Tintswalo Safari Lodge 672 848 7 1 541 894 15

CATHSSETA 918 699 10 1 587 759 16

CAWS 1 149 171 12 1 194 171 12

Honeyguide Tented Safari Camps 3 280 338 37 2 612 812 27

7 625 640 8 541 220

Ageing of debtors is as follows:

Balance at31 March 2017

Balance at31 March 2016

Account Rand Rand

0 - 30 days 3 860 994 5 520 581

60 - 90 < days 137 497 1 649 171

90 - 120 days 234 152 -

> 120 days 4 628 465 2 494 929

8 861 108 9 664 681

DISCLOSURE NOTESTO THE ANNUAL FINANCIAL STATEMENTS



Reconciliation of provision for impairment of trade and other receivables

Opening balance (2 494 929) (2 484 170)

Provision for doutful debts (2 367 688) (10 759)

(4 862 617) (2 494 929)

In determining the recoverability of a trade receivable, the entity considers any change in the credit quality of the trade receivable from the date the credit was initially granted up to the reporting date. The receivable balances that constitute the prior year allowance for impairment losses has been partially collected in the current year, since these receivables are still in the process of being collected.

4. RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS Other receivables 282 456 46 811

Deposits 39 192 39 192

Prepaid expenses 4 480 424 484 755

SARS - PAYE** 320 916 338 551

Staff receivables 17 073 -

5 140 061 909 309

** Included in the amount of R 320 916 is an amount due to MTPA from SARS, this is due to the incorrect EMP501 calculation that was submitted to SARS during the prior year.

5. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of:

Cash on hand 14 118 9 802

Bank balances 27 943 404 13 338 296

27 957 522 13 348 098Current assets 27 957 522 13 348 098

27 957 522 13 348 098

Bank Balances

MTPA Operational account* 17 539 883 7 512 537

MTPA salaries account 908 937 1 852 843

Monies held on behalf of the projects 9 494 584 3 972 916

27 943 404 13 338 296

Figures in Rand2017

RRestated 2016

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3. RECEIVABLES FROM EXCHANGE TRANSACTIONS (continued)

DISCLOSURE NOTESTO THE ANNUAL FINANCIAL STATEMENTS (continued...)for the year ended 31 March 2017


PART E

*Included in the R17.5 milllion is the balance relating to funds held on behalf of the joint projects conservation income (Department of Science and Technology (DST), Ermelo Court, Goldview, and Ivory income) held in MTPA operational bank account.

6. PROPERTY, PLANT AND EQUIPMENT

2017 2016

Cost / Valuation

Accumulated Carrying value depreciation

Cost / Valuation

Accumulated depreciation

Carrying value

Land 4 487 213 - 4 487 213 4 487 213 - 4 487 213

Properties and Buildings 523 442 351 (230 452 471) 292 989 880 660 495 947 (285 544 116) 374 951 831

Computer equipment 8 677 073 (7 167 370) 1 509 703 8 480 999 (5 168 847) 3 312 152

Furniture and fixtures 8 890 657 (8 135 110) 755 547 8 759 161 (7 045 690) 1 713 471

Large and small capital equipment 20 108 954 (15 238 814) 4 870 140 19 764 226 (11 580 866) 8 183 360

Motor vehicles 28 661 826 (24 012 571) 4 649 255 28 329 916 (17 946 857) 10 383 059

Infrastructure 156 458 391 (71 889 937) 84 568 454 13 086 521 (952 260) 12 134 261

Work in progress* 6 763 310 - 6 763 310 4 406 661 - 4 406 661

Total 757 489 775 (356 896 273) 400 593 502 747 810 644 (328 238 636) 419 572 008

Reconciliation of property, plant and equipment - 31 March 2017

Opening balance Additions Disposals Transfers Depreciation

DisposalsAccum dep Total

Land 4 487 213 - - - - - 4 487 213

Properties and Buildings 300 800 019 1 504 824 - 1 551 663 (10 866 626) - 292 989 880

Computer equipment 3 312 152 298 300 (102 225) - (2 061 932) 63 408 1 509 703

Furniture and fixtures 1 713 471 131 669 - - (1 089 593) - 755 547

Large and small capital equipment 8 183 360 345 145 - - (3 658 365) - 4 870 140

Motor vehicles 10 383 059 1 078 248 (746 757) - (6 589 753) 524 458 4 649 255

Work in progress* 4 406 661 6 763 310 - (4 406 661) - - 6 763 310

Infrastructure 86 286 073 406 789 - 2 854 998 (4 979 406) - 84 568 454

419 572 008 10 528 285 (848 982) - (29 245 675) 587 866 400 593 502

Figures in Rand2017

RRestated 2016

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5. CASH AND CASH EQUIVALENTS (continued)

DISCLOSURE NOTESTO THE ANNUAL FINANCIAL STATEMENTS (continued...)



Transfers relate to completed construction work at Mkhombo Nature Reserve and an electric fence completion at Head Office. Disposals were due to vehicles accidents and lost computer equipment.


Opening balance Additions Disposals

Donations (out) / in Depreciation

Disposal Accum dep Total

Land 4 487 213 - - - - - 4 487 213

Buildings 378 268 236 - (3 634 500) 13 662 545 (14 888 117) 1 543 667 374 951 831

Computer equipment 3 945 878 1 246 263 (12 500) - (1 873 863) 6 374 3 312 152

Furniture and fixtures 2 185 685 275 790 (42 723) 272 172 (1 020 075) 42 622 1 713 471

Large and small capital equipment 8 148 634 3 274 015 (58 290) 96 585 (3 280 103) 2 519 8 183 360

Motor vehicles 14 253 989 2 374 056 (158 809) 91 100 (6 336 085) 158 808 10 383 059

Work in progress* - 4 406 661 - - - - 4 406 661

Infrastructure 11 482 132 1 604 389 - - (952 260) - 12 134 261

422 771 767 13 181 174 (3 906 822) 14 122 402 (28 350 503) 1 753 990 419 572 008

Description of land

Place ERF RandsHead Office Portion 14 of the farm riverside 308 JT 3 505 433 Elukwatini ERF 27 Elukwatini- B Ext 1 981 780 Totals 4 487 213

Revaluations

The MTPA undertook an extensive exercise in March 2015 to identify and value the depreciated cost of the immovable assets and leaseholds improvements. The valuations were performed by the MTPA Management in consultation with an independent valuer, Mr Jannie Van Graan, the Managing Associate of Industrial and Mining Valuations Fixed Assets Register Services. The useful lives of the properties have been reviewed accordingly.

Fair Value estimations were ascertained by determining the Estimated Replacement Cost, based on internationally published building rates per measured surface area, applicable to Africa. A condition rating, based on physical observation, was applied to the Estimated Replacement Cost to calculate the Depreciated Replacement Cost used as the Net Replacement Value at year-end. Significant assumptions included in the valuation process relate to the very stagnant realty market, which resulted in the land values not being increased for the 2015 year.

The effective date of the valuation is 31 March 2015, valid for 5 years until 2019.

Figures in Rand2017

RRestated 2016

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6. PROPERTY, PLANT AND EQUIPMENT (continued)



PART E

7. HERITAGE ASSETS

In the prior year, MTPA reviewed its accounting policy for land and a decision was taken to change the accounting policy for conservation land from Property, Plant and Equipment (GRAP 17) to account for it as Heritage Assets under GRAP 103. Hence the below items which met the definition of Heritage Assets, were transferred from Property, Plant and Equipment (GRAP 17) to Heritage Assets (GRAP 103):

2017 2016

Cost / Valuation

Accumulated impairment

losses

Carrying value

Cost / Valuation


losses

Carrying value

Conservation areas 35 283 207 - 35 283 207 35 283 207 - 35 283 207

Reconciliation of heritage assets 2016

Opening balance Total

Conservation areas 35 283 207 35 283 207

Name of the reserve Hectares Historical costLoskop Dam 22 702 26 866 932 Paardeplaats Nature Reserve 2 426 8 416 275 Totals 35 283 207

Heritage assets which fair values cannot be reliably measured.

A significant value of MTPA Heritage assets were obtained through non-exchange transactions from various state-owned organisations. For Heritage assets obtained from non-exchange transactions MTPA attempted to establish the value thereof using guidance from Directive 7 issued by the Accounting Standards Board. Due to the nature of MTPA activities, MTPA could not establish neither a fair value /deemed cost nor a replacement cost for its Heritage assets acquired from non-exchange transactions. For that reason, MTPA Heritage assets acquired from non-exchange transactions could not be recognised in the Annual Financial Statements. However, information pertaining to such assets has been disclosed below.

MTPA assesses at each reporting date whether there is any indication that the heritage assets may be impaired. No such indication existed at the end of the current financial reporting period.

Figures in Rand2017

RRestated 2016

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7. HERITAGE ASSETS (continued)

Name of the Nature Reserve Size in Hectares Cynthia Letty Nature Reserve 7 Kromdraai Nature Resort 10 Tinie Louw Nature Reserve 10 Thorncroft Nature Reserve 17 Swadini Nature Resort 100 Vertroosting Nature Reserve 162 Mangwazi Nature Reserve 419 Sterkspruit 2 Nature Reserve 478 Witbad Nature Reserve 550 Mahushe Shongwe Nature Reserve 1 139 Sterkspruit 1 Nature Reserve 1 141 Little Joker – Formosa Nature Reserve 1 237 SS Skhosana Nature Reserve 1 845 Ohrigstad Dam Nature Reserve 2 494 Barberton Phase 1 Nature Reserve 2 534 Nooitgedacht Dam Nature Reserve 2 986 Barberton Phase 2 Nature Reserve 5 415 Verloren Vallei Nature Reserve 6 007 Andover Nature Reserve 6 816 Bushbuck Ridge Nature Reserve 7 094 Mthethomusha Nature Reserve 8 028 Mdala Nature Reserve 8 165 Mabusa Nature Reserve 10 343 Mkhombo Nature Reserve 11 231 Barberton Phase 3 Nature Reserve 19 558 Manyeleti Nature Reserve 22 565 Blyde River Canyon Nature Reserve 26 947 Songimvelo Nature Reserve 46 320 Total 193 618

Figures in Rand2017

RRestated 2016

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PART E

8. BIOLOGICAL ASSETS

Non - Financial information: Quantities

MTPA performs a game census every three years , on animals that can easily be counted from the air and for specific sections of nature reserves. MTPA does not perform counts on small animals, insects, birds and freshwater biodiversity. Below are results of census carried out during the period 2016/2017.

Name Estimated Head Count Blue wildebeest 685Buffalo 436Bushbuck 81Duiker 258Giraffe 114Impala 1239Kudu 528Nyala 227Warthog 72Waterbuck 196White Rhino 44Zebra 813Elephant 34Steenbok 9Ostrich 3Klipspringer 13Mountain reedbuck 8Red hartebeest 46Hippo 39Eland 113Oribi 23Reedbuck common 4Tsessebe 100

MTPA’s main mandate is to provide for the sustainable management and promotion of tourism and nature conservation in the Mpumalanga Province and to ensure the sustainable utilisation of natural resources. As part of this mandate, MTPA is responsible for biodiversity conservation in defined protected areas and the biological assets consists of a large variety of species.

MTPA does not intervene in ecosystems. The nature reserves are home to different species of animals where all inhabitants of an eco-system co-exist without human interference. Some animals are prey to others while others are predators to the prey and together they are part of the same food chain.

Figures in Rand2017

RRestated 2016

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8. BIOLOGICAL ASSETS (continued)

Biological assets consist of wild animals managed for conservation purposes. This management is however not agricultural activity as the main objective is not to harvest (or produce additional biological assets for harvest) but manage and maintain a specific environment as a whole. Hence such assets cannot be accounted for using the principles of GRAP 27. Hence MTPA has accounted for these assets in accordance with the principles and interpretations of GRAP 17.

Based on the Framework for the Preparation and Presentation of Financial Statements and GRAP 17, these assets meet the definition of an asset but does not meet the recognition criteria relating to reliable measurement. MTPA cannot reliable measure the values of biological assets as they are not of a nature that can be easily counted with a level of certainty, valuations are not easily available as the assets are kept for conservation purposes, and the parks cannot keep up with births and deaths and migrations of wild life, although the MTPA performs an annual game census depending on budget availability. As the biological assets cannot be counted it is impossible to calculate gains and losses in biological assets during the year.MTPA does not recognise its biodiversity assets as it does not meet the recognition criteria, but only discloses the game census results as additional disclosure for the benefit of users to the Annual Financial Statements.

9. PAYABLES FROM EXCHANGE TRANSACTIONS

Trade payables from exchange transactions 3 916 575 1 408 961

Salary control accounts 1 605 659 1 663 612

Other payables - accruals 15 501 373 15 740 273

Accrued leave pay 14 927 901 10 116 763

35 951 508 28 929 609

At 31 March 2017, the total outstanding liabilities includes those liabilities relating to litigation still in process to be finalised or settled in the 2016/2017 financial year.

Long service awards

Opening balance 3 502 341 2 346 797

Increase / (decrease) in long service awards 446 132 1 554 069

Short term portion long service awards provision (435 575) (398 525)

3 512 898 3 502 341

The provision relates to a long term portion of amounts due to employees over five years and above from the next financial year. The obligation will be settled upon completion of each five year period of employment. MTPA assumes a staff loss of 5% each year. (2016: 5%) The average future rate increase is 6.5%. (2016: 7%)

Figures in Rand2017

RRestated 2016

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PART E

10. PROJECTS LIABILITIES

Community Benefit Sharing (CPA)@ 947 750 1 193 111

Mpakeni Tourism Project@ - 81 811

Mzinti Conservation Fund@ 137 273 176 075

Loskop Dam DEA* 880 377 -

Mahushe DEA* 4 280 298 116 961

Mthethomusha DEA* 2 961 223 121 967

Songimvelo DEA* 158 879 158 399

Africa Quisine Project - 2 544

South African National Biodiversity Institute (SANBI) - 157 516

9 365 799 2 008 384

@Relates to co-management with claimant communities where a settlement and co-management agreements have been concluded.

*Projects arise as and when a new project is planned per the MTPA’s implementation plan. These projects are being funded by external stakeholders and the project funds are managed by the MTPA within the project management unit

11. CONTRIBUTION FROM OWNERS

Closing balances from Mpumalanga Tourism Authority and Mpumalanga Parks Board 70 015 412 70 015 412

12. REVENUE


Grant received 304 387 100 307 898 000

Conditional grant - Expanded Public Works Programme (EPWP) 2 911 000 2 538 000


Other grants (SANBI and CATHSETA) 1 800 471 4 231 710

327 098 571 314 667 710


Sales of goods 3 693 479 3 054 705

Rendering of services 22 733 457 13 730 170

26 426 936 16 784 875

Figures in Rand2017

RRestated 2016

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13. OPERATING DEFICIT

The following have been (charged) / credited to the Statement of Financial Performance in arriving at the operating (deficit) surplus.

Other Income

Concession fees 4 516 429 3 115 580

Fine and penalties - 8 820

Rental income 108 370 72 673

Recoveries 251 965 252 702

Wildlife sales income 2 241 105 3 008 462

Sundry income* 7 812 690 31 246 559

14 930 559 37 704 796

* Included in sundry income is R 4.3 million of joint project conservation income (Department of Science and Technology(DST), SANPARK and ICMA)

Operating expenses

Advertisement (111 802) (523 265)

Animal feed (86 108) -

Auditor’s remuneration - external audit fees (3 583 074) (3 347 493)

Auditor’s remuneration - internal audit fees (514 008) (2 155 657)

Bank charges (509 402) (405 950)

Board emoluments and travelling allowance (1 788 716) (2 388 269)

Catering expenses (84 721) (138 418)

Chemicals and vetinary drugs (59 000) (1 779)

Cleaning and consumables (886 919) (1 195 785)

Courier and delivery costs (9 244) (12 143)

Depreciation on property, plant and equipment (29 245 675) (28 377 919)

Donations (424 522) (85 000)

Employee costs (262 282 611) (254 209 962)

Loss on disposal of assets (271 303) (2 069 648)

Gas bottle refill (90 365) (6 480)

Hire - helicopter (53 940) (45 416)

HR related costs (18 901 814) (18 215 251)

Figures in Rand2017

RRestated 2016

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PART E

Operating expenses

Infrastructure upgrade (27 965) (124 351)

Insurance (1 812 793) (1 186 225)

License and registrations (1 448 595) (1 474 958)

Litigation settlement payments (2 107 999) (6 870 093)

Motor expenses - fuel & oil (2 679 077) (3 155 974)

Municipal - electricity (5 364 916) (4 725 470)

Operating lease rentals (2 708 568) (2 532 558)

Pastel evolution and VIP systems (174 067) (55 605)

Printing and stationary (559 405) (478 264)

Programme cost (19 518 634) (22 296 045)

Provision for bad debts (2 367 688) (11 759)

Rates and taxes (387 686) (1 362 375)

Repairs and maintenance (2 113 497) (2 284 910)

Ringfenced monies (13 560 300) (6 022 491)

Security (6 235 820) (5 794 613)

Small Tools (34 307) (103 739)

Subscriptions (1 939 766) (1 249 212)

Stock adjustment - (135 667)

Telephone costs (2 058 190) (1 786 937)

Travel - accommodation (1 281 373) (990 978)

(385 283 870) (375 820 659)

14. INTEREST INCOME

Interest income 912 155 930 523

15. INTEREST EXPENSE

Interest expense 5 354 4 360

Figures in Rand2017

RRestated 2016

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13. OPERATING DEFICIT (continued)




16. CASH GENERATED FROM OPERATIONS

Deficit (15 921 005) (5 737 115)

Adjustments for:

Depreciation and amortisation 29 245 675 28 377 918

Write off - creditors - (1 421 937)

Loss on disposal of assets 261 115 2 069 649

Assets donation - (14 122 403)

Provision for bad debts 2 367 688 11 759

Bonus provision - 207 405

Disposal on assets - 83 185

Provision for service awards 47 607 1 458 569

Correction of prior year error ( Concession) - 2 916 758

Provision for leave accrual 4 811 137 -

Other non cash items - write off on inventory - 135 667

Non cash items - 581 141

Changes in workingcapital: Inventories 128 979 318 660

Receivables from exchange transactions (1 140 914) (6 391 989)

Other receivables from non-exchange transactions (4 230 751) 621 512

Payables from non-exchange and exchange transactions 2 210 763 (8 714 340)

17 780 294 394 439

17. CONTINGENCIES

Concession revenue under disputes

MTPA is involved in legal disputes with concessionaires, resulting in concessions fees not being possible to invoice in prior years to date. Attempts are on-going to resolve the matters .The estimated concession fees involved from prior years could be around R8.7 million.

Fred Daniel Case A

This court case which is fully cited as Grand Valley Estates and 11 others versus Mpumalanga Tourism and Parks Agency & 24 others: Case No: 34502/2010 has been instituted by one businessman, namely Mr Frederick Coenraad Daniel & 11 others, against various government bodies in the North Gauteng High Court in Pretoria in 2010. The case is being defended through the Office of the State Attorney in Pretoria.

Figures in Rand2017

RRestated 2016

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PART E

17. CONTINGENCIES (continued)

This court case involves 12 plaintiffs (parties instituting the action) which are mostly companies associated with Mr Daniels and a few of his individual fellow business associates. It has 25 defendants which include various National and Provincial government departments, state entities, state officials and individuals.

The National department cited in the matter is Environmental Affairs; Provincial department cited is Agriculture and Land Affairs; and state entities cited include MTPA, Regional Land Claims Commissioner: Mpumalanga Province and national Commissioner of South African Police. Most state officials and individuals are sued herein in vicarious liability as at all times they were acting within the course and scope of their duties in relation to the allegations made against them.

The cause of action set out in the issued summons is broadly alleged to be unlawful actions and numerous breaches of legal duties by Defendants which allegedly resulted in Plaintiffs suffering damages mainly through loss of profit and prospective profit, among others.

The total amount sued for as contained in the issued summons is currently in the sum of R 1 094 330 740. 00 which is jointly and severally payable by the Defendants to the Plaintiffs. The amount computed to be payable by MTPA as an entity is the sum of R740 million as set out in the issued summons. There are amendments that the Plaintiffs are pursuing in respect of the issued summons which if successful could possible result in the increase of the amounts involved.

The matter is pending before the court with plaintiffs attempting to make various amendments on their issued summons and Defendants raising exceptions thereto. Legal fees incurred with this are more than R6 million with about R1.8 million still owing in legal fees.

Fred Daniel Case B

This court case which is fully cited as Grand Valley Estates and 10 others versus Business Ventures Investments 1144 (Pty) Ltd & 23 others: Case No: 50450/2014 has been instituted in the North Gauteng High Court in Pretoria in 2014 by one businessman, namely Mr. Frederick Coenraad Daniel & 10 others, against various companies that include Dubai World, some individuals, some state officials which include one from MTPA and the business persons that were involved with the Cradle of Life Nkomazi Wilderness Travelport near Badplaas during year 2007 and before.

The case is also defended through the Office of the State Attorney in Pretoria.

The case is a claim for damages allegedly suffered by plaintiffs as a result of the alleged unlawful actions of the defendants which included alleged negligent or fraudulent misrepresentations which have allegedly commercially and financially harmed and prejudiced the business and commercial ventures, interests and initiatives of the plaintiffs.

The total amount sued for is the sum of R 1 174 610 740 which is claimed jointly and severally from all the defendants. The matter is pending.

Figures in Rand2017

RRestated 2016

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18. RELATED PARTIES

Related party balances

Identity of related parties

MTPA was established by the Mpumalanga Provincial Government, to promote Mpumalanga as a tourism destination in the local and international markets, as well as, for biodiversity conservation. MTPA reports directly to the Department of Economic Development and Tourism (DEDT).

Nelspruit Development Trust and Nelspruit Financing Trust are controlled entities as the majority of the trustees are former MTPA board members, there are no related party transactions.

The Executive Council, at its meeting of 23 August 2015, resolved to transfer the Zithabiseni Resort and Conference Centre to the Mpumalanga Tourism and Parks Agency as a managing authority for the resort. Mpumalanga Tourism and Parks Agency resumed responsibilities as a managing Authority effective 01 April 2016. Further to this effect, the Executive Council approved the option, which promotes joint ownership of the Resort by the State and the Community, but managed by an independent operator (to be appointed) with defined state and community benefits.

Executive management and board members are also considered to be related parties to the MTPA. The Executive management committee consist of:

Acting Executive Officer: Mr. Sibiya VA (Acting 1 July 2015 to 31 March 2017 )Chief Operations Officer: Mr. Thwala SEChief Financial Officer: Ms. Thrush H (Terminated 31 July 2016 and reinstated from 01 October 2016)Consultant: Mr. Maphiwa M (Acting from 01February 2016 to 31 July 2016)Acting CFO: Mr. Mathye S (11 August 2016 to date)Acting Head Corporate Services: Ms. Nkonyane C ( Seconded from 16 February 2015 to 31 October 2016)Acting Head Biodiversity Conservation: Mr. Shirindzi L ( from 01 October 2015 to 31 August 2016)Head Tourism: Mr. Mthethwa XCompany Secretary: Ms. Hlahane P

31 March 2017 Acting

Allowance SalaryTravel and

Subsistence TotalActing Chief Executive Officer 383 673 - - 383 673Chief Operating Officer - 1 681 161 - 1 681 161Chief Financial Officer - 1 561 732 - 1 561 732Consultant in Finance@ - 568 854 - 568 854Acting Chief Financial Officer@@ - 634 738 - 634 738Head Biodiversity Conservation - 1 338 890 98 604 1 437 494Head Tourism - 1 335 820 46 491 1 382 311Company Secretary - 1 111 301 3 806 1 115 107

383 673 8 232 496 148 901 8 765 070@ Acting from 01 April 2016 to 31 July 2016 @@ Acting from August 2016 to date.

Figures in Rand2017

RRestated 2016

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PART E

18. RELATED PARTIES (continued)

Related party transactions

Grant received from DEDT 304 387 100 307 898 000

Grant received - Zithabiseni 21 510 000 -


Conditional grant - Expanded Public Works Programme (EPWP)

2 911 000 2 538 000

346 808 100 310 436 000

19. BOARD AND EXECUTIVE MANAGEMENT EMOLUMENTS

Board Members

31 March 2017Cellphone Allowance Fees

Travel and subsistence Total

Mr. Nzima TJ (Chairperson) 12 000 291 107 62 175 365 282

Ms. Shabangu-Mndawe NR (Deputy Chairperson) 8 250 177 736 8 489 194 475

Dr. Magome DT 6 000 109 520 51 213 166 733

Ms. Nkambule TB 2 250 77 117 3 995 83 362

Mr. Gololo CL 2 250 69 055 7 187 78 492

Mr. Keetse T 6 000 88 729 30 634 125 363

Ms. Sekhitla JS 2 250 89 569 2 360 94 179

Ms. MS Masekaomeng (nee’ Nkgadima) 2 250 23 673 13 317 39 240

Ms. Makhathini SFS 2 250 79 232 4 504 85 986

Ms. Mzuzu NB 2 250 90 565 2 278 95 093

Mr. Mthombeni SG 2 250 117 667 69 582 189 499

48 000 1 213 970 255 734 1 517 704

Figures in Rand2017

RRestated 2016

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19. BOARD AND EXECUTIVE MANAGEMENT EMOLUMENTS (continued)



Mr Lubisi (Chairperson) - 355 762 26 968 382 730

Dr. Mabunda MD ( Deputy Chairperson) - 28 700 4 903 33 603

Ms. Chiloane C - 107 682 14 632 122 314

Mr. Gololo CL - 136 059 11 590 147 649

Mr. Keetse T 500 186 059 60 067 246 626

Mr. Linda JE - 155 661 44 567 200 228

Dr. Lombard PP - 139 146 4 875 144 021

Ms Masenya TS - 139 235 14 925 154 160

Ms. Nkambule TB - 139 937 6 462 146 399

Ms. Shabangu-Mndawe NR 500 150 457 7 829 158 786

Mr. Nzima TJ ( Chairperson) 1 000 24 105 - 25 105

Dr. Magome DT 500 18 985 - 19 485

Ms. Makhathini SFS - 8 436 - 8 436

Ms. Masekaomeng MS (nee’ Nkgadima) - 10 544 365 10 909

Mr. Mthombeni SG - 6 327 - 6 327

Ms. Mzuzu NB - 10 544 - 10 544

Ms. Sekhitla JS - 10 544 - 10 544

2 500 1 628 183 197 183 1 827 866

Audit Committee


Travel and Subsistence Total

Ms. Mvulane P (Chairperson) 4 000 62 685 625 67 310

Ms. Mtebele N 2 000 52 676 1 717 56 393

Ms. Mawelele TE 2 250 4 753 239 7 242

Mr. Mthembu S 2 250 49 550 914 52 714

10 500 169 664 3 495 183 659

Figures in Rand2017

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PART E


31 March 2016 FeesTravel and

subsistance Total

Ms. Mtebele N(Chairperson) 129 946 5 685 135 631

Ms. Mawelele TE 20 766 960 21 726

Mr. Mthembu S 73 210 1 800 75 010

Mr. Pott WA 26 995 1 359 28 354

250 917 9 804 260 721

Summary

Total Board emoluments

Total board emoluments 1 517 704 1 827 866

Total audit committee remuneration 183 659 260 721

Travel and accommodation 87 353 299 682

1 788 716 2 388 269

Executive Management Committee Remuneration

31 March 2017Acting


Subsistence Total

Acting Chief Executive Officer 383 673 - - 383 673

Chief Operating Officer - 1 681 161 - 1 681 161

Chief Financial Officer*** - 1 561 732 - 1 561 732

Consultant in Finance@ - 568 854 - 568 854

Acting Chief Financial Officer@@ - 634 738 - 634 738

Head Biodiversity Conservation - 1 338 890 98 604 1 437 494

Head Tourism - 1 335 820 46 491 1 382 311

Company Secretary - 1 111 301 3 806 1 115 107

383 673 8 232 496 148 901 8 765 070

@ Acting from 01 April 2016 to 31 July 2016 @@ Acting from 11 August 2016 to date.***CFO labour dispute with Agency was concluded in January 2017 with the CFO successful in her appeal. Currently, engagements are taking place to have her seconded, possibly, to another government department.

Figures in Rand2017

RRestated 2016

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31 March 2016Acting


Subsistence Settlement Total

Chief Executive Officer - 577 721 - 3 114 565 3 692 286

Acting Chief Executive Officer## 143 994 - 49 640 - 193 634

Acting Chief Executive Officer### 242 447 - - - 242 447

Chief Operating Officer - 1 789 052 - - 1 789 052

Chief Financial Officer - 1 142 737 - - 1 142 737

Consultant in Finance@ 252 787 - 31 541 - 284 328

Consultant in Finance@@ 236 637 - - - 236 637

Head Biodiversity Conservation** - 1 250 171 94 520 - 1 344 691

Head Tourism - 1 239 772 44 110 - 1 283 882

Acting Head Corporate Services** 100 711 - - - 100 711

Company Secretary - 938 934 6 960 - 945 894

976 576 6 938 387 226 771 3 114 565 11 256 299

## Seconded from 01 February to 31 June 2015### Acting from 01 July 2015 to date@ Acting from November 2015 to 31 December 2015@@ Acting from 01 February 2016 to date** Seconded 16 February 2015 to date

20. RISK MANAGEMENT

Financial risk management

The MTPA’s activities expose itself to a variety of financial risks: market risk (including, interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The MTPA has an approved risk management framework and has implemented a risk management register to mitigate identified risks.

MTPA’s overall risk management program focusses on the unpredictability of financial markets and seeks to minimise potential adverse effects on MTPA’s financial performance. Risk management is carried out under policies approved by the Accounting Authority. The Accounting Authority provides principles for overall risk management and policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk and investment

Figures in Rand2017

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PART E

20. RISK MANAGEMENT (continued)

Liquidity risk

MPTA’s is exposed to liquidity risk as a result of the funds available to cover future commitments. MTPA manages liquidity risk through an ongoing review of future commitments. MTPA manages its funds conservatively by maintaining a comfortable level of cash and cash equivalents in order to meet continuous operational need Cash flow forecasts are prepared and are monitored.

The table below analyses the MTPA’s financial liabilities into relevant maturity groups based on the remaining period at the date of the Statement of Financial Position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

At 31 March 2017Less than 1

yearBetween 1 and

2 years Over 5 years

Payables from exchange transactions and payables from nonexchange transactions

21 023 607 - -

Provision for long service awards 435 575 - 3 512 898

Leave pay provision 14 927 901 - -


yearBetween 1 and

2 years Over 5 years

Payables from exchange transactions and payables from nonexchange transactions

18 812 846 - -



Market risk

Market risk is the risk that changes in certain market prices, such as interest rates, will affect the MTPA’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

Interest risk

As the MTPA has no significant variable interest-bearing assets, the MTPA’s income and operating cash flows are substantially independent of changes in market interest rates.

Credit risk

The company is exposed to credit risk on financial assets, mainly attributable to cash deposits, cash equivalents and trade debtors.

Figures in Rand2017

RRestated 2016

R





The financial assets carried at cost exposes the entity to credit risk. The values of the maximum exposure to credit risk are as follows for each class of financial asset at cost.

Financial assets exposed to credit risk at year end were as follows:

Revenue from exchange transactions 8 861 108 9 664 681

Cash and cash equivalents 27 957 522 13 348 098

Ageing of Debtors at the reporting date:

AccountBalance at

31 March 2017 ImpairmentBalance at

31 March 20160 - 30 days 3 860 994 - 5 520 581

60 - 90 < days 137 497 - 1 649 171

90 - 120 days 234 152 - -

> 120 days 4 628 465 (4 862 617) 2 494 929

8 861 108 (4 862 617) 9 664 681

Concentration of Credit Risk

Potential concentrations of credit risk consist mainly of short term cash, cash equivalent investments and trade debtors.MTPA limits its counter party exposure from its money market investment operations by only dealing with well established financial institutions of high quality standing.

At 31 March 2017, the company has the following concentration of risk:

2017

2017Percentage of total

exposure%Honeyguide Tented Safari Camps 3 280 338 37

21. FRUITLESS AND WASTEFUL EXPENDITURE

Opening balance 547 611 103 467

Interest expense - on outstanding accounts* 5 354 4 360

Transfer to debtors - (14 605)

CFO’s salary** 1 561 732 453 639

Traffic fine - 750

2 114 697 547 611

* Interest charged by the suppliers due to late payment on their accounts in respect of the financial year audit as a result of unavailability of funds to pay the full outstanding amount.**This is due to special leave given to the incumbent CFO, while an acting CFO holds the same position.

Figures in Rand2017

RRestated 2016

R



PART E

22. COMMITMENTS UNDER OPERATING LEASES

MTPA rents various copiers, facsimile, machines and laser printers from Nashua Lowveld as well as an administrative building from Primkop Airport Management (Pty) Ltd.

Minimum lease payments under operating leases recognised as an expense during the year 1 752 657 2 532 558

Contingent rental 921 861 -

Operating leases - office rental and equipment - payable within 1 year 1 823 511 1 956 423

- payable between 2 and 5 years 791 232 3 035 768

2 614 743 4 992 191

None of the trade and other receivables have been pledged as security for liabilities or contingent liabilities.


Opening balance 35 957 190 22 362 280

Add: Irregular expenditure - current year 4 977 411 13 594 910

40 934 601 35 957 190

Analysis of expenditure awaiting condonation per age classification

Current year 35 957 190 35 957 190

Details of Irregular Expenditure in current year:

1. Payment made after contract have expired.2. Expenditure incurred as a result of a deviation from procurement process.

Aquatronic 7 066 -

Brayshaw Auto Electr and Diesel 2 833 -

African Renaissance Security 141 600 910 800

JBKR Security Services 78 000 936 000

Born To Protect Security Services 178 800 2 044 800

Thebe Exhibitions 2 930 -

Rista 2 481 -

CHM Vhumani 11 308 -

Phathimo Training and Conference 26 970 -

Figures in Rand2017

RRestated 2016

R




Marsh Insurance 442 917 -

Work Dynamics 43 035 48 880

Thandisphiwo (Pty) (Ltd) 39 570 -

Working on fire 6 870 -

Dana Agency 41 554 -

Copperleaf 171 -

Phoenix - 185 618

Hi-Tech Security Guards 108 117 1 366 949

Group 4 Secure 26 950 168 164

Gestetner 7 963 306 786

Prosperosa 646 236 341 310

Muga Design CC T/A 3D Design Exhibitions 752 399 -

The Outdoorsman T/A Outdoor Gas 21 835 -

Tidy Files 178 718 -

Pure Grit 282 893 -

Twain 2 16 986 -

Big Game Heli 50 000 -

The Herald 27 000 -

Pasqa 466 739 772 089

Kazzi 1 365 471 576 805

Plant Pride Tropica - 57 838

Budget overspend - 5 737 953

African Wildlife Tracking - 79 618

WSM Eco Services - 61 300

4 977 412 13 594 910

Irregular expenditure for prior year was submitted to National Treasury for condonement.

Due to SCM non-compliance 4 977 412 7 856 957Due to budget spending - 5 737 953

4 977 412 13 594 910

Figures in Rand2017

RRestated 2016

R


23. IRREGULAR EXPENDITURE (continued)


PART E

24. COMMITMENTS UNDER SERVICE LEVEL AGREEMENTS

Contracts awarded

Bothila Security 8 083 145 -

Hlaj Security 3 888 189 -

Phepha MV 4 860 238 -

Bunhlebentfutfuko 2 050 884 -

Sibongile Thembisile Florence 3 501 098 -

Siboyiye Trading 2 867 297 -

Deloitte and Touch 86 209 64 638

ADT Security 223 126 -

Delta Consulting 2 496 749 -

Global glo 437 276 -

Honeycomb Solution 74 174 -

Kgotle Water 345 970 -

Lerandzu Trading 766 821 -

Marsel - IT 34 200 57 500

Muga T/A 3D design 902 578 -

Newsclip 200 154 -

Pasqa Consulting 531 169 -

Prosperity Link 164 910 -

Prospero Digital 1 419 300 -

Real Travel and Tourism systems CC 248 100 222 000

Selectra Investments 24 t/a Omega data 69 540 -

Sita (PTY) (LTD) 183 734 -

SizweNtsalubaGobodo 94 023 995 921

Sunday Kit Uniform 4 800 000 -

Vodacom 2 511 831 -

Vuthani Bafazi 65 040 -

Metro file 183 212 -

Pay Gate 28 002 -

Fidelity Cash Solutions (pty) Ltd 93 024 136 000

Fast net pro-mpu003P 9 463 -

Figures in Rand2017

RRestated 2016

R




Multichoice 18 504 -

Nelspruit Airport Operating 30 055 -

Sizampilo 5 680 092 -

Softline Pastel 98 645 -

Softline Sage VIP 220 654 -

Sita Gov Tech 1 337 915 -

Kunene Makopo /SHA Underwriters 2 000 000 -

Eco Africa (Develop Intergrated Management Plans at Protected Areas) - 615 498

Kazzi Corporate Wear - 4 439 126

Moepeng 40 Trading - (Security fence at head office) - 447 570

H20 - 65 606

KBN Investments 7410 - 31 800

MM Garden - 94 500

The Document Warehouse 11 004 35 139

Bohlambiso Trading - 113 400

50 616 325 7 318 698

Approved and not yet contracted

Muga T/A 3D Design - 2 322 835

Contracts awarded month to month

Month to month contracts 59 563 463 217

25. RETIREMENT BENEFIT OBLIGATIONS

Defined contribution plan

The MTPA is a participating employer in the Government Employees Pension Fund (GEPF). The MTPA became a participative employer in 2006 with the inception of the MTPA as a result of employees that were transferred from Government departments, i.e. DALA and Limpopo Province to the MTPA. The employer’s contribution paid is 13% as this was the percentage employer contribution that was paid by these Government departments upon transfer of these employees to the MTPA.

Figures in Rand2017

RRestated 2016

R

24. COMMITMENTS UNDER SERVICE LEVEL AGREEMENTS (continued)



PART E


Payments made to industry-managed (or state plans) retirement benefit schemes are dealt with as defined contribution plans where the MTPA’s obligation under the schemes is equivalent to those arising in a defined contribution retirement benefit plan.

The entity accounts for this defined benefit state plan as a defined contribution plan, as there is no consistent and reliable basis for allocating the obligation, plan assets and costs to the individual employers to actuarial risks associated with the current and former employees of other employers participating in the plan.

MTPA GEPF Fund 6 204 728 6 088 849

26. GOING CONCERN

We draw attention to the fact that at 31 March 2017 MTPA had a net asset value of R 424 112 940 (Restated 2016: R 441 978 430) and that the MTPA’s current liabilities does exceed its current assets by R 8 250 871 (Restated 2016:R 9 374 444) , the current liabilities includes a leave provision of R 14 927 901 (2016 : R10 116 763), this provision will not strain the cash flow requirements of the entity due to the leave policy that does not allow voluntary encashment of leave. The board after having reviewed the projected cash flows for the foreseeable future and management’s assessment of MTPA’s ability to operate as a going concern, has a reasonable expectation that the agency have adequate resources to continue its operations as a going concern for the foreseeable future.

27. PRIOR PERIOD ERRORS

Top up fees on concessions fees from prior years were only calculated in the current financial year, a portion relating to prior years should have been adjusted retrospectively, for a total of R1 279 810.

In the prior year, MTPA incorrectly disclosed Cathseta as a liability, the balance was not an obligation and should have been transferred to retained earnings, for a total of R2 058 465

Surplus in 2016 Retained earnings

Concession revenue for 2016 307 539

Concessions revenue prior 2016 972 271

Cathseta transferred to retained earnings 2 058 465

Totals 307 539 3 030 736

Figures in Rand2017

RRestated 2016

R

25. RETIREMENT BENEFIT OBLIGATIONS (continued)




Figures in Rand2017

RRestated 2016

R

REVENUE

Sale of goods 3 693 478 3 054 704




Recoveries 251 965 252 702

Wildlife sales 2 241 105 3 008 462

Sundry income 7 812 690 31 255 375

Interest received 912 155 930 523

Government grants 12 304 387 100 307 898 000

Conditional grant (EPWP, Zithabiseni and Infrastructure) 22 711 471 6 769 711

Total revenue 369 368 219 370 087 900

EXPENDITURE

Personnel (262 282 611) (254 209 961)

Depreciation and amortisation (29 245 675) (28 377 918)

Finance costs 15 (5 354) (4 360)


General Expenses (921 642 087) (89 518 667)

Total expenditure (385 289 224) (375 825 015)

Operating deficit 13 (15 921 005) (5 737 115)

Deficit for the year (15 921 005) (5 737 115)

The supplementary information presented does not form part of the annual financial statements and is unaudited

DETAILED INCOME STATEMENTfor the year ended 31 March 2017

2016/2017 AN

NU

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Tel: +27 13 759 5300Fax: +27 13 752 4186


www.mpumalanga.com

PR: 192/2017 ISBN: 978-0-621-45579-3




PART F


Mac Mac Falls


2016/2017 AN

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Part F: Group Annual Financial Statements


PART F


2016/2017 AN

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Country of incorporation and domicile South Africa

Nature of business and principal activities

To perform its duties in line with the Mpumalanga Tourism and Parks Agency Act 5 of 2005. Mpumalanga Tourism and Parks Agency’s (hereinafter ‘’MTPA’’) main shareholder is the Department of Economic Development and Tourism formerly DEDET (hereinafter “DEDT”) from which it receives it’s funding.

Board Members in office during the reporting period

Mr. Nzima TJ (Chairperson)

Appointed 01 March 2016 to 29 February 2020

Ms. Shabangu-Mndawe NR (Deputy Chairperson)

Appointed 01 March 2016 to 29 February 2020

Ms. Mzuzu NB Appointed 01 March 2016 to 29 February 2020Ms. Nkambule TB Appointed 01 March 2016 to 29 February 2020Mr. Gololo CL Appointed 01 March 2016 to 29 February 2020Ms. Masekaomeng MS (nee’ Nkgadima)

Appointed 01 March 2016 to 31 August 2016 (Resigned)

Mr. Mthombeni SG Appointed 01 March 2016 to 29 February 2020Ms. Makhathini SFS Appointed 01 March 2016 to 29 February 2020Ms. Sekhitla JS Appointed 01 March 2016 to 29 February 2020Dr. Magome DT Appointed 01 March 2016 to 29 February 2020Mr. Keetse TF Appointed 01 March 2016 to 29 February 2020Mr. Mgidi JS (Acting Head of Department)

Term ended 30 June 2016

Mr. Mkhize MW (Head of Department)

Appointed 01 July 2016 to date

Mr. Nobunga BJ (Chief Executive Officer)

Appointed 01 April 2017 to date

Mr. Sibiya VA (Acting Chief Executive Officer)

Appointed 01 July 2015 to 31 March 2017

Registered office Samora Machel DriveHall’s GatewayMataffinMbombela1200

Business address Samora Machel DriveHall’s GatewayMataffinMbombela1200

Postal address Private Bag X11338Mbombela1200

GENERAL INFORMATIONfor the year ended 31 March 2017


Bankers Standard Bank and,First National Bank of South Africa Limited

Auditors The Auditor General South Africa

Company Secretary Ms. Hlahane P (Appointed 01 May 2015 to date)

Audit committee external independent members for the reporting period Ms. Mvulane P (Chairperson) (Appointed 01 August 2016)

Ms. Mawelele TE (Term ended 31 July 2016)Mr. Mthembu SMr. Keetse TF (Term ended 31 July 2016) Ms. Mtebele N (Resigned 06 March 2017)Ms. Makhathini SFS Ms. Masekaomeng (nee’ Nkgadima) MS (Resigned 31 August 2016)

GENERAL INFORMATION (continued...)for the year ended 31 March 2017


PART FCONTENTS

The reports and statements set out below comprise the Group Annual Financial Statements presented to the Stakeholders:

INDEX PAGE

Statement of Responsibilities for the Annual Financial Statements 170

Report of the Chief Executive Officer 171-172

Group Audit Committee Report 173-175

Group Report of Accounting Authority 176-178

Auditor General’s Report 179-187

Group Statement of Financial Position as at 31 March 2017 188

Group Statement of Financial Performance for the year ended 31 March 2017 189

Group Statement of Changes in Net Assets for the year ended 31 March 2017 190

Group Cash Flow Statement for the year ended 31 March 2017 191

Group Statement of Comparison of Budget and Actual Amounts 192-194

Group Accounting Policies for the year ended 31 March 2017 195-210

Disclosure notes to the Group Annual Financial Statements for the year ended 31 March 2017 211-237

The following supplementary information does not form part of the Group Financial Statements and is unaudited: Detailed Income statement 238


The Public Finance Management Act requires the Board Members of the Group to ensure that Group keeps the full and proper records of its financial affairs. The Group Annual Financial Statements should fairly present the state of affairs of the Group, and its financial position at the end of the year in terms of the prescribed standards of Generally Recognised Accounting Practices.

The Board Members are responsible for monitoring the preparation of the Group Annual Financial Statements. The Auditor General South Africa is responsible for independently auditing and reporting on the Group Annual Financial Statements.

The Group Annual Financial Statements are prepared in accordance with the prescribed standards of Generally Recognised Accounting Practices, as per Directives 5 2014; (Appendix G) issued by the Accounting Standards Board (ASB) and incorporate disclosure in line with the accounting policies of the Group. The Group Annual Financial Statements are based on appropriate accounting policies consistently applied and supported by reasonable and prudent judgments and estimates and are prepared on the going concern basis.

The Group is not entirely comfortable with the current level of financial support from the Provincial Government, and although all indications are that the Group will continue to be sustainable and will be able to meet its obligations better going forward, the recent reductions in the funded budget will impact on the ability of the agency to deliver on all of its mandates. In order to accommodate the anticipated budgetary constraints, Management have prioritized deliverables, focusing on core mandates. The view of Management expressed above provides additional assurance as to the continued sustainability of the Group. Additional information with regards to going concern is included in this annual report.

To enable the Board Members to discharge the above responsibilities, the Group Board developed, and maintains a system of internal control. The internal controls include a risk based system of internal accounting and administrative controls designed to provide reasonable but not absolute assurance that assets are safeguarded and that transactions are executed and recorded in accordance with generally accepted business practices and the Group’s policies and procedures. These controls are implemented by trained, skilled personnel with appropriate segregation of duties, are monitored by Management and include a comprehensive budgeting and reporting system operating within strict deadlines and an appropriate control framework.

The system of internal control is designed to provide cost effective assurance that assets are safeguarded and that liabilities and working capital are efficiently managed. The agency continues to function with a high vacancy rate, and this does impact on the segregation of duties within certain functions. Management remains confident that despite this, the system of internal control applied by the Group over financial and risk management is in general effective, efficient and transparent.

As part of the system of internal control, the Group’s internal audit function conducts operational, financial and specific audits and co-ordinates audit coverage with the external auditors. The Group’s Internal Audit function is outsourced to external consultants.

The Group Annual Financial Statements for the year ended 31 March 2017 set out on pages 188 - 237 were approved on 25 August 2017 by the Board of the Group appointed in terms of the MTPA Act, 2005 (Act No 5 2005) which has assumed the responsibilities of the Board and are signed on its behalf by:

__________________________Mr. TJ Nzima

__________________________Mr. VA Sibiya


STATEMENT OF RESPONSIBILITIES FOR THE GROUP ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2017


PART FREPORT OF THE CHIEF EXECUTIVE OFFICER






The agency continued to market the province as a world class tourism destination in various trade and consumer shows around the globe. During the year under review, the province was showcased at some of the key platforms including the annual tourism lndaba in Durban, the SAT UK School roadshow in four cities in the UK, the IMEX in Frankfurt and the IBTM in Barcelona. We also participated in the regional trade shows in Swaziland and Mozambique. A number of domestic trade workshops were also conducted in Cape Town, Johannesburg and Pretoria. The Mpumalanga Convention Bureau, located within the MTPA, was launched in 2016.During the period under review, we continued our ongoing efforts in facilitating the effective training of emerging entrepreneurs active in tourism and tourism-related business activities. Our interventions provided an enabling environment for skills transfer and knowledge sharing. We also offered a vital advisory service for the benefit of newcomers to the tourism environment in order to drive the transformation agenda.

An allocation of R18 million was made available by the Province for the upgrade of certain tourism infrastructure at the Blyde Canyon and Manyeleti Nature Reserves. As a result significant improvements were made on view sites and accommodation facilities. New infrastructure includes a modern day visitor facility and caravan camping site at Manyeleti. Further, the once famous Blyde hiking trails were resuscitated. This new infrastructure will result in increased revenue for the MTP A.

Given the value of its asset base, the MTPA is under constant pressure to increase its revenue generation. The enabling legislation also empowers the entity to initiate commercial transactions that can assist in improving its revenue generation. In this regard, the MTPA has established a Commercial Operations Unit that will solely focus on this aspect. Appropriate guidelines have been established to ensure proper governance in these activities, taking into account ecological limits within which development is desirable. Particular attention has been given to the management of current concessions on certain nature reserves. A number of these concession agreements have been inherited from previous administrations and Limpopo Province, and therefore, do not necessarily comply with current Public Private Partnership principles. Others have been a subject of unresolved disputes. A regularization


process is underway to clear all disputes and align agreements with current principles, and to develop the capacity required for concession management. The success of this intervention was realised in the recovery of some top up concession fees amounting to over R3 million.

This renewed business-like approach has resulted in a number of opportunities identified in the reserves. Total revenue grew from R29, 8m in 2015/2016 to R37, 9m in 2016/2017, representing an increase of 29% year on year.









REPORT OF THE CHIEF EXECUTIVE OFFICER (continued)for the year ended 31 March 2017


PART F

We are pleased to present our report for the financial year ended 31 March 2017.

AUDIT COMMITTEE MEMBERS AND ATTENDANCE

The Audit Committee consists of the members listed hereunder and should meet at least four times per annum as per its approved terms of reference. During the current year, eight meetings were held.

NAME ROLE ATTENDED

Ms. PMK Mvulane: Chairperson (1 August 2016) Chairperson 5

Mr. MS Mthembu (01 April 2013) External Member 7

Ms. SFS Makhathini (01 April 2016) External Member 5

Ms. N Mtebele (Resigned 6 March 2017) External Member 3

Ms. MS Nee’ Nkgadima (Resigned 31 Aug 2016) External Member 1

Ms. TE Mawelele (Term ended 31 July 2016) External Member 1

Mr. TF Keetse (Term ended 31 July 2016) External Member 1

Ms. BN Mzuzu (23 March 2017) External Member 0

AUDIT COMMITTEE RESPONSIBILITY

The Committee reports that it has complied with its responsibilities arising from Section 38 (1)(a) of the Public Finance Management Act 1 of 1999 and Treasury Regulations 3.1.

The Committee also reports that it has adopted appropriate formal terms of reference as its Audit Committee charter, has regulated its affairs in compliance with this charter, and has discharged its responsibilities as contained therein. The charter is reviewed annually and adopted by the committee on approval by the Accounting Authority.

INTERNAL AUDIT

The Committee co-ordinates and monitors the activities of the internal audit function. Through this, the Committee is able to report on the effectiveness of the internal audit. The internal audit function was co-outsourced and operational for the financial year under review even though there were budget constraints.

The Committee has reviewed the Internal Audit Reports which were prepared as per approved the risk based three year rolling internal audit plan. The reports were recommended to the Accounting Authority for adoption. The Committee is satisfied with the effectiveness of the internal audit function.

EFFECTIVENESS OF INTERNAL CONTROLS

The Committee assessed the effectiveness of the internal controls and reviewed the risk assessment process, as follows:

• Attended the workshop with all key stakeholders reviewing APP which included strategic risks assessment; • Considered the effectiveness of the Agency risk assessment processes as on going by management;

GROUP AUDIT COMMITTEE REPORTfor the year ended 31 March 2017


• Monitored the follow up process on all findings by the auditors to ensure findings are dealt with and addressed at root causes; in most cases, the root cause were not addressed and consequence management was not executed.

• Sought assurance from management that action is being taken on related issues identified by auditors. The assurance were not adequate to deal with historical issues in relation to previous audit findings, human resources function, and performance management including filling up of key vacancies.

• Provided guidance and advice to Management and the Accounting Authority strengthening over risk management processes, financial reporting and performance information when we reviewed quarterly reports.

The Committee reviewed the internal audit reports; where there were weaknesses identified within the Agency and considered the adequacy of management responses to ensure the risk exposure is reduced and there is continuous improvement within the control environment. The management corrective action were not adequate to deal with the system or processes to ensure such weaknesses don’t arise in future or current year.

The Committee is not satisfied that the Agency is continually focused on maintaining effective levels of internal controls since most of audit findings raised by both Internal Auditors and Auditor General South Africa are repeated in the current year. The Committee concur with auditors that internal controls were not effective and reliable.

A matter of concern to the Audit Committee is the fact that the Agency is currently not implementing all internal audit action plans agreed upon.

INYEAR MANAGEMENT AND QUARTERLY REPORTING

The administration of quarterly reports submitted in terms of the PFMA and Division of Revenue Act were partly adequate according to internal audit results and management assurances.

EVALUATION OF FINANCIAL STATEMENTS

The Audit Committee has:

• reviewed and discussed the audited annual financial statements to be included in the annual report with the agency;

• reviewed the changes in accounting policies and practices;• Considered the appropriateness, adoption and consistent application of the South African Statement of

Generally Recognised Accounting Practices adopted by the Accounting Authority;• Considering the quality and timeliness of the financial information available to the Committee for oversight

purposes during the year;• Reviewed the financial statements of the Entity for the year ended 31 March 2017 and is satisfied that they

comply relevant provisions of the Public Finance Management Act and the South African Statement of Generally Recognised Accounting Practices;

• evaluated the audited annual financial statement for the consistent application of accounting policies and practices;

• reviewed the annual financial statements for abnormal and/or significant transactions of the agency and the disclosure thereof; and

• sought explanations for all significant variances in the annual financial statements as compared to the prior year.

GROUP AUDIT COMMITTEE REPORT (continued...)for the year ended 31 March 2017


PART F

EVALUATION OF REPORTING ON PREDETERMINED OBJECTIVES

The Audit Committee has to the extent possible:

• reviewed the compliance with the National Treasury Guidelines for the preparation of the annual report;• reviewed the alignment of reporting to the annual performance plan;• reviewed the consistency of quarterly reporting to the audited annual report; and• reviewed whether the performance reported is in agreement with portfolio of evidence.

AUDITOR GENERAL SOUTH AFRICA

We have reviewed the entity’s implementation plan for audit issues raised in the previous year and we are not satisfied that all the matters have been adequately resolved.

The Audit Committee concurs with the Auditor General South Africa’s conclusions on the annual financial statements and predetermined objectives.

GENERAL

The Audit Committee strongly recommends that the entity must prioritise the adequate and effective implementation and frequent monitoring of the audit action plans for both internal and external audit together with all other recommendations made by the Audit Committee in order to achieve the required effectiveness in governance, accountability and clean administration.

____________________Ms. PMK MvulaneChairperson of the Audit CommitteeDate: 31 July 2017

GROUP AUDIT COMMITTEE REPORT (continued...)for the year ended 31 March 2017


GROUP REPORT OF ACCOUNTING AUTHORITY for the year ended 31 March 2017

1. Background

The Group is a juristic person established in terms of the MTPA Act (Act 5 of 2005) and is registered as a Schedule 3C Public Entity in terms of the PFMA Act (Act 1 of 1999). The Group’s main shareholder is the Department of Economic Development and Tourism (hereinafter ‘’DEDT’’) from which it receives its funding.

2. REVIEW OF ACTIVITIES MAIN BUSINESS AND OPERATIONS

Main business and operations

The objective of the Group is to fulfil its mandate in terms of the MTPA Act (Act 5 of 2005), which provides for the management and promotion of responsible Tourism and Nature Conservation in the Province and to ensure sustainable utilisation of natural resources for the benefit of everyone in the Province. The Group is committed to showcase Mpumalanga’s scenic beauty, diverse wildlife, adventure activities, culture and heritage.

Land Claims / Co–Management/ Settlement Agreements

The Group is facing a challenge of successful land claimants from the adjacent communities. The Group has attempted to resolve some of the claims submitted and have entered into co-management and settlement agreements. In 2010/2011 financial year, 3 (Three) land claims agreements (Mdala, Mkhombo, and Mabusa nature reserves) were finalised. In 2012, 1 (one) land claim agreements (Songimvelo nature reserve) was finalised. The Regional Land Claims Commissioner has endorsed them as authentic landowners however; the title deed is not yet transferred to them. This means that land will still return to the community.

The Group assisted the Regional Land Claims Commissioners to settle these claims in our priority reserves. The Group is still in the process of resolving more land claims and set up the Co-Management Committee (CMC) for the one already settled, pending Regional Land Claims Commissioner (RLCC) payment to claimants. The land claims is not allowing the Group to realise the full potential of the Conservation and Tourism capacity of the land and part of Development and Income generation. This has no impact on the financial statements as the Group by the nature of its provincial legislative mandate, has exclusive right to use, manage, preserve and develop all the reserve according to the acceptable recognised Standards and Legislation.

The operating results and state of affairs of the Group are fully set out in the attached the Group Annual Financial Statements.

2017 2016Financial Performance R RGrant received 304 387 100 307 898 000Conditional grant - Expanded Public Works Programme (Hereafter EPWP”) 2 911 000 2 538 000Zithabiseni 21 510 000 -Infrastructure upgrade 18 000 000 -(Deficit) (19 493 584) (5 737 601)Total assets 525 666 407 477 050 984Total liabilities 54 655 674 34 838 859


PART F

3. GOING CONCERN

We draw attention to the fact that at 31 March 2017 the Group had a net asset value of R 471 010 733 (Restated 2016: R442 212 125) and that the Group’s current liabilities does exceed its current assets by R 12 601 700 (Restated 2016:R9 140 749 ), the current liabilities includes a leave provision of R14 927 901 (2016 : R10 116 763), this provision will not strain the cash flow requirements of the entity due to the leave policy that does not allow voluntary encashment of leave. The board after having reviewed the projected cash flows for the foreseeable future and management’s assessment of Group’s ability to operate as a going concern, has a reasonable expectation that the agency have adequate resources to continue its operations as a going concern for the foreseeable future.

4. EVENTS AFTER REPORTING DATE

New CEO was appointed on the 1 April 2017.

The case between Barberton Mines and the Group relating to prospecting rights was ruled in favour of the Group by the Constitutional Court, since it was considered a protected area and therefore no longer a contingent liability for the Group.


Irregular expenditure to an amount of R 4 977 412 was identified during this year. Detail of this is disclosed under note 25. The Group has submitted to Provincial Treasury for condonement of 2016 balances.

6. BOARD MEMBERS FOR THE REPORTING PERIOD

NameMr. Nzima TJ ( Chairperson) Appointed 01 March 2016 to 29 February 2020Ms. Shabangu-Mndawe NR (Deputy Chairperson) Appointed 01 March 2016 to 29 February 2020Ms. Mzuzu NB Appointed 01 March 2016 to 29 February 2020Ms. Nkambule TB Appointed 01 March 2016 to 29 February 2020Mr. Gololo CL Appointed 01 March 2016 to 29 February 2020Ms. Masekaomeng MS (nee’ Nkgadima) Appointed 01 March 2016 to 31 August 2016 (Resigned)Mr. Mthombeni SG Appointed 01 March 2016 to 29 February 2020Ms. Makhathini SFS Appointed 01 March 2016 to 29 February 2020Ms. Sekhitla JS Appointed 01 March 2016 to 29 February 2020Dr. Magome DT Appointed 01 March 2016 to 29 February 2020Mr. Keetse TF Appointed 01 March 2016 to 29 February 2020

Ex officio Board MembersNameMr. Mgidi JS (Acting Head of Department) Term ended 30 June 2016Mr. Mkhize MW (Head of Department) Appointed 01 July 2016Mr. Nobunga BJ (Chief Executive Officer) Appointed 01 April 2017Mr. Sibiya VA (Acting Chief Executive Officer) Appointed 01 July 2015 to 31 March 2017

GROUP REPORT OF ACCOUNTING AUTHORITY (continued...)



7. ZITHABISENI RESORT AND CONFERENCE CENTRE

The Executive Council, at its meeting of 23 August 2015, resolved to transfer the Zithabiseni Resort and Conference Centre to the Group as a managing authority for the resort. The Group resumed responsibilities as a managing Authority effective 01 April 2016. Further to this effect, the Executive Council approved the option, which promotes joint ownership of the Resort by the State and the Community, but managed by an independent operator (to be appointed) with defined state and community benefits.

The Group maintains appropriate measures to ensure that the Government grant transferred to Zithabiseni is used for its intended purpose. The Group receives the Government grant from the Department of Economic Development and Tourism for further transfer to the Resort. The grant is mainly spent on Salaries and Wages. Monitoring on the use of the grant is done through requests for the company’s financial statements and regular reporting by the company through quarterly reports and the review of non-financial performance.

8. ANNUAL FINANCIAL STATEMENTS

These are Group Annual Financial Statements.

9. CONCLUSION

Other than the above, there is nothing that the Group Board wishes to draw attention to that has not already been highlighted elsewhere in the Group Annual Financial Statements, Auditor-General’s Report and Annual Report.

__________________________Mr. TJ Nzima

__________________________Mr. VA Sibiya


GROUP REPORT OF ACCOUNTING AUTHORITY (continued...) for the year ended 31 March 2017


PART F

Report of the auditor-general to the Mpumalanga Provincial Legislature on the Mpumalanga Tourism and Parks AgencyReport on the audit of the consolidated financial statements

Qualified opinion

1. I have audited the consolidated financial statements of the Mpumalanga Tourism and Parks Agency and its subsidiaries set out on pages 188 to 237, which comprise the consolidated statement of financial position as at 31 March 2017, the consolidated statement of financial performance, statement of changes in net assets, cash flow statement and statement of comparison of budget information with actual information for the year then ended, as well as the notes to the consolidated financial statements, including a summary of significant accounting policies.

2. In my opinion, except for the effects of the matters described in the basis for qualified opinion section of my report, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the group as at 31 March 2017, and the group’s financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999) (PFMA) .

Basis for qualified opinion

Property, plant and equipment

3. The parent entity did not recognise all items of infrastructure assets in accordance with GRAP 17, Property, plant and equipment for the year under review and for the previous year. Selected infrastructure assets from the floor amounting to R31 276 861 could not be traced to the fixed asset register. Consequently, property, plant and equipment was misstated. Additionally, there was a resultant impact on the accumulated surplus in the financial statements.

4. Additionally, I was unable to obtain sufficient appropriate audit evidence that the properties and buildings of the subsidiary, Zithabiseni Resort and Conference Centre (Proprietary) Limited, to the value of R50 781 144 were owned by the subsidiary. Furthermore, these properties were revalued in the previous financial year but the entity had no revaluation policy as part of its accounting policies. I was unable to confirm the ownership and the appropriate policy to be used by alternative means.

5. Consequently, I was unable to determine whether any adjustment was necessary to property, plant and equipment stated at R451 842 400 (2016: R419 572 008) in the consolidated financial statements.

Other income

6. I was unable to obtain sufficient appropriate audit evidence that the parent entity had properly charged and accounted for all revenue on concessions for the year under review and for the previous year. As the entity had not adequately addressed contract management issues, I was unable to determine whether all revenue relating to other income as disclosed in note 15 to the financial statements had been accounted for. I was unable to confirm the concession revenue by alternative means. Consequently, I was unable to determine whether any further adjustments were necessary relating to concession fees of R4 516 429 (2016: R3 115 580) included in other income of R15 137 241 (2016: R37 704 795) as disclosed in note 15 to the financial statements and receivables from exchange transactions of R4 071 786 (2016: R7 169 752) as disclosed in note 3 to the financial statements.

AUDITOR GENERAL’S REPORTfor the year ended 31 March 2017



7. I was unable to obtain sufficient appropriate audit evidence for revenue received from daily visitors for the subsidiary, Zithabiseni Resort and Conference Centre (Proprietary) Limited, due to the status of the accounting records. The company did not have adequate systems of internal control for the recording of all transactions for revenue received from daily visitors and I could not reconcile the transactions and events to the financial statements. I could not confirm the revenue received from daily visitors by alternative means. Consequently, I was unable to determine whether any further adjustments were necessary relating to the rendering of services of R26 861 906 (2016: R13 730 170) included in revenue from exchange transactions of R31 717 345 (2016: R16 784 875) as disclosed in note 13 to the financial statements.

8. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the consolidated financial statements section of my report.

9. I am independent of the group in accordance with the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code) together with the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

10. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion.

Emphasis of matters

11. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Restatement of corresponding figures

12. As disclosed in note 29 to the financial statements, the corresponding figures for 31 March 2016 have been restated as a result of an error in the financial statements of the entity at, and for the year ended, 31 March 2017.

Uncertainty relating to the future outcome of exceptional litigation

13. With reference to note 19 to the financial statements, the entity is the defendant in a land utilisation lawsuit of R740 million and alleged corruption lawsuit of R1 175 million. The entity is opposing the claims. The ultimate outcome of the matters cannot presently be determined.

Material impairments

14. As disclosed in note 3 to the financial statements, the receivables from exchange transactions balance was significantly impaired. The impairment of receivables from exchange transactions amounted to R5 647 848 (2016: R2 494 929), which represented 58% (2016: 26%) of the total debtors. The contribution to the provision for debt impairment was R3 152 919 (2016: R10 759).


15. As disclosed in note 25 to the financial statements, irregular expenditure of R35 957 190 incurred in previous years was awaiting condonation.

AUDITOR GENERAL’S REPORT (continued...)for the year ended 31 March 2017


PART F

Other matter

16. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Revision of the previously issued financial statements

17. The previously issued consolidated financial statements of the entity for the year ended 31 March 2017 were revised and re-issued because of a constitutional court ruling that confirmed the non-existence of previously disclosed contingencies information regarding the mining rights on the protected area.

Responsibilities of the accounting authority for the financial statements

18. The board of directors, which constitutes the accounting authority, is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the SA Standards of GRAP and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

19. In preparing the consolidated financial statements, the accounting authority is responsible for assessing the group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the accounting authority intends to either liquidate the entity or cease operations, or has no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the consolidated financial statements

20. My objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

21. A further description of my responsibilities for the audit of the consolidated financial statements is included in the annexure to the auditor’s report.

22. I am independent of the group in accordance with the IESBA code together with the ethical requirements that are relevant to my audit of the financial statements in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA code.

Report on the audit of the annual performance report


23. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

24. My procedures address the reported performance information, which must be based on the approved performance planning documents of the entity and its subsidiaries. I have not evaluated the completeness and appropriateness of



the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

25. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the public entity for the year ended 31 March 2017:

Programmes Pages in the annual performance report

Programme 5 – tourism 44 - 51

Programme 6 – biodiversity conservation 52 - 57

26. I performed procedures to determine whether the reported performance information was properly presented and whether the performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.

27. The material findings in respect of the usefulness and reliability of the selected programmes are as follows:

Programme 6 – biodiversity conservation

Increasing number of tourists visiting protected areas

28. I was unable to obtain sufficient appropriate audit evidence for the reported achievement of the target to increase the tourism visitor percentage by 10% (93 368) from a baseline of 933 677 per annum by 31 March 2017. This was due to adequate evidence not being provided. I was unable to confirm the reported achievement by alternative means. Consequently, I was unable to determine whether any adjustments were required to the reported achievement.


29. The indicator was reported as ‘number of hectares in the conservation estate’ while there was no target, contrary to the requirements of treasury regulations 28.2.2 and 30.1.3(g).


30. The reported achievement for the target to attend to 4 000 general permit applications received by 31 March 2017 was misstated, as the evidence indicated 5 940 and not 5 074 as reported.

31. I did not identify any material findings on the usefulness and reliability of the reported performance information for the following programme:

• Programme 5 – tourism

Other matters

32. I draw attention to the matters below.

Achievement of planned targets

33. Refer to the annual performance report on pages 44 to 51 and 52 to 57 for information on the achievement of the



PART F

planned targets for the year and the explanations provided for the under- or overachievement of a significant number of targets. This information should be considered in the context of the material findings on the usefulness and reliability of the reported performance information in paragraphs 28 to 30 of this report.

Adjustment of material misstatements

34. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of the biodiversity conservation programme. As management subsequently corrected only some of the misstatements, I reported material findings on the usefulness and reliability of the reported performance information. Those that were not corrected are included in the basis for qualified conclusion paragraphs.

Report on the audit of compliance with legislation


35. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the public entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance.

36. The material findings in respect of the compliance criteria for the applicable subject matters are as follows:

Annual financial statements, performance report and annual report

37. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records, as required by section 55(1)(a) and (b) of the PFMA. Material misstatements of non-current assets, revenue, expenditure and disclosure items identified by the auditors in the submitted financial statements were corrected and the supporting records were provided subsequently, but the uncorrected material misstatements and supporting records that could not be provided resulted in the financial statements receiving a qualified audit opinion.

38. Consolidated financial statements were not submitted for auditing within two months after the end of financial year, as required by section 55(1)(c)(i) of the PFMA.

Expenditure management

39. Effective steps were not taken to prevent irregular expenditure amounting to R4 977 411 as disclosed in note 25 to the financial statements, as required by section 51(1)(b)(ii) of the PFMA. Most of the irregular expenditure resulted from non-compliance with the Supply Chain Management (SCM) Regulations.

40. Effective steps were not taken to prevent fruitless and wasteful expenditure amounting to R1 567 086 as disclosed in note 23 to the financial statements, in contravention of section 51(1)(b)(ii) of the PFMA. Most of the fruitless and wasteful expenditure was the result of one post being remunerated to two individuals due to challenges at the entity.

Procurement and contract management

41. Quotations were accepted from prospective suppliers who did not submit a declaration on whether they are employed by the state or connected to any person employed by the state, which is prescribed to comply with treasury regulation 16A8.3.



42. Contracts and quotations were awarded to suppliers whose tax matters had not been declared by the South African Revenue Service to be in order, as required by treasury regulation 16A9.1(d) and the Preferential Procurement Regulations.

43. Sufficient appropriate audit evidence could not be obtained that contracts and quotations were awarded to suppliers whose tax matters had been declared to be in order by the South African Revenue Service, as required by treasury regulation 16A9.1(d) and the Preferential Procurement Regulations.

44. Sufficient appropriate audit evidence could not be obtained that bid adjudication was done by committees composed in accordance with the policies of the public entity, as required by treasury regulation 16A6.2(a), (b) and (c).

45. Sufficient appropriate audit evidence could not be obtained that awards were only made to suppliers who submitted a declaration of past supply chain practices such as fraud, abuse of the SCM system and non-performance, which is prescribed to comply with treasury regulation 16A9.2.

46. Sufficient appropriate audit evidence could not be obtained that contracts were awarded to only bidders who submitted a declaration on whether they are employed by the state or connected to any person employed by the state, which is prescribed to comply with treasury regulation 16A8.3.

47. Contracts were awarded to bidders based on evaluation criteria that were not stipulated in the original invitation for bidding, in contravention of treasury regulation 16A6.3(a) and the Preferential Procurement Regulations.

48. Sufficient appropriate audit evidence could not be obtained that contracts were awarded to bidders based on points given for criteria that were stipulated in the original invitation for bidding and quotations, as required by treasury regulation 16A6.3(a) and the Preferential Procurement Regulations.

49. Sufficient appropriate audit evidence could not be obtained that contracts were awarded to bidders that scored the highest points in the evaluation process, as required by section 2(1)(f) of Preferential Procurement Policy Framework Act of South Africa, 2000 (Act No. 5 of 2000) (PPPFA) and its regulations.

50. A contract was awarded to a bidder based on functionality criteria that differed from those stipulated in the original invitation for bidding, in contravention of preferential procurement regulation 4.

51. Bid documentation for the procurement of commodities designated for local content and production did not stipulate the minimum threshold for local production and content, as required by preferential procurement regulation 9(1).

52. Commodities designated for local content and production were procured from suppliers who did not submit a declaration on local production and content, as required by preferential procurement regulation 9(1).

53. Sufficient appropriate evidence could not be provided that commodities designated for local content and production were procured from suppliers who met the prescribed minimum threshold for local production and content, as required by preferential procurement regulation 9(5).

54. Sufficient appropriate audit evidence could not be obtained that contracts were awarded to suppliers based on preference points that were allocated and calculated in accordance with the requirements of the PPPFA and its regulations.



PART F

Other information

55. The accounting authority of the entity and its subsidiaries is responsible for the other information. The other information comprises the information included in the annual report, which includes the directors’ report and the audit committee’s report. The other information does not include the financial statements, the auditor’s report thereon and those selected programmes presented in the annual performance report that have been specifically reported on in the auditor’s report.

56. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon.

57. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the other information obtained prior to the date of this auditor’s report, I conclude that there is a material misstatement of this other information, I am required to report that fact.

58. I have read the other information included in the draft annual report and have nothing to report in this regard.

59. I have not yet received the final annual report containing the other information. When I do receive this information, and if I conclude that it contains a material misstatement, I am required to communicate the matter to those charged with governance and to request the other information to be corrected. If the other information is not corrected, I may have to re-issue my auditor’s report amended as appropriate.

Internal control deficiencies

60. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance thereon. The matters reported below are limited to the significant internal control deficiencies that resulted in the basis for the qualified opinion, the findings on the performance report and the findings on compliance with legislation included in this report.

Leadership

61. Adequate oversight responsibility was not exercised regarding financial and performance reporting and compliance as well as related internal controls.

62. Effective human resource management was not implemented to ensure that vacant key management positions were filled.

63. Policies and procedures that enable and support the understanding and execution of internal control objectives, processes and responsibilities relating to predetermined objectives were not adequately established and communicated to everyone.

64. The developed action plan to address external audit findings was not fully implemented, as recurring audit findings were identified.



Financial and performance management

65. Management did not adequately review the financial statements, as material misstatements were identified during the audit.

66. Management did not implement proper record keeping in a timely manner to ensure that complete, relevant and accurate information was accessible and available to support financial and performance reporting. Information was not always obtained in the required timelines.

67. Management did not implement adequate controls over daily and monthly processing and reconciling of transactions. Misstatements identified in performance reporting could have been avoided if reconciliations of listings to reported information and supporting documents had been adequately performed.

68. Management did not adequately review and monitor compliance with applicable laws and regulations, as evidenced by the compliance findings detailed in this report.

Governance

69. Adequate oversight of performance reporting was not implemented.

Mbombela

25 August 2017



PART F

Annexure – Auditor-general’s responsibility for the audit 1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional

scepticism throughout my audit of the consolidated financial statements, and the procedures performed on the reported performance information for selected programmes and on the entity’s compliance with respect to the selected subject matters.

Financial statements

2. In addition to my responsibility for the audit of the consolidated financial statements as described in the auditor’s report, I also:

• identify and assess the risks of material misstatement of the consolidated financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors, which constitutes the accounting authority.

• conclude on the appropriateness of the use of the going concern basis of accounting in the preparation of the financial statements by the board of directors, which constitutes the accounting authority. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the entity and its subsidiaries to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of the auditor’s report. However, future events or conditions may cause the entity to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Communication with those charged with governance

3. I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting authority that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards.




RRestated 2016

R

ASSETS

Current AssetsInventories 2 449 788 534 915Receivables from exchange transactions 3 4 071 786 7 169 752Receivables from non-exchange transactions 4 5 396 786 909 309Cash and cash equivalents 5 28 622 440 13 581 793

38 540 800 22 195 769Non-Current AssetsProperty, plant and equipment 6 451 842 400 419 572 008Heritage assets 7 35 283 207 35 283 207

487 125 607 454 855 215Total Assets 525 666 407 477 050 984

LIABILITIES

Current LiabilitiesPayables from exchange transactions 9 41 341 126 28 929 609Project liabilities 10 9 365 799 2 008 384Long service awards - short term portion 9 435 575 398 525

51 142 500 31 336 518Non-Current LiabilitiesFinance lease obligation 276 -Long service awards 9 3 512 898 3 502 341

3 513 174 3 502 341Total Liabilities 54 655 674 34 838 859Net AssetsContribution from owners 11 70 197 729 70 197 729ReservesRevaluation reserve 429 414 450 384 492 280Accumulated deficits (28 601 446) (12 477 884)Net Assets 471 010 733 442 212 125Total Liabilities 54 655 674 34 838 859Total net assets and liabilities 525 666 407 477 050 984

GROUP STATEMENT OF FINANCIAL POSITIONas at 31 March 2017


PART F


RRestated 2016

R

REVENUE

Revenue from non-exchange transactions (Grants received) 13 325 298 100 310 436 000Revenue from non-exchange transactions - (Zithabiseni grant received) 13 21 510 000 -Revenue from non-exchange transactions (Other) 13 1 800 471 4 231 710Revenue from exchange transactions 13 31 717 347 16 784 875Cost of sales 14 (969 187) -

Gross surplus 379 356 731 331 452 585Other income 15 15 137 241 37 704 796Operating expenses 15 (414 629 627) (375 821 145)

Operating deficit (20 135 655) (6 663 764)Interest income 16 932 054 930 523Interest expense 17 (289 983) (4 360)Deficit for the year (19 493 584) (5 737 601)

GROUP STATEMENT OF FINANCIAL PERFORMANCE



Figures in Rand Note(s)

Contribution from owners

R

Revaluation reserve

R

Accumulated deficits

R

Total net assets

R

Balance as at 01 April 2015 70 197 729 402 232 181 (28 996 859) 443 433 051

Changes in net assets Prior year Adjustments - - (458 549) (458 549)

Realisation of revaluation surplus - (17 739 903) 17 739 903 -

Net losses recognised directly in net assets - (17 739 903) 17 281 354 (458 549)

Deficit for the year - - (5 737 601) (5 737 601)

Revaluation surplus - (17 739 903) 11 543 753 (6 196 150)

Prior period error 29 - - 4 975 222 4 975 222

Total changes - (17 739 903) 16 518 975 (1 220 928)

Opening balance as at 31 March 2016 70 197 729 384 492 279 (12 477 884) 442 212 124

Restated balance as at 01 April 2016 70 197 729 384 492 279 (12 477 884) 442 212 124

(Deficit) / Surplus for the year - - (19 493 584) (19 493 584)

Correction of concession 29 - - (1 944 485) (1 944 485)

Realisation of revaluation surplus on buildings - (13 272 829) 13 272 829 -

Zithabiseni - - (7 958 322) (7 958 322)

Revaluation of building - Zithabiseni - 58 194 999 - 58 194 999

Total changes - 44 922 170 (16 123 562) 28 798 608

Closing balance as at 31 March 2017 70 197 729 429 414 449 (28 601 446) 471 010 732

Note(s) 11

GROUP STATEMENT OF CHANGES IN NET ASSETSfor the year ended 31 March 2017


PART F

Figures in Rand Note(s) 2017R

Restated 2016R

Cash flows from operating activities

Receipts

Cash receipts from exchange transactions 46 832 468 16 784 875

Cash receipts from non-exchange transactions 345 697 571 307 898 000


EPWP 2 911 000 2 538 000

Other income - 15 313 695

396 373 093 343 465 093

Payments

Employee costs 13 (277 195 495) (252 847 013)

Suppliers (97 443 095) (90 219 767)

Interest expense 15 (289 983) (4 360)

(374 928 573) (343 071 140)

Net cash flows from operating activities 18 21 444 520 393 953

Cash flows from investing activities

Purchase of property, plant and equipment 6 (10 849 244) (13 181 174)

Net cash flows from investing activities (13 760 244) (13 181 174)

Cash flows from financing activities

Movement in project liabilities 7 357 415 (3 133 030)

Finance lease payments (1 044) -

Net cash flows from financing activities 7 356 371 (3 133 030)

Net (decrease)/ increase in cash and cash equivalents 15 040 647 (15 920 251)

Cash and cash equivalents at the beginning of the year 13 581 793 29 502 044

Cash and cash equivalents at the end of the year 5 28 622 440 13 581 793

GROUP CASH FLOW STATEMENTfor the year ended 31 March 2017



YTD Approved budget Figures in Rand Adjustments YTD Budget


basis



Statement of Financial Performance

RevenueRevenue from exchange transactions Sale of goods 4 116 812 - 4 116 812 4 855 439 738 627 Note 1

Rendering of services 27 241 433 - 27 241 433 26 861 906 (379 527) Note 2

Concession fees 3 394 265 - 3 394 265 4 516 429 1 122 164 Note 3

Rental income 85 521 - 85 521 152 926 67 405 Note 4

Recoveries 197 891 - 197 891 251 964 54 073 Note 5

Wildlife Sales 6 420 000 - 6 420 000 2 241 105 (4 178 895) Note 6

Sundry income 1 726 078 - 1 726 078 3 625 562 1 899 484 Note 7

Joint project conservation income - - - 6 149 725 6 149 725 Note 8

Interest received 818 000 - 818 000 932 054 114 054 Note 9

Total revenue from exchange transactions 44 000 000 - 44 000 000 49 587 110 5 587 110 Note 19

Revenue from non-exchange transactionsGovernment grantsGrant allocation 303 896 619 490 000 304 386 619 304 387 100 481

Infrastructure upgrade 18 000 000 - 18 000 000 18 000 000 -

EPWP 2 911 000 - 2 911 000 2 911 000 -

Grant allocation - Zithabiseni 21 000 000 510 000 21 510 000 21 510 000 -

Total revenue from nonexchange transactions 345 807 619 1 000 000 346 807 619 346 808 100 481

Total revenue 389 807 619 1 000 000 390 807 619 396 395 210 5 587 591

ExpenditureCompensation of employees (248 926 605) - (248 926 605) (257 197 868) (8 271 263) Note 10

Board and board committee compensation (1 733 000) - (1 733 000) (1 788 716) (55 716) Note 11

EPWP compensation (2 911 000) - (2 911 000) (2 911 508) (508) Note 12

GROUP STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS for the year ended 31 March 2017


PART F


YTD Approved budget Figures in Rand Adjustments YTD Budget


basis



Programme costs (47 488 037) (490 000) (47 978 037) (25 751 677) 22 226 360 Note 13

Payment of capital assets (4 601 770) - (4 601 770) (13 751 651) (9 149 881) Note 14

Goods and services (54 147 207) - (54 147 207) (50 894 683) 3 252 524 Note 15

Operating expenses - Zithabiseni (30 000 000) (510 000) (30 510 000) (26 308 152) 4 201 848 Note 18

Cost of sales - Zithabiseni - - (969 187) (969 187)

Total expenditure (389 807 619) (1 000 000) (390 807 619) (379 573 442) 11 234 177

Operating surplus - - - 16 821 768 16 821 768

Joint project conservation expenses - - - (10 168 512) (10 168 512) Note 8

Interest expense - - - (5 354) (5 354)

Ringfenced expenses - - - (494 095) (494 095) Note 16

Finance costs - Zithabiseni - - - (284 629) (284 629)

- - - (10 952 590) (10 952 590)

Surplus / (Deficit) before taking into acccount non-cash items - - 5 869 178 5 869 178

ReconciliationBasis differenceAssets donations 528 719

Zithabiseni - Depreciation (3 037 084)

Increase in provision for bad debts (2 367 688)

Straightline operating lease (34 050)

Depreciation (29 245 676)

Increase in leave pay accrual (4 811 137)

Bonus provision 5 649

Stock adjustment 118 157

Profit/(loss) on fixed assets (271 303)

Non income statement - Capex 13 751 651

Actual Amount in theStatement of FinancialPerformance (19 493 584) Note 17

GROUP STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS (continued...)



VARIANCE ON BUDGET

Surplus as per the statement of financial performance

Revenue from exchange transaction

Note 1: Increased focus on game drive activities in Manyeleti Nature Reserves. Note 2: The public holidays during the year had a positive impact as evidenced by the increase in visitor numbers

including the increase of tariffs.Note 3: Recovery of prior year concessions fees since the disputes were resolved in the current yearNote 4: Rental agreement signed for the new tenants at key reserves after new infrastructure upgrade. Note 5: Recovery on staff consumption’s.Note 6: Due to drought experienced in the year the value and the demand for Game declined thus affecting the

incomeNote 7: Joint projects conservation expenses projects and insurance refunds income is included in sundry

income but is not budgeted for as it incidental in nature outside the Group normal operations.Note 8: The joint project conservstion income and expenses is the joint initiative with SANPARK, SANBI, DST and

other projects, to promote conservation management within the protected areas in the nature reserves. Conditional grants were received that was not budgeted for and conseqently neither the joint conservation expenses. Grant income and expenses cannot be budgeted for, as the joint project conservation occurs as and when required by the different parties.

Note 9: Interest income increased as a result of excess cash reserves for ring fenced projects.


Note 10: Salary increase negotiated higher than budget, due to grading appeals.Note 11: The overspending of Board remuneration is as a result of special meetings.Note 12: The overspending will be funded through the Group operational saving.Note 13: Requirement of GRAP to reclassify capital expenditure from Programme Costs to assets. R6.7m for the

year was transferred to Work in Progress under Payment of Capital Asset, R3.9m related to prepayment towards the project. Extensive negotiations with claimant communities delayed spending on infrastructure development (R7.7m). Prolonged stakeholder engagement delayed signing of MOA on Flagship project (R1.4m). Protracted legal cases causes sporadic invoicing (R2.2m).


Note 14: Include in this amount are assets acquired for the projects.Note 15: The savings on goods and services were directed to offset an overspending on salaries.Note 16: This relates to expenditure against the ring fenced monies received in previous financial years. These

money remains a commitment up until the expenditure is incurred.Note 17: Agreed to the Group Statement of Financial Performance (SPF).Note 18: The overspending against the baseline budget was actually offset by revenue generated by Zithabiseni. Note 19: Included in the total revenue is revenue from Zithabiseni amounting to R 5.3m against the budget of

R9m

GROUP STATEMENT OF COMPARISON OF BUDGET AND ACTUAL AMOUNTS (continued...)for the year ended 31 March 2017


PART F

1. BASIS OF PREPARATION

The Group Annual Financial Statements have been prepared in accordance with the effective Standards of Generally Recognised Accounting Practice (GRAP), including any interpretations and directives issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act, (Act No 1 of 1999).

The Group Annual Financial Statements are prepared on the accrual basis of accounting and incorporate the historical cost conventions as the basis of measurement, except where specified otherwise.

In the absence of an issued and effective Standard of GRAP, accounting policies for material transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with Directive 5.

Assets, liabilities, revenues and expenses were not offset, except where offsetting is either required or permitted by a Standard of GRAP.

The principal accounting policies, applied in the preparation of these Group Annual Financial Statements, are set out below, which are consistent with those adopted in the prior financial year:

1.1 Significant judgments and sources of estimation uncertainty

(i) These Group Annual Financial Statements have been prepared based on the expectation that the entity will continue to operate as a going concern for at least the next 12 months.

(ii) The Group Annual Financial Statements have been prepared on accruals basis.(iii) Changes in accounting policies are accounted for in accordance with the transitional provisions in the standard.

If no such guidance is given, they are applied retrospectively, unless it is impracticable to do so, in which case they are applied prospectively.

(iv) Transactions are accounted for and presented in accordance with their substance and economic reality and not merely their legal form. The substance of transactions or other events is not always consistent with that which is apparent from their legal or contrived form.

(v) Presentation and disclosure takes into consideration the materiality of the transaction, which can either be material qualitatively or quantitatively or both.

(vi) In preparing the Group Annual Financial Statements, Management is required to make estimates and assumptions that affect the amounts represented in the Group Annual Financial Statements and related disclosures. Use of available information and the application of judgments is inherent in the formation of estimates. Actual results in the future could differ from these estimates which may be material to the Group Annual Financial Statements. Accounting estimates are utilised in determining fair value, total useful lives and remaining useful lives of property, plant and equipment.

1.2 Property, plant and equipment

Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are recognised in the Group Statement of Financial Position initially at cost and thereafter measured at the end of the reporting period at the revalued amount, being the fair value at the date of revaluation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are performed with sufficient regularity such that the carrying amounts do not differ materially from those that would be determined using fair values at the end of the reporting period.

GROUP ACCOUNTING POLICIESfor the year ended 31 March 2017


Any revaluation increase arising on the revaluation of such land and buildings is recognised in other comprehensive income, except to the extent that it reverses a revaluation decrease for the same asset previously recognised in surplus or deficit, in which case the increase is credited to surplus or deficit to the extent of the decrease previously expensed. A decrease in the carrying amount arising on the revaluation of such land and buildings is recognised in surplus or deficit to the extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset.

Depreciation on revalued buildings is recognised in set of the Group Statement of Financial Performance. On the subsequent sale or retirement of a revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly to accumulated deficit. The revaluation reserve in equity related to a specific item of property, plant and equipment is transferred directly to accumulated surplus or deficit as the asset is used. The amount transferred is equal to the difference between depreciation based on the revalued carrying amount and depreciation based on original cost of the asset.

1.2 Property, plant and equipment (continued)

Other fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual values and depreciation method are reviewed at each year end. Changes are accounted for as a change in accounting estimate.

Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where shorter, the term of the relevant lease. The gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in surplus or deficit.

The depreciation rates are in accordance with the Group’s asset management policy. Assets are written off over their expected useful lives up to their residual values. The depreciation rates are the following:

Item Average useful lifeBuildings 10-80 yearsLarge capital equipment 25%Furniture and fixtures 20-25%Motor vehicles 33%Small capital equipment 25%Technical furniture and equipment 20%Computer software 33%Infrastructure 10 - 50 years

Large and small capital equipment and technical furniture and equipment have been grouped together for disclosure purposes.

GROUP ACCOUNTING POLICIES (continued...) for the year ended 31 March 2017


PART F

1.3 Heritage assets

Heritage assets are assets, which have a cultural, environmental, historical, natural, scientific, technological, or artistic significance, and are held indefinitely for the benefit of present and future generations.

Classes of heritage assets include conservation areas such as reserves. This land is reflected as a heritage asset of the Group.

Characteristics often displayed by heritage assets include the following:

• their value in cultural, environmental, educational and historical terms is unlikely to be fully reflected in monetary terms;

• ethical, legal and/or statutory obligations may impose prohibitions or severe stipulations on disposal by sale; · they are often irreplaceable;

• their value may increase over time even if their physical condition deteriorates; • they have an indefinite life and their value appreciates over time due to their cultural, environmental, educational,

natural scientific, technological, artistic or historical significance; and · • they are protected, kept unencumbered, cared for and preserved.

Recognition

A heritage asset shall be recognised as an asset if, and only if:

• it is probable that future economic benefits or service potential associated with the asset will flow to the entity; and

• the cost or fair value of the asset can be measured reliably.

The Group holds heritage assets through conservation areas in the reserves that are regarded as heritage assets. The Group does not recognise heritage assets, which on initial recognition, do not meet the recognition criteria of a heritage asset because they cannot be reliably measured. Relevant and useful information about them has been disclosed in the notes to the annual financial statements.

Initial measurement

A heritage asset that qualifies for recognition as an asset, shall be measured at its cost. When it is acquired through a nonexchange transaction, it will be measured at its fair value/deemed cost as at the date of acquisition.

Subsequent measurement

After recognition as an asset, a class of heritage assets is carried at its cost less any accumulated impairment losses.

Impairment

The Group assesses at each reporting date whether there is an indication that it may be impaired. If any such indication exists, the Group estimates the recoverable amount or the recoverable service amount of the heritage asset.



1.3 Heritage assets (continued)

Transfers

Transfers from heritage assets are only made when the particular asset no longer meets the definition of a heritage asset. Transfers to heritage assets are only made when the asset meets the definition of a heritage asset. The transfer will be made at the carrying value of the heritage asset.

Derecognition

The Group derecognises heritage assets on disposal, or when no future economic benefits or service potential are expected from its use or disposal. The gain or loss arising from derecognition of a heritage asset is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the heritage asset. Such difference is recognised in surplus or deficit when the heritage asset is derecognised.

1.4 Financial instruments

Initial recognition

The Group classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.

Financial assets and financial liabilities are recognised on the Group’s statement of financial position when the Group becomes party to the contractual provisions of the instrument.

Receivables from exchange and non-exchange transactions

Trade and other receivables are classified as receivables from exchange transactions and receivables from non-exchange transactionsTrade receivables are measured at initial recognition at fair value less provision made for impairment of these receivables.

Short-term receivables and payables are not discounted where the initial credit period granted or received is consistent with terms used in the public sector either through established practices or legislation.

The Group provides for receivables which are older than 120 days. Appropriate allowances for estimated irrecoverable amounts are recognised in deficit or surplus when there is objective evidence that the asset is impaired. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial re-organisation, and default or delinquency in payments are considered indicators that the trade receivable is impaired.

The carrying value of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the income statement within operating expenses. When a trade receivable is uncollectible, it is written off against the allowance account for trade receivables. Subsequent recoveries of amounts previously written off are credited against operating expenses in the Group Statement of Financial Performance.



PART F

1.4 Financial instruments (continued)

Payables from exchange transactions and payables from non-exchange transactions

Payables from exchange transactions are carried at the fair value of the consideration to be paid in future for goods or services that have been received or supplied and invoiced or formally agreed with the supplier.

Trade payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.

These are initially and subsequently recorded at fair value.

Other loans and receivables

Other financial assets classified as loans and receivables are initially recognised at fair value plus transaction costs, and are subsequently carried at amortised cost less any accumulated impairment losses.

These financial assets are not quoted in an active market and have fixed or determinable payments.

1.5 Tax

Current tax assets and liabilities

The Group is registered as a tax payer in terms of S10(1) of the Income Tax Act, 1962. The institution qualifies as an exempt institution, and is accordingly exempt from South African normal tax in terms of S10(1) of the Income Tax Act, 1962.

1.6 Leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases.

Operating leases

Leases for assets under which all the risks and benefits of ownership are effectively retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Group Statement of Financial Performance on a straight-line basis over the period of the lease after taking into account any fixed escalation clauses.



1.6 Leases (continued)

Payments made under operating leases are charged to the Group Statement of Financial Position income on a straight-line basis over the period of the lease after taking into account any fixed escalation clauses. Contingent rents are charged as an expense in the periods in which they are incurred.

1.7 Inventories

The Group inventories include consumables, staff uniforms and fuel.

Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition.

Subsequently inventories are measured at the lower of cost and net realizable value.

Inventories are measured at the lower of cost and current replacement cost where they are held for;

• Distribution at no charge or for a nominal charge; or • Consumption in the production process of goods to be distributed at no charge or for a nominal charge.

Current replacement cost is the cost the entity incurs to acquire the asset on the reporting date.

The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of operations less the estimated costs of completion and the estimated costs necessary to make the sale, exchange or distribution.

When inventories are sold, the carrying amounts of those inventories are recognised as an expense in the period in which the related revenue is recognised. If there is no related revenue, the expenses are recognised when the goods are distributed, or

related services are rendered. The amount of any write-down of inventories to net realisable value or current replacement cost and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value or current replacement cost, are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

1.8 Impairment of cash-generating assets

Cash-generating assets are those assets held by the entity for the purpose of generating a commercial return. When an asset is deployed in a manner consistent with that adopted by a profit-orientated entity, it generates a commercial return.



PART F

1.8 Impairment of cash-generating assets (continued)

The Group assesses at each reporting date whether there is any indication that an asset or cash-generating unit to which an asset belongs to may be impaired.

When such an indication exists, the entity estimates the recoverable amount of the asset. The recoverable amount is the higher of the cash-generating asset’s fair value less costs to sell and its value in use. The value in use is determined as the present value of the estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life.

The future expected cash flows are discounted at a rate that reflects the current market assessment of the time value of money and the risks specific to the asset for which the future cash flow estimates have not been adjusted.

If the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired. An impairment loss is recognised immediately in surplus or deficit.

The Group assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable amount of that asset and accounts for the reversal of impairment loss if necessary. The increase in the carrying amount of an asset due to the reversal of an impairment loss should not exceed what the carrying amount would have been if no impairment loss had been recognised.

1.9 Impairment of non-cash-generating assets

Non-cash-generating assets are those assets held by the entity without an intention of generating a commercial return from such asset, such as assets used for general administrative and governance purposes and assets used purely for service delivery. This identification is based on the materiality of cash flows generated from these assets.

The Group assesses at each reporting date whether any indications exist that an asset may be impaired. When such an indication exists, the entity estimates the recoverable service amount of the asset. The recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use. The value in use is determined by using either the depreciated replacement cost, restoration cost or service unit approach, depending on the availability of data and the nature of the impairment.

If the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired. An impairment loss is recognised immediately in surplus or deficit.

The Group assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable service amount of that asset and accounts for the reversal of impairment loss if necessary. The increase in carrying amount of an asset due to the reversal of impairment loss should not exceed what the asset’s original carrying value would have been if no impairment loss were recognised.



1.10 Contribution from owners

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

1.11 Contingent assets

Contingent assets are possible assets whose existence will be confirmed by the occurrence or non-occurrence of uncertain future events that are not wholly within the control of the entity. Contingent assets are not recognised, but they are disclosed when it is more likely than not that an inflow of benefits will occur. However, when the inflow of benefits is virtually certain an asset is recognised in the statement of financial position, because that asset is no longer considered to be contingent.

1.12 Employee benefits

Short-term employee benefits

The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick leave, bonuses, and non-monetary benefits such as medical care), are recognised in the period in which the service is rendered and are not discounted.

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs.

The expected cost of bonus payments is recognised as an expense when there is a legal or constructive obligation to make such payments as a result of past performance.

Defined contribution plans


Payments made to industry-managed (or state plans) retirement benefit schemes are dealt with as defined contribution plans where the Group’s obligation under the schemes is equivalent to those arising in a defined contribution retirement benefit plan.

Other long-term employee benefits

Other long-term employee benefits may include, for example:

(a) long-term compensated absences such as long service or sabbatical leave;(b) other long service benefits;(c) long-term disability benefits;(d) bonus, incentive and performance related payments payable twelve months or more after the end of the

reporting period inwhich the employees render the related service;(e) deferred compensation paid twelve months or more after the end of the reporting period in which it is earned.



PART F

1.12 Employee benefits (continued)

Long service awards

Long service awards are provided to employees who achieve certain pre-determined milestones of service within the Group. The Group’s obligation under these plans is valued periodically and the corresponding liability is raised. Payments are set-off against the liability, including notional interest, resulting from the valuation by management and are charged against the Group Statement of Financial Performance as employee benefits upon valuation.

Gains and losses arising from the experience adjustments and changes in assumptions, is charged or credited to the Group Statement of Financial Performance in the period that it occurs. These obligations are valued periodically by management.

1.13 Provisions

Provisions are recognised when:

• the Group has a present obligation as a result of a past event;• it is probable that an outflow of resources embodying economic benefits or service potential will be required to

settle the obligation; and• a reliable estimate can be made of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.14 Revenue from non-exchange transaction: Government Grant

Government grants

Government grants are recognised in the period when they become receivable and credited to the Group Statement of Financial Performance. Funds received for capital development as conditional grants are recognised as deferred income and credited to the Group Statement of Financial Performance on a straight-line basis when the stipulations of the conditional grants are met.

Restrictions on government grants may result in such revenue being recognised on a time proportion basis. Where there is no restriction on the period, such revenue is recognised on receipt or when the Act becomes effective, whichever is earlier.



1.14 Revenue from non-exchange transaction: Government Grant (continued)

When government remit grants on a re-imbursement basis, revenue is recognised when the qualifying expense has been incurred and to the extent that any other restrictions have been complied with.


Donations received:

Revenue from donations received shall be measured at the amount of the increase in net assets which in this case will be the net proceeds received from the various donors; and

Conditional grant:

Revenue from special projects grant shall be measured at the amount of the increase in net assets which in this case will be the net proceeds received from the funders. If conditions are attached to the grant a liability will be recognised and shall be the best estimate of the amount required to settle the present obligation at the reporting date. When a liability is subsequently reduced because a condition is satisfied the amount of the reduction in the liability will be recognised as revenue.

1.15 Revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange


When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

• The amount of revenue can be measured reliably.• It is probable that the economic benefits or service potential associated with the transaction will flow to the

entity.• The stage of completion of the transaction at the reporting date can be measured reliably.• The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.



PART F

1.15 Revenue from exchange transactions (continued)

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue shall be recognised only to the extent of the expenses recognised that are recoverable

• Accommodation income is recognised on a daily basis.• Entrance fees are recognised on a daily basis and other tourist related activities are recognised upon

commencement of the activity.• Partnership income relates to employment projects that are administered by the Group but funded from external

parties. i.e. Group – Environmental Monitors for PMU, ICMA – Komati river scientific programs is included in sundry income. These are recognised when accrued.

• Sundry income relates to once of payments that are received for insurance claims, incidental rental income, nursery sales, wood sales etc. These are recognised when accrued.

• Sales relates to game sales, hunting packages and fishing, hunting permits.• Management fees for managing special projects are recognised on a monthly basis, based on the services

performed.• Rent received is recorded on a daily basis or monthly in accordance with the substance of the relevant

agreements.• Income from concessions granted to operators to build, operate and transfer lodges and from rental of facilities

to operators is recognised as it accrues over the period of the agreement.

Sale of goods and services

Revenue from the sale of goods is recognised when all the following conditions have been satisfied:

• The Group has transferred to the buyer the significant risks and rewards of ownership of the goods;• The Group retains neither continuing managerial involvement to the degree usually associated with ownership

nor effective control over the goods sold;• The amount of revenue can be measured reliably;• It is probable that the economic benefits associated with the transaction will flow to the Group; and• The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods and services provided in the normal course of business, net of trade discounts and volume rebates.

Interest is recognised, in the Group Statement of Financial Performance, using the effective interest rate method.

1.16 Capital Commitments

Capital commitments are disclosed in respect of contracted amounts for which delivery by the contractor is outstanding at the accounting date, and for amounts which the Board’s approval has been obtained but not yet contracted for. Commitments are not recognised in the Group Statement of Financial Position as a liability or as an expenditure in the Group Statement of Financial Performance but are included in the disclosure notes 25.



Project Liabilities

Projects arise as and when a new project is planned per the Group’s implementation plan. These projects are funded by External stakeholders and the projects funds are managed by the Group.

The cash payments made during the year relating to these projects are recognized as expenditure in the Group Statement of Financial Position when final authorisation for payments is effected on the system (by no later than 31 March of each year). Any unutilised amounts are recognised as payables in the Group Statement of Financial Position.

Fruitless and wasteful expenditure

Fruitless and wasteful expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the Group Statement of Financial Performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the Group Statement of Financial Performance.


Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including -

(a) this Act; or(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or (c) any provincial legislation providing for procurement procedures in that provincial government.

Irregular expenditure that was incurred and identified during the current financial year is disclosed under note 22.

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred, unless it is impractical to determine, in which case reasons therefore must be provided in the notes.

Irregular expenditure receivables are measured at the amount that is expected to be recovered and are de-recognised when settled or written off as irrecoverable.

Irregular expenditure must be removed from the balance of the irregular expenditure notes when it is either

(a) condoned by the relevant authority if no official was found to be liable in law; (b) recovered from an official liable in law; (c) written-off if it’s irrecoverable from an official liable in law; or (d) written-off if it’s not condoned and not recoverable.



PART F

1.20 Contingent Liabilities

Contingent liabilities are possible obligations that arose from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within control of the entity; or a present obligation that arises from past events but is not recognised because:

• it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

• ·the amount of the obligation cannot be measured with sufficient reliability.

1.21 Budget information

The Group is typically subject to budgetary limits in the form of appropriations or budget authorisations (or equivalent), which is given effect through authorising legislation, appropriation or similar.

General purpose financial reporting by Group shall provide information on whether resources were obtained and used in accordance with the legally adopted budget.

The approved budget is prepared on an accrual basis and presented by programmes linked to performance outcome objectives.

The approved budget covers the fiscal period from 01/04/2016 to 31/03/2017.

1.22 Related parties

The Group operates in an economic sector currently dominated by entities directly or indirectly owned by the South African Government. As a consequence of the constitutional independence of the three spheres of government in South Africa, only entities within the provincial sphere of government are considered to be related parties.

Management are those persons responsible for planning, directing and controlling the activities of the Group, including those charged with the governance of the Group in accordance with legislation, in instances where they are required to perform such functions. This includes close family members who are considered to be those family members who may be expected to influence, or be influenced by, that Management in their dealings with the Group.

1.23 Change in Accounting Policies, Estimates and Errors

Change in estimate

A change in accounting estimate is an adjustment of the carrying amount of an asset or a liability, or the amount of a period consumption of an asset, the results from the assessment of the present status of, and expected future benefits and obligations associated with assets and liabilities. Change in accounting estimate result from new information and new developments and are not correction of errors.



The effect of a change in accounting estimate shall be recognised prospectively by including it in surplus or deficit in:

• the period of the change, if the change affects that period only; or • the period of the change and future periods, if the change affects both.

To the extent that a change in an accounting estimate gives rise to changes in assets and liabilities, or relates to an item of net assets, it shall be recognised by adjusting the carrying amount of the related asset, liability or item of net assets in the period of the change.

Prior period errors

Prior period errors are omissions from, and misstatements in, the entity’s financial statements for one or more prior periods arising from a failure to use or misuse of, reliable information that:

• was available when financial statements for those period were authorised for issue; and• could reasonably be expected to have been obtained and taken into account in the preparation and presentation

of those financial statements.

A prior period error shall be corrected by retrospective restatement in the first set of financial statements authorised for issue after their discovery by:

• restating the comparative amounts for the prior period(s) presented in which the error occurred; or• if the error occurred before the earliest prior period presented, restating the opening balances of assets,

liabilities and net assets for the earliest prior period presented.

A prior period error shall be corrected by retrospective restatement except to the extent that it is impracticable to determine either the period-specific effects or the cumulative effect of the error.

When it is impracticable to determine the period-specific effects of the error on comparative information for one or more prior periods presented, the entity shall restate the opening balances of the assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable (which may be the current period).

When it is impracticable to determine the cumulative effect, at the beginning of the current period, the entity shall restate the comparative information to correct the error prospectively from the earliest date practicable.

Change in Accounting Policies

Accounting policies are the specific principles, bases, conventions, rules and practices applied by an entity in preparing and presenting financial statements.

An entity shall change an accounting policy only if the change:

• is required by a standard of GRAP; or• results in the Group Annual Financial Statements providing reliable and more relevant information about the

effects of the transactions, other events or conditions on the Group’s Financial Position, Financial Performance or Cash Flows.



PART F

A change in accounting policy shall be applied retrospectively, except to the extent that it is impracticable to determine either the period-specific effects or the cumulative effect of the change.

When is it impracticable to determine the period-specific effects of changing an accounting policy on comparative information of one or more prior periods presented, the entity shall apply the new accounting policy to the carrying amounts of the assets and liabilities as at the beginning of the earliest period of which retrospective application is practicable, which may be the current period, and shall make a corresponding adjustment to the opening balance of each affected component of net assets for that period. When it is impracticable to determine the cumulative effect, at the beginning of the current period, of applying a new accounting policy to all prior periods, the entity shall adjust the comparative information to apply the new accounting policy prospectively from the earliest date practicable.

1.24 New standards and interpretations

The standards and interpretations are effective 01 April 2016 and adopted by Group during the current year

STANDARDGRAP 1 - Presentation of Financial StatementsGRAP 2 - Cash Flow StatementsGRAP 3 - Accounting Policies, Changes in Accounting Estimates and ErrorsGRAP 9 - Revenue from Exchange TransactionsGRAP 12 - InventoriesGRAP 13 - LeasesGRAP 14 - Events After the Reporting DateGRAP 17 - Property Plant and EquipmentGRAP 19 - Provisions, Contingent Liabilities and Contingent AssetsGRAP 21 - Impairment of Non-cash-generating AssetsGRAP 23 - Revenue from Non-exchange Transactions (Taxes and Transfers)GRAP 24 - Presentation of Budget Information in Financial StatementsGRAP 25 - Employee BenefitsGRAP 26 - Impairment of Cash-generating assetsGRAP 27- AgricultureGRAP 103 - Heritage AssetsGRAP 104 - Financial Instruments



The following standards have been revised and approved, that are effective 01 April 2017 and the Group has not early adopted any of these standards. The Board is still assessing the impact of the implementation of the standards.

STANDARDGRAP 20 - Related Party DisclosuresGRAP 32 - Service Concession Arrangements: GrantorGRAP 34 - Separate Financial StatementsGRAP 35 - Consolidated Financial StatementsGRAP 36 - Investments in Associates and Joint VenturesGRAP 37 - Joint ArrangementsGRAP 38 - Disclosure of Interests in Other EntitiesGRAP 108 - Statutory ReceivablesGRAP 109 - Accounting by Principals and AgentsGRAP 110 - Living and Non-living Resources



PART F

Figures in Rand2017

RRestated 2016

R

DISCLOSURE NOTESTO THE GROUP ANNUAL FINANCIAL STATEMENTS (continued...)


2. INVENTORIES

Consumable Stores 114 650 78 778

Fuel (Diesel, Petrol) 335 138 456 137

449 788 534 9153. RECEIVABLES FROM EXCHANGE TRANSACTIONS

Receivable from exchange transactions 9 719 634 9 664 681

Provision for impairment of trade receivable (5 647 848) (2 494 929)

4 071 786 7 169 752

The average credit period on trade receivables is 30 days. No interest is charged on outstanding balances of trade receivable accounts.

The majority of the Group’s accounts receivables originate from tender awarding processes. The inherent credit risk is mitigated by a credit verification process performed before awarding of future accounts.

The following receivables had balances outstanding that represented more than 5 % of the total balance of outstanding receivable from exchange transactions:

31 March 2017Percentage of

total31 March 2016 Percentage of

total

Account Rand (%) Rand (%)Inzalo / BOE 1 604 584 16 1 604 584 16

Tintswalo Safari Lodge 672 848 6 1 541 894 15

CATHSSETA 918 699 9 1 587 759 16

CAWS 1 149 171 11 1 194 171 12

Honeyguide Tented Safari Camps 3 280 338 33 2 612 812 27

7 625 640 8 541 220

Ageing of debtors is as follows:

Balance at 31 March 2017

Balance at 31 March 2016

Account Rand Rand

0 - 30 days 3 860 995 5 520 581

60 - 90 < days 137 497 1 649 171

90 - 120 days 234 152 -

> 120 days 4 628 465 2 494 929

Zithabiseni - 0-120 days 858 525 -

9 719 634 9 664 681

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DISCLOSURE NOTESTO THE GROUP ANNUAL FINANCIAL STATEMENTS (continued...) for the year ended 31 March 2017

3. RECEIVABLES FROM EXCHANGE TRANSACTIONS (continued)

Reconciliation of provision for impairment of trade and other receivables Opening balance (2 494 929) (2 484 170)

Provision for doutful debts (3 152 919) (10 759)

(5 647 848) (2 494 929)

In determining the recoverability of a trade receivable, the entity considers any change in the credit quality of the trade receivable from the date the credit was initially granted up to the reporting date. The receivable balances that constitute the prior year allowance for impairment losses has been partially collected in the current year, since these receivables are still in the process of being collected.

4. RECEIVABLES FROM NON-EXCHANGE TRANSACTIONS

Other receivables 331 206 46 811Deposits 238 167 39 192Prepaid expenses 4 480 424 484 755SARS - PAYE** 320 916 338 551Staff receivables 26 073 -

5 396 786 909 309

** Included in the amount of R 320 916 is an amount due to the Group from SARS, this is due to the incorrect EMP501 calculation that was submitted to SARS during the prior year.

5. CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of:

Cash on hand 14 190 9 802

Bank balances 28 608 250 13 571 991

28 622 440 13 581 793

Current assets 28 622 440 13 581 793

28 622 440 13 581 793

Bank BalancesMTPA Operational account* 17 539 883 7 512 537

MTPA salaries account 908 937 1 852 843

Monies held on behalf of the projects 9 494 584 3 972 915

Consolidated bank account - Trusts 233 174 233 696

Zithabiseni bank account 431 672 -

28 608 250 13 571 991


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5. CASH AND CASH EQUIVALENTS (continued)

*Included in the R17.5 milllion is the balance relating to funds held on behalf of the joint projects conservation income (Department of Science and Technology (DST), Ermelo Court, Goldview, and Ivory income) held in Group operational bank account.

6. PROPERTY, PLANT AND EQUIPMENT

2017 2016

Cost / Valuation


Cost / Valuation


Land 4 487 213 - 4 487 213 4 487 213 - 4 487 213

Properties and Buildings 581 637 351 (237 866 327) 343 771 024 660 495 947 (285 544 116) 374 951 831

Computer equipment 8 677 073 (7 167 370) 1 509 703 8 480 999 (5 168 847) 3 312 152

Furniture and fixtures 9 836 168 (8 912 781) 923 387 8 759 161 (7 045 690) 1 713 471

Large and small capital equipment

20 500 346 (15 418 879) 5 081 467 19 764 226 (11 580 866) 8 183 360

Motor vehicles 29 498 856 (24 799 431) 4 699 425 28 329 916 (17 946 857) 10 383 059

Office equipment 2 411 (2 407) 4 - - -

IT equipment 162 750 (124 337) 38 413 - - -

Infrastructure 156 458 391 (71 889 937) 84 568 454 13 086 521 (952 260) 12 134 261

Work in progress* 6 763 310 - 6 763 310 4 406 661 - 4 406 661

Total 818 023 869 (366 181 469) 451 842 400 747 810 644 (382 238 636) 419 572 008


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Opening balance

Additions Disposals Transfers Depreciation DisposalAccum

dep

Total

Land 4 487 213 - - - - - 4 487 213

Properties and Buildings 354 490 913 1 504 824 - 1 551 663 (13 776 376) - 343 771 024

Computer equipment 3 312 152 298 300 (102 225) - (2 061 932) 63 408 1 509 703

Furniture and fixtures 1 781 726 246 301 - - (1 104 640) - 923 387

Large and small capital equipment 8 209 892 551 472 - - (3 679 897) - 5 081 467

Motor vehicles 10 502 977 1 078 248 (746 757) - (6 659 501) 524 458 4 699 425

Work in progress* 4 406 661 6 763 310 - (4 406 661) - - 6 763 310

Office equipment 4 - - - - - 4

IT equipment 59 421 - - - (21 008) - 38 413

Infrastructure 86 286 073 406 789 - 2 854 998 (4 979 406) - 84 568 454

473 537 032 10 849 244 (848 982) - (32 282 760) 587 866 451 842 400

Transfers relate to completed construction work at Mkhombo Nature Reserve and an electric fence completion at Head Office. Disposals were due to vehicles accidents and lost computer equipment.


Opening balance Additions Disposals

Donations (out) / in Depreciation

DisposalAccum

dep Total

Land 4 487 213 - - - - - 4 487 213

Buildings 378 268 236 - (3 634 500) 13 662 545 (14 888 117) 1 543 667 374 951 831

Computer equipment 3 945 878 1 246 263 (12 500) - (1 873 863) 6 374 3 312 152

Furniture and fixtures 2 185 685 275 790 (42 723) 272 172 (1 020 075) 42 622 1 713 471

Large and small capital equipment 8 148 634 3 274 015 (58 290) 96 585 (3 280 103) 2 519 8 183 360

Motor vehicles 14 253 989 2 374 056 (158 809) 91 100 (6 336 085) 158 808 10 383 059

Work in progress* - 4 406 661 - - - - 4 406 661

Infrastructure 11 482 132 1 604 389 - - (952 260) - 12 134 261

422 771 767 13 181 174 (3 906 822) 14 122 402 (28 350 503) 1 753 990 419 572 008



PART F

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Description of land

Place ERF Rand

Head Office Portion 14 of the farm riverside 308 JT 3 505 433

Elukwatini ERF 27 Elukwatini- B Ext 1 981 780

Totals 4 487 213

Revaluations

The Group undertook an extensive exercise in March 2015 to identify and value the depreciated cost of the immovable assets and leaseholds improvements. The valuations were performed by the Group Management in consultation with an independent valuer, Mr Jannie Van Graan, the Managing Associate of Industrial and Mining Valuations Fixed Assets Register Services. The useful lives of the properties have been reviewed accordingly.

Fair Value estimations were ascertained by determining the Estimated Replacement Cost, based on internationally published building rates per measured surface area, applicable to Africa. A condition rating, based on physical observation, was applied to the Estimated Replacement Cost to calculate the Depreciated Replacement Cost used as the Net Replacement Value at year-end. Significant assumptions included in the valuation process relate to the very stagnant realty market, which resulted in the land values not being increased for the 2015 year.

The effective date of the valuation is 31 March 2015, valid for five (5) years until 2019.

Net carrying amounts of leased assets

IT Equipment 16 673

Details of properties

Farm no 62 KLIPDRIFT (JS) R25 Road, Groblersdal

Terms and conditions

- Last revalued value 8 803 520 -

- Additions since purchase or valuation 49 391 480 -

58 195 000 -

7. HERITAGE ASSETS

In the prior year, the Group reviewed its accounting policy for land and a decision was taken to change the accounting policy for conservation land from Property, Plant and Equipment (GRAP 17) to account for it as Heritage Assets under GRAP 103. Hence the below items which met the definition of Heritage Assets, were transferred from Property, Plant and Equipment (GRAP 17) to Heritage Assets (GRAP 103):


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2017 2016

Cost / Valuation


lossesCarrying

valueCost /

Valuation


lossesCarrying

value

Conservation areas 35 283 207 - 35 283 207 35 283 207 - 35 283 207

Reconciliation of heritage assets 2016Opening balance Total

Conservation areas 35 283 207 35 283 207

Name of the reserve Hectares Historical cost

Loskop Dam 22 702 26 866 932

Paardeplaats Nature Reserve 2 426 8 416 275

Totals - 35 283 207

Heritage assets which fair values cannot be reliably measured.

A significant value of the Group Heritage assets were obtained through non-exchange transactions from various state-owned organisations. For Heritage assets obtained from non-exchange transactions the Group attempted to establish the value thereof using guidance from Directive 7 issued by the Accounting Standards Board. Due to the nature of the Group activities, the Group could not establish neither a fair value /deemed cost nor a replacement cost for its Heritage assets acquired from non-exchange transactions. For that reason, the Group Heritage assets acquired from non-exchange transactions could not be recognised in the Group Annual Financial Statements. However, information pertaining to such assets has been disclosed below.

The Group assesses at each reporting date whether there is any indication that the heritage assets may be impaired. No such indication existed at the end of the current financial reporting period.

Name of the Nature Reserve Size in Hectares

Cynthia Letty Nature Reserve 7

Kromdraai Nature Resort 10

Tinie Louw Nature Reserve 10

Thorncroft Nature Reserve 17

Swadini Nature Resort 100

Vertroosting Nature Reserve 162

Mangwazi Nature Reserve 419

Sterkspruit 2 Nature Reserve 478


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Name of the Nature Reserve Size in Hectares

Witbad Nature Reserve 550

Mahushe Shongwe Nature Reserve 1 139

Sterkspruit 1 Nature Reserve 1 141

Little Joker – Formosa Nature Reserve 1 237

SS Skhosana Nature Reserve 1 845

Ohrigstad Dam Nature Reserve 2 494

Barberton Phase 1 Nature Reserve 2 534

Nooitgedacht Dam Nature Reserve 2 986


Verloren Vallei Nature Reserve 6 007

Andover Nature Reserve 6 816

Bushbuck Ridge Nature Reserve 7 094

Mthethomusha Nature Reserve 8 028

Mdala Nature Reserve 8 165

Mabusa Nature Reserve 10 343

Mkhombo Nature Reserve 11 231


Manyeleti Nature Reserve 22 565

Blyde River Canyon Nature Reserve 26 947

Songimvelo Nature Reserve 46 320

Total 193 618

8. BIOLOGICAL ASSETS

Non - Financial information: Quantities

The Group performs a game census every three years, on animals that can easily be counted from the air and for specific sections of nature reserves. The Group does not perform counts on small animals, insects, birds, marine and freshwater biodiversity. Below are results of census carried during the period 2016/2017.



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Name Estimated Head Count

Blue wildebeest 685

Buffalo 436

Bushbuck 81

Duiker 258

Giraffe 114

Impala 1239

Kudu 528

Nyala 227

Warthog 72

Waterbuck 196

White Rhino 44

Zebra 813

Elephant 34

Steenbok 9

Ostrich 3

Klipspringer 13

Mountain reedbuck 8

Red hartebeest 46

Hippo 39

Eland 113

Oribi 23

Reedbuck common 4

Tsessebe 100

The Group’s main mandate is to provide for the sustainable management and promotion of tourism and nature conservation in the Mpumalanga Province and to ensure the sustainable utilisation of natural resources. As part of this mandate, the Group is responsible for biodiversity conservation in defined protected areas and the biological assets consists of a large variety of species.

The Group does not intervene in ecosystems, but it focuses management on complementing natural processes (e.g. floods, fires and disease outbreaks) under a minimum interference philosophy. The Group does not manage for the reproduction of biodiversity, but for biodiversity conservation that promotes resilience and ensure ecosystem integrity. The Group acquired the majority of biodiversity at no cost.



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The nature reserves are home to different species of animals where all inhabitants of an eco-system co-exist without human interference. The animals are not enclosed in any pens and there are no separate paddocks for particular species or to separate species. Some animals are prey to others while others are predators to the prey and together they are part of the same food chain.

Biological assets consist of wild animals managed for conservation purposes such as in the parks. This active management is however not agricultural activity as the main objective is not to harvest (or produce additional biological assets for harvest) but manage and maintain a specific environment as a whole. Hence such assets cannot be accounted for using the principles of GRAP 27. Hence the Group has accounted for these assets in accordance with the principles and interpretations of GRAP 17. Based on the Framework for the Preparation and Presentation of the Group Financial Statements and GRAP 17, these assets meet the definition of an asset but does not meet the recognition criteria relating to reliable measurement. The Group cannot reliable measure the values of biological assets as they are not of a nature that can be easily counted with a level of certainty, valuations are not easily available as the assets are kept for conservation purposes, and the parks cannot keep up with births and deaths and migrations of wild life, although the Group performs an annual game census depending on budget availability. As the biological assets cannot be counted it is impossible to calculate gains and losses in biological assets during the year.

The Group does not recognise its biodiversity assets as it does not meet the recognition criteria, but only discloses the game census results as additional disclosure for the benefit of users to the Group Annual Financial Statements.

9. PAYABLES FROM EXCHANGE TRANSACTIONS

Trade payables from exchange transactions 4 872 513 1 408 961

Salary control accounts 5 360 214 1 663 612

Other payables - accruals 16 180 498 15 740 273

Accrued leave pay 14 927 901 10 116 763

41 341 126 28 929 609

At 31 March 2017, the total outstanding liabilities includes those liabilities relating to litigation still in process to be finalised or settled in the 2016/2017 financial year.

Long service awards

Opening balance 3 502 341 2 346 797

Increase / (decrease) in long service awards 446 132 1 554 069

Short term portion long service awards provision (435 575) (398 525)

3 512 898 3 502 341

The provision relates to a long term portion of amounts due to employees over five years and above from the next financial year. The obligation will be settled upon completion of each five year period of employment. The Group assumes a staff loss of 5% each year. (2016: 5%) The average future rate increase is 6.5%. (2016: 7%)


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10. PROJECTS LIABILITIES

Community Benefit Sharing (CPA)@ 947 750 1 193 111

Mpakeni Tourism Project@ - 81 811

Mzinti Conservation Fund@ 137 273 176 075

Loskop Dam DEA* 880 377 -

Mahushe DEA* 4 280 298 116 961

Mthethomusha DEA* 2 961 223 121 967

Songimvelo DEA* 158 879 158 399

Africa Quisine Project - 2 544

South African National Biodiversity Institute (SANBI) - 157 516

9 365 799 2 008 384

@Relates to co-management with claimant communities where a settlement and co-management agreements have been concluded.

*Projects arise as and when a new project is planned per the Group’s implementation plan. These projects are being funded by external stakeholders and the project funds are managed by the Group within the project management unit

11. CONTRIBUTION FROM OWNERS

Closing balances from Mpumalanga Tourism Authority and Mpumalanga Parks Board 70 197 729 70 197 729

12. GROUP ENTITIES

Name of company

Name of company

interest 2017

Name of company

interest 2016

The Nelspruit Developmet Trust 100,00 % 100,00 %

The Nelspruit Financing Trust 100,00 % 100,00 %

Although the entity does not hold any ownership interests in the above named trusts, it receives substantially all of the benefits related to their operations and net assets based on the terms of agreements under which these entities were established. The MTPA also controls these entities. Consequently, the entity consolidates these entities.

In the current year, Zithabiseni Resort and Centre was also consolidated.


PART F

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13. REVENUE


Grant received 304 387 100 307 898 000


Zithabiseni - grant received 21 510 000 -


Other grants (SANBI and CATHSETA) 1 800 471 4 231 710

348 608 571 314 667 710


Sales of goods 4 855 439 3 054 705


31 717 345 16 784 875

14. COST OF SALES

Sale of goods

Cost of goods sold 942 327 -


Cost of services 26 860 -

969 187 -

15. OPERATING DEFICIT

The following have been (charged) / credited to the Group Statement of Financial Performance in arriving at the operating (deficit) surplus.

Other Income Concession fees 4 516 429 3 115 580

Fine and penalties - 8 820


Recoveries 251 965 252 702

Wildlife sales income 2 241 105 3 008 462

Sundry income* 7 974 816 31 246 558

15 137 241 37 704 795

* Included in sundry income is R 4.3 million of joint project conservation income (Department of Science and Technology(DST), SANPARK and ICMA)


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Operating expenses

Advertisement (111 802) (523 265)

Animal feed (86 108) -

Auditor’s remuneration - external audit fees (3 583 074) (3 347 493)

Auditor’s remuneration - internal audit fees (514 008) (2 155 657)

Bank charges (509 924) (406 436)

Board emoluments and travelling allowance (1 788 716) (2 388 269)

Catering expenses (84 721) (138 418)

Chemicals and vetinary drugs (59 000) (1 779)

Cleaning and consumables (886 919) (1 195 785)

Courier and delivery costs (9 244) (12 143)

Depreciation on property, plant and equipment (29 245 676) (28 377 919)

Donations (424 522) (85 000)

Employee costs (262 282 612) (254 209 962)

Loss on disposal of assets (271 303) (2 069 648)

Gas bottle refill (90 365) (6 480)

Hire - helicopter (53 940) (45 416)

HR related costs (18 901 814) (18 215 251)

Infrastructure upgrade (27 965) (124 351)

Insurance (1 812 793) (1 186 225)

License and registrations (1 448 595) (1 474 958)

Litigation settlement payments (2 107 999) (6 870 093)

Motor expenses - fuel & oil (2 679 077) (3 155 974)

Municipal - electricity (5 364 916) (4 725 470)

Operating lease rentals (2 708 568) (2 532 558)

Pastel evolution and VIP systems (174 067) (55 605)

Printing and stationary (559 405) (478 264)

Programme cost (19 518 635) (22 296 045)

Provision for bad debts (2 367 688) (11 759)

Rates and taxes (387 686) (1 362 375)



PART F

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Ringfenced monies (13 560 300) (6 022 491)

Security (6 235 820) (5 794 613)

Small Tools (34 307) (103 739)

Subscriptions (1 939 766) (1 249 212)

Stock adjustment - (135 667)

Telephone costs (2 058 190) (1 786 937)

Travel - accommodation (1 281 373) (990 978)

Zithabisenioperatingexpenses (29 345 232) -

(414 629 627) (375 821 145)

16. INTEREST INCOME


17. INTEREST EXPENSE

Interest expense 289 983 4 360

18. CASH GENERATED FROM OPERATIONS

Deficit (19 493 584) (5 737 601)

Adjustments for:Depreciation and amortisation 32 282 759 28 377 918

Write off - creditors - (1 421 937)

Loss on disposal of assets 261 115 2 069 649

Assets donation - (14 122 402)

Provision for bad debts 2 367 688 11 759

Bonus provision - 207 405

Disposal on assets - 83 185

Effect of 2016 non consolidation of Zithabiseni 3 117 805 -

Provision for service awards 47 607 1 458 569

Provision for leave accrual 4 811 137 -

Other non cash items - write off on inventory - 135 667

Non cash items 273 623 581 141



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Changes in working capital:

Inventories 124 072 318 660

Receivables from exchange transactions (1 236 931) (3 475 232)

Other receivables from non-exchange transactions (4 230 751) 621 512

Payables from non-exchange and exchange transactions 3 119 980 (8 714 340)

21 444 520 393 953

19. CONTINGENCIES

Concession revenue under disputes

The Group is involved in legal disputes with concessionaires, resulting in concessions fees not being possible to invoice in prior years to date. Attempts are on-going to resolve the matters .The estimated concession fees involved from prior years could be around R8.7 million.

Fred Daniel Case A

This court case which is fully cited as Grand Valley Estates and 11 others versus the Group and 24 others: Case No: 34502/2010 has been instituted by one businessman, namely Mr Frederick Coenraad Daniel & 11 others, against various government bodies in the North Gauteng High Court in Pretoria in 2010. The case is being defended through the Office of the State Attorney in Pretoria.

This court case involves 12 plaintiffs (parties instituting the action) which are mostly companies associated with Mr Daniels and a few of his individual fellow business associates. It has 25 defendants which include various National and Provincial government departments, state entities, state officials and individuals.

The National department cited in the matter is Environmental Affairs; Provincial department cited is Agriculture and Land Affairs; and state entities cited include the Group Regional Land Claims Commissioner: Mpumalanga Province and national Commissioner of South African Police. Most state officials and individuals are sued herein in vicarious liability as at all times they were acting within the course and scope of their duties in relation to the allegations made against them.

The cause of action set out in the issued summons is broadly alleged to be unlawful actions and numerous breaches of legal duties by Defendants which allegedly resulted in Plaintiffs suffering damages mainly through loss of profit and prospective profit, among others.

The total amount sued for as contained in the issued summons is currently in the sum of R 1 094 330 740. 00 which is jointly and severally payable by the Defendants to the Plaintiffs. The amount computed to be payable by MTPA as an entity is the sum of R740 million as set out in the issued summons. There are amendments that the Plaintiffs are pursuing in respect of the issued summons which if successful could possible result in the increase of the amounts involved.

The matter is pending before the court with plaintiffs attempting to make various amendments on their issued summons and Defendants raising exceptions thereto. Legal fees incurred with this are more than R6 million with about R1.8 million still owing in legal fees.



PART F

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19. CONTINGENCIES (continued)

Fred Daniel Case B

This court case which is fully cited as Grand Valley Estates and 10 others versus Business Ventures Investments 1144 (Pty) Ltd and 23 others: Case No: 50450/2014 has been instituted in the North Gauteng High Court in Pretoria in 2014 by one businessman, namely Mr. Frederick Coenraad Daniel & 10 others, against various companies that include Dubai World, some individuals, some state officials which include one from the Group and the business persons that were involved with the Cradle of Life Nkomazi Wilderness Travelport near Badplaas during year 2007 and before.

The case is also defended through the Office of the State Attorney in Pretoria.

The case is a claim for damages allegedly suffered by plaintiffs as a result of the alleged unlawful actions of the defendants which included alleged negligent or fraudulent misrepresentations which have allegedly commercially and financially harmed and prejudiced the business and commercial ventures, interests and initiatives of the plaintiffs.

The total amount sued for is the sum of R 1 174 610 740 which is claimed jointly and severally from all the defendants. The matter is pending.

20. RELATED PARTIES

Related party balances

Identity of related parties

The Group was established by the Mpumalanga Provincial Government, to promote Mpumalanga as a tourism destination in the local and international markets, as well as, for biodiversity conservation. The Group reports directly to the Department of Economic Development and Tourism (DEDT).

Nelspruit Development Trust and Nelspruit Financing Trust are controlled entities as the majority of the trustees are former Group board members, there are no related party transactions.

The Executive Council, at its meeting of 23 August 2015, resolved to transfer the Zithabiseni Resort and Conference Centre to the Group as a managing authority for the resort. The Group resumed responsibilities as a managing Authority effective 01 April 2016. Further to this effect, the Executive Council approved the option, which promotes joint ownership of the Resort by the State and the Community, but managed by an independent operator (to be appointed) with defined state and community benefits.

Executive management and board members are also considered to be related parties to the entity. The Executive management committee consist of:

Acting Executive Officer: Mr. Sibiya VA (Acting 1 July 2015 to 31 March 2017 )

Chief Operations Officer: Mr. Thwala SE

Chief Financial Officer: Ms. Thrush H (Terminated 31 July 2016 and reinstated from 01 October 2016)

Consultant: Mr. Maphiwa M (Acting from 01February 2016 to 31 July 2016)


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Acting CFO: Mr. Mathye S (11 August 2016 to date)

Acting Head Corporate Services: Ms. Nkonyane C ( Seconded from 16 February 2015 to 31 October 2016)

Acting Head Biodiversity Conservation: Mr. Shirindzi L ( from 01 October 2015 to 31 August 2016)

Head Tourism: Mr. Mthethwa X

Company Secretary: Ms. Hlahane P

31 March 2017Acting


Subsistence Total



Chief Financial Officer - 1 561 732 - 1 561 732




Head Tourism - 1 335 820 46 491 1 382 311


383 673 8 232 496 148 901 8 765 070

@ Acting from 01 April 2016 to 31 July 2016 @@ Acting from August 2016 to date.

Related party transactions

Grant received from DEDT 304 387 100 307 898 000

Zithabiseni - Grant received from DEDT 21 510 000 -



Zithabiseni - Transfer (21 510 000) -

325 298 100 310 436 000

20. RELATED PARTIES (continued)


PART F

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21. BOARD AND EXECUTIVE MANAGEMENT EMOLUMENTS

Board Members



Mr. Nzima TJ (Chairperson) 12 000 291 107 62 175 365 282

Ms. Shabangu-Mndawe NR (Deputy Chairperson)

8 250 177 736 8 489 194 475

Dr. Magome DT 6 000 109 520 51 213 166 733

Ms. Nkambule TB 2 250 77 117 3 995 83 362

Mr. Gololo CL 2 250 69 055 7 187 78 492

Mr. Keetse T 6 000 88 729 30 634 125 363

Ms. Sekhitla JS 2 250 89 569 2 360 94 179

Ms. MS Masekaomeng (nee’ Nkgadima) 2 250 23 673 13 317 39 240

Ms. Makhathini SFS 2 250 79 232 4 504 85 986

Ms. Mzuzu NB 2 250 90 565 2 278 95 093

Mr. Mthombeni SG 2 250 117 667 69 582 189 499

48 000 1 213 970 255 734 1 517 704



Mr Lubisi (Chairperson) - 355 762 26 968 382 730

Dr. Mabunda MD ( Deputy Chairperson) - 28 700 4 903 33 603

Ms. Chiloane C - 107 682 14 632 122 314

Mr. Gololo CL - 136 059 11 590 147 649

Mr. Keetse T 500 186 059 60 067 246 626

Mr. Linda JE - 155 661 44 567 200 228

Dr. Lombard PP - 139 146 4 875 144 021

Ms Masenya TS - 139 235 14 925 154 160

Ms. Nkambule TB - 139 937 6 462 146 399


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Ms. Shabangu-Mndawe NR 500 150 457 7 829 158 786

Mr. Nzima TJ ( Chairperson) 1 000 24 105 - 25 105

Dr. Magome DT 500 18 985 - 19 485

Ms. Makhathini SFS - 8 436 - 8 436

Ms. Masekaomeng MS (nee’ Nkgadima) - 10 544 365 10 909

Mr. Mthombeni SG - 6 327 - 6 327

Ms. Mzuzu NB - 10 544 - 10 544

Ms. Sekhitla JS - 10 544 - 10 544

2 500 1 628 183 197 183 1 827 866

Audit Committee


Travel and Subsistence Total

Ms. Mvulane P (Chairperson) 4 000 62 685 625 67 310

Ms. Mtebele N 2 000 52 676 1 717 56 393

Ms. Mawelele TE 2 250 4 753 239 7 242

Mr. Mthembu S 2 250 49 550 914 52 714

10 500 169 664 3 495 183 659

31 March 2016 FeesTravel and

subsistance Total

Ms. Mtebele N(Chairperson) 129 946 5 685 135 631

Ms. Mawelele TE 20 766 960 21 726

Mr. Mthembu S 73 210 1 800 75 010

Mr. Pott WA 26 995 1 359 28 354

250 917 9 804 260 721

Summary

Total Board Emoluments

Total board emoluments 1 517 704 1 827 866

Total audit committee remuneration 183 659 260 721

Travel and accommodation 87 353 299 682

1 788 716 2 388 269



PART F

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Executive Management Committee Remuneration

31 March 2017Acting


Subsistence Total



Chief Financial Officer*** - 1 561 732 - 1 561 732




Head Tourism - 1 335 820 46 491 1 382 311


383 673 8 232 496 148 901 8 765 070

@ Acting from 01 April 2016 to 31 July 2016 @@ Acting from 11 August 2016 to date.***CFO labour dispute with Agency was concluded in January 2017 with the CFO successful in her appeal. Currently, engagements are taking place to have her seconded, possibly, to another government department.

31 March 2016Acting


Subsistence Settlement Total

Chief Executive Officer - 577 721 - 3 114 565 3 692 286

Acting Chief Executive Officer## 143 994 - 49 640 - 193 634

Acting Chief Executive Officer### 242 447 - - - 242 447

Chief Operating Officer - 1 789 052 - - 1 789 052

Chief Financial Officer - 1 142 737 - - 1 142 737

Consultant in Finance@ 252 787 - 31 541 - 284 328

Consultant in Finance@@ 236 637 - - - 236 637

Head Biodiversity Conservation** - 1 250 171 94 520 - 1 344 691

Head Tourism - 1 239 772 44 110 - 1 283 882

Acting Head Corporate Services** 100 711 - - - 100 711

Company Secretary - 938 934 6 960 - 945 894

976 576 6 938 387 226 771 3 114 565 11 256 299


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## Seconded from 01 February to 31 June 2015### Acting from 01 July 2015 to date@ Acting from November 2015 to 31 December 2015@@ Acting from 01 February 2016 to date** Seconded 16 February 2015 to date

22. RISK MANAGEMENT

Financial risk management

The Group’s activities expose itself to a variety of financial risks: market risk (including, interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group has an approved risk management framework and has implemented a risk management register to mitigate identified risks.

The Group’s overall risk management program focusses on the unpredictability of financial markets and seeks to minimise potential adverse effects on Group’s financial performance. Risk management is carried out under policies approved by the Accounting Authority. The Accounting Authority provides principles for overall risk management and policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk and investment

Liquidity risk

The Group’s is exposed to liquidity risk as a result of the funds available to cover future commitments. The Group manages liquidity risk through an ongoing review of future commitments. The Group manages its funds conservatively by maintaining a comfortable level of cash and cash equivalents in order to meet continuous operational need Cash flow forecasts are prepared and are monitored.

The table below analyses the Group’s financial liabilities into relevant maturity groups based on the remaining period at the date of the Group Statement of Financial Position to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.


yearBetween 1 and

2 years Over 5 yearsPayables from exchange transactions and payables from nonexchange transactions 26 413 225 - -




yearBetween 1 and

2 years Over 5 yearsPayables from exchange transactions and payables from nonexchange transactions 18 812 846 - -




PART F

Figures in Rand2017

RRestated 2016

R




Market risk

Market risk is the risk that changes in certain market prices, such as interest rates, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.

Interest risk

As the Group has no significant variable interest-bearing assets, the Group’s income and operating cash flows are substantially independent of changes in market interest rates.

Credit risk

The company is exposed to credit risk on financial assets, mainly attributable to cash deposits, cash equivalents and trade debtors.

The financial assets carried at cost exposes the entity to credit risk. The values of the maximum exposure to credit risk are as follows for each class of financial asset at cost.

Financial assets exposed to credit risk at year end were as follows:

Revenue from exchange transactions 9 719 633 9 664 681

Cash and cash equivalents 28 622 440 13 571 991

Ageing of Debtors at the reporting date:

AccountBalance at 31

March 2017 ImpairmentBalance at 31

March 2016

0 - 30 days 3 860 995 - 5 520 581

60 - 90 < days 137 497 - 1 649 171

90 - 120 days 234 152 - -

> 120 days 4 628 465 (4 862 617) 2 494 929

Zithabiseni - 0-120 days 858 525 (785 231) -

9 719 634 (5 647 848) 9 664 681

Concentration of Credit Risk

Potential concentrations of credit risk consist mainly of shortterm cash, cash equivalent investments and trade debtors.The Group limits its counter party exposure from its money market investment operations by only dealing with wellestablished financial institutions of high quality standing. The credit exposure to any one counter party is managed by setting transaction/exposure limits, which are reviewed annually.


Figures in Rand2017

RRestated 2016

R



At 31 March 2017, the company has the following concentration of risk:

2017

2017Percentage of total exposure

%

Honeyguide Tented Safari Camps 3 280 338 37

23. FRUITLESS AND WASTEFUL EXPENDITURE

Opening balance 547 611 103 467

Interest expense - on outstanding accounts* 5 354 4 360

Transfer to debtors - (14 605)

CFO’s salary** 1 561 732 453 639

Traffic fine - 750

2 114 697 547 611

* Interest charged by the suppliers due to late payment on their accounts in respect of the financial year audit as a result of unavailability of funds to pay the full outstanding amount.**This is due to special leave given to the incumbent CFO, while an acting CFO holds the same position.

24. COMMITMENTS UNDER OPERATING LEASES

The Group rents various copiers, facsimile, machines and laser printers from Nasua Lowveld as well as an an administrative building from Primkop Airport Management (Pty) Ltd.

Minimum lease payments under operating leases recognised as an expense during the year 1 752 657 2 532 558

Contingent rental 921 861 -

Operating leases - office rental and equipment

- payable within 1 year 2 036 956 1 956 423

- payable between 2 and 5 years 791 232 3 035 768

2 828 188 4 992 191

None of the trade and other receivables have been pledged as security for liabilities or contingent liabilities


PART F

Figures in Rand2017

RRestated 2016

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Opening balance 35 957 190 22 362 280

Add: Irregular expenditure - current year 4 977 411 13 594 910

40 934 601 35 957 190

Analysis of expenditure awaiting condonation per age classificationCurrent year 35 957 190 35 957 190

Details of Irregular Expenditure in current year:

1. Payment made after contract have expired.2. Expenditure incurred as a result of a deviation from procurement process.

Aquatronic 7 066 -

Brayshaw Auto Electr and Diesel 2 833 -

African Renaissance Security 141 600 910 800

JBKR Security Services 78 000 936 000

Born To Protect Security Services 178 800 2 044 800

Thebe Exhibitions 2 930 -

Rista 2 481 -

CHM Vhumani 11 308 -

Phathimo Training and Conference 26 970 -

Marsh Insurance 442 917 -

Work Dynamics 43 035 48 880

Thandisphiwo (PTY) LTD 39 570 -

Working on fire 6 870 -

Dana Agency 41 554 -

Copperleaf 171 -

Phoenix - 185 618

Hi-Tech Security Guards 108 117 1 366 949

Group 4 Secure 26 950 168 164

Gestetner 7 963 306 786

Prosperosa 646 236 341 310

Muga Design CC T/A 3D Design Exhibitions 752 399 -

The Outdoorsman T/A Outdoor Gas 21 835 -


Figures in Rand2017

RRestated 2016

R


Tidy Files 178 718 -

Pure Grit 282 893 -

Twain 2 16 986 -

Big Game Heli 50 000 -

The Herald 27 000 -

Pasqa 466 739 772 089

Kazzi 1 365 471 576 805

Plant Pride Tropica - 57 838

Budget overspend - 5 737 953

African Wildlife Tracking - 79 618

WSM Eco Services - 61 300

4 977 412 13 594 910

Irregular expenditure for prior year was submitted to National Treasury for condonement.

Due to SCM non-compliance 4 977 412 7 856 957

Due to budget spending - 5 737 953

4 977 412 13 594 910

26. COMMITMENTS UNDER SERVICE LEVEL AGREEMENTS

Contracts awarded

• Bothila Security 8 083 145 -

• Hlaj Security 3 888 189 -

• Phepha MV 4 860 238 -

• Bunhlebentfutfuko 2 050 884 -

• Sibongile Thembisile Florence 3 501 098 -

• Siboyiye Trading 2 867 297 -

• Deloitte and Touch 86 209 64 638

• ADT Security 223 126 -

• Delta Consulting 2 496 749 -

25. IRREGULAR EXPENDITURE (continued)


PART F

Figures in Rand2017

RRestated 2016

R




• Global glo 437 276 -

• Honeycomb Solution 74 174 -

• Kgotle Water 345 970 -

• Lerandzu Trading 766 821 -

• Marsel - IT 34 200 57 500

• Muga T/A 3D design 902 578 -

• Newsclip 200 154 -

• Pasqa Consulting 531 169 -

• Prosperity Link 164 910 -

• Prospero Digital 1 419 300 -

• Real Travel and Tourism systems CC 248 100 222 000

• Selectra Investments 24 t/a Omega data 69 540 -

• Sita (PTY) (LTD) 183 734 -

• Sizampilo 5 680 092 -

• SizweNtsalubaGobodo 94 023 995 921

• Sunday Kit Uniform 4 800 000 -

• Vodacom 2 511 831 -

• Vuthani Bafazi 65 040 -

• Metro file 183 212 -

• Pay Gate 28 002 -

• Fidelity Cash Solutions (pty) Ltd 93 024 136 000

• Fast net pro-mpu003P 9 463 -

• Multichoice 18 504 -

• Nelspruit Airport Operating Company 30 055 -

• Softline Pastel 98 645 -

• Softline Sage VIP 220 654 -

• Sita Gov Tech 1 337 915 -

• Kunene Makopo /SHA Underwriters 2 000 000 -

• Eco Africa (Develop Intergrated Management Plans at Protected Areas) - 615 498

• Kazzi Corporate Wear - 4 439 126

• Moepeng 40 Trading - (Security fence at head office) - 447 570


Figures in Rand2017

RRestated 2016

R


• H20 - 65 606

• KBN Investments 7410 - 31 800

• MM Garden - 94 500

• The Document Warehouse 11 004 35 139

• Bohlambiso Trading - 113 400

50 616 325 7 318 698

Approved and not yet contracted Muga T/A 3D Design - 2 322 835

Contracts awarded month to month Month to month contracts 59 563 463 217

27. RETIREMENT BENEFIT OBLIGATIONS

Defined contribution plan

The Group is a participating employer in the Government Employees Pension Fund (GEPF). The Group became a participative employer in 2006 with the inception of the Group as a result of employees that were transferred from Government departments, i.e. DALA and Limpopo Province to the Group. The employer’s contribution paid is 13% as this was the percentage employer contribution that was paid by these Government departments upon transfer of these employees to the Group.


Payments made to industry-managed (or state plans) retirement benefit schemes are dealt with as defined contribution plans where the Group’s obligation under the schemes is equivalent to those arising in a defined contribution retirement benefit plan.

The Group accounts for this defined benefit state plan as a defined contribution plan, as there is no consistent and reliable basis for allocating the obligation, plan assets and costs to the individual employers to actuarial risks associated with the current and former employees of other employers participating in the plan.

The Group GEPF Fund 6 204 728 6 088 849

28. GOING CONCERN

We draw attention to the fact that at 31 March 2017 the Group had a net asset value of R471 010 733 (Revised 2016: R442 212 125) and that the Group’s current liabilities does exceed its current assets by R12 601 700 (Revised 2016:R9 140 749 ) , the current liabilities includes a leave provision of R14 927 901 (2016: R10 116 763), this provision will not strain the cash flow requirements of the entity due to the leave policy that does not allow voluntary encashment of leave. The board after having reviewed the projected cash flows for the foreseeable future and management’s assessment of Group’s ability to operate as a going concern, has a reasonable expectation that the agency have adequate resources to continue its operations as a going concern for the foreseeable future.



PART F

Figures in Rand2017

RRestated 2016

R



29. PRIOR PERIOD ERRORS

Top up fees on concessions fees from prior years were only calculated in the current financial year, a portion relating to prior years should have been adjusted retrospectively, for a total of R 1 279 810. In the prior year, MTPA incorrectly disclosed Cathseta as a liability, the balance was not an obligation and should have been transferred to retained earnings, for a total of R 2 058 465.

Prior debtors balances were restated due to top up concessions fees on Tintswalo ( R 1.5m) and Honeyguide (R 1.7m).

Surplus in 2016 Retained earnings

Concession revenue for 2016 307 539

Concessions revenue prior 2016 972 271

Cathseta transferred to retained earnings 2 058 465

Totals 307 539 3 030 736


Figures in Rand2017

RRestated 2016

RFigures in Rand Note(s)2017

RRestated 2016

R

REVENUE

Sale of goods 4 855 439 3 054 704




Recoveries 251 965 252 702

Wildlife sales 2 241 105 3 008 462

Sundry income 7 974 817 31 255 375

Interest received 932 054 930 523

Government grants 13 304 387 100 307 898 000

Conditional grant (EPWP, Zithabiseni and Infrastructure) 44 221 471 6 769 710

Total revenue 396 395 212 370 087 899

EXPENDITURE

Personnel (282 280 238) (254 209 961)

Depreciation and amortisation (32 282 759) (28 377 918)

Finance costs 17 (289 983) (4 360)


General Expenses (98 788 803) (89 519 152)

Total expenditure (415 888 796) (375 825 500)

Operating deficit 15 (19 493 584) (5 737 601)

Deficit for the year (19 493 584) (5 737 601)

The supplementary information presented does not form part of the group annual financial statements and is unaudited

DETAILED INCOME STATEMENTfor the year ended 31 March 2017

2016/2017 AN

NU

AL R

EPOR

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Tel: +27 13 759 5300Fax: +27 13 752 4186


www.mpumalanga.com

PR: 192/2017 ISBN: 978-0-621-45579-3



Documents

ANNUAL REPORT 2016/2017 - Provincial Government · Annual Report for 2016/2017 3 PART A ANNUAL REPORT 2016/2017 2016/2017 ANNUAL REPORT REGISTERED NAME: Mpumalanga Tourism and Parks