EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 East London | 5213 | East Street Oxford 17-25 London | 5213 | East | Southernwood 11235 London | PO Box East Africa | South Cape Eastern 0881 492 (0) 43 +27 [email protected] .co.za visiteasterncape www. PR362/2020 978-0-621-48907-1 ISBN: Cover image: Front River Storms Africa South Cape, Eastern Hole in the Wall, Wild Coast Eastern Cape, South Africa

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Contents

PART A PART B PART C GENERAL PERFORMANCE GOVERNANCE EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE INFORMATION INFORMATION 93 5 31

1 .GENERAL...... INFORMATION 7 1 AUDITOR’S REPORT: 1 .INTRODUCTION...... 95 PREDETERMINED .OBJE...... CTIVES 33 2 .BOARD...... MEMBERS 8 2 .PORTFO...... LIO COMMITTEES 95 2 .SITUA...... TIONAL ANALYSIS 34 3 LIST OF ABBREVIATIONS 3 .EXECUTIVE...... AUTHORITY 95 .AND...... ACRONYMS 10 3 PERFORMANCE INFORMATION 4 THE ACCOUNTING AUTHORITY BY PROGRAMME 4 FOREWORD BY THE ...... 58 ./...... BOARD 95 .CHAIRPERSO...... N 12 4 .REVENUE...... COLLECTION 90 5 .RISK...... MANAGEMENT 98 5 CHIEF EXECUTIVE OFFICER’S .OVERVIE...... W 14 6 .INTERNAL...... CONTROL UNIT 98 6 STATEMENT OF 7 INTERNAL AUDIT AND AUDIT .RESPONS...... IBILITY 16 .COMM...... ITTEES 99 7 STRATEGIC OVERVIEW ...... 19 8 COMPLIANCE WITH LAWS AND REGULATIONS 8 LEGISLATIVE AND OTHER ...... 100 .MANDATES...... 20 9 .FRAUD...... AND CORRUPTION 100 9 ORGANISATIONAL STRUCTURE ...... 28 10 MINIMISING CONFLICT OF .INTEREST...... 100

11 .CODE...... OF CONDUCT 100

12 HEALTH SAFETY AND .ENVIRONMENT...... AL ISSUES 101

13 .BOARD...... SECRETARY 101

14 .SOCIAL...... RESPONSIBILITY 101

15 AUDIT AND RISK COMMITTEE .REPORT...... 101 3

TABLE OF PART D PART E FIGURES HUMAN FINANCIAL FIGURE 1: TOP FOUR LARGEST RESOURCE INFORMATION ...... INDUSTRIES IN EACH PROVINCE, 2018 36 MANAGEMENT 115 FIGURE 2: BIOMES OF SOUTH AFRICA, 105 ...... LESOTHO AND ESWATINI 38 FIGURE 3: DOMESTIC TRIPS BY ...... DESTINATION PROVINCE 39 1 .INTRODUCTION...... 107 FIGURE 4: DISTRIBUTION OF FOREIGN 2 HUMAN RESOURCE ...... ARRIVALS BY TYPE OF VISITOR, 2019 41 .OVERSIG...... HT STATISTICS 108 FIGURE 5:INTERNATIONAL VISITORS’ PROPORTIONAL SPENDING BREAKDOWN, ...... 2018 41

FIGURE 6: EASTERN CAPE PROTECTED AREA EXPANSION STRATEGY PRIORITY ...... 42AREAS

FIGURE 7: GLOBAL TEMPERATURE ...... COMPARISONS 45

FIGURE 8:RELATIVE CONTRIBUTION OF DIVERSIFIED REVENUE SOURCES OVER ...... THE MTSF PERIOD 57

FIGURE 9: PERFORMANCE INFORMATION ...... CONCEPTS 58

FIGURE 10: GRAPHIC REPRESENTATION OF OVERALL PERFORMANCE BY STRATEGIC ...... OBJECTIVE IN 2019/20 59

FIGURE 11: RELATIVE WEIGHTED CONTRIBUTION OF PERFORMANCE ...... INDICATORS FOR OPERATIONS 61

FIGURE 12: RELATIVE WEIGHTED CONTRIBUTION OF PERFORMANCE ...... INDICATORS FOR MARKETING 79

FIGURE 13: RELATIVE WEIGHTED CONTRIBUTION OF PERFORMANCE ...... INDICATORS FOR CMS 85 The Edge over Tyhume Valley and Amathola Horse shoe bend, Kowie River, Bathurst Mountain range in Hogsback Eastern Cape, South Africa Eastern Cape, South Africa

EXPLORE THE EASTERN CAPE USING YOUR SENSE OF SIGHT

Rainforest in the Tsitsikamma section Tsitsikamma National Park of the Garden Route National Park Eastern Cape, South Africa Eastern Cape, South Africa PART A

GENERAL INFORMATION

EXPLORE THE SIGHTS

Waterfall Bluff, Wild Coast Eastern Cape, South Africa Waterfall at Otter Trail - Tsitsikamma National Park Eastern Cape, South Africa 1 GENERAL INFORMATION 7

REGISTERED NAME: Eastern Cape Parks and Tourism Agency

PHYSICAL ADDRESS: 17 – 25 Oxford Street East London 5201 GENERAL INFORMATION GENERAL POSTAL ADDRESS: P.O. Box 11235 Southernwood East London 5213

TELEPHONE NUMBER: +27 (0) 43 492 0881

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.visiteasterncape.co.za

EXTERNAL AUDITORS: Auditor-General South Africa

BANKERS: First National Bank

BOARD SECRETARY: Xoliswa Mapoma 8 2 BOARD MEMBERS

Nomkhita Mona Tracy Putzier Chairperson Deputy Chairperson Zola Fihlani EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE

Andrew Baxter Nomakwezi Mzilikazi Lindani Bevile

Siyabulela Onceya

10 3 LIST OF ABBREVIATIONS AND ACRONYMS

AGSA Auditor General of South Africa

AOP Annual Operational Plan

APP Annual Performance Plan

B-BBEE Broad Based Black Economic Empowerment

BoD Board of Directors

CEO Chief Executive Officer

CFO Chief Financial Officer

CITES Convention on International Trade in Endangered Species (of Wild Fauna and Flora)

DAFF Department of Agriculture, Forestry and Fisheries EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE DEA Department of Environmental Affairs

DEDEAT Department of Economic Development, Environmental Affairs and Tourism

DORA Division of Revenue Act (Act 1 of 2019)

ECPTA Eastern Cape Parks and Tourism Agency

ED Executive Director

EPWP Extended Public Works Programme

GDP Gross Domestic Product

GRAP Generally Recognised Accounting Practice

Ha Hectares

HCM Human Capital Management

ICT Information and communications technology

KPIs Key Performance Indicators

MEC Member of the Executive Council

METT-SA Management Effectiveness Tracking Tool – South Africa

MoU Memorandum of Understanding

MTEF Medium Term Expenditure Framework 11

NEM National Environmental Management (Act)

NGO Non-governmental Organisation

NSSD National Strategy for Sustainable Development GENERAL INFORMATION GENERAL OSI Organisational Sustainability Index

PA Protected Area

PAES Protected Area Expansion Strategy

PEDS Provincial Economic Development Strategy

PDI Previously Disadvantaged Individual

PDP Provincial Development Plan

PFMA Public Finance Management Act

SANRAL South African National Roads Agency SOC Limited

SAT South African Tourism

SCM Supply Chain Management

SMME Small Medium and Micro Enterprises

SoAIM State of Area Integrity Management

StatsSA Statistics South Africa

TEP Tourism Enterprise Partnership

TR Treasury Regulations

UK United Kingdom

UNDP-GEF United Nations Development Program – Global Environmental Facility

USA United States of America

VFR Visiting Friends and Relatives

WWF-SA World-Wide Fund for Nature (South Africa)

YES Youth Environmental Services 12 4 FOREWORD BY THE CHAIRPERSON

It is my pleasure to present the 2019/20 Annual Report of the Eastern Cape Parks and Tourism Agency (ECPTA).

This report marks the first anniversary of the current Board’s appointment. We are happy to report that we have built on the strong foundation of the previous Board to record a fifth successive clean audit opinion. This report further marks the final report of the five-year strategic period 2015/16 to 2019/20. As such it is opportune to reflect on progress against our strategic goal, which was “to leverage resources for tourism and conservation priorities”. EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE The most obvious determinant of success in respect of leveraging those resources is to quantify what would not have been possible if the baseline budget had not been augmented. Funds have been leveraged from National Government departments, from State Owned Enterprises, and probably most impressively, from international private sector donors. These funds have been invested in the Province through the ECPTA because the Agency is a principled partner, can be relied on to deliver as contracted, and, importantly, meticulously accounts for the resources it is entrusted with.

You will read in the pages of this report accounts of achievement of performance commitments in an increasingly constrained resource environment. The certainty that once accompanied government’s 3-year horizon for planning has dissipated over this five-year strategic period. Whereas the outer-year projections could once be relied on for planning purposes, the public sector is constantly required to cut budgets. Despite this, the ECPTA 13

has achieved 90% of the performance targets it contracted stewardship objectives in a single project which to in the Annual Performance Plan for 2019/20. The 90% enabled the Yendella community to partner with four

threshold is significant, because that is the standard to private landowners and ECPTA to create an extensive INFORMATION GENERAL which the Board holds the ECPTA – performance that dips consolidated conservation area below 90% is a red flag, attracting scrutiny and immediate • Retaining the crown as the Province with the most remedial action. winners at the National Lilizela Tourism Excellence Awards Six of the nine strategic objectives met the Board standard of 90%. Ironically, given the strides in leveraging resources, • Launching the first ever “Summer Season” for the the area that returned the poorest performance, with Province to create a buzz around upcoming events 70% achievement of indicators, was “resource leveraging facilitation”. This is an indication of the high standard to • The Board approved the repositioning of both the which the management of the ECPTA hold themselves Provincial Tourism sector brand and the corporate and gives the Board comfort that the areas that were brand. These will be the springboard for energetic successfully achieved were not “soft targets”. It is also implementation of the new strategic plan comforting to the Board that many of the targets achieved represent successful collaborations with stakeholders. The process of developing the organisational Theory of This is an indication that the strategies of the ECPTA are Change was enormously useful as the backdrop to the well grounded and in fact rooted in the communities of review of the Provincial Tourism Plan. The confluence of influence in both conservation and tourism sectors. these processes has ensured that the work of the Agency is extremely well aligned to the intentions of the Province

During 2019/20, the Board was privileged to lead the with respect to recovery of the Tourism sector. finalisation of the strategic plan that will see the ECPTA through to 2025. The new plan, based on a Theory of The Board appreciates the professionalism of the CEO and Change developed through extensive consultation, is not his management team and congratulates them on yet only robust, but charts a more development-orientated another clean audit. We look forward to achieving more, course for the ECPTA. This should result in even stronger together, in the coming years. relationships with co-management communities, increase the transformation footprint of the Agency’s endeavours, and spotlight the Province as a desirable tourist destination.

Several highlights of our performance in the year under review stand out:

• Teamwork and innovation saw ECPTA achieving its transformation, black rhino conservation and

Nomkhita Mona Chairperson: Eastern Cape Parks and Tourism Agency 23 October 2020 14 5 CHIEF EXECUTIVE OFFICER’S OVERVIEW

GENERAL FINANCIAL REVIEW OF THE PUBLIC AGENCY

The Eastern Cape Parks and Tourism Agency (ECPTA), as a Schedule 3C Public Agency of the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) is included in Vote 09 of the Provincial Government’s equitable share distribution. The Agency has consistently demonstrated that the assumption that the Agency can become self-sufficient is unrealistic, particularly in a scenario where the equitable share transfer is insufficient and declining. The option of passively declaring unfunded work impossible has never been an option for the Agency. The need to rally external resources to fund mandated priorities has thus, for the past five years, EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE been the Agency’s central goal. Our belief is that by demonstrating excellence in service delivery, controls, governance and conduct, our Agency will become attractive to investors from both public and private sectors.

The origin of revenue over the past five years demonstrates emphatically that this conviction was well placed. Over the five years of this Medium-Term Strategic Framework period, the proportion of the Agency’s budget from conditional grants (public and private) has grown from just 2% in 2015/16 to 27% in 2019/20. The contribution of the Vote 09 equitable share allocation has decreased from 87% to 63% over the same period.

Over R30 million of the final budget relates to multi- year projects against agreements with the National Department of Tourism, the National Department of Forestry, Fisheries and Environmental Affairs, Provincial Department of Economic Development, Environmental Affairs and Tourism, private sector, and non-governmental organisation funders. Unspent conditional grants totalled million R133.629, up from R55.820 million in the previous year. 15

Of this amount, R95.7 million for the multi-year The unspent grants of R133.629 million (2019: R55.820 Environmental Protection Infrastructure Programme million) are detailed in note 18 of the Annual Financial was received in December 2019 after thorough review Statements. of processes by the funder to align the objectives of the grant. This is an indication that better alignment between The underspending is in contrast to the deficit of R1.659 the grant holder and recipient organisation, in this instance million (2019: R16.203 Million) recorded in the Statement INFORMATION GENERAL ECPTA, is necessary for the future synchronisation. of Financial performance. This anomaly is due to non-cash items like depreciation of R23.419 Million (2019: R27.053 While it is clearly a mammoth achievement to have Million) being recorded for accounting purposes while increased the contribution of “other grants’ as we have, such an item is not budgeted for. This results in the Agency it creates challenges in terms of managing multi-year being in an accounting deficit. The 5.5% year-on-year projects in an environment that is rigidly focused on increase in personnel expenditure is comparable to the single year budgeting. Efforts to resolve such conflicting 5.2% in 2019, and less that the 7.6% increase recorded in pressures are ongoing. A further challenge emerges when the 2018 period. budgets are based on signed grant agreements, but the funding is not made available in the timeframes agreed. The sustained high amount (R5.072 Million) for repairs and The PFMA requires that all funding sources are included maintenance is consequent to chronic under provision of in the Agency’s budget but does not have a mechanism funding for infrastructure in the Province as a whole. The to show those budgets only once received. As we engage conditional grants for infrastructure from DEDEAT that external funders more in the future, the misalignment of were relied on for the first years of this strategic cycle processes between the Agency and her funders will need could not be sustained. Consequently, significant goods to be managed in concert with Provincial Treasury. and services budgets were diverted to emergency repairs on fences and other infrastructure. SPENDING TRENDS OF THE PUBLIC AGENCY CAPACITY CONSTRAINTS AND CHALLENGES FACING THE PUBLIC The ECPTA spent R288.802 million against eventual AGENCY revenue of R364.537 million. The Agency budgeted for a number of multi-year projects that commenced The Agency’s approved organogram allows for 629 posts, during the year under review. The under-expenditure of of which only 498 were filled at year-end. While this is goods and services is mainly due to the under-spending a marginal increase on the prior year (484), the high on conditional grant projects for which transfers were vacancy rate continues to undermine the Agency’s ability received late in the last quarter. In respect of capital to deliver on its mandate. Due to frugal allocations, there expenditure, the underspending is again mainly due to is no prospect of closing this vacancy gap. Since the the under-spending on conditional grant projects such organogram was developed specifically to deliver on the as the National Department of Tourism infrastructure MTSF plans, obvious limitations emerge because of the high projects, National Department of Forestry, Fisheries and vacancy rate. In fact, as the personnel-related increase Environment’s Infrastructure projects and various capital for 2019/20 matches inflation, there was no scope for projects. These were mostly committed by year-end and a filling vacancies. Over 20% of the organogram remained roll-over applied for. unfunded for the year under review, posing considerable risk to the Agency in respect of meeting its obligations. 16

NEW OR PROPOSED ACTIVITIES

Significant resource-backing is expected from the Provincial fiscus to support the recovery of the tourism sector following the coronavirus pandemic. This will facilitate increased reach for the Agency in respect of support to tourism products and in elevating the Province’s profile as a travel destination.

REQUESTS FOR ROLL OVER OF FUNDS

The Agency has requested the roll-over of R153.667 million of cash balances. This amount consists of:

Bank balances 31-Mar-20 R'000

Main 5 712

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE Revenue 7 526

Environmental Protection Infrastructure Programme and Economic Stimulus Fund 102 557

N2 Biodiversity Offset 2 687

National Lotteries Commission 1 095

NDT - Baviaanskloof 15 018

NDT - Infrastructure 9 413

NDT - Tourism Monitors 3 871

NDT - Universal Accessibility 1 499

Rhino Impact Bond 1198

Social Responsibility Projects 1 451

South African National Biodiversity Institute 97

South African National Parks 1 543

SUPPLY CHAIN MANAGEMENT AUDIT REPORT MATTERS PREVIOUS YEAR

The Auditor-General has confirmed that the ECPTA has not Management addressed all findings communicated by incurred irregular expenditure in the past five the Auditor-General and by Internal Audit during the financial years. in the previous year and how would be course of the year. Internal Audit completed follow-up addressed. audits of both internal and external audit findings, reporting progress to the Audit and Risk Committee, who then updated the Board. 17

EVENTS AFTER THE REPORTING DATE tourists that return to the Province will expect that their visit is safe, that the products they visit are capable of This report cannot capture the unprecedented turmoil protecting them from coronavirus and other created by the coronavirus pandemic. Financial year end processes, the audit by the Auditor-General, and several In this scenario, ECPTA remains committed to working year-end deliverables were delayed. The Agency responded side by side with affected communities in finding the INFORMATION GENERAL swiftly to the pandemic both internally and externally, best solutions to natural resource pressures and creating conscious as it is of the wellbeing of travellers to the livelihoods from the bio-tourism economy. Province. ACKNOWLEDGEMENT/S OR On announcement of the State of Disaster, reserves were APPRECIATION immediately closed, visitors in reserves were assisted to leave, and clients with bookings were requested to As an Agency we are grateful to our Executive Authority, postpone their visits. Staff were immediately equipped to MEC Mvoko, for his unstinting support of our work. His prevent virus spread both amongst themselves and from participation in our efforts have been motivating to us contact with the public. Consequent to these efforts, ECPTA internally and promoted the image of the Agency and has recorded only eleven positive Covid-19 cases in the six Provinces externally. months of the pandemic. I wish to commend the dedicated staff of ECPTA who have OUTLOOK / PLANS FOR THE FUTURE TO made it possible to attain a fifth consecutive clean audit. ADDRESS FINANCIAL CHALLENGES This achievement is a direct result of your efforts and is made more remarkable by the context within which it The changes wrought by the Agency’s response to the happens. Around us, public confidence in government and coronavirus pandemic have allowed it to peep into a state-owned enterprises has plummeted. Clean audits are digitised, remote-work future. It is anticipated that the as rare as Diceros bicornis. Yet here at ECPTA, they are efficiencies created as a matter of necessity will be a the minimum standard. I have confidence that you will springboard to even greater efficiencies and ultimately continue to make the Province proud. cost savings. This is particularly applicable to the cost incurred in traversing the vast Province for meetings that can potentially be replaced with virtual formats on a more permanent basis.

In terms of economic recovery, the picture is bleak, and will remain so for some time. It is worsened by the unpredictability of future shocks. What is clear though, is that as an entity of government, ECPTA will need to position itself as a contributor to recovery, or risk becoming obsolete. While the form of recovery is unknowable, it is apparent that environmental factors will play a significant role in the trajectory of that recovery. Persistent drought, for example, will exacerbate an already bruised economy, Vuyani Dayimani creating increasing contestation over resources, setting Chief Executive Officer a vicious cycle in motion. Further, the health-conscious Date: 23 October 2020 18 6 STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

To the best of our knowledge and belief, we confirm the following:

i. All information and amounts disclosed in the annual report are consistent with the Annual Financial statements audited by the Auditor General.

ii. The Annual Report is complete, accurate and is free from any omissions.

iii. The Annual Report has been prepared in accordance with the guidelines on annual reporting as issued by National Treasury.

iv. The Annual Financial Statements (Part E) have been prepared in accordance with the Generally Recognised Accounting Practice (GRAP) standards applicable to the public entity.

v. The accounting authority is responsible for the preparation of the Annual Financial Statements and for the judgements made in this information.

vi. The accounting authority is responsible for establishing and implementing a system of internal control which has been designed to provide reasonable assurance as to the integrity and reliability of the performance information, the human resources information and the Annual Financial Statements. EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE vii. The external auditors are engaged to express an independent opinion on the Annual Financial Statements.

In our opinion, this Annual Report fairly reflects the operations, the performance information, the human resources information and the financial affairs of the public entity for the financial year ended 31 March 2020.

Yours faithfully

Vuyani Dayimani Nomkhita Mona Chief Executive Officer Chairperson of the Board 23 October 2020 23 October 2020 7 STRATEGIC OVERVIEW 19

GOAL

Our goal is to leverage resources for tourism and conservation priorities

VISION INFORMATION GENERAL

Responsible tourism and conservation underpin sustainable development of the Eastern Cape

MISSION

ECPTA will become the premier conservation and tourism agency by actively pursuing equitable low-carbon growth through innovation and collaboration in these sectors

VALUES

The values that support the actions of the ECPTA are:

RESPECT: We appreciate and value one another, our stakeholders, our communities, and our shareholder

INTEGRITY: We will conduct our business based on sound moral principles

RESPONSIBILITY: We will be honourable, trustworthy, and answerable for all our actions 20 8 LEGISLATIVE AND OTHER MANDATES

The Eastern Cape Parks and Tourism Agency (ECPTA) is listed in Schedule 3-C of the Public Finance Management Act (PFMA),Act No.1 of 1999, and reports to the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT). 8.1 CONSTITUTIONAL MANDATE

The mandate of the ECPTA is rooted in the Constitution of the Republic of South Africa, Act No.108 of 1996, Chapter 2: Bill of Rights (ss 24) – Environment, which states:

Everyone has the right to: (b) have the environment protected, for the benefit of (i) prevent pollution and ecological degradation present and future generations, through reasonable (ii) promote conservation; and legislative and other measures that – (iii) secure ecologically sustainable development and use of natural resources while promoting justifiable economic and social development.

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE 8.2 LEGISLATIVE MANDATES

Relevant Acts Key Responsibilities

Cape Nature and Environmental The provincial nature reserves in sections of the old Cape Province were declared Conservation Ordinance (19 of 1974) under this legislation The Eastern Cape is in the process of preparing new provincial environmental Ciskei Conservation Act, 1987 legislation where the old (pre-1994 democracy) ordinances remain relevant. This (Act 10 of 1987) particular ordinance governs the management of biodiversity conservation areas in the former Ciskei (i) develop and manage protected areas Eastern Cape Parks and Tourism Agency (ii) promote and facilitate the development of tourism in the Province Act, 2010 (Act 2 of 2010) This Act is currently under review Marine Living Resources Act, 1998 This is the primary legislation governing the management of marine living resources (Act 18 of 1998) and is applicable to all Marine Protected Areas National Building Regulations and This legislation governs the building industry and is relevant for all ECPTA Building Standards Act, 1977 infrastructure development projects (Act 103 of 1977) National Environmental Management Act, This is the national environmental legislation which provides guidance on 1998 (Act 107 of 1998) (NEM) environmental management as well as the interpretation of Act 2 of 2010 NEM: Biodiversity Act, 2004 This is the primary legislation for the management of biodiversity across the (Act 10 of 2004) landscape and guides the interpretation of ECPTA Act 2 of 2010 NEM: Integrated Coastal Management This is the primary legislation governing the management of the coastal areas and Act, 2008 (Act 24 of 2008) prescribes the management of coastal protected areas NEM: Protected Areas Act, 2003 This is the primary legislation governing the management of protected areas and (57 of 2003) guides the interpretation of ECPTA Act 2 of 2010 NEM: Waste Management Act, 2008 This is the primary legislation governing the management of waste, including in (Act 59 of 2008) protected areas This is the primary legislation governing the management of indigenous forests and National Forests Act, 1998 woodlands. Many state forests have been proclaimed as Forest Nature Reserves in (Act 84 of 1998) terms of the National Forests Act 21 GENERAL INFORMATION GENERAL

Relevant Acts Key Responsibilities

This is the primary legislation governing the prevention and control of runaway National Veld and Forest Fire Act, 1998 wildfires. Fire is used as a biodiversity management tool and control of excessive fires (Act 101 of 1998) is also important for the management of protected areas and prevention of damage to infrastructure National Water Act, 1998 This is the primary legislation governing the use of water (Act 36 of 1998) Occupational Health and Safety Act, 1993 This is the primary legislation governing health and safety standards in the context of (Act 85 of 1993) all work environments Chapter 6 of the PFMA applies specifically to Public Entities. It lays out prescripts for Public Finance Management Act, 1999 the conduct of Accounting Authorities and other officials with respect to fiduciary (Act 1 of 1999) (as amended) responsibilities, planning, reporting, and conduct • The promotion of responsible tourism practices • Provisions for the effective marketing of the Province, both domestically and internationally Tourism Act, 2014 (Act 3 of 2014) • The promotion of quality tourism products and services • The promotion of economic growth and development of the sector • The establishment of concrete inter-governmental relations to develop and manage tourism The Eastern Cape is in the process of preparing new provincial environmental Transkei Environmental Conservation legislation where the old (pre1994 democracy) ordinances remained relevant. This Decree, 1992 (Decree 9 of 1992) particular ordinance governs the management of biodiversity conservation areas in the former Transkei This is the primary legislation governing the management of World Heritage Sites World Heritage Convention Act, 1999 which in the case of the ECPTA it is applicable to the management of the Baviaanskloof (Act 49 of 1999) section of the Cape Floral Region World Heritage Site 22

8.3 POLICY MANDATES

In order to give effect to the electoral mandate of the current administration, President Ramaphosa used his State of the Nation Address in June 2019 to confirm seven main priorities through which to achieve the 14 Outcomes of the Medium-Term Strategic Framework (MTSF) for 2015/16 – 2019/20:

MTSF National Outcomes State of the Nation Address Priorities

1. Quality of basic education 1. Economic transformation and job creation

2. A long and healthy life for all South Africans 2. Education, skills and health

3. Consolidating the social wage through reliable and 3. All people in South Africa are and feel safe quality basic services 4. Spatial integration, human settlements and local 4. Decent employment through inclusive growth government 5. Skilled and capable workforce to support an 5. Social cohesion and safe communities inclusive growth path EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE 6. An efficient, competitive and responsive economic 6. A capable, ethical and developmental state infrastructure network 7. Vibrant, equitable and sustainable rural 7. A better Africa and World communities with food security for all 8. Sustainable human settlements and improved quality of household life 9. Responsive, accountable, effective and efficient local government 10. Protect and enhance our environmental assets and natural resources 11. Create a better South Africa, a better Africa and a better world 12. An efficient, effective and development-orientated public service

13. Social protection

14. Nation building and social cohesion

The ECPTA’s Strategic Plan for 2015/16 – 2019/20 focuses primarily on achieving National Outcomes 10 and 12 while contributing to Outcomes 4 and 6. ECPTA’s potential contribution to the achievement of these national strategic imperatives is detailed below. 23 GENERAL INFORMATION GENERAL

National Outcome ECPTA priorities for the MTSF period

Create employment opportunities through Green Job projects for permanent, contract, casual and Extended Public Works Programme (EPWP) appointments by recruiting people from communities near the reserves. Create economic opportunities by creating a demand for goods and services and unlocking opportunities for economic development for entrepreneurs, concessionaires, eco-tourism and cultural tourism linkages 4. Decent employment through Provide seasonal employment opportunities by providing access to Protected Areas inclusive economic growth for the harvesting of natural resources from reserves - e.g. thatching grass, marine resources, firewood, game, etc. Create employment opportunities for tour operators and service providers in the tourism industry Prepare potential tourism entrepreneurs to participate in the mainstream tourism economy by providing access to mentoring and skills development opportunities Develop economic infrastructure relating to tourism, reserve operations and public services, including bulk services infrastructure which will directly and indirectly benefit communities who live around Provincial Parks 6. An efficient, competitive and responsive economic Support the education curriculum and infrastructure by developing environmental infrastructure network education centres in the reserves Develop recreational and tourism infrastructure Develop tourism routes to the benefit of rural and remote communities Provision of ecological goods and services - e.g. clean water through catchment management, combating soil erosion, carbon sequestration

10. Protect and enhance our Facilitate access to natural resources from reserves - e.g. thatching grass, fish, environmental assets and natural firewood, venison etc. to neighbouring communities resources Combat poaching, illegal use of natural resources and trade in endangered species Promote environmental education and awareness programmes for sustainable natural resource use Strengthen the management of ECPTA to ensure optimal socio-economic impact on communities Increase public access to Provincial Parks and tourism products 12. An efficient, effective and Strengthen the capacity of communities to effectively participate in biodiversity development-orientated public conservation management and co-management of Provincial Parks service Develop skills and human resource capacity through staff training and the training of communities Collaborate with relevant role-players for the advancement of effective resource management

During 2019/20, ECPTA’s strategy aligned to the National Development Plan and the contributing “Seven Priorities” outlined in the 2019 State of the Nation Address (SONA) to grow the economy and create much-needed jobs. 24

SONA 2019 priorities ECPTA current and potential contribution

The introduction of game farming as a viable alternative or adjunct to conventional pastoral farming, particularly amongst previously disadvantaged communities is gaining traction. ECPTA actively supports this trend with game donations, game farmer mentorship and conservation awareness Both the Tourism and Conservation Industry Transformation initiatives are focused on 1. Economic transformation and job bringing previously disadvantaged individuals (PDI) and PDI-owned SMMEs into the creation mainstream of the respective industries The concept of community benefit is a cornerstone of these transformation efforts Working with DEDEAT, ECPTA contributes to the readiness of coastal and marine tourism products, activities and services along the coastal and ocean zone The marketing and promotion of the coast and ocean are increasingly foregrounded Ensuring employment policies and practices are compliant with labour legislation and best practice 6. A capable, ethical and Actively greening the energy mix on reserves and in administrative offices developmental state

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE Pursuing excellence in all endeavours as a key strategy in mobilising additional resources and private sector investment

ECPTA’s strategy further finds synergy with a variety of strategy documents, some of which include:

National and Provincial Strategy Relevance to ECPTA strategy Documents Contribute to global competitiveness of South African tourism sector through National Tourism Sector Strategy enhanced service levels and responsive product development Improve and maintain accessibility of tourism facilities Reputation management Eastern Cape Tourism Master Plan Tourist safety Service standards Transform and grow the economy The NDP commits to achieving a minimum standard of living through a multi- pronged strategy. Three of these prongs fall within the mandate of the ECPTA: • Employment creation - Address apartheid spatial discrepancies by identifying potential and developing industries in the former Bantustans, including tourism - Activate rural economies through investment in tourism (among others) National Development Plan (NDP) • Recreation and Leisure - The tourism economies to offer activities and experiences that are appealing to domestic travellers, not only international travellers • Clean environment - Environmental sustainability and resilience are key features of the NDP approach to ensuring that oceans, soil, water, and biodiversity are protected National Strategy for Sustainable The NSSD defines the strategic imperatives of the South African Government as they Development (NSSD) relate to the interaction between people, the environment and the economy 25

National and Provincial Strategy Relevance to ECPTA strategy Documents The PDP includes spatial land utilisation in terms of provincial priorities for development. It identifies the Province’s biodiversity endowment as contributing to the Province’s competitive edge. The PDP, underpinned by the acknowledgement that “elilizwe silibolekiwe” (this country is borrowed), points to the need to view biodiversity as a natural resource to be protected for the enjoyment of future INFORMATION GENERAL generations. The interdependence of economic, social and environmental systems is Eastern Cape Vision 2030 Provincial recognised as part of this principle Development Plan (PDP) Of significance to ECPTA in this regard is that tourism is identified as a high-potential economic sector. Strategies suggested for the rapid development of Tourism include: • growing the volume and value of eco-tourism, heritage and sports tourism • improving access infrastructure • building stronger local tourism networks The PEDS identifies tourism as a high potential sector, and identifies a number of Provincial Economic Development opportunities. These include tourism, business tourism and improved management of Strategy (PEDS) tourism “packages”, all of which will benefit from increased marketing of the province’s unique assets

The Premier has committed the Eastern Cape Government to focus on the seven strategic national priorities by highlighting six Provincial Goals:

Goal 1: An innovative, inclusive and growing economy

Goal 2: An enabling infrastructure network

Goal 3: An innovative and high-value agriculture and rural sector

Goal 4: Human development

Goal 5: Environmental sustainability

Goal 6: Capable democratic institutions

These priorities were rearranged during the year under review, but the intention remained unchanged. 26

The Strategic Plan for 2015/16 – 2019/20 to which this Annual Performance Plan aligns, responds to Provincial Goals 1 and 5. Priority 6 guides the way the ECPTA conducts its administration and operations. The table below sets out the points of alignment between the provincial Government’s priorities and ECPTA’s Strategic Plan commitments:

Provincial Priority: ECPTA potential contribution:

• Support new entrants and previously disadvantaged product owners in the conservation and tourism industries to operate in the mainstream as soon as 1. An innovative, inclusive and possible growing economy • Addressing industry blockages (particularly related to red-tape barriers to entry) with relevant stakeholders on a case-by-case basis • Expand the provincial protected area estate through stewardship • Enhance the Agency’s Anti-poaching and Reserve Security capability 5. Environmental sustainability • Work with law enforcement / security cluster partners to comply with NEMA • Conduct community engagement and awareness campaigns to encourage responsible resource use and active participation in conservation • Efforts will continue throughout the MTEF period to ensure the activation of

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE the necessary regulations to support the ECPTA Act (2 of 2010) provisions that allow for the retention of own revenue for conservation and tourism development. • In addition to revenue retention, ECPTA is working to ensure that regulations 6. Capable democratic institutions are activated to facilitate the regulation of Tour Guides in the Province, both as a mechanism for improving tourism standards, but importantly as an additional revenue source. As with existing own-revenue, this should then be retained for conservation and tourism development. • To update / modify the METT index to provide a more dynamic management platform, rather than a post-hoc score only

As a Schedule 3C public entity reporting to the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT), the ECPTA contributes to the achievement of the Department’s Strategic Goal: Innovation for Sustainable Development. These efforts dovetail with Executive Authority commitments, particularly regarding Enterprise Development: SMMEs supported, Tourism Sector Development: Tourism promotion in the Province and Managing and Protecting the natural environment.

ECPTA’s efforts are specifically aligned to the following DEDEAT performance indicators: Tourism Planning, Tourism Growth and Development, Tourism Sector Transformation, Biodiversity and Protected Area Planning and Management. 27

This alignment is further detailed in the MEC’s Policy pronouncements:

Policy speech commitments ECPTA progress and commitments GENERAL INFORMATION GENERAL • ECPTA negotiated for provincial winners to be included in the “Hidden Gems” programme at Africa’s Travel Indaba in May Ensure sustainability of black owned • The six participants were assisted with marketing material enterprises that were supported to • Going forward, ECPTA’s approach to PDI participation in Lilizela is to focus on participate in previous Lilizela Tourism products’ quality preparedness for competition at higher levels, rather than Awards simply entering the competition • Achieving the highest number of national winners by provincial entries for two consecutive years testifies to the success of this approach • The 5-year strategic plan target for adding to the terrestrial protected area Expand the protected area estate by 18 estate was already exceeded by the end of the third year 000 hectares of land under conservation • Future alignment of stewardship efforts to ecological priorities will guide the programme in coming years Execute biodiversity off-sets to mitigate • Work will involve identification, negotiation and securing of suitable sites that environmental damage resulting from will add value to the protected area estate construction of the N2 Wild Coast project

Loan 1 500 head of game over four • In process of finalising 4th site for wildlife loan agreement years in support of the province’s game • This will bring the total number of animals in the programme to 500 within the transformation programme second year Continue promoting and marketing the • Innovative financial solutions are required to support the increase in the Eastern Cape as a tourism destination number of Joint Marketing Agreements from 1 in 2018/19 to the 10 required of choice by SA Tourism

Improve tourism infrastructure • Tourism and heritage planning included in METT-response plans and / or reserve-based development plans, linking with provincial heritage sites. Restore heritage sites 28 9. ORGANISATIONAL STRUCTURE

When the Strategic Plan (2015/16 – 2019/20) was Extensive consultation and technical preparation were developed in 2014, it was apparent that the organisational necessary, and were rolled out over a period of 18 months. structure would require revision to ensure relevance to the The organisational structure depicted below was effective Agency’s new strategic direction. through to the end of 2019/20.

Executive Authority

Board of Directors

Office of the CEO

Strategy & Risk Legal Services Management EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE

Board Secretary Commercialisation

Operations Marketing Finance Corporate Services

Destination Tourism Human Capital Development Marketing Finance Management

Business Events & Accounting & Scientific Services Partnerships Reporting Employee Relations

Corporate Protected Area Communications and Supply Chain Human Capital Expansion Media Development

Information and Project Management Research and Internal Control Communication Information Technology

Reserves Tourism Development

3 x Regions

Anti-Poaching & Security Analysis

Stakeholder Engagement 10 EXECUTIVE MANAGEMENT 29 GENERAL INFORMATION GENERAL

Vuyani Dayimani Jonathan Jackson Chief Executive Officer Chief Financial Officer

Dean Peinke Nolufefe Ali Acting Chief Operating Executive Director: Officer Corporate Services

Lihle Dlamini Xoliswa Mapoma Chief Marketing Officer Legal Advisor / Board Secretary African Drums Waves Eastern Cape, South Africa Eastern Cape, South Africa

EXPLORE THE EASTERN CAPE USING YOUR SENSE OF HEARING

Cape Parrot Grahamstown National Arts Festival, Jazz Eastern Cape, South Africa Eastern Cape, South Africa PART B

PERFORMANCE INFORMATION

EXPLORE THE SOUNDS

Lion Eastern Cape, South Africa Secret Falls, Wild Coast Eastern Cape, South Africa Refer to page 117 of the Report of the Auditors Report, published inPart E:Financial Information. section of the auditor’s report. reporttomanagement, withanymaterial findings being reported under the Report on the audit annualof the performance report in the form of anaudit conclusion. The audit conclusion on the performance against predetermined objectives isincluded inthe The AGSA currently performs the necessary audit procedures on the performance information to provide reasonable assurance 1

AUDITOR’S REPORT: PREDETERMINED OBJECTIVES 33 PERFORMANCE INFORMATION 34 2 SITUATIONAL ANALYSIS

Most people leaving the Between 2016 & 2020, Province relocated to the Eastern Cape experienced a net Gauteng & the outward migration of over 320 000 Western Cape people to other provinces, by far the highest out migration from any province ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE

6.734 million people The Eastern Cape is the second largest province with a total land (11.3% of the country’s area of population) call the Eastern 168 966 km2 Cape Province “home”

All statistics in this snapshot are sourced from publications by Statistics South Africa (StatsSA) unemployment rate inthe country This is consistent with the finding in the November the in finding the with consistent is This last weeks of the The youth unemployment rate is period povertythe levels economy, and industryon performance inthe following impact significant a have will it that 2019 atin SA unemploymentofficial highestthe ratehas Province The of of While the these these in increased had coefficient) Gini the by measured (as multidimensional diagnostic of inequality“, that inequality 1.8% 2 report “Inequality Trends inSouth Africa -A 39.5% provinces, while decreasing inallothers compared to COVID-19 ( 47.7% 2019/20 pandemic only really affected the 2018 expanded unemployment rate) . It remains the highest youth financial year, it is evident is it year, financial 44.9% , animprovement (June According to the report “Child Poverty inSouth Africa” largest proportions of multidimensionally poor children (at 82,8% State recorded growth rates lower than the Eastern Cape above the national average. Only Northern Cape and Free Cape were the only provinces to record growth rates proportion of children aged residents than all other provinces, and a relatively higher The Eastern Cape has ahigher proportion of elderly In the national average of The Province is the Domestic Product (GDP), contributing by region) for the Eastern Cape was Q4 2020 of of and 2019 78.7% ), Limpopo and the Eastern Cape record the , the real annual economic growth rate (GDP respectively) 4th 0.8% highest contributor to Gross 0-14 . Gauteng and the Western 0.6% 7.7% , compared to 35 PERFORMANCE INFORMATION 36 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Figure 1: years, but by only 0.6%in2018. changed at an average 1%annually for the previous 5 (GDP) per region (Eastern Cape) -at market prices - shrinking (or at least stagnant): gross domestic product economic data indicate that the province’s economy is including challenges, increasing significant demands for social services. Most recent with Province the Entrenched low growth and high unemployment present whole, economic growth rates have remained sluggish. of the Eastern Cape. Consistent with the country as a and productivity continue to characterise the economy Disparities inemployment rates, income, service levels, Economy Komani and Makhanda . Other important towns inthe Province include Mthatha, incorporates Port Elizabeth, Uitenhage and Despatch. The Nelson Mandela Bay Metropolitan Municipality includes King William’s Town, Bhisho, and East London. the Eastern Cape. Buffalo City Metropolitan Municipality the country’s eight metropolitan municipalities arein 31 local municipalities, clustered in six districts. Two of area of South Africa. Administratively, the Province has The Eastern Cape accounts for 13.9% of the total land Location 2.1.1 2.1 Source:

2019. StatsSA product, 4thquarter Gross domestic province, 2018. industries ineach Top fourlargest SERVICE DELIVERYSERVICE ENVIRONMENT PROVINCIAL OVERVI EW Manufacturing Government Transport Finance Mining Other Trade have significant knock-on effects for the Province. at 21.4%. General shrinking of the economy continues to government services contributing the highest proportion StatsSA. The tertiary sector isdominant, with general This was again the case in the Q4 2019 GDP report from average of around 7.5% of the country’s GDP since 2010. nationally. The Provincial economy has contributed an economic GDP growth rate for 2019 dropped below 1% economy sectors. economists As predicted, the real significant opportunities, presents particularly inthe tourism and biodiversity challenges these addressing to The emergence of entrepreneurship as acontributor P P N LP N N E “Poor” to “Very Poor”. roads and 13.6% more unpaved roads arecategorised as network has declined over the past year: 5.7% more paved in a“Poor” to “Very Poor” condition. The state of the road condition, and 88.2% (24 578.48km) of unpaved roads are province’s paved roads areina“Poor” to “Very Poor” Department of Transport, 43.7% (1660.54km) of the maintained road network. According to the Provincial Ciskei –has limited accessibility, worsened by apoorly former and Transkei specifically the – easternregionthe is generally available throughout the western region, while quantity of infrastructure. User-friendly road infrastructure of thepart Province having access to better quality and with the metropolitan municipalities and the western Infrastructure distribution across the Province isunequal, Infrastructure allocation to the Eastern Cape isnot responsive to the two annual provincial allocations. The calculation of the DoRA the annual Division of Revenue Act (DoRA), which specifies funds available to the Province arederived according to shareholder department, DEDEAT) fund the ECPTA. The Government (through the Equitable Share Allocation to the aScheduleAs 3CPublic Entity, transfers from the Provincial State funding have little correlation with the province’s population size. not driven by population numbers, and related cost drivers exacerbated by the fact that the Agency’s dual mandate is the DoRA allocation to the Province isdiminishing. This is poverty. Because it isbased largely on population trends, of the Province and the proportion of adults living in primary drivers of the ECPTA mandate –the expansiveness other regions of the country. are no passenger rail services linking the Eastern Cape to geographic spread of tourists across the Province. There to promote tourism to the Province or to facilitate the commercial airstrips, these arenot used optimally either as acargo port. While the Province has various non- outstrips supply. Afourth airport near Bhisho has potential demand as high destinations these from is and flights to located inEast London and Mthatha. However, the cost of facility directly. There aretwo additional domestic airports, status, there areno international carriers arriving at this Although the Port Elizabeth airport has international 37 PERFORMANCE INFORMATION 38 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20

manages more than 420 000hectares of terrestrial potential of the protected area estate. ECPTA currently Province’s biodiversity while maximising the tourism Government, to the protection and conservation of the ECPTA contributes, on behalf of the Eastern Cape Provincial natural capital. The protected area estate needs to expand. to conserve the Eastern Cape’s internationally recognised and location of the protected area system isinadequate and ecosystem services. Unfortunately, the current size Climate change willincreasingly challenge biodiversity Eastern Cape vegetation types are insufficiently protected. diverse of South Africa’s provinces. However, almost 80%of of eight of the country’s nine biomes, making it the most of endemism. The Eastern Cape isanarea of convergence countries inthe world and has exceptionally high levels South Africa isone of the most biologically diverse Biodiversity 34° 32° 30° 28° 26° 24° 22° 16° OCEAN ATLANTIC Forests Fynbos Savanna Grassland Indian OceanCoastalBelt Succulent Karoo Albany Thicket Desert Nama-Karoo 18° NAMIBIA CAPE TOWN 18° WESTERN CAPE 20° 20° NORTHERN CAPE UPINGTON 22° 22° GEORGE BOTSWANA 24° 24° KIMBERLEY

NORTH-WEST TROPIC OF CAPRICORN OF TROPIC the nine biomes found inSouth Africa. of endemism. The ECPTA-managed estate protects eight of the second is the Maputoland-Pondoland-Albany Centres hotspots included inthe Provincial protected area estate; This isone of two internationally recognised biodiversity Cape Floristic Region Protected Areas World Heritage Sites. areas. The Baviaanskloof WHS of the ispart serial site, the and approximately 170 000hectares of marine protected protected areas, including one World Heritage Site (WHS), Source: Figure 2: PORT ELIZABETH 26° MAFIKENG 26° EASTERN CAPE BLOEMFONTEIN FREE STATE

BHISHO

Report. ThirdDraft.September2018 Introduction. 3rdSouthAfricaEnvironmentOutlook Biomes ofSouthAfrica,LesothoandeSwatini JOHANNESBURG MASERU 28° LESOTHO GAUTENG EAST LONDON 0 28° PRETORIA POLOKWANE MPUMALANGA LIMPOPO KWAZULU-NATAL 30° PIETERMARITZBURG

INDIAN OCEAN 200 30° ZIMBABWE SWAZILAND DURBAN NELSPRUIT MBABANE 32° MOZAMBIQUE 0 km 400 32° 34° 32° 30° 28° 26° 24° 22° visitors to experience comparatively inexpensive trips. of the South African currency, allowing international increased spend is attributed to the relative weakness increased,however, over6.6% theby 2017/18 figures. The 2017/18 to 10 Report, international arrivalsdeclined by 0.6%from According to South African Tourism’s 2018/19 Annual Source: Figure 3: 300 recent full-year data isfor 2018, and this indicates that published as “SAT tourism performance report”. The most data isonly available by fullcalendar years, and this is previous year, and a 5% decline since 2015. Disaggregated Eastern Cape. This represents a1%increase from the taken by domestic tourists, 10% were destined for the Tourism (2018/19) indicates that of the 18.7 million trips The most recent annual report available from South African Tourism • • • • • • •

000 more d

Heritage Museum) Nieu Rhodes V Bloukran Bavia Coffee Hogs Addo Elephant National Park

E C E S G KN M N C N C South AfricanTourismAnnualReport–2018/19 Domestic tripsbydestinationprovince. -Bethesda (Owl House and Bushman back (Amatola Mountains) anskloof World Heritage Site Bay

387 s Bridge bungee jump illage and Tiffendell SkiResort omestic travellers visited the Eastern

231 . Spending by international visitors 10% 15% 20% 25% 30% 35% 40% 0% 5% 2015 2016 cultural sites. Some attractions include coastline, abundant wildlife and important heritage and exist, the Eastern Cape isbest known for its unspoilt compared to 2017/18. While numerous “Top-10” attractions the number of visitors to the Province declining by 3.1% securing only 4%of international tourist arrivals, with Inaccessibility of the Province led to the Eastern Cape and further economic downturn. doubt continue inresponse to the coronavirus pandemic and 18.7 million in2018. The downward trajectory willno annually from 26.6 million in2016 to 19.2 million in2017, of domestic trips undertaken nationally has dropped of domestic visitors they attracted. The overall number Free State experienced notable increases inthe proportion Cape on holiday than in 2017. Only KwaZulu-Natal and • • • • • • • suspension bridge) Desolation) Tsitsik Port Eli Jeff Camde Makhand Mande Hole int reys Bay amma National Park (Storms River la Museum (Mthatha) boo National Park (and Valley of zabeth (Shopping malls and beaches) he Wall a (and National Arts Festival) 2017 2018 39 PERFORMANCE INFORMATION 40 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 were taken in2018/19, up 12.7% on the previous year. Tourism (SAT) reports that 18.7 million domestic trips to the 9.4% decrease inthe previous period. South African 196 million. This increase of 17.5% compares favourably domestic tourism expenditure increased in2018 to R153 2018 and 2017 provisional and 2016 final Africa, South According to the same Tourism Satellite Account for Domestic Tourism provisional 20162017 (final and 2018).Africa and South reported iscaptured inthe Tourism Satellite Account for both visitors and non-visitors. Tourism employment thus indirectly related to the goods and services acquired by industries includes employment that isboth directly and employment. Therefore, employment inthe tourism South Africa does not have adirect measure of tourism the domestic tourism market. the motivations underlying the Agency’s prioritisation of a potentially positive return on investment. This is one of Province’s attractions to the domestic market represents to R29.5 billion isaclear indication that marketing the The increase incontribution to the country’s economy reporting period. an average of around 63 000people per year over the this means that the provincial tourism sector employed working South Africans. Extrapolated to the Eastern Cape, show that the tourism industries employ one inevery 22 In the report released in November 2019 by StatsSA figures and hidden gems. hidden and seasoned travellers who appreciate the wide-open spaces to self-drive. Overseas tourists inthe Province tend to be prefer proportion significant a that in different slightly spending pattern of overseas tourists to the Province is Experience from the Eastern Cape indicates that the ‘tourism-connected products’ (14,8%). (22,5%), ‘accommodation for visitors’ (15,9%), and ‘non-specific products’were itemsexpenditure main The was recorded in2018, almost R1billion less than in2017. inbound tourism expenditure totalling R120 2016 and provisional 2017 and 2018) indicates that (final Africa South StatsSA’sfor AccountSatelliteTourism Source: Figure 4: (SADC) countries, and only aquarter travel from overseas. from other Southern African Development Community South Africa inJanuary 2019. Most foreign tourists are peak tourist months, with over 1million tourists visiting Africa in2019 were tourists. December and January are StatsSA reports that almost 70% of foreign arrivalsto South International Tourism

N T P

100% Statistics SouthAfrica.Tourism,ReportNo.03-51-02(2019) Distribution offoreignarrivalsbytypevisitor,2019. 10% 20% 30% 40% 50% 60% 70% 80% 90% 0% 1 068190 109 988 383 332 335 382 797 181 73 338 379 382 838 696 83 638

356 903 903 059 90 205 037 milli A 381 666 753 517 79 712 on 349 208 734 554 79 712 tourists in2019. Germany and France account for half of the overseas Nigeria. The United Kingdom, United States of America, of tourists from ‘other’ African countries in2019 were from Lesotho and Mozambique, while approximately aquarter Two thirds of the SADC tourists come from Zimbabwe, final Source: Figure 5: S R N T T 357 643 790 187 90335 R R T A A A R

StatsSA, TourismSatelliteAccountforSouth Africa, breakdown, 2018 International visitors’proportionalspending 392 927 896 978 88 009

A 2016

2 and 352 075 780 381 87 180 provisional 10 377 483 834 275 85 725 O

1 2017 12 1 and 402 494 850 537 83 037 1 N

2018 500 145 981 038 78 185 2 41 PERFORMANCE INFORMATION 42 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 value montane grasslands and forest mosaics of the targeted arethe Pondoland Centre of Endemism, the high Eastern Cape interior grasslands. Key biodiversity features National Parks, around Addo National Park and the North Coast, the St Francis region, Mountain Zebra to Camdeboo Katberg-Amathole, the East London Coast, the Sunshine are Pondoland, Qhorha-Manubi, Greater Baviaanskloof, Strategy (2016), the main priorities inthe Eastern Cape According to the National Protected Area Expansion expansion targets. development with the requirement to meet allconservation of implementation priorities that balance the set need for a pragmatic represent areas priority identified The protection of certain vegetation types and ecosystems. The focus ison areas that address the gaps inthe level of the provincial Protected Area Expansion Strategy (PAES). The Eastern Cape’s provincial conservation plan guides Figure Protected Area Expansion 2.1.2

: Eastern 6:

BIODIVERSITY MANAGEMENT BIODIVERSITY

Cape

Protected

Area

Expansion

Strategy

Priority

Areas to formally declare their land as Protected Environments willingness and legal commitment of private landowners the beneficialThrough partnerships. mutuallydevelop to the ECPTA engages with private and communal landowners In order to expand the conservation estate inthe Province Strategy inorder to refine the main expansion priorities. a review of the Eastern Cape Protected Areas Expansion Endemism. During the reporting period the ECPTA initiated are issues insome areas such as the Pondoland Centre of threatens coastal areas. Mining and infrastructure projects are anissue inthe east, while coastal urban expansion and subsistence agriculture, new forestry programmes Pressure on these priority areas emanate from commercial and unique grasslands of the Southern Drakensberg. areas of the Sneeuberg region, and the under-protected remaining pockets of coastal forest and grassland, corridor Katberg-Amathole, the wetland complexes of Matatiele, Tracking Tool The (METT). tool has been inuse since 2000. internationally accepted Management Effectiveness and World-Wide Fund for Nature (WWF)developed the The World Commission for Protected Areas (WCPA) annually. protected areas through the METT-SA score it attains measures the success of its efforts to manage these all provincially declared nature reserves. The Agency ECPTA isthe designated management authority for Protected Area Management Environmental Conservation Act (Act 73 of 1989) on 19 received apositive Record of Decision interms of the African National Roads Agency SOCLimited (SANRAL), The N2Wild Coast Toll Highway, amajor project of the South after appropriate prevention and mitigation measures. development of the N2road that remain apparent even significant negative for residual impacts on compensate biodiversity arising from the to commitment the from The N2Wild Coast Biodiversity Offset project arises N2 Wild Coast Offset Biodiversity project management of the protected area. The ECPTA has adopted determining budgets and for assessing the success of the for which it was declared, to provide amechanism for the protected area ismanaged according to the purpose plan that isapproved by the MEC. This seeks to ensure that all protected areas inSouth Africa have amanagement Act (Act 57 of 2003) (NEM:PAA) -section 39 -requires that The National Environmental Management: Protected Areas the conservation estate inthe following year. hectares were submitted to the MEC in2019/2020 towards during the 2019/20 reporting period. Afurther 12 626.99 added to the conservation estate of the Eastern Cape 2018/19,in subsequentlywas andofficially declaredand submitted to the Member of the Executive Council (MEC) or Nature Reserves, atotal of 1748.18 hectares was 67%. thenational standard 67%.of Thefifteenth scored reserve areas managed by ECPTA have maintained scores above Marchin 2020. Fourteen (14) theof fifteen (15) protected METT-SA score decreased from 75% inMarch 2019 to 72% exceed the national standard, even though the average The ECPTA’s METT-SA assessment score continues to TheSA). third iteration was introduced in2015. In 2008 it was adapted for South African conditions (METT- consultation among others. and outreach, staffing, project included project commenced during the reporting period. Progress planning for implementation of the Biodiversity Offset delays, significant Following project. Offset Biodiversity with ECPTA as implementing agent for the N2Wild Coast implemented. Subsequently, signed SANRAL anagreement be considered, and that aBiodiversity Offset Agreement be April 2010. This required that all feasible alternative options under its management. its under Impact Assessment processes affecting Nature Reserves commented on Land Use Applications and Environmental planning tools. Inaddition, the ECPTA participated and/or mainstream biodiversity concerns into municipal Development Frameworks across the Province to Municipal Integrated Development Plans and Spatial development, the ECPTA participated inthe review of In contributing to integrated planning and sustainable near Port Elizabeth were reviewed and updated. Reserve on the Wild Coast and the Island Nature Reserve Protected Area Management Plans for Hluleka Nature consequently during the 2019/20 reporting period for each of the nature reserves under its management, a phased approach in reviewing the management plans 43 PERFORMANCE INFORMATION 44 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 at the Brakfontein project site. This work was funded by fence, buffalo boma, guard house and staff accommodation successfully concluded the construction of the perimeter From aninfrastructure development perspective ECPTA on this inthe next financial year. hasnowactivefive project continue sites will and buildto project inthe Raymond Mhlaba Local Municipality. ECPTA Sisulu Local Municipality and the Brakfontein community allocations. These were Krompoort farm in the Walter previously received game from ECPTA received additional Enoch Mgijima Local Municipality. Two existing sites that were delivered to anew project site, Mnembe Safaris inthe total of 183 allocated to this project. Most of these animals ECPTA successfully delivered afurther 181 animals out of a stewardship objectives inthe same space. achieving its transformation, black rhino conservation and high-profile species. the In process projectthis saw ECPTA achieve an important conservation outcome involving a landowners and communal landowners to work together to This project is significant in that it required the state, private employment and training opportunities. to the association, income from along-term lease, and that accrue the rhino in share a 50% including benefits this project the community were able to secure several were released. By incorporating of their part land into consolidated conservation area into which 20 black rhinos private landowners and ECPTA to create asingle large that saw the Yendella community partnering with four During 2019/21, ECPTA launched aninnovative project and partners on the ECPTA register. There arecurrently 75 potential transformation candidates basis, and providing advisor support to these farmers. available to emerging wildlife ranchers on acustodianship Wildlife Industry Transformation Forum, making animals is achieved by actively participating inthe Eastern Cape facilitate transformation inthe wildlife economy sector. This The Agency’s game industry transformation project aims to Economy Biodiversity wish to study inaconservation related field. communities adjacent to ECPTA managed reserves who a bursary scheme. to The scheme auction isavailable to members game of 2019 the on sold buffalo five from Agency allocated a portion (R113 000) of the revenue Finally, as of its part commitment to transformation, the development of alodge and supporting infrastructure. & Infrastructure Programme (EPIP) of DEFF for the million was secured from the Environmental Protection the registration of this property for buffalo. Afurther R15 Certificateissuancea of Adequate of Enclosure, well as as Fisheries (DEFF). ECPTA subsequently facilitated the the national Department of Environment, Forestry and within the Baviaanskloof. Reserve management are thus Rivers arethe main water sources for game species heritage Site isvery low. The Kouga and Baviaanskloof level of the Kouga Dam within the Baviaanskloof World to determine the status of large mammal populations. The will be conducted inthe winter of 2020 inthe Baviaanskloof have alleviated the situation to some extent. Game counts hoped that the rain that fell inthe early of 2020 part may numbers recorded during the last game count in 2017. It is affected, with substantial decreases inlarge game The Baviaanskloof World Heritage Site was particularly reserves, particularly inthe western of the part Province. The drought continues to have a serious effect on ECPTA and revenue generation in the 2019/20 financial year. negativeimpacts, which turnin influenced game off-takes The failure of good rains before winter exacerbated these affected game densities and condition inmany reserves. continued inthe Eastern Cape. These conditions have experienced across large parts of the country have for many parts of the world. The drought conditions illustratedAs above, 2019 was the hottest year on record Figure Drought

7:

Global

temperature

comparisons continue to monitor the situation closely. are more resilient than domestic animals. The Agency will generally well adapted to dealing with these conditions and large animal population numbers. Indigenous animals are ecological process and play animportant inregulating part however, important to note that droughts areanormal conditions can be expected to increase infuture. It is, that the intensity and duration of extreme weather out on nature reserves. Climate change models indicate consequences and continued monitoring isbeing carried Unusual weather conditions can often have unforeseen Heritage Site. World Baviaanskloof the for approach management fire for game species. This has resulted in a change in the significant ecological availabilityeffects grazingthe on of is had have that recorded fire vigilance been have fires Largeessential. increased and fires of intensity and distribution occurrence, the influenced have conditions are under consideration should the need arise. The dry monitoring the situation and appropriate interventions 45 PERFORMANCE INFORMATION 46 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 add additional security layers to the existing systems and surveillance system on high riskreserves isvital to threat. Supplementing the initial phases of the security Agency iswell prepared and equipped to deal with this poaching inthe future and it istherefore critical that the All evidence points to acontinued escalation inrhino complemented the Rhino Investment Bond in2019/20. surveillance system on its security reserves. This funding to ECPTA for the installation of an upgraded security and million R13.5 availed DEDEAT for MEC the year, financial five-yearinvestment beginning in2020. initial At the end of the previous an involve will This populations. rhino funds to improve management effectiveness of priority Bond, Investment which directs additional private Rhino and public-sector The mechanism, financing of London to demonstrate ascalable outcomes-based ECPTA has also signed aMoU with the Zoological Society very valuable partnership. a be to proved has This flights. security and monitoring Foundation interms of which they assist with rhino Memorandum of Understanding (MoU) with the Wilderness role inrhino conservation. To this end ECPTA concluded a budgets, these donors willplay anincreasingly important With the current economic situation and shrinking allocation from DEDEAT, and from key donors. from operational budgets, aspecial rhino security and security posts. Resources for this have been derived measures, and the creation of dedicated rhino monitoring and equipping staff, improving security protocols and on substantial investment ininfrastructure, training towards combating this threat. Attention has been focused necessitated the allocation of substantial resources The escalation of rhino poaching on ECPTA reserves has Security Reserve were successfully removed. 2019/20 yearfinancial the in removal recommendedfor contracted culling operator. Intotal 98%of the animals from culling, predominantly from animals culled by its without incident. ECPTA also generated good revenue platform, were successfully sold and the animals hunted hunting packages offered for sale, via the online auction not expected to change inthe foreseeable future. Allthe Capturecostshighprofitand are margins and is slim, this for females, have plummeted. has nevertheless changed and buffalo prices, particularly economy over the last few years. The market for live game the severe and protracted drought has had on the local of these animals was surprising given the impact that all delivered to buyers on schedule. The successful sale sale on its annual game auction and these animals were The Agency successfully sold allthe game offered for financial year. This was derived as follows: ECPTA generated R6.224 million from wildlife sales inthis Sales Wildlife approach isthat hospitality revenue would be increased developments on the reserves. The attractiveness of this opportunities to operate select activities and infrastructure This could be achieved through the private sector uptake of identifiedbeen potential as sector growth nodes. tourism cultural and historical heritage sites. These reserves have protected biodiversity and beautiful landscapes, as well as ECPTA manages 15 reserves that boast abundant wildlife, commercialisation inits provincial nature reserves. both the opportunity and challenge to implement The Eastern Cape Parks and Tourism agency has Commercialisation • • • •

Venison Hunting game Live Culling

R141 91 R2 607 97 R2 923 850.00 R550 504.18 4.15 1.70 level of 89.5 %from nature reserve guests. hospitality services. The Agency achieved asatisfaction focusses on satisfaction with our accommodation and hospitality package. The survey isconducted on-line and guests isagood barometer of the overall quality of our The bi-annual survey to determine the satisfaction of our additional picnic tables and benches for visitors. Silaka and Thomas Baines Nature Reserves and installing nature reserves which included upgrading of furniture at several improvements done to enhance facilities inthe grading status inthe year under review. There were also maintaining their Tourism Grading Council of South Africa of the hospitality team have resulted in16 facilities and motivate hospitality staff within the entity. The efforts this year. This annual event isakey platform to recognise The annual teambuilding for hospitality staff was again held Hospitality Services injection by DEDEAT in2019/20. Game drives willbe introduced following the stimulus fund Heritage Site, attracted 2084 participants inAugust 2019. flagship event a which takes place Baviaanskloofat World visitors. The Trans-Baviaans mountain bike ultra-marathon, activities inour nature reserves and attracted many private operators conducted several nature-based packaging as investment opportunities. During 2019/20 and game drives arebeing tested for feasibility ahead of opportunities for nature-based activities such as hiking In keeping with the Agency’s conservation mandate, Nature-Based Activities option. attractive be encouraged to make staying over inthe reserve an This suggests that longer duration activities willneed to there was adecline inaccommodation spend on reserves. the desired increase inrevenue generated from activities, supplement accommodation revenue. While there was new and revenue streams fromreserves, concessionaires’ activities would to traffic tourist increased to due government, and holds much promise. The strategy enjoys the endorsement of the provincial other operators across the provincial nature reserves. ECPTA looks to establish similar partnerships with towards the achievement of the project objectives. the preliminary works on site this year are positive steps The appointment of the main contractor and initiation of the World Tourism Indaba inDurban on the 2nd of May 2019. regainedprojectthewhenmedia briefingheld during was Positive seeds were sown inthe project and momentum viable investment opportunities. other investors that the provincial nature reserves offer implementation of this concession willsend asignal to a game-changer for tourism on the Wild Coast. Successful Mkambathi Matters (Pty) Ltd, and has the potential to be agreement between Mkambathi Land Trust, ECPTA and successes. The Mkambathi concession isbased on present opportunities to maximize returns from their These concessions are at different stages and still public-private partnership concessions: turn underperforming assets around. The entity has three attract private sector expertise and investment and also facilitatetoneed diversificationtheproduct revenue, and This aspect of the commercialisation strategy responds to Public-Private Partnerships projects within reserves as per Board-approved categories. only R2.3million for tourism related infrastructure allocate 2019/20to able the was year, financial ECPTA In InfrastructureReserve 3. 2. 1.

Baviaanskloof World Heritage Site Operation n of Mkambathi Nature Reserve Development aneco of Reser Operation arestaurant of atLuchaba Nature ve ature-based activities at -lodge andvilla at 47 PERFORMANCE INFORMATION 48 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 2. 1. following infrastructure programmes were implemented: ECPTA to enhance its People and Parks initiatives. The and biodiversity conservation initiatives, and enables the projects contribute to tourism infrastructure development behalf of National Departments. These externally funded allocation, ECPTA isalso implementer of several projects on projects funded from the Agency’s equitable share of infrastructure projects. In addition to these infrastructure Department isresponsible for successful implementation The Project Management Unit (PMU) of the Operations

• R57 million: Department of Tourism (NDT) funded) to the value of Bavia various nature reserves purification systems, and upgrades and alterations at systems, repairs and maintenance of water units and ablution facilities, installation of solar repairs and maintenance to staff accommodation with the adopted implementation plan. Projects include Proj through the equitable share by ECPTA Eleve •

ects to the value of R1.6 million areon schedule The Ba facilities. Appointment of the service provider three camps of the trail including the ablution and upgrade the 12-sleeper hikers’ huts inthe development. The project seeks to develop funded) islinked to the Interpretative Centre Bavia the appeal process conclusion. COVID-19 prevention measures (lockdown) and expected to commence in July 2020, subject to affected stakeholders. Construction works are writing, was under 14 days appeal period for approval was granted, and, at the time of construction services was concluded. EIA Appointment of aservice provider for the at the Western section of the Baviaanskloof. the interpretive and visitor information centre Interpretive Centre entails the development of anskloof World Heritage Site Project (National n (11) prioritised infrastructure projects funded anskloof Leopard Trail Project (NDT viaanskloof World Heritage Site (WHS)

4. 3.

to accommodate people with disabilities. accessibility to facilities within Dwesa Nature Reserve Development Corporation to add universal Dwesa Nature Reserve. • include: projects to be developed for these municipalities as Ndlambe Local Municipality. The infrastructure Municipality, Nyandeni Local Municipality as well of Mbizana Local Municipality, Port St Johns at various coastal beaches under the jurisdiction The proposed infrastructure projects areundertaken to commence with the planning and design services. ECPTA and professional service provider appointed First tr on behalf of various municipalities. funded) to the value of R21 million and implemented Infrastructure Development at Selected Beaches (NDT Infras • ECPTA’ The pr NDT Infr • lockdown has been lifted. concluded and activities to commence once and appointment of service for construction were budgets and plans done by Coega. Procurement provider. NDT made available R1.4 million based on

Johns to Coffee Bay) Kowie River Krantz recreational area, Middle beach and Infras beaches Planning for Mt Comp process conclusion. measures (lockdown period) and the appeal in July 2020, subject to COVID-19 prevention Construction works areexpected to commence to render construction services was concluded. tructure Projects –6Day Hiking Trail and s role isprocurement of aconstruction services anche of R10 million has been transferred to oject isbeing implemented by Coega astructure Projects – Universal Access at letion of the 6-day hiking trail (Port St tructure developments inPort Alfred at hentu beaches and Mzamba 7. 6. 5.

ECPTA rec Depar (EPWP). through the Expanded Public Works Programme game fencing material and installation of game fence (3) game fencing projects to supply and deliver 64km conservation infrastructure at reserves and three (3) turnkey projects for the upgrade of tourism and committed funds on six(6)projects including three and conservation infrastructure. The entity has The programme includes upgrades to both tourism 2019/20theQuarterof4ththeduring financial year. million. First tranche payment of R95 million received ECPTA rec Environm lifted. activities to commence once lockdown has been of service for construction were concluded and Nature Reserve. Procurement and appointment Environmental Education Centre at Thomas Baines (NLC) for upgrade, repairs and maintenance of the approved by the National Lottery Commission Grant fun Upgr Thomas Baines Environmental Education Centre lockdown has been lifted. and branding. They willbe delivered to each site once havebeen delivered tothe head office for conversion procurement of three (3) game drive vehicles which been lifted. The implementation plan also included work isto commence once the lockdown has provider was concluded inMarch 2020. The planning works and the appointment of a professional service commence its planning and design phase for the Marine and Coastal Cluster has been prioritised to includes plan clustering projects accordingImplementation to regions and the year. financial received during the 4th Quarter of the 2019/2020 million. First tranche payment of R6.9million was Provincial Economic Stimulus Fund 2019/20. Environmental Affairs and Tourism (DEDEAT) Programmes (EPIP) – 2019/20 MTEF (DEFF funding). ade -(National Lottery Commission funding) tment of Economic Development, ental Protection and Infrastructure eived approval of grant funding of R162 eived approval of grant funding of R42 ding to the value of R2million was Environmental Affairs (DEA). These programmes are: of Department the through funded are and financial year 2018/2019 the in started were year, financial this the Two programmes currently under implementation in Environmental Programmes ResponsibilitySocial

uMzimvubu Local Municipality. Nelson Mandela Metropolitan Municipality and Community Mhlontlo Nature Reserve, Mpongo Game Reserve, Office, Head ECPTA reserves, provincial in progress and on track. Students areplaced at all year). Implementation of the programme iscurrently and 227 recruited inYear Two (current reporting A total of 153 students were recruited in Year One March 2020 with anadditional budget of R3million. DEFF in December 2019, extending the project to 31 of R20 milli This isatwo-year project with anapproved budget (YES) Youth Programme Environmental Services con ECPTA received approval from DEA/DEFF for (NEMP) National Environmental Monitors Programme Reserves. Mkhambathi, Nduli/Luchaba and Ongeluksnek Nature Oviston, East London Coast, Dwesa-Cwebe, Silaka, Thomas Baines, Great Fish River, Mpofu/Fort Fordyce, they have been placed at Baviaanskloof, Groendal, process for these additional EMs was completed, and will be employed for this period. The recruitment R3 million. About 50 Environmental Monitors (EMs) year cycle (ending March 2022) with abudget of tinuation of the programme for the next three- on. Additional scope was approved by 49 PERFORMANCE INFORMATION 50 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Municipalities, WESGRO and Tourism KwaZulu-Natal. with Nelson Mandela Bay and Buffalo City Metropolitan Tourism Authority and further agreements inthe pipeline in place with Cape St Francis Resort and the Northern Cape marketing of the destination. The ECPTA has agreements increasing the destination footprint through third party Cooperative marketing agreements have been key to Province on afirst-hand basis. perceptions and increase product knowledge of the media and hosts familiarisation tours to ensure positive international visitors. ECPTA also engages the trade and awareness of allthat the Eastern Cape has to offer to traditional marketing techniques areused to raise tourism trade shows, sales agent training and other targeted initiatives such as joint marketing agreements, Through utilising the services of aCountry Representative, America, Australasia and the Nordic Countries. a secondary level markets include the United States of Kingdom, Germany and the Benelux Countries and on to the destination exists. Key markets include the United tourism markets where ahigh propensity of repeat travel tourism destination intargeted international trade and familiarity and knowledge of the Eastern Cape as aviable The ECPTA’s international programme aims to increase International Marketing into tourists. domestic visitors to the Province and to turning visitors is committed to increasing the number of international and or atourist, whose trip includes anovernight stay.” ECPTA same-day visitor, who visits aplace for less than one night, employed at the place visited. Avisitor can either be a for less than ayear, for any purpose other than to be takes atrip to aplace outside their usual environment, Statistics South Africa defines a“visitor” as “a traveller who 2.1.3

DESTINATION MARKETING tourism offerings directly to travel trade representatives. creates platforms for local product owners to present their South African Tourism Services Association the ECPTA with South African Tourism and associations such as the and professional conference organisers. Inpartnership destination to travel agents, tour operators, tour guides destination is presented as a business and leisure coordinated by private sector partners, where the The ECPTA also participates in travel trade workshops Port Elizabeth. shows inthe major cities of Cape Town, Johannesburg and Getaway, Outdoor Adventure and Adventure and Lifestyle and public sector partners to co-market with ECPTA at the The ECPTA further created marketing platforms for private as adestination of diverse attractions and experiences. objective to create brand awareness for the Eastern Cape CAPE”and“EPIC EASTERN “EXPLORE THEEC” with the main Key campaigns implemented for the year included the ambassadors and to participate inpromoting the Province. the residents of the Eastern Cape to become brand The Agency uses several campaigns to mobilise own “backyard”. EasternattractionstheCapeon their in thatfind theycan and Relatives (VFR)and to educate the residents of the 2019/20 was to continue to focus on those Visiting Friends in when family and friends arevisiting. The approach for can increase the number of tourism activities partaken having amore engaged, more knowledgeable resident base reasoning behind this approach isthat the implications of attractions that can be found intheir own “backyard”. The efforts on educating Eastern Cape citizens on the tourism Over the last few years, the ECPTA has focused its marketing citizenship. to contribute towards building and encouraging active from within South Africa. Domestically the ECPTA’s aimis Cape as ahigh percentage of tourists to the Province are The domestic market isof importance to the Eastern Domestic Marketing review included the following: Some of the key branding activities for the year under Eastern Cape as atourist destination. maintain apositive brand image for both ECPTA and the Province brand, has the responsibility to create and Department, as the custodian of the ECPTA Adventure In building astrong and reliable brand, the Marketing strategic alignment isrequired between allrole-players. commitment developing firm to a synergybe,should and ensure that the brand isindeed the asset which it can and brand is an indispensable and catalytic force. In order to In marketing the Province as apreferred destination, the Branding Instagram. media platforms such as Facebook, YouTube, Twitter and reserves, utilising both traditional and contemporary to increase the rate of occupancy of the provincial nature marketing campaigns aiming to create awareness for and Units of the Operations Department, ran anumber of with the Tourism Development and Commercialization The Marketing Department, working incollaboration landlocked reserves. accommodation rates areeven more affordable than the have to do with the pricing structure as the coastal reserve reserves when compared to the inland reserves. This may on the coast. There isaclear preference for the coastal to note that three of the top four reserves are situated Thomas Baines and East London Coast. It isinteresting popular Provincial Nature Reserves areHluleka, Silaka, Nature Reserves throughout the Eastern Cape. The most The ECPTA is mandated to manage and market Provincial Provincial Nature Reserves web, print and other media iscorrectly branded. all material that emanates from the Agency including Consisten stakeholders, the brand’s biggest asset, through Stakeholder suppor t brand management -by ensuring that t -engaging the support of

Operating Procedure. of aCorporate Identity Manual and aBranding Standard particularly the ECPTA logo, was developed inthe form of guidelines on how to use the brand design elements, maintains brand consistency across allplatforms aset Further to the above and to ensure that the ECPTA website. The new website was launched in November 0.11% growth. The ECPTA redesigned and developed its Websitetraffic stayed unchanged for the period, recording 71.56% and Instagram by 194.46%. this period Twitter following grew by 25.57%, Facebook by previous reporting period, showing agrowth of 380.90%. In platform posts secured 19 886 link clicks compared to the media content, grew by 172.42%. The ECPTA’s social media the ECPTA’s online community, with posted online social resulting inagrowth of 120.34%. Online engagement of 4 740 977 impressions across allsocial media platforms, the ECPTA’s social media marketing activities secured Spanning the period 1April 2019 to 31 March 2020, media community. above average growth inengagement from its online social by accompanied in reach, growth significant in resulted extension of campaigns onto various online platforms the period under review. The increase infollowers and of over 21 000followers across multiple platforms for following media social a secured has ECPTA The profiles. a website, mobile application and various social media and activities to promote the destination and Agency. platformsidentified suitable online has ECPTA the reach, channels and increase the ECPTA’s online footprint and In acontinued to effort utilize new digital marketing E-Marketing E CPTA established various online platforms that include Co-br recognised Brand South Africa. co-branding the Province with the internationally understood and promoted across the Province. paying attention to ensuring that the brand is anding - improving brand recognition through

The

51 PERFORMANCE INFORMATION 52 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 • • • • Eastern Cape: the for benefits economic following the to contributed signature events that took place inthe Province which For the year under review the ECPTA partnered with 11 Cape Province. and increasing visitor numbers to and within the Eastern tourism products, marketing the Province as adestination as acatalyst for facilitating the development of local signature and local events. The hosting of events isseen has to offer. Currently the Eastern Cape hosts various awareness of the opportunities that the Eastern Cape Cape as atourist destination due to lack of exposure or draw visitors who may have not considered the Eastern Events have proven to be aneffective marketing tool to Events Partnerships technologies and best practice. targeted social media campaigns and adopting of new marketing opportunities to increase impact through The ECPTA continues to grow and explore new digital media. itineraries and secured areach of 519 063 views on social Month. The campaign focused on Eastern Cape micro-trip very successful online campaign was during run Tourism The ECPTA concluded various online campaigns. Notably a downloads for the period. 2019. was launc preference on allprocured services b Local Number o Media e Number o

The Explore Eastern Cape mobile application that hed inDecember 2018 secured atotal of 770 xposure on several media mediums sns epcal SMs ee ie first given were SMMEs especially usiness f attendees -378 f jobs created –8074

778 benefits of these events. stakeholders should focus, to enhance the socio-economic in the past and isanarea upon which ECPTA and tourism doorstep. Leveraging these opportunities has been limited to make role-players aware of the potential on their information dissemination to the tourism trade, inorder to maximise these opportunities through increased spectators arealready inthe region. There isaneed opportunities for tourism, as the participants and significant provide Events basis. hoc ad an on Province promotion opportunities for events that took place inthe fromthe above Apart theECPTA identifiedalso destination in the Province. regions and to geographically spread the events offerings respective these to traffic driving on focusdeliberately The motive for partnering with these events isto Festival inCradock. Tenza Beach Festival in Willowvale, and Karoo Food three local events: OR Tambo Homage concert in Mbizana, Province. For the review period the ECPTA partnered with less than 7000people from other small towns around the areas. These events take place insmall towns and attract growth and have had tourism impact for their respective These are community events, and some have shown Local Events an impactful agency presence. campaigns utilising the two complimentary disciplines for marketing willbe integrated to deliver on cutting edge a stand-alone unit in the new structure where digital The Communication and Public Relations function becomes multiple media platforms as per synopsis below: promotion and conservation over various regions on key business focus areas of its dual mandate of tourism profiled also initiatives PR ECPTA’s 53.3%. at favourable sentiment for the agency’s public perception analysis was R70 642 45 179 754 and Advertising Value Equivalent of Communication function delivered anorganic reach of and PR 2019/20 ECPTA’s year financial the during tools Through utilising effective communication tactics and the Eastern Cape as atourist and conservation destination. to nurture apositive reputation for both the Agency and objectives effectively to different target audiences. It aims unit isto communicate ECPTA’s mandate, vision, and The purpose of the Corporate Communication and Media Corporate Communication andMedia Cape through engagement with convention planners and incentives, conventions and events (MICE) to the Eastern made aconcerted to effort bring more business meetings, events tourism sector: Firstly, the Marketing Department facilitate the growth and development of the business key areas of intervention which the ECPTA has taken to Province as abusiness event destination. There aretwo ECPTA has taken adecision to aggressively promote the for the Eastern Cape. Business tourism is, therefore, astrategic tourism sector flows. talent and investment attract term, longer a over knowledge and ideas, build business relationships, and, have the potential to draw people together to exchange knowledge and creative economy. Business events skills development and transformation of the nation’s business events industry isamajor driver of job creation, There isagrowing recognition inSouth Africa that the Business Events

373 fo r its PR endeavours during the year. The

position the Eastern Cape as abusiness centre. Frankfurt which was agreat platform to market and at IMEX 2019 participated also time first the for ECPTA Summit to mention afew. Radio Conference, Black Business Forum and the 15th ICT partnered with for the year under review were the World available. Some of the key business events that the ECPTA cost-effective opportunities to explore it inthe limited time surrounding region, as well as providing easy, low riskand attractive and easy-to-access information about the provided the business traveller with comprehensive, stay packages. Further to this the Department also engaged with product owners to offer attractive extended become business tourists. The Marketing Department potential of business travellers by enabling them to Secondly, there has been to aneffort maximise the effectively marketing the destination at trade shows. 1 A P N N M 2019 1 2020 1 2 21 2 21 1 53 PERFORMANCE INFORMATION 54 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 that are supporting business processes, a successful Information Technology infrastructure, and the applications information. With the dependency of business on to ensure instant access to accurate and up to date Key to the success of business operations isalways internal human resources. communities that surround our reserves and augment our (YES) program have allowed development of youth inthe fees. Projects such as the Youth Environmental Services and more importantly to harness project management from National Departments to fund infrastructure projects streams, the Agency has needed to leverage resources and reduced own revenue from traditional revenue Due to the shrinking funding envelope inthe Province 2.2 impactful, measurable, and comparable over time. Agency’s tourism development and marketing efforts are and marketing. The remit of the unit isto ensure that the effective decision making around tourism development Tourism Information and Research arecritical tools for Tourism Information andResearch

ORGANISATIONAL ENVIRONMENT A C EA ROUP LPOUNTEA ROUP C T R T D activities and how to handle such. that employees arecapacitated to identify malicious cyber awareness sessions are conducted quarterly to ensure processes and technology. Inthe ECPTA context, cyber It iscritical to get the balance right between people, potential impacts, and possible controls. are conducted to identify threat sources, vulnerabilities, the above, network analysis scans and penetration tests of successful cyber-attacks areminimised. Inaddition to virus, anti-spyware, anti-spam and others, the chances anti- system, management firewall as such measures goals of the ECPTA. However, by intensifying control jeopardise the successful implementation of the strategic cyber-attack would be disastrous. Cyber threats continue to are under consideration. scarcity of related skills. Alternatives to direct recruitment tourism research and information function due to the TheECPTA hasdifficult found itestablish to fully-fledged a 1 2 10 2 highest possible standards for the entire strategic period investment option by executing our mandate to the To improve the attractiveness of the ECPTA as an Goal purpose priorities To leverage resources for tourism and conservation Goal statement Resource Mobilisation Strategic Goal future for the Province. a sustainable securing towards contribution its defines that underscores the ECPTA Act. The Agency’s Strategic Goal The intention isto promote the desired unity of purpose The ECPTA has continued to pursue asingle strategic goal. 2.4 the Bill resulted inminimal progress during 2019/20. Delays inappropriately canvassing input for translation of for introduction to the Eastern Cape Provincial Legislature. endorsed the Eastern Cape Parks and Tourism Bill, 2019, During March 2019, the Provincial Cabinet Committee comments have been addressed inthe subsequent Bill. was published for public comment inFebruary 2018 and since 2010. The Eastern Cape Parks and Tourism Bill 2018 Boards) and accommodate updates to umbrella legislation on transition (amalgamation of the Parks and Tourism The review was necessary to migrate from the emphasis Parks and Tourism Agency Act (No 2 of 2010) in 2017. DEDEAT initiated the process of reviewing the Eastern Cape 2.3

STRATEGIC OUTCOME ORIENTED GOALS POLICY DEVELOPMENTS CHANGES ANDLEGISLATIVE KEY concern. need to doubt the Agency’s ability to continue as a going future claims. Management has therefore not seen the permitted to retain funds to build up reserves to mitigate funder of any claims that may arise, and the entity is not the Provincial Government isultimately the guarantor and of the Public Finance Management Act. This means that claims. The entity isaSchedule 3CPublic Entity interms especiallyparties,thirdby against thoseitrelating fire to The entity isaware of the pervasive nature of the claims of mandated services. establishment of partnerships to ensure ongoing delivery Provincial governments have put an emphasis on the economic outlook for the country, both National and The ECPTA has noted that, inacknowledging the fragile (ii) (i) on the ECPTA to continue to achieve its stated purpose of aScheduleAs 3Cpublic entity, this puts enormous strain reverse.themeantime,In thefiscal envelope shrinking. is several years willtake longer than originally expected to All indications arethat the economic decline of the past Justification

in the Province. prom deve loping and managing protected areas and oting and facilitating the development of tourism 55 PERFORMANCE INFORMATION 56 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 1. Progress against priorities 2.

• • • • in the country management authority of declared nature reserves Maintain • Province ranking as adomestic tourism destination for the Work to • • •

ranking through 2018/19 and 2019/20 to 5th place in2017/18, and retained this at 4th place in2016/17. The Province lost ground The pe Inten tourism experience on reserves projects and game drive vehicles to enhance the Agency to invest in high value infrastructure towards the end of 2019/20 has allowed the Inves While the p of 10 reserves inthis category of achievement exceeded by 14 reserves, surpassing the target The 67 The av for three reasons: tourists put the Eastern Cape at adisadvantage Inter The P than-expected revenue from this source of game available for auction, resulting inlower- reserves in2019/20 unnatural deaths of high value species inECPTA law enforcement partners, has resulted inno through collaboration with environmental decline on the average score across allreserves will not be sustained. Infact there was a3% economy over the next two years, these levels in reserve infrastructure and the biodiversity investmentsignificant concernedwithoutthat, for allreserves managed by ECPTA was 72 wards regaining atop-three Tourism SA (SAT) -provincial competition for domestic iiain f nipahn efforts, anti-poaching of sification rovince’s domestic tourism ranking peaked tment from the Provincial Stimulus Fund the ECPTA’s position as the leading rsistent drought has impacted the quality erage annual METT-SA assessment score % METT target% METT set nationally was erformance issatisfying, ECPTA is 3.

• • • participation by previously disadvantaged individuals Tourism sectors and open both up to mainstream • • Inten

took place in the first half of the 2019/20 the of financial year half first the in place took Farm programme (Provincial). The translocation Expansion Project (International) and the Game site as of both part the Black Rhino Range translocation of rhino to anew transformation the Provincial Cabinet granted approval for the established inthe 2prior years for transformation of the conservation sector Follo marketing efforts airport inthe Province undermines international absence of asingle functional international with respect to international tourists, the While the - - Changin Toward In 201 of the year wasapproved bythe Board atthe finial meeting latter part of the financial year. The new strategy the provincial tourism strategy took place inthe in the middle of 2019/20, the planned review of - transformation of the Tourism Sector. Awards isthe most obvious marker of successful and participants of the annual Lilizela Tourism sify efforts to transform the Conservation and

wing intensive stakeholder engagements destinations that arecloser to home holidaycausedfind domestictravellers to When th are holidaying years means that fewer domestic tourists The sluggish e The high for leisure and recreation significantly less disposable income to use that citizens of the Eastern Cape have 9/20 ECPTA built on the strong foundation s the end of the previous financial year,financial previousthe of end the s g demographics of provincial winners Province has sustained its numbers ey do, the rising fuel price has er unemployment rate means conomy of the past several Figure

8:

Relative mandate tothehighestpossiblestandardsforentirestrategicperiod” “improving O R / E - - -

row. row. a in year fifth the for finalists andentries had the highest number of provincial dropped countrywide, the Eastern Cape year inarow with 15 national winners East owned products over half the entries in2019 were PDI- inaugural competition in2013. By contrast, the Eastern Cape participated inthe Only 1(1.3 Altho contribution ern Cape led Lilizela for the second ugh the numbers of entries have

the 3%) PDI-owned business from

of attractiveness diversified 100

10 20 0 0 0 0 0 0 90 revenue 0

of sources

the 01 01 01 01 2019/20 201/19 201/1 201/1 201/1

over ECPTA the

MTSF

as

period an succeeded in succeeded budget mixisanemphatic statement that the Agency has tourism spheres) and private sector funders. The 2019/20 from National Departments (inboth environmental and has steadily declined. The balance has been leveraged proportion of the budget from the equitable share allocation has hovered at around 10% over the period, while the The contribution of “own revenue” to the Agency’s budget mix over the period. achieved, it isnecessary to consider the funding Agency’s resources for tourism and conservation priorities” was In order to assess if the five-year strategic goal “to leverage Outcome

investment

(2015/16

–

2019/20)

option

by

executing

our

57 PERFORMANCE INFORMATION 58 3 PERFORMANCE INFORMATION BY PROGRAMME

The planning and reporting framework prescribed by National Treasury for public sector bodies relies on iterative and inter-related components.

The developmental results of achieving specific IMPACTS Manage towards outcomes. What we aim to change? 1 achieving these The medium term results for specific beneficiaries results that are the consequence of achieving specific 2 OUTCOMES outputs. What we which to achieve The final products, or goods and services produced for delivery. What we produce or deliver? 3 OUTPUTS Plan, budget, The process or actions that use a range of inputs implement & to produce the desired outputs and ultimately 4 ACTIVITIES monitor outcomes. What we do? The resource that contribute to the production and delivery of outputs. 5 INPUTS What we use to do the work?

Figure 9: Key performance information concepts Framework for Strategic Plans and Annual Performance Plans; ANNUAL REPORT 2019/20 AGENCY AND TOURISM EASTERN PARKS CAPE National Treasury, August 2010)

Measures used to determine the success of performance for index scores this translates to 2.7 (90% of 3 = 2.7). at each level differ considerably and are often difficult These levels correspond to the performance categories to compare. To address this incompatibility, ECPTA introduced by DEDEAT as the shareholder department. uses indices to enable an obvious correlation between organisational level OUTCOMES and operational level ECPTA Management defines Index Scorecards at the OUTPUTS and ACTIVITIES. start of the year. To achieve an index value of 3 at the APP level, all contributing Operational targets must be Where appropriate, several related performance indicators achieved. Similarly, an index score of 3 at the Strategic combine into summative indices. Where ECPTA uses an Objective level requires achievement of all underlying APP index as a unit of measure, the performance levels are 3-2- targets. Indicators carry weights according to their relative 1 as illustrated in the block alongside. The ECPTA Board only importance and complexity. accepts performance at 90% and above as satisfactory, so

Score 1 = Not Achieved Performance result ≤ 70% of target

Score 2 = Partially achieved Performance result > 70% and < 90% of target KEY TO PERFORMANCE STATUS

Score 3 = Achieved Performance result ≥ 90% of target Figure 10: strategic objective. left illustrates unweighted performance inrelation to each The Agency achieved 90.4% of alltargets. The graph to the Performance was recorded against two dormant indicators. indicators across the three planning levels in2019/20. The Agency was responsible for 167 performance 4.1 3.3 3.2 3.1 2.1 1.4 1.3 1.2 1.1 In 2019/20, ECPTA continued to strive for the achievement of nine strategic objectives:

period To ens To mob To maint To dev To ens To enco MTEF period To enco To expan To impl throughout the MTEF period objective in2019/20 overall performancebystrategic Graphic representationof elop provincial nature reserves as tourism products throughout the MTEF period ure that the Province isranked inthe top three most-visited destinations inthe domestic market by 2020 ure the organisation’s ability to meet its mandate by providing cross-cutting support services throughout the MTEF ement adecision support system for biodiversity management inthe Province throughout the MTEF period ilise resources for tourism and conservation development on reserves throughout the MTEF period urage participation of previously disadvantaged individuals inthe mainstream tourism industry throughout the urage participation of previously disadvantaged individuals inthe conservation and game farming industries ain effective management of protected areas throughout the MTEF period S P N A A d the protected area system as mandated throughout the MTEF period strategic and performance outcomes. requirements to include operational results inaddition to Annual Report therefore deviates from the stipulated understanding of the underlying operational intent. This an without value limited of these objectives,finds ECPTA are limited to strategic and annual performance While the stipulated requirements for Annual Reports 59 PERFORMANCE INFORMATION 60 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 • • • Key functions Operations of Programme Structure (2015/16 five-year Strategicthe Plan to 2019/20). to The intentional streamlining of mandated activities according Tourism Development. The amalgamation isaresult of the Biodiversity Conservation, Reserve Operations, and three previously disconnected departments namely Programme 1:Operations isanamalgamation of Purpose 3.1.1 3.1

Agency. management, strategy, and decision making inthe planning support to guide and inform biodiversity of permits. as prescribed by legislation, including the acquisition investigations, and prosecution of criminal offenses, regional tourism routes and the ECPTA reserves. implementing, and extending the expansion of the Provi Imple ECPTA Strategically and operationally manage of the

de professional scientific information and information scientific professional de ment and support wildlife protection regulations, PROGRAMME 1:OPERATIONS DESCRIPTION OF PROGRAMME ’s regional (cluster) operations by managing, Operations Project Management Regions &Reserves (Commercialisation) asProductsReserves Anti-Poaching Destination Development Protected Area Expansion Services Scientific • • • • • of infrastructure and facilities. tourism development, and management and development management, protected area planning and expansion, species management, reserve security, biodiversity units within the programme combine to deliver protected •

Safety legislation. commercial tourism-related activities. facilitate co-management agreements. through stewardship. within the Province. Manag Ensure co Facili of reserves and social responsibility projects). associated with reserves (through co-management Manag Facili Lead Provincial Tourism Development ManagementWildlife Game Industry Transformation and Game Management andRecreation Marine andCoastal andHeritageBiodiversity TourismReserve Development tate the utilisation of reserve facilities for tate access to the biodiversity economy and efforts to expand the protected area estate e relationships with ECPTA’s stakeholders e and support the engagement of communities mpliance with Occupational Health and Figure 11 responsible: objectives for which the Operations Department is and operational indicators that contribute to the strategic These key functions combine to deliver on performance objectives indicators fortheOperationsDepartment strategic Relative weightedcontributionofperformance

(towards the centre of the figure) 61 PERFORMANCE INFORMATION 62 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Provincial Nature Reserves. planning and environmental management inrelation to the Stewardship Programme and supports conservation The Protected Areas Expansion unit implements the provincial and national protected area expansion targets. a continued supply of ecosystem services and reaching the Province. Indoing so ECPTA contributes to facilitating a suitable representative sample of the biodiversity of expanding the protected area system inorder to conserve The ECPTA Act (2of 2010) mandates the entity with system as mandated throughout the MTEF period. Strategic Objective 1.2: To expand the protected area Protected Area Expansion sub-programme executes the following key functions: based on and informed by good science. To this end, the the management and expansion of the protected areas is that ensure to is Services Scientific of function core The throughout the MTEF period. system for biodiversity management inthe Province Strategic Objective 1.1: To implement adecision support Services Scientific programme or unit. Strategic Objectives, each delivered by adesignated sub- Programme was responsible for the achievement of seven Operational Plans. During the year under review, the on work detailed inAnnual Performance Plans and Annual As indicated in the figure, each strategic objective is reliant 3.1.2 Index Decision Support Biodiversity Indicator Title Objective Strategic

STRATEGIC OB score) 3 (index 2018/2019 Achieved Actual JECTIVES score) 2.7 (index 2019/ 2020 Target Planned score) 3 (index 2019/2020 Achieved Actual the Province. The objectives of the unit areto: secured the declaration of approximately 190 000ha for development imperatives. To date this programme has areas, while also addressing socio-economic and rural agreements and formal declaration of protected biodiversity features and ecosystem services through Biodiversity stewardship contributes to securing private and communal landowners or users. assets inpriority areas through voluntary agreements with land isstewardship, which aims to secure biodiversity for protected land area expansion. Theto purchase key alternative to purchasing funds insufficient has state The 7. 6. 3. 2. 1. 8. 5. 4. points) + 0.3(index for 2019/2020 Actual Achieved planned target to Deviation from Suppor Devel Advice and Support Provid Manage b Devel Devel Manage an management decisions support Condu Expansion conservation initiatives, including Protected Area and strategies and op biodiversity management policies, plans, op and review subsidiary management plans op and implement monitoring programmes e Ecological and Environmental Management ct priority research to guide, inform, and t Provincial and National biodiversity iodiversity data d facilitate external research achieved and Planning consistently to Research, Monitoring All underlying indices relating Comment ondeviationsComment to leverage benefits from events held in their localities. associations and businesses, and preparing communities providing tourism interventions / support to tourism of the sector through providing market access to SMMEs, Disadvantaged Individuals (PDIs) reach the mainstream ensure that emerging enterprises owned by Previously with the process. Transformation programmes seek to over time, some interventions arenecessary to assist organic growth intransformation willoccur inthe industry future success of the industry. Whilst a certain degree of Transformation of the tourism industry iscritical to the reserves. intentional attention to developing the tourism capacity of industry inthe Province. Since 2016/17 this has included the ECPTA Act 2of 2010 and focuses on developing the The Destination Development Unit draws its mandate from tourism industry throughout the MTEF period previously disadvantaged individuals inthe mainstream Strategic Objective 1.3: To encourage participation of Destination Development 5. 4. 3. 2. 1. target Provincial PAES Indicator Title Objective Strategic

Engag Suppo ECPTA Expand an Maintain aR Expansi Implement the Eastern Cape Protected Area areas for conservation demarcate boundaries of protected areas e with landowners and communities inpriority rt processesrt to check (verify), rectify and on Strategy (PAES) d consolidate protected areas managed by egister of Protected Areas (PAs) 1 2018/2019 Achieved Actual

748 h 000h 12 10 000ha a 2019/2020 Target Planned 2019/2020 Achieved Actual

627 h +2 a Program. compliance and implementing the Tourism Lilizela Awards Responsibilities include facilitating tourist guide warmth of the people and superior service excellence. visitor leaves the destination having experienced the The quality assurance efforts seek to ensure that every tourism. jobs, and implementing initiatives to empower youth on tourism awareness, facilitating seasonal tourism safety by implementing tourism support programmes, creating The unit further seeks to support the tourism industry • • • • products. ECPTA supports this by: it has to offer unique, diverse, and good quality tourism For the Eastern Cape to compete with other destinations, 11. 10. 9. 8. 7. 6.

for 2019/2020 Actual Achieved planned target to Deviation from community tourism projects Asse Leve Suppo Sign PA Man Manag Asse Rese Unde Deve Deve Areas Act the National Environmental Management: Protected with the requirements of legislation, inparticular

627 h rage access to incentives for landowners ss the implementation of PA Management Plans ss the biodiversity importance of candidate sites rve signagerve loping Reserve Tourism Development Plans loping Tourism Development Concept Plans rtaking collaborative efforts to support rt landownersrt to develop PA Management Plans e processes to declare protected areas, inline a agement Agreements with landowners Comment ondeviationsComment 63 PERFORMANCE INFORMATION 64 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Responsibilities include: Destination Development unit and Marketing department. and revenue opportunities, working closely with the efforts aimed at increasing adventure experiences it was incubated in2018/19. where It spearheads CEO commercialisation the of Office the from migrated unit reserves as tourism products throughout the MTEF. The Strategic Objective 3.1: To develop provincial nature Commercialisation on three related areas: implements biodiversity economy initiatives by focusing The Game Industry Transformation and Management unit scientific strict planning and monitoring. to subject is sites, transformation to because the management of game, including Services translocation Scientific under falls unit Management Game Operationally, the Game Industry Transformation and and game farming industries throughout the MTEF previously disadvantaged individuals inthe conservation Strategic Objective 1.4: To encourage participation of Game Industry Transformation andGame Management economy index economy Biodiversity index development tourism Provincial Indicator Title Objective Strategic Indicator Title Objective Strategic score) 2.7 (index score) 3 (index 2018/2019 Achieved Actual 2018/2019 Achieved Actual score) 2.7 (index score) 2.7 (index 2019/2020 Target Planned 2019/2020 Target Planned score) 3 (index score) 3 (index 2019/2020 Achieved Actual 2019/2020 Achieved Actual • • • • • • •

points) + 0.3(index points) + 0.3(index for 2019/2020 Actual Achieved planned target to Deviation from for 2019/2020 Actual Achieved planned target to Deviation from hospitality service improvements activities) on reserves partners through concessions Resp Managin Iden In Facili pro Implementing the game farm transformation in the Province mentoring within the established game farm industry ECPTA-owned game on their farms enter into acustodianship agreement to manage Ensuring resolution transfers) areimplemented according to Board recommendations (including transformation trod gramme, whereby emerging black game farmers tifying and contracting commercialisation onding to customer feedback by initiating tating transformation initiatives such as ucing commercial activities to reserves g hospitality services (accommodation and that the game management Consistent performance tourism plans fully achieved Standards and Reserve-based Industry Support, Service Development, Product to All underlying indices relating Comment ondeviationsComment ondeviationsComment responsible for managing, implementing, and extending reserves, regional (cluster) and reserve management are to managing the conservation of ecosystems on effective management of protected areas. Inadditional The Reserve Operations section isrequired to maintain OperationsReserve three regions according to their dominant niche: and facilities on reserves. Reserves areclustered into conservation and tourism, and to manage infrastructure effectively, to maintain aregional presence for both manage the protected areas for which ECPTA isresponsible ECPTA deploys the Regional-Reserves Cluster approach to of protected areas throughout the MTEF period Strategic Objective 3.2:To maintain effective management Regional Clusters Reserve Cluster Products as Reserves Indicator Title Objective Strategic Nature Reserve RegionalIsland Office: andHeritageBiodiversity London EastRegional Office: Recreation Game Management and Nature Reserve RegionalNduli Office: Marine andCoastal (index score) 2.8 2018/2019 Actual Achieved Niche tourism interest and educational Opportunities for special reserves Iconic special interest for hunting, holiday and Offer market opportunities and recreational users Opportunities for educational Good fit with holiday visitors (index score) 2.7 2019/2020 Planned Target

Reserves & Waters Meeting Thomas Baines Island Groendal Great Fish River Baviaanskloof East London Coast Oviston Ongeluksnek Mpofu /Fort Fordyce Tsolwana /Commando Drift Silaka Mkhambathi Hluleka Dwesa Cwebe Nduli Luchaba (index score) 2.7 2019/2020 Actual Achieved criminal offenses as prescribed by legislation. protection regulations, investigations, and prosecution of perspective, they also implement and support wildlife the ECPTA reserves. Importantly from aconservation the expansion of the regional tourism routes, including (index points) 0.0 for 2019/2020 Actual Achieved planned target to Deviation from Routes Frontier Country River Valley, Karoo Heartland, Kouga, Tsitsikamma, Sundays Karoo Heartland Friendly N6,Frontier Country, Amathole Mountain Escape, Sunshine Coast, Wild Coast No deviation deviations on Comment 65 PERFORMANCE INFORMATION 66 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Key performance indicatorsKey performance (KPIs) perAnnual Performance Plan throughout the MTEFperiod Strategic 1.1: Objective To system implement adecision support for biodiversity management inthe Province 3.1.3 emphasised to offset the growing backlog. the dwindling infrastructure budget, maintenance is and maintenance on all ECPTA-managed reserves. With planning and executing allinfrastructure implementation The Project Management Unit is responsible for designing, Project Management Index Planning Ecological Index Monitoring Biodiversity Index Research Biodiversity Support Index Support Decision Biodiversity METT-SA Score METT-SA Indicator Performance Indicator Title Objective Strategic

KEY PERFORMANCE INDICATORS,KEY TARGETS PLANNED ANDACTUALACHIEVED score) (index 3 score) (index 3 score) (index 3 score) (index 3 2016/2017 Achieved Actual 5(cr)7 soe 2(cr)-3(score) 72 (score) 75 (score) 75 (score) 2018/2019 Achieved Actual score) (index 3 score) (index 3 score) (index 3 score) (index 3 2017/2018 Achieved Actual 2019/2020 Target Planned score) (index 3 score) (index 3 score) (index 3 score) (index 3 2018/2019 Achieved Actual 2019/2020 Achieved Actual score) (index 2.7 score) (index 2.7 score) (index 2.7 score) (index 2.7 2019/2020 Target Planned for 2019/2020 Actual Achieved planned target to Deviation from 2019/20. opportunities per quarter inmostly rural communities in unit contributed to sustaining anaverage of 278 work Affairs, Forestry and Fisheries (DEFF). Consequently, the deployments on behalf of the Department of Environmental co-ordinating Youth Environmental Service (YES) The unit isresponsible for securing, contracting, and ResponsibilitySocial score) (index 3 score) (index 3 score) (index 3 score) (index 3 2019/2020 Achieved Actual maintenance infrastructure, equipment and inadequate investment inreserve in scoring methodology and Declines attributed to changes Comment ondeviationsComment points) (index + 0.3 points) (index + 0.3 points) (index + 0.3 points) (index + 0.3 2019/2020 target for planned from Deviation achieved targets All operational achieved targets All operational achieved targets All operational achieved indices fully All underlying deviations on Comment Operational indicators performance KPIs supporting recommendations Annual game management developed Ecological management plans clgclPann ne 20% of BDS Index developed Species management plans Ecological Planning Index Monitor annual game off-takes completed Priority taxon monitoring Game census completed idvriyMntrn ne 40% of BDS Index Ecological monitoring conducted Biodiversity Monitoring Index conducted Taxon surveys New taxon inventories developed conservation Develop systems to support reserves Manage external research on knowledge gaps Research to fill identified 40% of BDS Index Establish priority research agenda Biodiversity Research Index (BDS) Index DecisionSupport Biodiversity Indicator Operational Performance Key Performance Indicator 32 33 35 20 0# 30 30 20 index (%) in Weight 30 20 20 10 10 10 No(0) Yes(1) / 1 # 1 # No(0) Yes(1) / No(0) Yes(1) / 4 # measure Unit of Yes (1)/ Yes(1) / No(0) No(0) No deviation 1 1 # # 6 5 3 # 2 # 1 1 11 1 2019/20 Target Planned 020 20 No deviation 1 1 No deviation 1 1 3.0 (average quarterlyindexscores) of 2019/20 Achieved Actual . (average of quarterly index scores) 3.0 . (average of quarterly index scores) 3.0 . (average of quarterly index scores) 3.0 12 No deviation 1 No deviation 1 No deviation 1 No deviation 1 No deviation 1 No deviation 4 No deviation Comment ondeviationsComment 67 PERFORMANCE INFORMATION 68 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Operational indicators performance KPIs supporting indicatorsKey performance perAnnual Performance Plan Strategic 1.2:To Objective expandthe protected area system asmandated throughout the MTEFperiod 1

implementation programme Stewardship target Strategy (PAES) Expansion Protected Area Provincial implementation support planning Integrated Indicator Performance Management Plans (PAMPs) Update Protected Area processes Participate inpriority EIA processes municipal biodiversity planning Provide support to provincial and Integrated planning support implementation protected area management plans Assess annual implementation of stewardship sites Negotiate agreements for stewardship sites Manage declaration processes for St Provincial Protected Area ExpansionStrategy target Indicator Operational Performance Key Performance Indicator ewardship programme implementation UnitofmeasureIndex:Yes(1)/No(0) in2016/17and2017/18.Standardformofindexfrom2018/19 1 ha 0 No(0) Yes(1) / 1 2016/2017 Achieved Actual No(0) Yes(1) / 1

67 ha No(0) Yes(1) / 1 2017/2018 Achieved Actual No(0) Yes(1) / 1

887 20 25 25 25 35 40 index (%) in Weight

ha 1 score) (index 3 2018/2019 Achieved Actual score) (index 3

No deviation 2 2 # 748 No(0) Yes(1) / No(0) Yes(1) / No deviation 4 4 # No deviation 4 4 # No deviation 1 1 # measure Unit of No deviation 1 1 No deviation 1 1 2020 2019/ Target Planned 1 score) (index 2.7 2019/2020 Target Planned score) (index 2.7 0

000 ha 3.0 3.0 12 2020 2019/ Achieved Actual

627 ha ha 12 score) (index 3 2019/2020 Achieved Actual score) (index 3

627 (average of quarterly index scores) scores) (average quarterlyindex of Comment ondeviationsComment + 2 points) (index + 0.3 2019/2020 target for planned from Deviation points) (index + 0.3

627 h a on farm size based tions Proclama achieved targets operational All deviations on Comment achieved targets operational All - 2 indicatorsKey performance perAnnual Performance Plan tourism industry throughout the MTEFperiod Strategic 1.3:To Objective previouslydisadvantaged encourage participationof individuals inthe mainstream

tourism plans Reserve-based standards Tourism service support Tourism industry development development tourism Provincial Cape P Provincial Protected Area ExpansionStrategy target Indicator Operational Performance development Tourism product Indicator Performance Key Performance Indicator reparation of PAES for the Eastern

Unit ofmeasurechangedfrom2016/17 tothestandardformofindexusedformost otherindicators. N/A No(0)) (Yes(1) / 1 No(0)) (Yes(1) / 1 No(0)) (Yes(1) / 1 No(0)) (Yes(1) / 1 2016/ 2017 2016/ Achieved Actual 2 score) (index 2.7 score) (index 3 score) (index 3 score) (index 3 2017/ 2018 2017/ Achieved Actual score) (index 3 10 index (%) in Weight

score) (index 3 score) (index 3 score) (index 3 No(0) Yes(1) / score) (index 3 2018/ 2019 2018/ Achieved Actual measure Unit of score) (index 3 No deviation 1 1 2020 2019/ Target Planned score) (index 2.7 score) (index 2.7 score) (index 2.7 score) (index 2.7 2019/ 2020 Target Planned score) (index 2.7

12 2020 2019/ Achieved Actual

627 ha score) (index 3 score) (index 3 score) (index 3 score) (index 3 2019/ 2020 Achieved Actual score) (index 3 Comment ondeviationsComment points) (index + 0.3 points) (index + 0.3 points) (index + 0.3 points) (index + 0.3 2019/ 2020 target for planned from Deviation points) (index + 0.3 achieved targets operational All achieved targets operational All achieved targets operational All achieved targets operational All deviations on Comment achieved fully indices underlying All 69 PERFORMANCE INFORMATION 70 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Operational indicators performance KPIs supporting program Implement Tourism Lilizela Awards program Implement tourism monitors aiiaetuitgiecmlac 30 Facilitate tourist guide compliance ors evc tnad 30%of PTD Tourism service standards Reserve signage Reserve development plans development Develop reserve tourism eev-ae ors ln 15% of PTD Reserve-based tourism plans youth on tourism Implement Initiatives to empower jobs Number of seasonal tourism safety program Implement tourism support ors nutyspot30%of PTD Tourism industry support Organisations (LTOs) attractions /Local Tourism Install signage to tourism tourism projects Provide support to community raetuimaaees3 # 30 Create tourism awareness ors rdc eeomn 25% PTD of Tourism development product Provincial Tourism Development (PTD) Indicator Operational Performance Key Performance Indicator 35 0# 30 50 50 35 25 40 0% 30 40 index (%) in Weight % No(0) Yes(1) / % No deviation 1 1 # 6 # # 8 # % measure Unit of 90 180 No deviation 1 1 90 120 90 90 12 2019/20 Target Planned 100 174 . (average of quarterly index scores) 3.0 100 . (average of quarterly index scores) 3.0 10 121 10 100 . (average of quarterly index scores) 3.0 100 17 3.0 3.0 (average quarterlyindexscores) of 2019/20 Achieved Actual some participants had dropped out only resolved inQ4, by which time Contractual difficulties with NDT All plans fully executed opportunities staff to maximise collaboration Deviation reflects commitment of participants product owners and LTO increased motivation among interventions have resulted in Efforts to maximise impact of scores) (average quarterlyindex of Comment ondeviationsComment 3 Operational indicators performance KPIs supporting indicatorsKey performance perAnnual Performance Plan and gamefarming industries throughout the MTEFperiod Strategic 1.4: Objective To previouslydisadvantaged encourage participationof individuals inthe conservation

sites Monitor game on allcustodian Transformation Forum Facilitate Eastern Cape Game 2019 round approved transformation sites for Facilitate agreements with 2018 approval process Deliver approved animals from candidates register /data base Maintain game transformation economy index Biodiversity implemented Game farm programme index economy Biodiversity Indicator Operational Performance implemented programme Game farm Key Performance Indicator Indicator Performance UnitofmeasureIndex:Yes(1)/No(0) in2017/18.Standardformofindexfrom2018/19 N/A N/A 2016/2017 Achieved Actual 1 score) (index 3 2017/2018 Achieved Actual (0) Yes (1)/No 3 Index 100% Economy Biodiversity of index (%) in Weight

50 20 10 10 10 score) (index 2.7 measure Unit of 2018/2019 Achieved Actual score) (index 2.7 Yes (1)/ Yes (1)/ No (0) No (0) 3 2 # 1 0 # 80 % 2020 2019/ Target Planned score) (index 2.7 2019/2020 Target Planned score) (index 2.7 No deviation 1 1 No deviation 1 1

3.0 3.0 (average quarterlyindexscores) of 2020 2019/ Achieved Actual 110 score) (index 3.0 2019/2020 Achieved Actual score) (index 3.0 meeting inQ3 The forum requested anadditional transformation agreements land, and to the number of translocated to PDI-owned adding to the number of animals a neighbouring community, a land sharing agreement with were translocated entered into The site to which 20 black rhino scores) (average quarterlyindex of Comment ondeviationsComment points) (index +0.3 2019/2020 target for planned from Deviation points) (index +0.3 achieved targets operational 100% of deviations on Comment achieved targets underlying 100% of 71 PERFORMANCE INFORMATION 72 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Operational indicators performance KPIs supporting indicatorsKey performance (KPIs) perAnnual Performance Plan Strategic 3.1: Objective To developprovincial nature astourism reserves products throughout the MTEFperiod 4

index satisfaction Customer (reserves) Grading tourism facilities development tourism product Reserve Implement commercialisation plan Hospitality revenue Concession management initiatives Reserve commercialisation plans for reserves management heritage Develop commercialisation Package opportunities for Products as Reserves development development Reserve tourism product asProductsReserves (RAP) Indicator Operational Performance Key Performance Indicator Indicator Performance Introductionofstandardindexfrom2019/20 (%) 87 / N/A N/A N/A 2016/2017 Achieved Actual

(%) 90 score) (index 2.6 2017/2018 Achieved Actual 80% of RAP index (%) in Weight

20 25 10 10 15 15 # 5 (%) 90 score) (index 2.8 score) (index 2.8 measure Unit of 2018/2019 Achieved Actual (‘000) Index

ZAR ZAR No deviation 2 No deviation 9 2 9 # # % % 2019/20 Target Planned 8 144 8 2.7 score) (index 2.7 score) (index 2.7 2019/2020 Target Planned score) (index 2.7 90 90 17

4

2.7 (average quarterlyindexscores) of 2.7 2019/20 Achieved Actual 6

95.8 7 5 97. 916.9 2.8 16 score) (index 2.7 score) (index 2.7 2019/2020 Achieved Actual score) (index 2.7

Deviation not noteworthy not Deviation income tourism and decline indisposable attributed to general decline in hospitality revenue targets U (average of quarterly index scores) Deviation not noteworthy not Deviation noteworthy not Deviation Deviation not noteworthy not Deviation Comment ondeviationsComment nderperformance against deviation No deviation No 2019/2020 target for planned from Deviation deviation No deviations on Comment 5 indicatorsKey performance perAnnual Performance Plan Strategic 3.2:To Objective maintain management protected effective of areas throughout the MTEFperiod

tt frsre 1 State of reserves over 67 over METT-SA score Reserves with projects responsibility Social survey administered 2019/20 customer satisfaction implemented Customer feedback response plan METT-SA score utmrstsato ne 20% of RAP Customer satisfaction index asProductsReserves (RAP) Indicator Operational Performance implementation project Infrastructure Indicator Performance Key Performance Indicator Unitofmeasurechangedfrom“index”to “yes/no”from2016/17.Standardformofindexreturnedtouse2017/18 0()10(5 100 (15) 100 (15) 60 (9) 1 68 1 2017 2016/ Achieved Actual 5 score) (index 3.0 (score) 75 score) (index 3.0 2018 2017/ Achieved Actual score) (index 3.0

index (%) in Weight N/A N/A score) (index 3.0 (score) 75 score) (index 3.0 2019 2018/ Achieved Actual score) (index 3.0 measure Unit of Yes(1) /

No(0) % (%) 80 score) (index 2.7 (score) 75 score) (index 2.7 2020 2019/ Target Planned 2019/20 Target Planned score) (index 2.7

90 No deviation 1 1 2.7 2.7 (average quarterlyindexscores) of 2019/20 Achieved Actual (%) 93 score) (index 2.8 (score) 72 score) (index 3.0 2020 2019/ Achieved Actual score) (index 3.0 75

(average of quarterly index scores) respond to customer feedback Unavailability of resources inQ3to Comment ondeviationsComment + 13 (%) points) (index + 0.1 - 3(score) points) (index + 0.3 2020 for 2019/ target planned from Deviation points) (index + 0.3 quarters in 3of the 4 Target achieved maintenance equipment and infrastructure, investment in Inadequate of schedule of achieved ahead Milestones deviations on Comment achieved All targets 73 PERFORMANCE INFORMATION 74 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Operational indicators performance KPIs supporting 6

Social responsibility projects projects SMMEs engaged on infrastructure rjc ietnsahee 0% 80 Project milestones achieved Infrastructure project implementation reserve Operational riskassessments per plans (rhino, elephant) management Implementation of key species evaluation report strategies recommended from Execution of prioritised turn around report PA management system evaluation State of Reserves of State Wildlife revenue Maintenance implemented as planned Off-take recommendations Environmental education development plans development Implementation of tourism management Invasive alien species Fire management Waste management Waste Reserve security Proportion of reserves with METT-SA score over 67 score METT-SA Indicator Operational Performance Job opportunities sustained Key Performance Indicator Ofthefourstandingoperationalindicators, threeweredormantin2019/20asthe3-yearprojectcycleended2018/19. 6 20 20 30 35 15 N/A N/A N/A N/A N/A N/A N/A N/A N/A 100 index (%) in Weight Indicator not active 2019/20. 6 0 # # No(0) Yes(1) / # No(0) Yes(1) / (‘000) ZAR Index % Index No(0) Yes(1) / Index Index Index Index # measure Unit of 90 515 15 No deviation 1 1 515 15 No deviation 1 1 6 817 6 2.7 90 2.7 No deviation 1 1 2.7 2.7 2.7 2.7 200 2019/20 Target Planned 136.7 . (average of quarterly index scores) 3.0 . (average of quarterly index scores) 3.0 6 224 2.8 98 2.8 2.6 2.4 1.8 2.1 93% 72 (score) 219.5 2019/20 Achieved Actual . (average of quarterly index scores) 2.8 schedule Projects progressed ahead of No deviation No deviation size of available game primarily to impact of drought on than anticipated revenue due Annual auction brought inlower Deviation not noteworthy not Deviation over the course of the year. Familiarity with systems improved management. increased monitoring of reserve experienced with move to Administrative difficulties Not weighted Not Comment ondeviationsComment 7 indicatorsKey performance perAnnual Performance Plan throughout the MTEFperiod Strategic 3.3: To Objective leverage stakeholder for sustainable support tourism development and conservation

Programme People &Parks through beneficiation economic Socio- facilitation leveraging Resource engagement Stakeholder support Stakeholder Indicator Performance WorkstreammigratedfromProtectedArea Expansion(whereitwaslocateduntil2018/19). 7 / / N/A N/A N/A / / N/A N/A N/A / / N/A N/A N/A 2016/2017 Achieved Actual No(0) Yes(1) / 1 2017/2018 Achieved Actual No(0) Yes(1) / 1 2018/2019 Achieved Actual score) (index 3.0 score) (index 2.7 score) (index 2.7 score) (index 2.7 2019/2020 Target Planned score) (index 2.7

score) (index 1.9 score) (index 2.8 score) (index 2.9 2019/2020 Achieved Actual score) (index 3.0

points) (index - 0.8 points) index + 0.1 points) (index + 0.2 2019/2020 target for planned from Deviation points) (index + 0.3 in Q3only implemented fully Processes every quarter every exceeded or Targets met achieved indices weighted underlying 97% of deviations on Comment achieved targets operational All 75 PERFORMANCE INFORMATION 76 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Operational indicators performance KPIs supporting programme education and awareness Coordinate environmental for the N2Offset engagement stakeholder Support communities plans for the land claimant Facilitate development of business claimant communities the outreach team and the land Implement capacity building for agreements agreements Formalise co-management beneficiation beneficiation Monitor socio- economic ... People &Parks Programme Match resources to ECPTA projects Resource Leveraging process flow Facilitate implementation of the potential government funders opportunities from database of Identify resource leveraging Resource leveraging facilitation Stakeholder relationship (external) leveraging processes Provide support to resource N2 Biodiversity Offset Programme organisation the across engagement Co-ordination of stakeholder Stakeholder engagement 70% of Stakeholder support Stakeholder of 70% engagement Stakeholder Stakeholder (SS) support Indicator Operational Performance Key Performance Indicator 10 30 10 10 30 10 20% of Stakeholder support Stakeholder of 20% 20 30 50 10% of Stakeholder support Stakeholder 10% of 10 10 70 10 index (%) in Weight No(0) Yes(1) / No(0) Yes(1) / No(0) Yes(1) / No(0) Yes(1) / No(0) Yes(1) / No(0) Yes(1) / % No(0) Yes(1) / No(0) Yes(1) / cr 000.0 70.0 Score Index Index Index measure Unit of No deviation 1 1 No deviation 1 1 No deviation 1 1 No deviation 1 1 No deviation 1 1 No deviation 1 1 75 0 1 0 1 2.7 2.7 2.7 2020 2019/ Target Planned . (average of quarterly index scores) 3.0 25 1.9 2.5 3.0 2.5 . (average of quarterly index scores) 2.8 2.9 (average quarterlyindexscores) of 2020 2019/ Achieved Actual Unit inadequately resourced indicator the administrative nature of the Unit inadequately resourced for indicator the administrative nature of the Unit inadequately resourced for (average of quarterly index scores) lockdown incompleteSurvey at time of inadequate personnel Inconsistent support due to planned All project milestones achieved as inadequate personnel Inconsistent co-ordination due to Comment ondeviationsComment 3.1.6 performance measures and related targets for the Performance Plan for 2019/20 with respect to the Attention is drawn to inconsistencies in the Annual dormant. activity was recorded against two indicators that were The Agency made no in-year changes to targets, but 3.1.5 stakeholder support require attention. underperformance inreserve management and The administrative shortcomings that led to 3.1.4 Total Capital expenditure Compensation of Employees of Compensation Goods and Services Operations R’000

CHANGES T STRATEGY TO OVERCO LINKING PERFORMANCE WITHBUDGETS O PLANNED TARGETSO PLANNED (Adjusted) Budget 258 776 776 258 ME AREAS OF UNDER PERFORMANCE ME AREAS 0 1 616 109 90 220 58 939 939 58 Expenditure Actual 2019/2020 184 665 184 1 0 302 108 466 (3002) 112 003 46 104 26 558 558 26 Expenditure / Under (Over) Indicator Description on page 52 as approved by the Board. reports and the Annual Report follow the Technical to account more vigorously, it was agreed that quarterly intention the reflected and 52, and 30 pages on correct APP and pages 30and 52 of the APP. Since the APP was discrepancy was noted between pages 32 and 33 of the indicator “Customer Satisfaction Index”. During the year, a 73 496 496 73 63 662 662 63 12 836 836 12 Budget 238 899 5 9 52 307 56790 73 644 644 73 Expenditure Actual 2018/2019 106 051 051 106 172 475 475 172 14 117 117 14 Expenditure / Under (Over) 66 424 424 66 59 527 527 59 4 483 483 4 2 415 415 2 77 PERFORMANCE INFORMATION 78 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 • • destination. This involves: units areexpected to market the Eastern Cape as atourism Information, has not been established. Together these Communication and Media. The fourth unit, Research & Business Events and Partnerships, and Corporate Campaigns, E-Marketing, and Experience and Destination), namely Marketing (which incorporates Branding & The Marketing Department consists of three components, Key functions Marketing of Programme Structure Reserves, as well as managing and executing internal and external corporate communication functions. accordance with Section 13 of the ECPTA Act 2of 2010. It isfurther tasked with promoting accommodation and activities on Programme 2:Marketing isresponsible for marketing and promoting of the Eastern Cape Province as atourism destination in Purpose 3.2.1 3.2 •

international trade events networks through which to launch campaigns Showca of platforms the ECPTA-managed nature reserves, through arange Prom Esta

blishing strong stakeholder relationships and oting the Province and its attractions, including PROGRAMME 2:MARKETING DESCRIPTION OF PROGRAMME sing the destination at domestic and

Marketing Business Events andPartnerships Marketing Research andInformation Corporate Communications andMedia ranking isdesirable. Province as adomestic tourism destination. Alower endeavours interms of the relative popularity of the ECPTA currently measures the ultimate success of these • • • •

social media through digital, print and radio platforms, including Provi Attr the provincial tourism profile concerts and festivals as amechanism for elevating Suppo des Educating the travel and popular media about the Africa particularly through collaborations forged at Meetings and Exhibitions (MICE) Industry to the Province, acting the Meetings, Incentives, Conferences tination and its product offerings ding clear and appealing communication rting local and signature events such as fairs, Figure as illustrated. the Marketing Department isresponsible aredistributed contributing to the three performance objectives for which Annual Performance objectives. The operational indicators for the achievement of one Strategic Objective and three Marketing Department (Programme 2)was responsible Operational Plans. During the year under review, the detailed inAnnual Performance Plans and Annual For ECPTA, each strategic objective isreliant on work 3.2.2 Meeting industry Domest engagements Promotions

conducted BRAND INDEX AWARENESS 2 Relative 12:

Reserve Reserve STRATEGIC OBJECTIVE ic P romotion weighted Management &

advertising advertising contribution

Brand Digital Marketing - social media partnerships partnerships established Event of performance

Digital Digital Marketing - promotion Marketing - website indicators CORPORATE INDEX IDENTITY

framework implementation for Corporate communication Research management

Marketing Representatives Trade Educationals DESTINATION Trade Promotions MARKETING Country Joint Marketing Agreements

Stakeholder Engagements Tourism Products Database 79 PERFORMANCE INFORMATION 80 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Marketing Strategy, the unit successfully supports and platforms. Inaddition, as per the Provincial Tourism destination on arange of international and domestic the Eastern Cape as acompelling and attractive tourism The unit continues to execute its mandate to position Cape Province both domestically and internationally. The Marketing Unit isresponsible for marketing the Eastern domestic market by 2020 ranked inthe top 3most-visited destinations inthe Strategic Objective 2.1: To ensure that the Province is Marketing Department 8

Indicator Title Strategic Objective ranking) Tourism domestic holiday travellers (SA Number of domestic agreement withSATourism.Rankingretained forconsistencywithStrategicPlantargets Inthe2019/20APP,thisindicatorchanged fromsimplyrankingtheprovincetotracking#ofdomesticholiday travellers–asper 8 ranking) 5 (domestic 2018/2019 Achieved Actual do (more 20 (3 travellers) holiday position) 2019/2020 Target Planned rd mestic mestic

000 rank position) (4 300 2019/2020 Achieved Actual th rank

000 and Corporate Communication and Public Relations. Marketing, Domestic Marketing, Partnerships and Events, focus areas inpursuit of this objective areInternational in the domestic market by 2020. Marketing’s four Province ranks inthe top three most-visited destinations primary goal of the Marketing Unit isto ensure that the Emanating from the Agency’s overall Strategic Plan, the amongst the citizens of the Eastern Cape. collaborates with arange of stakeholders to build pride position -1 rank travellers holiday do more + 280 2019/2020 for Achieved Actual target to from planned Deviation mestic mestic

000 planning purposes limited use for provincial unpredictable and of this indicator being gathering results in and timing of data Changes inthe measure Comment ondeviationsComment Key performance indicatorsKey performance (KPIs) perAnnual Performance Plan market by2020 Strategic 2.1: Objective To ensurethat the Province isranked inthe top 3most-visited destinations inthe domestic 3.2.3 Identity index Corporate index marketing Destination index awareness Brand ranking) domestic Tourism(SA travellers holiday domestic Number of Indicator Performance

KEY PERFORMANCE INDICATORS,KEY TARGETS PLANNED ANDACTUALACHIEVED score) (index 2.3 score) (index 3.0 score) (index 3.0 ranking) (domestic 4 2017 2016/ Achieved Actual score) (index 2.95 score) (index 2.8 score) (index 2.9 ranking) (domestic 5 2018 2017/ Achieved Actual score) (index 2.5 score) (index 3.0 score) (index 2.9 ranking) (domestic 5 2019 2018/ Achieved Actual score) (index 2.7 score) (index 2.7 score) (index 2.7 20 do more ranking) (domestic 3 travellers holiday 2019/ 2020 Target Planned mestic mestic

000

score) (index 3.0 score) (index 3.0 score) (index 2.9 do more ranking) (domestic 4 travellers holiday 300 2019/ 2020 Achieved Actual mestic mestic

000 points) (index + 0.3 points) (index + 0.3 points) (index + 0.2 do more position -1 rank travellers holiday + 280 2019/ 2020 target for planned from Deviation mestic mestic

000 achieved targets All operational achieved targets All operational achieved targets operational Most a National level target setting at of data and synchronisation Inadequate deviations on Comment 81 PERFORMANCE INFORMATION 82 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 corporate site.corporate platforms. The website willbe retained primarily as a Marketing efforts willmove increasingly to digital 3.2.4 Operational indicators performance KPIs supporting Programme 2:Marketing. No in-year changes to targets were made inrespect of 3.2.5 Research management Research framework implementation communication Corporate Corporate Identity index Corporate Tourism Products Database Country Representatives Stakeholder Engagements Stakeholder Joint Marketing Agreements Trade Educationals Trade Promotions Destination marketing index advertising Brand Management and Digital Marketing -promotion Digital Marketing -social media iia aktn est % 5 Digital Marketing -website Meeting industry engagements industry Meeting Reserve Promotions conducted Promotions Reserve Event partnerships established Domestic Promotion Domestic Brand awareness index South Tourism African (SAT) domestic ranking Indicator Operational Performance Key Performance Indicator

CHANGES T STRATEGY TO OVERCO O PLANNED TARGETSO PLANNED ME AREAS OF UNDER PERFORMANCE ME AREAS 30 70 10 15 15 20 15 25 10 10 10 15 15 15 20 index (%) in Weight Index Index No(0) Yes(1) / # Additional opportunities exploited 9 2 # No deviation 1 1 # # # # 0 0 519 063 100 000 # % 5 4 # 5 3 # # 9 # measure Unit of 2.7 2.7 No deviation 1 1 60 24 260 12 20 10 11 2020 2019/ Target Planned 3.0 3.0 . (average of quarterly index scores) 3.0 272 80 388 . (average of quarterly index scores) 3.0 15 78.1 -0.8 12 13 . (average of quarterly index scores) 2.9 4 (domestic ranking) 2020 2019/ Achieved Actual All activity indicators achieved Trade contacts were taken online Additional opportunities exploited Additional opportunities exploited capability the Agency to further build digital Expectations exceeded, directing Twitter and Facebook) across allplatforms (Instagram, Social media gained momentum the year the Web traffic was down throughout under review over achievement during the period marketing prospects facilitated advantage of opportunistic The unit’s agility intaking Comment ondeviationsComment Programme Structure provincial priorities: in amanner that contributes to national outcomes and Corporate Management Support services aredelivered by the core programmes, Operations and Marketing. to facilitate the unfettered delivery of mandated services efficiently and effectively executed organisation are the responsible for ensuring that allnon-core functions of Programme 3:Corporate Management Support is Purpose 3.3.1 3.3 3.2.6 Total Capital expenditure Compensation of Employees of Compensation Goods and Services Marketing R’000

PROGRAMME 3:CORPORATE SUPPORT MANAGEMENT LINKING PERFORMANCE WITHBUDGETS DESCRIPTION OF PROGRAMME Corporate Management Support Executive Office Executive Corporate Services Finance (Adjusted) Budget 29 466 11 655 655 11 17 728 17 954 954 17 728 17 83 83 Expenditure Actual 2019/2020 28 470 470 28 10 438 438 10 78 78 Expenditure / Under (Over) • • • (226)

1 217 1 996 996 state and good governance development-orientated public service support aninclusive growth path Nati Provinc Nati 5 onal Outcome 12: An efficient, effective and effective efficient, An 12: Outcome onal onal Outcome 5:Skilled and capable workforce to Corporate Management Services Human Capital Management Internal Control Accounting andReporting Finance Management Supply Chain Management Management Strategy, RiskandPlanning andBoard SecretariatLegal Advisor Budget ial Priority 7: Strengthening the developmental 14 850 850 14 26 1 1 617 11

100 100 567 Expenditure Actual 2018/2019 25 15 232 15 9 914 914 9

171 25 25 Expenditure / Under (Over) 1 703 703 1 1 396 (382) 75 75 83 PERFORMANCE INFORMATION 84 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 executive manager inthe organisation. implementation of policy and strategy as the most senior a member of the Board of Directors and accountable for the Act. The CEO isresponsible for the formulation of policy as Tourism Agency interms of the Public Finance Management Accounting Authority for the Eastern Cape Parks and and Stakeholders. The Board of Directors serves as the the Board of Directors, Shareholder, Executive Directors CEO facilitates the coordination of the Office betweenThe reports and the enterprise wide riskprofile. and performance management plans, performance of the CEO monitors compliance with legislation, strategic Office The compliance. legal corporate management and management, corporate positioning of the Agency, risk responsible for providing strategic leadership to executive theAs administrative head of the ECPTA, the CEO is partnership agreements. expand the revenue base for the ECPTA through effective partnership networks aredeveloped and managed to planning and reporting effective systems areestablished and that that external ensures Office Executive The Office Executive and Corporate Services. Finance, Office, Executive components, namely three of The Corporate Management Support Programme consists Key functions Corporate of Management Support expenditure. prevent unauthorised, irregular or fruitless and wasteful that the Agency takes effective and appropriate steps to equitable, transparent, and cost-effective, and ensure maintenance of aprocurement system that isfair, the entail systems management financial Systematic that expenditure occurs within the approved budget. provisions as well as taking appropriate steps to ensure This includes ensuring compliance with regulatory organisation’s budget and resource requirements. management systems and information to co-ordinate the systematic financial of provision the ensures It Agency. financial viability, corporate sound and governancethe of administrativeissues necessary to ensure the commercial and effectiveness, financial on input managerial and The Financial Management Department provides strategic Finance services. facilitiesoffice head all of caretakes unit this of section connectivity and for administering software. The Facilities technology across the organisation, for maintaining responsible for the provision of appropriate communication Management and Communication Technology section, is Corporate Management Services, through the Information health and safety. employee wellness, employee relations and occupational training and development, organisational transformation, excellence inthe disciplines of human capital management, responsible for ensuring the delivery of professional The Human Capital Management (HCM)section is Management and Corporate Management Services. Corporate Services consists of two sections: Human Capital Corporate Services Figure strategic objective in2019/20, which required purposeful (Programme 3)were collectively responsible for a single The three components of Corporate Management Support 3.3.2 Internal Audit Management

findings reviews 3 Relative 13:

Revenue External AuditExternal opinion Asset Management STRATEGIC O PERFORMANCE DIMENSION weighted FINANCIAL DIMENSION management maturity Risk Compensation BJECTIVE of Employeesof

Financial Reporting contribution Programme Human Capital Manage- Development and Wellness Human Programme Programme Capital Integrated Employee Relations Individual performance ment scores monitored of performance Departmental scores Management Supply Chain availability Occupational (average) (OHS) Safety Systems programme Health & implementation IMCT Projects

Management Business process Payments

Change improvement initiatives Supplier indicators

Communication Fleet man- Facilities software agement - nomic benefi Management management Transformation Socio- eco- Socio- implemen- maintained Change ciation tation satisfaction Staff sat- isfaction outcome adminis- survey survey survey survey tration

Staff Communication spend equipment for maintained To manage with compliance the

IMCT Corporate Corporate Management Supply Chain compliance) compliance) Governance Framework Implement Service Level Agreement Service Transparency infinancial (policy (policy support of the organisation’s overall mandate. integration of the competencies of each component in Virtual meetings reporting toreporting the DEDEAT/ECPTA

Management Board COMPLIANCE DIMENSION REPUTATION DIMENSION (policy compliance) compliance) (policy (policy compliance) compliance) (policy Budget alignment

Management Support to strategy Budget HCM

To manage with compliance are actively managedare actively current legalmatterscurrent project registerproject Carbon off-set the Board Charter To ensurethat all with keyidentified Legal compliance advice to internaladvice Clarity legal of of contractsof Compliance Compliance legislation users 85 PERFORMANCE INFORMATION 86 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 in support of the Agency meeting its mandate. extent to which the key structures and systems combine The Organisational Sustainability Index (OSI) gauges the agility. improving /maturing inorder to retain organisational structures that support such practices must be constantly increasingly resource-constrained world, the systems and While sustainable business practices arecritical inan developments. risks deriving from economic, environmental and social value by optimally responding to both opportunities and of business practices that create long-term shareholder Organisational Sustainability isviewed as the culmination services to the core departments to meet its mandate by providing cross-cutting support Strategic Objective 4.1: To ensure the organisation’s ability Corporate Management Support Index Organisational Sustainability Title Strategic Indicator Objective (score) 100 2018/2019 Achieved Actual

(score) 90 2019/2020 Target Planned

(score) 96.7 2019/2020 Achieved Actual

• • • • out of 100: The sum of the four weighted scores culminates in ascore Corporate Management Support programme isresponsible. comprise the seven performance indicators for which the four sustainability dimensions. The four dimensions Sustainability Assessment Methodology and considers OSI calculator isbased on RobecoSAM’s Corporate

Financi Perfo Reput Compliance Capability Organisational Performance Score and Corporate and Carbon Footprint Comp (points) + 6.7 ondeviations Comment for 2019/2020 Actual Achieved planned target to Deviation from rmance (weighted 20) includes Audit Outcome, liance (weighted 20) incorporates Policy ation (weighted 30) consists of Accountability al (weighted 30)consists of Financial Maturity detailed below of weighted performance The Index isasummation 9 indicatorsKey performance (KPIs) perAnnual Performance Plan to the departments services core Strategic 4.1:To Objective ensurethe organisation’s ability to meetits mandate byproviding cross-cutting support 3.3.3

Carbon Footprint Index Accountability Capability Index Corporate Index Compliance Policy Audit Outcome Maturity Index Financial Index Sustainability Organisational Index Performance Organisational Indicator Performance Indexscoreintroducedtobettercapture focusoftheunderlyingindicators

KEY PERFORMANCE INDICATORS,KEY TARGETS PLANNED ANDACTUALACHIEVED (2 Baseline New CO score) (index 3.0 score) (index 2.9 score) (index 3.0 findings) audit; 2 2 (clean score) (index 2.9 (score) 95.2 score) (index 3.1 2017 2016/ Achieved Actual

2 314 k

/m) g score) (index 3.0 score) (index 2.9 score) (index 3.0 1 finding) audit with 1 (clean score) (index 2.9 (score) 100 score) (index 3.3 2018 2017/ Achieved Actual CO (4 367 kg Baseline 2 /m)

score) (index 3.0 score) (index 2.9 score) (index 3.0 1 finding) audit with 1 (clean score) (index 3.0 (score) 100 score) (index 3.4 2019 2018/ Achieved Actual score) (index 3.0

score) (index 2.7 score) (index 2.7 score) (index 2.7 score) (index 2.7 score) (index 2.7 (score) 90 score) (index 2.7 2020 2019/ Target Planned score) (index 2.7

9 score) (index 3.0 score) (index 2.8 score) (index 3.0 score) (index 2.9 (score) 96.7 score) (index 3.0 2020 2019/ Achieved Actual score) (index 3.0 score) (index 2.6

points) (index + 0.3 points) (index + 0.1 points) (index + 0.3 points) (index + 0.2 (points) + 6.7 points) (index + 0.3 2019/ 2020 target for planned from Deviation points) (index + 0.3 points) (index - 0.1 obligations and contractual to statutory in adherence Sustained effort controls in managing Sustained effort controls in managing Sustained effort controls in managing Sustained effort detailed below performance of weighted a summation The Index is environment performance the internal Maturation of deviations on Comment within ECPTA initiatives to low carbon Commitment planned executed as plan not Internal audit 87 PERFORMANCE INFORMATION 88 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 occasioned by the onset of the coronavirus pandemic during the last month of the financial year. The targeted staff satisfaction index was moved into Q1of 2020/21 as the survey could not be completed due to disruptions 3.3.5 and completed timeously. Failure to do so could place the organisation’s ability to retain aclean audit injeopardy. Closer management of the Internal Audit function isnecessary to ensure that the contracted risk-based internal audits areexecuted 3.3.4 Operational indicators performance KPIs supporting Compliance Compliance Dimension 4: Index Policy Compliance Financial Dimension 3: Index Financial Maturity Index Corporate Capability Performance Index Organisational Audit Outcome Performance Dimension 2: Carbon Footprint Reputation Dimension 1: Organisational Sustainability Index Indicator Performance Operational Accountability Index Indicator Key Performance

CHANGES T STRATEGY TO OVERCO O PLANNED TARGETSO PLANNED 20% Organisational of Sustainability Index 100 Organisational of 30% Sustainability Index 100 7 5 37. 12.5 50 20% Organisational of Sustainability Index 16 84 Organisational of 30% Sustainability Index (%) dimension Weight in ME AREAS OF UNDER PERFORMANCE ME AREAS Index Index Index Index Index Index Index measure Unit of 2.7 2.7 2.7 2.7 2.7 2.7 2.7 2019/20 Target . 3 3.0 . 30 3 2.9 . 3 2.8 . 3.8 3 3.0 . 2 2.6 . 3 3.0 . 25.2 3 3.0 2019/20 Achieved (1 –3) Level 20 30 20 11.3 10 16.7 4.8 96.7 (sum of dimensionscores) (sumof 96.7 (%) Score Weighted 30 managing controls Sustained in effort managing controls Sustained in effort (weighted score) managing controls Sustained in effort (weighted score) managing controls Sustained in effort planned not executed as Internal audit plan (weighted score) planned and managed as Projects developed to shareholder met statutory obligations All contractual and deviations on Comment (weighted score) 3.3.6 Total Capital expenditure Compensation of Employees of Compensation Goods and Services Support Corporate Management R’000

LINKING PERFORMANCE WITHBUDGETS (Adjusted) Budget 84 359 359 84 33 425 50 172 172 50 762 762 Expenditure Actual 2019/2020 77 287 287 77 41 507 507 41 35 165 165 35 1 615 Expenditure / Under (Over) (1740) 7 072 072 7 8 665 665 8 147 147 Budget 76 656 4 4 42787 42845 33 010 010 33 801 801 Expenditure Actual 2018/2019 33 301 76 517 517 76 429 429 Expenditure / Under (Over) (291) 139 139 372 372 58 58 89

PERFORMANCE INFORMATION 90 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Total Wildlife Sales Re Rendering of services Pr Other income Non exchange transactions Finance Income Donations Received Donations Actuarial Gains Accommodation Sources of revenue of Sources 4. ofit and loss ntal income

REVENUE COLLECTIONREVENUE ’0 ’0 R’000 R’000 R’000 Estimate 7 9 295 941 372 396 339 955 339 8 467 1 376 1 4 641 4 5 519 5 9 817 9 2 621 2 0 Collected Amount Actual 2019/2020 263 114 263

3 005 2 420 4 840 4 6 958 6 9 (6698) 6 698 6 224 1 534 1 1 148 1 0 Collection Under (Over)/ (1 148) 76 455 76 76 841 76 1 509 1 3 593 3 (158) 1 636 1 201 679 0 ’0 ’0 R’000 R’000 R’000 Estimate 3 5 6 6 73 394 266 561 339 955 311 453 311 12 543 12 3 295 3 1 339 1 6 693 6 3 418 3 1

214 0 0 0 Collected Amount Actual 2018/2019 236 254 236

8 686 8 1 385 1 2 2 2 2 097 2 4 101 4 6 163 6 4 821 4 772 82 1 Collection Under (Over)/ (4821) (1 75 199 (683) (772) 3 857 857 3 1

(46) 068) 530 530

198 (1) 4.1 Total various reserves Repairs and maintenance - Various Reserves Economic Stimulus Fund - PP-VrosRsre 14 708 EPIP -Various Reserves Universal Accessibility Baines National Lottery -Thomas infrastructure projects) Various reserves (NDT - Heritage Site) Baviaanskloof (World Bisho NPA Building (Repairs and Maintenance) Island Nature Reserve materials) Fort Fordyce (game fencing Maintenance) Great Fish (Repairs and Maintenance) Umtiza (Repairs and Ngxingxolo Cultural Village Nduli /Luchaba nrsrcuepoet Budget Infrastructure projects

CAPITAL INVESTMENT CAPITAL INVESTMENT ’0 ’0 ’0 ’0 ’0 R’000 R’000 R’000 R’000 R’000 R’000 16 076 1 3 0 14 127 5704 19 831 62 410 62 690 167 5263 1637 6900 1200 1436 2 109 2 109 2 109 2 5 150 150 Expenditure Actual 2019/2020 10 891 891 183 183

674 14 708 0 1436 0 xedtr Budget Expenditure Under (Over)/ 1 8 10 000 15 185 51 7 1017 6 209 415 47 864 4155 52019 36 0 0 38 118 38 2 539 2 636 9 195 195 130 3 136 136 171 494 94 Expenditure Actual 2018/2019 1 089 2 302 130 125 85 0 Expenditure Under (Over)/ 37 029 37 9 870 9 636 237 46 45 0 0 0 91 PERFORMANCE INFORMATION Amathole Mountains Scuba Diving Eastern Cape, South Africa Eastern Cape, South Africa

EXPLORE THE EASTERN CAPE USING YOUR SENSE OF TOUCH

Coffee bay,Wild Coast Mohair Farms Eastern Cape, South Africa Eastern Cape, South Africa PART C

GOVERNANCE

EXPLORE THE FEELINGS

Endless Beach, Supertubes, Jeffreys Bay Eastern Cape, South Africa Bloukrans Bridge Bungee Jump Eastern Cape, South Africa to the MEC for the performance of the Agency. ACharter, adherence to which ismonitored on anongoing basis, binds the Board. In summary, the Board gives strategic direction to the Agency, isresponsible for the performance of the Agency, and isaccountable for identifying riskareas and retaining fulland effective control over the strategic operations of the Agency. The Board is responsible for the appointment of Executive Management, including the Chief Executive Officer. It is also responsible effectively. The Board of Directors further ensures that its obligations interms of the relevant legislation, including the aredischarged PFMA, PFMA. the of and 51 Sectionsgeneralfiduciary responsibilities AccountingThe 50 and prescribed by duties Authoritythe are of Season” campaign inNovember. theLilizela Awards, donor-fundinganda event. MEC Mvoko delivered the key note address atthe launch theof first ever “Summer annual game auction, the Biodiversity Economy Indaba, the Agency’s strategic planning event, the National Tourism Month launch, Authority supported the work of the ECPTA by attending and participating in a range of events. These included trade shows, the The Executive Authority engaged the Agency through both formal and informal meetings inthe year under review. The Executive owners. This isakey pillar of the ECPTA’s emerging strategy for the next MTSF. partners areworking on isthe Sho’t Left campaign, which includes examples of packages being put together by local product achieving the 3rd place ranking aresound, and have been discussed at national level. One of the projects that Tourism SA and its The Portfolio Committee sought clarity on the elusive 3rd spot inSAT ranking for the Eastern Cape. The reasons advanced for not year under review. The engagements took place on 24 July 2019 and 15 November 2019. The Agency engaged with the Portfolio Committee for Economic Development, Environmental Affairs and Tourism twice during the the recommendations of the King IVreport on corporate governance. The Board also strives to comply with the principles and standards of integrity, accountability and good governance contained in Eastern Cape Parks and Tourism Agency Act 2 of 2010 and the Public Finance Management Act 1 of 1999 (as amended) (PFMA). The Board isthe designated Accounting Authority of the ECPTA and governs the entity inaccordance with the provisions of the 4 3 2 1

ACCOUNTING AUTHO AUTHORITY EXECUTIVE PORTFOLIO COMMITTEES INTRODUCTION RITY /BOARD RITY 95

GOVERNANCE 96 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20

4.1 COMPOSITION OF THE BOARD AND COMMITTEES

The current ECPTA Board was officially appointed from 1 May 2019.

Area of Board Name Designation Date appointed Qualifications Other Committees Expertise Directorships Ms N Mona Chairperson of the Board 1 May 2019 MBA, MA Labour Relations & HR, BA (Hons) Labour ENTSA Board NCT HR Governance Industrial Relations, BA Psychology & Sociology Relations Committee ICASA-Member of REMCO Wilderness Foundation –Trustee and NED Ms T Putzier Deputy chair of the Board 1 May 2019 BCom, Post Graduate Diploma in Business Tourism and Nil Nil Chair of Marketing Administration Marketing Committee Member of HR&R Committee Dr N Mzilikazi Chair of HR Committee 1 May 2019 PHD Zoology, MSc Zoology, BSc (Hons) Zoology, Biodiversity Nil Nil and member of Operations BSc Zoology Chemistry, Tropical Ecology Field- Conservation Committee Course HRN Z Mkiva Member of Marketing 1 May 2019 BA Social Sciences, Senior Degree (Hons Heritage Nil Subsequent appointment Committee & EXCO Subsequent in Development Studies), Arts and Culture to National Council of member Appointment to the Administration, Media Research Training, Provinces National Council of Executive Course for Finance Managers Provinces Dr A Baxter Chair of Operations and 1 May 2019 BSc & BSc (Hons), Doctor of Philosophy (PhD) in Biodiversity Nil Nil member of Finance and Faculty of Science Conservation Investment Committee Mr L Bevile Member of Operations 1 May 2019 Bachelor of Arts (BA), HDE and PG in Archives and Representing Nil Nil Committee Records the Community Mr Z Fihlani Chairperson of Finance & 1 May 2019 M. Com (Tax), Higher Diploma in Tax Law, Higher Finance Nil Nil Investment and member of Diploma in International Tax Law, CA (SA), B.Compt HR&R committee (Hons), BCom in Accounting, Bridging Course Ms S Onceya Member of Finance & 1 May 2019 Masters Degree in Economics, Bachelor of Shareholder Nil Nil Investment and Marketing Commerce (Hons) Transport Economics, Representative Committees Bachelor of Commerce Business Management & Economics Current studies: PhD in Economics Research officio member. March2020. ECPTA doesnot remunerate the Provincial Treasury official (Shareholder Representative) deployed an ex- as serve to Members’ remuneration details, including other expenses, areincluded inthe Annual Financial Statements for the year ended 31 The ECPTA Board of Directors is remunerated according to its Subsistence and Travel Policy, which was approved by the MEC. 4.2 Audit and Risk Committee Committee HR &Remuneration Committee Finance and Investment Committee Operations Committee Marketing Committee

REMUNERATION O F BOARD MEMBERS 5 Name members of No. members of No. meetings of held 4 4 4 4 3 3 3 3 2 to the NCOP the to Subsequent appointment Mr SDzengwa Ms TSemane Mr CSparg Ms TPutzier Mr ZFihlani Dr NMzilikazi Dr ABaxter Ms SOnceya Mr ZFihlani Mr LBevile Dr NMzilikazi Dr ABaxter Mr Z Mkiva – Mr ZMkiva– Ms SOnceya Ms TPutzier 97 GOVERNANCE 98 EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 • • quarterly meetings. Audit and Risk Committee of the Board at their scheduled This progress and any emerging risksarepresented to the agreed to isdiscussed, and adjustments to plans made. execution of riskmanagement measures previously organisational RMC meetings. Progress towards successful Quarterly departmental riskdiscussions precede risk levels. advises the CEO on the control measures necessitated by to implement the Risk Management Charter. The RMC of Extended Management Committee members, annually appoints aRisk Management Committee (RMC), consisting with the organisational riskmanagement policy. The CEO The ECPTA prepares anannual riskregister inaccordance • •

5. 6. Committee Letter Action Plan and present to the Audit and Risk Follo Plan. Monitoring compliance of the approved Internal Audit Prepare m organisation by the Auditor-General e Ensure Year Plan and Internal Audit Reports 2018/19 Financial

w-up on recommendations as per Internal Audit RISK MANAGEMENT INTERNAL CONTROLINTERNAL UNIT fficient and effective audit of the entire of audit effective and fficient onthly and quarterly AG Management • • • • • • operational plans. operational controls arethe foundation of strategic, performance, and planning, whereby risks, potential risks, and required risk ECPTA isunderlined by the risk-orientated approach to The robustness of the risk management system at (level 1is“Start up”, and level 6is“Optimising”). was determined at level 5 for the 3rd consecutive year next cycle. The ECPTA’s Risk Management Maturity level audit arefactored into the riskmanagement plan for the and environment. Recommendations emanating from this maturity of the organisational riskmanagement system and Risk Committee with anannual assessment of the The Internal Auditors (outsourced) provide the Audit

policies, and procedure manuals Annual A-G Audit Cond Perfo Prepare El Prepare B transactions Cond Revie uct Fraud Awareness Workshop uct 100% Pre-Audit on supply chain management rm test of controls as per Internal Control Plan w and assist on implementation of system, i-Annual PFMA and NTR Checklist ectronic Audit Readiness File for 2019/20 • Internal audit performs the following functions: Professional Practice of Internal Auditing. Internal Auditors Code of Ethics and the Standards for the conduct activities inaccordance with the Institute of The responsibility of the Internal Audit Function isto • • • • • realization of the following: aimed at achieving reasonable assurance about the Internal controls areunderstood to mean the processes Internal Audit function of the ECPTA performs this purpose. risks to anacceptable level inacost-effective manner. The and procedures within ECPTA inorder to reduce business effectiveness of internal controls, disciplines, systems established by the Board to evaluate the adequacy and Internal Audit is an independent appraisal function

Simphiwe Dzengwa Thembeka Semane ri pr BCom, CTA, (SA) CA Craig Sparg Name 7. including ethics, especially the “tone at the top” Evaluat Safegu Comp financial information re The The ec goals for operations and programme The ac and regulations

liance with relevant policies, procedures, laws INTERNAL AUDITINTERNAL ANDAUDIT COMMITTEES onomical and efficient use of resources liability and integrity of financial and non- and financial of integrity and liability complishment of established objectives and arding of assets. ing the ECPTA’s governance processes Arts Honours, Bachelor of Arts Finance, MPA, MBA, Bachelor of Certificate in Development Administration Graduate Diploma inBusiness Customer Care Diploma, Post CAIB BCom (SA), inAccounting, Qualifications xenl1April 2017 External xenl1April 2017 External External external Internal or • • • • • • • thus provided to the CEO and the Board on the following: highlighted by internal and external auditors. Assistance is Risk Committee provides the Board with areview of items responsibilities. Incarrying out these duties, the Audit and oversight its fulfil dischargeand toBoard the assist to is The Audit and Risk Committee’s main objective and purpose • Committee attends Board Meetings by invitation. the quarterly Board meeting. The Chairperson of the Audit The Audit and Risk Committee meets quarterly, ahead of •

Perfo Financi Inter processes and associated controls. Syste eff Performing anobjective assessment of the ITC op ITC Risk Mana Exter Inter controls ectiveness of riskmanagement and internal 1 April 2017 Reappointed 1 April 2015 appointed Date nal Audit nal control rmance information nal Audit matically analysing and evaluating business erations al statements gement N/A N/A N/A Resigned Date 5 3 5 attended Meetings No. of 99

GOVERNANCE 100

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 of employees and stakeholders. It provides guidance as to expected ethical behaviour. ECPTA subscribes to aBoard-approved Code of Ethics. The Code of Ethics contains the rules and standards that govern the conduct interest forms. Employees at lower levels areencouraged to declare their interests as and when required. every board meeting. Allemployees on C2and above arerequired to declare their interests by completing the annual declaration of The Board of Directors arerequired and encouraged to declare their personal and business interests on anannual basis and in reports and submits them to the Board for noting. The Internal Control unit updates progress on investigations on aquarterly basis. The Audit and Risk Committee engages with these the status of the cases and sanctions arecommunicated to the Audit and Risk Committee and Board. and fraud reporting hotline. The service provider compiles reports for the attention of the CEO and CFO. Cases areinvestigated, and and approved inNovember 2018. ECPTA appointed aservice provider (Whistle Blower) to provide and monitor ananonymous ethics ECPTA. ECPTA has aBoard approved Fraud Prevention policy inplace, with the objective of promoting aculture of honesty and integrity inthe ECPTA not legally due. Fraud isalso described as anillegal act characterised by deceit, concealment, or violation of trust. Fraud isintentional misrepresentation that causes prejudice to another, i.e. one individual deceives another to obtain something Management prepares alegal compliance status report for quarterly Audit and Risk Committee and Board scrutiny. The ECPTA strives to comply with allrelevant laws. The Agency has adopted amonitoring tool with which to track compliance. 9. 8. 11. 10.

Furt

adopts COMPLIANCE ANDREGULATIONS WITHLAWS CODE OF CONDUCT MINIMISING CONFLICT OF INTEREST FRAUD ANDCORRUPTION her to the policy, the Internal Control unit developed anaccompanying Fraud Prevention Plan, which the Board reviewed

a

zero

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corruption. whi Proceeds buffalofive thefromsalesold auctionof on asidedonations. for set were R216these raised animals The of sale Xoliswa Mapoma, the Board Secretary, assists the Board inthe execution of its fiduciary duties. • • • initiatives undertaken for the year under review: the are reflected Herewith legislation. applicable other Health and Safety (OHS) Act 85 of 1993, together with The ECPTA isrequired to comply with the Occupational

14. 13. 12. ch R113 OHS co Occu training took place as indicated Legal a place and communicated

pational Health and Safety (OHS) policy isin SOCIAL RESPONSIBILITY SOCIAL BOARD SECRETARY ANDENVIRONMENTALHEALTH, ISSUES SAFETY

mmittees areinplace at all15 reserves 000 wen ppointments have been done –refresher / t to the ECPTA community bursary scheme and R103 • • • •

500 to t are followed Injury on d are adequate and controls are being reviewed to ensure that these Risk ass Procedures areinplace Incide OHS Standards areinplace he Wildlife College. nt Procedure and Standard Operating essment and inspections were conducted, uty investigation and prevention measures

500 of 500 101

GOVERNANCE 102

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 annual financial statements. Wehave reviewed the annual financial statements prepared by the public entity. The Committee is satisfied with the quality of the 15.4 quality of these reports. the with satisfied is CommitteeAuthority.TheExecutive the to reportsquarterly submittedandmonthly hasentity public The 15.3 • • • • • • • • • • The following internal audit work was completed during the year under review: implementation the monitors of these Committee action plans. the identified, and weaknesses control internal the with deal to place in plans action adequate put management satisfied that has Committeeis entity.Thepublic the with raisedthen were weaknesses,which certainrevealed assessmentsentity,public the risk conducted in the on based was which work, Internal Audit the of findings the of review Our 15.2 contained therein, including that we have reviewed changes inaccounting policies and practices. its Audit Committee Charter, has regulated its affairs incompliance with this charter, and has discharged allits responsibilities as Act and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate formal terms of reference as The Audit Committee reports that it has complied with its responsibilities arising from Section 77 of the Public Finance Management 15.1 We arepleased to present our report for the financial year ended 31 March 2020.

15. Accoun Risk Mat Follo Interim F Perfo Human Re Asset R Legal an Follo Board Exp

w Up Review w up on prior year internal and external audit findings rmance Information (annually and quarterly) THE EFFECTIVENESS O THE EFFECTIVENESS RESPONSIBILITY AUDIT COMMITTEE EVALUATION OF FINANCIAL STATEMENTS IN-YEAR ANDMONTHLY/QUARTERLY MANAGEMENT REPORT AUDIT AND RISK COMMITTEE REPORT AUDIT ANDRISKCOMMITTEE ts Payable Review –ad hoc eview d Compliance urity Assessment inancial Statements 6months and 9months enses Review –ad hoc sources Management and payroll Review F INTERNAL CONTROLF INTERNAL audit for their support and co-operation. Board, Accounting Officer, AGSA, Management, and internal The Committee expresses its sincere appreciation to the 15.6 of the auditor. statements financial be accepted and annual read together audited with the report the that opinion the of is and statements financial annual the on auditor external the The Committee concurs and accepts the conclusions of that the matters have been adequately resolved. for audit issues raised in the prior year and we are satisfied We have reviewed the public Agency’s implementation plan 15.5

APPRECIATION AUDITOR’S REPORT 31 July 2020 (Appointed 1April 2020) Chairperson of the Audit and Risk Committee MangqukuMr L. CA(SA) 103

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Tea Farms Eastern Cape, South Africa The Big Pineapple, Bathurst Eastern Cape, South Africa the organisational performance targets. system utilised by allfull-time employees and aligned to The Agency has arobust performance management 8.06% compared to 9.5%inthe previous year. positions within the Agency. Staff turnover at year-end was A further 20 employees were promoted into higher-level during the year under review largely due to natural attrition. funded and inprocess. 41 new appointments were made has avacancy rate of 20.8% of which 3.82% (24 posts) is currently ECPTA constraints. budget within fill to which Management revisited all funded vacancies to prioritise ECPTA reserves. support development of unemployed youth adjacent to Externally the Agency focussed on opportunities to went beyond the call of duty. appreciate and recognize employees who worked hard and ceremony. This initiative provided anopportunity to Agency presented the second annual corporate awards a rating of less than 75% for Recognition and Rewards, the In response to the staff satisfaction survey that returned Change Management activations of 2019/20. interventions, with an86% positive sentiment towards the 2019. There has been a positive response to change activations and interventions until the end of December programme, which the Board approved in May, with These results informed the ongoing change management than in 2018 -77% higher against the organisational 6% target of 75%. reflected levels satisfaction staff and A staff satisfaction survey was concluded inMarch 2019 progressing into 2018. 2015 and 2017, with phase three starting inlate 2017 and Phases one and two were rolled out over the course of anticipation of the organisational restructuring process. identified through issues the annual Staff Satisfaction address Survey, and in to 2016 May in Plan Action The Board of Directors approved aChange Management 1

INTRODUCTION was also undertaken. An amount of R123 000 succession planning programme (talent management) A coaching and mentoring programme inrelation to the Workplace SkillsPlan. and provided to employees inline with the approved and targeted skillstraining programmes were facilitated offered to employees. development programmebursariesspecific withon focus skills the of beneficiaries were employees 245 review. achievement for this performance area inthe year under interventions were undertaken which resulted to 96% training2019/20.targeted 23/24 year financial for Plan interventions that informed the targeted Workplace Skills intention to identify the individual and strategic training had undertaken atraining needs analysis with an In line with the SkillsDevelopment Act, the Agency years, with anintake of 130 students each year. and private game reserves. The programme runs for 2 from across the Province and place them at municipalities to recruit and train 260 environmental services learners 122 youth candidates. Anamount of R20m was available Programme that isfunded by DEFF recruited and inducted The second phase of the Youth and Environmental Services from CATHSSETA for Work Integrated Learning.

Credit b earing training interventions

was se cured 107

HUMAN RESOURCE MANAGEMENT 108

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 2.1.3 2.1.2 2.1.1 Programme /objective /activity TOTAL Unskilled Semi-skilled Skilled Professional qualified ManagementSenior Top Management Marketing Operations Total Corporate Management Support Semi-skilled TOTAL Unskilled Skilled Professional qualified Senior ManagementSenior Top Management Level Programme /objective /activity 2.

HUMAN RESOURCE OVER HUMAN RESOURCE PERSONNEL COST BY PROGRAMME/ ACTIVITY/ OBJECTIVE OBJECTIVE COSTBYPROGRAMME/PERSONNEL ACTIVITY/ PERFORMANCE RE BAND COSTBYSALARY PERSONNEL WARDS (R’000) for the entity Expenditure Total (R’000) Performance rewards (R’000) Expenditure Personnel 2107 158 221 291 037 185 280 2 7 10 438 28 470 7 8 35 165 77 287 SIGHT STATISTICS 158 221 22549 40 078 16 692 47 748 10 543 20 611 (R’000) Expenditure Personnel 9631 4 054 4 1 156 1 152 1 1 637 1 918 714 112 618 618 112 (R’000) personnel cost exp. to total personnel% of (R’000) Personnel Expenditure (R’000) totalof exp. exp. asa% Personnel 100% 30% 25% 11% 14% 13% 7% 54% 45% 37% 61% No. employees of 158 221 22549 40 078 16 692 47 748 10 543 20 611 employees No. of (R’000) to total personnel cost rewards performance % of 498 233 132 38 54 37 4 422 498 59 17 (R’000) per employee personnel cost Average (R’000) employee per cost personnel Average 1 055 1 2 636 2 309 596 205 609 156 10% 267 318 318 614 6% 3% 3% 5% 9% 7% the Chief Operations Officer has been overtaken by changes to the structure to align to the new MTEF strategy. and the Chief Operations Officer in December 2018. The Chief Marketing Officer position was filled from 1 July 2019. RecruitmentTheAgency had for twovacant executive positions during thisperiod dueto departure theof Chief Marketing Officer in January 2019 Explanations: 2.1.5 2.1.4 Total Unskilled Semi-skilled Skilled Professional qualified ManagementSenior Top Management objective Programme / /activity Total Support Corporate Management Marketing Operations objective Programme / /activity the ECPTA workforce undergone to capacitate Training priorities objective Programme / /activity

EMPLOYMENT ANDVACANCIES TRAINING COSTS Employees No. of 2018/2019 Employees No. of 2018/2019 (R’000) Expenditure Personnel 1821 461 2.97% 4691 158 221 484 484 227 124 413 40 53 55 37 16 3 Approved PostsApproved 2019/2020 PostsApproved 2019/2020 (R’000) Expenditure Training 629 629 538 186 270 50 66 25 45 73 5 Employees No. of 2019/2020 Employees No. of 2019/2020 Personnel Cost as a%of Expenditure Training

422 498 498 233 132 38 54 59 37 17 4 Vacancies 2019/2020 Vacancies 2019/2020 trained employees No. of 207 116 131 131 54 37 19 13 8 1 7 7 % of vacancies% of vacancies% of employee per cost Avg training 20.8% 20.8% 20.0% 26.0% 26.0% 32.0% 29.0% 10.6% 15.6% 3 935 3 13.7% 21.6% 109

HUMAN RESOURCE MANAGEMENT 110

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 packages elsewhere. thus be split into two Executive Positions. Other resignations aredue to career advancement and people being offered attractive the new 5-year strategy has been approved, including the split of the current Operations department into two. The COO position will difficulty of getting an executive with a balance (Conservation skills in and Tourism) fillto the vacant COO position. Subsequently, Most staff members leave due to natural attrition. The most pertinent reason for vacancies at Top Management level isdue to Explanations: 2.1.7 2.1.6 Salary Band Reason Top Management Total Other (Termination Agreement) contractExpiry of Ill health Retirement Dismissal Resignation Death Senior ManagementSenior Professional qualified Skilled Semi-skilled Unskilled Total

EMPLOYMENT CHANGES REASONS FOR STAFF LEAVINGREASONS beginning period of Employment at 484 227 124 40 53 37 3 ponmns Terminations Appointments Number 27 3 2 1 9 0 8 4 41 18 14 1 2 6 % of total% of no. staff of leaving 27 10 1 3 5 8 of theof period Employment atend 100.0% 33.3% 29.6% 14.8% 11.1% 0.0% 3.7% .4% 4 7. 498 233 132 38 54 37 4 2.1.9 2.1.8 TOTAL Unskilled Semi-skilled Skilled Professional qualified Senior ManagementSenior Levels Top Management Demotion Final Written warning Written Warning Verbal Warning Grievances Nature disciplinary of Action

LABOUR RELATIONS: MISCONDUCTLABOUR ANDDISCIPLINARY ACTION EQUITY TARGE EQUITY T AND EMPLOYMENT EQUITY STATUST ANDEMPLOYMENT EQUITY urn agtCretTre urn agtCretTarget Current Target Current Target Current Target Current 231 129 18 51 16 616 16 0 1 0 0 0 0 1 1 African 209 99 55 17 21 11 31 17 1 2 0 0 3 2 1 3 0 0 2 0 2 3 0 0 2 1 Coloured 1 4 2 4 2 Number 27 13 4 0 0 0 7 MALE 9 0 0 7 0 0 0 Indian White 15 111

HUMAN RESOURCE MANAGEMENT 112

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 because of the historical practise to have preference for male Field Rangers. Major variance only experienced between target and current where there aretoo many African males on Semi-skilled level. This is become vacant. become dealing with differently-abled people and the strategy adopted isto target differently abled candidates should asuitable position To meet the set target interms of the employment equity plan, the agency has forged arelationship with REHAB, anorganisation TOTAL Unskilled Semi-skilled Skilled qualified Professional Senior ManagementSenior Levels Levels Top Management TOTAL Unskilled Semi-skilled Skilled Professional qualified ManagementSenior Top Management urn agtCretTre urn agtCretTarget Current Target Current Target Current Target Current 202 820 28 991 79 63 13 17 0 0 0 0 0 0 1 2 AFRICAN 193 51 16 14 Current 0 0 0 0 0 1 1 18 3 0 0 1 7 6 8 1 2 0 0 3 2 1 1 0 0 2 0 2 2 0 1 2 2 COLOURED Male 27 13 Target FEMALE 0 0 1 0 0 1 2 Disabled Staff 5 0 2 5 0 0 0 INDIAN Current 0 0 0 0 0 0 0 Female WHITE Target 0 0 0 0 0 0 0 12 Craft Beer Breweries Eastern Cape, South Africa Farmlands Botanical garden, Hogsback Eastern Cape, South Africa Eastern Cape, South Africa

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Citrus farming, Groot River, Baviaanskloof Flower Farms Eastern Cape, South Africa Eastern Cape, South Africa PART E

FINANCIAL INFORMATION

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Coral Aloe (Aloe striata), Botanical Gardens Eastern Cape, South Africa Citrus farms Eastern Cape, South Africa Website Auditors Bankers Postal address Regist Accounting Authority Nature business of andprincipalactivities Legal form entity of incorporationCountry of and domicile GENERAL INFORMATION ered office

** Subse * Shareho www.visite Offic First Na Southe P.O. Bo East 17 -25 Fle ------Biodive 1 (Act 1of Sched South Afri

London 5201 London Mr Z Mkiva** Mr L Bevil Mr Mr ZLFihlani A Baxt Dr N Mzilikazi Dr Ms SOnce MsT Putzi MsN Mo e of the Auditor General ule 3CPublic Entity interms of the Public Finance Management Act x 11235 rnwood East London 5213 rsity Conservation and Tourism Management tional BankLimited quent appointment to National Council of Provinces lder representative, not remunerated 999) ca et Streetet asterncape.co.za EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT na er e er ya * Annual Financial Statements for the year ended31 March, 2020

117

FINANCIAL INFORMATION 118

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 NDT CATHSSETA GRAP DEFF DEDEAT ECPTA 154 -193...... Notes to the Annual Financial Statements 131 -153...... Accounting Policies ...... Statement of Comparison of Budget and Actual Amounts ...... Cash Flow Statement ...... Statement of Changes inNet Assets ...... Statement of Financial Performance ...... Statement of Financial Position ...... Report of the Auditor General ...... Accounting Authority’s Responsibilities and Approval The reports and statements set out below comprise the Annual Financial Statements presented to the Provincial Legislature: Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT INDEX ABBREVIATIONS

Nati Culture Gene Depar Depar East onal Department of Tourism ern Cape Parks and TourismAgency rally Recognised AccountingPractice tment of Environment, ForestryFisheries and tment of Economic Development, Environmental AffairsTourism and , Arts, Tourism, Hospitality and Sports Sector Education and Training Authority 120 - 125 - 120 130 128 126 119 129 127 manner that inallreasonable circumstances isabove reproach. standards inensuring the entity’s business isconducted ina and allemployees arerequired to maintain the highest ethical of risk.These controls aremonitored throughout the entity adequate and segregation of duties to ensure anacceptable procedures level accounting effective framework, defined The standards include the proper manner. delegation a cost-effective of responsibilities within aclearly in deficit or error standards for internal control aimed at reducing the riskof meet these responsibilities, the accounting authority sets a strong control environment. To enable the members to entity and place considerable importance on maintaining internal financial control established the systemof the by for The members acknowledge that they areultimately responsible reasonable and prudent judgements and estimates. accounting policies consistently applied and supported by appropriate upon based statements financial are annual The directives issued by the Accounting Standards Board. Practice (GRAP) including any interpretations, guidelines and in prepared accordance with Standards been of Generally Recognised Accounting have statements financial annual The and relateddata. thatunrestrictedgiventheyfinancial are access recordsall to statementsfinancial annual management and ensure should of external auditors isto express anindependent opinion on the its operations and cash flows for the period then ended. The role affairs of the entity as at the end of the period and the results of thattheannualfinancial statements presentfairly statethe of in this report. It is the responsibility of the members to ensure financial statements and related financial information included and areresponsible for the content and integrity of the annual Act (Act 1of 1999), to maintain adequate accounting records The members arerequired by the Public Finance Management APPROVAL RESPONSIBILITIES AND ACCOUNTING AUTHORITY’S EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 24 July 2020 and were signed on its behalf by: basis, were approved by the accounting authority on 73, which have been prepared on the going concern Thefinancialannual statements to 6 pages on out set foreseeable future. resources to continue inoperational existence for the satisfied that the entity has accesshas or adequateto thecurrentfinancialreviewandthis position, are they forecast for the year to March 31, 2021 and, inlight of flow cash entity’s the reviewed have members The against material misstatementdeficit. or provide only reasonable, and not absolute, assurance control can financial internalofsystem However,any preparationthefinancialannualforthe statements. of relied on be recordsfinancial may thethatassurance that the system of internal control provides reasonable information and explanations given by management, The members areof the opinion, based on the constraints. and managed within predetermined procedures and controls, systems and ethical behaviour areapplied minimise it by ensuring that appropriate infrastructure, risk cannot be fully eliminated, the entity endeavours to known forms of riskacross the entity. While operating identifying, assessing, managing and monitoring all The focus of risk management in the entity is on Chairperson of the Board Ms NMona 119

FINANCIAL INFORMATION 120

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 4. 3. FOR OPINIONBASIS 2. 1. OPINION STATEMENTS ON THEAUDIT OFREPORT THEFINANCIAL Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT

AND TOURISM AGENCY PARKS CAPE PROVINCIAL LEGISLATURE ON THEEASTERN OF THEAUDITOR-GENERALREPORT CAPE TO THEEASTERN

the International Code of Ethics for Professional professional accountants and parts 1 and 3of sections 290 and 291 of the Code of ethics for auditor’s report. statements financial this the of section of audit the described inthe auditor-general’s responsibilities for responsibilities under those standards arefurther of South Africa, 1999 (Act No. 1of 1999) (PFMA). requirements of the Public Finance Management Act Accounting Practice Standards (SA of GRAP) and the South African Standards on Generally Recognised with in accordance ended then year the for flows financialMarchits 2020,cashperformance and and Eastern Cape Parks and Tourism Agency as at 31 the of position financial materialrespects,the all in In my o accounting significant policies. of summary a statements,including financial the to notes the as well as budget and actual amounts for the year then ended, cashflow statement and statement comparisonof of performance, statement of changes innet assets, 31Marchposition2020,at as statement financialof financial of statement the comprise which 193, to Cap I have audited the financial statements of the Eastern I amindep Inte I conducted my audit inaccordance with the e Parks and Tourism Agency set out on pages 126 rnational Standards on Auditing (ISAs). My pinion, the financial statements present fairly, endent of the entity inaccordance with 5. 9. 8. FOR THEFINANCIAL STATEMENTS RESPONSIBILITIES OF ACCOUNTING AUTHORITY 7. GLOBAL PANDEMIC) OFCORONAVIRUS 2019 DISEASE (COVID-19 6. OF MATTER EMPHASIS

opinion. my for basis a provide appropriate and sufficient to I belie codes. in accordance with these requirements and the IESBA Africa. I have fulfilled my other ethical responsibilities requirements that arerelevant to my audit inSouth for Accountants (IESBA codes) as well as the ethical Standards) of the International Ethics Standards Board Accountants (including International Independence In prepIn misstatement, whether due to fraud or error. material from free are statements that financial of determines is necessary to enable the preparation such internal control as the accounting authority GRAP and the requirements of the andPFMA, for statements inaccordance with Standards SA of prep The accounting authority isresponsible for the and circumstances. described how they plan to deal with these events performancecashandflows. Management have also of Covid-19 on the entity’s future prospects, the possible effects of the future implications which I draw attention to note 43 in the financial statements, modifie I draw attention to the matter below. My opinion isnot rto ad ar rsnain f h financial the of presentation fair and aration ve that the audit evidence Ihave obtained is dealswithsubsequent events specificallyand aringthe financial statements, the accounting d inrespect of this matter. 12. INTRODUCTION ANDSCOPE PERFORMANCE REPORT ON THEAUDITREPORT OF THEANNUAL 11. 10. THE AUDIT OF THEFINANCIAL STATEMENTS AUDITOR-GENERAL’S RESPONSIBILITIES FOR

no realistic alternative but to do so. to liquidate the entity or to cease operations, or has the appropriate governance structure either intends using the going concern basis of accounting unless as applicable, matters relating to going concern and ability to continue as agoing concern, disclosing, authority isresponsible for assessing the entity’s Afric In accordance with the Public Audit Act of South A furthe abo My objectives areto obtain reasonable assurance reliability of the reported performance information responsibility to report on the usefulness and general notice issued interms thereof, Ihave a annexure to this auditor’s report. in the included statements is financial the of audit these financial statements. economic decisions of users taken on the basis of the influence toexpected reasonablybe could they considered material if, individually or inaggregate, Misstatements can arise from fraud or error and are detect amaterial misstatement when it exists. conducted inaccordance with the ISAs willalways level of assurance but isnot aguarantee that anaudit includes my opinion. Reasonable assurance is a high to fraud or error, and to issue anauditor’s report that are free from material misstatement, whether due ut whether the financial statements as a whole statements financial as the whether ut a 2004 (Act No. 25 of 2004) (PAA) and the r description of my responsibilities for the EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 14. 13. Programme 1–operations Programme

report of the entity for the year ended 31 March2020: programme presented inthe annual performance in the general notice, for the following selected defined as framework, reporting and management with the criteria developed from the performance reported performance information inaccordance findings do not extend to these matters. reported performance information. Accordingly, my of future periods that may be included as of the part performance strategies and information inrespect any disclosures or assertions relating to planned delivery. My procedures also do not extend to the actions taken by the entity enabled service documents. My procedures do not examine whether performance indicators included inthe planning the completeness and appropriateness of the documents of the entity. Ihave not evaluated be based on the approved performance planning of the reported performance information, which must My proc I evalua express to assurance. evidence gather to not but findings report. Iperformed procedures to identify material programme presented inthe annual performance against predetermined objectives for the selected edures address the usefulness and reliability ted the usefulness and reliability of the performance report performance Pages inthe annual 60 -77 121

FINANCIAL INFORMATION 122

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 20. 19. INTRODUCTION AND SCOPE WITH LEGISLATION ON THEAUDITREPORT OF COMPLIANCE 18. TARGETS OFACHIEVEMENT PLANNED 17. OTHER MATTER 16. 15. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT

the general notice issued interms of the PAA. thewithspecific matters legislationkey in in out set evidence to express gather assurance. to not but findings identify to procedures performed legislation. I key in matters specific with compliance entity’s the on findings material report under- or over achievement of anumber of targets. targets for the year and explanations provided for the to 91 fo Refer to the annual performance report on pages 60 I draw attention to the matterbelow. information for programme 1–operations. and reliability of the reported performance I did n whether it was valid, accurate and complete. reported performance information to determine and relevant, and assessed the reliability of the the indicators and related targets were measurable I performed further procedures to determine whether with the approved performance planning documents. presented and whether performance was consistent repo I performed procedures to determine whether the dd n did I issu In accordance with the PAA and the general notice ed interms thereof, Ihave aresponsibility to rted performance information was properly ot raise any material findings on the usefulness ot raise any material findings on compliance on findings material any raise ot r information on the achievement of planned 24. 23. 22. 21. OTHER INFORMATION

oth The accounting authority isresponsible for the will not be necessary. report as appropriate. However, if it iscorrected this retract this auditor’s report and re-issue anamended the other information isnot corrected, Imay have to request that the other information be corrected. If the matter to those charged with governance and misstatement therein, I am required to communicate this information, if I conclude that there isamaterial of this auditor’s report. When I do receive and read misstated. in the audit, or otherwise appears to be materially performance report, or my knowledge obtained and the statements selected programme presented in the annual financial the with inconsistent consider whether the other information ismaterially is to read the other information and, in doing so, thereon. audit opinion or any form of assurance conclusion cover the other information and Ido not express an specifically reported inthis been auditor’s report. have that report performance and the selected programme presented inthe annual includefinancialthe statements, auditor’sthe report committee’s report. The other information does not which includes the directors’ report and the audit the information included inthe annual report I did not re In conne op My er information. The other information comprises inion on the financial statements does not does statements financial the on inion ction with my audit, my responsibility ceive the other information prior to the date 27. 26. OTHER REPORTS 25. CONTROLINTERNAL DEFICIENCIES

action for the minister of Finance to implement. findings, recommendationspublicwith remedial and financial year, the report has been finalised and made responsible employees. After the end of the current instituted internal disciplinary measures against Nelson Rolihlahla Mandela. Inprior years, the entity year inpreparation for the funeral of former President 2013-14 financial the during incurred expenditure and Tourism Agency. This is in connection with government, including the Eastern Cape Parks and maladministration by the Eastern Cape provincial misappropriation of public funds, improper conduct The pu of mypart opinion on the financial statements. and other related matters. This report did not form information, compliance with applicable legislation statements, entity’s performance financial reported have, animpact on the matters reported inthe con I draw attention to the following engagement significant deficiencies in internal control. any form of assurance on it. Idid not identify any legislation; however, my objective was not to express information and compliance with applicable t of I considered internal control relevant to my audit ducted by anexternal party which had, or could he financial statements, reported performance statements, reported financial he blic protector investigated allegations of EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 30 September 2020 East London Auditor General 123

FINANCIAL INFORMATION Flower Farms Eastern Cape, South Africa 1. • • • • 2. FINANCIAL STATEMENTS

AUDIT –AUDITOR-GENERAL’SANNEXURE FOR RESPONSIBILITY THE

respect to the selected subject matters. programme and on the entity’s compliance with on reported performance information for selected performed procedures statements financial the and professional scepticism throughout my audit of the iden financi In addition to my responsibility for the audit of the I exe of anaudit part As in accordance with the ISAs, conclu evaluat obtain anun accounting authority of the going concern basis authority board of directors, which constitutes the accounting estimates and related disclosures made by the used and the reasonableness of accounting effectiveness of the entity’s internal control for the purpose of expressing anopinion on the that areappropriate inthe circumstances, but not to the audit in order to design audit procedures internal control omissions, misrepresentations or the override of fraud may involve collusion, forgery, intentional fraud ishigher than for one resulting from error, as detecting amaterial misstatement resulting from to provide appropriate a basis for my opinion. The risk of notand sufficient is that evidence audit procedures responsive to those risks; and obtain due to fraud or error; design and perform audit statements, whether financial the misstatement of report, Ialso: tify and assess the risks of material rcise professional judgement and maintain de on the appropriateness of the use of the l ttmns s ecie i ti auditor’s this in described statements as al e the appropriateness of accounting policies derstanding of internal control relevant EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 4. 3. WITH GOVERNANCE COMMUNICATION WITHTHOSE CHARGED •

as c also I controlin that internal Iidentify during my audit. deficiencies significant any including andtiming ofthe audit and significant audit findings, regar I communicate with the accounting authority threats or safe guards applied. and, where applicable, actions taken to eliminate be thought to have abearing on my independence relationships and other matters that may reasonably regarding independence, and communicate all have complied with relevant ethical requirements and events inamanner that achieves fair presentation statements represent the underlying transactions financial the whether determine and disclosures, the including statements, financial the of content evaluat concern may cause anentity to cease operating as agoing auditor’s report. However, future events or conditions on the information available to me at the date of this based statements. are financial conclusions the My disclosures are inadequate, to modify my opinion on financial statements the about the material uncertainty in or, ifsuch disclosures related the to report exists, Iamrequired to draw attention inmy auditor’s concern. If Iconclude that amaterial uncertainty Parks and Tourism Agency to continue as agoing CapeEastern the of ability the on doubt significant exists relating to events or conditions that may cast evidence obtained, whether amaterial uncertainty financial statements. the Ialso conclude, based on the of audit preparation the in accounting of ding, among other matters, the planned scope e the overall presentation, structure and onfirm to the accounting authority that I that authority accounting the to onfirm 125

FINANCIAL INFORMATION 126

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Total Net Assets Accumulated surplus Net Assets Total Liabilities Employee benefit obligation Unspent grants and receipts Deferred revenue -game held for sale Provisions Social responsibility projects Trade payables obligation lease Current Liabilities Finance Liabilities Total Assets property Investment Service concession assets Property, plant and equipment Capitalisation reserve Non-Current Liabilities Finance lease obligation Employee related payables assets Heritage Intangible assets Non-Current Assets Game held for sale Cash and cash equivalents Other receivables Trade receivables Inventories Current Assets Assets (thousand)RandFigures in STATEMENT AT OF FINANCIAL POSITION AS 31 2020 MARCH Note(s) 18 11 10 19 16 15 14 13 12 12 17 9 8 7 6 5 4 3 2 6,9 365,836 366,698 2,4 457,997 529,948 163,250 201,973 184,757 288,670 153,837 133,629 298,134 327,975 327,974 39,304 22,991 23,505 20,531 12,597 24,812 17,216 7 216 17, 1,008 3,049 R’000 1,898 9,926 3,458 3,458 1,451 2020 230 191 - 106,861 329,633 329,633 128,364 290,329 295,918 39,304 22,991 40,528 21,503 55,820 15,346 79,383 92,161 10,455 12,142 21,312 1,308 8,606 8,606 4,066 R’000 2,063 6,071 2019 426 801 328 191 Deficit for the year Total expenditure expenses Operating Loss on disposal of assets Repairs and maintenance Debt impairment/Reversal Finance costs Impairment loss Depreciation and amortisation Personnel related costs Expenditure Total revenue Total revenuefrom transactions non-exchange Fines, penalties and forfeits Donations received Grants and subsidies Revenue from transactions non-exchange Total revenuefrom exchange transactions Profit on disposal of assets Actuarial gains Finance income Other income Rental income Accommodation revenue Rendering of services Wildlife income Revenue from exchange transactions Revenue (thousand)RandFigures in STATEMENT OF FINANCIAL PERFORMANCE EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 Note(s) 44 30 22 28 20 26 29 25 27 31 24 23 19 21 2622 (282,764) (296,242) 1488 (97,909) (104,838) 1767 (149,265) (157,607) 2,1)(27,053) (23,419) 9,8 266,561 294,583 6,9 236,254 263,497 263,114 169 (16,203) (1,659) (1,804) 502 (6,007) (5,072) 231 (2,526) (2,371) (1,149) 31,086 6,698 R’000 2,420 4,840 6,959 6,224 1,534 2,411 2020 383 18 - - 236,181 30,307 R’000 8,686 2,282 2,097 1,385 4,821 6,163 4,101 2019 772 (4) 72 1 - - 127

FINANCIAL INFORMATION 128

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Balance atMarch 31, 2020 Deficit for the year Restated* Balance 1, 2019 atApril Deficit for the year Balance 1, 2018 atApril (thousand)RandFigures in STATEMENT OF ASSETS CHANGES IN NET Capitalisation reserve 9342039329,633 345,836 290,329 39,304 306,532 39,304 39,304 1,0)(16,203) (16,203) - - Accumulated Accumulated surplus 288,670 (1,659) Total net assets 327,974 (1,659) Cash andcash equivalents atthe the endof year Cash and cash equivalents at the beginning of the year Net increase incash andcash equivalents Net cash flowsusedinfinancingactivities Finance lease obligation Movement insocial responsibility projects Cash flowsfrom financingactivities Net cash flowsusedininvesting activities Purchase of intangible assets Proceeds from sale of property, plant and equipment Purchase of property, plant and equipment Cash flowsfrom investing activities Net cash flowsfrom operating activities Finance costs Suppliers costs Employee Payments Finance income Grants and subsidies Own revenue Receipts Cash flowsfrom operating activities (thousand)RandFigures in CASH FLOW STATEMENTCASH EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 Note(s) 33 5 7 8 8 1284 (101,180) (102,894) 1682 (146,995) (156,852) 2970 (248,260) (259,790) 2,3)(8,041) (27,234) 2,5)(10,020) (27,252) 104,729 340,259 153,837 364,519 (3,041) (2,615) 74,454 79,383 17,301 (426) R’000 6,959 2020 (44) 18 - 296,105 271,450 79,383 20,554 38,067 41,316 47,845 R’000 1,895 (383) (140) 1,512 2,119 4,101 2019 (85) 129

FINANCIAL INFORMATION 130

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Performance Statement Financial of Actual Amount inthe Capital expenditure expenses General Finance charges Depreciation and amortisation employees of Compensation Grants and subsidies transactions Revenue from exchange differences Format andclassification Reconciliation Surplus for the year Total expenditure Capital expenditure impairments Impairment loss/ Reversal of Goods and services Compensation of employees of Compensation Expenditure Total revenue Other grants Grants transactions eeu rmecag 32,642 Revenue from exchange Performance Revenue Statement Financial of (thousand)RandFigures in Budget onCash Basis STATEMENT OF COMPARISON OF ANDACTUALAMOUNTS BUDGET 4950 699(7,0)(8,0)83,799 (288,802) (372,601) 36,979 (409,580) (135,001) Approved Approved 1612 25,096 (116,162) (158,417) ugtAdjustments budget 0,8 3,7)32613457(8,064) 364,537 372,601 (36,979) 409,580 161,819 215,119 - - (57,955) 20,976 8,162 3,721 - - - - (154,696) (126,839) (91,066) Budget 236,095 103,864 Final 32,642 - Actual amounts on comparable basis (102,894) (156,852) (23,419) 222,695 (27,252) (77,145) (1,659) (1,804) 117,564 (2,371) (8,147) 57575,735 75,735 24,278 7 252 27, (755) 7,191 budget andactual between final final between Difference Difference (13,400) (1,804) (8,364) (2,156) 23,945 13,700 63,814 Reference Note 40 Note Note 40 Note Note 40 Note Note 40 Note Note 40 Note Note 40 Note Basis preparation of The accounting policies set out below have been applied consistently in all material respectsAccounting policies to all periods in these annual financial statements. 1.

ACCOUNTING POLICIES

• • • • • • • Presentation Annual of Financial Statements

as far as ispracticable, and the prior year comparatives arerestated accordingly. accordingly. Where there has been achange inaccounting policy inthe current year, the adjustment ismade retrospectively in the current year, the correction ismade retrospectively as far as ispracticable, and the prior year comparatives arerestated amounts are restated. The nature and reason for the reclassification is disclosed. Where accounting errors have been identified hn t When Comparati a Standard of GRAP. the liability simultaneously. Revenues and expenses have not been offset except when offsetting isrequired or permitted by when, the entity has alegal right to set offamounts and intends either to settle on anet basis or to realise the asset and settle Financi periods to which they relate. are received or paid) and they arerecorded inthe accounting records and reported inthe Annual Financial Statements of the this basis, the effects of transactions and other events arerecognised when they occur (and not as cash or its equivalent cost except for certain assets and liabilities which aremeasured at fair value as set out inthe accounting policies below. On in the period inwhich the estimates arerevised and inany future periods affected. income and expenses. Actual results may differ from these estimates. estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, information presented has been rounded to the nearest thousand. Practice (GRAP), Public Finance Management Act, (Act 1of 1999) and specific regulations issued by National Treasury. Statement compliance of Offsettin The Annu Basis measuremen of Estim The p estUse of TheAnn Function The Annu as Going concern The Annu The Annu reparation of the Annual Financial Statements in conformity with GRAP requires management to make judgements, ates and underlying assumptions arereviewed on anon-going basis. Revisions to accounting estimates arerecognised al assetsal and liabilities setandare off the net amount presented thein statement of financial position when, and only he presentation or classification of items in the Annual Financial Statements is amended, prior year comparative year is prior amended, Statements Financial Annual the in items classification of presentation or he ual FinancialStatementsual entity’sthe is financialRand,AfricanpresentedwhichSouthfunctional currency.All are in al Financial Statements were authorised for issue by the Board on 24 July 2020. al Financial Statements have been prepared on agoing concern basis.. al Financial Statements have been prepared on anaccrual basis of accounting and areinaccordance with historical al Financial Statements have been prepared inaccordance with the Standards of Generally Recognised Accounting al andpresentation currency g imates andjudgements ve information sumption t EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 131

FINANCIAL INFORMATION 132

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Implementers fees based on calculations of activities done arerecognised as other income. Other income • • Revenue arising from the use by others of entity assets yielding interest isrecognised using the effective interest method when: Interest determined by services performed to date as apercentage of total services to be performed. Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date. Stage of completion is extent of the expenses recognised that arerecoverable. When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue isrecognised only to the is more significant than any other acts, the recognition of revenue is postponed until the significant act is executed. over the specified time frame unless there is evidence that some other method better representsWhen servicesthe are performed stage by an indeterminate of completion. number of When acts a over specific a specified act time frame, revenue is recognised on a straight line basis • • • • reliably when allthe following conditions aresatisfied: recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of atransactionWhen can be the estimated outcome of atransaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is Rendering services of • • • • • Revenue from the sale of goods isrecognised when allthe following conditions have been satisfied: goods of Sale Recognition length transaction. Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s equal value (primarily inthe form of goods, services or use of assets) to the other party inexchange. An exchange transaction isone inwhich the entity receives assets or services, or has liabilities extinguished, and directly gives approximately net assets, other than increases relating to contributions from owners. Revenuetheis gross inflow of economic benefits or service potential during the reporting period when those inflows an resultin increase in 1.1 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Revenue ismeasured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates. Measurement

ACCOUNTING POLICIES

the co it ispro the amo over the goods sold; the en the en Revenue from exchange transactions The amo It ispro the co the st it ispro the amo age of completion of the transaction at the reporting date can be measured reliably; and sts incurred for the transaction and the costs to complete the transaction can be measured reliably. sts incurred or to be incurred inrespect of the transaction can be measured reliably. tity has transferred to the purchaser the significant risksand rewards of ownership of the goods; tity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control bable that the economic benefits or service potential associated with the transaction will flow to the entity; bable that the economic benefits or service potential associated with the transaction will flow to the entity; and bable that the economic benefits or service potential associated with the transaction will flow to the entity; and unt of revenue can be measured reliably; unt of revenue can be measured reliably; unt of the revenue can be measured reliably. • • • • • • by considering: transaction.The fair values and estimated point ofsale costs for game classified “heldas for sale” are determined annually by management Fair value isthe amount for which anasset could be exchanged, or aliability settled, between knowledgeable, willing parties inanarm’s length sale transaction rather than through continuing use. TheECPTA classifies excess game identified offfor take (disposal), as “held for sale” as their value fair will be recovered principally through a reflected in are the Annual Financialand sale” Statements for “held as classified at fair value are less estimatedgame, excess being point as of saleprocess costscensus of disposal.game identifiedour through are which mammalsLarge 1.3 condition issatisfied, the amount of the reduction in the liability isrecognised as revenue. of the increase innet assets, ifany, recognised as revenue. When aliability issubsequently reduced, because the taxable event occurs or a be recognised it willbe measured as the best estimate of the amount required to settle the obligation at the reporting date, and the amount asset measured at its fair value as at the date of acquisition, unless it isalso required to recognise aliability. Where aliability isrequired to When, as aresult of anon-exchange transaction, the entity recognises anasset, it also recognises revenue equivalent to the amount of the Revenue from anon-exchange transaction ismeasured at the amount of the increase innet assets recognised by the entity. Measurement reduction. recognised as anasset, it reduces the carrying amount of the liability recogniseda and recognisesnon-exchange anamounttransaction from resources of revenue of equal inflow to that an of respect liability in obligationpresent a entitysatisfiesthe a recognised as As is also recognised inrespect of the same inflow. An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability Recognition parcel of grant income. When implementers fees form and part parcel of agrant and subsidy arrangement as set out inanagreement, it isrecognised as and part receiving approximately equal value inexchange. value from another entity without directly giving approximately equal value in exchange or gives value to another entity without directly Non-exchange transactions are transactions that are not exchange transactions. Inanon-exchange transaction, anentity either receives approximately equal value (primarily inthe form of cash, goods, services, or use of assets) to another entity inexchange. Exchange transactions aretransactions inwhich one entity receives assets or services, or has liabilities extinguished, and directly gives regulate the access of others to that benefit. Control of an asset arises when the entity can use or otherwise benefit from the asset in pursuit of its objectives and can exclude or otherwise is required to be consumed by the recipient as specified or future economic benefits or service potential must bereturned to the transferor.Conditionstransferredon stipulationsassetsare thatspecify that economicthe future benefits potential service or embodiedasset the in increase innetan assets, represents other which thanentity, increases an relating by toreceivable contributions and potential received from owners. service or benefits economic of inflows gross comprisesRevenue 1.2

ACCOUNTING POLICIES

animal wei target s auct exce Game held for sale Revenue from transactions non-exchange significan aver age animal weights and management set venison prices for internal culling game; and ion reserve prices established by reference to historical data and industry conditions for live game sales; ss game quantities as approved by the Board for offtake (disposal); elling prices set by management for hunting packages; t costs of disposal, where such costs can be separately identifiable from normal biodiversity conservation costs. ghts and prices as mutually agreed with service providers for external culling game, by abidding process; EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 133

FINANCIAL INFORMATION 134

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 when the asset isderecognised. deficitsurplusor recognisedin is amount.carryingItthe and differencedisposal the any, betweenproceeds,netthe is if loss or The gain disposal. Item Amortisation isprovided to write down the intangible assets on astraight line basis to their residual values as follows: amortisation method for intangible assets arereviewed at each reporting date. Intangible assets arecarried at cost less any accumulated amortisation and any impairment losses. The amortisation period and the Intangible assets areinitially recognised at cost. The cost of intangible assets isits fair value as at the date of acquisition. - - An intangible asset isrecognised when: - - An intangible asset isanidentifiable non-monetary asset without physical substance. An asset is identified asan intangible asset when it: 1.4 biodiversity inthese areas. theseof virtuespeciesBy being includedthe definedin protected areas the of legislative they form part mandate the of ECPTA conserveto Statements. FinancialAnnual to the of users benefit (disposal) additionalthe disclosure as for take off identified reflect excess game the onlyfor and In terms of the Framework for Preparation and Presentation of Financial Information, the ECPTA does not recognise its biodiversity assets census than small species such as the blue duiker. Applying auniform accounting approach to this range of species willnot be practical. (helicopters, GPS, GIS) and data analysis. In addition, the complexity in counting different species varies, such that elephantscounting are easier impractical. to Game counts arealso extremely expensive processes, as these frequently require the use of sophisticated technology to control movement of some species, this isnot anideal situation, and some species move freely despite these barriers, which make counting. This issue is further complicated by short term responses of game to weather conditions. While Faunafences are moveused naturally as artificial from one placebarriers to the other insearch of preferred habitat and aretherefore unpredictable interms of their availability for ecosystem isnot inline with biodiversity conservation principles. of biodiversity. Valuing certain animal species without taking into account the contribution of other organisms and other aspects of the to the largest) as well as the processes that maintain these patterns. It isnot possible to place areliable fair value on allmaterial aspectsbiodiversity conservation includescientific management the entire of ecosystem flora termssmallest in and of the (from fauna organism Attaching areliable “fair value” to allbiodiversity not “held for sale” isnot possible, for the following reasons: the key drivers for successful species and it isthus not practical to list such species, their of quantities variety large or a their values. of biologicalconsists assets the and protecteddefined areas biodiversityconservationin responsiblefor is ECPTAThe 1.3 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Int Co

ACCOUNTING POLICIES mputer software licences angible assets are derecognised on disposal, or when no future economic benefits or service potential are expected from its use or or use its from expected potential are service benefits or economic future no when or disposal, onderecognised are assetsangible

and from other rights and obligations. together with arelated contract, assets or liability; or is capa Intangible assets Game held for sale (continued) the co p is it arises f robablethat theexpected economicfuture benefits potentialservice or thatattributable are flow to will the the asset to entity; st or fair value of the asset can be measured reliably. ble of being separated or divided from anentity and sold, transferred, licensed, rented or exchanged, either individually or rom contractual rights or other legal rights, regardless of whether those rights are transferable or separate from the entity or

3 years life Useful Property -buildings Pr Item Depreciation isprovided to write down the cost, less estimated residual value over the useful life of the property, which isas follows: Investment property iscarried at cost less accumulated depreciation and any accumulated impairment losses. model Cost acquired at no cost or nominal cost (i.e. acquired inanon-exchange transaction) isits fair value at the date of acquisition. Investment property isinitially recognised at cost. Transaction costs areincluded inthe initial measurement. The cost of investment property with the investment property willflow to the entity, and the cost or fair value of the investment property can be measured reliably. Investment property is recognised as an asset when, it is probable that the future economic benefits or service potential that are associated • • • than for: Investment property isproperty (land or abuilding of -or abuilding part -or both) held to earn rentals or for capital appreciation or both, rather 1.5 An assessment of impairment isperformed at each reporting date and impairment losses arerecognised insurplus or deficit. any, and the carrying amount of the heritage asset. Such difference is recognised in surplusThe gainor or lossdeficit arising from the de-recognition when the of aheritage heritage asset shall be determined asset is as the derecognised. difference between the net disposal proceeds, if buildings, the fair value isdetermined using the replacement cost approach. Subsequent to recognition, heritage assets arecarried at cost less any accumulated impairment losses. In the case of specialised heritage environmentaltheir to due significance. life indefinite useful an have consideredto are theydepreciated asnot are Heritagerecognised.assets not are assetsthe Assets that qualify for recognition as heritage assets are initially measured at cost. Where the cost or fair value cannot be measured reliably, - - A heritage asset shall be recognised as anasset if, and only if: indefinitely for the benefit of present and future generations. Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held 1.6

ACCOUNTING POLICIES operty -land

sale inth administr use inth Investment property the co it ispro Heritage assets st or fair value can be measured reliably.

bable that future economic benefits or service potential associated with the asset will flow to the entity, and e production or supply of goods or services; or for e ordinary course of operations. ative purposes; or

EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 50 years indefini life Useful te 135

FINANCIAL INFORMATION 136

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Water supply infrastructure Electricity infrastructure Buildings Land Item The useful lives of items of property, plant and equipment have been assessed as follows: Subsequent to transfers to the relevant asset classes, the assets areaccounted for interms of the applicable GRAP Standard. recognised at cost and isonly transferred to the relevant asset category on completion of the project. Work inprogress isnot depreciated. Infrastructure work inprogress represents capital projects inprogress at year-end. Expenditure incurred on infrastructure projects is Property, plant and equipment aredepreciated on the straight line basis over their expected useful lives to their estimated residual value. Industry Guide to Infrastructure Service Delivery Levels and Unit Costs. in the cost of roads. The inclusion of storm water and signage isinline with the Department of Cooperative Governance and Traditional Affairs alongside the road. Where local topography requires more than minimal drainage, the cost willbe shown separately. Road signs areincluded The cost of storm water drainage isincluded inthe cost of the road where this takes the form of minimal transverse culverts and open drains infrastructure unless specifically identified; and otherwise stated. Water tanks attached to buildings; or fencing surrounding buildings and infrastructure arepresumed to of be the part buildings or Land accounted for as property, plant and equipment has anindefinite useful life and is not depreciated. losses. Subsequent to initial measurement, property, plant and equipment iscarried at cost less accumulated depreciation and any impairment carrying amount of the replaced isderecognised. part to, replace of, part or service it. If areplacement cost isrecognised inthe carrying amount of anitem of property, plant and equipment, the Costs include costs incurred initially to acquire or construct anitem of property, plant and equipment and costs incurred subsequently to add determinable, the deemed cost isthe carrying amount of the asset(s) given up. monetary and non-monetary assets, the asset acquired isinitially measured at fair value (the cost). If the acquired item’s fair value was not Where anitem of property, plant and equipment isacquired inexchange for anon-monetary asset or monetary assets, or acombination of arriving at the cost. condition necessary for it to be capable of operating inthe manner intended by management. Trade discounts and rebatesThe arededucted cost of anitem in of property, plant and equipment isthe purchase price and other costs attributable to bring the asset to the location and • • The cost of anitem of property, plant and equipment isrecognised as anasset when: working condition for their intended usage. All property, plant and equipment areinitially recorded at cost. Cost includes allcosts directly attributable to bringing the assets to their supply of goods or services, rental to others, or for administrative purposes, and areexpected to be used during more than one period. Property, plant and equipment aretangible non-current assets (including infrastructure assets) that areheld for use inthe production or 1.7 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Sani Ro Fi Buil IT e Of Mo Fur Pl

eld equipment ant and machinery ACCOUNTING POLICIES fice equipment ads and storm water tor vehicles niture and fixtures quipment ding attachments

tation infrastructure

the co it ispro plantProperty, andequipment

st of the item can be measured reliably.

bable that future economic benefits or service potential associated with the item will flow to the entity; and

30 -50 years 10 -60 ye 30 -40 years 10 -60 ye 2 -30years 5 years 3 years 5 years 4 years 6 years 5 years 5 -50 years Indefini Average lif useful te ars ars e between the net disposal proceeds, ifany, and the carrying amount of the item. derecognised. The gain or loss arising from the de-recognition of anitem of property, plant and equipment isdetermined as the difference Thegain orloss arisingfrom the de-recognition iteman of property,of plant andequipment includedis surplusin ordeficit when the item is an asset shall be recognised immediately insurplus or deficit. the asset shall be increased to its recoverable amount. That increase is a reversal of an impairment loss. A reversal of an impairment loss for determine the asset’s recoverable service amount since the last impairment loss was recognised. If this isthe case, the carrying amount of An impairment loss recognised inprior periods for anasset shall be reversed if, and only if, there has been achange inthe estimates used to no longer exist or may have decreased. If any such indication exists, the entity shall estimate the recoverable service amount of thatThe asset. entity assesses at each reporting date whether there is any indication that an impairment loss recognised in prior periods for an asset may estimated recoverable amount, the assets or cash generating units arewritten down to their recoverable amount. circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed the The carrying values of property, plant and equipment arereviewed for impairment at each reporting date, and when events or changes in accordance with GRAP 3–Accounting policies, changes inaccounting estimates and errors. Changes inresidual value, depreciation method and useful life represents changes inestimates and areaccounted for prospectively in separately. depreciated is item the of relation cost total the significant in to thatis cost equipmenta property,withandplant ofitem an of Eachpart Fencing 1.7 ACCOUNTING POLICIES

Property, plantProperty, andequipment (continued)

EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 10 -40 ye ars 137

FINANCIAL INFORMATION 138

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 • IT Equipment • • • The entity recognises an asset provided by the operator and anupgrade to anexisting asset of the entity as aservice concession asset if: • • Service concession assets areassets used to provide amandated function inaservice concession arrangement that: Service concession assets entity for aspecified period of time and the operator is compensated for its services over the period of the service concession arrangement. uses the service concession asset to provide a public service that falls within the entity’s mandate (mandated function) on behalf of the A service concession arrangement isacontractual arrangement between the entity and another entity (the operator) inwhich the operator 1.8 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Fur Of Sani W Ele Pl Buil Item been assessed as follows: intangible assets and heritage assets, to write down the cost, less residual value, by equal instalments over their useful lives which have Depreciation isprovided on service concession assets interms of similar items of property, plant and equipment, investment property, whether there isany indication that aservice concession asset isimpaired. The accounting policies on impairment of non-cash generating assets and impairment of cash-generating assets areapplied inconsidering concession assets aretreated as aseparate class of assets. of applying the accounting policies on investment property, property, plant and equipment, intangible assets and heritage assets,and heritage service assets to the subsequent measurement and de-recognition of similar items of service concession assets. For the purposes After initial recognition, the entity applies the accounting policies on investment property, property, plant and equipment, intangible assets operator isdetermined using estimation techniques. components separately not identifiable, are service and the component asset Where payments of from the service entitythe services. to the components service identifiable, separately the are arrangement concession of payments service from the entity a to the operator of components areallocated by reference service to the relative and fair values asset of the service concession the asset and the Where and equipment, intangible assets, or heritage assets, as appropriate. Reclassified service concession assets are accounted for in accordance with the Standards of GRAP investmenton property, property, plant operator.or the same amount as the service concession asset adjusted for any cash consideration from either the entity or operator to eitherExcept the where entity an asset was reclassified by the entity to a service concession asset, the entity initially measures the corresponding liability at assets at their carrying amounts, without any fair valuing at the date of reclassification. reclassifiedonlybe will accordance in with the applicable relatedasset Standard.GRAP The entity reclassifies assets concession to service concessionService assets measuredare at their fair valueon initial recognition except where the assets reclassifiedare which in case they

ater supply infrastructure ant and machinery ACCOUNTING POLICIES fice equipment ctricity infrastructure niture and fixtures dings

tation infrastructure

the term of the arrangement; the co it ispro the e price; the en are provi operator; or are provi concession arrangements Service

ntity controls (through ownership, beneficial entitlement or otherwise) any significant residual interest in the asset at the endof

st of the asset can be measured reliably. tity controls or regulates what services the operator must provide with the asset, to whom it must provide them, and at what bable that future economic benefits or service potential associated with the asset will flow to the entity; and ded by the entity which areexisting assets of the entity or areanupgrade to existing assets of the entity. ded by anoperator which the operator constructs, develops, or acquires from athird party; or areexisting assets of the

6 years 5 years 3 years 10 -60 ye 30 -50 years 30 -40 years 5 years 5 -50 years life Useful ars liability isreduced as the revenue isrecognised accordingly. is determined based on the substance of the service concession arrangement. When the conditions for revenue recognition aremet, the economic consumption of its access operator’s to the the servicereflect concession betterthat assetmanner and/or thea time value of money.paymentsin these The timing accountsentityfor arrangement, ofconcession thethe revenue service recognition the of term the an upfront payment, astream of payments, or other consideration to the entity for the right to use the service concession asset over Revenue from aservice concession arrangement isrecognised as it accrues over the period of the agreement. When the operator provides Service concession revenue recognised inaccordance with the substance of the service concession arrangement. any additional consideration from the entity to operator or vice versa. Subsequently, the entity recognises revenue andA deferred reduces the revenue liability -service concession liability isinitially measured at the same amount as the service concession asset adjusted for concession assets between the entity and the operator as adeferred revenue -service concession liability. or another revenue generating asset, the entity initially recognises the unearned portion of the revenue arising from the exchange of service construction,development, the operator for acquisition, the or upgradeto asset of aservicefinancial concessionanother asset, or and grantscash the pay operatorunconditional obligationto thean righthave to earn revenuenot fromdoesentity third-party the users Where acquisition, or upgrade of aservice concession asset, the entity accounts for the liability recognised as afinancial liability. unconditionalentitythe an Whereoperator obligationanotherhasconstruction, the financialthe or cashto for asset pay to development, Service concession liabilities 1.8 ACCOUNTING POLICIES

Service concession arrangements (continued)Service EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 139

FINANCIAL INFORMATION 140

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 • A financial asset is: transaction. Fair value isthe amount for which anasset could be exchanged, or aliability settled, between knowledgeable willing parties inanarm’s length contractual term of the financial instrument (or group of financial instruments). financial financialinstruments), instrument group of a (or contractual of entity expectedthe the theuse full shall life the over flows cash financial instruments estimated be reliably.can reliablypossible not to is However, estimateor when it cases those rare flows the cash in transactioncosts, and otherall premiums or discounts. There presumptiona is that the cash flows and the expected life group a of similar of to the contract that areanintegral of the part effective interest rate (see the Standard of GRAP on Revenue from Exchange Transactions),similar options) but shall not consider future credit losses. The calculation includes allfees and points paid or received between parties example, financial prepayment,instrument (for and contractual the considering call flows estimateof all cashentityterms shall rate, an financial liability. calculatingor effectiveWhen financial interestasset the the of amountcarrying net appropriate,theto periodshorter a ratethattheexactlydiscounts estimated paymentscash financialreceipts instrumentthe future throughexpected or the ofor, when life assetsfinancialor liabilities) allocating and of interestthe income interest or expense over relevantthe period. The effective interest rate is financial financial a liability of financialgroup calculatingor asset (or Thea methodeffectiveof ofinterest a amortisedcostthe method is • • • A derivative isafinancial instrument or other contract with all three of the following characteristics: De-recognition isthe removal of apreviously recognised financial asset or financial liability from an entity’s statement of financial position. entity. financialA instrument any is contract that gives rise financial a to asset of one entity a financialand liability a residualor interestof another 1.9 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT • • • • includes contributions from owners, which may be shown as: A residual interest isany contract that manifests aninterest inthe assets of anentity after deducting allof its liabilities. Aresidual interest A financial asset is past due when a counterparty has failed to make a payment when contractually due. other than short-term payables on normal credit terms. commitmentfirm providecommitmentLoan under a to credit pre-specifiedis conditions.and terms Loans payablefinancial are liabilities, • • • A financial liability isany liability that isa contractual obligation to: because aspecified debtor fails to make payment when due in accordance with the original or modified terms ofa debt instrument. financialA guarantee contract contract a is that requires issuerthe make specifiedto payments reimburse to incurs athe holder it loss for

ACCOUNTING POLICIES

- It issettl would be expected to have asimilar response to changes inmarket factors. It require variable isnot specific to a party to the contract (sometimes called the ‘underlying’). non-financial variablea the that of caseothervariable,the orprovidedindex, in credit ratingorrates, creditor prices rate, ofindex Its valu Financial instruments - a cont a residu cash exch delive entity. formal a entity’s net assets, either before the contribution occurs or at the time of the contribution; or a formal de equit

ange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity. ; y instruments or similar forms of unitised capital; r cash or another financial asset to another entity; or ractual right to: e changes in response to the change in a specified interest rate, financial instrument price, commodity price, foreign exchange exch receiv entity. al interest of another entity; or ed at afuture date. s no initial net investment or aninitial net investment that issmaller than would be required for other types of contracts that agreement, in relation to the contribution, establishing or increasing an existing financial interest in the net assets of an an of assets net the interestcontribution,financial existing in therelationagreement,increasingestablishing to an in or signation of atransfer of resources (or aclass of such transfers) by the parties to the transaction as forming of an part ange financial assets or financial liabilities with another entity under conditions that are potentially are the conditionsfavourable another under to entity that financial liabilities with or assets financial ange e cash or another financial asset from another entity; or • • concessionarythe loan that entity analyses is: initial loan. recognition, On a fact is in a concessionaryloan loan into its component a concessionary parts and accountsof for each component substance separately. the whether The assesses entity accounts first entity for that of a part The acquisition or issue of the financial asset or financial liability. Theentity measures financiala asset and financial liability initially at its value plus fair transaction costs directlythat are attributable to the Initial measurement financial of assets and financial liabilities contractual provisions of the instrument. tothe party financial a statement liabilityits financial position in entity a the becomes when of or financial asset entityThea recognises Initial recognition T Class or inthe notes thereto: Theentity has the following types financialof liabilities (classes and category) reflectedas on the face of the statement of financial position Cash and equivalents Other receivables T Class in the notes thereto: Theentity has the following types of financial assets (classes and category) reflectedas on the face of the statement of financial position or Classification • • • Financial instruments at fair value comprise financial assets or financial liabilities that are: fair value cannot be reliably measured. Financial instruments at cost are investments in residual interests that do not have a quoted market price in an active market, and whose • • or fixed have that liabilities financial non-derivative or assets determinable financial non-derivative payments, excluding those are instruments that: cost amortised at instruments Financial instrument. financial the of disposed or issuedacquired, not entityhadthe if incurred beenhave not wouldthat one is incrementalliability.cost An financial or financial asset a of disposalor attributableacquisition, issuedirectlythe Transaction toincremental are thatcosts are costs 1.9 rade payables rade receivables

ACCOUNTING POLICIES

where it isthe recipient of the loan. of the loan; or - - - instr combin deriva are held fo the en Financial instruments (continued) non-e a social b -

uments held for trading. Afinancial instrument is held for trading if: xchange revenue, in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers), tives; tity designates at fair value at initial recognition; or cost. financial initial recognition; and non-d evidence of arecent actual pattern of short-term profit-taking; on init it isacq ed instruments that aredesignated at fair value;

enefit in accordance with the Framework for the Preparation and Presentation of Financial Statements, where it is the issuer

r trading. erivativefinancial assets financial or liabilities with or fixed determinable payments are designated that at at value fair ial recognition it is ofpart a portfolio of identified financial instruments that are managed together and for which thereis

uired or incurred principally for the purpose of selling or repurchasing it inthe near-term; or instruments that do not meet the definition of financial instruments at amortised cost or instrumentsdefinition financialthefinancial meetinstrumentsinstruments or notof thatcost at amortised do at EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 Financi Category Financi Financi Financi Category al liability measured at amortised cost al asset measured at amortised cost al asset measured at amortised cost al asset measured at amortised cost 141

FINANCIAL INFORMATION 142

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 measured at amortised cost using the effective interest rate method. Trade payables areinitially measured at fair value plus transaction costs that aredirectly attributable to the acquisition and aresubsequently Trade payables Older than sixmonths but less than ayear Outstanding balance The entity provides for bad debts on outstanding trade receivables and other receivables as follows: the use of anallowance account. Anestimate ismade for doubtful receivables based on areview of alloutstanding amounts at year-end. Trade receivables and other receivables areassessed at least annually for possible impairment. Impairment adjustments aremade through effective interest rate method. Trade receivables and other receivables areinitially measured at fair value and aresubsequently measured at amortised cost using the Trade receivables and other receivables Measurement specificfinancial of instruments from the first date that the amount could be required to be paid. The fair value of a financial liability with a demand feature (e.g. a demand deposit) is not less than the amount payablewithout on modificationdemand, discounted or repackaging) or based on any available observable market data. the valuation technique and tests it for validity using prices from any observable current market transactions inthe same instrument (i.e. consistentis andacceptedpricewith setting a economic methodologies pricingfinancialfor instruments. Periodically, entity an calibrates marketlittlepossibleinputsasasentity-specificrelies andon inputs. incorporates It all factors that market participants would consider in of prices obtained inactual market transactions, the entity uses that technique. The chosen valuation technique makes maximumcommonly use of used by market participants to price the instrument and that technique has been demonstrated to provide reliable estimatesanother instrument that is substantially the same, discounted cash flow analysis and option pricing models. If there is a valuation usingtechnique recent arm’s length market transactions between knowledgeable, willing parties, ifavailable, reference to the current fair value of been on the measurement date inanarm’s length exchange motivated by normal operating considerations. Valuationfair techniques value by using avaluation include technique. The objective of using avaluation technique isto establish what the transaction price would haveThe best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active, the entity establishesFair value measurement considerations • • • The entity measures allfinancial assets and financial liabilities after initial recognition using the following categories: Subsequent measurement of financial assets and financial liabilities 1.9 Financial instruments (continued) Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Bad d Old amount, and minus any reduction (directly or through the use of anallowance account) for impairment. plus or minus the cumulative amortisation using the effective interest method of any difference between that initial amount and the maturity financial liability is the amount at whichor the financial financial asset asset a or financial of cost amortised liability impairment review. The an is subject measuredto are at initial cost, recognitionor cost, amortised minus measured financial assets at principal repayments,All

ACCOUNTING POLICIES er than ayear ebts arewritten offinthe year inwhich they areidentified as irrecoverable. Financi Financi Financi al instruments at amortised cost. al instruments at fair value. al instruments at cost.

100.00 % 50.00 % Provision for b ad debts Income for leases isdisclosed under revenue inthe statement of financial performance. as anexpense over the lease term on the same basis as the lease revenue. Initial directcosts incurred innegotiatingand arranging operatingleases addedare to the carrying amount of the leased asset and recognised Operating lease revenue isrecognised as revenue on astraight-line basis over the lease term. Operating leases -lessor Leased assets aredepreciated over the shorter of the lease term and it’s useful life. Any contingent rents areexpensed inthe period inwhich they areincurred. allocated to each period during the lease term so as to produceis aconstantcharge outstanding finance liability. periodicthe The rate reduction of of on the and remaining charge balancefinance of thetheapportioned liability.between payments are lease Minimum of financial position as afinance lease obligation. property or, iflower, the present value of the minimum lease payments. The corresponding liability to the lessor isincluded intheFinance statementleases recognisedare assetsas andliabilities thein statement financialof position amountsat equal to the value of the fair leased Finance leases -lessee operating lease ifit does not transfer substantially allthe risksand rewards incidental to ownership. leaseA classifiedis finance a as lease if it transfers substantially all risks the and rewards incidental to ownership.A lease is classified an as 1.10 Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers). that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are accounted for in accordance with the and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit. Any liabilitiesThe difference between the carrying amount of a financial liability (or of a financialpart liability)extinguished or transferred to another party financial liability. a financial original having new extinguished liabilityaccountedthe recognised as having is for and it of part existingfinancial liability a or extinguishedtheoriginalfinancial liability financial new a and liability recognised.a is Similarly,substantial modification an ofof the terms An exchange between anexisting borrower and lender of debt instruments with substantially different terms isaccounted for as having when the obligation specified in the contract isdischarged, cancelled, expires or waived. financial a liability) - of from is its statementThei.e. entityextinguished financial it part liabilityfinancial removes positiona a of (or when Financial liabilities • • • The entity derecognises afinancial assetwhen: only Financial assets De-recogni 1.9

ACCOUNTING POLICIES

- Leases - able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. Inthis case,the asset the to entity: another party and the other party has the practical ability to sell the asset inits entirety to anunrelated third party, and is thee the en the contractual rights to the cash flows from the financial asset expire, are settled orwaived; Financial instruments (continued)

ntity,despite having retained some significant and rewards risks ownershipof of financialthe asset, has transferred controlof tion tity transfers to another party substantially allof the risks and rewards of ownership of the financial asset; or recognis de-rec ognises the asset; and es separately any rights and obligations created or retained inthe transfer. EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 143

FINANCIAL INFORMATION 144

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 the asset and from its ultimate disposal and the entity applies the appropriate discount rate to those future cash flows. When estimating the value in use of an asset, the entity estimates the future cash inflows and outflows to be derived from continuingof use of anasset and from its disposal at the end of its useful life. Value in use of a cash-generating asset is the present value of the estimated future cash flows expected to be derived Valuefrom inuse the continuing use recoverable amount. useful life or acash-generatingindefinite an intangiblecash-generatingwith intangibleasset asseta not yet availabletest for usealso entity for impairmenttheimpairment, annually byindication comparing of itsany carrying amountis with itsthere whether of Irrespective indication exists, the entity estimates the recoverable amount of the asset. The entity assesses at each reporting date whether there isany indication that acash-generating asset may be impaired. If any such When the carrying amount of acash-generating asset exceeds its recoverable amount, it isimpaired. Identification • • Recoverable amount of anasset or a cash-generating unit isthe higher of its fair value less costs to sell and its value in use. Useful life iseither: parties, less the costs of disposal. Fair value less costs to sell isthe amount obtainable from the sale of anasset inanarm’s length transaction between knowledgeable, willing Depreciation (Amortisation) isthe systematic allocation of the depreciable amount of anasset over its useful life. Costs of disposal areincremental costs directly attributable to the disposal of anasset, excluding finance costs and income tax expense. that generates return a commercial cash of inflows generating from continuingthe objective use that are largely with managed independentof assets of identifiablethe group cash smallest inflows from theother assets or is groups cash-generating of assets. unit A depreciation and accumulated accumulated impairmentdeducting any after position statementfinancial lossestheof thereon. in recognised is asset an which at amount the is amount Carrying the asset’s future economic benefits or service potential through depreciation (amortisation). Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of when it isdeployed inamanner consistent with that adopted by aprofit-oriented entity. Cash-generating assets are assets managed with the objective of generating a commercial return. An asset generates a commercial return 1.12 estimated costs necessary to make the sale, exchange or distribution. Net realisable value isthe estimated selling price inthe ordinary course of operations less the estimated costs of completion and the Subsequently inventories aremeasured at the lower of cost and net realisable value. their fair value as at the date of acquisition. Inventories areinitially measured at cost except where inventories areacquired through anon-exchange transaction, then their costs are 1.11 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT

ACCOUNTING POLICIES

Inventories Impairment cash-gener of the numb the pe riod of time over which anasset isexpected to be used by the entity; or er of production or similar units expected to be obtained from the asset by the entity. ating assets • • Useful life iseither: Recoverable service amount isthe higher of anon-cash-generating asset’s fair value less costs to sell and its value inuse. parties, less the costs of disposal. Fair value less costs to sell isthe amount obtainable from the sale of anasset inanarm’s length transaction between knowledgeable, willing Depreciation (Amortisation) isthe systematic allocation of the depreciable amount of anasset over its useful life. Costs of disposal areincremental costs directly attributable to the disposal of anasset, excluding finance costs and income tax expenses. that generates return a commercial cash of inflows generating from continuingthe objective use that are largely with managed independentof assets of identifiablethe group cash smallest inflows from theother assets or is groups cash-generating of assets. unit A depreciation and accumulated accumulated impairmentdeducting any after position statementfinancial lossestheof thereon. in recognised is asset an which at amount the is amount Carrying the asset’s future economic benefits or service potential through depreciation (amortisation). Impairment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition of the loss of Non-cash-generating assets areassets other than cash-generating assets. when it isdeployed inamanner consistent with that adopted by aprofit-oriented entity. Cash-generating assets are assets managed with the objective of generating a commercial return. An asset generates a commercial return 1.13 remaining useful life. future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (ifany), on asystematic basis over its After a reversal of an impairment loss isrecognised, the depreciation (amortisation) charge for the cash-generating asset isadjusted in surplus or deficit. The increase is a reversal of an impairment loss. A reversal of an impairment loss for a cash-generating asset is recognised immediately in its recoverable amount. determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of the asset isincreased to An impairment loss recognised inprior periods for acash-generating asset isreversed ifthere has been achange inthe estimates used to that asset. generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverableThe entity amount assesses of at each reporting date whether there isany indication that animpairment loss recognised inprior periods for acash- Reversal impairment of loss useful life. to allocate the cash-generating asset’s revised carrying amount, less its residual value (ifany), on asystematic basis over its remaining After the recognition of animpairment loss, the depreciation (amortisation) charge for the cash-generating asset isadjusted infuture periods entity recognises aliability only to the extent that isarequirement inthe Standard of GRAP. When the amount estimated for animpairment loss isgreater than the carrying amount of the cash-generating asset to which it relates, the An impairment loss isrecognised immediately insurplus or deficit. recoverable amount. This reduction isanimpairment loss. If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its Recognition andmeasurement 1.12

ACCOUNTING POLICIES

Impairment non-c of Impairment cash-gener of the numb the pe riod of time over which anasset isexpected to be used by the entity; or er of production or similar units expected to be obtained from the asset by the entity. ash-generating assets ating assets (continued) EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 145

FINANCIAL INFORMATION 146

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 make such payments as aresult of past performance. The expected cost of surplus sharing and bonus payments isrecognised as anexpense when there isalegal or constructive obligation to additional amount the entity isrequired to pay as aresult of the unused leave days owing to employees at the end of the reporting period. or, inthe case of non-accumulating absences, when the absence occurs. The amount of the liability and expense isdetermined as the The expected cost of compensated absences isrecognised as anexpense as the employees render services that increase their entitlement discounted. leave,bonuses, and non-monetary benefits such as medical recognised are care), in the period which in the renderedservice is and are not The cost of short-term employee benefits, (those payable within 12 months after the service is rendered, such as paid vacation leave and sick 1.14 over its remaining useful life. in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (ifany), on asystematic basis After areversal of animpairment loss isrecognised, the depreciation (amortisation) charge for the non-cash-generating asset isadjusted generating asset isrecognised immediately insurplus or deficit. increased to its recoverable service amount. The increase isareversal of animpairment loss. Areversal of animpairment loss for anon-cash- to determine the asset’s recoverable service amount since the last impairment loss was recognised. The carrying amount of the asset is An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used amount of that asset. cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates theThe recoverable entity service assesses at each reporting date whether there isany indication that animpairment loss recognised inprior periods for anon- Reversal animpairment of loss remaining useful life. periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (ifany), on asystematic basis over its After the recognition of animpairment loss, the depreciation (amortisation) charge for the non-cash-generating asset isadjusted infuture the entity recognises aliability only to the extent that is arequirement inthe Standards of GRAP. When the amount estimated for an impairment loss is greater than the carrying amount of the non-cash-generating asset to which it relates, An impairment loss isrecognised immediately insurplus or deficit. reduced to its recoverable service amount. This reduction isanimpairment loss. If the recoverable service amount of anon-cash-generating asset isless than its carrying amount, the carrying amount of the asset is Recognition andmeasurement Value inuse of non-cash-generating assets isthe present value of the non-cash-generating assets remaining service potential. Value inuse its recoverable service amount. useful life or anon-cash-generating intangible asset not yet available for use for impairment annually by comparing its carrying amount with Irrespectivewhetherof there anyindicationis impairment,of the entity testsalso non-cash-generatinga intangible asset withindefinite an indication exists, the entity estimates the recoverable service amount of the asset. The entity assesses at each reporting date whether there isany indication that anon-cash-generating asset may be impaired. If any such When the carrying amount of anon-cash-generating asset exceeds its recoverable service amount, it isimpaired. Identification 1.13 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Shor ACCOUNTING POLICIES

t-term employeebenefits Impairment non-c of Employee benefits ash-generating assets (continued) unrecognised actuarial gains and losses and unrecognised past service costs. Theamountrecognisedthestatement in financialof position represents the present the definedof value benefit obligationas adjustedfor line basis over the average period until the amended benefits become vested. Postservice costs recognisedare immediately to the extent that the benefits already are vested, and are otherwise amortised a straighton an earlier date. Consideration isgiven to any event that could impact the funds up to end of the reporting period where the annual valuation isperformed at conducted on anannual basis by independent actuaries separately for each plan. is valuations Actuarial are method. projectedprovidingcredit determinedbenefits usingthe the unit of defined cost Forbenefit the plans benefit Defined plans Contributions to adefined contribution plan inrespect of service ina particular period arerecognised as an expense in that period. contribution Defined plans 1.14 ACCOUNTING POLICIES

Employee benefits (c ontinued) EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 147

FINANCIAL INFORMATION 148

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 • events but isnot recognised because: non-occurrence of one or more uncertain future events not wholly within the control of the entity or apresent obligation that arises from past contingentA liabilitypossible obligationa is thateventspastfromarises confirmed occurrenceexistence whose and the be by only or will Contingent liability required to settle the obligation. Where the effect of the time value of money ismaterial, the amount of aprovision isthe present value of the expenditures expected to be The amount recognised as aprovision isthe best estimate of the expenditure required to settle the present obligation at the reporting date. • • • A provision isaliability of uncertain timing or amount. Provisions arerecognised when: Provisions 1.15 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT reimbursement. estimatean itsfinancialof indicationeffect, an uncertainties of relating any amount the cash to flow and timing of possibilitythe or any of end of the reporting period abrief description of the nature of the provision, contingent liability and contingent asset and where practicable,The ECPTA shall disclose for each class of provisions, contingent assets and liabilities, unless the possibility of any cash flow is remote, at the Contingent assets areassessed continually to ensure that developments areappropriately reflected in the Annual Financial Statements. A contingent asset isdisclosed where aninflow of economic benefits or service potential is probable. appropriate. realised. However, when the realisation of revenue isvirtually certain, then the related asset isnot acontingent asset and its recognition Contingent is assets arenot recognised inAnnual Financial Statements since this may result inthe recognition of revenue that may never be possibility of aninflow of economic benefits or service potential to the entity. Contingent assets arise from unplanned or other unexpected events that arenot wholly within the control of the entity and give rise to the assets Contingent •

ACCOUNTING POLICIES

the amo It isnot p a reliab and p is it the en Provisions, contingent assets andcontingent liabilities robablethat outflow resources an of embodying economic benefits or potentialservice required be will settle to the obligation; tity has apresent obligation as aresult of apast event; le estimate can be made of the obligation. unt of the obligation cannot be measured with sufficient reliability. robable that anoutflow of resources embodying economic benefits will be required to settle the obligation; or met aliability isrecognised. any of the criteria, conditions or obligations embodied inthe agreement. To the extent that the criteria, conditionsRevenue or obligations received from conditional have not grants, been donations and funding arerecognised as revenue to the extent that the entity has complied with 1.20 uncompleted projects at reporting date arerecorded as acurrent liability. projects areincluded as cash and cash equivalents inthe Annual Financial Statements, and the corresponding project liabilitiesECPTA as aresult of isthe implementing agent for projects undertaken on behalf of other state organs. The bank balances held on behalf of the various 1.19 terms of the sale agreement. have been recognised as “held for sale” isdeferred until the sale has been concluded and the entity has discharged its responsibilities in identifiedcorrespondingThe being and excess censusgame, are as game revenue process whichthrough relatingour largemammals to 1.18 in accordance with GRAP 3and 8. IAS Surrendersto provincial revenue funddisclosed are onthe face ofthe statement offinancial position under current liabilities retrospectively of the relevant revenue fund. AccountingOfficer must surrender to the relevant treasury any unexpended voted funds, for re-depositing into the Exchequer bank account TreasuryRegulation 15.8 requiresthat,eachthe endofatfinancial year, after and account books of the the entityof have been closed, the in terms of section 53(3) of the Public Finance Management Act (Act 1of 1999). flow statement as at the end of the financial year, less any accruals relating to that Surrendersfinancial to provincial year and/or revenue surpluses fund relate approved to unspent for funds accumulation which means the positive balance in“cash and cash equivalents” as per cash 1.17 recognised as anexpense inthe period inwhich they areincurred. Borrowing costs areinterest and other expenses incurred by anentity inconnection with the borrowing of funds. Borrowing costs are 1.16 ACCOUNTING POLICIES

Conditional grants andreceipts responsibilitySocial projects revenue Deferred Surrenders to provinci Borrowing costs al revenuefund EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 149

FINANCIAL INFORMATION 150

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 expenditure inthe statement of financial performance but areincluded in the disclosure notes. statement contractualtheas liability financial position or in in arrangements.a of outrecognised as notsetCommitments are are funds are funded inthe Medium-Term Expenditure Framework period through explicit contracts, these are also recorded as commitments as the Commitments relate to outstanding capital and current purchase orders at year-end subject to the availability of funds. Where contracts 1.25 relevant authority or transferred to receivables for recovery. reasons therefore areprovided inthe disclosure note. The expenditure isremoved from the disclosure note when it iseither condoned by the disclosed isequal to the total value of the fruitless and wasteful or irregular expense unless it isimpracticable to determine in which case Fruitlesswastefulandexpenditureirregular and disclosed thenotesis thein toAnnual Financial Statements whenconfirmed. amountThe as revenue inthe statement of financial performance. expenditure is accounted for as an expense in the statement of financial performance and where recovered it is subsequently accountedIrregular for expenditure isexpenditure that iscontrary to legislation and has not yet been condoned or regularised by management. Irregular subsequently accounted for as revenue in the statement of financial performance. year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, andexpenditure whereAll recovered,relatingwasteful fruitlessandtoexpenditureexpense thestatement recognised an itin is asis financial of performancethe in exercised. Fruitless and wasteful expenditure means expenditure which was made invainand would have been avoided had reasonable care been 1.24 management personnel isincluded inthe emoluments disclosure notes. Transactions between the entity and key management personnel are disclosed in related party disclosures. Compensation paid to key personnel areconsidered to be those family members who may be expected to management influence key or to be influenced of members financial reporting standard. family by Close keythe management.definition of managementthekey per be consideredto are the of entity whether the activities directlyand or indirectly. controlling The Board, directing Audit Committee, planning, Executive responsibility for Management and authority having as persons well as the Legal as Advisor defined /Board secretary management is Key Such entities areconsidered to be related parties. The ECPTA operates inaneconomic sector whereby it interacts with other entities within the national and provincial sphere of government. 1.23 relevant funder. fundsAll received for specific projects are separately managed and used only for such funds unless written permission is obtained from the • • Cash and cash equivalents consist of: 1.22 • • • Capital reserves consist of: 1.21 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT

ACCOUNTING POLICIES

Related andkeymanagement parties personnel agent. implementing re Cash Cape Parks and Tourism Agency Act (Act 2of 2010); and Cash re Cash andcash equivalents Rese Rese Cape Tourism Board; Rese Capital reserves Commitments Fruitless andwasteful andirregular expenditure rves raisedrves upon the assignment of assets to the ECPTA on establishment. createdrves upon the initial valuation of game held for sale; and raisedrves upon the initial transfer of funds relating to infrastructure projects which were initially implemented by the Eastern lating to own revenue and the funds transferred from DEDEAT in respect of the mandate of the ECPTA as defined in the Eastern aig o ud taserd rm aiu aece fr pcfc rjcs f hc te CT hs en pone asthe been appointed has ECPTA the which of projects specific for agencies various from transferred funds to lating National Treasury. performance and the budget isincluded inthe Annual Financialstatementfinancialreconciliation Statements thebetweenof A basis. cash as wella as theon recommended is budget disclosureaccountingthewhereas as determinedof basis accrual by the on prepared The Annual Financial Statements and the budget arenot prepared on the same basis of accounting. The Annual Financial Statements are 1.26 ACCOUNTING POLICIES

Budget information EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 151

FINANCIAL INFORMATION 152

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Annual Financial Statements. respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the Theentityestimate disclosestatementitstheevent financialan thenature a andwill of effect or that estimatesuch in made cannot be event occurred. Theentity adjustwill the amount recognised thein Annual Financial Statements toreflect adjusting events after the reporting date once the • • Annual Financial Statements areauthorised for issue. Two types of events can be identified: Events after reporting date arethose events, both favourable and unfavourable, that occur between the reporting date and the date when the 1.28 be allocated to asegment on areasonable basis. segment, or can be allocated on areasonable basis. Segment expenses arethose expenses that aredirectly attributable to asegment,Segment or can revenuethattherevenueportion is oftheentity’s reported in statement financial of performance directly attributable that is a to directly attributable to asegment or can be allocated on areasonable basis. Segment assets and liabilities consist of those assets and liabilities that areused by asegment inits operating activities, and areeither Measurement identified or alternatively an aggregation of two or more of those segments where the aggregation criteria are met. consistent with those used inmeasuring the corresponding amounts inthe entity’s Annual Financial Statements. TheyThe arethe segments reported segment amounts arethose that management believes aredetermined inaccordance with the measurement principles most activities identified in budget documentation generally reflect the segments for which the entity reports information to management.makingdecisions about how future resources bewill allocated and to the performance assessing various activities of purposes undertaken management, for both reported to by the entity. information is The which major classifications in way the identifiedof by Segmentsare • • • A segment isanactivity of anentity: 1.27 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT

ACCOUNTING POLICIES

Events after date reporting for which s assessing its performance; and whose re between activities of the same entity); that informationSegment thos thos e that areindicative of conditions that arose after the reporting date (non-adjusting events after the reporting date). e that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); and eeae eooi bnft o srie oeta (nldn eooi bnft o srie oeta rltn to transactions relating potential service or benefits economic (including potential service or benefits generates economic sults areregularly reviewed by management to make decisions about resources to be allocated to that activity and in eparate financial information is available. of this Standard willnot have asignificant impact on the financial position, financialperformance or cash flows of the entity. Management have considered the above-mentioned GRAP Standard approved or issued but not yet effective and anticipates that the adoption GRAP 104 The following prescribed Standard of GRAP has been issued but arenot yet effective as at 31 March 2020. to previous Annual Financial Statements. The recognition and measurement principles of the approved and effective standards do not differ or result inmaterial differences compared principles contained inDirective Two issued by the inMarch ASB 2009. Practice (GRAP) issued by the Accounting Standards Board and (ASB) the transitional provisions as applicable interms of the standardThe and Annual Financial Statements have been prepared inaccordance with the prescribed Standards of Generally Recognised Accounting 1.29 ACCOUNTING POLICIES

GRAP Standards

Financi al Instruments -Revisions to align the Standard with IFRS 9on Financial Instruments. EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 153

FINANCIAL INFORMATION 154

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Reconciliation impairment of allowance andbad debts agencies. Board subsequently approved the process of write-off after exhausting allrecovery strategies and engaging with the law enforcementThe trade debtors (see Note was 44) reduced by anamount thousand. of R444 This amount relates to fraudulent transactions which the other receivables have been pledged as security. ECPTA considers that the carrying amount of trade receivables and other receivables approximates their fair value. No trade receivables and equipment. During the year, anamount of R135 thousand (2019: R466 thousand) was transferred from maintenance materials to property, plant and Grants receivable comprises of: Grants receivable funded Double DriftProject and Youth Environmental Services Programme. The receivable from Social projects consists of amounts owed inrespect of the National Department of Environment, Forestry and Fisheries Reconciliation of movement ingrants receivable 4. 3. 2. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Figures in Rand (thousand)RandFigures in Impairment allowance Rent receivable Fuel Amounts written off as uncollectible (Note 44) Opening balance Operating lease receivables Trade debtors Maintenance materials Impairment allowance Prepaid expenses Social projects Debts receivables(staffdebts) receivableSARS Grants receivable Deposits Culture, Arts, Tourism, Hospitality and Sports Sector Education and Training Authority South African National Biodiversity Institute South African National Roads Agency Limited NOTES TO THEANNUALFINANCIAL STATEMENTS

Trade receivables Inventories Other receivables 1,008 1,898 3,049 (208) (299) 1,813 1,538 2020 208 709 205 366 343 200 530 709 326 727 85 76 45 - - - 1,308 2,063 (208) 1,242 1,060 (109) 2019 208 801 356 208 546 328 631 190 22 45 66 45 45 3 - - - 5. 4. Education and Training Authority Culture, Arts, Tourism, Hospitality and Sports Sector South African National Biodiversity Institute South African National Roads Agency Limited Economic Stimulus Fund and Environmental Protection and Infrastructure Programme Rhino Impact Bond N2 Biodiversity Offset account Commission Commission for Restitution of Land Rights account and National Lotteries South African National Biodiversity Institute account South African National Parks account NDT -Universal Accessibility account NDT -Tourism Monitors account NDT -Infrastructure account NDT -Baviaanskloof account account Revenue Main account Bank balances consist of the following bank accounts with First National Bank Limited: Bank balances Other cash and cash equivalents Bank balances Cash on hand Cash and cash equivalents consist of: Amounts written off as uncollectable Provision for impairment Opening balance Reconciliation impairment of allowance Education and Training Authority Culture, Arts, Tourism, Hospitality and Sports Sector Marine and Coastal Management 31 March 2019 31 March 2020 Figures in Rand (thousand)RandFigures in NOTES TO THEANNUALFINANCIAL STATEMENTS

Cash andcash equivalents Other receivables (continued) receivable at receivable at start of year start of year Balance Balance EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 434 434 45 45 - - (3,000) - Current year Current year receipts receipts (3,389) (389) (45) (45) - - Transfers to Transfers to revenue revenue 153,837 152,214 102,554 152,214 15,018 3,000 3,000 1,095 2,687 1,499 1,543 2020 1,198 1,451 3,871 9,414 ,526 7, 5,712 299 709 366 343 190 109 172 97 - - - receivable at end receivable at end of year Balance Balance of year 79,383 75,253 12,002 75,253 21,430 7 4 0 6 17, 9,894 4,066 2,202 1,436 8,651 2019 1,141 (26) 305 709 366 343 109 545 134 45 43 64 45 1 - - - 155

FINANCIAL INFORMATION 156

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 - - events occured (see note 43): Subsequent to the entity submitting its Annual Financial Statements for auditing, as required by the PFMA on 31 July 2020, the following year. The actual figures of wildlife sales made during the year areincluded inrevenue. Refer to note 20. speciesidentified disposal. for The Board resolvedhas itsat board meeting during the year on the off-take (disposal) figures for currentthe The number of animals for off-take (disposal) isapproved by the ECPTA Board, and the value of game held for sale varies with the type of switch between the methods listed below to achieve the desired capacity. packages and culling. The table below gives anindicative number of animals to be disposed off. Management has the delegated authoritypractices, to isheld over a3-year cycle. Excess game areidentified for sale in the following year and the sale comprises live game sale, hunting A census to determine the current stocking rate and to ensure that the veld carrying capacity isnot exceeded, inline with biodiversity best 6. cash and cash equivalents relate to unspent grants. Refer to note 18. Theentity’s itsfinancialto liabilitiesinterestexposureassets and toincluding risk disclosed ratenote 38. risk in and balances The is bank new projects. The amounts received for these multi-year projects were received inDecember 2019. Economic Stimulus Fund and Environmental Protection and Infrastructure Programme balance of R102 million relates to grant funding for implementing agent and arering fenced for application to activities within those projects. Refer to note 15. Other cash and cash equivalents relates to social responsibility projects. These bank balances areheld by the ECPTA inits capacity as the than the bank balances of R139 million due to accruals charged to the projects but only paid after year end. R139 million, as Treasury allows. These approximate monies unspent. Refer to notes 18 and 39. The unspent amountsThe of Main R133,6 and Revenue million accounts isless aremaintained for day to day activities,totalling to R13,2 million. The entity has project accounts, totalling to 5. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT

Game held for sale Figures in Rand (thousand)RandFigures in Internal culling game Hunting game Live game Events after reporting date (Note 43) Game estimated External culling game NOTES TO THEANNUALFINANCIAL STATEMENTS

reasons and this isanticipated to meet the revised revenue estimate. million. Manag Theliv Game held for sale Cash andcash equivalents (continued) e game and huntingrealise,auctionsignificantly,andgamenot anticipated.did revenue e the as R2,6 adjustment An of been made has ement inAugust 2020, in-line with delegated powers has re-allocated animals for off-take in-line with operational and strategic

(2,649) 3,006 3,458 3,357 6,107 3,458 2020 287 33 31 8,606 8,606 2,357 8 2019 ,606 940 708 297 412 - 7. 8. Figures in Rand (thousand)RandFigures in Total nrsrcue-wr npors 20,569 Infrastructure -work inprogress ae upyifatutr 405(12,320) 24,085 Water supply infrastructure Sanitation infrastructure Electricity infrastructure Field equipment Field Building attachments Fencing Roads and storm water IT equipment Office equipment Motor vehicles Motor Furniture and fixtures Plant and machinery Buildings Computer software licences Reconciliation intangible of assets -31 March 2019 Computer software licences Reconciliation intangible of assets -31 March 2020 licences Computer software NOTES TO THEANNUALFINANCIAL STATEMENTS

Intangible assets Property, plantProperty, andequipment Valuation Cost / / Cost ,2 (3,398) 3,628 Valuation 7,4 3564 5263090(299,524) 370,940 65,246 (305,694) 370,940 Cost / Cost 787,813 8,210 187, 18,394 556(659 18,997 (56,579) 75,576 11,276 34,740 13,115 ,0 (4,216) 6,904 3,452 8,853 ,2 (3,582) 5,324 ,375 7, Carrying value amortisation Accumulated Accumulated 2020 accumulated Accumulated depreciation impairment (489,679) 4,4)142,168 (45,042) 1,1)1,2 056(17,409) 30,526 15,229 (19,511) and (14,619) 366 3,679 (3,696) 988 3,217 (9,898) 680 1,993 (6,860) (1,542) 2020 610 5,156 (6,120) EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Carrying value Annual Financial Statements for the year ended31 March, 2020 Opening balance 20,569 - Carrying 230 291 value 298,134 11,765 2,688 1,910 3,775 1,742 2019 Cost / Valuation Cost diin mriainTotal Amortisation Additions Opening balance Valuation ,2 (3,300) 3,628 Cost / Cost 328 140 6,3 4867 295,918 (468,617) 764,535 184,275 18,397 12,102 75,724 369(11,829) 23,619 11,271 6,666 6,794 8,547 ,1 (3,437) 5,219 ,283 7, 3,172 amortisation mriainTotal Amortisation Accumulated 2020 accumulated Accumulated depreciation impairment 2019 (103) (54,688) (98) (14,221) and 3,1)146,365 (37,910) (3,504) 368 2,978 (3,688) 653 1,984 (6,563) (5,824) (8,669) (1,351) Carrying value - Carrying value 11,790 21,036 13,117 71,416 5,447 6,794 3,433 3,779 1,782 1,821 4,176 2019 230 328 328 157

FINANCIAL INFORMATION 158

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Figures in Rand (thousand)RandFigures in 8. Property, plant and equipment (continued) NOTES TO THEANNUALFINANCIAL STATEMENTS Reconciliation of property, plant and equipment - 31 March 2020 Opening Additions Disposals Transfers Depreciation Impairment Total balance loss Buildings 146,365 3,743 (600) - (5,536) (1,804) 142,168 Plant and machinery 1,984 508 (8) - (491) - 1,993 Furniture and fixtures 4,176 644 (49) - (996) - 3,775 Motor vehicles 13,117 5,478 (371) - (2,995) - 15,229 Office equipment 1,782 418 (31) - (427) - 1,742 IT equipment 3,433 1,212 (30) - (1,398) - 3,217 Roads and storm water 71,416 - - - (6,170) - 65,246 Fencing 21,036 61 (21) - (2,079) - 18,997 Building attachments 2,978 363 (11) - (642) - 2,688 Field equipment 1,821 486 (26) - (371) - 1,910 Electricity infrastructure 5,447 5 - - (296) - 5,156 Sanitation infrastructure 3,779 92 - - (192) - 3,679 Water supply infrastructure 11,790 467 - - (492) - 11,765 Infrastructure - work in progress 6,794 18,190 - (4,415) - - 20,569 295,918 31,667 (1,147) (4,415) (22,085) (1,804) 298,134 Included in additions are donated assets of amount R nil (2019: R1 thousand). Refer to note 26. The entity has amended the classification of Property, plant and equipment to include expenditure on Infrastructure - work in progress. This has resulted in an increase of R6,794 million in the prior year carrying amount of Property, plant and equipment. Refer to note 42. 2020 2019 Figures in Rand (thousand)RandFigures in 8. Property, plant and equipment (continued) NOTES TO THEANNUALFINANCIAL STATEMENTS Reconciliation of property, plant and equipment - 31 March 2019

Opening Additions Disposals Transfers Depreciation Total balance Buildings 149,966 2,484 (499) - (5,586) 146,365 Plant and machinery 1,902 654 (44) - (528) 1,984 Furniture and fixtures 5,123 447 (55) - (1,339) 4,176 Motor vehicles 13,019 4,053 (693) - (3,262) 13,117 Office equipment 1,905 389 (34) - (478) 1,782 IT equipment 4,508 399 (8) - (1,466) 3,433 Roads and storm water 79,780 - - - (8,364) 71,416 Fencing 20,851 2,712 - - (2,527) 21,036 Building attachments 3,620 92 (11) - (723) 2,978 EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Field equipment 1,929 285 (3) - (390) 1,821 Electricity infrastructure 5,744 - - - (297) 5,447 Annual Financial Statements for the year ended31 March, 2020 Sanitation infrastructure 4,012 - - - (233) 3,779 Water supply infrastructure 12,278 - - - (488) 11,790 Infrastructure - work in 7,822 4,145 - (5,173) - 6,794 progress 312,459 15,660 (1,347) (5,173) (25,681) 295,918

Assets subject to finance lease (Net carrying amount) IT equipment 168 571 2020 Property, plant and equipment amounting to R4,415 million (2019: R5,173 million) and included in additions was transferred from Infrastructure - work in progress. No property, plant and equipment is pledged as security for any transaction. 2019 159

FINANCIAL INFORMATION 160

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Reconciliation of service concession assetsReconciliation -31 service of March 2019 concession assetsReconciliation -31 service of March 2020 9. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Total Furniture and fixtures Office equipment Furniture and fixtures IT equipment Office equipment Water supply infrastructure IT equipment Sanitation infrastructure Water supply infrastructure Electricity infrastructure Sanitation infrastructure Plant and machinery Electricity infrastructure Buildings Plant and machinery Buildings Buildings IT equipment Water supply infrastructure Sanitation infrastructure Electricity infrastructure Plant and machinery Furniture and fixtures Office equipment Figures in Rand (thousand)RandFigures in NOTES TO THEANNUALFINANCIAL STATEMENTS

Service concession assets Service Valuation Cost / Cost 18,950 28,615 ,0 49 ,6 ,0 34 3,966 (334) 4,300 3,861 (439) 4,300 ,0 (258) 3,001 1,021 balance Opening 394 550 375 24 058(0 1,9)(0)24,812 (900) (14,796) (20) 40,528 32,532 accumulated Accumulated 3,966 depreciation 2,803 impairment 224 283 352 354 14 2020 and 383 4824,6 341 40,528 (3,441) 43,969 24,812 (3,803) (1,735) (230) (777) (324) ipsl rnfr ercainTotal Depreciation Transfers Disposals (27) (13) Carrying (20) value 7 215 17, ------1,9)(521) (14,796) - 2,743 226 348 244 164 11 balance Opening Valuation 168(,4)40,528 (1,140) 41,668 322(720) 33,252 Cost / Cost ,6 6)2,803 (60) 2,863 4,070 34,244 485 339 281 361 ,0 18 2,803 (198) 3,001 1,021 17 550 454 375 - (40) - (108) - (60) - - 15 3,861 (105) - (57) - 24 ercainTotal Depreciation accumulated Accumulated depreciation impairment 2020 2019 and 14 3,966 (104) (133) (1,712) (56) (57) (230) (669) (3) (6) (7) (3) (267) (10) (21) Carrying value 32,532 32,532 7 215 17, 2,743 2019 226 348 244 224 224 283 283 352 352 354 354 164 11 14 14 could not be met. The service concession asset was transferred to investment property. Refer to note 11. The agreement with Miarestate Wildlife (Pty) Ltd was terminated on anamicable basis during the year due to concession conditions that - - The concession payments, payable by the operator inthe event that the project becomes profitable are as follows: use the conference centre with abook value of R15,294 million for the purpose of this project. centre facilities at East London Coast Nature Reserve during the concession period of ten (10) years effective from 14 Decemberthe 2017 right during the concession and period to to generate, charge and collect revenues from the operation of Cape Morgan multi-purposeThe conference ECPTA entered into aconcession agreement with Miarestate Wildlife (Pty) Ltd, (the operator); whereby the entity has granted the operator - - - The concession payments, subject to annual review and payable by the operator areas follows: facilities areto be operated by the local community identified as beneficiaries in partnership with the entity. date. Service concession assets aremaintained by the operator during the concession period; and after expiry of the concession period, the equipment (R29,062 million) have been received from the National Department of Environmental Affairs by the entity for this project to Donated assets to the value of R56,238 million; and consisting of service concession assets (R27,176 million) and property, plant and purpose of this project. renewal option; and to use the concession facilities received as adonation from the National Department of Environmental Affairs for the Dam facilities at Luchaba Nature Reserve during the concession period of twenty (20) years effective from 01 December 2015,entity with no granted the operator the right during the concession period to generate, charge and collect revenues from the operationThe ECPTA of Mthatha entered into a concession agreement with Naritasan Koya Trading, trading as Mthatha Dam Amenities (the operator) whereby the Mthatha dam concession arrangementsConcession service 9.

Figures in Rand (thousand)RandFigures in NOTES TO THEANNUALFINANCIAL STATEMENTS

assets. The foll Conce Morgan multi-purpose facility concession Conce Conce Fixed re concession assets (continued) Service ssion fee of thirty five percent (35.00%) of net profit payable to the ECPTA; fifty profit and percentpercent net of fourgate of(50%) ofssion(4.00%) takingsfee profit payableto ECPTA. the ECPTA Cape ssion fee of four percent (4.00%) of net profit payable to the community development fund; and owing expenses arefor the account of the concessionaire: insurance, municipal services and maintenance of concession ntal of R85 thousand per annum with escalation linked to the consumer price index payable to the ECPTA; EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 2020 2019 161

FINANCIAL INFORMATION 162

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Reconciliation heritage of assets -31 March 2020 the consideration paid on purchase by the entity. Land purchased by the former Eastern Cape Parks Board to the cost of R22,991 million was recognised as heritage assets at the fair value of Financial Statements transactions. For that reason, ECPTA heritage assets acquired from non-exchange transactions could not be recognisedactivities, inthe Annual ECPTA could establish neither afair value/deemed cost nor areplacement cost for its heritage assets acquired from non-exchangeusing guidance from Directive 7: The Application of deemed cost issued by the Accounting Standards Board. Due to the nature of ECPTA’slisted below. For the heritage assets which were obtained from non-exchange transactions, ECPTA attemptedHeritage to establish assets the value thereof consist of various parks that were assigned to the former Eastern Cape Parks Board, with estimated area inhectares as Details heritage of assets Reconciliation heritage of assets -31 March 2019 10. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Land Land Land Figures in Rand (thousand)RandFigures in - - - - Great Fish River Nature Reserve Reserve Heritage assets measured atcost The nature reserves, including land acquired subsequent to the transfer, comprise the following: -

NOTES TO THEANNUALFINANCIAL STATEMENTS

827 he 18,1 Comp 1,605 h Comp Heritage assets 60 hectares acquired at cost Mpofu Nature Reserve rising of Baviaanskloof Wilderness Area, StinkhoutbergCockscomb and rising of SamKnott and Double Drift Nature Reserves ctares acquired at cost ectares acquired at cost Baviaanskloof Nature Reserve Valuation Cost / / Cost 22,991 Accumulated impairment losses 2020 29122,991 22,991 - Carrying value 2019 Cost / Valuation Cost Accumulated impairment 22,991 Opening Opening 15,534 balance balance losses 5,659 1,798 2020 29122,991 22,991 22,991 22,991 22,991 - Carrying value Total Total 22,991 15,534 5,659 1,798 2019 10. Heritage assets (continued) Figures in Rand (thousand)RandFigures in Great Fish River Nature Reserve Reserve Heritage assets fair which values cannot bereliably measured The Island Nature Reserve Groendal Nature Reserve Formosa Nature Reserve - Comprising of Baviaanskloof Wilderness Area, Stinkhoutberg and Cockscomb Reserve - Comprising of SamKnott and Double DriftNature Reserves Baviaanskloof Nature Thomas Baines Nature Reserve Mkhambathi Nature Reserve Nduli –Luchaba Nature Reserve Silaka Nature Reserve Hluleka Nature Reserve Dwesa –Cwebe Nature Reserve Hamburg Nature Reserve East London Coast Nature Reserve Fort Fordyce Nature Reserve Mpofu Nature Reserve Tsolwana Nature Reserve Waters Meeting Nature Reserve Commando DriftNature Reserve Oviston Nature Reserve Ongeluksnek Nature Reserve NOTES TO THEANNUALFINANCIAL STATEMENTS EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 hectares Estimated area in 7,4 377,847 377,847 9,1 193,011 193,011 44,877 25,490 11,540 10,104 43,417 2,588 1,466 5,529 2,970 3,827 4,665 5,746 1,455 ,96 7,79 4,217 ,36 7,73 2020 400 495 518 hectares Estimated area in 44,877 25,490 11,540 10,104 43,417 2,588 1,466 5,529 2,970 3,827 4,665 5,746 1,455 ,96 7,79 4,217 ,36 7,73 2019 400 495 518 163

FINANCIAL INFORMATION 164

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Reconciliation investment -31 of property March 2020 Reconciliation investment -31 of property March 2019 Details property of infrastructure inthe medium term. carrying amount at date of transfer was R14,796 million. It iscurrently not occupied. The property will be valued on completion of related The property consists of land with aconference facility at Cape Morgan and transferred from service concession assets during the year. The Cape Morgan multi-purpose facility: 2010. It is currently not occupied. The property consists of land with adilapidated building situated inSomerset Street inAliwalNorth and transferred to the ECPTA as at 1July Somerset House: Valuers Act No.47 of 2000) isR9,720 million (2019: R9,090 million). Fair value of the investment property as determined by anindependent valuer, PLindstrom (Registration no 935/7 registered interms of the occupied by the National Prosecuting Authority (NPA). The property consists of an office block situated in Phalo Avenue in Bhisho and transferred to the ECPTA as at 1 July 2010. It is currently being Tourism House Phalo Avenue: Valuers Act No.47 of 2000) isR1,757 million (2019: R1,647 million). Fair value of the investment property as determined by anindependent valuer, PLindstrom (Registration no 935/7 registered interms of the currently occupied by the Department of Local Government and Traditional Affairs. The property consists of an office block situated in the Bhisho Business Village and transferred to the ECPTA as at 1 July 2010. The building is Unit 2Bhisho Business Village: 11. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Investment property Investment Investment property Investment Investment property Investment Figures in Rand (thousand)RandFigures in - Cape Morgan multi-purpose facility - Somerset House - Tourism House Phalo Avenue - Unit 2Bhisho Business Village NOTES TO THEANNUALFINANCIAL STATEMENTS

Investment property Valuation Cost / Cost 254(,2)20,531 (2,023) 22,554 accumulated Accumulated depreciation impairment 2020 and Opening balance 6,071 Carrying value Transfers received Opening balance 14,796 ,0 19 6,071 (129) 6,200 Valuation Cost / Cost ,2 0 26 7, ercainTotal Depreciation ercainTotal Depreciation accumulated Accumulated depreciation 2020 impairment 0516,071 20,531 14,589 4,886 36 20,531 (336) 2019 and 896 6 160 160 119 6,071 (1,189) Carrying value 4,995 2019 916 - 11. Investment (continued) property 12. Finance lease obligation • The entity has the considered following leases assignificant: • Figures in Rand (thousand)RandFigures in

Amounts insurplusordeficit for recognised the year Current liabilities Non-current liabilities Present value minimumlease of payments due Present value minimumlease of payments less: future finance charges Minimum lease payments due Repairs and maintenance on rental generating property Rental revenue from investment property NOTES TO THEANNUALFINANCIAL STATEMENTS - within one year - within one year - insecond to fifth year inclusive - insecond to fifth year inclusive seventy five percent (75%) on extension of contract.the conditions, except for areduction inrental. The lease rental for the equipment isR13 thousand per month, which shall be reduced2020, by with anoption to be extended at the sole discretion of the ECPTA for amaximum period of two years on same terms and Equipm August 2020, at alease rental of R26 thousand per month,escalation. with no Equipm ent located at nature reserve offices is locatedentleased is offices naturefrom Bytes reserveat Document years three period ending Solutions of a August for 31 ending years three 31 of period a leased Konica from for Minolta Africa East is Londonlocatedthe South headentoffice at EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 2020 968 196 196 191 191 191 191 191 (5) 15 - - - 1,300 2019 426 426 469 196 203 665 191 191 (48) 617 617 617 165

FINANCIAL INFORMATION 166

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 submitted to DEFF and arenot consolidated into the records of ECPTA. set of financial records are maintained for this project and a separate independent audit is conductedproject on was initiated an annual basis. in2005 and to date,These expenses funding to the are extent of R122,488 million (2019: R118,873 million)The has ECPTA been received. has been Aseparate appointed as implementing agents for certain social responsibility initiatives which arefunded directly by DEFF. The the National Department of Environmental Affairs. Refer to note 5. Represents amounts available for social responsibility projects (formerly poverty alleviation projects) which areadministered on behalf of risk related to employee related payables isdisclosed innote 38. The ECPTA considers that the carrying amount of employee related payables approximates their fair value. The entity’s exposure to liquidity leaving the ECPTA amounting to R931 thousand (2019: R972 thousand). Treasury does however allow a retention based on prior year trends. The cash back portion is equivalent to the prior paymentsthe to employees Provincial Treasury. Historically, the ECPTA has not retained cash to fully back the accrued leave pay accrual in light of this. TheThe Provincial ECPTA, as aschedule 3Cof the Public Finance Management Act (Act 1of 1999) entity, isrequired to surrender surplus cash resources to trade payables isdisclosed innote 38. The ECPTA considers that the carrying amount of trade payables approximates their fair value. The entity’s exposure to liquidity risk related to 15. 14. 13. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Social responsibility projects Figures in Rand (thousand)RandFigures in Workmen's compensation Medical aid Accrued leave pay Salaries and wages Revenue received inadvance Trade creditors Skills development levy Pension and provident payables trade Other payables lease Operating Accrued expense trade NOTES TO THEANNUALFINANCIAL STATEMENTS

Employee related payab Trade payables Social responsibilitySocial projects les 23,505 12,597 10,884 16,163 4,409 2,796 1,451 2020 780 590 108 140 136 29 67 15,346 12,142 10,561 3,562 4,315 4,066 ,2 8 25 7, 2019 560 892 193 129 18 - - Reconciliation provisions of -31 March 2020 dependent on the outcome of performance evaluations which areto be conducted after year-end. payments in terms of the entity’s performance management policy. The payment of such bonuses is subject to the availabilityThe of funds provision and on performance bonus of R7,2 million (2019: R9,6million) relates to management’s estimate of possible performance Performance bonusprovision investigate activities surrounding the late President Mandela’s funeral in2013. special investigation services rendered to the entity. The Special Investigation Unit was appointed, pursuant to aPresidentialThe provision on Proclamation professional fees to represents the proportion of fees anticipated to be paid to the Special Investigation Unit inrespect of the Professional provision fees The actual amounts to be paid willdepend on the nature and extent of work performed by the attorneys inthe litigation process. 16. cases: The provision for legal proceedings represents management’s best estimate of the entity’s liability on legal costs relating to the following Legal proceedings provisions Reconciliation provisions of -31 March 2019 Figures in Rand (thousand)RandFigures in Performance bonus Professional fees Legal proceedings Public liability claim against employees Reclaiming of game Eviction of former employees Resettlement of people Reckless and negligent driving Repairs and maintenance claim Employment dismissal bonus Performance Professional fees Legal proceedings bonus Performance Professional fees Legal proceedings NOTES TO THEANNUALFINANCIAL STATEMENTS

Provisions pnn aac Additions Opening Balance Additions Opening Balance 10,455 8,676 9,607 8,436 483 240 365 - 030(8,560) 10,360 9,607 7,422 7,229 EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT 483 270 193 - Annual Financial Statements for the year ended31 March, 2020 Utilised during Utilised during the year the year (8,425) (7,731) (7,185) (546) (135) - - Reversed during Reversed during the year the year 9,926 (220) (200) 9,631 2020 (20) (11) (21) (10) 165 130 165 30 30 30 20 20 35 - - - Total Total 10,455 10,455 9,926 9,607 9,607 9,631 2019 365 200 483 483 365 365 130 165 30 30 30 20 20 35 167

FINANCIAL INFORMATION 168

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Reconciliation of movement ingrants The entity has project bank accounts per note 5.Unspent funds committed at year-end aredetailed innote 39. Unspent grants andreceipts comprises of: 18. 17. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT discharged its responsibilities interms of the sale agreement. Refer to note 6. process as being excess game, and have been recognised as “held for sale” for deferral until the sale has been concluded and the entity has Deferred revenue - game held for sale relates to the corresponding revenue for large mammals which are identified through the game census Figures in Rand (thousand)RandFigures in DEDEAT Duke and Duchess of Cambridge and Sussex (Rhino Impact Bond) DEFF -Environmental Protection Infrastructure Programme Commission on Restitution of Land Rights CATHSSETA African Wildlife Foundation Green Trust South African National Roads Agency Limited South African National Parks National Lotteries Commission National Department of Tourism Marine and Coastal Management South African National Biodiversity Institute Game held for sale NOTES TO THEANNUALFINANCIAL STATEMENTS

Unspent grant revenue-gameheld for saleDeferred s andreceipts 3,458 133,629 26,080 95,705 2,936 5,263 1,109 1,017 2020 306 207 878 123 5 - - 8,606 55,820 13,400 30,718 1,200 8,356 2019 305 425 390 341 551 134 - - - 18. Figures in Rand (thousand)RandFigures in Impact Bond) Dukes and Duchesses of Cambridge and Sussex (Rhino National Lotteries Commission Commission on Restitution of Land Rights Green Trust First National Bank South African National Roads Agency Limited Sarah Baartman District Municipality South African National Parks African Wildlife Foundation South African National Biodiversity Institute CATHSSETA Holdings Zest World Wildlife Fund -South Africa Tsitsikamma Tourism Association South African National Roads Agency Limited South African National Parks South African National Biodiversity institute Sarah Baartman District Municipality National Lotteries Commission National Department of Tourism Marine and Coastal management Kwantu Private game reserve Joe Gqabi Green Trust First National Bank Eastern Cape Department of Transport Impact Bond) Duke and Duchess of Cambridge and Sussex (Rhino Die Tuishuise and Victoria Programme DEFF -Environmental Protection Infrastructure Commission on Restitution of Land Rights Coega Vulindlela Accommodation and Conference Centre CATHSSETA Bushman Museum African Wildlife Foundation Addo Tourism DEDEAT Equitable Share DEDEAT Economic Stimulus Fund DEDEAT Digital Conservation National Department of Tourism DEDEAT Equitable Share DEDEAT Digital Conservation 31 March 2020 31 March 2019 NOTES TO THEANNUALFINANCIAL STATEMENTS

Unspent grant s andreceipts (continued) Balance unspent Balance unspent at start of yearat start of at start of yearat start of EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 0902801(3,8)55,820 (233,181) 268,061 20,940 5803024(6,0)133,629 (262,405) 340,214 55,820 19,602 30,718 3,400 1,200 8,356 305 600 425 390 551 341 551 134 98 88 1 200(3,644) - - 12,000 ------0,0 (206,805) 206,805 13,400 - - Current year Current year receipts receipts 215,795 95,705 26,760 ,0 (2,000) 2,000 ,0 (1,637) 6,900 ,0 (3,322) 4,200 1,400 1,200 ,9 (2,788) 5,590 ,7 (5,241) 5,277 1,235 6,179 800 927 102 659 323 623 115 30 50 39 10 10 10 19 19 19 72 2 - (13,400) - - - - (8,356) - - - Transfers to Transfers to revenue revenue (215,795) 2020 1,4)30,718 (15,644) 1,1)26,080 (10,817) (1,232) (1,018) (800) (428) (282) (234) (183) (183) (318) (115) (137) (210) (716) (30) (50) (39) (10) (10) (10) (19) (19) (19) (72) (2) (1) - - - 13,400 - Balance unspent Balance unspent at year-end at year-end 95,705 2,936 1,200 8,356 5,263 2019 1,109 1,017 306 305 425 390 207 551 341 878 134 123 5 ------169

FINANCIAL INFORMATION 170

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Provincial Treasury does not allow a retention of cash for this obligation. The entity, therefore,Provincial does Treasury.not cash backHistorically, employeethe ECPTA hasbenefitnot retained cash to backfullyobligation. the employee benefit obligation light in In addition,of this. the The ECPTA, as aschedule 3CPublic Finance Management Act, (Act 1of 1999) entity, isrequired to surrender surplus cash resources to the the valuation aresensitive to the assumptions chosen. No ill-health retirement assumption was made and it was assumed that allstaff willretire at average age 63 (2019: 63 years). The results of Bond Exchange of South Africa. The discount rate has been determined with reference to market yields at the date of the valuation using the yield determined curve by the The wording for assumptions used for the prior year has been aligned with the actuarial valuation report for the current year. Changes inthe present value the of benefit defined obligation areas follows: Key assumptions used intheNet expenserecognised statement financial of performance The amounts inthe recognised statement financial of position areas follows: Carrying value An actuarial valuation was perfomed using the Projected Unit credit method as specified in GRAP25 . The ECPTA has unfunded defined benefit plans that relates to long service awards and post retirement medical aid benefits. 19. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Medical inflation rate Benefit inflation rate Salary inflation rate General inflation rate Medical aid discount rate Long service discount rate Assumptions used at the reporting date: Figures in Rand (thousand)RandFigures in Current service cost Net expense recognised in the statement of financial performance Benefits paid Opening balance Medical aid benefit Long service award Actuarial gains Interest cost NOTES TO THEANNUALFINANCIAL STATEMENTS

Employee benefit obli gations benefit Defined plan 365 (1,548) (3,655) (6,698) 365 (1,548) (3,655) 10.60 % 11.00 % 15,276 17,216 17,216 21,312 9.00 % 8.50 % 7.50 % 1,940 .0% 7.70 (441) 2,327 2020 716 10.00 % 10.60 % 13.50 % (4,821) 23,302 19,353 21,312 21,312 9.00 % 8.00 % 6.70 % (442) 1,959 2,441 2019 832 24. 23. 22. 21. 20. Figures in Rand (thousand)RandFigures in Sundry income Sale of tender documents fees Implementers Insurance proceeds Trade receivables and other receivables interest Bank interest Ecological services income Commission Concession income Catering income Camping income accommodation General Other services Day tours and activities fees Conservation Venison sales Live game sales Hunting and fishing income Culling revenue NOTES TO THEANNUALFINANCIAL STATEMENTS

Finance income Other income Accommodation revenue Rendering services of income Wildlife EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 4,840 6,959 2,608 2,420 6,224 2,411 4,038 6,927 2,924 1,414 1,717 801 734 551 141 615 22 60 88 88 69 32 24 2020 1 8,686 2,282 2,097 5,228 2,642 1,340 4,409 1,343 6,163 4,076 4,101 1,795 2019 386 295 873 101 163 415 25 45 62 73 51 7 171

FINANCIAL INFORMATION 172

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 subsequently reimbursed. on the expenditure incurred. Re-imbursements refers to instances where the entity incurs expenditure on the applicable grant and is Spending on grants refers to instances where the entity receives the grant and subsequently spends thereon and the revenue isrealised 25. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Figures in Rand (thousand)RandFigures in Zest Holdings Zest World Wildlife Fund -South Africa Tsitsikamma Tourism Association Duke and Duchess of Cambridge and Sussex (Rhino Impact Bond) Die Tuishuise and Victoria Re-imbursements on grants and subsidies Spending on conditional grants and subsidies Grants and subsidies consists of: South African National Roads Agency Limited National Department of Tourism Marine and Coastal Management Kwantu Private Game Reserve Joe Gqabi District Municipality Green Trust First National Bank Eastern Cape Department of Roads and Transport Commission on Restitution of Land Rights Coega Vulindlela Accommodation and Conference Centre Addo Tourism DEDEAT South African National Parks Sarah Baartman District Municipality National Lotteries Commission CATHSSETA Bushman Museum African Wildlife Foundation South African National Biodiversity Institute NOTES TO THEANNUALFINANCIAL STATEMENTS

Grants and subsidies 262,405 263,114 263,114 3,3 206,805 230,832 10,817 2,000 3,322 2,788 8,722 1,575 2020 800 428 709 183 183 318 115 137 716 50 39 10 10 10 19 19 19 2 236,181 236,181 233,181 15,644 3,000 3,000 3,644 5,241 1,018 2019 282 234 210 30 72 1 ------* Salaries were provided for interns on the Youth Environmental Service Programme. 26. as provided by the listed donors: The entity has been granted the use of assets and resources for conservation activities. The assets and resources are reflected below at cost Donations inkind The donations above were received from the following donors: Repairs andmaintenance plantProperty, andequipment The following aredetails of donations received: Figures in Rand (thousand)RandFigures in Endangered Wildlife Trust -IT equipment Stop Rhino Poaching -office equipment Department of Environment, Forestry and Fisheries -Salaries* Baviaanskloof Trail Run Furniture and fixtures Property, plant and equipment NOTES TO THEANNUALFINANCIAL STATEMENTS

Donations received EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 3,053 3,133 2020 60 20 - - - 2,342 2,262 2019 60 20 1 1 1 173

FINANCIAL INFORMATION 174

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 on depreciation and amortisation: intangible assets, service concession assets, investment property and property, plant and equipment were revised with the following effect During the year anassessment for remaining useful lives was conducted for non-current assets. The remaining useful lives of items of Change inestimate -change ineconomic useful lives 30. 30. 29. 28. 27. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Figures in Rand (thousand)RandFigures in Property, plant and equipment Intangible assets Leave pay provision charge Medical aid contributions Performance bonus Basic salary Investment property Investment Property, plant and equipment Finance lease obligation Employee benefit obligations Depreciation andamortisation property Investment Service concession assets Car allowance Overtime payments Defined contribution plans Funeral benefits Skills development levy Unemployment insurance fund Intangible assets Other allowances Investment property Investment Service concession assets Property, plant and equipment Workmen's compensation NOTES TO THEANNUALFINANCIAL STATEMENTS

Depreciation andamort Personnel related costs Repairs andmaintenance Finance costs isation As perrevised As useful lives useful 205(27,253) 22,085 349(866 (5,257) (28,676) 23,419 900 336 98 As per original per As useful lives useful 5, 07 157,6 111,125 22,085 23,419 10,638 16,118 (940) 1,056 5,072 9,669 (336) 5,057 2,371 1,945 2,327 1,636 (147) 4,139 2020 900 303 336 100 742 136 44 98 15 Change in estimate 149,265 103,328 (5,168) 11,054 25,681 14,985 27,053 6,007 2,526 5,804 1,220 1,884 3,463 2,441 9,597 2,317 1,140 2019 (40) (49) 203 931 103 357 129 129 85 - - Auditors’ remuneration includes audit fees for projects amounting to R60 thousand (2019: R50 thousand). 32. 31. General expenses Figures in Rand (thousand)RandFigures in Uniforms Travel -overseas Travel -local Training Tourism development Telephone and fax Travel -motor car, accommodation and subsistence Subscriptions and membership fees Staff welfare Security Royalties and license fees Research and development costs Refuse Protective clothing Profit & loss on foreign exchange Printing and stationery Postage and courier Placement fees Placement Medical expenses Levies Lease rentals on operating lease Internal audit fees Insurance Hiring expenses Game management Game Fuel and oil Fleet Entertainment Electricity Consumables Consulting and professional fees Conferences and seminars Computer expenses Compliance and law enforcement Community projects Cleaning Chemicals Board expenses Bank charges Bad debts Bad Auditors remuneration Auction expenses Auction Animal Costs Advertising and marketing Fees NOTES TO THEANNUALFINANCIAL STATEMENTS

Auditors’ remuneration EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 104,838 15,428 11,871 1,086 1,300 5,498 4,900 6,053 1,809 1,589 2020 3,362 3,845 3,350 1,206 4,825 2,945 1,456 2,527 4,293 4,691 3,467 1,587 1,319 2,017 2,017 1,139 7,178 794 269 198 100 295 291 326 476 652 837 107 235 119 975 132 210 29 29 23 97,909 12,126 2,880 3,064 4,860 3,526 2,997 9,549 6,534 1,430 1,007 1,082 1,656 5,839 1,692 3,629 1,291 2019 5,813 4,739 1,851 2,461 2,461 3,130 4,778 1,194 4,157 596 892 644 947 294 260 182 421 374 574 371 610 171 98 83 63 24 15 5 - 175

FINANCIAL INFORMATION 176

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 • • • The entity has considered the following leases as significant, where it rents office space: The entity has considered the following leases as significant, where it rents equipment: 34. 33. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT

Figures in Rand (thousand)RandFigures in - insecond to fifth year inclusive - not later than one year Minimum lease payments due Operating leases asthe lessee Unspent grants and receipts Employee related payables Impairment loss Loss /(profit) on disposal of assets Depreciation and amortisation Adjustments for: Deficit for the year Trade payables Other receivables Trade receivables Inventories Changes inworking capital: debts Bad Movements inprovisions Movements inemployee benefit obligations Debt impairment Donations received NOTES TO THEANNUALFINANCIAL STATEMENTS

provisions same as the existing agreement. The termination date of the lease was subsequently amended from 31 March 2019 to 30June 2019 withthousand allthe other with terms an option and to extend for an additional three (3) months on a month-to-month basis at a monthly rental of R29 thousand. ending on 30June 2018. Anew lease contract commenced on 02 July 2018 for aperiod of six(6)months at amonthly rental of R32 per month was R47 thousand. The lease was subsequently extended on amonth-to-month basis, at R33 thousand rentalcommencing per month on 01 July 2017 with anoption to extend to a month-to-month basis for aperiod not exceeding six (6)months.The rental with anescalation of eight percent (8,00 %)per annum. the lease by afurther two (2)years. For the two (2)year extension period, the rental per month including parking isR463 thousand over twelve (12) months. The Board has, in terms of the initial award, given management the mandate to exercise thevariations option to extend on the building. These variations amounted to aonce-off payment of R2,2million and R113 thousand per month payable annum and avalue added tax adjustment of one percent (1%)on 01 April 2018. Subsequent to the procurement process, there were twenty four (24) months. The rental per month is R 362 thousand including parking with an escalation of eight percent (8,00 %) per District. The lease contract isfor a period of thirty six(36) months commencing on 04 October 2016 and is renewable for a further commencing on 01 November 2019. The rental per month isR21 thousand with no escalation. Gana and Dim Kazin Tra Hemipa Operating leases Cash generated from operations c Investments (Pty) Ltd, adivision of SKG Properties Group, inEast London, at number 17-25 Oxford Street, Central Business ding 5CC, inMthatha, for parkhomes at Nduli Nature Reserve. The lease contract was for aperiod of six(6)months po Developers CC inLusikisiki, inLungani Drive, Newtown. The lease contract isfor aperiod of twenty four (24) months 104,729 406 (1,990) (4,096) 169 (16,203) (1,659) 10,689 77,809 23,419 5,986 (986) 1,804 (590) (529) 4,703 (841) 8,159 1,149 2020 (18) 456 652 - 34,880 47,845 7 53 0 27, 2,689 (833) 2,740 1,091 (772) 1,779 2,159 2019 (31) 709 (1) 51 4 - - • The entity has considered the following leases as significant, where it rents out office space: • • Operating leases asthe lessor: • • 34. Figures in Rand (thousand)RandFigures in

- insecond to fifth year inclusive - Not later than one year Minimum lease payments due NOTES TO THEANNUALFINANCIAL STATEMENTS month with asixpercent (6.00%)escalation rate at the end of each lease year. on 01 April 2018 with anoption to renewal for afurther twenty four (24) months. The commencement rental isR22thousand per lease, commencing on 01 May 2019. The rental isR88 thousand per month with asixpercent (6.00 %) annual escalation rate. lease. The rental amount was adjusted to R85 thousand on 01 December 2018 and the contract ended on 30April 2019.commencing on 01 May 2016. The rental was R82 thousand per month with asixpercent (6.00%)escalation rate on renewal of the Depar A new co Nati (18) months, respectively. April2018 at leasea rental of thousandR3 per month, with escalationan of 6.7% and 8.3%, after the first (6) six months and eighteen Coff respectively. on commencing years three of period O 01 a for Alert Red from leased is London East in Office Head atlocated equipmentSanitary Operating leases (continued) onal Prosecuting Authority (NPA) at Tourism House, inPhalo Avenue inBhisho. The contract was athirty-six (36) months lease, ee machines located at Head Office in East London are leased from Red Alert for a period of thirty (30) months commencing on 01 ctober 2017 at a lease rental of R4 thousand per month, with an escalation of 6.7% and 8.3%, after the first and second second year, and first theafter 8.3%, and 6.7%escalation of an thousandmonth,with per R4 ctober leaserental2017of a at tment of Public Works at 292, Erf Unit 02, Business Village inBhisho. The contract isathirty-six (36) months lease, commencing ntract was entered with The National Prosecuting Authority (NPA) during the year. The contract isathirty-six (36) months EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 2020 299 375 76 2019 303 674 371 177

FINANCIAL INFORMATION 178

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Other benefits include stakeholder engagements and cell phone allowances. ** Subsequent appointment to National Council of Provinces inMay 2019. * Re-appointed by the Member of the Executive Council with effect from 01 May 2019. Members 35. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Other benefits include stakeholder engagements and cell phone allowances. Mr ZLFihlani -(Board Member) -Appointed on 15 August 2017 * Ms TPutzier -(Board Member) -Appointed 01 September 2017 * Mr ZMkiva-(Board Member) -Appointed 01 May 2019 ** Mr LBevile -(Board Member) -Appointed 01 May 2019 Dr ABaxter -(Board Member) -Appointed 01 May 2019 Dr NMzilikazi -(Board Member) -Appointed 01 May 2019 Dr AMuir -(Board Member) -Term ended 30April 2019 NcumeMr SFW -(Board Member) -Term endedApril 2019 on 30 April 2019 Mr SMgxaji -(Acting Chairperson of the Board) -Term ended 30 Ms NMona -(Chairperson of the Board) -Appointed 01 May 2019 2020 (thousand)RandFigures in 2019 Ms TPutzier -(Board Member) -Appointed 01 September 2017 Ms PYako -(Board Member) -Appointed on 1December 2015 Dr AMuir -(Board Member) -Appointed on 1June 2012 NcumeMr SFW -(Board Member) -AppointedMarch on 1 2015 2012 Mr SMgxaji -(Acting Board Chairperson) -Appointed on 1June Mr ZLFihlani -(Board Member) -Appointed 15 August 2017 NOTES TO THEANNUALFINANCIAL STATEMENTS

Emoluments Members’ fees ebr’fe omtesfe Total Committees fees Members’ fees 1,307 308 809 108 106 156 262 150 138 110 231 177 173 20 28 43 25 81 Other benefits 2020 46 93 83 78 41 1 2 2 1 5 ------Total 1,400 2019 892 309 303 108 106 354 158 138 110 151 178 178 20 28 43 27 81 Other benefits include stakeholder engagements and cell phone allowances. 2019 2020 Audit Committee 35. Figures in Rand (thousand)RandFigures in Ms TSemane -(Member) -Appointed on 1April 2017 Mr SDzengwa -(Member) -Appointed on 1April 2017 Mr CSparg -(Chairperson) -Appointed on 1April 2017 Ms TSemane -(Member) -Appointed on 1April 2017 Mr SDzengwa -(Member) -Appointed on 1April 2017 Mr CSparg -(Chairperson) -Appointed on 1April 2017 NOTES TO THEANNUALFINANCIAL STATEMENTS

Emoluments (con tinued) EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 Committee fees 180 100 30 50 omte esTotal Committee fees Other benefits 2020 164 110 31 23 1 1 1 3 Total 2019 164 183 101 110 31 51 31 23 179

FINANCIAL INFORMATION 180

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 2019 2020 35. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT 2019 Ms L Shaw -(Acting Chief Marketing Officer) -March February 2019 Ms ZB Ntwasa -(Acting Chief Marketing Officer)- Appointed 1July 2018 Ms NAli-(Executive Director: Corporate Services) - sXMpm (ea dio n or ertr)10230 1,022 Ms XMapoma -(Legal Advisor and Board Secretary) - Contract ended June 2018 Ms LGower -(Executive Director: Corporate Services) 31 January 2019 Ms NMxunyelwa -(Chief Marketing Officer)- Resigned December 2018December Dr NSongelwa -(Chief Operations Officer) - Resigned 31 Mr JJackson -(Chief Financial Officer) Mr VDayimani -(Chief Executive Officer) 2019 Ms ZBNtwasa -(Acting Chief Marketing Officer)- May June 2019 Ms LShaw -(Acting Chief Marketing Officer) -April and and March 2020 Dr DPeinke -(Acting Chief operations Officer) - February August 2019 to January 2020 Mr. MKostauli -(Acting Chief Operations Officer) - Officer) -April to July 2019 Ms EVan Den Berg-McGregor -(Acting Chief Operations Ms X Mapoma -(Legal Advisor and Board Secretary) Ms N Ali -(Executive Director: Corporate Services) July 2019 Ms TS Dlamini -(Chief Marketing Officer) -Appointed 01 Mr JJackson -(Chief Financial Officer) on 01 August2019 Mr V Dayimani -(Chief Executive Officer) - Reappointed Figures in Rand (thousand)RandFigures in NOTES TO THEANNUALFINANCIAL STATEMENTS

Emoluments (con tinued) Executive Directorstinued) Executive

Salary Salary 2,069 8,734 1,443 1,496 1,054 2,458 1,423 1,251 1,637 922 556 325 153 159 916 474 58 83 62 benefits benefits Other Other 475 122 101 22 48 38 43 26 25 70 52 33 18 73 14 12 21 9 7 contribution contribution Retirement Retirement fund fund 538 0 280 209 2 130 4 145 149 151 49 25 10 07 73 10 23 13 ------2020 Performance Performance incentive incentive incentive incentive bonus bonus 1,160 200 364 168 251 311 235 127 413 217 ------Total Total 10,907 1,980 1,346 1,898 2,534 1,260 1,394 1,953 1,264 2,923 1,748 2019 444 206 796 954 249 139 814 93 90 Other benefits comprise travel allowance and medical benefits • • • • • Damage claims Contingent liabilities comprising of damage claims areas follows: Contingent liabilities: • Contingent assets comprising of damage claims areas follows: Contingent assets: 36. 35. Figures in Rand (thousand)RandFigures in

Officer) - January to March 2019 Ms E Van Den Berg-McGregor -(Acting Chief Operations NOTES TO THEANNUALFINANCIAL STATEMENTS

2018. The plaintiff isclaiming anamount of R366 thousand for personal injuries. The ECPTA insurers arehandling the matter. The ma Anthony M McCune has been issued and the ECPTA insurers arehandling the matter. vehicle. The ECPTA was served with aletter of demand inwhich the claimant is claiming R140 thousand for the damages. Summons The ma Vuyisile DikovECPTA and cost of repairs. to reinstate the property into good order after the ECPTA vacated the premises. The amount claimed isR570 thousandterms for damages of awritten lease agreement which ended in2016 with Rough Diamonds (Pty) Ltd. The claimants allege to have incurredThis costs mat Rough Diamonds vECPT the matter through the attorneys appointed by its insurers and isaccordingly not inaposition to quantify its legal costs. quantified. A sum of R900 thousand was served on the Plaintiff’s attorneys and their response is still awaited. The ECPTA is defending for damages to the amount of R3,089 million. A settlement proposal has been accepted by the Plaintiff and the damages have been This mat Andre Prinsloo vECPTA: accordingly not inaposition to quantify its legal costs. The matter isdormant. for damages. Asummon has been issued. The ECPTA isdefending the matter through the attorneys appointed by its insurersThis and is isaclaim fo Khayalethu GeelbooivECPT in line with costs paid to date of R1,460 million. The entity expects to recover R500 thousand after the taxing of the bills. The Sup withoutcourt atrial date. The legal costs paid amount to R1,460 million. the ECPTA has been granted by the Supreme of Court Appeal. Asettlement offer was made by the defendant and the matter stands in animals, alternatively, payment of the sum of R4million being the reasonable market value of the animals. Judgement infavour of This mat ECPTA vMedbury Farm Contingencies Emoluments (con tter relates to aclaim for bodily injury alleged to have occurred to aclient at the Blue Bend /Nahoon River beach inFebruary tter relates to aclaim for damages alleged to have occurred when anECPTA vehicle collided with the plaintiff’s stationery reme of Court Appeal awarded costs to the ECPTA. At the reporting date these had not been determined and areexpected to be ter relates to abuffalo attack which took place on the Baviaanskloof Nature Reserve on 13 June 2015. The ECPTA isbeing sued ter relates to the recovery of animals that crossed over to the neighbouring farm. The ECPTA isdemanding the return of the ter relates to aclaim on repairs and maintenance costs to abuilding inEast London which was occupied by the ECPTA in r personal injuries. The ECPTA was served with aletter of demand inwhich the claimant isclaiming R500 thousand ortlock vECPTA ortlock tinued) : A A: EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 9,147 2 76 320 365 570 59 2020 1,551 - 11,633 2019 455 181

FINANCIAL INFORMATION 182

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Key management personnel Strategicpartnership entities Entities with co management agreements National government departments Controlling entity During the period under review the ECPTA recorded various transactions with the following related parties: Relationships influenced by key management. be to or influence expectedto be may whomembers familythose managementbeconsidered keytopersonnel are ofmembers family well as the Legal Advisor / Board secretary are considered to be key management per the definition of the financial reporting standard. Close with aresponsibility and authority to direct and control the activities of the entity. The Board, Audit Committee, Executive ManagementSuchentities as consideredare to be related parties. Key management definedis individualsas who are key decision makers within the entity The ECPTA operates inaneconomic sector whereby it interacts with other entities within the national and provincial sphere of government. parties: Related 37. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Related balances party South African National Biodiversity Institute CATHSSETA Authority Culture, Arts, Tourism, Hospitality and Sports Sector Education and Training Amounts from related received for parties skills development programmes South African National Parks (Including Environmental Monitoring Programme) South African National Biodiversity Institute National Department of Environment, Forestry and Fisheries Amounts from related projects received for parties biodiversity conservation National Department of Tourism Amounts from related received for parties tourism development programmes Department of Economic Development, Environmental Affairs and Tourism Transfer payments from related received parties Related transactions party Debt Receivable (Staff debtors) National Department of Environment, Forestry and Fisheries DEDEAT Amounts includedintrade receivables andother receivables regarding related parties Figures in Rand (thousand)RandFigures in NOTES TO THEANNUALFINANCIAL STATEMENTS

Related disclosures party

------

East East L Coeg under c Depar membe Commissi South Afri South Afri Culture Mkhambat Dwesa /Cw Nati Nati East East onal Department of Tourism onal Department of Environment, Forestry and Fisheries ern Cape Liquor Board ern Cape Gambling and Betting Board Cape Development Corporation ern a Development Corporation a tment of Economic Development, Environmental Affairs and Tourism Entities ondon Industrial Development Zone , Arts, Tourism, Hospitality and Sports Sector Education and Training Authority ommon controlling entity rs of The Board and key management personnel aredisclosed inNote 35 can National Parks can National Biodiversity Institute on on Restitution of Land Rights hi Land Trust ebe Land Trust

2,9 220,205 222,695 1,305 4,200 1,396 5,590 6,179 2020 343 101 45 - - 26,760 3,000 1,060 5,277 1,235 2019 208 623 45 3 -

Classificationof financial instruments management and reports to the audit and riskcommittee which inturn reports to the Board. quarterly basis and reviews the strategic and operational riskregisters. The risk management committee comprises of executive and senior The ECPTA has ariskmanagement framework, riskmanagement policy, and riskmanagement committee inplace which meets on a interest rate riskand price flow risk),credit riskandcash liquidity risk, interest rate risk. value fair risk, currency (including risk market risks: financial of variety a to entity’sTheit activitiesexpose 38. Figures in Rand (thousand)RandFigures in 31 March 2019 31 March 2020 Finance lease obligation Social responsibility projects Trade payables Financial liabilities Cash and cash equivalents Other receivables Trade receivables Financial assets Finance lease obligation Social responsibility projects Trade payables Financial liabilities Cash and cash equivalents Other receivables Trade receivables Financial assets NOTES TO THEANNUALFINANCIAL STATEMENTS

Risk management General tfi au taotsdcs Atcost cost Atamortised At fair value Atcost cost Atamortised At fair value EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT - - (15,346) ------(23,505) - 153,837- - - - - Annual Financial Statements for the year ended31 March, 2020 134,198 624(4,066) 66,284 79,383 1,008 3,049 2,063 (191) (617) 801 406 (4,066) (4,066) - - (1,451) (1,451) 2020 - - - - (15,346) - - (23,505) 153,837 - - - - Total Total 132,747 (1,451) 79,383 62,218 1,008 3,049 2,063 (191) (617) 2019 801 183

FINANCIAL INFORMATION 184

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 assured of funding from DEDEAT for biodiversity conservation. concern. The mandate of the ECPTA islargely driven by the constitution and by the Provincial Growth and Development Plan and we arethus any high riskfinancial instruments and reviews its cash flows ona quarterly basis to ensure that it maintains its ability to operate asa going The ECPTA’s objectives when managing capital isto safeguard the entity’s ability to continue as agoing concern. The entity does not enterCapital riskmanagement: into of market price fluctuations does not impact on the entity. forrevenue received and for expenditure incurred itshort all termis trades relating only to the relevant financial year. result, a As the impact instrument or its issuer, or factors affecting all similar financial instruments traded in thethan thosemarket. fromarisinginterest whetherrateThecurrencyorrisk), risk those nature changes caused ofare factorsourby businessspecific is individual the to on a financial cash basis Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other Price risk: near termination and the currency riskof the entity inrelation to the agreement isregarded as being low. Refer to note 39. The entity has asoftware licencing agreement with aservice provider where amounts payable aredenominated inUS Dollars. The contract is customers. The amounts received arenot significant, so the currency risk of the entity isregarded as being low. rates. The main foreign currency transactions which the entity isexposed to, isthe accommodation revenue received from overseas Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange risk: Currency Market riskcomprises three types of risk:currency risk,interest rate riskand other price risk. financial fluctuateinstrumentin a will prices. market of of changes flows because cashfuture or valuethatfair the risk the is Marketrisk Market risk: Past dueandnotimpaired The ageing of amounts past due but not impaired isas follows: Past dueandimpaired Past dueandnotimpaired Neither past duenorimpaired Analysis by credit quality of financial assets: impairment allowance. through agreed projects and agreements. Asmall portion relates to staff debts, but this has been mitigated through the creationentity of an doesnotoperate creditbasisa on withcustomers significanta and portion tradeof receivables relate specificto amounts receivable The ECPTA only deposits cash with the major banks with high quality credit standing. The riskon cash and cash equivalents isthus low. TheCredit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. 38. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Figures in Rand (thousand)RandFigures in - More than 1year past due Trade and other receivables Trade receivables and other receivables Cash and cash equivalents Trade receivables and other receivables NOTES TO THEANNUALFINANCIAL STATEMENTS

Risk management (continued) Credit risk 153,837 157,567 3,730 2020 300 - - 81,894 79,383 2,511 2019 317 27 27 is not significant. financial position to the contractual maturity date. Balances due within 12 months equal their carryingThe tablebalances belowas analysesthe impacttheentity’s of discountingfinancial liabilities into relevant maturity groupings based remainingthe on period statementthe at of Contractual maturities of financial liabilities adequate cash willbe available to meet its obligations. Liquidity riskisregarded as being low. budgeted forecasts expenditure reports thatflow enablesfor. analysis and ensure Quarterly entity cashis the to businessand of course normal obtainedthe during services significant percentage and ECPTA’s A the goods relates creditors. trade liabilitiesof to This of consist settled by delivering cash or another financial asset. Liquiditytheencounteredis risk risk entityan by thein event difficultyof meeting in obligations associated with financial liabilities that are Liquidity risk 38. points. There were no changes from the prior year inthe methods and assumptions used inpreparing the sensitivity analysis: management and indicate areasonable estimate of the increase /(decrease) on surplus from anincrease ininterest rates by 100 basis amount of the instrument outstanding isoutstanding for the whole year. The analysis, as detailed the reporting date, assuming inthe interest at tablerates instruments financial to belowexposure determinedon been was determinedhas belowsensitivity Theanalysis by they relate to mainly to the transfer payments received from DEDEAT as of our part budgeted grants to be used for operational expenditure.of changes inmarket interest rates. Allinterest-bearing assets areincluded under cash and cash equivalents. These areallshort term as rates.theECPTAsignificant hasnoAs interest-bearing assets, the entity’s incomeoperating and substantially are flows cash independent Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate Interestbecause risk of changes in market interest Figures in Rand (thousand)RandFigures in At 31 March 2019 Finance lease obligation Social responsibility projects Trade payables 31 March 2020 Increase onsurplus Employee benefit obligations Cash and cash equivalents Finance lease obligation Social responsibility projects Trade payables NOTES TO THEANNUALFINANCIAL STATEMENTS

Risk management (continued) Less than 1year Less than 1 year 19,838 23,505 25,147 15,346 4,066 1,451 EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT 426 191 Annual Financial Statements for the year ended31 March, 2020 Between 1and Between Between 1and Between 5 years 5 years 191 191 ------vr5yasTotal Over 5years vr5yasTotal Over 5years 1,366 1,538 (172) 2020 ------20,029 23,505 25,147 15,346 4,066 1,451 (213) 2019 794 581 191 617 185

FINANCIAL INFORMATION 186

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 reporting date isR1590 million (USD 89 thousand) (2019: R2556 million (USD 178 thousand)) and willbe funded inthe short term. In the prior year, the entity entered into anagreement with Microsoft for anamount of 277 thousand (USD). The balance of the contract at the as follows: The committed expenditure relates to outstanding expenditure orders at year-end and will be financed from available resources within a year, 39. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Figures in Rand (thousand)RandFigures in National Department of Environment, Forestry and Fisheries DEDEAT -Economic Stimulus Fund Capital expenditure -approved, funded and contracted Other funders Own Revenue South African National Roads Agency Limited South African National Parks South African National Biodiversity Institute National Lotteries Commission National Department of Tourism Goods and services -approved, funded and contracted Capital expenditure -approved, funded and not yet contracted NOTES TO THEANNUALFINANCIAL STATEMENTS

Commitments 124,138 124,138 119,513 69,248 45,354 3,593 4,223 1,397 2,102 2,121 2020 402 323 - - 35,292 35,292 20,001 13,400 14,503 12,114 2,556 3,484 1,573 2,165 2019 788 - - - Refer to note 39 for commitments and note 18 for unspent grants. received from DEFF- Environmental Protection Infrastructure Programme was R95,705 million. These funds were committed at year-end. Protection Infrastructure Programme grant which was unspent at year-end and the unspent grants from the previous year. The amount The underspending of capital expenditure of R63,814 million arises from grants received for this period such as the DEFF -EnvironmentalCapital expenditure: were not allspent. There isalso aR7,5 million movement inthe creditors at year end. which there was no expenditure nor were the funds received. A further R2,5 million was budgeted for project implementation costs which The difference of R23,945 million arises mainly from the entity budgeting for over R12 million for funds from the N2Biodiversity project for Goods andservices: Environmental Monitors and Green Trust for which the funds have been received. The difference of R2,156 million arises mainly from the movement on the leave provision of R1 million and spending on projects such as Compensation employees: of The variance of R13,4 million iscash rolled over from the previous year for digital conservation measures. Grants andsubsidies: commitments and note 18 for unspent grants. Environmental Protection Infrastructure Programme was R95,705 million. These funds were committed at year-end. Refer to noteProgramme 39 for grantwhich was unspent at year-end and theunspent grants from the previous year. The amountreceived from DEFF- The difference of R13,700 million arises from grants received for this period such as the DEFF -Environmental Protection Infrastructure Other grants: such as accommodation being below budget. being deferred to 2020/21, the non-collection of interest of R1, 5 million due to cash on projects not being collectedThe and other under-collection revenue items of R8,364 million ismainly from the implementers fees of R2,5million deferred to 2020/21, the sale of game of R3million Revenue from exchange transactions: between the approved and final budget area consequence of reallocations within the approved budget parameters. Detailed below areexplanations of material differences between the budget and actual amounts on acomparable basis. The changes amounts for the year ended 31 March 2020. thestatement financialof performance is presented a comparableon basis in the face of the statement of comparison of budget and actual Annual Financial Statements were recalculated from the accrual to cash basis. Areconciliation between the budget and the actualThe amounts Annual Financial in Statements areprepared on anaccrual basis of accounting while the budget ison acash basis. The amounts inthe 40. Figures in Rand (thousand)RandFigures in NOTES TO THEANNUALFINANCIAL STATEMENTS

Explanation material of the budgetandactual between differences amounts EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 2020 2019 187

FINANCIAL INFORMATION 188

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Segment surplusordeficit, assetsSegment andliabilities 31 March 2020 Marine and coastal cluster Game management and recreation cluster Biodiversity and heritage cluster Head office Reportable segment These reportable segments as well as the goods and/or services for each segment areset out below: Types bysegment goodsand/orservices of reporting purposes. decisions about the allocation of resources. The disclosure of information about these segments is also considered appropriate for externalInformation reported about these segments isused by management as abasis for evaluating the segments’ performances and for making reporting purposes. and the target market. Management uses these same segments for determining strategic objectives. Segments were aggregatedgame for management and recreation cluster and marine and coastal cluster. The segments were organised around the type of serviceThe deliveredentity organisedis and reports to management on the basis offour major functional areas: head office, biodiversity and heritage cluster, Identificationof segments General information 41. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Total segmental deficit Total segment expenditure Loss on disposal of assets Finance costs Bad debts Bad Impairment loss Depreciation and amortisation Entity's revenue Personnel related costs Total segment revenue Repairs and maintenance Fines, penalties and forfeits Figures in Rand (thousand)RandFigures in Grants and subsidies Revenue Operating expenses Operating Expenditure Revenue from exchange transactions NOTES TO THEANNUALFINANCIAL STATEMENTS

Segment informationSegment

Head office 7,5 50,886 176,456 7,9 7982,3 403294,583 34,093 26,636 57,958 175,896 158,252 88,280 78,988 7 44 64 17, 2,898 3,239 2,371 634 46 - - and heritage Biodiversity Biodiversity Goods an Tourism and c Game man Biodive Corp 33,763 53,917 orate Management Services and Head Office ,3 5,180 4,030 8,108 ,628 7, 656 rsity and heritage management 731 11 d/or services - - - agement and recreation services oastal conservation management and recreation management Game 28,273 18,492 21,193 ,6 5,216 3,062 5,761 685 263 273 - - ,0 1,804 1,804 - Marine and coastal 2020 067296,242 40,627 26,364 29,752 6,311 4,232 833 109 99 2,371 - - Total 294,583 104,186 263,114 (1,659) 5,607 6 157, 31,086 23,419 5,072 1,149 2019 383 634 making decisions about how future resources willbe allocated to the various activities of the entity. Segmented amounts for these assets and liabilities arenot regularly provided to management for the purpose of assessing performance and The assets and liabilities which have been reported inaggregate arenot directly attributable nor can be reasonably allocated to segments. 41. 31 March 2019 Figures in Rand (thousand)RandFigures in Financial Position Total assets asperStatement of Cash and cash equivalents Total segment assets Intangible assets Heritage assets Heritage Properties, plant and equipment Investment property Investment Service concession assets Entity's revenue Other receivables Total segment revenue Trade receivables Fines, penalties and forfeits Financial Position Total liabilities asperStatement of Unspent conditional grants and receipts Employee benefit obligation Provisions Social responsibility projects Employee related payables Trade payables Finance lease obligation Game held for sale Donations received Deferred revenue -game held for sale Liabilities Inventories Assets Grants and subsidies Revenue Property, plant and equipment Non-Current Assets -Additions Revenue from exchange transactions Property Investment NOTES TO THEANNUALFINANCIAL STATEMENTS

Segment informationSegment (continued) Head office Head office 160,232 145,688 138,771 112,194 14,544 45416,029 24,514 14,796 20,531 9,718 1,008 3,049 1,759 230 - - 15,534 - - - - EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT and heritage and heritage Biodiversity Biodiversity Biodiversity Annual Financial Statements for the year ended31 March, 2020 111,110 5512,9 424266,561 34,294 26,494 45,541 40,403 16,029 94,632 5,133 848 848 96 4 1 ------and recreation and recreation management management Game Game 271103,479 22,751 12,730 20,101 6,382 2,550 2,550 1,879 1,879 ,457 7, 11 14 ------Marine and Marine and coastal coastal 29,989 78,578 48224,812 24,812 ,4 46,463 4,041 4,248 4,041 60 60 29 57 - 22,991 - 20,531 - 3,049 - 1,008 - - - Total Total 529,948 266,561 201,973 376,111 153,837 298,134 133,629 236,181 30,307 23,505 14,796 12,597 31,667 7 216 17, 1,898 9,926 3,458 3,458 1,451 230 191 72 1 189

FINANCIAL INFORMATION 190

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 making decisions about how future resources willbe allocated to the various activities of the entity. Segmented amounts for these assets and liabilities arenot regularly provided to management for the purpose of assessing performance and The assets and liabilities which have been reported inaggregate arenot directly attributable nor can be reasonably allocated to segments. 41. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Financial Position Total assets asperStatement of Cash and cash equivalents Total segment assets Intangible assets Total segmental deficit Heritage assets Heritage Total segment expenditure Properties, plant and equipment Finance costs Investment property Investment Bad debts Bad Service concession assets Other receivables Depreciation and amortisation Trade receivables Personnel related costs Property, plant and equipment Game held for sale Repairs and maintenance Financial Position Total liabilities asperStatement of receipts Unspent conditional grants and Employee benefit obligation Provisions Social responsibility projects Employee related payables Trade payables Finance lease obligation Intangible assets Figures in Rand (thousand)RandFigures in Inventories Assets expenses Operating Expenditure Deferred revenue -game held for sale Liabilities Net Current Assets -Additions NOTES TO THEANNUALFINANCIAL STATEMENTS

Segment informationSegment (continued) Head office 168,492 63630,440 76,306 64810551891122,660 108,931 120,545 26,478 2536623625,052 3,642 6,692 82,523 607100,772 16,027 ,3 ,8 4,228 8,481 1,933 2,526 2,063 ,1 ,0 6,469 9,603 3,019 1,793 1,188 6,071 4,114 328 801 140 4 15,534 - - - - and heritage Biodiversity 47,176 8,481 4,161 4,161 441 78 ------and recreation management Game 28,084 7 94 39 17, 71 8 97,13 4,228 4,317 4,317 ,457 7, 579 19 - - - - 05840,528 40,528 - - - coastal Marine and 39,012 81,981 25,125 1,158 1,158 ,96 7 53 0 27, 62 9 7, 873 128 128 23 - 22,991 - 2,526 - 6,071 - - 2,063 - - - 140 Total (16,203) 282,764 128,364 295,918 378,614 457,997 149,265 15,800 55,820 15,346 79,383 15,660 10,455 12,142 7 9 0 9 97, 21,312 1,308 8,606 8,606 4,066 6,007 328 801 617 4 financial instruments, resulted in the decrease infinancial liabilities of R43,909 million. Refer to Notemanagementemployee exclude38. related employeeas topayables,risk benefit plan provisionsand on disclosure the amendment Theon Risk Management: 7 and 8. The amendment on the disclosure on segment reporting to include atable of non-current assets additions of R15,800 million. Refer to Notes Segment Reporting: year resulted inthe increase of executive directors’ emoluments of R687 thousand. Refer to Note 35. The amendment on the disclosure on directors’ emoluments to include acting allowances for positions that areor have been vacant inthe Directors Emoluments: and equipment of R5,875 million and the increase of infrastructure -work inprogress of R4,145 million. The amendment on the disclosure on property, plant and equipment resulted inthe aggregation of the purchase amount of property, plant Cash flows from investing activities: activities of anon-cash flow amount of R2,441 million relating to employee benefit obligations finance charges. correctionA madewas errortoan that identifiedwas during the year relating to inclusionthe in the calculation of cash flows from operating Cash flows from operating activities: Cash Flow Statement The correction of errors and the restatement of the amounts had the following effect on the Cash Flow Statements Property, plant and equipment with no changes to the useful lives of the reclassified items. progress to in work Infrastructure R6,794 from - Provincial million reclassificationtheof Treasury. amount the cost resulted in Thisthe of This approach isconsistent with best practice in the presentation and disclosure of property, plant and equipment by other entities During and the review of disclosures, the disclosure on property, plant and equipment was amended to include infrastructure -work inprogress. The correction of errors and the restatement of prior year amounts resulted inprior year adjustments as follows: 42. Figures in Rand (thousand)RandFigures in - Increase ininfrastructure -work inprogress - Purchase of property, plant and equipment Cash flows from investing activities - Payment of finance costs - Payment of employee costs Cash flows from operating activities Cash Flow Statement 8 8 Infrastructure -work inprogress Property, plant and equipment Statement Financial of Position NOTES TO THEANNUALFINANCIAL STATEMENTS

Prior periodadjustments Note EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 previously Amount as reported 295,918 289,124 6,794 Amount as previously previously reported 1454 241 (146,995) (2,441) (144,554) (157,100) (2,526) 585 415 (14,165) (4,145) (5,875) (4,145) disclosure Change in Change in Prior period Prior period (6,794) 6,794 error 2020 2,441 ,4 4,145 4,145 295,918 - (157,100) - Restated amount Restated amount 295,918 2019 (85) - 191

FINANCIAL INFORMATION 192

EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 agencies. the Board subsequently approved the process of write-off after exhausting allrecovery strategies and engaging with the law enforcementThe trade debtors (see note 3)was reduced by anamount thousand. of R444 This amount relates to fraudulent transactions for which 44. 44. 2. 1. 43. Annual Financial Statements for the year ended31 March, 2020 CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Figures in Rand (thousand)RandFigures in Increase inimpairment allowance (Note 4) Less: Impairment allowance provided inprevious years (Note 3) Reconciliation impairment debt of Amounts written off as uncollectible -DEDEAT Rental Amounts written off as uncollectible -Fraudulent activities Amounts written asuncollectable off (Note 3)

NOTES TO THEANNUALFINANCIAL STATEMENTS

to note 6. auctiondidnotrealise, significantly, revenuethe anticipated. as An adjustment million R2,6 has of been to initialthe estimate. Refer note 45.) circumstances, future funding and projections the entity still considers the current going concern standing as appropriate. (ReferThe to en basis. Inlight of this, the entity has not considered the impairment of any assets especially those that generate revenue. as COVID-19 quarantine sites. Inaddition, the Minister of Tourism started opening up the Tourism sector for trade on step-by-stepThe Pr received inlate June 2020. Afurther claim isbeing prepared for the same amount. The en In addition, the extent of budget cut emanating from the ratings downgrade on the Republic’s sovereign debt arenot known. the use of zero-based budgeting by the government. The entity has received no communication on the budget cut it must implement.thefinancing thereof. Provinces would fund same through reductions their in equitable allocations. share The Minister outlined also The Minis initiatives. discretionary spending. The budget was also re-prioritized to meet COVID-19 Occupational Health and Safety measures and marketingrevenue projections downwards by nearly R10 million. This projection was mitigated by anapproximately R3million reductionMay in In capacity. generating was severally restricted. The lockdown and economic depression have placed a material downward effect on the entity’s revenueIt followed that the entity continued with its Conservation mandate on its Reserves and inturn the Tourism Development mandateThe loc of the Disaster Management Act (Act 57 of 2002). On midnight 26 March 2020, anational hard lockdown was implemented. The Pre Coronavirus Disease of 2019 (COVID-19) Global Pandemic Events after the date reporting Bad impairment debts anddebt Subse Game He ovincial Administration has approached the entity to use, on acommercial basis, certain of its reserve accommodation facilities quentto the Entity submitting its annual financial statements for auditing, requiredas by the PFMA, the live game and hunting tity, notwithstanding the adjustment budget, has made anapplication for aUIF COVID-19 grant. Anamount of R3.2million was tity has considered the COVID-19 pandemic indetermining its going concern considerations. After taking into account current kdown only allowed essential services to function. The Conservation Estate and Wildlife Services formed of these part services. sident of the Republic of South Africa, MrCRamaphosa, on 15 March 2020, declared the COVID-19 pandemic adisaster interms 2020theBoardapproved adjustment an budgetthe2020/21for financial reflect year to economicthe realities revised and ld For Sale ter of Finance tabled aCOVID-19 related Supplementary Budget on 24 June 2020.The budget responded to the pandemic and (444) (652) (208) (190) 2020 208 18 2019 (4) (4) - - - - circumstances, future funding and projections the entity still considers the current Going Concern standing as appropriate. ReferThe to entity Note 43. has also considered the COVID-19 pandemic indetermining its Going Concern considerations. After taking into account current these Annual Financial Statements on the going concern basis. Government Grant funding. Management has determined that such funding isreasonably expected to continue and therefore hasits prepared operations and capital expenditure. such As the entity isdependent for its continued operation inthe foreseeableits own revenue future on continued to augment its operations. The Entity has also leveraged resources from the National sphere and therebyitsbudget augmentingAnnualPerformanceand basedPlanssuchgrant. Theon entity proportion smallgrant, receives,cashthis from flow a also of as The Entity, as aPublic Finance Management Act listed 3Centity, receives anannual grant from the Provincial Government and prepares 45. Figures in Rand (thousand)RandFigures in NOTES TO THEANNUALFINANCIAL STATEMENTS

Going concern EASTERN CAPE PARKSEASTERN ANDTOURISM AGENCY 2019/20 ANNUALREPORT Annual Financial Statements for the year ended31 March, 2020 193

FINANCIAL INFORMATION The Bloukrans Bridge Eastern Cape, South Africa

Tsista falls, Qumbu Eastern Cape, South Africa Hole in the Wall, Wild Coast Eastern Cape, South Africa EASTERN CAPE PARKS AND TOURISM AGENCY ANNUAL REPORT 2019/20 Front Cover image: Front River Storms Africa South Cape, Eastern PR362/2020 978-0-621-48907-1 ISBN: East London | 5213 | East Street Oxford 17-25 London | 5213 | East | Southernwood 11235 London | PO Box East Africa | South Cape Eastern 0881 492 (0) 43 +27 [email protected] .co.za visiteasterncape www.