South African National Biodiversity Institute

Portfolio Committee: Water and Environment

10th November 2010

Dr Tanya Abrahamse and Mr. Moeketsi KhoahliSANBI CEO and CFO

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SANBI presentation

Content• SANBI Vision and Mission • Organogram • SANBI Goal• Information about SANBI• The National Botanical Gardens• Key Result Areas, SANBI approach, Indicators• Progress on delivery of Business Plan• Budget Deficit Management• Budget Priorities• Budget and Finances• Income Generation Plan• Other Financial and resource matters

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South African National Biodiversity Institute

Vision: Biodiversity richness for all South Africans

To champion the exploration, conservation, use, appreciation and enjoyment of South Africa’s exceptionally rich biodiversity for all people

Mission :

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Some information about SANBI

• Created in 2004 by the NEMBA • Built on the foundation of NBI (Botanical Conservation research,

Herbaria & Gardens) with over a 100 years history of botanical exploration and science

• Located in 9 National Botanical Gardens (NBG) HO in Pretoria• Total 719 Staff members of which half are Garden Management• Annual Income - approx R331.4m• Total annual operations expenditure approx R343.2m and so approx

deficit of R11.8m• Split between MTEF (approx R150.8), own income (approx R44.0m) and

donor funds and other grants (approx R137.0m)

Unique Biodiversity institution globally – an arrangement considered to be worlds best practice

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National Botanical Gardens (NBGs)(see www.sanbi.org)

Province/Garden Location Annual visitor

numbers

Year established

Area (ha)

1. Western Cape

Kirstenbosch NBG(former HO)

Cape Town 736,081 1913 199

Karoo Desert NBG Worcester 51,100 1921 154

Harold Porter NBG Betty’s Bay 60,602 1959 200.5

2. Northern Cape

Hantam NBG Nieuwoudtville 1,501 2008 6,229

3. Free State

Free State NBG Bloemfontein 27,597 1967 66.8

4. Gauteng

Pretoria NBG (HO) Pretoria 95,212 1958 75.2

Walter Sisulu NBG Roodepoort/ Mogale City 180,363 1982 276

5. KwaZulu-Natal

KwaZulu-Natal NBG Pietermaritzburg 63,203 1874/1969 47.7

6. Mpumalanga

Lowveld NBG Nelspruit 77,391 1969 165

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SANBI’s GOAL towards the Vision

SANBI is strategically positioned to harness South Africa’s biodiversity capacity and is recognised as the first port of call for knowledge, information and policy advice on biodiversity in South Africa and the region.

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KRA 1: Understanding biodiversity and understanding bio-adaptation to climate change

KRA 2: Models for integrated biodiversity management

KRA 3: Conservation Gardens

KRA 4: Policy advice

KRA 5: Managed network and human capital development

KRA 6: Effective systems and processes

New KRA 7 in 2010-11

6 KEY RESULT AREAS

SANBI will put in place structures, networks, and leadership for scientific enquiry and for generating biodiversity knowledge in key policy-relevant areas

1.1. A national biodiversity research strategy & framework for SA is developed and implemented and reviewed when appropriate.

1.2. A research agenda relating to climate change & bio-adaptation is developed

& implemented, and knowledge beneficiated & documented.

1.3 Research in key policy-relevant areas is undertaken, guided by the priorities in the National Biodiversity Strategy & Action Plan (NBSAP)

and the National Biodiversity Framework (NBF).

1.4. A Comprehensive Biodiversity Monitoring Framework is developed, approved and implemented.

1.5. Priority threatened species and ecosystems for SA are identified (both spatially and thematically).

KRA1: Understanding biodiversity and bio-adaptation to climate change

KRA 2: Models for integrated biodiversity management

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SANBI will co-ordinate and facilitate collaborativebiodiversity programmes which innovate, pilot andmainstream new models for biodiversity management

2.1. Collaborative cross - sectoral biodiversity programmes dealing with threatened biomes and ecosystems are hosted by SANBI and operating effectively.

2.2. Best practice models for biodiversity management are developed and piloted.

2.3. Lessons from biodiversity mainstreaming pilots are synthesised and shared.

KRA 3: Conservation Gardens

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SANBI will expand and strengthen the role of national botanical gardens to provide a national footprint in nature-based tourism, conservation gardens, and showcasing SANBI and biodiversity.

3.1. Gardens expansion strategy is developed and implemented.

3.2. One additional garden in an under represented biome/province is established.

3.3. Profiling of biodiversity issues and SANBI programmes is effected through garden programmes.

3.4. Revenue generating activities in gardens are strengthened.

SANBI will provide science-based policy advice in support of sustainable development

4.1. Biodiversity policy support for DEA is provided.

4.2. Policy development & decision-making relating to climate change is enhanced by increasing access to appropriate scientific knowledge.

4.3. Biodiversity concerns are mainstreamed in the policies of key sectors.

4.4. Clear policy messages emerge from SANBI’s work and are appropriately packaged for targeted audiences.

4.5. Lessons learned from science into policy are captured and shared.

KRA 4: Policy advice

SANBI will build partnerships through its managed networkto strengthen and co-ordinate the biodiversity sector, andwill be the recognised strategic partner in human capitaldevelopment for the sector

5.1. Structures & processes in place to enable & support managed network partnerships that contribute to implementation of SANBI’s Strategy

5.2. SANBI’s capacity to mobilise, synergise and catalyse the biodiversity sector is recognised by funders.

5.3 The contribution of the managed network to human capital development and

transformation is strengthened.

5.4. Young South African biodiversity professionals receive training & mentoring.

5.5. SANBI is the recognized one-stop-shop for accessing biodiversity info. 5.6. Standards, structures, and direction for biodiversity collections, surveys,

maps, inventories, and catalogues are provided.

KRA 5: Managed network and human capital development

KRA 6: Effective systems and processesSANBI will put in place the effective operational, financial, and governance systems to support effective implementation of its mandate.6.1 An enabling environment that attracts & retains bio professionals is created.

6.2 An effective strategy for transformation is implemented.

6.3 A financial strategy that provides a sustainable funding base for SANBI’s existing and expanding activities is effectively implemented.

6.4 Financial systems/ policies that comply with Treasury guidelines and public sector governance requirements respectively are in place.

6.5 Effective monitoring & reporting info systems are in place to assist, monitor, report, assess & provide progress ensuring service delivery is improved.

6.6 An effective brand development plan that incorporates a marketing and communications strategy & corporate identity is developed & implemented

6.7 An effective corporate communication strategy is implemented.

6.8 SANBI’s mandated activities are effectively marketed.

Progress against Business Plan to date

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Key Result Area 1: Understanding biodiversity and understanding bio-adaptation to climate Change

MOU signed with Encyclopedia of Life project to establish a South African branch. SABAP 2 now has 771 volunteers submitting > 31 000 bird species checklists from across the

country – one every 5 minutes, 1.7 million verified records available. Draft report on climate change impacts on Namibian ecosystems finalized. New EU FP7 project on climate change and wildfire underway. High level report on climate change and biodiversity published on behalf of Convention on

Biological Diversity (SANBI co-chaired the author team). Published the Red List of South African Plants, including a comprehensive list of threatened

species. SA is the first mega-diverse country to complete such an assessment, involving more than 20 000 species.

The MSB Project in South Africa met the objective of collecting the seed of 10% of the country’s indigenous flora by 2010.

Hosted the Joint Research commission (EU & FAO), and bringing together African scientists for the validation of land use and land cover in eastern and southern Africa

Successful completion of the BIOTA project, bringing to a conclusion 9 years of research and monitoring on biodiversity and ecosystem services in southern Africa

New project initiated on rapid response tasks for emerging invasive plants with Working for Water for R9.4 Million.

Joint SANBI / NRF Interim report on the assessment of almost 100 natural science collections (plant, animals and tissues/DNA) in SA submitted.

Published book on Botanical Exploration of Southern Africa Described Morea vuvuzela – a new species covered in the media during the World Cup. Published over 50 peer-reviewed scientific papers.

Progress against Business Plan to date Cont.

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Key Result Area 2: Models for integrated biodiversity management

Hosted World Wetlands Day on 2 February, with the global theme of “Wetlands, biodiversity and climate change”, with a keynote address by the Deputy Minister

Organised and co-hosted, with DEA, the 2010 Biodiversity Planning Forum. Over 180 participants from a range of organisations attended this annual event.

At the request of MINTECH, coordinated and facilitated the complex process of refining and standardising the delineation of provincial sensitive geographic areas for Listing Notice 3 of the EIA Regulations. This forms part of governments EIA rationalization and streamlining process. SANBI provided guidance on efficient and consistent use of biodiversity information.

Developed a offshore biodiversity plan that identifies priority offshore areas for marine biodiversity. This project is highly innovative and is providing international leadership on the development of an Offshore Marine Protected Area (MPA) network.

The C.A.P.E. close out event for the Biodiversity Conservation and Sustainable Development (BCSD) project, funded by the Global Environment Facility (GEF) through the World Bank was held with the theme of ‘Celebrating Conservation’. GEF final report highly congratulatory

Working for Wetlands received a Star Award at the 2010 Sustainability Awards event held in May this year. Administered by the Impumelelo Trust, the awards recognise public service innovation and excellence

The first biodiversity stewardship site on forestry-owned land was proclaimed and gazetted under NEMPAA as a nature reserve in KwaZulu-Natal, comprising approximately 900 ha of mistbelt grassland.

Completed the PetroSA project which significantly expanded the knowledge base to support environmental management in the petroleum, fisheries and biodiversity sectors; offshore Marine Protected Area planning; and integrated spatial management of South Africa’s Exclusive Economic Zone.

Progress against Business Plan to date Cont.

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Key Result Area 3: Conservation Gardens Rand Water donated R120,000 for a new Waterwise Display Garden at Walter Sisulu NBG. Total visitor number across all gardens for the 2009/10 was 1,291,581– the highest annual total

visitor number ever recorded in the 97-year history of SANBI. R36,320,867 total income was generated by the Gardens from April 2009 to March 2010 - the

highest ever income amount generated by SANBI’s gardens. Negotiated with Old Mutual for 3-year extension to Sunset Concert sponsorship agreement. Pretoria NBG won a Bronze Medal during the GardenEx Exhibition held in Midrand. Project on analysis of commercial operations & benchmarking with tourism & leisure industry -

registered as a formal project with PPP Unit of the National Treasury. Annual Biodiversity Expo held in Kirstenbosch– attendance over 2,000. Kirstenbosch hosted the international artists Chris de Burgh, Elton John, Cliff Richard and the

Shadows during the summer season. Sappi committed funding to a series of biodiversity-related publications over the next five years. 9984 learners reached through garden-based programs in all the provinces where gardens exist

and in the E. Cape where there is no garden. A total of six education programs reviewed and four new developed with the intention of

benchmarking against international and national standards. Projects undertaken on water quality studies, sand dune rehabilitation, waste management in an

informal settlement , current sources of energy and alternatives. SANBI’s 35th consecutive annual horticultural exhibit at the Royal Horticultural Society’s Chelsea

Flower Show in London, UK, was awarded a Silver Medal.. International Biodiversity Day (22 May 2010) was celebrated across SANBI, with free entrance into

Gardens given to all members of the public. A new self-guided Tree Route was also launched in the Pretoria NBG as part of SANBI’s IYB

celebrations.

Progress against Business Plan to date Cont.

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Key Result Area 4: Policy advice

Revised lists for Alien & Invasive Species Regulations (based on a review of all public comments), together with maps for listed fish species, handed over to DEA.

Chaired Committee 1 at the CITES Conference of the Parties. A crisis management plan for SA’s cycads was submitted to DEA Provided support to DEA prior to CBD SBSTTA and key policy inputs on Climate Change. SANBI publications include STRELITZIA No. 25 Red List of South African plants, SANBI

Biodiversity Series No. 13 South African Red Data Book: butterflies, and STRELITZIA No 24 Historical plant incidence in southern Africa. compiled by J.C. Skead (edited by J.C. Manning & N.C. Anthony) (Sponsorship from E. Parker R50 000).

First Bioregional Plan from Nelson Mandela Bay Municipality submitted for review. Green Economy article published in The Times and participated in Green Summit. Assistance to DEA with Listing Notice 3 for EIA Regs, dealing with geographical areas. Provide technical support on rationalization of the protected area management. National Protected Area Expansion Strategy and National Biodiversity Framework (both

developed by SANBI at the request of DEA) launched at the Green Economy Summit held in May 2010. Copies handed to President Zuma.

Support to DEA as part of SA delegation to the Third Stakeholder Meeting on the establishment of an International Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES).

Inputs provided to DEA on the M&E framework of the Delivery Agreement for Outcome 10 of the Medium Term Strategic Framework.

Led the production of the 2nd National Report on Climate Change which was approved by Cabinet

Support to DEA as part of SA delegation to highly successful CBD COP 10 Launched a tool kit book called Biodiversity for Development in Japan at COP 10 of the CBD–

considered a display of worlds best-practice

Progress against Business Plan to date Cont.

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Key Result Area 5: Managed network and human capital development Three black MSc Climate Change students graduated. Funding committed by the Applied Centre for Climate and Earth Systems Science (ACCESS) and

Open University, UK to support Black PhD scientists. 11 adult learners completed EnviroEds Course and 26 AEO trained nationally. Of the 8 participating SANBI Eco-schools – 1 international flag, 3 gold, 4 green flags and 1

certificate of participation achieved. Indigenous Greening program with 13 schools commenced. 13 PDI schools participated in annual Biodiversity Careers Expo. Signed GBIF contract on harvesting biodiversity data from EIA’s. Finalized the Biodiversity Information Policy Framework. Launched the new website: Biodiversity Advisor. R1.5m funded projects for data collection was handed to SABIF at an annual event. Biodiversity Human Capital Development Strategy drafted with input from stakeholders. 10 new schools were greened in Western Cape and Gauteng and partners trained. Four Biodiversity Careers’ Expos held in garden centres. 17 learners mentored through the EETDP Learnership in partnership with DEA. 21 workshops were facilitated nationally with teachers and district officials. Environmental Awareness initiatives undertaken through celebration of Biodiversity Week, Bird

week and Environment week with learners and community members. Environmental Awareness raised through celebration of International Biodiversity Day (IYD) at

Pretoria NBG with staff, their spouses and children. A historical MOU was signed between SANBI and the Botanical Society of South Africa Lewis Foundation dedicated R9 Million to support implementation of Human Capital

Development (HCD) Strategy for the biodiversity sector led by SANBI.

Progress against Business Plan to date Cont.

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Key Result Area 6: Effective systems and processes

New SANBI Corporate ID and brand approved by Board SANBI Corporate website and Garden virtual tours launched. SANBI Bohlale (the Institutes carbon footprint) campaign developed and rolling out Outsourced IT Services contract awarded to Mthombo IT(M-IT) Reviewed and updated IT Policies and Procedures Strategic Planning Session and presentation to Audit Committee for the development of a

comprehensive (MISTP) Master Information Systems Technology Plan Infrastructure Migration Project Completed Feb 2010. Relationship Building by Objectives exercise conducted with management and NEHAWU. Training on annual performance evaluation conducted at all SANBI Cost Centres. Workshop conducted with (DPSA) on Workforce Planning Fourth shared learning on HCD with Cape Nature, Eastern Cape Parks, City of Cape Town Facilitated placement of 27 DST/NRF interns Presented with a Merit Award from the Southern African Society for Co-operative Education

(SASCE). in recognition of the consistent attainment of standard of excellence in SANBI’s participation and practice of co-operative education.

TAU carried out focus group discussions and a questionnaire survey under the Sustainable Transformation Initiative. Information consolidated and presented to SANBI Board. TAU and management did a national roadshow to all staff for feedback and suggestions for way forward. Next step, master plan for change, management training, organisational values process.

Human Resource Road Show was conducted to raise awareness on various policies Upgraded the backup system (business servers, file servers, new email servers).

Challenges

• Lack of funds to fulfil mandate and expectations as set out in SANBI CSP 2010 and Annual Business Plan – have submitted a revised BP 2010 to DEA

• Budget Deficit Management and generating income from assets given that SANBI is for the public good

• Making the economic, social & development ‘value’ case for biodiversity – including ecosystem services and green jobs.

• Delivering our Biosystematics and Collections mandate

• To excite the majority of population about the value and pleasure of biodiversity.

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Budget Deficit Management in summary

• Focus - reducing personnel costs- Increasing own income- ring-fencing projects• Actions to date- Reduced top structure – new slimmed-down organogram- Removed non-critical vacant MTEF funded posts- Removed Urban Conservation, incorporated into Municipal program- Reviewed Education to achieve objectives with less budget- Redeployed /transfer of Education and Urban Conservation

personnel to critical MTEF funded posts and project funded posts• No retrenchments or redundancies• Some change to our Business Plan

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SANBI’s BUDGET PRIORITIES (over and above existing commitments)

1. Gardens Expansion- Eastern Cape site – feasibility done.- Now at DEA to do legal steps- Money for Capital but none for Ops- In Minister’s delivery agreement under Outcome 10

2. Biodiversity Monitoring- Comprehensive framework being developed for both Plants and

animals.- Proposal for additional funding through MTEF process- Mandate critical

3. Green Economy- In support of the Green Economy Strategy & Plan of Government- Making the value case for Biodiversity- Ecosystem services - Job Creation and livelihoods

4. Climate Change Bio-adaptation- In support of DEA’s Adaptation Strategy for the Biodiversity sector

5. Biosystematics and Collections- Mandate critical - After NRF’s national review and recommendations- Proposal for additional money through MTEF process

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APPROVED 2009/10 Adjustment Budget 2010/11 Budget

DIFFERENCE

Trading

(1,696,595) Trading

(2,010,000) 313,405

Main Grant

(135,824,000) Main Grant

(144,231,000) 8,407,000

Own income

(44,168,314) Own income

(44,605,400) 437,086

Personnel Costs

133,589,138 Personnel Costs

142,566,321 8,977,184

Operating Costs

48,099,769 Operating Costs

48,280,079 180,310

Infrastructure Grant

(10,000,000) Infrastructure Grant

(10,000,000) 0

Infrastructure expenditure

10,000,000 Infrastructure expenditure

10,000,000 0

Project income

(254,833,938) Project income

(168,081,274) 86,752,664

Project salaries

22,541,652 Project salaries

20,513,672 2,027,980

Project operating

162,977,104 Project operating

108,092,660 54,884,444

Committed Unspent Project Funds

(69,315,182)Committed Unspent Project Funds

(39,474,942)  

BUDGET COMPARISON: 2009/10 VS. 2010/11BUDGET COMPARISON: 2009/10 VS. 2010/11

Budget Management

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REVENUE GENERATION PLAN

1. Own income R31,4m (+5%)

Balance Project IncomeInterest EarnedAdmissions FeesAdmin Fees from ProjectsRent receivedStaff Accommodation ChargesSponsorships, Donations & Other grantsCommission receivedDiscounts EarnedProfessional services renderedPublic functionsUse of garden facilitiesFilm location fees

 2. SALES R2.0m

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Income

•Total income including the government grant decreased by -0.6% (R2.0 million) from R333.4 million (2009) to R331.4 million (2010). The Department of Environmental Affairs (DEA) increased its grant by 17.1% for the year under review. In terms of the 17.1%, only 6.6% relates to the MTEF base grant allocation and the difference is allocated to specific projects. •Other grants, sponsorships and donations decreased with R26.5 million. Except for the EPWP grant, the decrease can be attributed to the global economic recession.

Own Income

•Income from rent received increased by R0.8 million or 10% (R8.2 million: 2010; R7.5 million: 2009) from the previous year. These facilities are outsourced and the rent is based on a percentage of turnover made by the operator.

•Income on disposal of property, plant and equipment decreased from R0.5 million (2009) to R0.03 million (2010). The disposals income consists mainly of insurance pay-outs.

Other income

•consisted of professional services rendered, guided tours conducted, commissions, and seminars and workshops hosted. Other income amounted to R2.5 million in 2009 and increased to R4.6 million in 2010. The increase of 81% (R2 million) is mainly attributable to higher fees generated in 2010 for professional services rendered.

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• The total expenses, increased by 2% (R6 million) from R337.2 million (2009) to R343.2 million (2010).

Non-current Assets

• Non-current assets decreased by 4% (R8 million). The decrease was mainly due to the reduction in asset spending of R8.4 million. Land and buildings amounted to R4.4 million, equipment to R1.6 million, vehicles to R0.5 million and intangible assets to R0.6 million. Depreciation and amortisation amounted to R14.7 million. Defined Benefit Asset of R5.5 million (2010) and R5.0 million (2009) was recognised due to revised actuarial valuations.

 Current Assets 

• Current assets increased by R20.1 million (45%), cash and cash equivalents increased by R20.9 million (50%). Consumables decreased by R0.5 million (82%) and Trade and other receivables decreased by R0.3 million (11%).

Non-current Liabilities 

• Non-current liabilities increased by R0.7 million (3%). The reason for the increase is as follows:  

• R0.7 million (3%) increase in post-retirement medical aid benefit. This is a direct result of the increase in medical aid benefit costs and SANBI’s employees with exceptionally long service history.

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Current Liabilities

•Current liabilities increased by R23.2 million (28%). The increase is due to the net effect of:

•Unspent project funds to the amount of R62.4 million (+72%). Unspent project funds transferred amounted to R56.1 million for externally funded projects and R6.3 million for MTEF projects. The utilisation of project funding received in advance is continuing year-on-year.

•Decrease in trade and other payables of R2.8 million (6%).  Cash flow statement  •The deficit for the year is R11.8 million, and after adjusting for non-operating elements (Depreciation and amortisation of R14.7 million, Investment income R2.7 million, interest paid R0.002 million, and profit on disposal of assets R0.03 million), the resultant operating surplus before working capital changes is R0.7 million.  Auditor’s reports

•The Auditor General considered the internal audit reports issued during the year and the audit findings. The AG issued an unqualified report after focusing primarily on SCM, Assets and Expenses.

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Thank You for your support

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