Transcript Target achieved - Parliamentary Monitoring Group

2008/9 MLRF Annual Report
Presentation to Portfolio Committee
10 November 2009
Mandate Related Objectives
GOAL
• To promote the conservation and sustainable use of marine
and coastal resources.
AIM
• To manage the development, sustainable use and orderly
exploitation of marine and coastal resources.
• To protect the integrity and quality of marine and coastal
ecosystems.
2
Functionality Related Objectives
• Enhance Service Delivery and Systems
Improvement.
• Promote Equitable and Sound Corporate and
Cooperative Governance.
• Enhancement of Reputation and Collective
Ownership of the Sectors.
3
Equitable & Sustainable use of natural
resources
Target
Report
Subsistence & small scale fisheries policy
published.
 A second Draft Policy was gazetted on 12
December 2008.
Target not achieved due to a range of
challenges. According to the Equality Court
ruling of November 2008, the Policy must be
finalized & approved by 31 July 2009
 Public Participation meetings were held in
January , fishers to submit their comments by
March 2009.
Declining Fish Stocks
 Lack of consensus on the content of the
Policy.
 Request to include WCRL & Traditional
Linefish subject to current court challenges.
4
Equitable & Sustainable use of natural
resources
Target
Report
Finalized policy for allocation of BBWW &
WSCD rights.
BBWW and WSCD policies approved &
gazette notice published.
Target achieved
Performance review for 40% commercial
fishery sector.
Service provider appointed.
Project Plan finalized.
Target has not been met but process is well
underway with new target set:
70% of commercial fisheries will have had
performance reviewed by cluster by
31/03/2010
Cluster workshop held in February 2009.
 Review documents & instruments, KPIs
drafted.
 Tight time frames/complexity
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Equitable & Sustainable use of natural
resources
Target
Report
Finalize policy on commercial rights transfer
and application process.
Minister approved the final transfer policy
with amendments.
Target achieved
 Implementation will commence in 2009/10
financial year.
Delays in finalization of policy
National Plan of Action for Seabirds and
Sharks finalized.
NPOA for Seabirds finalized.
Draft NPOA for Sharks in place.
Target partially achieved. A new target date for
NPOA for sharks set for December 2009.
6
Build a sound scientific base for effective
management of marine & coastal resources
Target
Report
Research on catch and or effort limit for 21
fishery sectors.
All survey & stock assessments have been
completed.
Target achieved
 All TAC/TAE recommendations completed in
21 fishery sector.
Research on optimal non-consumptive use of 3 Great white shark population status
resources.
investigated.
Target achieved
 Tagging experiment on turtles .
 Research information on humpback whales
analyzed.
7
Rebuild depleted fish stock
Target
Report
Strategy for hake & abalone in respect of
research management & compliance finalized
& implementation strategy initiated.
Hake and Abalone Strategy being
implemented.
 All surveys completed including abalone
although fishery is closed.
Target achieved but it should be noted that this
is a 5 year strategic priority and will be in 2009
- 2014 Strategic Plan & targets.
 20 hour coverage maintained & tonnage of
poached abalone reduced from 64 to 43 in
2009.
 Arrests increased by 194% from 185 to 514.
Funds for Hake research limited to stock
assessment surveys.
 Lack of sophisticated surveillance
equipment to monitor abalone poaching.
8
Compliance with marine and coastal legislation
Target
Report
30% of landings in 3 key fishery sectors
(WCRL; Hake LL & Pelagics) monitored.
 100% monitoring of landings in pelagic,
hake long line, SCRL, WCRL & 30% in deep
sea trawl & Tuna.
Target achieved or met and exceeded
 Vehicles, slipways, FPEs & restaurants
inspected.
 Cooperative initiatives with Organized crime
Intelligence (SAPS)
9
Feasibility of new fisheries
Target
Report
Feasibility assessment of 2 fisheries.
The Octopus fishery was re-launched.
Target achieved but department is not able to
pronounce on the viability of Natal deep water
rock lobster.
 Feasibility study on Deep Water Natal rock
lobster completed.
Targeted stakeholders lack the capacity &
resources to invest in octopus fishery.
 Experiments were conducted but the
department is not able to pronounce on
sustainability of fisheries.
10
Enabling environment for growth & development of
marine aquaculture.
Target
Report
Research into 3 species and 2 pilot projects
launched.
Feed experiments completed for Silver Kob
Target achieved
Research report completed on reproductive
cycle of scallops
Research initiated on gonad enhancement of
sea urchins.
Finalized Marine Aquaculture policy and
implementation plan.
 Development of Ranching guidelines
completed.
Recommendations made to SRPP on
biological feasibility of pilot projects.
11
Conserve and mitigate threats to biodiversity
Target
Report
Declare 1 MPA & 80% management capacity
in place for declare MPAs.
Stillbaai MPA declared in Oct 2008
Target achieved
Bill promulgated and draft implementation
framework developed.
 Now 20 Declared MPAs:
•12 MPAs with contracts & workplans by
Provincial agencies
•6 MPAs managed by SANParks (draft
contracts).
•1 managed by MCM
• managed by Cape Town City.
ICM Bill was signed by President (Act No.24
of 2008).
Target achieved
Marine & Coastal Climate change variables
identified.
 Bi-annual State of the Ocean Reports
produced.
Target achieved
NPOA (for land-based sources of marine
pollution) identified climate change variables
12
International multilateral & bilateral marine and
fisheries agreements
Target
Report
Review & develop a co-ordination strategy for
international engagements
Review of Marine & fisheries International
obligations conducted.
Target achieved
 SA ratified SEAFO
 CCAMLR and ICCAT attended & outcomes
implemented.
Maintain annual engagements with at least 2
regional &/or sub regional organisations.
Participation in BCC activities (science &
management)
Target achieved
 Participation in ASCLME, ACEP & SWIOFP
workplans development.
 1 successful SADC patrol conducted in
March 2009 - Mozambique, Tanzania & Kenya
13
Increased marine & coastal economic
opportunities
Target
Report
Fishing Harbours Feasibility study
recommendations adopted & short term
recommendations adopted.
Feasibility study completed
 Technical Task Team appointed to explore
implementation of study recommendations.
Target largely achieved but implementation will
be a long term project
Policies finalized and access provided as per
policy objectives (Large pelagics; Performance
Reviews and Subsistence/small scale fisheries
policy).
Large Pelagics Policy finalised.
Target achieved
 Subsistence/small-scale policy delayed.
Service Provider appointed for Performance
Reviews & criteria/KPIs developed.
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FINANCIAL PERFORMANCE OF
THE MLRF
2008/09
GENERAL OVERVIEW
 Auditor-General expressed an unqualified audit opinion.
Year 05/06
20 Qualifications =
R247m misstated
(Disclaimed opinion)
Year 06/07
Year 07/08
Year 08/09
7 Qualifications = 0 Qualifications 0 Qualifications
R26m misstated (Unqualified (Unqualified opinion)
opinion)
(Qualified
opinion)
 What does it mean?
The 2008/2009 annual financial statements present fairly, in all
material respects, the financial position of the MLRF as at 31 March
2009 and its financial performance and cash flows for the year.
 No negative key governance responsibilities reported.
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STATEMENT OF FINANCIAL
POSITION
ASSETS
Plant & Equipment
• Increased by 96% over the prior year
• Additions of R17 million in 2008/09
• Excludes vessels funded by government grants
Intangible assets
• Computer software
• Additions of R785 000 during the current year
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STATEMENT OF FINANCIAL
POSITION (continued)
ASSETS
Inventory
 Confiscated abalone and shark fins on hand.
 Include samples and unprocessed stock in MCM stores
as well as at the processors.
Trade and other receivables
 Value of debtors at year-end.
 Decreased by 56% over prior year.
 Improved debtors management system and more
aggressive debt collection.
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STATEMENT OF FINANCIAL
POSITION (continued)
LIABILITIES
 Total liabilities of R62.4 million.
 12.6% decrease over the prior year.
 Consist of:
R’000
Deferred income
13 901
Donor funds
13 002
Trade and other payables
35 526
 Increased skilled capacity in accounts payable section.
 Improved processes and internal control environment.
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STATEMENT OF FINANCIAL
PERFORMANCE
• Total revenue of R337.8 million.
• Total expenditure of R312.1 million .
• Net surplus of R25.7 million.
• Prior year net surplus of R43.3 million.
• 40.6% decrease in net surplus over the prior year.
• 22% increase in total expenditure.
• 12.9% increase in total revenue.
• Obtained approval from National Treasury - section 53(3) - to retain
the accumulated surplus (for current & future commitments).
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STATEMENT OF FINANCIAL
PERFORMANCE (continued)
REVENUE
•
•
•
•
Increase of 12.9% in total revenue.
Operating revenue decreased by 11%.
Reduced income from levies and chartering of vessels.
Result of decrease in TAC and less chartering of
vessels.
• Other income increased by 31.2%
o Grant for VOC increased by 85%
o Confiscated Fish & fish products (mainly abalone) = 6.5% of total
2008/09 revenue budget
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STATEMENT OF FINANCIAL
PERFORMANCE (continued)
EXPENDITURE
• 22% increase in expenditure over the prior year
• Mainly due to increase in transportation costs and other
operational costs.
• Major expenditure items included in other operational
costs are:
R’000
Audit fees
1 497
Confiscation expenses
5 216
Consultancy and outsourced services
Legal services
Vessel operating costs
50 444
3 047
154 859
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STATEMENT OF FINANCIAL
PERFORMANCE (continued)
EXPENDITURE (continued)
Transportation costs
• Increased by 31.3%.
• Consist of staff travelling of R12.9 million and the use of
GG vehicles of R14.3 million.
• Increase due to increase in fuel price and mileage.
• Additional work done by MCM officials, i.e.
investigations, surveillance, coastal management and
research.
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STATEMENT OF FINANCIAL
PERFORMANCE (continued)
EXPENDITURE (continued)
Consultancy and outsourced services:
 7% increase over the prior year.
 Consultants provide advisory services to the MLRF.
 Total expenditure of R5.4 million for consultants.
 Main consultants were:
1.Ernst & Young: Harbour Feasibility Study
2.Resolve Group: Fisheries Performance Reviews
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STATEMENT OF FINANCIAL
PERFORMANCE (continued)
EXPENDITURE (continued)
• Outsourced services utilised in areas where there is no in-house
capacity.
• Main suppliers of outsourced services were:
Ingwane Consulting and
Anchor Environmental
Consultants
Observers for Ship Board Scientific
Observer Programme
Nosipho Marine Services
and SAB&T
Monitor commercial fish landings
Sheltam Aviation
Aerial surveillance for oil pollution
SITA
IT services
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NOTES TO THE ANNUAL FINANCIAL
STATEMENTS
Note 24: Fruitless and wasteful expenditure
• Interest of R2862 paid due to late payment of a supplier
– approval obtained that costs incurred were
irrecoverable.
• Fully reported and investigated by the Accounting
Authority as required by section 51(1)(b)(ii) of the PFMA.
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FINANCIAL MANAGEMENT OF THE
MLRF
• All key governance responsibilities were met in 2008/09.
• This includes:
1. No significant deficiencies in the design and implementation
of internal controls relating to financial and risk management
and compliance with applicable laws and regulations.
2. Appropriate information systems.
3. Clear trail of supporting documentation that is easily available.
4. High quality annual financial statements.
5. Effective Audit committee.
6. Documented fraud prevention plan.
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THANK YOU
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