Annual Rep0rt
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AnnuAl RepoRt 2013 2014 General InformatIon reGIStereD name: eastern Cape Parks and tourism agency PHYSICal aDDreSS: 6 St marks road Southernwood east london PoSTAL aDDreSS: P.o. Box 11235 Southernwood east london 5213 TELEPHONE nUmBer/S: 027 43 705 4400 027 43 701 9600 FAX nUmBer: 027 86 516 1998 PerformanCe emaIl aDDreSS: General [email protected] 18 STATEMENT OF reSPONSIBIlItY FOR WeBSIte aDDreSS: 6 FOREWORD BY tHe CHaIrPerSON PERFORMANCe INFORMATION www.visiteasterncape.co.za 8 CHIef eXeCUtIVe OFFICer’S oVerVIeW 18 EXeCUtIVe manaGement eXternal aUDITORS: 10 Statement of reSPonsibilItY auditor-General South africa 19 AUDITOR’S rePORT: anD ConfIrmatIon of accuraCY PreDetermIneD oBJeCtIVeS for tHe annUal rePort BanKerS: 19 OVerVIeW OF tHe PUBlIC entItY’S nedbank 11 STRATEGIC oVerVIeW PERFORMANCe 12 LEGISLATIVe anD OTHer manDATES BOARD SeCRETARY: 21 STRATEGIC oUtCOME ORIenteD ms Xoliswa mapoma 16 ORGanISATIONAL STRUCtUre GOALS 24 PERFORMANCe INFORMATION BY PROGramme 56 SUmmarY OF fInanCIal INFORMATION GoVernanCe HUman Capital fInancial manaGement InformatIon 66 INTRODUCtION 82 INTRODUCtIon 91 REPORT OF tHe CHIef eXeCUtIVe OFFICer 66 PORTFOLIo COMMITTEE 83 HUman reSoUrCe oVerSIGHt STATIStICS 92 REPORT OF tHe eXternal aUDITOR 66 EXeCUtIVe aUtHORItY 95 ANNUal fInanCIal STATEMENTS 67 THe aCCoUntInG aUtHORItY 72 RISK manaGement 73 Internal aUDIt anD aUDIt COMMITTEES 76 COMPlIanCe WItH LAWS anD REGULATIONS 76 FRAUD anD CORRUPtION 76 MInImISInG CONFLICt OF IntereSt 77 CoDe OF CONDUCt 77 HEALTH SAFETY anD enVIRONMENTAL ISSUeS 77 SoCIal reSPONSIBIlItY 77 BOARD SeCRETARY 79 AUDIt COMMITTEE rePORT contents BoarD of direCtorS VUYo ZItUmane CHaIrPerSon of tHe BoarD tHoBeKa maHlatI Audit CommIttee CHaIrPerSon MickeY mama BoarD memBer tabby tSengiwe BoarD memBer feZIle makiwane DePUtY CHaIrPerSon of tHe BoarD MziwamaDoDa SotSHana BoarD memBer anDreW Muir BoarD memBer SItHemBele MgxaJI BoarD memBer eAsteRn c Ape p ARks And touR ism Agency AnnuAl RepoRt 2013 / 2014 3 lISt OF aCRONYmS aCT Actual METT-SA Management effectiveness tracking tool - afS Annual financial Statements South africa aGSA Auditor General of South africa MTEF Medium term expenditure framework AOP Annual operational Plan nDT National Department of tourism aPP Annual Performance Plan NEM National environmental management aSB Accounting Standards Board nHC National Heritage Council BBBee Broad Based Black economic empowerment nPaeS National Protected area expansion Strategy BIfI Biodiversity Integrity facilitation Index NR Nature reserve CATHSSETA Culture, arts, tourism, Hospitality and Sport nSSD National Strategy for Sustainable Development Sector education and training authority ntCE National tourism Career expo CEO Chief executive officer oHS Occupational Health & Safety CFO Chief financial officer PAA Public audit act CIteS Convention on International trade in Pfma Public finance management act endangered Species\ (of Wild fauna and PGDPS Provincial Growth and Development Plan flora) PmS Property management System CLARA Communal land rights act PPe Property Plant and equipment CoP Conference of the Parties reC Recommended DEA Department of environmental affairs SanBI South african national Biodiversity Institute DeDEAT Department of economic Development, SarS South african revenue Services environmental affairs and tourism SCm Supply Chain management DWaf Department of Water affairs and forestry SDl Skills Development levy eCtB Eastern Cape tourism Board SIrS Special Investigations and resources Security eCDC Eastern Cape Development Corporation Smme Small medium and micro enterprises eCPB Eastern Cape Parks Board teP Tourism enterprise Partnership eCPTA Eastern Cape Parks and tourism agency TR Treasury regulations eD Executive Director UIf Unemployment Insurance fund ePWP Extended Public Works Programme UnDP United nations Development Programme fmPPI Framework for managing Programme Performance Information UnWTO United nations World tourism organisation Gef Global environmental facility GraP Generally recognised accounting Practice HCm Human Capital management IaS International accounting Standards ICt Information and Communications technology ImCt Information management and Communication technology IPSaS International Public Sector accounting Standards mCM Marine and Coastal management meC Member of executive Council Cape Buffalo. Syncerus caffer geneRAl FOREWorD BY tHe CHaIrPERSON I am honoured to once again present the annual report of the Eastern Cape Parks and Tourism Agency. It is especially gratifying to be in a position to once again draw attention to the unqualified audit opinion attained by the Agency since inception. Notwithstanding the areas of improvement further highlighted in the Auditor General’s report, the Board is proud of the commitment of the Executive management to the regulatory environment of this great country. the agency continues to surpass the national target for management effectiveness of the protected area estate under its management authority. this achievement is a testament to the level of expertise and capacity that is resident within the three regions of the entity and individual reserve management. Continuous improvement in the relationships with the communities adjacent to the protected areas remains a key organising principle in giving effect to the eastern Cape Protected area expansion Strategy. the confidence reflected in the marine protected area management endowed by the Department of environmental affairs is appreciated. of particular focus to the ensuing medium term is the bolstering of the revenue generation capacity to balance the reality of the shrinking VUYo ZItUmane public sector fiscus.t o this end, the agency has identified and continues CHaIrPerSon of tHe BoarD to singularly provide resources for the flagship reserves, mkhambathi, Baviaanskloof, Dwesa, Great fish river, Silaka and Hluleka. these eaStern CaPe ParKS anD reserves capture the quintessential experience of the eastern Cape of toUrism AgenCY eco-tourism, pristine Wild Coast and cultural heritage. tourism as a sector is still in the grip of the aftereffects of the global economic recession. the support of the Department of economic Incidents of travel for the domestic market have seen a steady decline over the past Development, environmental affairs and five years. although there has been a growth in the number of international arrivals, tourism has been the foundation that has the average spend per tourist has been decreasing and the number of provinces visited ensured the realisation of the successes of remains unchanged. even though affordability is a key feature of the province, the the agency. on behalf of the Board I further eastern Cape becomes extremely vulnerable to a cost-conscious market due to issues extend acknowledgement and appreciation around air access and expansiveness for land markets. to the audit Committee and their work in safeguarding sound corporate governance. Great strides have been made in giving effect to the agency’s strategic goal of catalysing the executive management and entire staff tourism in the province. the implementation of the trade-led Growth Strategy has resulted of the agency are acknowledged for their in a maintained momentum of brand awareness among international tourism trade tireless efforts in shouldering the brunt of within the target markets. the current climate has further brought to bear the critical the work and maintaining an institution that space that strategic stakeholder engagement with local government and the country’s can deliver on the mandate and support diplomatic corps should occupy in the agency’s forward planning. government’s priorities in improving the lives of all South africans. In the year ahead, the agency will finalize the strategy that will give effect to the second phase of democracy in the province. Strategic partnerships with both private and public the intersection of the agency’s dual mandate sector institutions will determine the social capital at the agency’s disposal to leverage of tourism and biodiversity management is greater resources to fulfil its mandate.t ourism is recognised as one of the six core pillars a critical element of the sustainable socio- of growth in the new Growth Path framework. the State of the Province address further economic development envisaged to break presents clear opportunities to leverage the dual mandate of the agency, of note is: the bonds of poverty off the eastern Cape. as the collective Board of Directors we are • Existence of a clear provincial brand with provincial leadership buy-in confident that the eastern Cape Parks and • Government investment in infrastructure programmes to enhance access to the tourism agency stands geared for the province such as the n2 toll Highway and mthatha airport upgrade challenges ahead. • Provincial positioning as energy hub provides possibilities in alternative energy to support protected areas The agency is further emboldened by the recently proclaimed tourism act 3 of 2014, whose objectives resonate with the eCPTA’s strategic thrusts, these being; • The establishment of concrete intergovernmental relations to develop and manage tourism • Provisions for the effective marketing of South africa, both domestically and internationally • The promotion of quality tourism products and services • The promotion of economic growth and development of the sector • The promotion of responsible tourism practices VUYo ZItUmane CHaIrPerSon of tHe BoarD CHIEF eXeCUtIVe OFFICER’S oVERVIeW It is with great pride that I present