#1R South African NATIONAL PARKS South African National Parks 2020/21 Annual Report Presentation#2OUTLINE ㄢ ( South African NATIONAL PARKS SANParks vision and mission • Key challenges which impacted on the ability to effectively implement the APP • Key performance against annual targets . SANParks Financial Report Auditor-General's Report 2#3VISION A world class system of sustainable national parks reconnecting and inspiring society MISSION Develop, protect, 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. South African NATIONAL PARKS 3#4Overall performance during the year OUTCOME GOALS OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERS BENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE OUTCOME GOAL 2: IMPROVED DIVERSE RESPONSIBLE TOURISM % On target % Work in progress % Off Target % No Milestone 83.3 % (10/12) 8.3% (1/12) 8.3% (1/12) 0% (0) 100% (4/4) 0% (0/4) 0% (0/4) 0% (0/0) OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA 94% (15/16) 6% (1/16) 0% (0/16) 0% (0) OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH 72% (13/18) 11% (2/18) 17% (3/18) 0% (0) REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES TOTAL 84 % (42/50) 8% (4/50) 8% (4/50) 0% (0) South African NATIONAL PARKS 4#5SANPARKS PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS % On target ≥95% % Work in progress: 75%-94% % Off Target % No milestone 84% (42/50) 8% (4/50) < 75% 8% (4/50) 0% (0/0) Status 8% 8% 84% Achieved Work in progress ■■Off Target ■No Target 5#6GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERS BENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE SUB OUTCOME 1: PROTECTED AREAS EXPANSION ALIGNED WITH NATIONAL PROTECTED AREA EXPANSION STRATEGY (NPAES) AND SANPARKS LAND INCLUSION PLAN OUTPUT INDICATOR 2020/21 ANNUAL TARGET 1.1 Number of hectares added to national parks 4 000ha ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Target exceeded South African NATIONAL PARKS Planned activities as per implementation plan were completed as follows: Concluded Purchase Agreements per identified properties as per the Land Inclusion Plan 2020-2021 totaling 6424 ha; • Addo: 363 ha . Marakele: 2546 ha Namaqua: 3515 ha The performance achieved is 2424 ha above the annual target. Performance above the target is desirable. It is difficult to predict the exact amount of land that will be acquired given the many variables in land transactions and donations that are unpredictable. Challenges: None Corrective measures: None required 6#7GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERS BENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE SUB OUTCOME 2: EFFECTIVE AND EFFICIENT MANAGEMENT OF NATIONAL PARKS OUTPUT INDICATOR ACTIONS / INTERVENTIONS South African NATIONAL PARKS 2.1 Percentage of Management Effectiveness Tracking Tool (METT) corrective Actions implemented 2020/21 ANNUAL TARGET 55% progress against identified METT Target exceeded corrective actions implemented 100% of Parks that scored below 67% reassessed METT score of ≥ 67% ANNUAL PROGRESS AND ANALYSIS 64.3 % progress against identified METT corrective actions implemented. One park (Namaqua NP) was reassessed in quarter 4 Challenges: None Corrective actions: None required#8GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERS BENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE South African NATIONAL PARKS SUB OUTCOME 3: DEGRADED ECOSYSTEMS REHABILITATED OUTPUT INDICATOR 2020/21 ANNUAL TARGET 3.1 Number of degraded ha of land 9456 initial ha rehabilitated ACTIONS/INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Work in progress 7 880 initial ha of degraded land against the targeted 9 456 ha were rehabilitated. This equates to an achievement of 83% Challenges: Despite not achieving 100% of the annual target, the approval of Presidential Employment Stimulus (PES) Funds in November enabled the rehabilitation of additional initial hectares in quarter 4. Corrective actions: Outstanding hectares to be included in the plan for 2021/22#9GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERS BENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE SUB OUTCOME 3: DEGRADED ECOSYSTEMS REHABILITATED OUTPUT INDICATOR ACTIONS / INTERVENTIONS 2020/21 ANNUAL TARGET 3.2 Number of degraded 61,003 Follow up ha rehabilitated Target exceeded ha of land rehabilitated (Cumulative) ANNUAL PROGRESS AND ANALYSIS South African NATIONAL PARKS 78,600 hectares achieved against a target of 61 003 hectares Motivation for over achievement: The project plan for the Cape Region was adjusted to do follow-up rehabilitation in several areas to address the regrowth after fires. In KNP additional Parthenium clearing was undertaken with more teams working in- field towards the end of the financial year. The PES Funds, allowed more work on the follow-up areas that could not be done with the original budget. Challenges: None Corrective actions: None required#10GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERS BENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE SUB OUTCOME 3: DEGRADED ECOSYSTEMS REHABILITATED OUTPUT INDICATOR 3 3.3 Number of m³ of degraded wetlands under rehabilitation 2020/21 ANNUAL TARGET 5,100 m³ of wetland Target exceeded rehabilitated ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS South African NATIONAL PARKS 5,862 m³ were rehabilitated against a target of 5 100 m³ Motivation for over achievement: The PES funds contributed immensely in increasing the number of people and small contractors employed to implement the programme. Challenges: None Corrective actions: None required 10#11GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERS BENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE SUB OUTCOME 4: CLIMATE CHANGE VULNERABILITY REDUCED AND CLIMATE RESILEINCE IMPROVED OUTPUT INDICATOR 2020/21 ANNUAL TARGET 4.1 Number of climate change Climate change preparedness strategy response interventions draft 1 completed implemented On target ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Climate change vulnerability assessments completed for five national parks Draft 1 of the Climate Change Preparedness Strategy was completed. Climate change vulnerability assessments completed for 5 national parks Challenges: None Corrective actions: None required 11 South African NATIONAL PARKS#12GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERS BENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE SUB OUTCOME 5: A FRAMEWORK TOWARDS IMPROVED MANAGEMENT OF AQUATIC SYSTEMS DEVELOPED OUTPUT INDICATOR 5.1 Guideline document developed 2020/21 ANNUAL TARGET ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Guideline document for the development of estuarine and Marine Protected Areas (MPA) management Plans in line with stakeholder and legislative mandate, developed. On target The Guideline Document for the Development of Estuarine and MPA Management Plans was developed. Challenges: None Corrective actions: None required 12#13GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERSBENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE SUB OUTCOME 6: A FRAMEWORK TOWARDS IMPROVED MANAGEMENT OF CULTURAL HERITAGE DEVELOPED OUTPUT INDICATOR 2020/21 ANNUAL TARGET ACTIONS / INTERVENTIONS 6.1 Number of cultural heritage Cultural heritage resources in three national assessments conducted parks assessed On target ANNUAL PROGRESS AND ANALYSIS The Cultural Heritage Survey Report was completed and cultural heritage resources were assessed in three parks. ( Kruger, Table Mountain and Garden Route NPs) Challenges: None Corrective actions: None required 13#14GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERSBENEFITS FOR THE SUB OUTCOME 7: SUSTAINABLE POPULATIONS OF SPECIES OF SPECIAL CONCERN MONITORED AND MAINTAINED OUTPUT INDICATOR 2020/21 ANNUAL TARGET 7.1 Percentage annual increase in rhino populations Rhino population in other rhino parks increasing at 4% On target PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS In the smaller rhino parks (the six rhino parks besides Kruger), the weighted annual growth rate was 7.3% thus exceeding the target. Challenges: NONE Corrective actions: NONE Decline in Rhino population in KNP halted Off target The decline in black and white rhino populations in KNP has not been adequately halted as current poaching rates are not offset by birth rates-resulting in a net loss of rhinos. Challenges: The drought of 2015/2016 continues to have lag effects on birth rates of white rhinos, while poaching disturbance on black rhino social structure resulted in the lowest black rhino birth rates since 2013. Corrective actions: A workshop was held to reflect on learning that has taken place over the last 10 years and get consensus on a way forward to reverse the declining population trends. The recommendations from the workshop will inform key actions to be taken.#15GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERSBENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE SUB OUTCOME 8: WILDLIFE CRIME IN NATIONAL PARKS REDUCED OUTPUT INDICATOR 2020/21 ANNUAL TARGET 8.1 Number of rhinos poached in KNP and Rhinos poached in KNP less than ≤ 250 6 parks reduced animals ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS On target 247 rhino have been reported poached in KNP for 2020/21. This represents an 18.21% reduction in the number of animals poached compared to the previous year. Challenges: There was a sudden surge in incursions resulting from the easing of restrictions on movement as the lockdown levels were relaxed. Corrective measures: Continued implementation of the multi-pronged anti-poaching strategy. Deployment of resources to areas of greater risk. Less than 5 animals poached in 6 parks On target No animals were poached in the 6 rhino parks J#16GOAL 1: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 1: SUSTAINABLE BIODIVERSITY AND CULTURAL HERITAGE ACROSS LAND AND SEA DELIVERS BENEFITS FOR THE PEOPLE OF SA AND THE WORLD, NOW AND IN THE FUTURE SUB OUTCOME 8: WILDLIFE CRIME IN NATIONAL PARKS REDUCED OUTPUT INDICATOR 2020/21 ANNUAL TARGET 8.2 Number of elephants poached reduced Less than 40 animals poached On target ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS South African NATIONAL PARKS 15 elephants were poached in Kruger National Park and 0 elephants poached in other elephant parks in 2020/21. This is a positive reduction of 44.4% from the previous year. Challenges: Whilst still within the range forecasted, poaching increased from Q2. This is largely due to the lifting of restrictions on movement and relaxation of COVID- 19 Alert Levels. Corrective measures: Continued implementation of the multi-pronged anti-poaching strategy. Deployment of resources to areas of greater risk TO#17GOAL 1: SUMMARY OF PERFORMANCE South African NATIONAL PARKS % On target ≥95% % Work in progress: 75%-94% % Off Target % No milestone < 75% 83.3% (10/12) 8.3% (1/12) 8.3% (1/12) 0% (0/0) 8.3% 8.3% 90 0% Status 83.3% 17 Achieved Work in progress ■ Off Target ■ No Target#18GOAL 2: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 2: IMPROVED DIVERSE RESPONSIBLE TOURISM SUB OUTCOME 9: IMPROVED TOURISM PERFORMANCE OUTPUT INDICATOR 2020/21 ANNUAL TARGET 9.1 Percentage of visitors to 68,3% decline from 6 326 435 national parks year on year to 2 000 000 ACTIONS/INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS On target Visitors declined by 68.4% from 6 326 448 to 1996 667 South African DARKS Challenges: • All NPs closed in April and May 2020 due to the national lockdown to curtail the spread of COVID- 19. • Limited day-visits by intra-provincial local travellers from 8 June 2020, with overnight leisure accommodation and inter-provincial travel allowed again from mid-August 2020. • Consequently the first quarter of the year recorded limited activity both in tourism revenues and volumes. Gradual growth in tourist volumes in quarters 2 to 4, but the YoY showed a drastic decline of an average of 70% in revenues and volumes for all three quarters. The surge in domestic tourists due to the lifting of the intra-provincial travel ban in September 2020 was not sufficient to compensate for the losses incurred in the first five months of the financial year.#19GOAL 2: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 2: IMPROVED DIVERSE RESPONSIBLE TOURISM SUB OUTCOME 9: IMPROVED TOURISM PERFORMANCE OUTPUT INDICATOR 2020/21 ANNUAL TARGET ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS South African NATIONAL PARKS 9.1 Percentage of visitors to national 68,3% decline from 6 326 parks year on year 435 to 2 000 000 Continued... • The expectation that the summer season would usher in significant recovery was impeded by surging local infections, leading to a "second wave" of COVID-19 from December 2020. This resulted in the closure of beaches along most of South Africa's coast and in turn negatively impacted on visitor numbers to SANParks' coastal destinations. Flooding in the Kruger National Park and the temporary closure of Lower Sabie due to a localized outbreak of COVID-19 further negatively impacted performance in January and February 2021, though the increased flow of the Orange River over the Augrabies Falls had a temporary positive impact on that park. Corrective actions Continued emphasis on marketing and promoting national parks to domestic tourists through innovative marketing initiatives such as. Brand Marketing - Event marketing e.g. Golden Gate Classics. Effective collaboration with both public and private sector entities and brands such as South African Tourism, Major brands, Standard Tour Operators and Special Interest Groups. Influencer Marketing Programme to leverage on the influence of those who already have the attention of the non- traditional markets#20GOAL2: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 2: IMPROVED DIVERSE RESPONSIBLE TOURISM SUB OUTCOME 9: IMPROVED TOURISM PERFORMANCE OUTPUT INDICATOR 9.2 Percentage of accommodation occupancy ACTIONS/INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS 2020/21 ANNUAL TARGET 26,8% On target Accommodation Unit Occupancy for the year was 29.4% Challenges: As per previous indicator Corrective actions: As per previous indicator 20 South African NATIONAL PARKS#21GOAL 2: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 2: IMPROVED DIVERSE RESPONSIBLE TOURISM SUB OUTCOME 9: IMPROVED TOURISM PERFORMANCE OUTPUT INDICATOR 2020/21 ANNUAL TARGET ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS On target 9.3 Total number of new and diverse tourism 4 products implemented South African NATIONAL PARKS SUB OUTCOME 10: IMPROVED RESPONSIBLE TOURISM 10.1 Responsible tourism determined measures Measures, baselines 4 products were implemented and these are: Table Mountain NP Commercial Abseiling; The Rhodes Memorial Tearoom; KNP Spa at Berg en Dal and Pretoriuskop & KNP Mobile Spa in Satara, Tamboti, Talamati and Orpen. Challenges: None Corrective measures: None required and On target targets for responsible tourism determined A responsible tourism toolkit for measuring targets for responsible tourism was developed. Baseline performance and Responsible Tourism Scorecard finalized. Challenges: None Corrective actions: None required#22GOAL 2: SUMMARY OF PERFORMANCE South African NATIONAL PARKS % On target ≥95% % Work in progress: 75%-94% % Off Target % No milestone < 75% 100% (4/4) 0% (0/4) 0% (0/4) 0% (0/4) Status 100% Achieved Work in progress ■Off Target 22#23GOAL 3: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 11: TRANSFORMATION OF WILDLIFE ECONOMY THROUGH INCREASED PDI PARTICIPATION OUTPUT INDICATOR ACTIONS / INTERVENTIONS 2020/21 ANNUAL TARGET ANNUAL PROGRESS AND ANALYSIS 11.1 Number of animals delivered to communities ≥ 500 animals delivered and individual emerging game farmers Target exceeded A total of 530 were delivered in the year under review. Challenges: None Corrective actions: None required 23 South African NATIONAL PARKS#24GOAL 3: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 11: TRANFORMATION OF WILDLIFE ECONOMY THROUGH INCREASED PDI PARTICIPATION OUTPUT INDICATOR 2020/21 ANNUAL TARGET 11.2 Number of Full Time 4,285 Full time equivalent (FTE) Equivalent opportunities created through opportunities created Target Exceeded job employment (FTEs) job. 4,741 FTEs created EPWP Other jobs: 200 ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Other jobs: 322 other jobs were created Motivation for over achievement: More people were employed in the Wetlands, Working for Water, Working for Ecosystems projects due to added financial resources from Presidential Employment Stimulus Fund (PES). Challenges: None Corrective actions: None required#25GOAL 3: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 11: TRANFORMATION OF WILDLIFE ECONOMY THROUGH INCREASED PDI PARTICIPATION ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS OUTPUT INDICATOR 2020/21 ANNUAL TARGET 11.3 Number of jobs created for youth, women and people with disabilities through EPWP Youth EPWP: ≥ 5,993 Target exceeded Youth EPWP: 6927 Women EPWP: ≥ 5,080 Target exceeded: Women EPWP: 5 884 People with disabilities EPWP: ≥260 Target exceeded: People with disabilities EPWP: 271 Motivation for over achievement for the three targets All the EPWP projects employed more people throughout the year to make provision for the COVID-19 impacts, i.e. person days lost due to isolation & quarantine as well as travelling restrictions. The Presidential Employment Stimulus Funds assisted in retaining EPWP participants and to appoint more people. Challenges: None Corrective actions: None required#26GOAL 3: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 12: BASELINE OF COMMUNITIES ACCESSING NATURAL RESOURCES DETERMINED OUTPUT INDICATOR 12.1 Baseline of communities accessing natural resources determined 2020/21 ANNUAL TARGET Baseline determined On target ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Natural resource use baseline determined. Challenges: None Corrective actions: None required 26#27GOAL 3: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 13: IMPROVED PARTICIPATION OF PDIS IN SANPARKS BUSINESS OUTPUT INDICATOR ACTIONS / INTERVENTIONS 2020/21 ANNUAL TARGET ANNUAL PROGRESS AND ANALYSIS 13.1 Number of SMMEs contracted for ≥518 SMMEs_contracted for provision of provision of services and goods services and goods Target exceeded 690 SMMES (EPWP), 30 other SMMEs contracted Motivation for over achievement: All EPWP programmes employed additional SMMEs to make provision for the additional funds received from the Presidential Employment Stimulus (PES) Fund. The PES infrastructure projects employed an additional 38 SMMEs since November 2020, while the DFFE Working for Water, Working for Ecosystems and Wetlands employed more teams for land rehabilitation with the PES Funds received. There were more SMME opportunities awarded to address COVID 19 related impacts on the social economic wellbeing of communities Challenges: None Corrective actions: None required Target exceeded : 87 other SMMEs contracted Motivation for over achievement: More opportunities for contracting SMME's were available through the PPP opportunities Challenges: None Corrective actions: None required#28GOAL 3: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 13: IMPROVED PARTICIPATION OF PDIS IN SANPARKS BUSINESS 13.2 OUTPUT INDICATOR Percentage 2020/21 ANNUAL TARGET of BBBEE spent: 65% Work in progress expenditure on affirmative procurement ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS 61% (R686 051 424) Challenges: The COVID 19 Pandemic Alert Level 5 Lockdown resulted in under achievement in Q1 and Q2 which contributed significantly to underachievement for the year under review. By and large, business in the Conservation and Tourism Industries are relatively untransformed. Corrective actions: Develop the procurement strategies that are biased towards the designated groups (Women, youth and PWD owned enterprises) and Emerging Micro Enterprises (EMEs) or Qualifying Small Enterprises (QSES) Where feasible, encourage sub-contracting 30% for projects that are above R30 million to EMEs or QSES Accelerate the finalisation of the policy and implementation of Enterprise and Supplier development#29GOAL 3: PROGRESS AGAINST THE ANNUALTARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 13: IMPROVED PARTICIPATION OF PDIS IN SANPARKS BUSINESS OUTPUT INDICATOR 2020/21 ANNUAL TARGET ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS 13.3 Percentage of expenditure 30% outsourced opportunities to EMEs and QSEs by main on affirmative procurement contractors On target 30% Challenges: None Corrective measures: None required 29 20#30GOAL 3: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 14: IMPROVED EDUCATATION AND SKILLS OUTPUT INDICATOR LAND CLAIMANTS, HISTORICALLY DISADVANTAGED ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS 2020/21 ANNUAL TARGET 14.1 Number of beneficiaries from target groups trained ≥ 450 Target exceeded 593 beneficiaries were trained 14.2 Number of programmes aimed at upskilling Youth Motivation for over achievement Effective use of strategic partners The use of network centres also contributed to the achievement of the target. Corrective actions: None 1 On target A Food-Gardening & Medicinal Plant Programme was developed. Training models incorporating SMME & Supplier Development Model was also incorporated as part of the programme. Challenges: None Corrective measures: None required B#31GOAL 3: PROGRESS AGAINST THE ANNUALTARGETS FOR THE 2020-21 APP South African NATIONAL PARKS OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 14: IMPROVED EDUCATION AND SKILLS OUTPUT INDICATOR 2020/21 ANNUAL TARGET 14.3 Number of schools accessing the 50 Schools national parks for educational purposes ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Target exceeded 83 schools accessed the parks for educational purposes. Motivation for over achievement: As the COVID-19 lockdown was eased, bookings previously postponed took place. Pre-planned trips through partnerships took place. National Parks Week marketing increased interest. Challenges: None Corrective measures Early engagements with district offices to find mechanisms to deliver within the COVID-19 new normal.#32GOAL3: PROGRESS AGAINST THE ANNUALTARGETS FOR THE 2020-21 APP OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 15: SUSTAINED CORPORATE SOCIAL INVESTMENT TOWARDS COMMUNITY DEVELOPMENT OUTPUT INDICATOR 15.1 Number of individuals/communities where social legacy (COVID 19 Community Relief Programme) projects have been. completed 2020/21 ANNUAL TARGET ≥ 30 ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Target exceeded South African NATIONAL PARKS A total of 267 communities benefitted from the relief programmes implemented during the course of the financial year. Motivation for over achievement: Partnerships and additional funding allowed additional food parcels to be delivered. Corrective measures: None required 32#33GOAL 3: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 3: SUSTAINABLE SOCIO ECONOMIC DEVELOPMENT PROGRAMME THAT ENSURES DELIVERY OF BENEFITS TO THE LAND CLAIMANTS, HISTORICALLY DISADVANTAGED COMMUNITIES AND THE PEOPLE OF SA SUB OUTCOME 16: IMPROVED PARTICIPATION OF LAND CLAIMANTS IN SANPARKS BUSINESS South African NATIONAL PARKS OUTPUT INDICATOR ACTIONS / INTERVENTIONS 2020/21 ANNUAL TARGET ANNUAL PROGRESS AND ANALYSIS 16.1 Claimant Beneficiation scheme developed an 60% of the activities on the KNP land implemented as per land claims identified claims implementation plan implemented. Target exceeded 85% (17/20) activities for the KNP land claims implementation plan were implemented Motivation for over achievement: Additional training through National Department of Tourism (NDT) funding and support from UNDP Corrective actions: None required Qwaqwa Land claim beneficiation package The QwaQwa beneficiation package was developed. developed Challenges: None Corrective actions: None required#34GOAL 3: SUMMARY OF PERFORMANCE % On target ≥95% % Work in progress: 75%-94% % Off Target % No milestone < 75% 94% (15/16) 6% (1/16) 0% (0/16) 0% (0/16) 6% Status 94 % South African NATIONAL PARKS Achieved Work in progress ■ Off Target 34 =4#35GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 17: FINANCIALLY SUSTAINABLE ORGANISATION OUTPUT INDICATOR 2020/21 ANNUAL TARGET 17.1 Revenue raised through R 65 million Resource Mobilisation ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Work in progress South African R50 775 688 were raised. Challenges: The donor funding environment changed drastically due to the pandemic. Many donors focused on healthcare and related socioeconomic assistance in severely affected areas. Corrective actions: SANParks will continue with its mobilisation plans including the following: Research and identification of potential donors based on the SANParks strategies, synergies with donor focus areas and development of bankable proposals. Mobilising resources from the Private Sector; Multi-lateral agreements; Trusts and Foundations; Individual donors through donations and bequests and crowd funding. Develop memorandum of agreements, which include key area of delivery, donor score cards, implementation plans and impact data. 35#36GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 17: FINANCIALLY SUSTAINABLE ORGANISATION OUTPUT INDICATOR 2020/21 ANNUAL TARGET 17.2 Revenue raised through R 189 million Tourism Performance ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Target exceeded R 618, 784 000 South African NATIONAL PARKS Motivation for over achievement: The target was exceeded as a result of the earlier than anticipated resumption of tourism business and several initiatives to stimulate demand from the domestic market, e.g. promotions, awareness, etc. Corrective actions: None required 36#37GOAL 4: PROGRESS AGAINST THE ANNUALTARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 17: FINANCIALLY SUSTAINABLE ORGANISATION OUTPUT INDICATOR 2020/21 ANNUAL TARGET 17.3 Revenue raised through Wildlife Sales R4 million ACTIONS/INTERVENTIONS On target ANNUAL PROGRESS AND ANALYSIS South African NATIONAL PARKS R4, 616 million for was raised through wildlife sales in 2020/21. Motivation for over achievement The virtual auction proved to be very successful and this contributed significantly to the positive variance on the revised target. Challenges: None Corrective actions: None 37#38GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 17: FINANCIALLY SUSTAINABLE ORGANISATION OUTPUT INDICATOR 17.4 Income to Cost Ratio 0.64:1 2020/21 ANNUAL TARGET ACTIONS/INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Target exceeded 0.97.1 South African NATIONAL PARKS Motivation for over-achievement: Improvement in the tourism income and special project expenditure Expenditure reflects a variance of 9% due to savings on operational costs and under-expenditure on maintenance costs Corrective actions: Continuous monitoring of the cost curtailment measures to further strengthen the saving on cost of operations. Increased efforts to encourage targeted marketing drives to improve the revenue generation in the new financial year 38#39GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 18: TRANSFORMED AND CAPABLE HUMAN CAPITAL OUTPUT INDICATOR 18.1 Percentage of women in management 39.9% positions 2020/21 ANNUAL TARGET ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS On target 39.9% Challenges: Only critical posts are currently being filled Corrective measures: Appointment of women to be part of line manager's KPA's Increase efforts to retain black females 39 South African NATIONAL PARKS#40GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 18: TRANSFORMED AND CAPABLE HUMAN CAPITAL OUTPUT INDICATOR 2020/21 ANNUAL TARGET Off target 1,1% 18.2 Percentage of People with Disabilities 1.5% increased South African NATIONAL PARKS Challenges: All disability disclosures must be accompanied by a doctor's note. Due to movement restrictions, assistance with obtaining such notes could not proceed during lockdown. In addition, a decision to freeze the filling of vacant positions in order to cut costs impacted on the ability of the organisation to meet the targets. The planned targeted recruitment in partnership with the Board of People Living With Disabilities, did not take place. Corrective measures: Assist with Doctors verification on disability disclosures Roadshows at parks to prioritise targeted recruitment for PWD 40 40#41GOAL 4: PROGRESS AGAINST THE ANNUALTARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 18: TRANSFORMED AND CAPABLE HUMAN CAPITAL OUTPUT INDICATOR 18.3 Black as a percentage as management 62.5% increased ACTIONS / INTERVENTIONS 2020/21 ANNUAL TARGET ANNUAL PROGRESS AND ANALYSIS On target 62.4% South African NATIONAL PARKS Challenges: Only critical posts are currently being filled due to the budget challenges. Corrective measures: Continue to advise line managers to increase efforts in the recruitment of black managers 41#42GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SUB OUTCOME 18: TRANSFORMED AND CAPABLE HUMAN CAPITAL OUTPUT INDICATOR 18.4 Percentage of payroll spent on 1% skills development programmes increased 2020/21 ANNUAL TARGET On target SYSTEMS AND BUSINESS PROCESSES ACTIONS/INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS The total amount spent on skills programme is R11, 1 million (1%) Challenges: Due to Budget cuts, the team had to prioritize compliance training Corrective measures: Continue to implement compliance training 42 South African NATIONAL PARKS#43GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 18: TRANSFORMED AND CAPABLE HUMAN CAPITAL OUTPUT INDICATOR 2020/21 ANNUAL TARGET 18.5 Number of Impact Assessments Draft Impact Assessment Tool conducted on Strategic Group Training Developed interventions South African NATIONAL PARKS ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS On target Draft Impact assessment tool developed Challenges: None Corrective actions: None 43#44GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 19: EFFICIENT, INNOVATIVE AND BUSINESS PROCESSES SUPPORTIVE OF SANPARKS CORE BUSINESS OUTPUT INDICATOR ACTIONS / INTERVENTIONS 2020/21 ANNUAL TARGET ANNUAL PROGRESS AND ANALYSIS 19.1 Specifications Information Decision developed for Integrated Draft proposal on approach developed On target support tool Draft proposal (project charter) on approach developed Challenges: None Corrective measures: None required 44 South African NATIONAL PARKS#45GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 20: SOUND CORPORATE GOVERNANCE OUTPUT INDICATOR ACTIONS / INTERVENTIONS 2020/21 ANNUAL TARGET ANNUAL PROGRESS AND ANALYSIS 20.1 Percentage Ethics Strategy and policy Ethics Strategy and Policy Approved by Work in progress approved and implemented the Board 95% implementation Ethics Strategy and Policy approved. 92% implemented with one item outstanding Challenges: The Fraud Risk Assessment is a prolonged process, with many consultations necessary. Corrective measures : Complete the Fraud Risk Assessment in 2021/22 financial year 45 South African NATIONAL PARKS#46GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 20: SOUND CORPORATE GOVERNANCE 20.2 OUTPUT INDICATOR ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS 2020/21 ANNUAL TARGET Percentage Execution of the 50% Off target Q4: Internal Audit Plan South African NATIONAL PARKS 33% (2/6) of amended IA plan executed. Challenges: The cancellation of the tender process to appoint an internal audit service provider to capacitate the in-house internal audit function & the delay in the re- tender process impacted on the execution of the internal audit plan. An intervention team to assist with the execution of the amended internal audit plan for 2020/21 was appointed. Corrective measures: A panel of internal auditors has been appointed to ensure the timeous implementation of the internal audit plan for 2021/22 46#47GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND SUB OUTCOME 20: SOUND CORPORATE GOVERNANCE OUTPUT INDICATOR 2020/21 ANNUAL TARGET BUSINESS PROCESSES South African NATIONAL PARKS ACTIONS/INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS TO DATE 20.3 Percentage of corrective actions 50% corrective actions implemented implemented Off target Self Assessments conducted 60% (3/5) of corrective actions implemented Self Assessment not conducted Challenges: Self-assessments have not been conducted due to the late completion of the audit reports in March 2021. Corrective actions: Self assessments to be conducted by the end of the 2021/2022 financial year. 47#48GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 21: EFFECTIVE STAKEHOLDER AND PARTNERSHIP MANAGEMENT OUTPUT INDICATOR 2020/21 ANNUAL TARGET ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS 21.1 Stakeholder and partnership management strategy developed and approved Stakeholder and partnership management strategy developed and approved On target Stakeholder Engagement Plan developed and approved. Challenges: None Corrective actions: None required Assessment Tool for stakeholders and partners On target developed The tool was developed and in use for the mapping of stakeholders. Challenges: None Corrective actions: None 48 South African NATIONAL PARKS#49GOAL 4: PROGRESS AGAINST THE ANNUAL TARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 21: EFFECTIVE STAKEHOLDER AND PARTNERSHIP MANAGEMENT OUTPUT INDICATOR ACTIONS / INTERVENTIONS 2020/21 ANNUAL TARGET ANNUAL PROGRESS AND ANALYSIS 21.2 Number of SANParks Week free visitors to 15 000 national parks Target exceeded. South African NATIONAL PARKS 39 841 people visited national parks during the free SANParks week. Motivation for over achievement: Pro-active media and pre-publicity plan assisted in creating awareness about the national parks week. Challenges: None Corrective Actions: None required. 49#50GOAL 4: PROGRESS AGAINST THE ANNUALTARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 22: APPROPRIATE AND WELL MAINTAINED INFRASTRUCTURE OUTPUT INDICATOR 2020/21 ANNUAL TARGET 22.1 Draft 5 year investment Plan developed Establishment of infrastructure investment committee On target ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS South African NATIONAL PARKS The Infrastructure Investment Committee was established and its first meeting was held in March 2021. Challenges: None Corrective Actions: None required 50#51GOAL 4: PROGRESS AGAINST THE ANNUALTARGETS FOR THE 2020-21 APP OUTCOME GOAL 4: SUSTAINABLE AND TRANSFORMED ORGANISATION THROUGH REVENUE, PEOPLE, SYSTEMS AND BUSINESS PROCESSES SUB OUTCOME 22: APPROPRIATE AND WELL MAINTAINED INFRASTRUCTURE OUTPUT INDICATOR 2020/21 ANNUAL TARGET 22.2 Maintenance and of Infrastructure condition developed Recapitalization Plan towards improvement Condition assessment of Infrastructure 60% On target ACTIONS / INTERVENTIONS ANNUAL PROGRESS AND ANALYSIS Condition assessment of Infrastructure: 63% Challenges: None Corrective actions: None required 51 South African NATIONAL PARKS#52GOAL 4: SUMMARY OF PERFORMANCE South African NATIONAL PARKS % On target ≥95% % Work in progress: 75%-94% % Off Target % No milestone < 75% 72% (13/18) 11% (2/18) 17% (3/18) 0% (0) 11% 17% Status 72% Achieved Work in progress ■ Off Target 52#53Key challenges during the year • Loss of revenue as a result of restrictions brought about by the National Lockdown. While many of the restrictions were relaxed, they were not entirely removed. Some restrictions will continue to impact on tourism performance. Budget cuts which impacted on effective implementation of APP targets. Human Resource capacity constraints - Employees with co-morbidities unable to work, high level of absenteeism due to isolation periods. • Limitations on filling of vacant posts due to financial constraints. South African NATIONAL PARKS 53#54South African NATIONAL PARKS Financial Report for 2020/21 Financial Year 54 54#55Annual Financial Statements South African National Parks Annual Financial Statements for the year ended 31 March 2021 Statement of Financial Performance 2021 Note(s) "000 2020 Restated* '000 South African NATIONAL PARKS Revenue Revenue from exchange transactions Tourism, Retail, Concession and Other Sales fauna and flora - 18 Other operating income 19 834,792 4,753 55,563 2,271,303 16,942 46,862 Interest income 20 49,075 72,974 Total revenue from exchange transactions 944,183 2,408,081 Revenue from non-exchange transactions Transfer revenue Government grants and other funding 21 1,515,235 Donations 22 Total revenue from non-exchange transactions Total revenue 36,850 1,552,085 2,496,268 713,208 46,813 760,021 3,168,102 Expenditure Employee related costs Depreciation and amortisation Finance costs Operating lease payments Repairs and maintenance Loss on disposal of assets Operating expenses Total expenditure (Deficit) surplus for the year 23 24 25 26 (40,389) 27 (163,630) 28 29 (2,574,280) (78,012) (14,621) (862,009) (3,717) (1,210,392) (2,933,282) 234,820 (1,339,605) (146,220) (7,806) (1,328,223) (164,844) (171,361) (15,365) (39,380) 55 55#56Annual Financial Statements • SANParks concluded the 2020/21 financial year under challenging conditions given the global impact of the COVID-19 pandemic on the tourism sector. REVENUE • For the 2020/21 financial year, SANParks generated tourism revenue of R944 million (R2.4 billion - 2019/20). 62% 24% 76% To bridge the funding gap, government assistance was required and thus government grants and donations amounted to R 1.5 billion (R760 million - 2019/20). 38% 2021 2020 Total Revenue from non-exchange transactions Total Revenue from exchange transactions South African NATIONAL PARKS 56#57● Annual Financial Statements The travel ban on intra-provincial leisure travel was lifted in June 2020 while intra- provincial leisure travel was allowed from August 2020; ● This was an unexpected boom for the tourism industry as earlier indications were that hospitality services would only be allowed to resume operations in December 2020. The tentative recovery was disrupted by the advent of the second wave of COVID-19 towards the end of 2020. • Consequently over 100 countries restricted their citizens from travelling to South Africa and in mid-December 2020 the Eastern and Western Cape were declared hotspots. The latter resulted in amongst others, the closure of beaches in these provinces leading to declines in visitor numbers in the coastal national parks. As a result SANParks realised a deficit of R78 million for the 2020/21 financial year. South African NATIONAL PARKS 57#58Annual Financial Statements ● SANParks Total Expenditure decreased by 12% mainly due a decrease in operating costs. The reduction in operating costs was as a result of the impact of lockdown restrictions on operations and also because of cost curtailment measures implemented. Operating expenses 42% 2020/21 EXPENDITURE Employee costs remained a major contributor to total expenditure at 52%. Depreciation and amortisation ● Operating expenses expenses made up 42% of total 6% expenses. South African NATIONAL PARKS Employee related costs 52% 58#59Annual Financial Statements South African National Parks Annual Financial Statements for the year ended 31 March 2021 Statement of Financial Position as at 31 March 2021 Assets Current Assets Inventories Receivables from exchange transactions Receivables from non-exchange transactions Cash and cash equivalents Non-Current Assets Property, plant and equipment Intangible assets Heritage assets Receivables from exchange transactions Total Assets Liabilities Current Liabilities Finance lease obligation Payables from exchange transactions Unspent conditional grants and receipts Provisions Reservation deposits Non-Current Liabilities Finance lease obligation Employee benefit obligation Provisions Total Liabilities Net Assets 2021 Note(s) "000 2020 Restated* "000 South African NATIONAL PARKS 2345 49,952 90,012 51,841 45,347 10.141 2,232,490 2,542,600 2,372,454 2,649,929 6103 7 8 2,087,532 9,852 761,554 2,101,438 19,251 754,759 287,580 291,183 3,146,518 5,518,972 3,166,631 5,816,560 11 49,683 12 228,957 14 739,080 52,327 360,736 877,081 15 48,569 16 392,628 1,458,917 27.901 375,276 1,693,321 11 52,278 13 548,559 90,037 492,373 15 287,580 291,183 888,417 873,593 2,347,334 3,171,638 2,566,914 3,249,646 59#60Annual Financial Statements South African NATIONAL PARKS Current assets are R2.4 billion (R2.6 billion - 2019/2020) and are 10% less than the previous year, mainly due to a decrease in cash balances. SANParks' current assets are more significant than its current liabilities. The acid test ratio is 1.60:1; indicating that SANParks can meet its current obligations using its liquid assets. The current ratio is 1.63:1 compared to 1.56:1 in the previous year. The debtors' collection period has declined from 17 to 61 days. This is mainly due to concessionaires who were not able to meet their obligations due to the impact of lockdowns on their operations; some of the concessionaires applied for a relief which was subsequently granted. Current liabilities are R1,458 billion (R1,693 billion - 2019/2020) and are 16% less than the previous year, mainly due to a decrease in operating costs. Non-current liabilities amount to R888 million (R873 million 2019/2020). The increase is mainly due to the increase in employee benefit obligation. - • It takes SANParks an average of 26 days to settle trade account payables; this complies with the PFMA and National Treasury Regulations, which require invoices to be paid within 30 days. Millions 3,500 3,000 2,500 2,000 1,500 1,000 500 Net Assets (millions) 3,147 2,372 1,459 888 CURRENT ASSETS NON-CURRENT ASSETS CURRENT LIABILITIES NON-CURRENT LIABILITIES 60 50#61Annual Financial Statements South African National Parks Annual Financial Statements for the year ended 31 March 2021 Cash Flow Statement Cash flows from operating activities Receipts Cash receipts from exchange transactions Cash receipts from non-exchange transactions Interest income Payments Employee costs Suppliers Finance costs Net cash flows from operating activities Cash flows from investing activities Purchase of property, plant and equipment Proceeds from sale of property, plant and equipment Purchase of intangible assets Expenditure from conditional grants Cash received from conditional grants Purchase of heritage assets Net cash flows from investing activities Cash flows from financing activities Finance lease payments Finance costs Net cash flows from financing activities Net increase/(decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 2021 Note(s) "000 2020 Restated* "000 outh African ATIONAL PARKS 878,955 1,319,719 47,894 2,246,568 2,320,485 941,570 72,974 3,335,029 (1,223,564) (947,739) (1,348,374) (1,271,317) (33) 33 (2,171,303) 75,265 (2,619,724) 715,305 60\\\00 (141,059) T 8 (1,070) (315,333) 127,740 (6,936) (336,658) (70,778) 2,306 (3.285) (81,664) 214,872 61,451 (40,955) (7.762) (48,717) (61,511) (15,331) (76,842) (310,110) 2,542,600 5 2,232,490 699,914 1,842,686 2,542,600 61#62Annual Financial Statements - SANParks realised cash flows from operating activities of R75 million (R715 million 2019/20). The reduction in operating cash flows was mainly as a result of the decrease in cash receipts from tourism revenue which decreased by R1.4 billion in 2020/21. Cash flows from interest revenue also decreased by R25 million due a decrease in cash balances. Overall cash and cash equivalents decreased by R310 million. 32 62#63SANParks received an unqualified audit opinion for the 2020/21 financial year Auditor General's Report The Auditor-General raised the following key findings: Credible financial Reporting Restatement of corresponding figures, b. Adjustment of material misstatements in the annual performance report Compliance with laws and regulations South African NATIONAL PARKS a. Internal control deficiencies that resulted in failure to comply with laws and regulations, misclassification of expenditure items and inadequate resourcing of the internal audit function. b. Failure to prevent Irregular expenditure amounting to R43,3 million. c. Financial statements that did not comply with the requirements of the reporting framework as required by section 55(1)(a) of the PFMA. 63#6464 ... Measures to address audit findings Compliance with laws and regulations In the year under review, SANParks incurred irregular expenditure of R43.3 million which is comprised of the following: The Insurance contract - a contract was not concluded timeously. As a result of the delay, SANParks incurred irregular expenditure. Disciplinary action was taken against the official responsible for the delay and the outcome of the process will be reported to National Treasury. The Tourism Reservation system - this relates to a legacy system which is used to make bookings for our guests. The contract was renewed without following proper SCM processes. The official responsible has left the organisation. SANParks has since procured a new system and a contract is being finalized with the service provider. The remaining 16% relates to various breaches of SCM processes which are still being investigated. Once complete a report will be tabled to the new Board and consequence management will be implemented to ensure that all employees responsible for incurring irregular expenditure are held to account. Irregular expenditure 16% South African NATIONAL PARKS Insurance contract System Contract 22% 62% other transactions#65Measures to address audit findings South African NATIONAL PARKS Compliance with laws and regulations Management undertook determination tests and analysis of the alleged irregular expenditure to establish facts and to determine if the organization incurred any losses relating to the transactions as required by paragraph 19 of the Irregular Expenditure Framework. Most of the transactions did not result in financial loss to SANParks, however as stated above, consequence management will still be implemented against officials responsible for incurring irregular expenditure. SANParks has since appointed a Loss Control Manager to strengthen internal management capacity to proactively deal irregular expenditure. All these measures has resulted in significant reduction of historical irregular expenditure over the years. Internal contract management capacity is also being strengthened to prevent irregular expenditure. The new SANParks Board will also strengthen its oversight mechanisms to prevent re-occurrence and to ensure that consequence management is effectively executed. 65#66Measures to address audit findings South African NATIONAL PARKS Credible Financial and Performance Reporting An audit action plan has been developed. The audit action plan aims to implement corrective measures to address internal control deficiencies identified by the Auditor General. Management will also strengthen internal management reviews and oversight mechanisms to detect and correct errors in financial statements and the Annual Performance report. With regard to resourcing of the Internal Audit Function, the following interventions have since been implemented: A Panel of Internal Auditors has been appointed to strengthen internal audit capacity. A Chief Audit Executive has been appointed as from 1 November 2021 to strengthen Management oversight, governance and internal control environment in general. 99 66#67Audit Improvement plan South African NATIONAL PARKS Finding Expenditure management Failure to prevent irregular expenditure in terms of section 51(1)(b)(ii) of PFMA During the audit of the population of irregular expenditure it was noted that in the current year the entity identified and disclosed irregular expenditure of R 63 656 000. Additional irregular expenditure of R 4 906 600 was identified by the auditors. It was noted that management instituted controls during the current financial year in identifying additional irregular expenditure that relates to prior years. The effort by management has resulted in an increase in disclosure of R 63 656 000 compared to the prior year. The above mentioned matters constitutes non- compliance with section 51(1)(b)(ii) to the amount of R 68 562 600 as irregular expenditure was not prevented in accordance to to the legislative requirement. The matter is material and will be reported on in the audit report. Status Resolved Action Plan Due Date Communication to sent to all users to 31 January 2022 inform them that all Irregular Expenditure should be reported to the Loss Control manager. • • Review and update standard operating procedures for all elements of supply chain management. Implement demand management Address the capacity issue within supply chain management Enforce contract management#68Audit Improvement plan Finding Status Incorrect classification of operating Resolved expenditure as repairs and maintenance expenditure During the audit, it was noted that transactions were incorrectly classified and recorded as repairs and maintenance expenditure, instead of operating expenditure. This results in an overstatement of repairs and maintenance expenses and an understatement of other operating expenses. South African RKS Due Date Action Plan Training to be provided to end users on financial 31 January 2022 codes to ensure that end users use the correct financial codes when completing requisitions. • Reviewing the source document design of requisitions to include review checks for the correct 31 January 2022 financial code on requisitions. Purchase orders(PO) should also include review checks to ensure that the person signing the PO must check that transaction. is allocated on the correct fin code. The capturer must also check that information is captured in the correct fin code. The person posting the batch must also check and ensure that information is captured in the correct fin code. Review of fin codes and rename them. General Ledger must be made available to all Regional Finance Manager to check on a monthly basis. 31 January 2022 . Educate users to discuss with the budgeting office where they can shift funds to make funds available within the budgeting rules instead of using incorrect 2021 fin codes. 30 November#69Audit Improvement plan Finding Expenditure recorded in an incorrect financial period During the audit of expenditure, it was identified that expenditure which had occurred in prior years was recorded in the current year expenditure for the year ended 31 March 2021. This has resulted in the cumulative overstatement expenditure in the current financial year of the (2020/21) and understatement of the expenditure in previous financial years. Furthermore, this is non-compliance with GRAP 1 paragraph 31. Status Resolved • South African NATIONAL PARKS Action Plan Due Date Invoices will be captured in the Monthly open period however each park will keep a monthly register of all invoices received late. The register will be submitted to head office on a monthly basis. Manager: Financial Administration will consolidate the registers. Materiality of all late invoices will be assessed during preparation of interim AFS and final AFS and the amounts to be adjusted accordingly. 30 November 2021 &31 March 2022 General Ledger to be reviewed by Monthly all Regional Finance Managers on a monthly basis. 69#70Consequence Management: Irregular Expenditure South African NATIONAL PARKS No of tenders 1 Total value contract R26 981 443.69 Findings A contract was not concluded timeously. As a result of the SANParks delay, irregular expenditure No loss suffered incurred SANParks received value for money due to the fact that the bid was awarded to the lowest bidder who had met the criteria Recommended Action Implementation of the recommendations with regard to improvements to SCM procedures. Apply to National Treasury for condonation for the irregular expenditure. Consequence Management • A final written warning was issued to the responsible official (General Manager Level) and same will be submitted to National Treasury as part of the condonation application. • A contract/service new provider has been finalized and is now in use. 70 70#71No of tenders 1 Total contract value R9,492,264.95 Consequence Management: Irregular Expenditure Findings • This relates to a legacy system which is used to make bookings • for our guests. • The . contract was renewed without following proper SCM processes. No loss suffered . SANParks received value for money. . Recommended Action the Implementation of recommendations with regard to improvements to SCM procedures. Apply to National Treasury for condonation of irregular expenditure incurred. . . Consequence Management The responsible official (Executive Level) resigned before consequence be management could instituted. A new service provider has since been appointed by SANParks. 71 South African NATIONAL PARKS#72Consequence Management: Irregular Expenditure No of tenders 27 Total contract value R6 885 799.65 • Findings The highest cause of irregular expenditure was the continuous use of expired contracts. i.e. month to month contract and/or unauthorized extensions. contract Non-tax compliant suppliers were used in 3 instances. • Non-compliance in sourcing 3 quotations. • Goods were procured without purchase orders being created. No losses have been suffered as services are still being provided. Recommended Action Finalization of determination tests and investigations in order to issue outcome letters and institute consequence management. Apply to National Treasury for condonation for the the irregular expenditure incurred. · Consequence Management All determination tests have been concluded and will be presented to the Loss Control Committee. • The matters are still investigated following which consequence management will immediately be instituted. • The Board is awaiting final report on this matter. 72 South African NATIONAL PARKS#73Conclusion South African NATIONAL PARKS Financial Sustainability With regard to the deficit for the year amounting to R78 million: The easing of travel restrictions and the movement to Level 1 has had a positive impact on SANParks revenue. In addition, the roll-out of the vaccination programme is gaining sufficient traction and SANParks is confident that this will boost domestic and international tourism. The current year to date revenue generated from tourism activities amounts to R746 million. This indicates a positive impact on revenue compared to the previous year. Management is also exploring various strategies to improve revenue (Resource Mobilisation, Green Bonds, Partnerships with private sector). 73#74List of acronyms AENP APP BBBEE CEO COVID 19 DFFE EM Es EPWP EXCO FTE FRA GEF GLTFCA GPS GRAP GRNP IC KNP METT MPA MTEF MTSF NPAES NRMP PES PDIS PLWD QSES SANDF SANParks SAPS SAT SET SMMEs STO WEP WIMS WWW-SA Addo Elephant National Park Annual Performance Plan Broad Based Black Economic Empowerment Chief Executive Officer CORONA VIRUS DISEASE 2019 Department of Forestry, Fisheries and the Environment Exempt Micro Enterprises Extended Public Works Programme Executive Committee Full-Time Equivalents Fraud Risk Assessment Global Environment Fund Greater Limpopo Transfrontier Conservation Area Global Positioning System Generally Recognised Accounting Practices Garden Route National Park G Investment Committee Kruger National Park Management Effectiveness Tracking Tool Marine Protected Area Medium-Term Expenditure Framework Medium-Term Strategic Framework National Protected Areas Expansion Strategy Natural Resource Management programme Presidential Employment Stimulus Fund Previously Disadvantaged Individuals People Living with Disabilities Qualifying Small Enterprises South African Defence Force South African National Parks South African Police Service South African Tourism Socio-Economic Transformation Small, Medium and Micro Enterprise Standard Tour Operators Wildlife Economy Programme Water Information Management System World Wildlife Fund South Africa South African NATIONAL PARKS 74#75THANK YOU