Transcript Overview of Mandate, Functions, Concepts and Financial Environment

Department of Environmental
Affairs
Overview of mandate, functions,
concepts and financial environment
….Ms N Ngcaba
Department of Environmental Affairs Foundational
Mandate = Sustainable Development
Constitutional mandate (Sec 24) – 3 SD elements:
• Social - environment – not harmful to health or wellbeing; “…while promoting justifiable … social
development.
• Environmental – protect the environment, for the benefit
of present and future generations, through legislative /
other measures that – prevent pollution and ecological degradation;
– promote conservation; and
• Economic – secure ecologically sustainable
development and use of natural resources while
promoting justifiable economic … development.”
Environmental Affairs Mandate
• Environmental Quality and Protection:
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impact management,
Pollution and waste management,
air and atmospheric quality,
Climate Change
Meteorological and related Services.
• Biodiversity and Conservation:
– Conservation of land and sea scapes
– Protected areas
– Biodiversity management
• Marine and coastal management
– Marine resource management
– Monitoring control & surveillence
– research
Environmental Quality and Protection
Impact Management:Prevent and manage potentially negative development impact on the
environment through amongst others:• Development and implementation of policy and legislative framework
for environmental impact management,
• Processing of Environmental Impact Assessments (EIA’s),
• Building environmental impact management capacity,
• Ensure compliance to conditions of EIA records of decisions (RoD)
and prevent unauthorized development (role of Environmental
Management Inspectorate or “green scorpion” – the environmental
police).
Environmental Impact Assessment (EIA) – An assessment of suitability of a development project in a
particular natural environment.
Record of decision (RoD) – Certification of approval of a development by an approval authority
(Minister) with/without condition.
Environmental Quality Management
Pollution and Waste Management:
• Development and implementation of policy, legislation, norms and
standards for pollution and waste management,
• Promote reduction, reuse and recycling (through Buyisa-e-bag) of
waste
• Processing of applications for development of waste management
infrastructure (this is now linked to impact management processes to
avoid duplication),
• Develop capacity for pollution and waste management,
• Promote the implementation of polluter pays principle
Pollution – contamination of an environment (land, water and air) – e.g. use of pesticides, mine waste,
Waste – by product of consumption process that may no longer be used in the same production chain.
Reduce, reuse and recycle … are commonly applied global principles on waste management – cradle
to grave,
Environmental QualityManagement
Air and atmospheric quality:
Improve state of ambient air quality:
• Development and implementation of policy, legislation, norms and
standards for air quality;
• Ambient Air quality management capacity development,
• Monitoring of ambient air quality and monitoring infrastructure
development support,
• Ozone layer protection,
• Ensure adherence to ambient air quality standards.
Ambient Air quality – Air above the earth surface meeting specified standards/not polluted (by gases
emitted from industrial or household processes beyond certain limits)
Ozone layer - is a layer of gas in the upper atmosphere which protects humans and other living things
from the harmful ultraviolet (UV-B) rays of the sun.
Environmental Quality and protection
Climate Change
• Climate change mitigation and adaptation
policy development and research
coordination.
Climate Change – refers to a long-term change in weather patterns over durations of time ranging
from decades to millions of years due to increases in concentrations of greenhouse gases, etc.
Mitigations – To take action that will reduce greenhouse gas emissions in the atmosphere, acidification
of the oceans resulting in sea-level rise phenomenon, etc
Adaptation – finding ways to be able to survive the occurrence of natural disasters linked to variations
in climatic conditions
Meteorological and related Services (South African
Weather Services - SAWS):
• Timely dissemination of the weather forecast information
– linked to prevention of natural disasters and also to
allow for long and short term planning (e.g. agriculture
and aviation safety),
• Ensure accuracy of the weather forecast information,
• Ensure good state of weather forecasting infrastructure
(radars, lighting detectors, software etc), maintanance
Meteorological – relates to the study of the changes in temperature, air pressure, moisture, and wind
direction in the atmosphere.
Aviation - refers to activities involving man-made flying devices (aircraft)
Biodiversity and Conservation
Promote conservation and sustainable utilization of natural
resources:• Conservation of land and sea scapes: Declaration of National terrestrial
and marine protected areas to conserve ecosystems,
• Protected areas: Management of National protected areas through
South African National Parks – SANParks and iSimangaliso Wetland
Park Authority) – 23 National Parks and iSimangaliso Wetland Park (1st
World Heritage Site in South Africa),
• Biodiversity management: Mitigation of threats to biodiversity,
• Build a sound scientific base for effective management of natural
resources in partnership with South African Biodiversity Institute (SANBI)
which also manages botanical gardens (9 gardens)., incl a network of
scientific authorities falling under DST, (CSIR, NRF, Universities, etc)
Biodiversity – describes the variety of life in an area, including the number of different species, the
genetic wealth within each species, ...plant life, animal life, ocean life,…
Conservation – protection and preservation of the ecological resources for future generations
Terrestrial – in land
Marine – in ocean
Marine and Coastal Management – Marine living
Resources Fund (MLRF)
Promote conservation and sustainable
utilization of marine and coastal
resources:– Allocation of fishing rights,
– Marine research to ensure resources
sustainability,
– Prevention of illegal access to resources,
– Maintain good quality of marine and coastal
environment.(preventing pollution of ocean
environment)
FINANCES
Topics For Discussion
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State of budgeting environment per MTEF guidelines
Strategic Risks identified per MTEF
Review of baseline adjustments
Prior years & MTEF Expenditure trends
Projected own Revenue generation & constraints
Challenges identified in MTEF allocations and projected
budget constraints
• Transfers to Public Entities & Audit Opinions
State of Budgeting Environment
• Global recession and weaker economic conditions
Required responses per National Treasury Guide.
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Rigorous baseline assessment
Detailed costing of policy proposals at activity level
Value for money assessment
Reprioritisation and Alternative funding mechanisms for
infrastructure project e.g. Public Private Partnership
(PPP)
Scenario and risk analysis
Coordinated planning with public entities
Implementation readiness
Identification of new outputs and development of
Monitoring & Evaluations plans.
Strategic Risks Identified
Contributory Risk Description
Factor/s
Shrinking
Purse &
Global
recession
-Anticipated further Financial constraints
-Reduction of MTEF allocations by National
Treasury
-Possible decrease in Donor Funds
-Insufficient funding of establishment
Restructuring
and split
•Possible In-Equitable allocation of resources
Review of Baseline Allocation Trends
2009/10
‘000
Baseline
Requested
Initial allocation
Total allocated
Further cuts Jan 09
Final allocation
% Baseline Increase
2010/11
‘000
2011/12
‘000
3 446 860
3 762 673
3 614 173
450 195
621 000
1 042 000
68 340
164 393
581 932
3 515 200
3 927 066
4 196 105
( 34 417)
(42 990)
(48 641)
3 480 783
3 884 076
4 147 464
3.2%
14.8%
.01%
Prior Years Expenditure Patterns
Programme
Audited Outcome (Unqualified)
2006/2007
R’000
2007/2008
R’000
2008/2009
R’000
1. Administration
167 276
193 120
204 358
2. Environmental Quality
and Protection
199 232
241 503
253 508
3. Marine and Coastal
Management
324 048
349 298
434 325
4. Tourism
547 248
612 477
693 229
5. Biodiversity and
Conservation
279 579
359 833
399 309
6. Sector Services and
International Relations
542 281
1 032 526
1 214 149
2 059 664
2 788 757
3 198 878
Total
An average annual spend of 99.8% was achieved
Economic Classification- MTEF Trends
Economical Classification
Financial year
Audited
05/06
R’000
06/07
R’000
07/08
R’000
08/09
R’000
Compensation of Employees
209 664
262 506
342 195
396 747
Goods and Services
302 077
281 296
321 723
357 014
Transfers: Departmental
Agencies and Accounts
806 558
1 042 176
1 373 701
1 567 304
6 000
12 421
0
9 000
12 595
44 782
88 152
100 906
382 656
406 584
652 638
759 488
56 136
9 899
10 348
8 419
1 775 686
2 059 664
2 788 757
3 198 878
Transfers: Foreign Governments
Transfers: Non Profit
Organisations
Transfers: Households
Capital Assets
Total
Economic Classification- MTEF Trends
Economical Classification
Financial year
Medium Term Expenditure Estimate
2009/2010
R’000
2010/2011
R’000
2011/2012
R’000
2012/2013
R’000
Compensation of Employees
432 810
477 047
514 448
540 170
Goods and Services
383 152
439 712
525 919
553 674
1 638 448
1 538 809
1 610 746
1 691 283
9 000
9 000
9 000
9 000
90 971
64 874
44 874
46 068
Transfers: Households
767 647
871 746
924 051
970 305
Capital Assets
158 755
482 888
518 426
535 421
3 480 783
3 884 076
4 147 464
4 345 921
Transfers: Departmental
Agencies and Accounts
Transfers: Foreign Governments
Transfers: Non Profit
Organisations
Total
Donor Funds Trends
Donor/Project
Programmes & Projects
Audited Outcome
2005/2006
R’000
(Unqualified)
2006/2007
R’000
2007/2008
R’000
2008/2009
R’000
Norway: Environmental Cooperation
-
-
6 649
11 151
Norway: Marine Fisheries Cooperation
-
7 651
14 710
15 447
236
439
663
306
-
-
-
6 627
Denmark: Environmental Capacity
Building
3 599
1 237
2 745
133
Denmark: National Waste Management
7 955
10 000
1 300
134
-
-
11 790
19 327
Denmark: Air Quality Management
Denmark: Urban Environmental
Programme
World Bank: African Stockpile
Total
3 183
26 067
36 981
Donor Funds Trends
Donor/Project
Programmes & Projects
Norway: Environmental Cooperation
Medium Term Expenditure Estimate
2009/2010
R’000
2010/2011
R’000
2011/2012
R’000
2012/2013
R’000
12 625
10 917
6 097
-
8 834
7 821
-
-
630
-
-
-
2 156
3 385
4 326
2 784
Denmark: Environmental Capacity
Building
-
-
-
-
Denmark: National Waste
Management
-
-
-
-
738
1 576
2 754
1 563
24 983
23 699
13 177
4 347
Norway: Marine Fisheries
Cooperation
Denmark: Air Quality Management
Denmark: Urban Environmental
Programme
World Bank: African Stockpile
Total
Challenges Identified
Challenge
Implications
99.8 % expenditure trends
Lean margin of safety - for commitments , accruals
Possible future decline in
donor funds (from R37
million 2008/9 to R4 million
2012/13)
including unforeseeable & unavoidable expenses
Future Pressure on MTEF, negative impact on service
delivery including delays in projects.
Avoidance of unauthorised expenditure-reduced
Operational and Capital
expenditure (OPex & CAPex
) plans – Strategic
expenditure (Stratex)
implications
Continuous reprioritisation & budget trade offs, &
rationalisation – with possible audit implications
Less flexibility in funding for multi year projects and
contracts.
Funding of new programs,
projects, structure changes
Possible establishment short funding, & increase in
vacancy rate -capacity constraints
Internal & external coordination of projects
Specialized service delivery consultants - possible
budget shortfalls
Audit opinion integrity
Possible Audit Exposures in the 99.8% expenditure
trends and Performance Audit Exposure
Expenditure Trends over the MTEF period
5 000 000
4 500 000
4 000 000
R'000
3 500 000
3 000 000
2 500 000
2 000 000
1 500 000
1 000 000
500 000
0
2005/06
2006/07
2007/08
2008/09
2009/10
Years
2010/11
2011/12
2012/13
Increase in Expenditure Trends – overall Department
•
Average Percentage increase of 21,8% - ( from R1,8 billion to R3,2
billion) years 2005/6-2008/9
•
Infrastructure Development in:
National Parks, Botanical Gardens, Weather Service, replacement of
the supply and research vessels for the Antarctica and the Marion and
Gough islands.
•
Poverty relief projects
•
Increase in Environment, Conservation & Marine mandates
•
Transfers and subsidies to departmental agencies
•
Increases to the baseline accounts for the following:
- Establishment increase, operations, and accommodation, Inflation
adjustments, baseline adjustments, Climate Change research, policy
development and implementation and Buyisa-e-Bag (S21 implementing
plastic bag regulations)
Increase in Expenditure Trends per Programme
continued:
Programme 2: Air Quality & Protection
Expenditure increase from R185,287 million in
2005/2006 to R363,395 million in 2012/2013
Programme expanded from a regulatory phase to
an implementation phase which includes the
following:
• Regulatory Services
• Pollution and Waste Management
• Environmental Impact Management
• Air Quality Management and Climate Change
Expenditure Trends continued:
Programme 3 Marine & Coastal Management
Increase from R262,428 million in 2005/2006 to R1 027,982 million in 2012/2013
Increase due to provision for the replacement of the polar vessel which will
commence during the 2009/10 financial year
Programme 5: Biodiversity and Conservation
Increase from R283,195 million in 2005/2006 to R487,137 million in 2012/2013
for establishment of the Transfontier (“boundless” protected areas) conservation
initiative
•
Transfer Payments to the following Public Entities:
South African National Parks, South African National Biodiversity Institute and
iSimangaliso Wetland Park Authority
Programme 6: Sector Services & International Relations
Expenditure increase from R473,321 million in 2005/2006 to R1 345,701 million
in 2012/2013 for Poverty relief programmes linked to Expanded Public Works
Programme (EPWP) and Infrastructure Programme.
Transfers: Public Entities & Audit Opinions
Public Entity
Audited Outcome
2005/2006
R’000
(Unqualified) (Qualified)
2006/2007
R’000
2007/2008
R’000
2008/2009
R’000
South African Weather Service
103 690
114 393
180 112
159 916
South African Tourism
362 733
465 187
517 556
588 135
93 322
163 057
147 812
195 351
143 833
187 440
364 356
434 869
South African National Biodiversity
Institute
90 369
94 972
123 196
138 831
iSimangaliso Wetland Park Authority
12 111
16 627
39 169
48 701
806 058
1 041 676
1 372 201
1 565 803
Marine Living Resources Fund
South African National Parks
Total
Transfers: Public Entities & Audit Opinions
Public Entity
Medium Term Expenditure Estimate
2009/2010
R’000
2010/2011
R’000
2011/2012
R’000
2012/2013
R’000
South African Weather Service
185 744
230 691
148 571
145 287
South African Tourism
655 669
685 519
729 750
766 238
Marine Living Resources Fund
205 005
210 244
218 306
229 222
South African National Parks
391 231
213 973
286 970
300 469
South African National
Biodiversity Institute
145 824
150 577
158 432
163 854
50 736
44 365
64 347
67 314
1 634 209
1 535 369
1 606 376
1 672 384
iSimangaliso Wetland Park
Authority
Total
Way forward including risk mitigation
Continued anticipation of possible short funding in outer years
Application of efficiency models across all expenditure items.
Re-statement or re- costing of baseline
• Targeting costs that carry thru MTEF for efficiency models e.g. short term contracts,
projects, maintenance costs etc.
Alternate Funding Initiatives & Increase in Revenue
• Exploring more co-funding mechanisms for external projects- where possible.
Timing of Infrastructure and Capital Projects Expenditure:• Providing for possible cost increases in existing project costs for the current year.
• Consider delaying new projects -in the absence implementation readiness and budget.
Maintaining clean audits (Financial & Performance)
• Avoiding of unauthorised expenditure or budget overrun thru more tightening of budget
management and due consideration for inflationary costs.
• Maintaining the balance between MTEF, Strategic Plan deliverables for the
performance audit opinion due in (2010).
THANK YOU