1 st Quarterly Performance Report (1Q15) and Financial Position Mr Fundisile Mketeni: Chief...

1st Quarterly Performance Report (1Q15)and

Financial Position

Mr Fundisile Mketeni: Chief Executive Officer (SANParks)

Presentation Content

1. Vision and Mission

2. Performance Reporting Framework

3. 2015/16 SANParks Strategy Map

4. 1st Quarterly Performance Reporting

5. 2014/15 Financial Performance

2

SANParks Vision and Mission

Vision

A Sustainable National Park System Connecting Society.

Mission

To develop, expand, manage and promote a system of sustainable national parks

that represents biodiversity and heritage assets, through innovation and best

practice for the just and equitable benefit of current and future generations

3

Performance Reporting Framework

4

This takes the following into consideration:

SANParks legislative mandate and other public obligations

Government MTSF priorities such as the NDP; Govt. Outcome 10 and DEA strategic goals; and

Board corporate governance directives

Q4Q3

Q2

5 Year Strategic Planfor

2015/16 – 2019/20

2015/16Annual Performance Plan

(APP)

1st Quarterly

Performance Report

Draft APP (to DEA)

- 1St Drafts – August 2015- 2nd Draft – November 2015

2015/16 Strategy Map

5

2015/162015/16Quarterly PerformanceQuarterly Performance

6

Performance Indicator 2015/16 Quarterly

TargetActual Performance Comments

1.1 Budget Variance

Income

Expenditure

Break Even

7.3% below budget

7.8% less than budget

• Overall bottom-line surplus of R20.61 million

• This was 2.9% (R0.58 million) better than budget of R20.03 million surplus

• Revenue was 7.3% less than budget of R410.3 million; however 18.7% (R60.0 million) better YoY.

• Expenses were 7.8% less than budget of R390.3 million; and 1.3% more YoY

• Income-to-Cost Ratio improved by 15.5% points to 105.7% YoY

Continuous budget monitoring, regular financial forecast to mitigate financial risks and exposure

Improve financial controls and asset management

1.2 Gross Operating

Tourism Revenue

(Year on Year)

9.0% 7.9%

• Gross Operating Tourism Revenue was 7.9% (R18.8 million) YoY

• This was 1.1% points below planned target of 9.0%

• Attributed to a decline of 7.0% (from 1 146 233 to 1 066 349) in the total number of visitors to national parks

Rollout of the Malelane Safari Lodge & the Skukuza Conference Lodge in KNP

Monitoring of the Skukuza Airport yielding the target returns

Shangoni Gate Development Project is in progress

Strategize to grow revenue streams

SO1: Optimising Economic Contribution through Tourism and Associated Activities




1.3 Total Number of

Revenue Generating

Products Implemented

0 0

Several initiatives are currently in their planning phase, and will be implemented in due course.

Shangoni Gate in the KNP

Skukuza Conference Lodge

Malelane Safari Lodge

1.4 Fundraising Policy &

Strategy Developed

and Implemented

25.0% 37.5%

• The process of developing both the strategy and policy for fundraising has been initiated

• Regular consultation with internal stakeholders to ensure that these are relevant and informative to address critical organisational needs (Rhino poaching; radical socio-economic transformation etc.)

• The strategy to be aligned with the organisational MTSF goals, hence enabling delivery of organisational legislative and mandatory obligations

• Difficult to fundraise in the global economic down turn

several fundraising initiatives are being pursued with various organisations, particularly local philanthropic organisations




1.5 Accommodation

Occupancy69.0% 71.4%

• Accommodation Occupancy Rate was 2.4% points better than target of 69.0%

• This is 1.0% point (from 70.4% to 71.4%) improvement YoY

• Accommodation units sold improved by 2.9% (3 864) YoY

• Camping Person Nights Sold remain unchanged at 188 057 YoY

• Tourism Activities declined by 1.4% (from 53 703 to 52 966) YoY

Future bookings are being analysed for better forecasts

Sales, marketing and promotional initiatives, particularly at regional levels, will be undertaken to enhance performance in this regard.

1.6 Customer

Satisfaction Index81.5% 81.8%

• Customer Satisfaction Index was 0.3% points better than the target of 81.5%

• This is 2.3% points (from 79.5% to 81.8%) improvement YoY

• For the reporting period, customer feedback rate was 28.4%, which is 1.9% less compared to last year

• This can be attributed to lesser visitor numbers YoY.

Conducting continuous tourism standards quality assessments

Regularly engage customers to understand their needs on our products and services offering.




1.7 Total Number of

Visitors to National

Parks

1 150 818 1 067 094

• Visitor number to national parks were 7.3% (83 724) less than the quarterly target of 1 150 818

• This is 7.3% declined (from 1 146 233 to 1 067 094) compared to same period last year

• Overall, the majority of visitors to national parks remain South African citizens, which is 81.7% of total visitors numbers

• Number of South African visitor to national park improved by 6.3% YoY.

• Number of visitors from SADC countries (1.5% of total visitors) declined by 5.7% YoY

• Number of visitors from other international countries (16.8% of the total) declined by 8.7% YoY

Continued marketing and sales efforts are being undertaken to attract and further increase visitor numbers to our national parks, with particular focus on domestic visitors



2.1 METT Score 69.0% 74.0%

• SANParks METT Scoring was 5.0% points above the quarterly target of 69.0%

• In April 2014, SANParks scoring in 19 national parks was averaged at 80.0%

• As part of the assessment, a number of corrective measures and additional requirements were identified to maintain and improve the scoring

Areas of improvement identified on the METT audit being reviewed on regular basis for implementation

2.2 Total Hectares of

Land Rehabilitated /

Restored (Initial) or

New (ha)

Initial/New Areas =

2 704 ha 14 737 ha

• Initial land rehabilitated of alien and/or invasive species was 445.0% (12 033 ha) more than target of 2 704 ha

• Follow-up land rehabilitated was 18.6% (6 106 ha) more than target of 32 327 ha

• No wetlands were rehabilitated or restored

• Attributed to a decline of 7.0% (from 1 146 233 to 1 066 349) in the total number of visitors to national parks

Completion and ultimate approval of the Wetlands Project plans will be expedited to enable progress as planned.

Follow-up Areas = 32 327 ha

38 433 ha

Wetlands = 1 613 m3 0 m3

2.3 Total Area Added to

National Parks

(Terrestrial) (ha)

Terrestrial = 0 ha 0 ha • no land had been formally added into the national parks

system, however several land acquisition initiatives are currently been undertaken

SANParks three years land expansion plan is under review.

Marine = 0 km2 0 km2

SO2: Enhanced Conservation and Ecological Integrity of National Parks System




2.4 Total Number of

Park Management

Plans Reviewed

and Submitted

0 0

• Although no Park Management plans have been submitted to DEA for approval, the following plans for the following national parks are currently being reviewed

Kalahari Gemsbok National Park in the Northern Cape; and

Mountain Zebra National Park in the Eastern Cape

2.5 Total Number of

Species Protection

Interventions

Implemented

1 Establishing stronghold

for rhino safety1

• 10 potential private strongholds, and one stronghold associated with a community partnerships, have been identified and evaluated for rhino safety

• Movements of rhino to safer areas within Kruger National Park and other national parks, are also being regularly evaluated

2.6 Total Number of

Cultural Heritage

Interventions

Implemented

1 Restoring, rehabilitating

and stabilising Mapungubwe Cultural

Heritage site.

1

• A Cultural heritage site in Mapungubwe (K2) was also rehabilitated.

• Preparatory work for nomination of the Khomani San, in Kgalagadi National Park, as a World heritage site are in progress, with necessary consultation to facilitate the process.

• Furthermore, Ai-Ai Heritage Park, is also earmarked as a World Heritage Site.




2.7 % of new research

projects relevant to

SANParks key issues

71.0% 77.5%• Out of 414 research projects registered in three SANParks

research nodes 77.5% fall under those categorised as essential and important

2.8 Total Number of Peer

Reviewed Research

Publications

5 18

• A total of 18 peer reviewed researches were published in various reputable academic literature and journals

• This is 260% (13) more than the set quarterly target of 5 publications

• Koedoe is an open access scientific journal

published by SANParks since 1958 and focuses

on protected area science and management to

facilitate integration and shared learning.

• Research Report: Annual SANParks produces a

report on all the research work and publications

undertaken by its researchers and/or co-authored

for the year

SO3: Optimised Socio-economic Beneficiation



3.1 Total Number of Free

Access Entrants0 0

• No free access to national parks were recorded

• However several community-based initiative at various national parks are being undertaken

• This included, but not limited to, preparation of the SA National Parks Week (14 September 2015) project, which will be implemented in across all national parks.

3.2 Total Number of

Environmental

Education initiatives

developed

0 0

• no environmental education initiative has been developed as planned

• However, internal consultation and some research work are being undertaken in preparation for the planned initiatives

• The idea is to establish environmental education programmes with more impact, in addition to already existing programmes.

3.3 Total Number of

Participants in

Environmental

Education

Programme

41 400 41 656

• Total number of learners participating in SANParks’ Environmental Education Programme was 0.6% (256) better than target of 41 400.

• This is however decreased by 9.8% (4 537) when compared to the same period last year.

• Some educational districts have adopted this programme as part of their learning curriculum.




3.4 Total Number of Full-

time Equivalent Jobs

Created

EPWP = 983 1 200

• There were 1 200 full-time equivalent jobs created through its Expanded Public Works Programme (EPWP)

• This is 27.9% (262) more than the planned quarterly target of 938

• There were 27 full-time equivalent jobs created through other internal job creation programme

• This is 46.0% (23) below the planned quarterly target of 50 FTEs

Other = 50 27

3.5 Total Number of

temporary Jobs

Created through

Socio-economic

initiatives

20 0

• No temporary jobs were created through socio-economic initiatives, as most initiatives as still in their planning phase

• The socio-economic initiatives are those initiatives which are funded from 1% of SANParks Tourism Revenue, and most these initiatives are benefiting communities who are adjoining National Parks

3.6 Total Number of

SMMEs / Enterprises

Supported

434 455

• 4.8% (21) more SMMEs were supported through the SANParks - Expanded Public Works Programme than planned 434 SMME's

• An amount of R33.0 million was spent through this initiative

• It is envisaged that more SMME and sustainable job will be created during the course of the year




3.7 Number Community

Contractual

Agreements in Place

1 0

• No community contractual agreements has been concluded

• However, several community facilitation processes were concluded with various communities adjoining some of our national parks

• The facilitation engagements undertaken were:

Mashishimale Community Property Association and Mnisi Tribal Authority for the establishment of the wild life economy programme; and

Makarapula community for breeding of the Sable at their game reserve and Dixie communal land, which includes mixed game farming at Morgeson communal land

• Formal letters of commitment were received from these communities.

Formalisation of all planned community agreements are being expedited to ensure proper governance of communal relations with SANParks.

SO4: Enhanced Stakeholder Engagement



4.1 Total Number of

Proactive Media

Engagements

Articles = 5 16

• 16 proactive media articles were issued, which is three fold than the planned quarterly target of 5 articles

• Four (4) proactive media engagement events were undertake, which is 25% more than the planned quarterly target of 3 events

• Through proactive engagements with the media, SANParks had a total of 6 134 media clips, which accounted for an Advertising Value Equivalent (AVE) of more than R206.6 million

Media Events = 3 4

4.2 Media Reputation

Rating

Positive/ Neutral > 90%

97.0%

• SANParks media reputation rating (positive/neutral) was 7% points above the planned quarterly target of > 90%

• For the reporting period, SANParks had 6 134 media clips with the following rating:

5% Positive = 441 (AVE: R10 471 709)

3% Negative = 312 (AVE: R6 970 056)

92% Neutral = 5 381 (AVE: R189 204 686)

SO5: Effective and Efficient Corporate Governance



5.1 Auditor General Audit

Report

Unqualifiedwith no other matters

Unqualified with no other matters

• Organisational accounting records were improved to comply with other regulatory requirements – GRAP 23

• The 2015/16 audit plan by our internal auditors (Grant Thornton) has been completed

Implementation of the internal audit plan to be monitored on regular basis, including improvement on internal controls for performance management information

5.2 % progress against

Risk Response Plan

High = 30%Medium = 30%

Low = 20%

High = 20%Medium = 20%Low = 10%

• SANParks risk management framework current under review to ensure an in integrated approach on our risk management initiatives

5.3 % Compliance with

Governance

Requirements

50% 100%

• SANParks complies fully with all governance requirement as per the PFMA and National Treasury regulations compliance report checklist

• Development of a more comprehensive governance requirement tool is currently under review

5.4 Total Number of ICT

Strategy Initiatives

Implemented per

Schedule

1ICT Governance

Framework = 50%

ICT Governance Framework = 40%

• Preparatory work to formalise and develop the CoBIT based ICT Governance Framework

• This involved a consultation with all organisational structures in order to get their input into the framework

Plans are in place for organisational leadership to undergo CoBIT training

SO6: Strengthened Human Capital and Management



6.1 % of Employees from

Designated

Employment Equity

Groups

Black as % of Management = 55.5%

55.2%• SANParks had 4 038 permanent staff members

• Women in management (Bands D-F) constituted 34.5% (123) out of a total of 357 incumbents

• People with disabilities accounted for 1.2% (48) of the entire permanent staff complement.

Employment Equity (EE) Plan is being implemented across parks.

Women as % of Management = 34.0%

34.5%

People with Disabilities = 0.9%

1.2%

Total Male: Female Ratio = 1.8%

1.2%

6.2 % of Employees

Meeting Minimum

Educational

Requirements

(C and Upper)

93% 97.3%

• Total number of employees who meet minimum educational requirement was 97.3% (3 928)

• Most of employees not meeting minimum educational requirement of the jobs they occupy is are based within the ranger corps section of the organisation, as lance corporals (Graded at C Lower).

Numerous skills development, including the process of recognition of prior learning (RPL), are current being undertaken to ensure that staff have qualified for their occupancies.

SO6: Strengthened Human Capital and Management



6.4 % Success Rate at

CCMA80.5% 100%

• Fourteen (14) CCMA cases were reported for the reporting period

• One (1) case was ruled in favour of SANParks,

• One (1) case was withdrawn was with drawn and closed as the applicant chose not to pursue the case any longer.

Efforts are being undertake further educate employees and management on the importance of adhering to labour practice regulations and laws

6.5 % progress against

implementation of

Skills Development

Programme

25% 20%

• Training needs assessments process was completed

• The Annual Training Plans for 2015/16 has been completed and submitted to the CATHSSETA

• To date 571 SANParks employees have commenced with their respective training

• The skills development initiatives undertaken by SANParks range from ABET/AET; Accommodation Services Learnerships; Artisan Training; Hospitality Training, and Computer Training

• A budget of R4.7m has been side aside in this regard, as per the Skills Levy Act requirement.

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Summary of 1st Quarterly Performance

Financial or Trading Financial or Trading PositionPosition

22

23

Income Statement as at 30 June 2015

Statement of Financial Position as at 30 June 2015

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SANParks Operating Surplus / (Deficit)

Quarterly performance is based on management accounts incremental per month

IndicatorIndicator BudgetBudget ActualActualVarianceVariance

%% Equivalent ValueEquivalent Value

Total Income R405.38 million R370.85 million 8.5% (R34.57 million)

Total Expenses(R389.91 million)

(R359.19 million) 7.9% R30.72 million

Bottom Line surplus / (deficit) R20.03 million R20.61 million 2.9% R0.58 million

Thank YouThank You

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1 st Quarterly Performance Report (1Q15) and Financial Position Mr Fundisile Mketeni: Chief...

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