ANNUAL REPORT 2018/19

Biodiversity for Life South African National Biodiversity Institute Table of contents

General Information ...... 2 Abbreviations/Acronyms...... 3 Minister’s Foreword...... 5 Chairperson’s Statement...... 7 Board of Directors...... 9 Chief Executive Officer’s Report...... 10 Executive Management...... 12 Legislative and Other Mandates ...... 13 Organisational Structure...... 15 SANBI’s Network of Partners...... 16 Strategic Overview...... 18

Performance information...... 19 Programme 1...... 20 Administration Programme 2...... 24 National Botanical Gardens (NBGs) Programme 3...... 28 Foundational biodiversity information Programme 4...... 31 1 Biodiversity assessment and knowledge generation Programme 5...... 35 Biodiversity policy advice, climate resilience and access to information Programme 6...... 44 Biodiversity capital development and education Programme 7...... 55 National Zoological Garden

Performance against pre-determined objectives...... 61 Pre-determined objectives 2018/2019...... 62 Pre-determined objectives 2017/2018...... 70

Governance reports...... 80 Pre-determined Corporate governance statement...... 81

ANNUAL FINANCIAL STATEMENTS ...... 90 General Information...... 90 Statement of Responsibility of the Board ...... 91 Audit Committee and Risk Committee Report ...... 92 Report of the Auditor-General of ...... 94 Annexure–Auditor-General’s responsibility for the audit...... 100 Report of the Accounting Authority ...... 101

South African National Biodiversity Institute TABLE OF CONTENTS

ANNUAL FINANCIAL STATEMENTS (continued)...... 90

Statement of Financial Position...... 104 Statement of Financial Performance...... 105 Statement of Changes in Net Assets ...... 106 Cash Flow Statement ...... 107 Statement of Comparison of Budgets and Actual Amounts...... 108 Accounting Policies ...... 110 Notes to the Financial Statements ...... 134

The following supplementary information does not form part of the financial statements and is unaudited: Annexure A - Project sponsorships and donations ...... 170

General Information 2 Name: South African National Biodiversity Institute (SANBI) Registration Numbers and/or other SANBI is a Public Entity established in terms of the National relevant numbers (e.g. FSP): Environmental Management: Biodiversity Act of 2004 (No. 10 of 2004) Head office address: 2 Cussonia Avenue, Brummeria, Pretoria, 0002 Postal Address: Private Bag X101, Silverton, 0184 Contact telephone numbers: 012 843 5200 Email address: [email protected] Website address: www.sanbi.org External Auditor: Auditor General of South Africa, 17 Park Lane Building, Park Lane, Century City Bank: Nedbank, 135 Rivonia Road Sandown, Sandton, 2196 Board Secretary: Ms Lebogang Ralepeli

Annual Report I 2018/19 Abbreviations/Acronyms

Botanic Gardens Conservation Eastern Cape Implementation BGCI ECIC International Committee

Biodiversity Geographical & Tourism BGIS ECPTA Information System Agency Biodiversity Human Capital BHCD EIA Environmental Impact Assessment Development EPWP Expanded Public Works Programme BMP Biodiversity Management Plan BOTSOC Botanical Society of South Africa EWT Endangered Trust Cape Action for People and the FP6 Framework Programme 6 C.A.P.E. Environment Global Biodiversity Information GBIF Curriculum Assessment Policy Facility CAPS Statements GEF Global Environment Facility Culture Arts, Tourism, Hospitality & CATHSSETA Sport Sector Education & Training Deutsche Gesellschaft für GIZ Authority Internationale Zusammenarbeit

CBD Convention on Biological Diversity GM Genetically Modified Climate Change and Bio-adaptation CCBA GMO Genetically Modified Organisms Division Global Strategy for Plant GSPC CEPF Critical Ecosystem Partnership Fund Conservation 3 COP Conference of the Parties HAWK Hangklip Art Week Custodians for Rare and Endangered CREW Wildflowers HCD Human Capital Development Council for Scientific and Industrial HRD Human Resources Development CSIR Research Intergovernmental Science-Policy Department of Agriculture, Forestry IPBES Platform on Biodiversity and DAFF and Fisheries Ecosystem Services

DBE Department of Basic Education Intergovernmental Panel on Climate IPCC Change The Development Bank of Southern DBSA Africa International Union for Conservation IUCN Department of Environmental of Nature DEA/DEFF Affairs/Department of Environment, KRA Key Result Areas Forestry and Fisheries* LTSM Learner Teacher Support Material DG Director General Department of Science and MEC Member of the Executive Council DST Technology Mini Stream Assessment Scoring miniSASS DWS Department of Water and Sanitation System

EAP Employee Assistance Programme MOA Memorandum of Agreement

EBA Ecosystem-Based Adaptation MOP Member of the Parties

MOU Memorandum of Understanding *DEA until May 2019; DEFF from June 2019

South African National Biodiversity Institute MSB Millennium Seed Bank (UK) ProEcoServe Project for Ecosystem Services

MSTP Master Systems Technology Plan SABAP2 Southern African Bird Atlas Project 2

MTA Material Transfer Agent South African Biodiversity SABIF Medium-Term Expenditure Information Facility MTEF Framework South African Institute for Aquatic SAIAB MTI Marine Trophic Index Biodiversity

NBA National Biodiversity Assessment South African National Biodiversity SANBI Institute NBF National Biodiversity Framework SANParks South African National Parks NBG National Botanical Garden The South African Research Chairs NDF Non-Detriment Findings SARChi Initiative NDP National Development Plan SARS South African Revenue Services National Education, Health and NEHAWU SIS Skills Intelligence System Allied Workers’ Union (South Africa) Technical Assistance Unit of National Environmental TAU NEMBA National Treasury Management: Biodiversity Act TOPS Threatened or Protected Species National Freshwater Ecosystem NFEPA Priority Areas UKZN University of KwaZulu-Natal NGO Non-Governmental Organisation United Nations Development UNDP NGP New Growth Path Programme 4 United Nations Environment NIE National Implementing Entity UNEP Programme NRF National Research Foundation United Nations Framework UNFCCC NRM Natural Resource Management Convention on Climate Change

The United Nations Office for Project OD Organisation Development UNOPS Services OHS Occupational Health and Safety UWC University of the Western Cape Pan African Association of Zoos and PAAZA Wildlife and Environment Society of Aquaria WESSA Southern Africa PES Payment for Ecosystem Services WSP Workplace Skills Plan Provincial Government of the PGWC Western Cape WWF-SA World Wildlife Fund-South Africa

Annual Report I 2018/19 5 Minister’s Foreword

It is a pleasure to present the 2018/19 Annual Report for the South African National Biodiversity Institute.

This is the body mandated by the National Environmental Management: Biodiversity Act (No. 10 of 2004) to explore, reveal, celebrate and champion biodiversity for the benefit and enjoyment of all South Africans. This includes giving effect to international agreements, and cooperative governance arrangements directed at ensuring the country’s rich and varied biodiversity is conserved for future generations.

South Africa is one of the mega-diverse countries in the world. This provides endless opportunities for millions of people to experience the beauty and bounty of our magnificent country through visits to SANBI’s national botanical and zoological gardens. These visits promote tourism and add to economic growth.

South African National Biodiversity Institute In the past year, SANBI and the then Ministries of • Approval of the SANBI Gardens Expansion Strategy Environmental Affairs and Tourism had an opportunity for 2016 to 2030 and the creation of a system for other to unveil the Sisulu Circle at the Walter Sisulu National botanical gardens in South Africa to be associated Botanical Garden in July 2018–a historic moment with SANBI. honouring South Africa’s struggle icon, the late Walter Sisulu. The 276 ha Walter Sisulu National Botanical Garden The Institute has also fulfilled several strategic national was established in 1982 as the Witwatersrand National processes, demonstrating the relevance of biodiversity Botanical Garden. As one of SANBI’s network of 10 national botanical gardens it was renamed in honour of beyond the environmental sector, as well as the credibility the life and work of the late Water Sisulu in 2004. and usefulness of our science-based policy inputs.

Amongst other achievements by SANBI in the past SANBI remains an Institute of good standing, with a financial year have been the: reputation for its contribution to science and policy • Transfer of the National Zoological Gardens in Pretoria nationally and globally. I wish to thank the SANBI Board, from the National Research Foundation of the then management, staff and their strategic partners in the Department of Science and Technology to SANBI on 1 April 2018. biodiversity sector for their hard work in the past financial • Publication of The Status of Biological Invasions and year. their Management in South Africa–a milestone for South Africa. It is the first comprehensive national- scale assessment of the status of biological invasions and their management and a first in the world. Barbara Creecy • Further investment in the Groen Sebenza Programme allowing an intake of 39 graduate beneficiaries. Minister of Environment, Forestry and Fisheries

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Annual Report I 2018/19 Chairperson’s Statement

7 The South African National Biodiversity Institute champions the exploration, conservation, sustainable use, appreciation and enjoyment of South Africa’s exceptionally rich biodiversity for all people.

I am presenting the achievements of the 2018/19 financial year. This marks an era going beyond the founding of South African National Biodiversity Institute (SANBI) more than ten years ago. SANBI contributes to South Africa’s sustainable development by facilitating access to biodiversity data, generating information and knowledge, building capacity and providing policy advice. SANBI also manages national botanical and zoological gardens for the country.

These gardens offer unique experiences to explore the rich biodiversity and nature through abundant plant and animal species, birding spots, educational facilities, hiking trails, biking routes, restaurant and recreation facilities, including bookshops.

Successes for the past year include: • Progress in SANBI’s role as the National Implementing Entity of the Global Adaptation Funds. SANBI was re-accredited with the Adaptation Funding in March 2019 for a further 5-year period.

South African National Biodiversity Institute • Launching the $7.2 million Ecological Infrastructure public on the science of life (awareness, education and for Water Security project in May 2018: the project communications). is funded by the Global Environmental Facility. It is I am humbled and honoured that SANBI had the implemented with the support of the Development opportunity to launch the Sisulu Circle at the Walter Bank of Southern Africa in collaboration with the Sisulu National Botanical Garden, we celebrated the Department of Environmental Affairs, as well as the Department of Water and Sanitation. It aims to centenary of both Tata Nelson Rolihlahla Mandela and enhance organizational capacity and investment in Ma Albertina Sisulu on that day. This garden plays an ecological infrastructure to improve water security important conservation role, not least the protection of in two demonstration catchments, namely, the Berg- one of the few remaining populations of the endangered Breede and the greater uMngeni catchment areas. Albertina Sisulu Orchid in Gauteng (an orchid that is being threatened by pending housing developments and • SANBI’s role as a Direct Access Accredited Entity of uncontrolled recreational vehicle activities), the garden the Green Climate Fund (GCF): the largest operating also popularly hosts a breeding pair of Verreaux’s Eagles, entity of the United Nations Framework Convention including nearly 250 bird species. on Climate Change. GCF finances projects aimed at responding to climate change; SANBI leads a I wish to thank the Ministry of Environmental Affairs and comprehensive process to call for and identify project the Parliamentary Portfolio Committee on Environmental proposals for development into full submissions to the Affairs for the confidence they placed inSANB I during GCF. the period under review. I am particularly thankful to the • SANBI was part of the South African delegation that late Dr Edna Molewa for her leadership in advocating the participated in the 14th Conference of Parties of the value of biodiversity for economic and social prosperity Convention on Biological Diversity held in Egypt across the globe. My appreciation is extended to both in November 2018. SANBI utilized the opportunity Ministers Hanekom and Mokonyane who led SANBI as to profile its work on mainstreaming biodiversity the Honourable Ministers for Environmental Affairs in the to production sectors and policies of government, 8 2018/2019 financial year. further demonstrating the contribution of biodiversity to social and economic well-being. This included a I extend my gratitude to the previous SANBI Board whose celebration of South Africa’s 20 newly declared Marine term of office ended on 30 September 2018, as well Protected Areas, which increased the area of South the current Board Members for their wise counsel and Africa’s marine environment under formal protection commitment in ensuring the integrity of SANBI’s strategic from 0.4 per cent to 5 per cent. direction.

• Making a significant contribution to developing I am honoured to be entrusted with the responsibility human capital and supporting transformation ‘for to lead and guide the SANBI team in delivering on its the biodiversity sector’; in total SANBI provided mandate. I am particularly appreciative of the professional professional development and post-graduate super- attitude coupled with the dedication demonstrated vision for 242 young professionals. in executing the Institute’s strategy, shown by the Overall, the Board had fulfilled its responsibilities CEO, Executive and staff. They have worked tirelessly in towards advising the Ministers’ of Environmental Affairs, striving to achieve the goals of the Institute. including the biodiversity sector, on the management In conclusion, I take this opportunity to thank SANBI’s and conservation of biological resources in accordance stakeholders and partners for their generous and with the mandate of the Institute. In 2018 the mandate unwavering support, enabling SANBI to deliver on its of the Institute was further enhanced by the transfer of mandate. the National Zoological Gardens to fall under SANBI. The objectives of the National Zoological Gardens include building a center of research and training excellence and an authoritative source of scientific information on

the biodiversity of wild animals and their ecosystems, MS BERYL FERGUSON including creating a dynamic platform for engaging the Chairperson: SANBI Board

Annual Report I 2018/19 Board of directors

Ms Beryl Ferguson Board Chairperson

Dr Crispian Olver Dr Thulani Luthuli 9

Dr Yonah Seleti Ms Judy Hermans Ms Ntsoaki Mngomezulu

Ms Thandiwe Ms Venete Klein Ms Limpho Makotoko Prof. Brian van Wilgen Godongwana

South African National Biodiversity Institute Chief Executive Officer’s REPORT

10 evidence required to support policies and decisions relating to better management and conservation of South Africa’s biological diversity. SANBI played the unique role within biodiversity sector of linking scientific knowledge with direct policy advice.

Highlights for the past year include:

• Good progress in the implementation of SANBI’s Department of Environmental Affairs-funded Infrastructure Programme, with significant investment being made into improving and refurbishing buildings and related infrastructure (such as roads, pathways, parking areas, security infrastructure, bridges, irrigation and sewerage systems), information technology infrastructure, as well as research equipment and vehicle recapitalisation.

• Significant investment into maintenance and improvement of nature-based tourism infrastructure I am pleased to report on the South African National across national botanical and zoological gardens Biodiversity Institute’s achievements and obligations for and research facilities with the support from the the 2018/2019 Financial Year. Departments of Environmental Affairs and Tourism, as In the past year the South African National Biodiversity well as donor funding. This included the completion Institute fulfilled its primary mandate generating, of new environmental education centres in the coordinating and interpreting the knowledge and Desert, and Harold Porter national botanical gardens.

Annual Report I 2018/19 • New and upgraded administration buildings, effort of approximately 17 000 days, contributed by maintenance of natural estates and wetland habitats more than 410 individuals from over 80 institutions. with the support from Working for Wetlands and The Council for Scientific and Industrial Research the Department of Environmental Affairs Expanded and Nelson Mandela University played particularly Public Works Programme, as well as upgrades to the important roles in the NBA 2018 through leading the National Herbaria. inland aquatic, estuarine and coastal components.

• The appointment of Prof. John Donaldson, a respected • SANBI’s contribution to the Africa Strategy for the SANBI staff member as the co-chair of the Global Global Biodiversity Information Facility (GBIF). SANBI Assessment on the sustainable use of wild species is Africa’s regional representative and leads the GBIF- by the Intergovernmental Science-Policy Platform Africa network. As part of its obligations in this role, on Biodiversity and Ecosystem Services (IPBES). The SANBI participated in a number of international assessment involves 87 experts from 40 countries and GBIF meetings. SANBI also participated in the GBIF will take three years to complete. Governing Board meeting in Ireland, as part of the South African delegation led by DST, where SANBI • Supporting the South African delegations in the presented on its collaborative work across the completion of several international reporting continent to support the data-science-policy value requirements for international conventions that chain. South Africa is signatory to. SANBI compiled the 6th National Report to the Convention on Biological • Implementing the wishes of the Last Will and Diversity (CBD), which highlights key activities and Testament of the late Ms Joan Kathleen Boteville progress made in achieving the CBD objectives and Wrench, which included Kirstenbosch National targets at a national level. SANBI also supported the Botanical Garden (KNBG) as a beneficiary through development of the DEA-led Country Report to the legacy projects. United Nations Convention to Combat Desertification • Celebrating the successful transition of the Fundisa (UNCCD). The country report outlines progress for Change Programme to SANBI this year. 11 towards the achievement of the strategic objectives of the UNCCD, related to the condition of ecosystems I wish to express my sincere gratitude to the then Ministers and populations, drought, global environmental for Environmental Affairs, the late Dr Edna Molewa benefits and the mobilisation resources to support and Ms Nomvula Mokonyane; the Director General for the implementation of the Convention. Environmental Affairs, and Ms Nosipho Ngcaba and her team for all the support they have given to SANBI during • Implementing our commitment to the adopted the financial year under review. ‘managed network’ institutional model, which I extend my gratitude to the SANBI Board Chair Ms Beryl consists of partner organisations, institutions and Ferguson and the entire Board for their unwavering bodies with whom SANBI has (or should have) formal support, commitment and leadership. agreements that contribute towards delivering on SANBI’s mandate. Through the network we were able I wish to thank SANBI staff for their dedication and hard to harness and engage with the extensive range of work, as well as our network of partners and stakeholders biodiversity expertise in South Africa. for the support given to SANBI in the year under review which went a long way in contributing to the entity • Completion of the National Biodiversity Assessment meeting its 2018/2019 targets. (NBA) 2018. The NBA is the primary tool for monitoring and reporting on the state of biodiversity in South Africa, and is the third such assessment for South Africa (previous iterations were in 2004 and 2011). Each NBA builds on years of research and innovation by South African scientists. The NBA 2018 assesses Dr Moshibudi Rampedi knowledge up to 2018 and will be published for public release in 2019. The process to develop NBA Chief Executive Officer 2018 began in 2015. It represents a collaborative South African National Biodiversity Institute

South African National Biodiversity Institute executive management

Dr M. Rampedi Chief Executive Officer

M. E. Khoahli K. E. Maze Prof. R. Sebola Dr Mandy Barnett Chief Corporate Officer: Chief Director: Biodiversity Chief Director: Biosystematics Leader: Climate Change 12 Corporate Services Information and Policy Advice and Collections

C. K. Willis L. Dlamini L. V. Ralepeli T. Mutshinyalo Chief Director: Conservation Director: Marketing and Director: CEO Office and Board MANCO representative to EXCO Gardens and Tourism Communication Secretary

C. H. Mbizvo Prof. J. S. Donaldson L. Sithole M. J. Netshiombo Chief Director: Biodiversity Head: Biodiversity Science and Chief Financial Officer Chief Director: Human Resources Research, Assessment and Policy Advice Monitoring

Annual Report I 2018/19 Legislative and other mandates

The South African National Biodiversity Institute was (b) must monitor and report regularly to the Minister on established in terms of section 10(1) of the National the impact of any genetically modified organism that Biodiversity Management: Biodiversity Act (Act No. 10 has been released into the environment including of 2004). SANBI is a public entity in terms of section the impact on non-target organisms and ecological 38(1) (m) of the Public Finance Management Act. It is processes, indigenous biological resources and the classified as a schedule 3A entity, i.e. one that will receive biological diversity of species used for agriculture; substantial support from the National Revenue Fund. (c) must act as an advisory and consultative body on matters relating to biodiversity to organs of state and Section 2 of NEMBA stipulates that SANBI’s purpose is to other biodiversity stakeholders; assist in achieving the objectives of the Biodiversity Act. (d) must co-ordinate and promote the taxonomy of Section 2 sets the further objectives of the Act, i.e.: South Africa’s biodiversity; (a) within the framework of the National Environmental (e) must manage, control and maintain all national Management Act, to provide for: botanical gardens; (i) the management and conservation of biological (f) must manage, control and maintain: diversity within the Republic and of the components of such biological diversity; 1. herbaria; and

(ii) the use of indigenous biological resources in a 2. collections of dead animals that may exist; sustainable manner; and (g) must establish facilities for horticulture display, 13 (iii) the fair and equitable sharing among stakeholders environmental education, visitor amenities and of benefits arising from bio-prospecting involving research; indigenous biological resources; (h) must establish, maintain, protect and preserve (b) to give effect to ratified international agreements relating collections of plants in national botanical gardens and to biodiversity, which are binding on the Republic; in herbaria;

(c) to provide for co-operative governance in biodiversity (i) may establish, maintain, protect and preserve management and conservation; and collections of animals and micro-organisms in appropriate enclosures; (d) to provide for a South African National Biodiversity Institute. (j) must collect, generate, process, co-ordinate and disseminate information about biodiversity and the SANBI’s mandate comes from the National Environmental sustainable use of indigenous biological resources Management: Biodiversity Act No. 10 of 2004: Section 11. and establish and maintain databases in this regard; Functions (k) must allow, regulate or prohibit access by the public (1) The Institute: to national botanical gardens, herbaria and other (a) must monitor and report regularly to the Minister on: places under the control of the Institute and supply plants, information, meals or refreshments or render 1. the status of the Republic’s biodiversity; other services to visitors; 2. the conservation status of all listed threatened or (l) must undertake and promote research on indigenous protected species and listed ecosystems; and biodiversity and the sustainable use of indigenous 3. the status of all listed invasive species; biological resources;

South African National Biodiversity Institute (m) must coordinate and implement programmes for: 48. (3) The Institute must:

1. the rehabilitation of ecosystems; and (a) assist the Minister and others involved in the preparation of the National Biodiversity Framework, a 2. the prevention, control or eradication of listed bioregional plan or a biodiversity management plan invasive species; must coordinate programmes to to comply with subsection (1); and involve civil (b) make recommendations to organs of state or municipalities referred to in subsection (2); align society in: their plans referred to in that subsection with the 1. the conservation and sustainable use of National Biodiversity Framework and any applicable bioregional plan. indigenous biological resources; and 60. (2) The Institute must provide logistical, administrative 2. the rehabilitation of ecosystems; and financial support for the proper functioning of the Scientific Authority. (n) on the Minister’s request, must assist him or her SANBI is also responsible for the following in the performance of duties and the exercise of regulations in terms of NEMBA: powers assigned to the Minister in terms of this Act; • Threatened or Protected Species Regulations;

(o) on the Minister’s request, must advise him or her on • Convention on International Trade in Endangered any matter regulated in terms of this Act, including: Species of Wild Fauna and Flora Regulations; • Draft Alien and Invasive Species Regulations. 1. the implementation of this Act and any international agreements affecting biodiversity Underpinning the successful implementation of provisions of NEMBA is the submission of scientific which are binding on the Republic; evidence to support policy and decision making relating 14 to the conservation and management of biodiversity and 2. the identification of bioregions and the contents the impacts of and adaptation to climate change. of any bioregional plans; Key priorities are also derived from official sources that 3. other aspects of biodiversity planning; identify issues with a high relevance to policy, such as, the National Biodiversity Strategy and Action Plan (NBSAP), 4. the management and conservation of biological the National Biodiversity Framework (NBF), government diversity; and delivery agreements, and other national priorities (e.g., wildlife trade, the green economy), and specific mandates 5. the sustainable use of indigenous biological such as provided by the White Paper on the National resources; Climate Change Response Policy (NCCRP). SANBI manages its human resources (p) on the Minister’s request, must advise him or her through the following legislation: on the declaration and the management of, and • Labour Relations Act No. 66 of 1995; development in, national protected areas; • Basic Conditions of Employment Act No. 75 of 1997;

(q) must perform any other duties: • Employment Equity Act No. 55 of 1998;

1. assigned to it in terms of this Act; or • Skills Development Act No. 97 of 1998; • Skills Development Levies Act No. 9 of 1999; 2. as may be prescribed. • Occupational Health and Safety Act No. 85 of 1993; (2) When the Institute in terms of subsection (1) • Compensation for Occupational Injuries and Diseases gives advice on a scientific matter, it may consult any Act No. 130 of 1993.

appropriate organ of state or other institution, which has The Institute also complies with the Public Finance expertise in that matter; Management Act and relevant Treasury regulations.

Annual Report I 2018/19 Conservation Education & Public Engagement in Science

Engineering and Technical Services

Supply Chain Management

Human Resources Management & Organizational Development

Research & Scientific Services Garden Finance, Compliance & Risk

ational Zoological Zoological N ational Management

Horticulture, Hygiene, & Environment Department

Conservation & Animal Collections

Commercial Services and Business Development

SCM & Assets Management inance F Financial Management

Governance, Compliance & Risk Management ervices orporate orporate S Information Technology C tur e

Human Resources Management 15 H uman esources R

National Botanical Gardens

ourism Biodiversity Education & T Gardens & Gardens onservation Empowerment C

Marketing & Communications

CEO Office and Board Secretary I B oard SANB I ity I n s titute Biodiver s ity tion a l

Biosystematics & Collections n Na a n onal s tru c ti onal

ve O ff i cer E xec u t i ve C h i ef Initiatives ollections

i rs A ffa E nv i ronmental of Mi n i ster Zoological Systematics & C iosystematics B iosystematics

South Afric South Biological Infrastructure dvice cience and cience dvice Biodiversity Information iodiversity B iodiversity Policy A Policy

Information & Information Management & Planning Policy A Policy Biological Invasions iodiversity S B iodiversity o rg an i sa esearch, esearch, onitoring Biodiversity Assessment & R ssessment & ssessment M iodiversity B iodiversity

A Monitoring limate limate hange C C

South African National Biodiversity Institute SANBI’s Network of Partners

Collaborations with National Departments/Entities Department of Agriculture, Forestry and Fisheries (DAFF) National Department of Tourism Department of Environmental Affairs (DEA) National Research Foundation (NRF) Department of Rural Development and Land Reform South African Local Government Association (SALGA) (DRDLR) Department of Science and Technology (DST) South African National Parks (SANParks) Department of Water and Sanitation (DWS) South African National Roads Agency Limited (SANRAL) Development Bank of SA (DBSA) South African Weather Service (SAWS) Expanded Public Works Programme (EPWP) Statistics South Africa

Collaborations with Provincial Departments CapeNature Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) Eastern Cape Parks and Tourism Agency (ECPTA) Ezemvelo KZN Wildlife (EKZNW) Free State Department of Tourism, Environmental and Economic Affairs Gauteng Department of Agriculture and Rural Development (GDARD) Department of Economic Development, Environment and Tourism (LEDET) Mpumalanga Department of Agriculture, Rural Development, Land and Environmental Affairs Mpumalanga Tourism & Parks Agency North West Department of Agriculture, Conservation, Environment and Rural Development Northern Cape Department of Environment and Nature Conservation 16 Western Cape Department of Environmental Affairs and Development Planning

Collaborations with Municipalities Buffalo City Metropolian Municipality (BCMM) Midvaal Municipality Cape Winelands District Municipality Mopani District Municipality City of Msunduzi Municipality City of Tshwane Nelson Mandela Bay Municipality Ekurhuleni Municipality Nketoana Local Municipality Ehlanzeni District Municipality Overstrand Municipality eThekwini Municipality Setsoto Local Municipality Gamtoos Irrigation Board uMgungundlovu District Municipality

Collaborations with Research Centres Agricultural Research Council (ARC) South African Institute of Aquatic Biodiversity (SAIAB) Albany Museum South African Medical Research Council Chrysalis Academy South African Wildlife College Coaltech Research Association South African Environmental Observatory Network (SAEON) Council for Geoscience Stellenbosch University (SU) Council for Scientific and Industrial Research CS( IR) The KwaZulu-Natal Museum Durban Natural Science Museum Tshwane University of Technology (TUT) East London Museum University of Cape Town (UCT) Forestry and Agricultural Biotechnology Institute (FABI) University of Johannesburg (UJ) Glen Agricultural College University of KwaZulu-Natal (UKZN) Iziko Museums of SA University of Mpumalanga National Museum, Bloemfontein University of Pretoria (UP) National Research Foundation (NRF) University of South Africa (UNISA)

Annual Report I 2018/19 Collaborations with Research Centres Nelson Mandela Metropolitan University (NMMU) University of the Western Cape (UWC) North-West University University of the Witwatersrand (WITS) Port Elizabeth Museum University of Venda (UNIVEN) Rhodes University Water Research Commission (WRC) University of the Free State

Collaborations with Non-Governmental Organisations/Businesses Adaptation Network Kwelera Proprietary Limited Association for Water and Rural Development (AWARD) Kruger to Canyons Biosphere Reserve BirdLife South Africa Lepidopterists’ Society of Africa Botanical Society of South Africa Livinglands Brenton Blue Trust (BBT) National Business Initiative Cape Horticultural Society (CHS) NCC - Environmental Services Cape West Coast Biosphere Reserve NCT Forestry Cooperative Ltd Conservation South Africa Proteus Initiative Duzi uMngeni Conservation Trust (DUCT) The Southern African Foundation for the Conservation of Coastal Birds (SANCCOB) Endangered Wildlife Trust (EWT) Sappi Environmental Monitoring Group (EMG) South African Association of Botanists (SAAB) Forestry South Africa South African Association for Marine Biological Research (SAAMBR) Gondwana Alive South African Cities Network (SACN) 17 Greater Cederberg Fire Protection Association (GCFPA) Sustainable Energy Africa NPC (SEA) Greater Stutterheim Fire Protection Association Table Mountain Fund (TMF) Greenmatter The Garden Route Botanical Garden Groundtruth The Wildlife and Environment Society of South Africa (WESSA) ICLEI - Local Governments for Sustainability Waterberg Biosphere Reserve Indigo Development and Change Wildlands Conservation Trust Institute of Natural Resources World Wide Fund for Nature South Africa (WWF-SA) Isimangaliso Wetland Park Authority

Collaborations with international Entities The American Museum of Natural History JRS Conabio Biodiversity Observation Network (BON)-Development Ocean Conservancy Working Group Botanic Gardens Conservation International (BGCI) Royal Botanic Gardens, Kew Millennium Seed Bank Partnership (MSBP) Royal Botanic Garden, Edinburgh Missouri Botanical Garden Royal Horticultural Society (RHS) Norwegian Environment Agency Joint Ethno-botanical Research Advocacy – Uganda (JERA) United Nations Environment Programme (UNEP) International Union for Conservation of Nature (IUCN) University of Exeter The American Museum of Natural History Universite Pierre et Marie Curie Critical Ecosystems Partnership Fund (CEPF) United Nations Development Programme (UNDP) Missouri Botanical Gardens Global Environment Facility (GEF) Adaptation Fund UNEP World Conservation Monitoring Centre Green Climate Fund UN Statistics Division

South African National Biodiversity Institute Strategic Overview

SANBI was established in 2004, as a statutory organisation under the National Environmental Management: Biodiversity Act (Act 10 of 2004) (NEMBA). SANBI has a broad mandate that is primarily derived from NEMBA Act, but also from other legislation and processes over the past decade. SANBI is a public entity under the national Department of Environmental Affairs (DEA) that manages the country’s network of national botanical and zoological gardens as biodiversity centres. SANBI provides invaluable science-based support for DEA to make sound policy decisions to protect and conserve the country’s natural assets.

OUR VISION OUR MISSION OUR VALUES

SANBI’s vision is biodiversity To champion the exploration, SANBI is guided by the following richness for all South Africans. conservation, sustainable use, organisational values which spell appreciation and enjoyment of out ‘uGreat’ South Africa’s exceptionally rich biodiversity for all people.

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UBUNTU GROWTH RESPECT AND TOLERANCE

harnessing, caring, sharing and nurturing and empowering creating open, honest being in harmony with all of teams and individuals to grow relationships built on trust, creation. and reach their true potential mutual respect, dignity and fairness AND valuing and accepting individuals and diversity.

EXCELLENCE ACCOUNTABILITY TOGETHERNESS

providing service excellence taking pride and responsibility through collaboration we change through passion and in our work and caring for our the world. professionalism. environment and communities.

Annual Report I 2018/19 19

performance information

South African National Biodiversity Institute Programme 1 Administration and communication; and information communication technology (ICT) services. This Programme is designed to Purpose ensure that SANBI is effective, efficient, accountable and responds successfully to changing conditions. Render effective and efficient corporate services. The Institute continued to be committed in managing Strategic Objectives risks; maintaining effective, efficient and transparent • SANBI is positioned as an employer of choice in the systems of risk management and internal controls. biodiversity sector; Furthermore efforts were made to promote good ethical • Implement an effective, efficient and transparent conduct necessary to combat and prevent fraud and supply chain and financial management system as corruption, implementing risk management strategies, regulated by PFMA; promoting occupational health and safety measures, 20 • Improved financial sustainability of the Institute; proper delegation of authority, proper management • Effective corporate services rendered to achieve the of information, communication, technology and other mandate of SANBI; and mechanisms required to entrench good governance.

• Building a compelling brand for all stakeholders. Human Resources

Key Performance Areas In the year under review 29 scientists and horticulturists • Human Resources; on a career ladder submitted portfolios for potential • Marketing and Communication; and promotion, of these nine were promoted. SANBI has 45 scientists and 22 horticulturists on a career ladder. The • Information Communications Technologies. purpose of the career ladder is to have a system that Programme Performance rewards excellence and productivity and encourages This programme represents the support areas which development of scientists and horticulturists to reach underpin all of SANBI’s operational activities, which their full potential. The career ladder for scientists was include human resources management; marketing implemented in 2012 and for the horticulturists in 2015.

EMPLOYEE PROFILE AS AT 31 MARCH 2019

Race/Gender AM AF CM CF IM IF WM WF Total Number 423 303 76 74 5 14 46 70 1011 Per cent 41.8% 30.0% 7.5% 7.3% 0.5% 1.4% 4.6% 6.9% 100

APPOINTMENTS AS AT 31 MARCH 2019

Race/Gender AM AF CM CF IM IF WM WF Total Number 25 39 2 4 2 2 0 3 77 Per cent 32.5% 50.6% 2.6% 5.2% 2.6% 2.6% 0% 3.9% 100

AM African Male CM Coloured Male IM Indian Male WM White Male AF African Female CF Coloured Female IF Indian Female WF White Female

Annual Report I 2018/19 Professional development tally for 2018/19: Father’s Day concerts, a series of Oasis concerts, movie nights, Family Braai Day, Capital Craft Beer Festival, A significant number of students have benefited Biltong & Boerewors Festival, the annual UP Spring Day from professional development and further studies Function, Help Seniors Walks, Adventure BootCamp for through SANBI, in collaboration with tertiary education Women, Cosmo Run, Parkruns, lunar night runs, Banting institutions. This is the highest contribution to date and markets and an Outdoor film festival. Walter Sisulu NBG highlights SANBI’s ongoing commitment to human events hosted during the year included the African Bird capital development. Fair (BirdLife SA), Movie Nights hosted by Africa Sky • Work-integrated learning students: 31 Cinema, Easter Egg Hunt, Mother’s Day concert, Father’s • Kirstenbosch Scholar: 1 Day market, Art in the Garden, Kaya FM #FamilyDay (in partnership with African Bank) and a stargazing event. • Interns: 61 • Honours students: 14 Summer Sunset concerts were hosted in Kirstenbosch NBG (November to March) and the Harold Porter NBG • Masters students: 71 in December/January 2018. The Kirstenbosch concert • Doctoral students: 45 season ended on 31 March 2019. The number of visitors • Postdoctoral Fellows: 19 to the Kirstenbosch Summer Sunset Concerts grew Marketing and Communication by 12%, from 81 925 during the summer of 2017/18 to 91 602 this past summer. Significant growth was seen in Marketing and communication has done well over the the numbers of black and coloured visitors, with last financial year and has managed to increase visitor performers like Black Motion, Lady Zamar, Mafikizolo, numbers versus the same period last year. This has Amanda Black and Sun El Musician performing at been achieved through a combination of a focused Kirstenbosch for the first time. International performers marketing calendar and a non-traditional advertising during the concert season included James, James approach. Social media, in-store point of sale advertising, Morrison and Bonobo, all from the UK. The annual Winter transportation advertising enhanced through the SANBI Wonders at Kirstenbosch programme was held during brand being present on billboards and radio features the winter school holidays in Kirstenbosch. 21 heightened the SANBI brand awareness. The advertising The use of digital media gained more prominence and platforms of the SANBI strategic partners such as KayaFM, social media statistics indicates the year-on-year increase JacarandaFM, Banting Market, McDonald’s SA, Gautrain, in terms of social media following and clicks per view. Coca-Cola and Africa Sky Cinema to name a few, were Facebook, Twitter and Instagram grew exponentially in leveraged and provided excellent cross marketing terms of the numbers of ‘likes’, ‘follows’ and shares. To date, opportunities. The year 2018/2019 was also a year when SANBI has 4 874 Facebook friends, 5 579 Twitter followers discounting and flexible pricing structures were tested. and 1 314 Instagram followers, these numbers exclude Hyperli Deals, Sho’t Left discounted rates and open days garden specific followers. During the year under review proved favourable with the customers. SANBI generated Advertising Value Equivalent (AVE) of The combined number of system-generated customers R20 464 778.59. The Sisulu Circle unveiling alone to all NBGs for the year totalled 1 413 974 which was 16 per generated an AVE of R1 085 772.59. Overall media cent higher than the previous financial year (1 222 816). coverage for the year under review is R21 550 551.18, Customer numbers for the financial year increased year- emanating from coverage received through broadcast, on-year in the following gardens: Free State, Karoo Desert, online, social media and print resulting in PR value of Kirstenbosch, KwaZulu-Natal, Lowveld, Pretoria and R55 137 018.00. the Walter Sisulu NBGs. These numbers were attributed Information Communications Technologies largely to promotion and hosting of events (including concerts, community markets, parkruns, boot camps, The integration of the NZG into SANBI presented ICT yoga classes, night/lunar trail runs, open air cinemas, requirements. The standardisation of priority systems flower shows, exhibitions/plant fairs and weddings) and (email and finance) has successfully been transitioned. use of the gardens by many tourists, members of the To enhance communication and collaborative public and various interest groups. technology platforms for effective engagement with The Pretoria NBG hosted the following events during all its stakeholders the ICT Division have enhanced the year: Kaya FM Women’s Day Concert, Women’s and communications capability between all its stakeholders

South African National Biodiversity Institute with the successful implementation of video conferencing • The Thohoyandou Botanical Garden has been systems in additional venues. The video conferencing equipped with network connectivity enabling staff implementations have contributed to reduced travelling to use the SANBI network and perform their required cost and removing prior engagement limitations. The functions effectively. integration of remote sites onto SANBI’s national network • The Walter Sisulu NBG has been successfully equipped has been successfully achieved with our partners with functional Wifi to enhance visitor experiences in enabling remote staff to utilise SANBI systems. the garden.

Programme Performance Highlights • The newly erected Kirstenbosch Administration Building has been installed with a new network to • SANBI hosted 13 interns on the DST-NRF internship support the ICT, Finance and HR Divisions. programme, a programme aimed at ‘providing SET (Science, Engineering and Technology) graduates an Occupational Health and Safety opportunity to acquire practical work experience and SANBI recognises its obligation to provide a safe, improve their competencies through mentoring and supportive and stimulating work environment for all its exposure to a research environment’. This year saw employees. In order to achieve the aims of the OH&S the first intake from the Sol Plaatje University when policy and to comply with OHS Legislation, SANBI has a Data Science student joined us at the Kirstenbosch committed itself in providing the resources necessary Research Centre. to implement and continually improve the OH&S Programme. The following are highlights of the current • The Last Will and Testament of the late Ms Joan activities. Kathleen Boteville Wrench included Kirstenbosch National Botanical Garden (KNBG) as a beneficiary. Leadership and management commitment Three initial legacy projects were proposed for In order to comply with Section 16(2) of the Occupational using the Wrench bequest funds within the broader Health and Safety Act no. 85 of 1993, the Chief Kirstenbosch Estate and one of the projects, namely Executive Officer has successfully reviewed delegation the Joan Wrench Kirstenbosch Scholarship Fund was of responsibility to all head of cost centres to enforce 22 established in 2018. The first intake of interns and accountability on health and safety compliance. Letters postgraduate students joined in 2019. SANBI’s first of appointment were signed during June 2018. We have environmental law intern joined in February 2019 commitment of all centre managers which resulted into and will, amongst other priorities, assist with legal improved health and safety performance. research. Health and safety compliance monitoring • The combined number of system-generated visitors External health and safety audit to all NBGs for the year totalled 1 413 974, which was Annual health and safety external audit was conducted 16% per cent higher than the previous financial year from 16 July 2018 and concluded on 24 August 2018. (1 222 816). Consolidated overall final performance scores has shown • The Kirstenbosch Summer Sunset Concerts were an improvement of up to 3 STAR for SANBI compared to attended by 91 602 visitors compared with 81 925 in 1 STAR of the previous audit 2016/2017 2017/18, representing a 12 per cent annual increase. The auditor determined the level of compliance to • SANBI exhibited at the Royal Horticultural Society’s the SHE Management Systems in relation to the: (RHS) Chelsea Flower Show in London for the 43rd • Relevant legislation; consecutive year in May 2018 and was awarded its • Risk exposure; 36th Gold Medal under its newly appointed designer Leon Kluge. The exhibition was entitled ‘Iconic • Company standards and procedures; and landscapes: where nature and culture meet’. • NOSA Five Star System CMB150 protocol.

• Special days hosted in the various gardens included The following achievements were noted across the Wellness Days (with TB screening available), World gardens: Aids Day and Biodiversity Crime Awareness Day, • Minimising of incidents amongst others. The Free State, Hantam, Karoo Desert, • SHE Teams effort KwaZulu-Natal, Lowveld, Pretoria, Walter Sisulu and Kirstenbosch NBGs all actively managed Facebook • NOSA SHE Grading boards pages. • Overall improvement of SHE system.

Annual Report I 2018/19 Note the following achievements per garden:

INDIVIDUAL BUSINESS UNIT SCORES Business Unit Effort % DIFR % Stars System Free State National Botanical Garden 76.94 0.00 4.00 Integrated or 5 Star Hantam National Botanical Garden 76.09 0.00 4.00 Integrated or 5 Star Harold Porter National Botanical Garden 75.13 0.00 4.00 Integrated or 5 Star Karoo Desert National Botanical Garden 75.53 2.12 0.00 Integrated or 5 Star Kirstenbosch National Botanical Garden 65.72 1.27 3.00 Integrated or 5 Star KwaZulu-Natal Herbarium 76.87 0.00 4.00 Integrated or 5 Star KwaZulu-Natal National Botanical Garden 75.00 0.00 4.00 Integrated or 5 Star Kwelera National Botanical Garden 70.06 11.84 0.00 Integrated or 5 Star Lowveld National Botanical Garden 75.34 6.68 0.00 Integrated or 5 Star Pretoria National Botanical Garden 76.60 0.78 4.00 Integrated or 5 Star Walter Sisulu National Botanical Garden 75.68 2.71 2.00 Integrated or 5 Star

Areas of improvement as highlighted during the audit are included in the action plan for 2019.

Pretoria National Zoological Garden in Pretoria and Kirstenbosch on the 12 and14 November 2018. A health and safety workshop was conducted to give NZG and management an update on the SANBI Fire Risk Assessment health and safety management system on 10 and 30 Fire risk assessment is done annually in all the centres. Fire October 2018. The work covered roles and responsibilities teams are established and drills are conducted. of management and the structure to co-ordinate health and safety within the Zoo. The following focus areas will Incident Management be addressed during the year 2019. No fatal incidents were reported during this reportable 23 • Review of health and safety committees period. • Process Risk assessment for NZG activities. Facilities Management

Training • SANBI enrolled and is registered with the South African Facilities Management Association (SAFMA) OHS Risk assessment workshop was conducted in the for facilities management for benefits such as following centres. professionalisation, accreditation, networking and • Harold Porter NBG; information sharing.

• Walter Sisulu NBG; • Personnel responsible for the management of • Kirstenbosch NBG; administration buildings and commercial facilities are • Hantam NBG; also enrolled as members of SAFMA and have access to specialised training and other resources. • Karoo Desert NBG; • Free State NBG; • Business continuity improvement has been another one of the highlights for the Pretoria National Botanical • KZN NBG; Garden where back-up electricity generators were • KZN Herbarium; installed. As part of the Business Continuity Plan (BCP), • Lowveld NBG; and this exercise will be rolled out to all SANBI Gardens.

• Thohoyandou BG. • Other Business Continuity measures will be the A health and safety workshop with management installation of reticulation tanks at the Pretoria National outlining their roles and responsibilities was conducted Botanical Garden as back-up for water shortages.

South African National Biodiversity Institute Programme performance Programme 2 SANBI manages South Africa’s network of 10 NBGs, 24 currently spread across seven provinces. The 10 gardens National Botanical Gardens combined manage over 7 400 ha of natural estate, as (NBGs) well as over 200 ha of landscaped areas comprising documented collections of living plants, with their Purpose associated biodiversity, for the purposes of conservation, Manage and unlock benefits of the network of national research, display and education. SANBI also manages the botanical gardens as windows into South Africa’s Thohoyandou Botanical Garden in the Limpopo Province, biodiversity. scheduled to become South Africa’s 11th NBG. A new NBG Strategic Objectives is also planned for the North West Province, according • A network of NBGs are managed and maintained; and to the National Gardens Expansion Strategy: 2016 to 2030. SANBI, through its NBGs, classified internationally • Nature-based tourism and recreational activities are as conservation gardens, will expand and strengthen strengthened in all NBGs to contribute to SANBI’s their role (as windows to South Africa’s biodiversity) to sustainability. provide a national footprint in nature-based tourism and Key performance areas showcase SANBI and South Africa’s biodiversity.

• Increase representation and display of indigenous The late DEA Minister, Dr Edna Molewa, published a plants in the living collections of SANBI’s NBGs and/or formal declaration notice of Farm 1505 (10.48 ha) as an the Millennium Seed Bank Partnership; extension to the existing Kwelera NBG. Notice No. 705 • Establish and operationalise new NBGs; was published in Government Gazette No. 41766 on 13 July 2018. The 10 ha land portion is planned to be used • Develop and maintain capital projects across SANBI’s as the landscaped/cultivated area of the Kwelera NBG. Ms NBGs; and Nomama Mei was appointed as the new Curator of the • Increase visitor number per centage through Kwelera NBG during the year. A Basic Assessment Report expanded tourism-related activities and events for proposed developments in the Kwelera NBG was in NBGs. completed and submitted to DEA, and an Environmental

Annual Report I 2018/19 Control Officer (ECO) appointed. Building plans for the International Advisory Council, as well as a conference Kwelera NBG were designed and approved during the of the Global Partnership for Plant Conservation (GPPC) year and are expected to be submitted and approved of which SANBI is a member. The goal of the conference by the Buffalo City Metro Municipality in 2019/20. New was to bring together plant conservation scientists, business plans for DEA-sponsored developments in policy makers and practitioners from around the world to the Kwelera and Thohoyandou botanical gardens were consider the future of plant conservation, and in particular submitted to DEA for approval. to develop ideas for a global plant conservation strategy for the post-2020 period. The results of the conference SANBI Gardens sadly lost several long-serving staff and the strategic workshops were shared with the members during the year, including its Kirstenbosch Convention on Biological Diversity (CBD) as a contribution Garden Curator, the late Philip le Roux (1955–2018), who from the GPPC and the plant conservation community passed away on 12 December 2018 following a fatal in general towards future plans for the Convention in cycling accident. the achievement of the 2050 Vision for Biodiversity and Following the receipt of good autumn/winter rains in the 2030 Agenda on Sustainable Development. The 2018, Hantam NBG experienced its best flower season in conference was supported by DEA, BGCI and Missouri its 10-year history in August and September 2018. Botanical Garden, US.

SANBI’s appointed contractor (Tswellapele Plants cc) SANBI’s Millennium Seed Bank Partnership (MSBP) completed their work with the National Department of team undertook an international trip to conduct and Tourism (NDT)-funded Sisulu Circle in the Walter Sisulu attend a seed conservation techniques training course National Botanical Garden. The NDT-funded Sisulu in northern Zambia. The training was conducted in Circle was launched by the Minister of Environmental conjunction with the Kew MSBP Coordinator for Africa Affairs (late Dr Edna Molewa) and Minister of Tourism, and the training personnel from Kew from 3–9 June 2018. Derek Hanekom, on 10 July 2018 in the Walter Sisulu The newly appointed SANBI-based MSBP staff benefited NBG. Tswellapele Plants received two South African greatly from the training. In addition to seed collecting Landscapers Institute (SALI) Gold Awards of Excellence techniques, they also learnt about conducting successful 25 for 2018 in the categories: Best Landscape Construction germination tests. The training also provided a platform with Design by Others, and in the category Specialised to establish and strengthen the plant conservation Landscape Construction. based partnerships and collaborations between the Work continued with the implementation of a business three African countries in the SADC region (South Africa, plan developed for the use of a generous private bequest Zambia and Mozambique). SANBI’s MSBP Coordinator, Mr left to Kirstenbosch NBG by the late Ms Joan Wrench. Livhuwani Nkuna, resigned from SANBI as from 31 August The initial set of projects approved for implementation 2018. Ms Victoria Wilman, based at Kirstenbosch, served using funds from the bequest in 2018/19 included (a) in an acting capacity as the MSBP Coordinator from 1 internal upgrades to the existing Gold Fields Education September 2018. Centre to become the Joan Wrench Learning Centre; Three new horticultural/estate management coordination as well as (b) sponsored transport for disadvantaged meetings were facilitated in the Conservation Gardens individuals (learners, senior citizens, disabled) to & Tourism Division during the financial year: (a) Kirstenbosch and the Joan Wrench Learning Centre; and Horticultural Peer Review (as a contribution towards (c) the establishment of a scholarship fund, known as the implementation of the Horticultural Career Ladder); the Joan Wrench Kirstenbosch Scholarship Fund, which (b) Horticultural Enrichment Forum (HEF; for SANBI has now been established by SANBI and used to provide horticulturists); and (c) Estate Managers Forum (for SANBI funding for scholarships and internships to previously Estate Managers). disadvantaged individuals (for garden-based students The combined number of system-generated visitors studying horticulture and nature conservation, as well as to all NBGs for the year totalled 1 413 974 which was education and research) to Kirstenbosch specifically. 16 per cent higher than the previous financial year The Conservation Gardens & Tourism Division (1 222 816). Visitor numbers for the financial year increased successfully hosted delegates for international meetings year-on-year in the following gardens: Free State, Karoo in Kirstenbosch in August 2018. The meetings included Desert, Kirstenbosch, KwaZulu-Natal, Lowveld, Pretoria Botanic Gardens Conservation International’s (BGCI) and the Walter Sisulu NBG.

South African National Biodiversity Institute The 32nd annual Garden Curators Week was held at YES Programme is an environmentally focused youth the Hantam NBG in September 2018 and a National development training programme that is funded by DEA. Interpretation Week and National Educators Week also It aims to recruit and train 130 unemployed youth per held during the year. year over a two-year period per province. Participants are part of the programme for one year, during which they Good progress continued in the implementation of receive accredited and non-accredited training and are SANBI’s DEA-funded Infrastructure Programme, with provided with mentored workplace integrated learning significant investment for improving and refurbishing opportunities. the organisation’s buildings (including offices, education centres, staff facilities, guest houses, and restaurants/ The Harold Porter NBG suffered structural damages to tea rooms) and related infrastructure (such as roads, wooden bridges, wooden walkways, benches and its pathways, parking areas, security infrastructure, bridges, irrigation network infrastructure during a veld fire that irrigation and sewerage systems), information technology swept through the garden on 11 January 2019. The infrastructure, as well as research equipment and vehicle natural in the mountain gorges and slopes recapitalisation. in the garden were burnt by the fast-moving fires. It is estimated that more than 12 800 hectares of vegetation Since the start of the three-year Infrastructure Programme were burnt during the 11-day fire in the Kogelberg and in 2013/14, 39 formal infrastructure and professional Steenbras Region that started on 31 December 2018. services-related tenders (valued at over R500 000 each) Emergency mechanical (irrigation pump and irrigation with a combined value of R145 310 146 were processed. pipes/sprinklers) and structural assessments (bridges) Of these, only 10 are still in implementation phase were conducted by professional engineers in January with a value of R2 395 712 remaining against contracts 2019. No damages were caused to the existing/new in progress. Since the start of the second three-year buildings in the garden, nor to the garden’s renovated/ infrastructure programme spanning the MTEF 2016/17 – restored concrete bridges and flood repair/mitigation 2018/19, 19 contracts over the value of R500 000 were infrastructure. signed with a total value of R123 957 049, of which 17 are 26 Botanic Gardens Conservation International (BGCI) still active and 33 below R500 000 with a total value of funded an arboriculture course for horticultural staff R5 290 786 of which six were completed in the financial from across SANBI’s gardens, including the NZG, in year. November/December 2018. The course, held in Pretoria The total value of contracts under the first DEA- NBG, was facilitated by two experienced and highly sponsored infrastructure programme (2013 to 2016) was skilled arboricultural professionals from the Royal Botanic R145 310 146. In addition, approximately R11 000 000 Gardens, Edinburgh, UK. was spent on vehicle recapitalization. Under the second A new species of long-tongued fly that occurs in the DEA-sponsored programme (2016 to 2019) the total Hantam NBG was named after the Garden Curator, value of contracts was R129 247 835. Aligned with SANBI’s Eugene Marinus. The description of the new species, mandate in NEMBA, new Education/Community Centres Prosoeca marinusi Barraclough sp. nov., was formally were completed for the Karoo Desert and Harold Porter published in the scientific journal Zootaxa in 2018. The NBGs as part of SANBI’s Infrastructure Programme. species is a narrow-range endemic and is restricted to the The DEA-approved Dawidskraal River Maintenance Nieuwoudtville area where it is the only, or main, pollinator Management Plan (MMP) for the Harold Porter NBG of at least four plant species (all regional endemics) in the was implemented with the construction of a new flood family Iridaceae that flower from August to September. mitigation berm and diversion weir in the Dawidskraal SANBI’s Career Ladder for Horticulturists continued to River. Support was also received from workers appointed be implemented during the year. Various garden staff under DEA’s Working for Wetlands Programme. Working participated in work-related training courses, SANBI’s for Wetlands also supported the employment of workers staff exchange programme, wellness day events and in the Free State, Walter Sisulu and KwaZulu-Natal NBGs to workshops through the year. assist with wetland and estate/catchment maintenance. Programme highlights Participants under DEA’s Youth Environmental Service (YES) Programme were hosted in several gardens through • Implementation of SANBI’s National Gardens agreements signed with programme implementers. The Expansion Strategy (2016–2030) continued with SANBI

Annual Report I 2018/19 managing the Thohoyandou Botanical Garden in the year for the first time in the organisation’s history. This Limpopo Province. Consultations needed to have accreditation resulted in SANBI as an organisation this garden declared as a national botanical garden receiving a 3-star NOSA grading during the 2018 continued with a range of government departments NOSA audit period. and the Mphaphuli community land claimants. • The combined number of system-generated visitors • Following the signing of an MoU between SANBI and to all NBGs for the year totalled 1 413 974, which was SANParks in May 2018, a Collaboration Agreement 16% per cent higher than the previous financial year was developed between SANBI and SANParks for (1 222 816). the proposed Richtersveld Desert Botanical Garden • The DEA-approved Dawidskraal River Maintenance earmarked to be developed as a demonstration Management Plan (MMP) for the Harold Porter NBG garden in Sendelingsdrift Camp in the Richtersveld was implemented with a new flood mitigation berm National Park, Northern Cape. and diversion weir established in the Dawidskraal • The Harold Porter, Karoo Desert, Kirstenbosch, River. Lowveld, Pretoria and Walter Sisulu NBGs all received • SANBI’s Sisulu Circle project, sponsored by the Certificates of Excellence on TripAdvisor as attractions National Department of Tourism, was launched by that consistently earned great reviews from travellers. the late Minister of Environmental Affairs (Dr Edna • SANBI successfully hosted an international conference Molewa) and Minister of Tourism, Derek Hanekom, of the Global Partnership for Plant Conservation (GPPC) on 10 July 2018 in the Walter Sisulu NBG. The and annual meeting of Botanic Gardens Conservation contractor, Tswellapele Plants, received two South International’s (BGCI) International Advisory Council African Landscapers Institute (SALI) Gold Awards of (IAC) at Kirstenbosch. Excellence for 2018 in the categories: Best Landscape • All gardens received NOSA (National Occupational Construction with Design by Others, and in the Safety Association) accreditation during the financial category Specialised Landscape Construction. 27

South African National Biodiversity Institute 28 Programme 3

BUILD THE FOUNDATIONAL Programme Highlights • Publication of the book Systematics of Drimia Jacq. BIODIVERSITY SCIENCE (Hyacinthaceae, Urgineoideae) in southern Africa, Purpose Strelitzia 40 by Prof. John Manning (SANBI) and Peter Goldblatt, provides detailed taxonomic information The purpose of this programme is to ensure that on an important floristic element in southern Africa foundational information on species and ecosystems in which 70 species, with 61 endemic to the region, is generated and collated. This involves describing and are revised and recognised. In this book, eight new classifying species and ecosystems in South Africa. species are described: D. barbata, D. ciliolata, D. Objective Statement decipiens, D. juncifolia, D. khubusensis, D. monophylla, and D. schizobasoides all from the Greater Cape • A complete inventory of South Africa’s biodiversity is Floristic Region, and D. vespertina that spans into developed and maintained. northern Namibia and southern Angola. The account Key Performance Areas includes full species descriptions, notes on ecology, distribution maps and identification keys to the • Number of herbarium specimens digitised; sections and species, with drawings and illustrations • Number of species (animals and plants) occurrence for most species to aid in identification. data generated; • SANBI was requested by the Department of Science and Technology to coordinate a three year project on • Number of species (animals and plants) pages/ the National Network of Biodiversity Biobanks to the descriptions developed; and value of R11.8 million. The project aims to develop a • Number of publications (scientific and popular national inventory of biodiversity biobanks in South articles) generated. Africa and make this information widely accessible,

Annual Report I 2018/19 assess the data management systems currently used • 4 826 species pages were compiled against the both nationally and internationally and to identify annual target of 4 200, and this includes descriptive and initiate the implementation of an appropriate and classification information for animal species national system. This will also lead to the development (1 026) and plant species (3 800). This exceeds the of national guidelines and standards for collecting, annual performance by 15%. preparing and managing biodiversity biobank • The Division published 27 research papers in samples (global standards and best practices). peer-reviewed ISI journals accredited by the • The National Advisory Council for the DST funded Department of Higher Education. With 18 research project Natural Sciences Collections Facility (NSCF) staff, this performance translates to an average of was launched to provide guidance, advice and 1.5 papers per researcher. In addition, 1 book, 19 assistance relating to planning and implementation popular articles, and 2 theses (MSc and PhD) were and ensure that the impact of the NSCF is maximized published. by facilitating appropriate partnerships and links. • Updates were made to the Plant Checklist The Advisory Committee is not a decision-making four times with 15 000 records updated for structure but it can identify risks and concerns and angiosperms, and once for the Animal Checklist make recommendations and submissions to the other with 3 200 records updated mainly for frogs, mites, governance structures such as the Co-ordinating freshwater fish and birds. Committee, or the SANBI Board. • Collecting trips were undertaken to Limpopo, • The national Research Foundation (NRF) has rated and Mpumalanga, Gauteng, KwaZulu-Natal, Eastern awarded an Y2 research category to Dr Marianne le Cape, Northern Cape, Free State and North West Roux – a prestigious rating in recognition of excellent provinces with 1 125 plant specimens collected research track record of a PhD researcher younger as part of specialist taxonomic group collections, than 35 years old. as well as the expansion of SANBI collections to • A partnership with BirdLife South Africa has led to the ensure adequate coverage. implementation of a Rural Citizen Science project on • Over ten thousand specimens (10 846) were 29 bird identification in selected rural areas of Mopani and scanned/digitised in the three SANBI herbaria and Sekhukhune Districts, Limpopo Province. This project images added to the database. The three herbaria contributes to biodiversity records and monitoring by collectively received 625 visitors, dispatched mobilising occurrence records for birds to feed into 1 635 specimens to 36 institutions nationally and decision-making processes such as Environmental internationally. Impact Assessments and policy development and/or • 35 680 herbarium records on database were updates. verified for accuracy of information and quality • The modernisation (re-arrangement and curation) controlled based on curation standards. of 50 000 records within the SAM collection (about Skills and human capacity development half the collection) in the Compton Herbarium was completed. This is a historical collection and is the • Ms Natasha Visser (student) graduated with an MSc oldest herbarium collection in southern Africa. These degree in Botany (awarded with distinction) at the collections can now be imaged for electronic loans University of Johannesburg. She was supervised and for digitisation. by Dr M.M. le Roux.

• The Still Bay Herbarium in the Western Cape was • Mr L.A. Papo graduated with an MSc degree gifted to SANBI for incorporation into the Compton in Botany in June 2018 at the University of Herbarium. Johannesburg.

Programme Performance • Dr Anifat Bello graduated with her PhD in Plant • Over 56 000 biodiversity records were quality Systematics (supervised by Dr A. Magee from controlled and added to SANBI databases. These SANBI, Prof. J.S. Boatwright from the University include 21 048 records for plant specimens in SANBI’s of the Western Cape and Prof. M. van der Bank herbaria, and 35 018 animal specimens in museums from the University of Johannesburg). Dr Bello or based on observations. The annual performance revised the large daisy genus Pteronia recognising target was exceeded by 66 records. 76 species of which five were described as new.

South African National Biodiversity Institute Her thesis also used DNA phylogenetic analyses to • Dr M.M. le Roux participated as a member of the explore phylogenetic relationships, biogeography local organizing committee and scientific committee and divergence times. for the Global Partnership for Plant Conservation meeting held in Cape Town, 28–30 August; attended • Four early career scientists published their research and presented a poster on the e-Flora SA project and papers, including those as first authors. a presentation on Target 1, the World Flora Online, Visits to and from the Herbarium at the Global Partnership for Plant Conservation. International collaborative publication from cross- • Prof. Emily B. Sessa and 2 students (University of cutting research on the brambles (genus Rubus) in Florida) visited the National Herbarium on 8 and 9 the . Research clarifies taxonomy, May 2018. invasion potential, hybridisation, ploidy levels and • On 25 April 2018, the National Herbarium hosted the ecology of both native and invasive species. Two delegates of NSCF Delegates tour (25 delegates). alien species are reported for the first time, as well as hybridisation between native and invasive species, • Compton Herbarium hosted 137 BSc 2nd year and as well as clarification of native taxa previously BSc Hons. students from the University of the Western considered introduced/invasive. Cape for a tour of the herbarium which forms part of their course on Higher Plants Diversity. • Ten staff members, including six postgraduate students presented their research at the annual • Prof. E. Knox from Indiana University (USA) visited the conference of the South African Association of Compton Herbarium from 19–29 October to study Botanists. the Lobelia and Cyphia collections. • Four National Herbarium staff members (Dr Hester Courses and/or conferences attended Steyn, Ms Tandiwe Nkonki, Mr Mduduzi Nkwanyana • Ms Ashton Welcome attended the SEB conference and Mr Alpheus Mothapo) attended SANBI-GBIF in Wisconsin, USA; featured in the Public sector Fitness for Use of Biological Data Workshop, at management magazine - June (youth) issue, as Kirstenbosch, 27–29 November 2018. 30 well as attending the IPUF Conference in July 2018 Other performance highlights (Oudtshoorn). • A new plant species was described with its scientific • Research Staff attended a Taxonomy and Phylogeny name derived from Setswana by staff at the Compton workshop, 18–20 June 2018. Herbarium in collaboration with the National • Mr M.A. Mothapo represented the National Herbarium Museum. The species epithet rapaletsa is derived from at the Moutse West Career Expo in Limpopo Province the Setswana word for flat and refers to the distinctive on 4 May 2018. trailing growth habit of the new species.

• Mr M.S. Mothogoane and Ms T.S. Manyelo attended a • The Rural Citizen Scientist Birding project was featured Science Writing course, 11–13 July (Kirstenbosch). in the Southern African BirdLife magazine Nov–Dec 2018 edition. • Ms. Mbali Mkhize attended the 45th Annual Research • SANBI Biosystematics Management participated in Symposium on the Management of Biological NSCF Change Management Training, 8-11 May 2018. Invasions in southern Africa (4-6 July 2018); attended the SANBI-BID Strategic Planning Workshop in • Completed the imaging of Compton Herbarium Limpopo (1-3 July 2018). Scrophulariaceae collection for digitization (>5 000 specimens were digitised for this family). • Ms Caroline Mashau attended a grass training/ workshop by Maria Vorontsova at Kew Herbarium, • Mr. L. Magoswana was awarded an FBIP grant UK (3–13 July 2018); attended the 5th Alien Grass (R100 000) for his studies in 2019 on the succulent Working Group meeting SANBI, Kirstenbosch (26 and genus Othonna. 27 September 2018); conducted a Grass ID course • Mr Luvo Magoswana (scientist at Compton at ARC Roodeplaat, GSSA 53rd Conference, with Herbarium) submitted a large important paper to 25 participants (26 July 2018); conducted a Grass the journal Annals of the Missouri Botanical Garden. ID course at University of Cape Town (UCT) with This manuscript is the major output from his MSc 27 participants (25 September 2018). dissertation (graduated with distinction in 2018).

Annual Report I 2018/19 Programme 4 Biodiversity assessment and comprehensive assessments of the state of biodiversity and to strengthen the knowledge base that informs 31 knowledge generation SANBI’s contributions to policy and decision making relating to managing biodiversity, as well as optimising Purpose its benefits to people. The priorities for the programme Assess, monitor and report on the state of biodiversity are derived from various sources that identify issues with and increase knowledge for decision making including a high relevance to policy makers, such as the National climate change. Environmental Management: Biodiversity Act (NEMBA), Strategic Objectives the National Biodiversity Strategy and Action Plan (NBSAP), the National Biodiversity Framework (NBF), the • New knowledge created to inform assessments and Research, Development and Evidence Framework for the decision making relating to biodiversity; and sector, government delivery agreements in the MTSF, and • The status of biodiversity, including biological other national priorities (e.g. climate change response, invasions, is systematically assessed to determine the Biodiversity Economy Strategy, responses to land current state and trends, and to identify risks or degradation). benefits to the environment and people. Science Publications Key Performance Areas SANBI undertook to publish 85 papers in journals • Research; accredited by the Department of Higher Education. • Biodiversity assessments; and We achieved slightly more than the target (87 papers) and have therefore maintained SANBI’s publications • Monitoring. under Programme 4 at about the same level achieved Programme Performance over the past few years. Productivity is slightly down This programme builds on foundational biodiversity from 2016/2017 but that year was exceptional due to a information (Programme 3) through additional special issue on biological invasions to which many SANBI research, assessment and analysis. The aim is to deliver authors contributed. An encouraging trend has been an

South African National Biodiversity Institute increase in higher impact publications with a greater SANBI has also successfully secured funding for smaller number of publications in journals with impact factors scale collaborative projects, such as the Deep Forests >2. The papers provide a wide coverage of biodiversity project (see highlights) funded by the NRF, and is part scales (genes, species and ecosystems) and provide of another GEF project looking at the value chains foundational information as well as applied and strategic linked to the development of plant-based products. knowledge and evidence to inform policy and decision SANBI’s contribution will be to focus on the application making. of certification schemes to achieve global biodiversity benefits and this will expand on other projects where Support on invasive species SANBI has been investigating certification schemes in the Biological invasions pose a major risk to biodiversity, as context of the wildlife industry. well as the goods and services that people depend on. The status of biodiversity SANBI supports biosecurity activities undertaken by DEA through developing projects on priority invasive The main deliverable was the National Biodiversity species, compiling species-specific management Assessment 2018, with an assessment at genetic, species and ecosystem levels. The NBA headline indicators of plans and undertaking risk assessments. SANBI meets threat status and protection level are applied to both annually with DEA to determine priorities for the year. species and ecosystems across the terrestrial, inland The main focus for project and management plans is on aquatic, estuarine and marine realms. What is new in NBA Category 1a species that are prohibited and must be 2018 are separate indicators for South Africa’s coastal eradicated in compliance with sections 75(1), (2) and (3) zone and sub-Antarctic territory. The NBA 2018’s goals of NEMBA. of improving ecosystem classification and mapping, SANBI also manages a process for risk assessment introducing a species protection level indicator and potential genetic diversity indicators were all met. and analysis. Risk assessments aim to evaluate the risks associated with species that have already been As part of the NBA, SANBI led the large-scale assessment introduced or those that people may want to bring of threat status for 11 taxonomic groups spread across the 32 into the country. This provides a basis for managing the terrestrial, inland aquatic, marine and estuarine realms. risk or for regulating the species. In accordance with an These assessments were conducted in collaboration with species experts based at academic institutions and in agreement with DEA, 65 risk assessment documents were provincial conservation agencies. For each taxon group, submitted to assist decision making by Government as assessments were compared to assessments conducted required by NEMBA and its Alien and Invasive Species between 1996 and 2010 in order to determine how regulations. These assessments evaluate the likelihood species status has changed over time. Trends in species and consequences of given alien taxa or species causing status were measured using the Red List Index (RLI), an negative impacts on biodiversity, ecosystem services and index that has been developed to report on the status of other socio-economic impacts. the worlds’ species under the Sustainable Development Goal SDG 15.5.1. SANBI also developed a new indicator Large cooperative projects –the Species Protection Level Indicator (SPL), which The target for 2018/2019 was to initiate at least one measures progress towards achieving a population new cooperative project with a focus on wildlife trade persistence target for each species. The Protection Level and the biodiversity economy. SANBI has been working Index has also been used to report to the Convention with DEA, SANParks, the Peace Parks Foundation, WWF, of Biological Diversity (CBD) for Aichi Target 11 on the the South African Wildlife College and others to develop ecological representation of South Africa’s Protected Area a large project on wildlife trade. The big success in this network. The marine component of the NBA collated 31 financial year was the approval of funding by the GEF pressure datasets, and included a section on the benefits for a project where SANBI is responsible for one of the of marine biodiversity. In addition, this NBA trialled the three components focusing on strengthening oversight new International Union for the Conservation of Nature of wildlife trade. The implementation of this project will (IUCN) Red List of Ecosystem criteria, and was able to start in the next financial year but, as part of SANBI’s co- track trends in species status and habitat loss for the first funding, we have appointed two post-doctoral fellows time. These innovations place South Africa at the leading to study aspects of wildlife trade. The post of a project edge of national assessments globally, and result in manager has been approved and the recruitment process SANBI scientists being invited to share their knowledge is underway. at international fora.

Annual Report I 2018/19 The products of the NBA 2018 include seven technical Africa’s new seamless map of ecosystem types, paves reports, a technical synthesis report, datasets and the way for improved assessment and planning across all supplementary materials for use by scientists; as well realms and all of South Africa’s territory; while the use of as several popular outputs such as summary flyers. the global standards for the national Red List assessments Additional products emanating from the NBA will be for both species and ecosystems strengthens South finalised and released during 2019. For example, South Africa’s international reporting ability.

(a)

33

(b)

(a) Seamless map of South Africa’s terrestrial, marine and estuarine ecosystem types. (b) The new marine ecosystem types surrounding Prince Edward Islands. Rivers and inland wetlands are an overlay on this map.

South African National Biodiversity Institute NON-DETRIMENT findings and support for to the CITES Conference of the Parties. Proposals to the Scientific Authority of South Africa exempt finished products ofAloe ferox from regulation under CITES, and to increase South Africa’s export quota The Scientific Authority of South Africa is the scientific for black hunting trophies, were prepared body linked to the implementation of the Convention on for submission to the 18th Conferences of the Parties International Trade in Endangered Species of Wild Fauna to CITES. CoP18 species listing proposals with major and Flora (CITES). implications for the country were also reviewed and draft SANBI provides the Secretariat and scientific support for positions for South Africa developed. the Scientific Authority of South Africa. As part of this role, Programme Highlights SANBI coordinates the process to develop non-detriment findings for species in trade. An NDF follows a specified • The Species Protection Level Indicator developed by process to compile expert knowledge and then evaluate SANBI shows that South Africa’s birds and are the potential risk to wild polulations associated with currently well protected while plants, freshwater fish trade based on biological, management and regulatory and butterflies have high numbers of species that are evidence. The NDF’s are approved by the Scientific not well represented in the current Protected Areas Authority, published for additional evidence, amended estate. on the basis of new evidence. The process and status of • South Africa’s first Red List Index has been included in all the NDFs is developed and monitored by the Scientific South Africa’s 6th Country Report to the Convention Authority and an annual update report is approved by the on Biological Diversity to report on progress towards Scientific Authority. The NDFs completed in 2018 included Aichi Target 12 (Species Extinctions Prevented), as Aloe ferox, black rhinoceros and , which well as South Africa’s response to the Sustainable were submitted to the Minister for gazetting for public Development Goals prepared by Statistics South input. Africa. The implementation of NDFs often requires additional • The 2018 SA assessment went online on the work from SANBI to help mitigate the risks associated new IUCN website at the end of 2018. with trade or scientific support for regulating trade. Cycad • Cabinet announced that South Africa will proclaim 20 34 nurseries were audited to determine whether they met new Marine Protected Areas (MPAs) advancing ocean the criteria for artificially propagating cycads. Similarly, protection from 0.4 to 5%. This is the culmination of the Scientific Authority approved criteria to guide the 13 years of work to expand MPAs into the offshore CITES registrations of white rhinoceros captive breeding environment with SANBI playing a key role in the operations. A primary function for SANBI is to implement technical work to design this new network. research projects to provide the scientific evidence base • The new African Coelacanth Ecosystem Project for recommendations from the Scientific Authority. The (ACEP) Deep Forests was initiated with new students South monitoring project has generated involved in researching potential Vulnerable Marine leopard density trend data for 17 sites distributed across Ecosystems. New international collaborations and four provinces, which will be used to inform leopard training on deep water coral taxonomy and ecology hunting quotas, while the first research report on South were a key highpoint. Africa’s lion bone trade provides scientific evidence to inform decisions around the export quota for captive • Prof. John Wilson and Prof. Krystal Tolley both received produced lion skeletons. Forensic methods to support a National Research Foundation (NRF) rating of B2, enforcement and compliance in relation to wildlife trade a category of researchers ‘who enjoy considerable are also being developed. A set of microsatellite markers international recognition by their peers for the high for African grey parrots was successfully confirmed for quality and impact of their recent research outputs’. use as a molecular tool for parentage analysis, while the The NRF rating is valid for five years. potential utility of stable light isotopes to distinguish • Prof. Neil Crouch was awarded the Botanical Society’s between captive bred and wild caught sungazer lizards Marloth Medal, which is awarded to any professional is being explored. Innovative online forensic research has or amateur botanist who has produced significant uncovered the widespread exploitation of South Africa’s popular literature to stimulate public interest in the unique succulent flora for international trade, further indigenous flora of southern Africa. corroborated by field studies undertaken for six highly • Prof. John Donaldson was elected co-chair of the traded Euphorbia species. global assessment of sustainable use of wild species Ultimately, much of the work of SANBI in support of the by the Intergovernmental Panel on Biodiversity and Scientific Authority also informs South Africa’s proposals Ecosystem Services (IPBES).

Annual Report I 2018/19 Programme 5 35 PROVIDE Biodiversity policy • Become the authoritative source for data, knowledge and information on South Africa’s biodiversity; advice, access to biodiversity • Ensure the best available biodiversity science informs information; and support national and international policy processes; and for climate change • Vulnerable communities have increased resilience to climate change as a result of direct access climate adaptation change adaptation investments.

Purpose Key Performance Areas

The primary focus of this Programme is to facilitate the • Tools to support management and conservation of translation of South Africa’s biodiversity science into biodiversity developed and applied; policy and decision making. We do this in the context • Access to biodiversity data, information and of South Africa’s urgent development imperatives, using knowledge provided; biodiversity science to understand how the management • Scientific advice to support national and international and sustainable use of healthy intact ecosystems can policy processes provided; and maintain, enhance and deliver services to society. • Policy support on climate change adaptation provided The Programme provides free access to biodiversity to inform national and international decision making. information and scientific knowledge to a wide audience Programme highlights through the Biodiversity Advisor online platform. • Launch of the $7.2 million Ecological Infrastructure Objective statements for Water Security project, funded by the Global • Reduce loss, protect, restore and unlock benefits from Environmental Facility (GEF) and implemented by biodiversity assets and ecological infrastructure; the Development Bank of Southern Africa (DBSA) in

South African National Biodiversity Institute collaboration with the Department of Environmental science. Municipalities have been supported in integrating Affairs (DEA) and SANBI. biodiversity assets and ecological infrastructure into their • Fifth-year anniversary celebration of the uMngeni planning and decision making. SANBI has influenced Ecological Infrastructure Partnership which focuses on international agendas for policy, research and monitoring, the role ecological infrastructure plays in improving through a range of African and global engagements. water security in the greater uMngeni catchment. Tools to support management and • Finalisation of the National Biodiversity Stewardship conservation of biodiversity Guideline, providing a comprehensive approach to implementing biodiversity stewardship across the There are various mechanisms by which science is country. translated into relevant information and practical advice • Secured funding for several pilot projects under the that can be used to influence policy and development, Ecological Infrastructure Challenge Fund which will such as convening learning platforms, producing demonstrate the value of ecological infrastructure information resources and showcasing demonstration and create jobs. projects. The tools produced through these mechanisms • Released an Assessment Report on Natural Capital are usually developed in collaboration with partners and Accounting in South Africa as part of a two-year global intended users, and their uptake is supported through project on Natural Capital Accounting & Valuation of training, communities of practice and mainstreaming. Ecosystem Services. Ecological infrastructure for water security • Initiated Phase 2 of the National Biodiversity SANBI hosted the National Indaba on Ecological Information System project that will develop a Infrastructure for Water Security. The event was funded centralised web-based infrastructure to integrate by the Department of Science and Technology (DST) South African biodiversity information. and held in partnership with Department of Water • Completed the competition phase of the African and Sanitation, DEA, Water Research Commission and Biodiversity Challenge with Ghana winning the 36 the DBSA. The Indaba showcased the concept of how Gold Medal. The teams from the four participating investing in ecological infrastructure can improve water countries published 110 534 biodiversity data records during the competition. security across sectors, and shared practical lessons from collaborations aimed at strengthening water governance • Initiated the process to develop two first stage concept note proposals for submission to the Green at the catchment level. Climate Fund in 2019 and was re-accredited with the The Ecological Infrastructure for Water Security (EI4WS) Adaptation Fund for a further five-year period. project was officially launched at theN ational Indaba on Programme performance Ecological Infrastructure. The Honourable Gugile Nkwinti,

Programme 5 has demonstrated the value of biodiversity former Minister of Water and Sanitation, together with assets and ecological infrastructure for unlocking Mr Shonisani Munzhedzi, the Deputy Director General development opportunities and delivering social- for Biodiversity and Conservation from DEA, and Ms economic benefits. It has contributed to the national Nana Magomola, the former SANBI Board Chair, officially development agenda by, for example, supporting launched the five-year, $7.2 million GEF-funded project the streamlining of development decision making, which is being implemented by the DBSA, in collaboration demonstrating the potential of ecological infrastructure with DEA and SANBI. It aims to enhance organisational for water security, providing direct access to finance for capacity and investment in ecological infrastructure to climate change resilience, and stimulating biodiversity- improve water security in two demonstration catchments, based job creation. It has achieved this by providing the Berg–Breede and the greater uMngeni catchments. science-based tools and policy advice that promote the integration of biodiversity into other sectors, especially To strengthen coordinated action on ecological those that impact on biodiversity. It has also provided infrastructure for water security and bring attention support to DEA and provincial conservation authorities in to SANBI’s work on this, SANBI hosted a high-level their development and implementation of biodiversity- networking event at Kirstenbosch, with the Executive related policy and legislation, based on the best available Director of the UN Environment as the guest of honour.

Annual Report I 2018/19 SANBI provides secretariat support to the uMngeni Africa conference, and presented on the catchment- Ecological Infrastructure Partnership (UEIP) which focuses based ecological infrastructure learning platforms on the role of ecological infrastructure in improving water funded by the DST, with particular focus on the rangeland security in the greater uMngeni catchment. The UEIP stewardship and restoration approach pioneered by the held its five-year anniversary celebration, which was an uMzimvubu Catchment Partnership. opportunity to reflect on and appreciate the collaborative water governance efforts of the UEIP over the past five Natural resource management years. SANBI, in partnership with DEA Natural Resource Management (NRM), held two Natural Resource SANBI participated in a number of events to share lessons and experiences on investing in ecological infrastructure Management Organisational Learning workshops. These to improve water security, including the National Wetland platforms bring together directors, regional managers and Indaba and the KwaZulu-Natal Conservation Symposium. other officials to enhance organisational communication, SANBI convened a side event at the DST Global Change build internal human capacity and improve interaction Conference in Limpopo, which provided an opportunity between NRM practitioners. to share lessons from the uMngeni, uMzimvubu, SANBI, in partnership with DEA-NRM, convened four uMhlathuzi, Blyde, Berg–Breede, and Tsitsa catchments regional Management, Research and Planning Forums on how the delivery of ecosystem services can improve (MAREPs). These learning platforms aim to share people’s livelihoods at catchment scale. It also convened, information between natural resource managers, with funding from DST, an ecological infrastructure practitioners, researchers and planners. The focus of the ‘research into practice’ platform in the Berg–Breede regional MAREPs was on ‘social-ecological systems’ and catchment. Information about the EI4WS project was presented at the inaugural Environmental Engineering adopting a social learning approach to better engage Conference hosted by the South African Institute of Civil with various natural resource management partners. Engineers, providing opportunity to explore collaboration SANBI, in partnership with the Institute of Natural with other sectors including environmental, engineering, Resources (INR), hosted a workshop to support the 37 local government and the water sector. development of the KwaZulu-Natal NRM Strategy and Ecological infrastructure and agriculture Implementation Plan. This DEA initiative is aimed at SANBI conducted several engagements with stakeholders coordinating efforts of multiple actors to control invasive in the agriculture sector to improve understanding of alien plants, and rehabilitate riparian areas, wetlands the linkages between ecological infrastructure and and related ecological infrastructure. The purpose of agriculture. In partnership with the Department of the workshop was to share plans from stakeholders Agriculture, Forestry and Fisheries (DAFF), SANBI facilitated and identify opportunities for coordination of NRM the stakeholder process of developing the Bankrupt investments across the province. Bush Management Strategy to provide solutions for the Ecosystem-based adaptation management of this problematic bush-encroaching plant that threatens biodiversity and impacts SANBI co-chaired, with DEA, two meetings of the agriculture. SANBI and DAFF also convened a law Ecosystem-based Adaptation (EbA) Coordinating enforcement training workshop on the Conservation of Steering Committee. This steering committee oversees Agricultural Resources Act (Act 43 of 1983). This event was the implementation of the strategic framework and hosted in partnership with the Department of Justice and overarching implementation plan for the EbA programme Constitutional Development to capacitate DAFF officials of work in South Africa. This work aims to demonstrate how responsible for regulatory compliance and enforcement well-functioning ecosystems can reduce vulnerability for the protection and sustainable use of natural resources. and build resilience to climate change. At the Grassland Society of Southern Africa congress, SANBI convened a workshop that aimed to strengthen SANBI participated in the national stakeholder workshop ongoing engagement between the agriculture and for Action Plan Development, Climate Change Adaptation biodiversity sectors and demonstrate the value of and Ecosystem-based Priority Areas Mapping. The ecological infrastructure in agricultural landscapes. SANBI workshop was part of the process to operationalise the also participated in the Land Rehabilitation of Southern overarching implementation plan for EbA in South Africa.

South African National Biodiversity Institute SANBI co-hosted the International Ecosystem-based SANBI convenes the Biodiversity Stewardship Technical Adaptation (EbA) community of practice workshop with Working Group, which leads the technical, strategic and the Gesellschaft für Internationale Zusammenarbeit (GiZ), operational aspects of biodiversity stewardship in South which included a training session on policy advice for Africa. The working group collaboratively developed the mainstreaming EbA. The event brought together the National Biodiversity Stewardship Guidelines, which serve diverse perspectives of EbA practitioners from around as a best practice implementation guide for biodiversity the world, including South Africa, Vietnam, Mexico, India, stewardship across the country. The working group Thailand, Peru, Kenya, Mali, Philippines, Germany and included the first training of its kind in South Africa on the Colombia. legal aspects of biodiversity stewardship and declaration of protected areas. Biodiversity and Land Use project The inaugural meeting of the Biodiversity Stewardship The $8.2 million GEF-funded Biodiversity and Land Use Legal Reference Group was held. The focus of the (BLU) project is led by SANBI and works in partnership with meeting was on addressing legal issues related to four district municipalities, Ehlanzeni, uMgungundlovu, biodiversity stewardship, including the declaration Cape Winelands and Amathole. The project has two and regularisation of protected areas, as well as their components through which it enhances streamlined management and financial sustainability. It was environmental decision-making, protects critical composed of legal representatives from national and biodiversity areas and improves the management of land. provincial government, as well as from non-governmental Supporting biodiversity stewardship organisations. SANBI, in partnership with DEA and other partners, SANBI, together with BirdLife South Africa and the convened the National Biodiversity Stewardship Endangered Wildlife Trust, co-hosted a national workshop Conference. A wide range of stakeholders were on conservation servitudes. Conservation servitudes represented including community representatives, fall within the ‘Conservation Areas’ category of the national and provincial government, non-government biodiversity stewardship hierarchy. The purpose was to 38 organisations, academics and private consultants. The create an understanding of conservation servitudes, how conference provided an opportunity to find synergies and when they should be applied and to present the between biodiversity stewardship and land reform, findings from a legal review that was conducted. the wildlife economy and working with communal landowners. Supporting environmental management and land-use planning SANBI, together with its partners, DEA and the Department SANBI is implementing the Ecological Infrastructure of Land Reform and Rural Development, also convened Challenge Fund (EICF), which aims to increase resources a trilateral meeting for the Land Reform and Biodiversity allocated to biodiversity management and job creation Stewardship Initiative. through ecosystem restoration and maintenance South Africa’s fiscal benefits for biodiversity stewardship at municipal level. The diverse set of pilot projects work, being implemented in partnership with Birdlife will demonstrate how well-functioning ecological South Africa, aims to strengthen and implement infrastructure can deliver benefits to communities and biodiversity stewardship tax incentives. This value of work support built infrastructure within municipalities. SANBI has been recognised in multiple ways, including listing on finalised an agreement with the Table Mountain Fund to PANORAMA Solutions for a Healthy Planet as an example implement EICF projects in the Cape Winelands District. of an inspiring, replicable solution for conservation and Funding has also been approved for the Mthinzima sustainable development. It was also featured as a case Rehabilitation Project in uMngeni Local Municipality, study for the Biodiversity Finance Initiative (BIOFIN) South which involves the rehabilitation of wetlands upstream of Africa, and in the IUCN’s Privately Protected Area Best Midmar Dam. A total of 45 jobs will be created in these Practice Guideline, as well as the UNDP’s Country Review pilot projects. of South Africa. The fiscal benefits work received a special SANBI supported DEA in the development of a series of commendation at the International PathfinderA wards biodiversity protocols which will be implemented as part 2018, presented at the 14th Conference of the Parties to of DEA’s online Environmental Impact Assessment (EIA) the Convention of Biological Diversity (CBD CoP) in Egypt. Screening Tool. These protocols will articulate the steps

Annual Report I 2018/19 to be followed when developers want to develop on SANBI also conducted a range of work relating to biodiversity land that has priority biodiversity. SANBI developed the offsets, which are a last resort measure to remedy the Terrestrial and Aquatic Ecosystem Protocols. negative impacts of development. SANBI presented on biodiversity offsets at the National Biodiversity and SANBI coordinated the development of the Minimum Requirements for Environment in Spatial Development Business Network Indaba. In collaboration with the INR, Frameworks (SDFs) document. This document will set SANBI hosted a workshop on coordinating biodiversity out what environmental aspects municipalities need to offsets in KwaZulu-Natal, attended by representatives of include in their SDFs to safeguard their biodiversity assets provincial government, conservation agencies and NGOs. and ecological infrastructure. The workshop initiated a process towards more effectively integrating biodiversity offsets into EIAs and other To enhance streamlined environmental decision making, decision-making processes in the province. SANBI also the BLU project has a strong focus on coordinating co-hosted a training workshop to introduce biodiversity capacity building sessions. Two training workshops were offsets, provide a context for their use and give guidance held in Pretoria (in collaboration with DEA) and KwaZulu- on their design and implementation. The training was Natal, which introduced provincial and municipal officials attended by government officials, environmental lawyers, to the concept of Critical Biodiversity Areas, Ecological environmental assessment practitioners, biodiversity Support Areas, ecological infrastructure and how these specialists and NGOs. SANBI staff co-authored a paper can be better incorporated into Environmental Impact biodiversity offsets which won the 2017 award for best Assessments (EIAs) and land-use planning. In partnership paper published in the Impact Assessment and Project with the uMgungundlovu Stakeholder Forum, BLU built Appraisal journal. capacity among Ondlunkulu (Amakhosi’s wives) on issues of Integrated Environmental Management. In partnership Natural Capital Accounting with the uMngeni Resilience Project, BLU built capacity Natural Capital Accounting provides a framework for among Community Development Workers from the measuring and tracking over time the contribution 39 Department of Cooperative Governance and Traditional of healthy ecosystems to social and economic goals. Affairs on climate change and ecological infrastructure. It provides a tool for national reporting on the global SANBI received approval to include Biodiversity for Sustainable Development Goals (SDGs). Development Sustainable Development, an EIA training programme, of accounts for ecosystem assets and ecosystem services into the capacity building programme of the International links closely with SANBI’s mandate to monitor and report Association for Impact Assessment (IAIA) South Africa. The on the state of South Africa’s ecosystems. SANBI is playing training programme has been developed for government a lead role nationally and globally, thorough which South EIA review staff, Environmental Assessment Practitioners Africa’s experience is informing the development of a and specialists, to better understand the minimum global standard for ecosystem accounting. requirements for biodiversity information and how this Statistics South Africa (Stats SA) and SANBI are currently biodiversity information should be considered in decision co-leading a two-year project on Natural Capital making. SANBI also attended the 2018 IAIA conference, Accounting & Valuation of Ecosystem Services, in which where it presented on the use of Section 24 (2A) of the South Africa is one of five participating countries along National Environmental Management Act (Act 107 of with Brazil, China, India and Mexico. The project is led 199) to protect certain Strategic Water Source Areas. globally by the United Nations Statistics Division and UN SANBI participated in the International Society of City Environment, with funding from the European Union. and Regional Planners Conference in Norway. Under A suite of natural capital accounts are currently being the theme ‘Cool Planning’, the conference brought produced as part of this project, including ecosystem and together urban planners to discuss how cities can species accounts. As part of this project, SANBI together better prepare for the impacts of climate change. SANBI with Stats SA released an Assessment Report on Natural presented on integrating climate change resilience into Capital Accounting in South Africa, which will feed into spatial development tools in South Africa through the the development of a national strategy for Natural Capital development of CBA maps. Accounting over the course of 2019.

South African National Biodiversity Institute SANBI, together with Stats SA and DEA, biodiversity planning. A key consultation session represented South Africa at several was held on the revised threat status assessment for global events related to Natural Capital terrestrial ecosystems undertaken as part of the National Accounting: Biodiversity Assessment 2018.

• The 3rd Forum of Experts in Experimental Ecosystem SANBI published and disseminated a factsheet on Using Accounting, held in New York, aimed to advance CBA Maps to support land-use planning and decision- the theory and practice of ecosystem accounting. making. CBA Maps are maps of Critical Biodiversity Areas The forum was co-hosted by the United Nations, (CBAs) and Ecological Support Areas that provide a spatial World Bank and European Union, with 25 countries plan for ecological sustainability. The factsheet describes represented. SANBI presented the technical aspects what CBA Maps are, how they are developed and how of South Africa’s national river ecosystem accounts, they should be used. as one of the only countries to have developed such CAPE Legacy project accounts. SANBI, together with about 60 partners, launched the • The 3rd Forum on Natural Capital Accounting for CAPE Legacy project. CAPE (Cape Action for People and Better Policy, convened jointly by the United Nations the Environment) was established nearly 20 years ago and World Bank was held in Paris, with the theme to conserve and restore the internationally renowned being the role of Natural Capital Accounting in known as the Cape Floristic Region. improving decision making on climate change and The CAPE Legacy project aims to conduct a participant- biodiversity. SANBI presented South Africa’s country driven evaluation of the past 20 years of CAPE, to reflect on experience of Natural Capital Accounting as a tool for the legacy of CAPE partnerships, explore what transpired mainstreaming biodiversity. and document the lessons learnt, to inform the future of • An Expert Meeting on Indicators for SDGs and the CAPE. Post-2020 Agenda for Biodiversity, held in Cambridge, SANBI continues to be involved in other legacy was hosted jointly by the United Nations Statistics 40 commitments from its previous bioregional programmes, Division and UN Environment’s World Conservation including CAPE and the Ecosystem Monitoring Centre (WCMC). The meeting focused Programme (SKEP). This includes convening partner on developing national and global environmental events, contributing to reflective learning processes, indicators based on natural capital accounts. SANBI as well as continued contributions to ongoing presented South Africa’s work on Natural Capital organisational requirements of implementation plans. Accounting, highlighting how it can contribute These programmes have resulted in lasting collaborations especially to indicators related to ecosystem condition among a variety of different organisations, which are still and protection. being supported. Biodiversity Planning Access to biodiversity data, information SANBI hosted the 15th annual National Biodiversity and knowledge Planning Forum in the Eastern Cape. The forum provides SANBI’s mandate requires it to collect, generate, an opportunity for those involved in spatial biodiversity planning to share and synthesise valuable lessons from process, coordinate and disseminate information about systematic biodiversity planning projects. There was a biodiversity and sustainable use of indigenous biological focus on technical aspects of the National Biodiversity resources, and establish and maintain databases. Assessment 2018, systematic biodiversity assessment Biodiversity Information Management and planning in Africa, integrating biodiversity into land- The National Biodiversity Information System (NBIS) will use planning and environmental management, and provide access to South African biodiversity information discussing national data needs for biological invasions. through a centralised web-based infrastructure, to SANBI hosted the Provincial and Metro Biodiversity support researchers, managers, policy and decision- Planning Working Group. The aim of the working group makers, and planners in achieving their goals, as well as is to ensure consistency of biodiversity plans across the helping SANBI monitor biodiversity. Phase 1 previously country and provide an opportunity for biodiversity developed the design protocol through an intensive planners to resolve technical issues related to systematic scoping and consultation process. SANBI has now

Annual Report I 2018/19 initiated Phase 2, which has begun the build of the workshop provided 55 participants from 30 African centralised web-based infrastructure. SANBI has finalised counties with skills to work across the data-science-policy a collaboration agreement with the National Biodiversity value chain. This workshop also helped to operationalise Data Centre in Ireland allowing for technical and scientific a number of strategic objectives in the SANBI Regional collaboration on biodiversity information management. Engagement Strategy for Africa (2016–2021).

SANBI held the annual Joint Biodiversity Information SANBI hosted a Fitness for Use of Biodiversity Data Management-Foundational Biodiversity Information training event, aimed at growing skills and capacity in Programme Forum. This forum promotes collaboration biodiversity informatics nationally and regionally. SANBI in the development of biodiversity information supported representatives from fiveA frican countries management practice in South Africa. There was a strong to participate. The training focused on key areas of data focus on the collection, analysis and use of biodiversity management relevant to the production of data that is data in the context of global change. A student forum, fit-for-use in biodiversity research and assessments to and a training workshop focusing on biodiversity geo- inform policy development and environmental decision referencing were held as part of the forum. making. SANBI coordinates the African Biodiversity Challenge SANBI participated in the Global Biodiversity Informatics (ABC) project, funded by the JRS Biodiversity Foundation, Conference in Copenhagen. The meeting developed a which aims to build capacity and provide incentives for roadmap towards improving integration across the many countries to mobilise biodiversity data and establish global information platforms to derive maximum benefit biodiversity informatics networks. The competition for the use of data for research, policy and societal benefit. phase of this project concluded in December 2018. This Consensus was reached that a coordination mechanism, competition aimed to galvanise four African countries involving a coalition of partners, was required and that (Rwanda, Ghana, Namibia and Malawi) to mobilise as the Global Biodiversity Information Facility (GBIF) would many policy-relevant data records as possible and to be the key driver in establishing this. forge long-term partnerships with end users of the data. The teams published 110 534 data records and all Africa Strategy 41 identified partnerships and policy entry-points necessary SANBI is the Global Biodiversity Information Facility (GBIF) to mainstream their data. Ghana won the gold medal Africa regional representative and leads the GBIF-Africa upon completion because of their effective team building network. As part of its obligations in this role, SANBI and networking skills, as well as producing a detailed participated in a number of international GBIF meetings. and advanced road map for biodiversity informatics SANBI attended the GBIF-Africa regional meeting hosted in the country. SANBI facilitated engagements on by the Tanzanian GBIF node in Dar-es-Salaam, which biodiversity information management and supported brought together 20 GBIF country nodes, observers and Biodiversity Information Management Forums across the international organisations. It focused on the current participating countries. It also facilitated a workshop to status, achievements and challenges at biodiversity data build capacity in developing funding proposals to assist and information sharing, as well as the use of biodiversity the four countries in securing longer-term funding to data for more effective research, policy development sustain the momentum of biodiversity informatics. and decision making. SANBI also participated in the GBIF Mapping Biodiversity Priorities in Africa, a joint project Governing Board meeting in Ireland, as part of the South between SANBI and UN Environment’s WCMC, with African delegation led by DST, where SANBI presented on funding from the Japan Biodiversity Fund of the CBD, its collaborative work across the continent to support the was formally initiated in April 2018. The project is working data-science-policy value chain. SANBI also attended the in three pilot countries, Botswana, Ethiopia and Malawi, GBIF Joint Nodes Steering Group and Science Committee to test the application of the SANBI-WCMC publication, meeting in Copenhagen, to support Africa’s position in Mapping Biodiversity Priorities, which sets out a the GBIF agenda. science-based approach to national spatial biodiversity SANBI, in collaboration with the GBIF and the UN assessment and prioritisation, drawing on South Africa’s Environment’s WCMC, designed a Data Use for Decision- experience. Workshops were held with the pilot countries making workshop to demonstrate how mobilised data to collate data and develop the building blocks for a can be used in the development of information products national spatial biodiversity assessment. Initial outputs that feed into national policy-making processes. The from the project were presented at the CBD CoP in Egypt.

South African National Biodiversity Institute Libraries and publications participated in a number of side events profiling its work on mainstreaming biodiversity into production SANBI hosts the Chair for the Biodiversity Heritage Library sectors and policies of government, and demonstrating (BHL) Africa which aims to provide open access to valuable the contribution of biodiversity to social and economic information held in Africa’s biodiversity institutions. SANBI wellbeing. A key event was the celebration of South secured an extension for the BHL project to the value of Africa’s 20 newly declared Marine Protected Areas, which R850 000, which will enable a further year for digitising increased the area of South Africa’s marine environment additional books in all four of the project countries (Kenya, under formal protection from 0.4% to 5%. South Africa, Tanzania and Uganda), as well as provide additional capacity development training to grow the SANBI supported DEA in the completion of several BHL network. international reporting requirements for international SANBI’s African Biodiversity and Conservation journal conventions that South Africa is signatory to. SANBI published an editorial on the Contributions to the National compiled the 6th National Report to the CBD, which Status Report on Biological Invasions in South Africa which highlights key activities and progress made in achieving won an award for the most highly cited South African the CBD objectives and targets at a national level. SANBI manuscript in 2017 within the Web of Science. This also supported the development of the DEA-led Country confirms the value of our commitment to an open-source Report to the United Nations Convention to Combat online journal as a platform for making research available. Desertification (UNCCD). The country report outlines progress towards the achievement of the strategic SANBI’s Graphics & Editing Unit continues to publish both objectives of the UNCCD, related to the condition the Strelitzia and Suricata monograph series as well as other of ecosystems and populations, drought, global ad hoc publications. A taxonomic revision of Calobota environmental benefits and the mobilisation of resources (Strelitzia 39), the Systematics of Drimia (Hyacinthaceae: to support the implementation of the Convention. Urgineoideae) in southern Africa (Stelitzia 40), and the Flora of the Eastern Cape, in three volumes (Strelitzia SANBI is, at DEA’s request, leading on the spatial analysis 42 41), were published. SANBI was invited to participate for the phased Gas Pipeline Strategic Environmental at the launch of the Manual of Afrotropical Diptera at Assessment (SEA) to support the national government’s the International Congress of Dipterology in Namibia. Strategic Integrated Projects. This will identify and refine SANBI published the first two Diptera volumes (total of route corridors for the efficient construction of a phased four) in January 2018 as Suricata 4 and 5. The publication gas pipeline network in South Africa and extend the has been internationally acclaimed as a benchmark electricity grid infrastructure network where necessary. publication in the field of dipterology, profiling SANBI’s SANBI participated in the phased Gas Pipeline SEA road role in promoting Africa-wide studies on biodiversity and show in October 2018. the development of world class publications. The Review Panel for Bioregional Plans, convened and Scientific advice to support national and chaired by SANBI, approved two bioregional plans in the international policy processes Limpopo Province. Bioregional plans are published in terms of the Biodiversity Act, and provide a powerful tool SANBI’s primary mandate is to generate, coordinate and for mainstreaming biodiversity into land-use planning interpret the knowledge and evidence required to support and environmental authorisation processes. These two policies and decisions relating to better management new bioregional plans, for the Capricorn and Sekhukune and conservation of South Africa’s biodiversity assets and districts, will complement the existing bioregional plans ecological infrastructure. SANBI fills a unique role within to provide full coverage of the Limpopo Province – the the South African biodiversity sector, linking scientific first province to have achieved this. knowledge with direct policy advice to government.

Biodiversity Policy Advice Policy support on climate change adaptation to inform national and SANBI supported DEA in the negotiations at the 14th international decision making Conference of Parties of the Convention on Biological Diversity (CBD CoP) held in Egypt as part of the South South Africa is facing increasing socio-economic African delegation. The theme for COP14 was ‘Investing pressures as a result of the impacts of climate change. in biodiversity for people and planet’ and SANBI SANBI is an accredited entity for the Green Climate Fund

Annual Report I 2018/19 (GCF) and is South Africa’s National Implementing Entity call for and identify project proposals for development (NIE) of the Global Adaptation Fund. into full submissions to the GCF. The process included

Adaptation Fund national information sharing and capacity building efforts and an extensive five-step review process. As a result, a SANBI is South Africa’s National Implementing Entity (NIE) of the Global Adaptation Fund. It has two approved set of priorities for project development and two first projects which are in their 4th year of implementation. stage concept note proposals have been initiated for SANBI was re-accredited with the Adaptation Fund in submission to the GCF in 2019. March 2019, for a further five-year period. Climate change events and information sharing The ‘Taking Adaptation to the Ground: A Small Grants SANBI participated in a number of GCF, Adaptation Fund Facility for Enabling Local Level Responses to Climate and other international climate change events to share Change’ project, with a value of $2.5 million, is being lessons and experiences from South Africa: implemented in the Namakwa and Mopani district municipalities of the Northern Cape and Limpopo • The GCF second Structured Dialogue with Africa provinces respectively, and is planned for four years. in Mali, where Accredited Entities and National The project has contracted its targeted 12 small grant Authorities shared lessons and challenges of accessing recipients, and will beneficiate 882 vulnerable people GCF funding. through tangible outputs such as climate smart • The GCF Direct Access Entities workshop in Songdo, community gardens, climate resilient livestock and to discuss the GCF’s Simplified Approval Process and livestock shelters. A mid-term evaluation of the Small applicable criteria were discussed. Grants Facility project found the project to be on track towards delivering its contracted outcomes. • SANBI co-hosted and participated extensively in the fifth international Adaptation Futures Conference The Building Resilience in the Greater uMngeni hosted in Cape Town, where the SANBI CEO provided Catchment project has a value of $7.5 million and is planned for 6.5 years. It is being implemented in the the opening welcome. SANBI hosted an event to 43 KwaZulu-Natal province by the uMgungundlovu District celebrate South Africa’s two Adaptation Fund projects, Municipality in collaboration with the University of at which the SANBI Board Chair presented partners KwaZulu-Natal. Through its Climate Resilient Agriculture certificates of appreciation to projects. investments, the project has built the capacity of 575 • The Adaptation Fund’s Readiness Seminar in local farmers by providing them with support to improve Washington, where SANBI presented on its the climate-resilience of their farming systems. This has implementation of the Environmental and Social resulted in increased yields for farmers, who have also Policy safeguards on the Adaptation Fund projects been assisted with establishing co-operatives and selling and shared lessons and tools with other National their produce to local markets. Support also includes Implementing Entities. short and long-term agro-meteorological forecasts and lightning warnings that are part of a bigger multi- • The Africa Project Preparation technical workshop hazard early warning system that is being set up, which hosted with a range of partners, focused on project will also include flood and fire warnings. The project has preparation for transformative climate resilient GCF an extensive awareness raising and capacity building water project concepts in Africa. programme targeting a wide range of stakeholders, from schoolchildren to community members to local and • The Southern African Climate Finance Partnership traditional authorities. Regional learning forum in Namibia, and the GCF Adaptation Rationale Workshop in Philippines, Green Climate Fund provided opportunities for SANBI to strengthen its SANBI is a Direct Access Accredited Entity of the GCF. The GCF project development processes. GCF is the largest operating entity of the United Nations Framework Convention on Climate Change, which • The UNFCCC COP 24 in Poland, where SANBI presented finances projects aimed at responding to climate change. its lessons and experiences on several panels and in SANBI has been leading a comprehensive process to side events.

South African National Biodiversity Institute Programme 6

Biodiversity human capital development and education

44 Purpose

Provide human capital development, biodiversity education and awareness in response to SANBI’s mandate.

Strategic Objectives • A transformed and suitably skilled workforce for the biodiversity sector is developed; Fundisa for Change teachers engaging with innovative • All national botanical gardens are promoted and used teaching methods. as platforms for biodiversity awareness, education and recreation; and PROGRAMME HIGHLIGHTS • Civil society is engaged to contribute to science, • SANBI jointly celebrated International Day of the Forest monitoring and biodiversity conservation. with DAFF; activities included keynote address by the Key Performance Areas CEO, SANBI delegates attending the symposium and conducting a tour of the Pretoria National Botanical • Develop black biodiversity professionals through Garden for the local and international delegates. human capital development initiatives, including • Hosting and mentoring four YES programme structured internships, post-graduate studentships, beneficiaries. and a fellowship programme for the achievement of a transformed and skilled workforce in the biodiversity • Presented a water programme for learners at the National Indaba on Ecological Infrastructure for Water sector; Security; the programme enabled the learners to • Universities to participate in biodiversity careers interact with the Minister at the Indaba. programme; and • Entered into a partnership with VPK, DEA NRM service • Promote Kids in Gardens Programme to celebrate provider to host 19 beneficiaries placed at both the environmental theme days. Pretoria National Botanical Garden and NZG.

Annual Report I 2018/19 Water Week in Betty’s Bay. High School Career Expo at Harold Porter NBG.

Programme Performance A research study conducted a number of years ago on The programme is cross cutting in that it is implemented biodiversity careers found that university students, as well through all SANBI’s programmes, with the intention as high school learners, are not aware of career and job to ensure that the sector is transformed through opportunities that exist within the biodiversity sector. identification, attraction and retention of priority and This is in stark contrast with the need to draw young rare skills amongst South Africans, especially the youth. black professionals into the sector in order to eventually It is also the programme’s intention to up-skill those fill scarce skills positions. In addition, the research found already in the biodiversity sector so as to address not that there was a need to expose learners to careers in the only historical legacies of a bottom heavy sector but also biodiversity sector at the primary school level in order chronic capacity shortages of leadership especially by to impact on the subject choices which would allow black female South Africans. A key aim of this programme them to follow appropriate study pathways. Therefore, in the next few years is to review the National Biodiversity the Biodiversity Careers Programme consists of the Human Capital Development Strategy (NBHCDS) and to directorate’s participation in university career fairs, as well 45 set future priorities. Resource mobilisation is critical to the as the facilitation of high school career expo’s and primary delivery of a highly impactful programme for SANBI and school career visits. Universities host career fairs at different the biodiversity sector as a whole. times with the aim of exposing both undergraduate and postgraduate students to career information, as well as The partnership between the SANBI Zoological job opportunities in various sectors. Systematics and Collections Directorate and the BEE Directorate linked to a bird monitoring project in the This year, the directorate participated in 16 career fairs Thomo, Modjadji and Burgerfort villages in Limpopo at 13 different universities. The stand at each career continued this year. As this is also seen as a human capital fair showcased SANBI in general, but also provided development project, the BEE Centre in Pretoria NBG specific career information about the priority skills in the assisted with the planning and facilitation of the training biodiversity sector. Feedback from the engagement with of 22 young people who will become citizen scientists the students was very positive in that students confirmed for this project. that the information shared was new to them as well as extremely beneficial. The high school career expos were once again facilitated with about 531 learners in a highly structured manner. The various environmental organisations, SANBI units and universities which were invited to participate were assigned designated areas or stands and groups of learners were guided from one stand to the next in a planned sequence. Each group of learners spent about 15 minutes at each stand and engaged with a biodiversity professional representing a specific biodiversity career in order to gain an understanding of what the career entails, which tertiary Engaging with students at the UNISA Career Fair. education courses allows entry into the career and which

South African National Biodiversity Institute other potential career pathways could be followed. The universities provided information about admissions, fees and potential bursaries.

In addition to the directorate’s planned Biodiversity Career Programme, the BEE Centres also responded to ad hoc requests for SANBI to participate in career expos. Therefore, BEE staff members participated in the Sasol Techno X in Sasolburg, the Moutse West Career Expo in Limpopo, the Science Unlimited Expo in Hammanskraal, and the Department of Public Works’ Career Expo in Khayelitsha. In addition, the Pretoria NBG BEE Centre Arbor Week celebrations in Pietermaritzburg. once again partnered with the Australia–South Africa Alumni Association in order to host 45 learners and two participated in the programme for the first time; 16 LSEN teachers from Letsibogo Girls High School for the Take-A- schools with 517 physically and/or mentally challenged Girl-Child-To-Work campaign. The same BEE Centre also learners; 16 youth groups with 614 beneficiaries; and 5 participated in DEA’s Take-A-Girl-Child-To-Work campaign adult groups with 104 beneficiaries. with 33 learners from two high schools. The BEE Directorate celebrated nine environmental days The Kids in Gardens Programme involves learning and weeks this year: Plant Conservation Day, Biodiversity programmes being facilitated in the gardens to a range Day, Environmental Week, Arbor Week, Wetlands Week, of beneficiaries – school learners, youth, students from Water Week, Climate Change Week, Weedbuster Week higher educational institutions and adults. The learning and World Fisheries Day. In addition, Earth Day and programmes are based on interdisciplinary, integrated International Forest Day were celebrated at the Pretoria and active approaches to education and aim to NBG BEE Centre. With the aim of raising environmental increase environmental knowledge and skills, promote awareness in communities, the events generally have the 46 environmental values, and create opportunities for format of short speeches or information-sharing sessions people to take action to address environmental issues. followed by actual environmental actions such as planting For the school learners, the programmes are designed trees or an indigenous garden. When the environmental in a way that supports the current South African days and weeks are celebrated in the gardens, special national education policies by drawing on subject-and lessons are facilitated with learners. This year, a total of 3 grade-specific curricula, while at the same time, finding 922 beneficiaries participated in this programme. expression for biodiversity conservation messages. Schools that specialise in the education of learners with special educational needs (LSEN) also participate in the Kids in Gardens Programme but for these groups, individualised learning programmes are designed so that they carefully match the specific physical and/or mental challenges of the learners. In a similar way, learning programmes for youth, student and adult groups are designed to meet their interests and needs. With many of the economically disadvantaged communities located very far from the gardens, a significant number of beneficiaries are offered sponsored transport in order to participate in the programme. In addition, very Learners in the Karoo Desert NBG. impoverished schools are fully sponsored to attend Holiday programmes were facilitated within the gardens the learning programmes especially those linked to during the school holiday periods this year. While some of the environmental theme weeks. This year, the Kids in the BEE Centres took bookings for children to participate Gardens Programme reached 55 341 beneficiaries, which in fun programmes which included art workshops, story- is 2.48% more than the target of 54 000. Included in this telling and nature treasure hunts, other BEE Centres total, there were 170 schools with 13 564 learners who invited children from disadvantaged communities to

Annual Report I 2018/19 continue the transformative agenda in the sector as far as race, gender and age is concerned.

Civil Society Engaged to Contribute to Science, Monitoring and Biodiversity Conservation Custodians of Rare and Endangered Wildflowers Programme: The Custodians of Rare and Endangered Wildflowers (CREW) Programme, a citizen science initiative that involves members of the public in monitoring threatened Combatting biodiversity crimes at KwaZulu-Natal NBG. and rare plants had a successful year in 2018, conducting 370 field trips across 58 regions of South Africa. A total of enjoy fun activities in the gardens. In addition, a few 488 plant species of conservation concern were surveyed. Centres specifically invited children and youth from As this programme has been in operation for 15 years, an places of safety, orphanages and substance abuse external review was conducted. The review concluded programmes to participate in holiday programmes tailor- that CREW has leveraged the goodwill, expertise, time made for them. Approximately 628 children and youth and financial resources of 957 volunteer citizen scientists, were reached through this programme. which has enabled SANBI to acquire vastly more data than The Combatting Biodiversity Crimes Programme was it would have had the programme been implemented facilitated at certain BEE Centres this year with the focus using only SANBI staff. Over the course of the project on cycads and threatened medicinal plants. This year, 204 178 803 person hours had been donated, the equivalent beneficiaries were reached through these events. of 98 person years. A total of 100 570 records for 8 973 Groen Sebenza Project plants have been recorded by CREW citizen scientists, SANBI received R15.7 million from DEA NRM to implement which equates to 44% of the flora, and data has been 47 the Groen Sebenza Project over a three-year period. The collected for 2 120 threatened and rare plants since 2003. funds are earmarked to take forward the work done in In light of the vast geographical extent of the country, Groen Sebenza I Project, thus addressing priority skills the immense diversity of South Africa’s flora, and the as identified in theN ational Biodiversity Human Capital depth of skills and experience needed to accurately Development Strategy (NBHCDS). identify species, which takes an extensive period of time Due to the limited funding Groen Sebenza Project could to acquire, the review concluded that programme has only enable SANBI to recruit 40 beneficiaries who will be delivered a high return on investment and should be trained and mentored within the institute across different maintained by SANBI in partnership with the Botanical divisions/directorates. All 40 beneficiaries holdN QF Society of South Africa. Level 6 qualifications and upwards as GroenS ebenza I Project identified this as a key component of building a Citizen Science Day successful career in the biodiversity sector. The project On 14 April 2018 SANBI celebrated International Citizen aims to develop identified priority skills in SANBI and the Science Day at the Old Mutual Conference Centre at sector broadly, thus the young people will be trained Kirstenbosch. SANBI hosted a range of biodiversity related in fields such as GIS and biodiversity spatial planning, Citizen Science Projects with each project showcasing ecology, science research, veterinary services, taxonomy, their work to the public. A range of exciting activities informatics, climate change, biological invasions, were on offer and these included a Transcribathon horticulture, human capital development, etc. (getting people to digitise information from herbarium As per the principles of the Groen Sebenza Programme, specimen labels), iNaturalist uploading stations and all of the beneficiaries of Groen Sebenza Project are telescope viewing sessions. Prospective citizen scientists mainly from rural and urban distressed areas, they are could interact with project implementers to find out unemployed youth (100%), with 97% being African, 58% about each project’s activities and how they contribute being females and 9% are people with disabilities. This to conservation. A total of 13 projects were presented on iteration of the Groen Sebenza Programme will, therefore , the day providing an incredible opportunity for citizens

South African National Biodiversity Institute SANBI’s first Citizen Science Day celebrated on 14 April 2018 where a range of projects were presented to members of SANBI’s vegetation scientist Anisha Dayaram showing the the public. 2018/19 interns how to identify soil texture.

to find projects that interested them. Citizen Science Day partners’ approach is therefore utilised, with over 80 was such a success that it is likely to become an annual institutions being involved in the NBA in some way. event on the SANBI calendar. Numerous interns, students, research assistants and National Biodiversity Assessment 2018 young staff from various institutions are involved in many capacitates over 80 young people aspects of NBA work. Their learning included observing

The NBA is usually conducted by the best available the NBA governance processes, specialist GIS work experts to be a credible product. However, from the improving the maps of ecosystem types, digitising and beginning of the NBA process everything was done georeferencing specimen records, assisting on fieldwork, 48 to also build capacity in the sector while producing a cleaning data for Red List assessments (see page 49), scientifically credible product. Our statistics collected on undertaking literature reviews and much more. For contributors to the NBA 2018 show that 87 young people NBA 2018, SANBI alone had over 20 research assistants benefited from being involved in theNBA process (21% and interns during the 2015–2019 NBA period, and of all contributors). Approximately 74% of these young also several students who conducted research projects people are from historically disadvantaged groups and relevant to the NBA. 62% are women. We defined ‘young people’ as having less than or equal to four years’ experience because effectively Preliminary estimates show that 12% of the 126 individuals the NBA took nearly 5 years to complete. credited as authors on an NBA report are in the youth SANBI recognises it does not have the capacity to category – which means that we have promising young undertake all aspects of the NBA, and the ‘network of scientists who will become lead authors on the next NBA.

Cycads being audited and forensic evidence being collected to support regulation of cycad trade

Annual Report I 2018/19 49

Red List Threat Status of species organised by taxonomic groups for terrestrial, freshwater, marine and estaurine realms. This forms part of the National Biodiversity Assessment. Categories follow the IUCN 3.1 Red List Criteria with an added category of “Rare” for local endemics.

Programme Highlights

• Securing the sustainability of the coordination role of the Fundisa For Change Programme.

• Celebration of additional environmental theme days; Earth Day and National Forest Day.

• Exceeding the set target of Kids in Gardens Programme by 2.48 per cent.

• Training of Mpumalanga Department of Agriculture, Rural Development, Land and Environment officials through the BioCrimes programme, focusing on cycads and threatened medicinal plants.

• A total of 40 beneficiaries of the Groen Sebenza Project report for duty on 01 March 2019.

South African National Biodiversity Institute BUILDING THE TALENT PIPELINE – INTERNS HOSTED IN 2018/19

SANBI’s internship programme fulfils three objectives, namely to expose students to the possibility of a career in research/ science; to provide training in specific skills required to achieve SANBI’s research mandate; and to provide an opportunity for established research staff to identify students for further training and development in association with SANBI. SANBI hosted 31 interns nationally in the year under review. Most of these interns were placed in scarce skill areas.

See below how some describe their internship experience:

Sinothando Shibe (DST-NRF funded intern) exciting was to be exposed to new things, things that are not in the university’s curriculum. Very soon after starting my internship I got the opportunity to go on an offshore 50 sampling expedition on the north of KwaZulu-Natal. It changed my life. I had never seen the sea floor in real time and I think it was during those moments that the sea cast its spell on me because I’m still in its net of wonder. From there on I knew that offshore ecology was where I wanted my career to go. I was then very fortunate to get the chance to further my studies with an offshore ecology project from SANBI and funded by SANBI! See how the spell works? Something that I really appreciated about being at SANBI was getting the opportunity to meet people from different sectors and learning how those sectors fit in the marine field. For example, in September, I was part of the IOI Regional African Governance Course I think the quote by Jacques Yves Cousteau, ‘The Sea, once it casts it’s spell, holds one in it’s net of wonder where I met people from all over the African continent forever’, best describes my year in the marine unit. and experts from different sectors. I left the course with a Starting the internship I had expectations that were different perspective and with a clear understanding that influenced by marine research articles that I had read, there is more to marine science than just biodiversity. For what my lecturers spoke about and the very little me, the internship was more than just work experience, voluntary experience that I had. So my idea of a ‘job’ in the it’s amazing how being in that environment contributed field of biology was science, science and more science. so much to my personal and academic growth. I left the When I started my internship at SANBI, everything I had internship with great certainty that I am in the right field, learned before came into context but what was more as well as motivated to go further.

Annual Report I 2018/19 Randall Josephs (DST-NRF funded intern) Sedzani Simali (DST-NRF funded intern)

I was very excited to start my internship with SANBI last year. I still remember the first day I started like it was I was nearing the end of an internship with the Custodians yesterday. Everyone at the Institute gave me a very warm of Rare and Endangered Wildflowers (SANBI) and the welcome and I did not feel like a stranger. In wing B, at plans I had going forward with my studies and career the National Herbarium in Pretoria where I was based, we were completely derailed, which left me in the wilderness were all like a family. I felt very comfortable and happy with regards to the direction I would follow. Fortunately, with my placement. I was under the supervision on opportunity knocks when you least expect it. I was placed Dr M.M. le Roux, from whom I learnt a lot. at the Compton Herbarium (SANBI) through the National Training sessions were organised for me before I could be Research Foundation Internship programme. This was an 51 given any task. I went for mounting training, digitisation ideal placement because of my background in taxonomy, of literature and specimens, BRAHMS training, ArcMap as well as the opportunities that were available once the training and, last but not least, a taxonomic training. All internship had ended. the training was done at the Institution. I was provided During my internship, one of the major learning areas with necessary tools to get working from the word go. was being involved in the daily processes which occur I had a computer, internet access and a convenient bay within the herbarium. It was interesting to see all the where I sat in the wing. On the same floor, my mentor had different facets of the herbarium and how they work her office, so I was not very far from her. I was very happy together. Another learning area was providing assistance to have access to the Mary Gunn Library and was able on different research projects alongside scientists and to borrow books. At SANBI, I developed many skills and students. The opportunity to learn from established gained a lot of knowledge. I was involved in the herbarium scientists was invaluable to me. The time that I spent in duties such as mounting, sorting and filing specimens. the herbarium has really given me the tools and focus to My mentor taught me many things about taxonomy that achieve the goals that I have set for myself. I did not know, which are very useful for my career. I learnt about the type specimens, which at first I had no idea of My mentor, Dr Anthony Magee was supportive and what they were, protologue descriptions and the many always made time to provide assistance or advice and websites that one can use to extract information from also encouraged me to be better every day. With the such as JSTOR, IPNI, BHL and Internet Archive, to mention support from my mentor and the entire herbarium staff, I a few. She took her precious time to explain these felt comfortable to bring new perspectives and insights to concepts in detail so that I could understand. My mentor the workplace. I am grateful to everyone at the herbarium introduced me to QGIS, which I used for georeferencing who has made my time there so wonderful. which is a very good skill for one to have. I really gained Through embracing the many challenges and relevant experience through this internship. opportunities, I have learned a lot about myself. I am While I was an intern, I got an opportunity to go on a field committed to pursuing my dreams in all facets of life. trip in the Eastern Cape were I made some collections

South African National Biodiversity Institute of my own. It was a very good experience because this networking opportunities, exposure to various fields, enhanced my skills. I felt part of a team, because I assisted programmes and different jobs, learning new skills, as well in preparation for the trip. In all honesty, SANBI was a as gaining experience in the work environment. It was very good host institute. I would, however, recommend also amazing to meet so many like-minded individuals that they consider making a provision for their interns to who shared my passion for the environment, biodiversity, attend relevant conferences, such as SAAB or any other, conservation, invasives and wanting to make a difference where they can present whatever project they may have – I felt like this is the place where I needed to be! worked on during the course of the internship. I feel that this could be very beneficial for the intern to get more Being an intern in the Biological Invasions Directorate and exposure to the scientific community. part of the National Status Report Team has offered me both depth and breadth across this specific field, putting

Leandra Knoetze (SANBI funded intern) into perspective the importance and relevance of the detection, eradication and sustainable management of invasive species, as well as the application of its fundamentals to the problems faced by the real world. Most of my time was spent assisting with meeting arrangements, minute taking, and updating and curating databases with information used to assess the status of biological invasions and their management. I also provided general, administrative and logistical support to the coordinator of the Status Report, my supervisor Dr Tsungai Zengeya, by for example, being responsible for updating and maintaining a process document that documents all the processes undertaken to produce the Status Report, as well as curating a database of data 52 sources used, and maintaining a list of new publications to use for the second National Status Report.

I have been in love with nature and the outdoors since I Some of my highlights of the year was seeing and was a little girl, always being outside and playing amongst learning more about the beautiful plants by the trees; saving little injured birds, small animals, and going out with CREW volunteers on field trips, seeing insects and just being captivated by the extreme beauty exquisite rare and endangered wildflowers in their natural of creation – I was even called a real bush child. At school habitats – which is sometimes in the most lovely places Biology was one of my favorite subjects and I always (like on top of Table Mountain) and being able to live out wanted to know and learn more about the environment, my passion of being out in the veld. Other highlights which is why I went on studying Environmental and included travelling to Venda – a new part of SA where Biological Sciences (Botany and Zoology as main subjects). I have not been before – to help with the organisation During this time, I discovered that I have a tremendous of the National Biological Invasions Symposium; having passion for, and interest in biodiversity, plants and the unlimited access to the gorgeous Kirstenbosch NBG and conservation of our unique biodiversity–so I did my just being surrounded by such amazing beauty, nature Honours in Biodiversity and Conservation Ecology and and flowers C( REW field trips) the majority of my time. finished my MSc in Environmental Sciences. I feel truly blessed to have been given this opportunity After my Masters graduation in October 2017 from North- and for the professional and personal growth it has given West University, I didn’t know what to do next – the SANBI me… that will definitely be useful in my future career in Internship came across my path and I was so excited and the biodiversity and conservation. i hope to remain part fortunate to receive the position, even though I had to of this awesome biodiversity inspired group of people at move about 1300 km to another province… I was excited SANBI, keeping the connections made with colleagues to work with such an influential institute as SANBI and and friends, and to know that together we can make a to live in this beautiful paradise - Kirstenbosch. From day difference in our natural environment and conserve our one this internship journey was amazing–with numerous unique biodiversity for future generations.

Annual Report I 2018/19 Murendeni Kwinda (DST-NRF funded intern) During the fieldwork, I learnt more about different plant species and how to identify them – which was not easy at first. Fortunately, it got better due to the courses and training offered at SANBI for skills development. In the field, I met farmers who were at times either interesting or very serious about their business when it came to crop production. Still on fieldwork, before joining the GMO unit at SANBI, I never thought fieldwork required so much preparation–from arrangements with farmers, planning meetings, budgeting and that I would have to work on weekends. Not forgetting the memorable moments of other voluntary field trips with CREW together with Gigi Laidler. Finding my career path One good memory of my travels was my attendance at the 15th National Biodiversity Planning Forum held at When I walked into SANBI with a Biotechnology Cape St Francis Resort, Eastern Cape, in June 2018. At the background, I never really knew what to expect. But all symposium, it was my first experience in an environmental I can say now is that it’s been wonderful since the day sciences platform where students, researchers, scientists I started. A great part of my internship experiences was and governmental professionals presented their work on about learning new things, from biodiversity to the biodiversity and conservation. environmental aspects in general. Firstly, Kirstenbosch was welcoming and being under the mentorship of a For my first and second National Workshop on highly motivated scientist, Dr Tlou Masehela, resulted Sustainable Capacity Building for Effective Participation in good knowledge and skills transfer over time. I learnt in the Biosafety Clearing House (BCH), I was awarded more than expected throughout the internship and two certificates for completing the respective training. At different platforms I met and interacted with very enjoyed every single part of it – even waking up at 53 around 05:00 during fieldwork days. I got to author my influential people, specialists in their fields and I also had first publication, a popular article, throughSANB I’s Animal a chance to impart what I had learned to other students of the week feature titled: Fall armyworm (Spodoptera during the Biodiversity Careers Programme. frugiperda). I also took a few Sho’t Lefts across provinces The highlight of my whole internship experience was such as the Eastern Cape, Gauteng and North West. It learning the importance of biodiversity and conservation. was all about fieldwork (genetically modified maize and I now value biodiversity and as part of my future plans, soybean), conferences (Biodiversity Planning Forum) and have registered for an MSc degree in Botany at the workshops (training on Biosafety Clearing House). North-West University for 2019/2020.

Stephni van der Merwe (DST-NRF funded intern)

meetings or being a personal assistant, as many people might think (although I have done all of the above). No, more than that, we really do develop crucial skills almost daily, starting out with a serious lack thereof. Being part of the highly productive unit some call the VEGMAP unit and others the NBA unit, I wouldn’t even be able to write down all of the skills that I have developed in just one year, given I only have a paragraph: from describing vegetation in the Thicket , to biodiversity assessments for the Prince Edward Islands; also collating massive amounts of data, to nifty new coding tricks. The diversity of projects I have been involved in, aptly reflects the biodiversity The skills (or lack thereof) of an intern institute.

Ever wondered what SANBI interns actually learn in their I am privileged to have been placed in the biodiversity internship year? It’s not just fetching coffee, organising research side of SANBI and it has fuelled my love for

South African National Biodiversity Institute understanding our amazing biodiversity (even to do my sure I clock in my hours in the field all around Cape Town PhD on this topic) and its often unnoticed impact on looking for those beautiful Fynbos flowers with CREW society. The experience I have gained and opportunities volunteers (then uploading them to iNaturalist in the we have had during this time are unrivalled. I have hopes that someone will identify them). I never thought travelled all over the country. I had the opportunity to: that I could develop so many skills in such a short time, present a poster at the Biodiversity Planning Forum in but with the mentoring I have received, it was possible. Cape St Francis; to present at the NRF SANAP Symposium In conclusion: being an intern at SANBI is amazing and in Hermanus; to attend meetings on Robben Island, a my wish for anyone is to start their careers this way, as the Thicket Workshop in Grahamstown, a CREW Workshop staff are eager to teach you and really care about capacity in Stanford and a field techniques course in the Kruger building for the younger generations. National Park. Furthermore, there have been hands-on opportunities to meet famous scientists, inspire young(er) The lunch time walks into the beautiful mountain, the ones at a career expo, catch insects in the orchards and view from the office and the short walk from my cottage press plants in the Compton Herbarium, whilst making to the office dodging puff adders, is just the cherry on top.

Joti Daya (Botsoc funded intern)

species that had not been collected for over 50 years on the Cape Peninsula. This feeling I had just could not be expressed by words but is one I shall never forget. To view this observation on iNat go to: https://www.inaturalist. org/observations/18936113Aspalathus borboniifolia

Another highlight was my involvement in the Karoo BioGaps Project which was a project under the leadership of SANBI. The main aim was to explore the Karoo region with the aim of recording the occurrence of native plants 54 and animals. The biodiversity was very poorly explored and documented with large gaps in the fauna and flora distribution records. Areas of exploration included In April 2018 I was given the rare opportunity to be those targeted for shale gas exploration, or fracking. This part of the CREW (Custodians of Rare and Endangered project was highly significant to me as well as for many Wildflowers) Programme. I have learnt and experienced conservation organisations. The local extirpation of our so much in the past few months. From not knowing the indigenous plant species due to anthropogenic change basics of how to pronounce scientific terminology and has obvious dramatic consequences on the ecosystem, plant names to proudly identifying a few plant species by myself. as they play an important role in primary production and in pollination. To be part of a project that hopes to ensure One of the major highlights in my CREW journey was the the protection of this area from human impacts is an rediscovery of a plant species endemic to Table Mountain honourable moment for myself in my career. that I made. It was on 23 November 2018 when the C-Team Crew group, led by Gigi Laidler, went up Table A great opportunity I had was getting to work with Mountain, starting at the Water Works Museum. As usual experts in the field as well as networking opportunities after the field trip, pictures needed to be posted onto through attending conferences such as the Fynbos Forum iNaturalist (iNat). A day later I received a very exciting and SKEP (Succulent Karoo Ecosystem Programme). I had comment from one of the iNat users that is considered to the privilege to do field trips with experts such as Dr John be one of the Fabaceae (Pea family) experts, I had posted Manning and Pieter Winter who are a senior scientists a picture of the long lost Aspalathus borboniifolia. Further based at Compton Herbarium, and of course my very research done by me showed that this plant was long own mentor Mr Ismail Ebrahim who provided me with overlooked and was first found in 1932 and collected in an abundance of fruitful knowledge throughout my 1956 which was the last time this plant was seen. I was internship. overwhelmed by the fact that I had just rediscovered one of our lost plants. The ‘lost plants’ is a project that the I am grateful to the programme for providing me with CREW team started in 2016 where we identified all the such rare and overwhelming experiences.

Annual Report I 2018/19 Programme 7

55 National Zoological Garden Programme Performance The NZG maintains a vast and diverse living collection Purpose of wildlife (over 4 000 animals covering more than 500 Manage and unlock the biodiversity conservation species) in order to create (a) a platform to connect contributions and benefits of the National Zoological people and wildlife, thus inspiring discovery, appreciation, Garden. knowledge, as well as care of and respect for, nature in general; and (b) learning opportunities for the public Strategic Objectives (general and school-going) about wildlife species, their • Build a centre of research/training excellence and an habitats, and the conservation challenges they face. authoritative source of scientific information on the Through the conduct of high quality, original research biodiversity of wild animals and their ecosystems; the NZG generates knowledge that contributes to the • Create a dynamic platform for engaging the public conservation of wildlife species with a focus on African on the Science of Life (awareness, education & fauna. The research is translated into contributions communication); and to policy development processes as well as scientific • Develop a zoological garden with a conservation services delivered to the wildlife management sector, focus. both private and public. The NZG has been providing a Key Performance Areas high quality scientific platform to researchers, students (undergraduate and postgraduate) and wildlife • Accredit research papers in journals by the conservation professionals. It undertakes human capacity Department of Higher Education; development for wildlife conservation science and • Reach general visitors through visits to the zoo; practice through a training continuum spanning school- • Reach learners through visits to/by the zoo; and going youth through to postdoctoral level. • Publish studbooks under the Pan African Association The NZG has exceeded its targets with regards to the of Zoos and Aquaria (PAAZA). number of research papers published in accredited

South African National Biodiversity Institute journals. The NZG’s SARChi chair in Conservation around the clock monitoring and feeding. With a Physiology has had a positive impact on the number of significant contribution from volunteers, the first birds publications. were returned to Kamfer’s Dam on 10 April 2019, with several flights scheduled over the following weeks. The NZG has not met its target with regards to the While the ultimate aim is to repatriate all those birds number of general visitors utilising its facilities. The removed from the dam, the NZG has been requested underperformance may be attributed to the negative to house any non-releasable birds and to manage any impact of the economy of the spending power of the zoo’s birds remaining in captivity by means of a studbook. visitors. A further contributing factor is the location of the NZG. There are concerns amongst its potential customers • Small population management remains a critical with regards to safety. The NZG is located in the CBD of component to maintain demographic and genetic the City of Tshwane and there has been a marked decay viability of ex situ populations. The NZG leads the in the immediate environment. The NZG is also in need of Pan African Association of Zoos and Aquaria (PAAZA) urgent infrastructure upgrades as the facilities are dated Population Sustainability portfolio which oversees and struggles to meet the needs of customers. The NZG all studbooks and African Conservation Programmes has overall increased its visitor numbers year-on-year but run under the auspices of PAAZA. In 2018/2019, five has not been able to recover to historical levels despite a studbooks were published which contains both number of marketing initiatives. historic and current overviews of the species under review. The studbooks also contain both demographic The NZG has exceeded the target of the number of and genetic analysis to assist managers and biologists learners reached as it still meets the needs of the formal to make informed decisions regarding the overall education sector to augment the National Curriculum management of the animals in their collections. The being taught in schools. The NZG has also attended a studbooks published this year are for the Critically number of science festivals where it is able to educate Endangered Radiated tortoise (Astrochelys radiata), attendees on the importance of biodiversity conservation. the Endangered Ring-tailed lemur (Lemur catta), The NZG has met its target with regards to the number of Pygmy (Choeropsis liberiensis) and the 56 studbooks published under the Pan African Association Vulnerable Southern Bald Ibis (Geronticus calvus) and of Zoos and Aquaria (PAAZA). PAAZA is the regional zoo Wattled Crane (Bugeranus carunculatus). association for Africa for the World Association of Zoos • A major component of population management and Aquariums (WAZA). PAAZA aims to provide regional in ex situ collections is to ensure the sustainability leadership to the zoo community and ensure that its of the ex situ population through breeding. Several members contribute to the overall mission of the world species bred successfully this year with the following association. The purpose of a Regional Studbook is to highlights: document the pedigree and entire demographic history of each animal within a managed population among -- Greater flamingos which started to breed again PAAZA member institutions. These collective histories, for the first time in 22 years. Nineteen chicks compiled and maintained by the NZG as a PAAZA were hatched this year. This breeding event was Regional Studbook Keeper, are known as the population’s achieved after several strategy swaps were made genetic and demographic identity and are valuable tools with another institution. to track and manage each individual as part of a single ex -- Two Pygmy hippopotamus born, one at the situ population. Pretoria National Zoological Garden and the other Programme Highlights at Mokopane Biodiversity Conservation Centre in Limpopo and these births contribute to the • The NZG was requested by a private individual to sustainability of the global ex situ population. assist with several hundred Lesser flamingos that were rescued from certain death when the parents -- Southern Bald Ibis hatched which contributed abandoned their breeding site at Kamfer’s Dam to the genetic diversity of the regional ex situ in Kimberley due to lack of water. The NZG was population. requested to lead the recovery in terms of oversight of • The NZG continues to assist the Department of the health of the birds for the rescue project. The NZG Environmental Affairs by housing confiscated animals (Pretoria campus) received 195 birds which required while cases are being processed. During the course

Annual Report I 2018/19 of 2018/2019, the NZG was requested to house ZooClub and participate in various projects and 13 reptiles, 59 birds, three primates and nine fish. A activities. critical component for this assistance is to maintain • A total of 245 cases which included 1 697 samples these animals in temporary housing that does not were analysed for forensics in 2018/2019. compromise their welfare. The development of a facility specifically for confiscated specimens in the • The Department of Environmental Affairs (DEA) near future is essential, and will improve the NZG’s hosted a workshop on Cyberinfrastructure capacity to assist the Department. requirements (DNA barcoding) from 9–12 April • The Animal Welfare and Ethics Committee, which was 2018. Representatives included SANBI-NZG (A. Kotze, established at the beginning of 2018, continues to M. Mwale., K. Labuschange and M .du Plessis), meet monthly. University of Johannesburg, South African Police • The NZG’s education department facilitated a total of Service (SAPS) and the National Prosecuting Agency seven themed lessons, attended by 11 852 learners (NPA). The aim of the workshop was to provide and 563 educators. These lessons were conducted a platform for all the stakeholders to identify daily over a period of one or two weeks. The topics requirements for the chain of custody DNA barcode were: reference database and the way forward for the -- The Magic of Owls SA BOLD initiative. Dr Sujeevan Ratnasingham -- National Science Week–Pretoria (Informatics Director at the Centre for Biodiversity Genomics, University of Guelph; Chief Architect of the -- National Science Week–Mokopane Barcode of Life Data Systems BOLD) and Ms Megan -- Seas and Oceans Alive Milton led the workshop, aimed at developing a -- Ecosystems strategy for the establishment of a South African -- Flufftail Festival DNA barcode central database (based on the BOLD -- Water Month system). The potential outcomes of this meeting for -- The National Zoo participated in four science the NZG is implementation of new innovative ways 57 festivals, namely: and technologies of organising and managing genetic • Launch of National Science Week 2018, data to improve and support NZG’s contributions to Mpumalanga University, Mbombela, research and national strategic goals. Mpumalanga; • In 2016, at the 17th meeting of the Conference of the • Sasol TechnoX, Sasolburg, Free State; Parties to the Convention on International Trade in • ScopeX, Museum of Military History, Endangered Species of Wild Fauna and Flora (CITES), Johannesburg, Gauteng; and the South African government undertook to set • SciFest, Grahamstown, Eastern Cape. annual export quotas for trade in lion body parts for • In addition to the four educators’ workshops planned commercial purposes derived from captive breeding for the year, the education department was invited to operations. Thereafter, the South African Scientific facilitate another eight workshops, bringing the total Authority, through the National Convention on CITES to 12. These were conducted in Gauteng, North West, Management Authority, determined the 2017 export Limpopo and Mpumalanga. quota for lion bones and other lion derivatives at 800 • The department again presented a module to the skeletons. However, in order to monitor the trade to University of Pretoria’s Tourism students by facilitating ensure that tiger bones are not fraudulently laundered both a lecture and a practical. This was attended by as lion, a rapid and accurate DNA-based test was 355 students. required. The NZG has developed and validated a • The department also presented a module on snakes new single nucleotide polymorphism (SNP) real-time and envenomation in a post-graduate course of the (qPCR) assay that can accurately differentiate between University of Pretoria’s School for Communicable lion and tiger DNA. The assay results in genotypic Diseases (Medical Faculty). species assignments are highly concordant with • A total of eight Junior Nature Conservators’ courses phenotypic assignments. The SNP assay was validated were facilitated for 248 high school learners during on our newly-acquired instrument, the Applied the school holidays. These learners could join the Biosystems QuantStudio™ 12K Flex Real-time PCR

South African National Biodiversity Institute system. This new technique was used to accurately on certain initiatives to establish a National Biobank identify that all of the 800 samples from the lion bone for Namibia. quota only originated from lions. • The NZG is participating in the Biodiversity • The NZG has worked towards increasing the relevance Management Plan for Pickersgill’s reed frogs and visibility of biomaterial banking in South Africa (Hyperolius pickersgilli) which are a highly threatened with many partners over several years within the species occurring in a few isolated areas in KwaZulu- global biobanking community. A critical decision Natal. Part of the implementation of the plan is the was taken in 2014 to link with the Global Genome restoration and conservation of the coastal wetland Biodiversity Network (GGBN) to expand on the link areas and bringing water security, as well as tourism between our molecular genetics and genomics and job opportunities to local communities. Another research programmes and biomaterial collections. important component is the ex situ conservation of The NZG brings to the table adequate bioinformatics the species. To this end the Johannesburg Zoo was and physical infrastructure to properly curate animal successful in breeding Pickersgill’s reed frogs and cells, tissue and DNA for the benefit of the entire for the first time release captive bred stock into the research and conservation community. This links wild. The South African National Biodiversity Institute’s excellently with our new mandate and expansion National Zoological Garden tested for chytrid fungus of frozen collections for endangered animal taxa. on 244 Pickersgill’s reed frogs that are to be released, Access to joined databases of available material, the to ensure that they were all free of the fungus and that availability of clear and transparent sample request the released frogs did not pass the fungus on to the processes and a greater appreciation of the protocols wild population. The NZG also did the genetic analysis and requirements for usage of such materials under of the wild population, to see whether there were the Nagoya Protocol for Access and Benefit Sharing of significant genetic differences between Pickersgill’s Genetic Resources will benefit NZG research and that reed frogs at various sites, to ensure that we don’t of colleagues. release frogs of one genetic type into an area where 58 the frogs are of another genetic type. It was found • Ms Kim Labuchagne and Prof. Antoinette Kotze that it doesn’t matter where we release the captive- attended the GGBN meeting hosted at the University bred frogs as there are no significant differences in the of Natural Resources and Life Science, Vienna, Austria. genetics of the wild frogs from different localities. The We obtained a wider view for a greater awareness release took place in September 2018. of the samples that are held within the NZG, their provenance and conditions of use in research; • The NZG has received a funding grant for Wildlife DNA Forensics and Seizure Training from TRAFFIC, a leading the potential to use as key genetic resources for non-governmental organisation working exclusively research without the need to import samples from on wildlife trade in the context of both biodiversity their country of origin or another state; ensure conservation and sustainable development. The that samples that are used in research are Nagoya- NZG has accomplished several achievements with compliant and provide access to high quality tissue regards to the milestones laid out in the funding and/or DNA enabling Next Generation Sequencing grant including: (1) The development of guidelines and high quality reference assemblies with regards and sampling protocols for pangolin. This was also to mitochondrial and nuclear analyses. In particular submitted to the IUCN Pangolin Specialist Group. (2) the focus was to link with international colleagues We have completed analysis of eight mitogenomes on the understanding of the Nagoya Protocol and from African pangolin. Phylogenetic comparisons how it should be interpreted when constructing within pangolin species (based on our data and DNA barcodes and now Next Generation Sequencing publically accessible mitogenomes) indicate distinct libraries. lineages associated with geographic origin in black- • As the NZG has established itself as one of the and white-bellied pangolin, with lower variation leaders in biomaterial banking in southern Africa, the being observed in Temminck’s ground pangolin Namibian Ministry of Environment and Tourism has from various geographic regions. (3) Training has invited Prof. Antoinette Kotze, Prof. Desire Dalton, and been provided to David Squarre from National Kim Labuschagne to participate in, and take the lead, Parks and Wildlife (Zambia) on the molecular

Annual Report I 2018/19 techniques currently being used to geo-reference loggerhead turtles were successfully released on 15 African pangolins and to fill the gap in data from December 2018. Cedar’s movements are continuously Zambia. The training provided Dr Squarre with being tracked. Bayworld hopes to release more technologies to perform his own in-country chain of rehabilitated turtles in the next few months, and have custody sampling and analyses to contribute to this invited the NZG to participate in the sampling and the project. (4) Lastly, we have completed microsatellite release. analysis on 11 black-bellied (ten Ghana and one Sierra • Prof Kotze was invited by San Diego Zoo Global Leone) and 35 white-bellied pangolins (28 Ghana (SDZG) to honour the MoU with the following scope and seven Sierra Leone). Genetic diversity estimates of work: to work towards the Frozen Zoo®/NZG varied between the four African pangolin species with Biobank collaboration. The specific project objective the lowest diversity being observed in black-bellied is to collaborate in research regarding cell culture, pangolin. population genetic/genomic analyses on endangered • The NZG hosted four international researchers from African species, and molecular and cytogenetic Malaysia and Thailand in September, as part of a analyses. SDZG and NZG shared information and collaboration with the TRACE Forensics Network. The data on species of mutual interest, shared protocols NZG has developed a panel of 60 Single Nucleotide for cell culture techniques, facilitated team member Polymorphisms (SNPs) that is able to provide an visits in order to improve collaboration and training individual profile, analyse parentage, determine and expand the cell cultures for the northern white gender and subspecies in tigers. A total of 915 samples rhinoceros held in the NZG Biobank. SDZG will obtained from tigers that originate from Malaysia and cover costs for agreed-upon genome sequencing of Thailand were analysed using the NZG real-time PCR South African species and cover the costs for a SDZG platform. This project will be expanded to include researcher to visit South Africa for approximately analysis of several hundreds of tigers from Southeast two weeks to assist with cell culture activities at Asia and will assist in forensic monitoring of trade of NZG Biobank related to northern white rhinoceros in October 2019. this species. 59 • The 9th Annual NZG Research Symposium organised • In 2018, the NZG managed 83 registered research by the Research and Scientific Services Department projects. A total of 73 progress and final reports were of the National Zoological Garden, South African submitted by end of December 2018. A total of 11 National Biodiversity Institute, was held from 21–23 projects had been completed by the end of December November 2018. This symposium brings together a 2018. The number of ongoing research projects from broad spectrum of interns, post-graduate students January to March 2019 is 73. and researchers who participate in research and • Between 13 and 18 December 2018, the Department use the research platforms of the NZG. This year of Environmental Affairs (DEA) through the FSL, the NZG hosted two internationally recognised requested the NZG to sample a huge confiscation keynote speakers: Prof. Gordon Luikart from Montana of shark fins in Cape Town. A total of 116 shark fin University, USA, and Dr Jennifer Landolfi from the subsamples were collected following a forensic University of Illinois, USA. acceptable process. DNA barcoding using traditional • Staff of the NZG travelled to Port Elizabeth for African Sanger sequencing and Next-generation sequencing Penguin studbook sampling. This trip coincided with was conducted in order to identify the species of the the sampling of green and loggerhead turtles to shark fins.V arious species were identified including be released back into the wild after a rehabilitation CITES listed species which raised huge concern. In process at Bayworld by Ruth Wright, Curator: Marine the confiscation blue shark (Prionace glauca), shortfin Fish Husbandry and Turtle Rehabilitation. The one mako shark (Isurus oxyrinchus), scalloped hammerhead green turtle called Cedar had a tracking device fixed shark (Sphyrna lewini), smooth hammerhead shark to its shell in order to monitor its movements once (Sphyrna zygaena) and copper shark or bronze whaler released back into the ocean. Five green turtles and (Carcharhinus brachyurus) were identified. This analysis four loggerhead turtles were sampled, photographed once again shows the impact that the NZG is making and measured for accessioning into the Biobank. towards illegal trade of wildlife using our molecular Cedar and two other green turtles, as well as two technologies and forensic capabilities.

South African National Biodiversity Institute 60

Free State National Botanical Garden Annual Report I 2018/19 61

Predetermined objectives

South African National Biodiversity Institute Predetermined objectives is an annual audit of reported actual performance against the approved Annual Performance Plan (APP) of public institutions. Its purpose is to provide assurance to Parliament, legislators, members of the public and other relevant parties that the actual performance reported is useful and reliable.

PREDETERMINED OBJECTIVES REPORT 2018/19 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2018/19 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 1: RENDER EFFECTIVE AND EFFICIENT CORPORATE SERVICES 1.1: SANBI is positioned as Per centage of payroll 1% of payroll allocated Exceeded target. The target was exceeded: an employer of choice in the allocated and spent on and spent on staff 1% of payroll allocated i) more staff bursaries were biodiversity sector. staff development. development . and spent on staff awarded: R1 000 608 was development 1% of actual spent in 2018/19 versus payroll was R971 460 in 2017/18; ii) R3 041 806, amount spent more workshops were was R3 469 009. attended, e.g. tourist guide training across all gardens; and iii) SDL contribution in 2018/19 was R957 099 versus R888 612 in 2017/18. Transformed Institute 45% female staff on Exceeded target. 46.4% The target was exceeded that reflects the permanent and contract was achieved. by 1.4%, 339 females in the demography of employment. establishment, whereas the South African the target was 329 females. population. 62 50% female staff in top and Exceeded target. 51.7% The target was exceeded senior management . was achieved. by 1.7%, 15 females in senior management, whereas the target was 14 females. 87% of black staff on Exceeded target. 87.8% The target was exceeded permanent and contract was achieved. by 0.8%, 642 black staff employment on the establishment, whereas the target was 636 black staff. 3% People with disabilities Exceeded target. 4.2% was The target was exceeded on permanent and achieved. by 1.2%, a disability audit contract employment. conducted in November 2018 revealed that there are more people with disabilities than initially recorded. 1.2: Implement an effective, GRAP and PFMA Unqualified AFS produced Not achieved. The external audit efficient and transparent compliant annual to comply with PFMA and outcome was not an supply chain and financial financial statements. GRAP requirements. unqualified audit option. management system as regulated by PFMA. 1.3: Improved financial Per centage increase of 3% increase on own Exceeded Target. 41% This includes income of sustainability of the Institute. income generated. income. increase–R41,9mil. NZG for the first time.

1.4: Effective corporate Maintain 90% availability 90% network and business 100% achieved. 90% of services rendered to achieve of SANBI ICT network services availability. network and business the mandate of SANBI . and ICT business Services are available. services.

Annual Report I 2018/19 PREDETERMINED OBJECTIVES REPORT 2018/19 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2018/19 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) All strategic risks Strategic risks monitored 100% achieved. Risk mitigated and and managed according to action plans/mitigation monitored according to mitigation action plans. plans implemented and the risk management monitored. framework and policy. Compliance with all Quarterly performance 100% achieved. All relevant Acts and SANBI/ report is monitored quarterly reports were DEA protocol through against the approved compiled, reported to implementation of APP including PFMA, various Board Committees Compliance Framework Cash Management and and duly submitted on due ENE reports on a quarterly date to DEA and National basis by DEA according to Treasury. specified time frames set out by the Department. 1.5: Building a compelling Number of 102 activities to be Exceeded target. A total The target was exceeded brand for all stakeholders. marketing and brand arranged of 143 activities were as a result of negotiations communication arranged. and increased partnership platforms and initiatives opportunities that were identified and utilised taken up. In the process for SANBI marketing and of building stakeholder promotion relations SANBI approached some service providers and got them to move their events to SANBI national botanical gardens. These events 63 were not planned but were opportunities that were identified during the year.

South African National Biodiversity Institute PREDETERMINED OBJECTIVES REPORT 2018/19 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2018/19 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 2: MANAGE AND UNLOCK BENEFITS OF THE NETWORK OF NATIONAL BOTANICAL GARDENS AS WINDOWS INTO SOUTH AFRICA’S BIODIVERSITY 2.1: A network of national Number of indigenous 20 indigenous plant Exceeded target. Target of 20 species was botanical gardens are plant species added to species added to the 153 indigenous plant exceeded by 133 species managed and maintained. the living collections living collections of species were added to due largely to increased of SANBI’s national the combined network the living collections of resources (four dedicated botanical gardens or the of national botanical the combined network of seed collectors funded by Millennium Seed Bank gardens and/or the MSBP, national botanical gardens the MSBP) available and Partnership (MSBP). UK. and/or the MSBP, UK. contributions towards seed collections received from volunteers and horticulturists associated with SANBI’s national botanical gardens. Number of new Thohoyandou Botanical Partially achieved. Site The open tender for the national botanical Garden: prioritised development plan and service provider required gardens established and improvement and cultural heritage survey for the improvement and operational upgrading of existing both 100% completed. upgrading of existing buildings in the garden buildings in the garden according to the had to be advertised approved implementation twice due to no eligible plan. bidder qualifying Site Development (according to the tender Plan developed for the specifications) following Thohoyandou Botanical the first advertisement 64 Garden. of the tender. This delay Cultural heritage survey resulted in the delayed completed for the appointment of a service Thohoyandou Botanical provider. the preferred Garden. service provider was ultimately appointed through open tender on 20 February 2019 for prioritised upgrading and improvement of existing buildings in the Thohoyandou Botanical Garden. Planned work scheduled to be completed in 2019/20. Kwelera National Botanical 100% Achieved. (Kwelera Garden: Basic Assessment National Botanical Report (BAR) prepared for Garden): Basic Assessment planned infrastructural Report (BAR) prepared for developments in the planned infrastructural Kwelera National Botanical developments in the Garden. Kwelera National Botanical Environmental Control Garden. Officer (ECO) appointed to Environmental Control monitor implementation Officer (ECO) appointed to of the Basic Assessment monitor implementation Report (BAR). of the Basic Assessment Report (BAR).

Annual Report I 2018/19 PREDETERMINED OBJECTIVES REPORT 2018/19 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2018/19 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) Number of maintenance, 45 maintenance/ Partially achieved. One of 45 maintenance/ development and development projects 44 maintenance/ development projects capital infrastructure and two SANBI capital development projects was not completed due to projects completed infrastructure projects and two SANBI capital scheduling challenges over across SANBI’s national completed. infrastructure projects two consecutive financial botanical gardens. completed. years. 2.2: Nature-based tourism Per centage visitor Minimum of five per cent Exceeded target. 16% The annual target was and recreational activities numbers increased (5%) annual increase in annual increase in system- exceeded. System- are strengthened in all through expanded visitor numbers. generated visitor numbers generated visitors national botanical gardens tourism-related activities (1 413 974). for 2017/18 used for to contribute to SANBI’s and events in national comparison was sustainability. botanical gardens. 1 222 816. The reason for exceeding the target included improved public awareness, social media (Facebook, Twitter) through SANBI Marketing and Communication, popular Summer Sunset concerts at Kirstenbosch, a depressed South African economy (resulting in families spending less time at long distance destinations and supporting more 65 affordable, local tourism destinations), safe and reasonably priced nature- based tourism destinations as well as improved recording of system- generated visitors.

South African National Biodiversity Institute PREDETERMINED OBJECTIVES REPORT 2018/19 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2018/19 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 3: BUILD THE FOUNDATIONATIONAL BIODIVERSITY SCIENCE 3.1: Foundational biodiversity Number of animal Information on 4 200 100% achieved. information is developed and plant species for South African species Information on 4 200 South through describing and which descriptive and compiled. African species compiled. classifying species and classification information ecosystems in South Africa. has been compiled. Number of updates to Four ecosystem 100% achieved. Four ecosystem classification classifications updated ecosystem classifications systems. (maps completed and updated (maps completed integrated into NBA for and integrated into NBA terrestrial, freshwater, for terrestrial, freshwater, estuarine and marine). estuarine and marine).

Number of quality 56 000 biodiversity 100% achieved. 56 000 controlled records for records added to biodiversity records added plant specimens in database. to database. SANBI’s herbaria, and for animal specimens in museums or based on observations, added to databases. PROGRAMME 4: ASSESS, MONITOR AND REPORT ON THE STATE OF BIODIVERSITY AND INCREASE KNOWLEDGE FOR DECISION MAKING INCLUDING CLIMATE CHANGE 4.1: New knowledge created Number of research 85 publications. Exceeded target: The target was exceeded 66 to inform assessments and papers published in 87 papers published. by 2%. The target is based decision making relating to journals accredited by on a fair expectation biodiversity. the Dept. of Higher of performance but Education. the intention was to exceed the target by implementing systems to improve productivity. Number of invasive 35 plans. 100% achieved. 35 plans species project plans developed. developed. Number of risk analyses 65 assessments. 100% achieved. 65 risk The indicator refers to risk conducted for invasive assessments conducted. analyses and the target species. is for risk assessments, which form part of the risk analysis process. SANBI undertook to produce 65 assessments, which were completed. Number of cooperative One new network initiated. 100% achieved. One new research networks network initiated. established to generate knowledge linked to SANBI ‘s mandate.

Annual Report I 2018/19 PREDETERMINED OBJECTIVES REPORT 2018/19 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2018/19 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) 4.2. The status of Number of national One assessment 100% achieved. One biodiversity, including biodiversity syntheses or completed (National assessment completed biological invasions, is assessments produced. Biodiversity Assessment). (National Biodiversity systematically assessed to Assessment). determine current state Annual updates of One update for Non- 100% achieved. One and trends and to identify species assessments Detriment Findings for the update for Non-Detriment risks or benefits to the to support NEMBA Scientific Authority. Findings for the Scientific environment and people. regulations. Authority

PROGRAMME 5: PROVIDE BIODIVERSITY POLICY ADVICE AND ACCESS TO BIODIVERSITY INFORMATION; AND, SUPPORT FOR CLIMATE CHANGE ADAPTATION 5.1: Tools to support Number of tools and Two environmental 100% achieved. Two management and knowledge resources decision support tools environmental decision conservation of biodiversity developed to support produced. support tools produced. developed mainstreaming of and applied. biodiversity assets and ecological infrastructure in production sectors and natural resource management.

Three knowledge 100% achieved. Three 67 resources to support knowledge resources biodiversity informatics to support biodiversity and biodiversity informatics and mainstreaming developed biodiversity mainstreaming and disseminated. developed and disseminated.

Number of coordination Five learning or 100% achieved. Five or learning mechanisms coordination events learning or coordination convened to share convened. events hosted. lessons and build capacity. Four training sessions 100% chieved. Four convened. training sessions held.

5.2: Access to biodiversity Number of biodiversity An increase of 54 000 Exceeded target. 60 449 Target was exceeded by data, information and records published. records published. records published. 6 449 records. Datasets knowledge provided. received from external partners were larger than originally projected. The target is based on projections with actual records only known once the datasets are processed and validated. Variation is therefore anticipated in terms of the number of biodiversity records published.

South African National Biodiversity Institute PREDETERMINED OBJECTIVES REPORT 2018/19 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2018/19 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) 5.3: Scientific advice to Per centage of policy 100% of relevant written 100% achieved. 100% of support national and requests from DEA and requests from DEA and relevant written requests international policy other organs of state other organs of state from DEA and other organs processes provided. responded to within responded to within of state responded to. timeframe stipulated in timeframe stipulated. the request. 5.4: Policy support on climate Number of national and Lessons and experiences 100% achieved. Lessons change international platforms arising from SANBI’s work and experiences arising adaptation provided on which SANBI’s as a national accredited from SANBI’s work as a to inform national and lessons and experiences entity of global climate national accredited entity international decision as a national accredited funds are shared on four of global climate funds are making. entity of global climate platforms.. shared on four platforms. funds are shared.

Number of coordination One coordination 100% achieved. One mechanisms convened mechanism convened in coordination mechanism to support DEA in collaboration with DEA. convened in collaboration implementing the with DEA. Ecosystem Based Adaptation (EbA) strategy. PROGRAMME 6: PROVIDE HUMAN CAPITAL DEVELOPMENT, BIODIVERSITY EDUCATION AND AWARENESS IN RESPONSE TO SANBI’S MANDATE 6.1: A transformed and Number of black 100 black biodiversity 100% achieved. 100 68 suitably skilled workforce biodiversity professionals professionals participate black biodiversity for the biodiversity sector is who have participated in structured internships professionals participate developed. in structured internships and postgraduate in structured internships and postgraduate studentships. and postgraduate studentships. studentships. Number of universities 15 universities. Partially achieved. The annual target of who participated in the 13 universities reached. 15 universities was not University Biodiversity achieved as 2 universities Careers Programme cancelled due to strikes. aimed at attracting young people into the biodiversity sector. 6.2: All national botanical Number of beneficiaries 54 000 beneficiaries Exceeded target. The annual target of gardens are promoted who participated in Kids participated in ‘Kids in 55 341 beneficiaries were 54 000 was exceeded by and used as platforms for in Gardens Programme. Gardens’ Programme. reached. 1 341 due to increased biodiversity awareness, uptake by schools. In education and recreation. addition to this the filling of vacant posts at Education Centres in Kirstenbosch and Karoo Desert national botanical gardens assisted in reaching more beneficiaries. Number of biodiversity Nine environmental theme 100% achieved. Nine theme days celebrated. days celebrated. environmental theme days celebrated. 6.3: Civil society is engaged Number of civil society Three platforms 100% Achieved. Three to contribute to science, engagement platforms maintained, two new platforms maintained, two monitoring and biodiversity developed and platforms assessed. new platforms assessed. conservation. maintained.

Annual Report I 2018/19 PREDETERMINED OBJECTIVES REPORT 2018/19 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2018/19 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 7: MANAGE AND UNLOCK THE BIODIVERSITY CONSERVATION CONTRIBUTIONS AND BENEFITS OF THE NATIONAL ZOOLOGICAL GARDEN OF SOUTH AFRICA 7.1: Build a centre of research Number of research 35 publications. Exceeded target. The NZG has exceeded / training excellence and papers in journals 36 publications. publications by 1. It is an authoritative source of accredited by the Dept. not always possible to scientific information on the of Higher Education. accurately determine biodiversity of wild animals when papers will be and their ecosystems. accepted for publication and the actual publication date. 7.2: Create a dynamic Number of general 432 000. Partially Achieved. The NZG has not been platform for engaging the visitors reached through 336 664 visitors.. able to achieve this public on the Science of Life visits to the zoo. target. Although there is (awareness, education and a general increase in the communication). visitor numbers to the NZG it has not been able to achieve historical targets. This can be attributed to economic pressures, safety concerns relating to the NZG’s location and lack of product innovation resulting from limited capital investment. The NZG has implemented a 69 number of initiatives in an attempt to generate additional feet through the gate including the Gautrain activation. Number of learners 160 000. Target exceeded. 182 027 A total number of 182 027 reached through visits learners. learners were reached to/by the zoo. through visits to/by the zoo resulting in the target been exceeded by 22 027. In addition to the schools that visit the NZG it also reaches out through participation in a number of science festivals and this increases its numbers. 7.3: Develop a zoological Number of studbooks 5. 100% achieved. garden with a conservation published under PAAZA. Five studbooks were focus. published during the fourth quarter.

South African National Biodiversity Institute PREDETERMINED OBJECTIVES REPORT 2017/18 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2017/18 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 1: RENDER EFFECTIVE AND EFFICIENT CORPORATE SERVICES 1.1 SANBI is positioned as an Per centage of payroll 1% of payroll allocated Partially achieved. employer of choice in the allocated and spent on and spent on staff biodiversity sector. staff development. development. Transformed Institute 44% female staff on Partially achieved. Two female staff members that reflects the permanent and contract 43.77% was achieved. resigned in January demography of employment. 2018 and one female the South African staff member resigned population. in February 2018. These resignations were beyond SANBI’s control. If these female staff members did not resign, the target of 44% female staff on permanent and contract employment would have been achieved. 49% female staff in top 100% Achieved. 50% and senior management. female staff in top and senior management. 86% of black staff on 100% Achieved. 86% of permanent and contract black staff on permanent employment. and contract employment. 3% people with disabilities 100% Achieved. 3% 70 on permanent and People with disabilities on contract employment. permanent and contract employment. 1.2 Implement an effective, GRAP and PFMA Unqualified AFS produced 100% achieved. The 100% achieved. 2% increase efficient and transparent compliant annual to comply with PFMA and financial transactions on own income. supply chain and financial financial statements. GRAP requirements. were accurately captured management system as and reconciliations were regulated by PFMA. performed according to the system of internal control. 1.3 Improved financial Per centage increase of 2% increase on own 100% achieved. 2% sustainability of the Institute. income generated on income. increase on own income. rental, admission sales and other income. 1.4 Effective corporate Per centage availability 90% network and business 100% achieved. 90% of services rendered to achieve of SANBI ICT network services are available network and business the mandate of SANBI and ICT business Services are available. services. All identified risks Updated, mitigated and 100% achieved. Updated, managed through an monitored risks. mitigated and monitored annual risk assessment risks. and implementation of the risk management plan. Compliance with all Quarterly performance 100% achieved. All relevant Acts and SANBI/ report is monitored Quarterly Reports were DEA protocol through against the approved APP compiled, reported to implementation of including PFMA, Cash and various Board Committees Compliance Framework. ENE reports on a quarterly and duly submitted on basis by DEA according to due date to DEA and specified time frames set National Treasury. out by the Department.

Annual Report I 2018/19 PREDETERMINED OBJECTIVES REPORT 2017/18 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2017/18 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 1: RENDER EFFECTIVE AND EFFICIENT CORPORATE SERVICES (CONTINUED) 1.5 Building a compelling Number of 44 activities to be 100% achieved. All shows, brand for all stakeholders. marketing and brand arranged. exhibitions, concerts, communication events and campaigns/ platforms and initiatives activations carried out as identified and utilised planned. for SANBI marketing and PROGRAMME 2: MANAGpromotion.E AND UNLOCK BENEFITS OF THE NETWORK OF NATIONAL BOTANICAL GARDENS AS WINDOWS INTO SOUTH AFRICA’S BIODIVERSITY 2.1: A network of national Increased representation 20 indigenous plant 100% Achieved. 20 botanical gardens are and display of indigenous species added to the indigenous plant species managed and maintained plants in the living collections of the national added to the collections in order to realize benefits collections of SANBI’s botanical gardens and/or of the National Botanical to SANBI, civil society and national botanical gardens the Millenium Seed Bank Gardens and/or the other relevant stakeholders. or the Millennium Seed Partnership (MSBP). Millenium Seed Bank Bank Partnership. Partnership (MSBP). Number of new national Implementation 100% Achieved. botanical gardens plan developed for Implementation established and operational. the upgrade and plan developed for improvement of existing the upgrade and buildings in the garden. improvement of existing Landscape design for buildings in the garden. the cultivated portion of Landscape design for the garden approved for the cultivated portion of implementation. the garden approved for 71 implementation. Four management plans 100% achieved. Four for the 160 ha natural management plans for portion of the Garden the 160 ha natural portion finalised and approved of the Garden finalised by the joint SANBI/ECPTA and approved by the joint Steering Committee SANBI/ECPTA Steering Landscape design for Committee. the cultivated portion of Landscape design for the garden approved for the cultivated portion of implementation. the garden approved for implementation. Number of maintenance, 45 maintenance/ 100% achieved. development and capital development projects 45 maintenance/ infrastructure projects and two SANBI capital development projects completed across SANBI’s infrastructure projects and two SANBI capital national botanical gardens. completed. infrastructure projects completed.

South African National Biodiversity Institute PREDETERMINED OBJECTIVES REPORT 2017/18 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2017/18 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 2: MANAGE AND UNLOCK BENEFITS OF THE NETWORK OF NATIONAL BOTANICAL GARDENS AS WINDOWS INTO SOUTH AFRICA’S BIODIVERSITY (CONTINUED) 2.2: Nature-based tourism Per centage visitor Minimum of five per cent Partially achieved. 3% Original annual target of and recreational activities numbers increased through (5%) annual increase in annual increase. 3% annual increase was are strengthened in all expanded tourism-related visitor numbers. achieved. The revised national botanical gardens activities and events in mid-year target of 5% in order to contribute national botanical gardens. annual increase in visitor to and support SANBI’s numbers not achieved. sustainability. The combined number of visitors to all NBGs for the year totalled 2 156 894 which was three per cent higher than the previous financial year (2 084 814) and the highest annual visitor number ever achieved by SANBI’s network of gardens. This matched the original 2017/18 APP target in Programme 2 for the year-on-year per centage increase in visitor numbers for 2017/18 of 3%, but unfortunately not the 72 revised (mid-year) target of 5% annual increase. Not reaching the revised annual target of 5% was due mainly to a 1% annual drop in the number of visitors to Kirstenbosch due to a drop in local visitors and local spending due to economic downturn in the last quarter of the financial year. The drop in visitor numbers in Q4 compared with the same period in 2016/17 was also experienced by several other of the Big 7 tourism partners in and around the Cape Peninsula.

Annual Report I 2018/19 PREDETERMINED OBJECTIVES REPORT 2017/18 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2017/18 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 3: BUILD THE FOUNDATIONATIONAL BIODIVERSITY SCIENCE 3.1: Foundational biodiversity Number of plant and Information on 4 200 South Target exceeded. 4 826 Information on 4 826 information is developed animal species for African plant and 1 000 species pages. species pages were through describing and which descriptive animal species compiled. compiled, and this classifying species and and classification includes descriptive and ecosystems in South Africa. information has been classification information compiled. for animal species (1 . 026) and plant species (3 800). The species descriptions received for the groups could not be disaggregated and/or split, hence the target was exceeded. This is due to composite information that was received from partners. Partner institutions submitted more animal records than planned for, and the additional plant records were due to extra capacity in the form of internships and contract personnel. Number of ecosystem Annual Report on 100% achieved. Annual classification systems ecosystem classification Report on ecosystem 73 and maps developed for and mapping. classification and the National Biodiversity mapping. Assessment.

Number of quality 21 000 records added to 100% achieved. controlled records for plant database; 35 000 21 000 records added to plant specimens in records added to animal plant database; 35 000 SANBI’s herbaria, and database. records added to animal for animal specimens in database. museums or based on observations, added to databases.

South African National Biodiversity Institute PREDETERMINED OBJECTIVES REPORT 2017/18 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2017/18 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 4: ASSESS, MONITOR AND REPORT ON THE STATE OF BIODIVERSITY AND INCREASE KNOWLEDGE FOR DECISION MAKING INCLUDING CLIMATE CHANGE 4.1: New biodiversity Number of research papers 85 additional 100% Achieved. knowledge created for published in ISI journals. publications. 85 additional papers decision making. published. 4.2. Scientific evidence on Number of national NBA 2018 on schedule 100% achieved. NBA 2018 the status of biodiversity scientific synthesis and according to operational on schedule according to (based on monitoring and assessment reports plan. operational plan. assessment including that produced. Red List assessments for 100% achieved. Red List of biodiversity loss) and one adittional taxonomic assessments for one the risks and benefits, is group completed. additional taxonomic provided. group completed. National report 100% achieved. National completed on the status report completed on the and trends of listed status and trends of listed invasive species. invasive species. Scoping document for a 100% achieved. monitoring framework on Scoping document for a invasives initiated. monitoring framework on Invasives initiated. Baseline data for 100% achieved. Baseline monitoring impacts of data for monitoring GMOs. impacts of GMOs. Number of annual updates One update for non- 100% achieved. One 74 of non-detriment findings detriment findings for the update for non-detriment for the Scientific Authority Scientific Authority. findings for the Scientific to support NEMBA Authority. regulations. Number of large (>R2 Two projects operational 100% achieved. Two million) cooperative (BioGaps and Deep projects operational research and assessment Secrets) and one new (BioGaps and Deep programmes that have proposal (GEF 6). Secrets) and one new delivered knowledge and proposal (GEF 6). data.

Annual Report I 2018/19 PREDETERMINED OBJECTIVES REPORT 2017/18 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2017/18 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 5: PROVIDE BIODIVERSITY POLICY ADVICE AND ACCESS TO BIODIVERSITY INFORMATION; AND, SUPPORT FOR CLIMATE CHANGE ADAPTATION 5.1: Tools to support Number of tools and Two environmental 100% achieved. Two tools management and knowledge resources decision support tools produced: the Biodiversity conservation of biodiversity developed to support produced. Stewardship Guideline; and developed mainstreaming of an environmental decision and applied. biodiversity assets and support tool providing ecological infrastructure the minimum standards in production sectors for the consideration of and natural resource environmental aspects management. in the preparation or review of municipal Spatial Development Frameworks (SDFs). Three knowledge 100% achieved. Three resources developed and knowledge resources disseminated. developed and disseminated: a factsheet on Using CBA Maps to support land-use planning and decision- making; a factsheet on Biodiversity Providing Jobs; and a factsheet on Biodiversity Stewardship for Communities. 75 Number of coordination Five learning or 100% achieved. Five or learning mechanisms coordination events learning or coordination convened to share lessons convened. events convened: the and build capacity among 15th National Biodiversity provincial, municipal or Planning Forum; the other relevant decision EI Dialogue; the joint makers. Biodiversity Information Management and Foundational Biodiversity Information Programme Forum; the 2nd National Biodiversity Stewardship Conference; and the Provincial and Metro Biodiversity Planning Working Group. Four training sessions 100% achieved. Four convened. training sessions: Protected Area Expansion: Legal Capacity Building; Biodiversity Offsets; Fitness for Use of Biological Data; and Growing Together: Thinking and Practice of Natural Resource Management Practitioners Integrating Social Ecological Systems.

South African National Biodiversity Institute PREDETERMINED OBJECTIVES REPORT 2017/18 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2017/18 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 5: PROVIDE BIODIVERSITY POLICY ADVICE AND ACCESS TO BIODIVERSITY INFORMATION; AND, SUPPORT FOR CLIMATE CHANGE ADAPTATION (CONTINUED) 5.2: Access to biodiversity Number of biodiversity An increase of 58 000 100% Achieved. An data, information and records published. records published. increase of 58 000 records knowledge provided. published. 5.3: Scientific advice to Per centage of policy 100% of relevant written 100% Achieved. 100% of support national and requests from DEA, requests from DEA and relevant written requests international policy provinces, other organs of state responded to. processes provided. municipalities and other responded to within organs of state responded timeframe stipulated. to within timeframe stipulated in the request.

5.4: Policy support on An effectiveN ational Lessons and experience 100% achieved. Lessons climate change Implementing Entity to from NIE projects and experience from NIE adaptation provided the Global Adaptation captured to inform four projects were shared at to inform national and Fund shares lessons fora. four fora. international decision and experiences on a making. number of national and international platforms to inform climate change adaptation policy. Number of biodiversity One biodiversity sector 100% achieved. One sector tools into tool into which Climate biodiversity sector tool which Climate Change Change Adaptation will into which Climate 76 Adaptation has been be mainstreamed is Change Adaptation will be mainstreamed. identified. mainstreamed is identified.

Annual Report I 2018/19 PREDETERMINED OBJECTIVES REPORT 2017/18 Strategic Objective (s) Key Performance Planned Target Actual Achievement Deviation from Indicators 2017/18 2018/19 (Achieved, Planned Target to Partially Achieved, Actual Achievement Not Achieved, Exceeded Target and Modification) PROGRAMME 6: PROVIDE HUMAN CAPITAL DEVELOPMENT, BIODIVERSITY EDUCATION AND AWARENESS IN RESPONSE TO SANBI’S MANDATE 6.1: A transformed and Number of black 100 professionals 100% achieved. Mindful suitably skilled workforce for biodiversity developed through of the Minister’s approval the biodiversity is developed. professionals developed structured internships (November 2017) to through human and post-graduate reduce the internship and capital development studentships and a studentship component of initiatives including fellowship programme. this target to 73. structured internships, post-graduate studentships and a fellowship programme for the achievement of a transformed and skilled workforce in the biodiversity sector. Number of beneficiaries 1 000 beneficiaries Exceeded Target. The target of 1 000 has participate in the participate in Biodiversity been exceeded by 139, Biodiversity Careers Careers Programme. as a result a total of 1 139 Programme aimed at beneficiaries participated. attracting young people The main reason for into the biodiversity exceeding the target sector. is because additional funding was secured through WWF. Another factor is the opening of the 77 Kwelera National Botanical Garden, which created opportunities to work with schools in the area. 6.2: All national botanical Number of users 52 000 beneficiaries of Exceeded target. The annual target of 52 000 gardens are promoted and beneficiaries of garden and school-based has been exceeded as a and used as platforms for botanical gardens programmes have been total of 53 179 beneficiaries biodiversity awareness, and school-based reached. have been reached. The education and recreation. programmes for target was exceeded education, awareness, because of the investment training and recreation to promote the newly have been increased developed Biodiversity Education Programme at certain Education Centres. 6.3: Civil society is engaged Number of platforms Two platforms 100% achieved. The to contribute to science, facilitated for civil strengthened and annual assessment of monitoring and biodiversity society engagement facilitated. iSpot records; review of conservation. that contribute to SABAP contract were fully biodiversity monitoring achieved. and biodiversity conservation.

South African National Biodiversity Institute 78

Annual Report I 2018/19 PB

governance reports South African National Biodiversity Institute CORPORATE GOVERNANCE STATEMENT: 2018/19

Corporate governance is the set of processes, customs, APPOINTMENT AND COMPOSITION OF THE BOARD policies, laws and institutions affecting the way a According to Section 15 of the National Environmental corporation (or company) is directed, administered or Management: Biodiversity Act, 10 of 2004, the SANBI 80 controlled. An important theme of corporate governance Board Members are appointed by the Executive Authority is the nature and extent of accountability of particular for a term of three years. In terms of the Public Finance individuals in the organisations, and the mechanisms that Management Act (PFMA) the Board is the Accounting try to reduce or eliminate the principal-agent problem. Authority of the Institution. Members of the Executive Corporate governance also includes the relationships Management Committee (EXCO) attend Board meetings among the many stakeholders involved and the goals by invitation. for which the corporation is governed. In contemporary The Board meets quarterly or whenever required for business corporations, the main external stakeholder specific extra-ordinary meetings. The business of the groups are shareholders, debt holders, trade creditors, Board and its functions are conducted in line with the suppliers, customers and communities affected by the approved Board Manual/Charter. The Board induction is corporation’s activities. Internal stakeholders are the conducted on appointment of the new Board members. board of directors, executives and other employees. The focus areas of the Induction sessions usually include The South African National Biodiversity Institute (SANBI) the following: subscribes to and is committed to complying with the principles and standards of integrity and accountability • Broad introduction of SANBI; expressed in the Public Finance Management Act, • Legal mandate of the Institute; relevant National Treasury Regulations, and where • Financial position; applicable and practical, the King IV Report principles • Enterprise Risks Management; and recommendations on Corporate Governance. The Institute enforces King VI principles and good ethical • Fund raising strategy and sustainability; practices through the leadership and guidance of the • Information Communication Technology Governance SANBI Board. Framework implementation;

The Institute’s Board, its Committees and the Executive • Human Resources Programme; Management Committee (EXCO) ensures that the • Marketing and Communication initiatives and Institute uphold and complies with these principles. activities;

Annual Report I 2018/19 THE SANBI BOARD MEMBERS FOR THE PERIOD 1 APRIL 2018 – 31 MARCH 2019 Ms M.E. Magomola (Board Chairperson) (01/04/2018 – 31/05/2018) Dr B. van Wilgen Dr S.T. Cornelius (01/06/2018 – 30/09/2018) Dr J.M. Matjila (Board Chairperson) (01/06/2018 – 30/09/2018) Ms N.N. Mnqeta (01/04/2018 – 30/09/2018) Mr S. Gounden (01/04/208 – 30/09/2018) Ms B.D. Ngidi (01/04/2018 – 30/09/2018) Ms T. Godongwana Ms S. Mancotywa (DEA representative) (01/04/2018 – 30/09/2018) Dr Y. Seleti (DST representative) Ms N. Mngomezulu (01/06/2018 – 31/03/2019) Ms B.D. Ferguson (Board Chairperson) (01/10/2018 – 31/03/2019) Dr L.T. Luthuli (01/10/2018 – 31/03/2019) Dr C.G. Olver (01/10/2018 – 31/03/2019) Ms V.J. Klein (01/10/2018 – 31/03/2019) Ms J. Hermans (01/10/2018 – 31/03/2019) Ms L. Makotoko (DEA representative) (01/10/2018 – 31/03/2019) Dr M. Rampedi (Chief Executive Officer) (ex officio)

• Five-year Corporate Strategic Plan; members were asked to complete a Self-Assessment • Annual Performance Plan, and Questionnaire to determine their perceptions of the • Capex, Opex and Projects Budgets. strengths and weaknesses of the Board in the context of their fiduciary accountability to provide direction, The Board consists of not fewer than seven and not more guidance and governance of the Institute. The Board than nine members who are appointed by the Minister of 81 submitted the final adopted assessment report to Environment, Forestry and Fisheries (formerly DEA). The the Minister of Environment, Forestry and Fisheries, Board further includes the Director-General, or an official highlighting successes and challenges during the year. of the Department Environment, Forestry and Fisheries The assessment report was accepted by the Minister (formerly DEA) designated by the Director-General, and and she expressed her satisfaction in respect of the the Chief Executive Officer of the SANBI, as an ex officio performance of the Board during the reporting period, member. i.e. 2018/19 financial year.

FIDUCIARY DUTIES BOARD COMMITTEES With regard to fiduciary duties, the SANBI Accounting For operational effectiveness, the Board has appointed Authority exercises the duty of skill and care in the quest Committees for key functional areas of the Institute to ensure reasonable protection of the assets of the entity. in line with their qualifications, expertise and skills. The roles of the Chairperson and Chief Executive Officer These Committees comprise members of the Board do not vest in the same person; the Board Chairperson is a and Advisors/Experts who are well versed in their lines non-executive member of the Institute. The Chairperson of business. The Advisor/Expert appointments are and Chief Executive Officer with the support of the Board, determined by the Board. All Committees of the Board are the Committees and EXCO ensure that the mandate and chaired by members of the Board. Any Board member may objectives of the Institute are achieved. Implementation request or be requested to attend any other Committee of the mandate is evaluated by the Department of meeting that he/she is not a member of. A framework Environmental Affairs and progress reports are tabled at for Committees’ responsibilities was developed to ensure the Portfolio Committee for Environmental Affairs (PCEA) focused oversight of each Committee and to avoid on a regular basis. duplication of reporting lines and conflicting decisions BOARD ASSESSMENT being made. Each Committee mandate/activities are It is expected that the performance evaluation of the guided by the Terms of Reference/Charters approved by Board should be performed on an annual basis. Board the Board.

South African National Biodiversity Institute Committee 01 April 2018 to 31 March 2019 Audit and Risk Committee # Dr S.T. Cornelius (Chairperson) (01/04/2018 – 30/09/2018)

(ARC) Ms V.J. Klein (Chairperson) (01/10/2018 – 31/03/2019) Ms T. Godongwana (Board Member) Dr C.G. Olver (Board Member) (01/10/2018 – 31/03/2019) Dr L.T. Luthuli (Board Member) (01/10/2018 – 31/03/2019) Ms L. Makotoko (Board Member) (01/10/2018 – 31/03/2019) Mr J. Makoro (Advisor/Expert) Mr T. Zororo (Advisor/Expert) Mr G.J. Dladla (Advisor/Expert) (01/07/2018 – 30/09/2018) Dr M. Rampedi (CEO) (ex officio) Ms. E. Makau (DEA: Chief Financial Officer) (ex officio) Ms L. Sithole (Chief Financial Officer) (ex officio) Governance, Strategy and Ethics Mr S. Gounden (Chairperson) (01/04/2018 – 30/09/2018) Committee Dr L.T. Luthuli (Chairperson) (01/10/2018 – 31/10/2018) (GSE) Dr J.M. Matjila (Board Member) (01/04/2018 – 30/09/2018) (disbanded in November 2018) Ms B.D. Ngidi (Board Member) (01/04/2018 – 30/09/2018) The new Board appointed on 1 October 2018 Ms N. Mngomezulu (Board Member) (01/10/2018 – 31/03/2019) presented an opportunity to review its governance structure and the terms of reference of all the Ms J. Hermans (Board Member) (01/10/2018 – 31/03/2019) committees. The Board took the decision that matters that were dealt with by the GSE should be Ms L. Makotoko (Board Member) (01/10/2018 – 31/03/2019) 82 shared amongst the other three committees to avoid overlaps and duplications, particularly procurement Dr M. Rampedi (Chief Executive Officer) (ex officio) matters, which were dealt with between the GSE and the Audit and Risk Committee. Mr M. Khoahli (Chief Corporate Officer) (in attendance) Human Resources and Dr J.M. Matjila (Chairperson) (01/04/2018 – 31/05/2018) Remuneration Committee Dr Y. Seleti (Chairperson) (01/06/2018 – 31/03/2019) (HR and REMCO) Ms B.D. Ngidi (Board Member) Ms T. Godongwana (Board Member) Ms V.J. Klein (Board Member) Ms J. Hermans (Board Member) Ms L. Makotoko (Board Member) Ms N. Mngomezulu (Board Member) Dr M. Rampedi (Chief Executive Officer) (ex officio) Mr. M. Netshiombo (Chief Director: Human Resources) (in attendance)

THE ROLE OF THE COMMITTEES IS MAINLY TO ADVISE THE BOARD ON: 1. The Institute’s mandate; 2. The strategic direction of the Institute; 3. The implementation of the Corporate Strategic Plan and the Annual Performance Plan; 4. The monitoring and evaluation of key performance objectives; and 5. Establishing and approval of budgeting requirements. Each Committee operates within the approved Terms of Reference, which are reviewed annually.

Annual Report I 2018/19 Committee 01 April 2018 to 31 March 2019 Research, Development and Ms N.N. Mnqeta (Chairperson) (01/04/2018 – 30/09/2018) Innovation Committee Dr C.G. Olver (Chairperson) (01/10/2018 – 31/03/2019) (RD and I) Prof. B. van Wilgen (Board Member) Dr Y. Seleti (Board Member) Ms S. Mancotywa (Board Member) (01/04/2018 – 30/09/2018) Ms N. Mgomezulu (Board Member) (01/04/2018 – 30/09/2018) Dr L.T. Luthuli (Board Member) (01/04/2018 – 30/09/2018) Ms J. Hermans (Board Member) (01/04/2018 – 30/09/2018) Prof C. Chimimba (Independent member) (01/04/2018 – 30/09/2018) Dr L. Dziba (Independent member) (14/01/2019 – 31/03/2019) Prof. M. Muasya (Independent member) (14/01/2019 – 31/03/2019) Dr M. Rampedi (Chief Executive Officer) (ex officio) Ms. C. Mbizvo (Head of Biodiversity Research and Policy Advice Branch (in attendance)

#. As required by Treasury Regulation 27, the Board appointed an Audit and Risk Committee to assist with the discharge of its duties. The terms of reference of this Committee are approved by the Board. The Committee meets four times per year and one extra-ordinary meeting is held during the end of May annually, to consider the draft Annual Financial Statements.

BOARD MEETINGS Number of meetings each member attended Names 30 May 15 July 12 Sept 26 Sept 30 Nov 13 Feb Total 83 2018 2018 2018 2018 2018 2019 1. Ms M.E. Magomola (Board √ 1 Chairperson) Appointed as SANParks Board Chairperson on 01 June 2018 2. Dr J. Matjila (Board Chairperson from √ √ √ √ 4 01/06/2018 to 30/09/2018) 3. Dr S.T. Cornelius √ √ √ √ 4 4. Ms N.N. Mnqeta √ √ √ √ 4 5. Ms B.D. Ngidi √ √ √ √ 4 6. Mr S. Gounden √ - √ √ 3 7. Ms T. Godongwana - √ √ √ √ - 4 8. Prof. B. van Wilgen √ √ √ - √ - 5 9. Dr Y. Seleti ------0 10. Ms S. Mancotywa √ - √ √ 3 11. Ms N. Mngomezulu √ √ √ √ √ 5 (01/06/2018 – 31/03/2019) 12. Ms B.D. Ferguson √ √ 2 (01/10/2018 – 31/03/2019) 13. Dr L. Luthuli √ √ 2 (01/10/2018 – 31/03/2019) 14. Dr C. Olver √ √ 2 (01/10/2018 – 31/03/2019) 15. Ms V. Klein √ √ 2 (01/10/2018 – 31/03/2019)

South African National Biodiversity Institute BOARD MEETINGS (continued) Number of meetings each member attended (continued) Names 30 May 15 July 12 Sept 26 Sept 30 Nov 13 Feb Total 2018 2018 2018 2018 2018 2019 16. Ms J. Hermans √ √ 2 (01/10/2018 – 31/03/2019) 17. Ms L. Makotoko √ √ 2 (01/10/2018 – 31/03/2019) 18. Dr M. Rampedi (CEO) (ex officio) √ - √ √ √ √ 5

AUDIT AND RISK COMMITTEE Number of meetings each member attended

Names 26 April 30 May 27 July 28 Aug 31 Oct 29 Jan 06 Mar Total 2018 2018 2018 2018 2018 2019 2019 1. Dr S.T. Cornelius √ √ √ √ 4 2. Ms T. Godongwana √ - √ √ - √ √ 5 3. Mr T. Zororo √ √ √ - 3 4. Mr J. Makoro √ √ √ - 3 5. Mr G.J. Dladla √ - 1 (01/07/2018 – 31/03/2019) 6. Mr S. Gounden √ 1 Invited to 1 meeting 7. Ms V. Klein √ √ √ 3 84 8. Dr C. Olver √ √ - 2 9. Dr L. Luthuli √ √ 2 10. Ms L. Makotoko √ - 1 11. Dr M. Rampedi (CEO) (ex officio) √ √ √ √ √ √ √ 7

GOVERNANCE, STRATEGY AND ETHICS COMMITTEE Number of meetings each member attended Names 09 May 2018 11 September 2018 23 October 2018 Total 1. Mr S. Gounden √ √ 2 2. Ms B.D. Ngidi √ √ 2 3. Dr J. Matjila √ 1 4. Ms N. Mngomezulu √ √ 2 5. Dr L. Luthuli √ 1 6. Ms J. Hermans √ 1 7. Ms L .Makotoko √ 1 8. Dr M. Rampedi (CEO) (ex officio) √ √ √ 3

Annual Report I 2018/19 HUMAN RESOURCE AND REMUNERATION COMMITTEE Number of meetings each member attended Names 15 29 16 10 25 25 Oct 04 Nov 30 Jan 13 Mar Total May May Aug Sept Sept 2018 2018 2019 2019 2018 2018 2018 2018 2018 1. Dr J. Matjila √ √ 2 2. Ms B.D. Ngidi √ √ √ √ √ 5 3. Dr Y. Seleti - √ √ √ - - √ √ √ 5 4. Ms T. Godongwana √ √ √ - √ 3 5. Ms V. Klein √ √ √ √ 3 6. Ms J. Hermans √ √ √ √ 3 7. Ms L. Makotoko √ - √ - 2 8. Ms N. Mngomezulu √ √ 3 9. Dr M. Rampedi √ √ √ √ √ √ √ √ - 8 (CEO) (ex officio)

RESEARCH, DEVELOPMENT AND INNOVATION COMMITTEE MEETINGS Number of meetings each member attended Names 16 May 21 August 24 October 23 January Total 2018 2018 2018 2019 1. Ms N.N. Mnqeta √ √ 2 2. Prof. B. van Wilgen √ √ √ - 3 3. Ms S. Mancotywa √ √ 2 4. Dr Y. Seleti - - - - 2 5. Prof. C.T. Chimimba √ √ 4 85 6. Dr L. Dziba Prof. M Muasya √ - √ 4 (14/01/2019 – 31/03/2019) 7. Dr C. Olver √ √ 2 8. Ms T. Godongwana √ 1 9. Ms N. Mngomezulu √ 1 10. Dr L. Luthuli √ 1 11. Ms J. Hermans √ 1 12. Prof. M. Muasya √ 1 (14/01/2019 – 31/03/2019) 13. Dr M. Rampedi (CEO) √ √ √ √ 4 (ex officio)

MANAGEMENT STRUCTURE • Directors and subject specialists are invited as/when required to present on specific subjects. The Executive Management Committee (EXCO) comprises of the following: This Committee meets monthly and also meets on an ad hoc basis as deemed necessary by the Chairperson. • Chief Executive Officer (as Chairperson); The role of the Committee is to ensure the co-ordinated • Head of Biodiversity Science and Policy Advice; and efficient execution of all functions delegated to it by • Chief Financial Officer, Chief Corporate Officer; the Board. EXCO operations are guided by its approved Terms of Reference. • Chief Directors; The management and administration structure of the • Managing Director of the National Zoological Garden; Institute is geographically decentralised because of the • Chair of the Management Committee (MANCO); and wide geographical spread and activities of its various

South African National Biodiversity Institute units. The Head of each Unit is called a ‘Head of Cost of the assessment were reviewed by the Audit and Centre’ (HOCC). Management Committee (MANCO), Risk Committee and subsequently approved by the predominantly comprising of Directors, plays a role SANBI Board. The continuous identification of emerging of advising EXCO in specific matters, development risks done as part of risk management monitoring of new policies/procedures/guidelines and review of thus transmitted into improvement in the Institute’s organisational policies. performance.

Implicit in the concept is a substantial measure of An Enterprise Risk Management (ERM) system, BarnOwl, delegation of both responsibility and authority, which has been implemented and is being used to monitor in turn requires effective control and evaluation systems. progress on the risk action plans. The Business Continuity Both financial and management responsibilities are Plan (BCP) and the Disaster Recovery Plan (DRP) have delegated and clearly communicated to the HOCCs. been implemented and progress in this regard is regularly These officers are actively involved in the budget reported to the Audit and Risk Committee. Based on development and take responsibility for the disciplined the mature ERM culture within SANBI the Combined management of their cost centre budgets within clearly Assurance Model was developed and is being used defined policies, procedures and Delegations of Authority to report on the adequacy and effectiveness of all the (DOA) approved by the Board. assurance providers to the Audit and Risk Committee on a quarterly basis. AUDIT The Risk Management and Fraud Prevention Committee The Auditor-General of South Africa (AGSA) is the (RMFPCom), which is under the auspices of the Audit external auditor of SANBI in terms of the Public Audit and Risk Committee and chaired by the Chief Corporate Act, No. 25 of 2004. The Institution has contracted a Officer, adjudicates on alleged fraud cases reported private audit firm, Mazars, to carry out internal audit through the whistle-blowing system or other approved functions for a period of five years. The Board, through means. This subcommittee functions according to the the Audit and Risk Committee, exercises oversight on approved Terms of Reference. The Fraud Prevention financial reporting and internal control systems. The 86 Policy and Plan are in place to provide mechanisms Internal Auditors (IA) report directly to the Audit and Risk for the implementation of fraud prevention. In light of Committee (ARC) according to the approved Internal the then drought in the Western Cape based national Audit Charter. Included in the Internal Audit Charter is botanical gardens, a Water Management Committee was a structured internal audit approach, premised on the established to manage and monitor the water crisis. The International Standards for the Professional Practice of Institute’s water and fire management plans also cover Internal Auditors (ISPPIA) as prescribed by the Institute of other affected provinces. Internal Auditors (IIA). A Whistle-Blowing Hotline is fully functional and is Furthermore it is the requirement of Treasury Regulation administered and managed by KPMG. KPMG reports 27.2.7 that an IA must prepare, in consultation with and any cases of fraud or misconduct to management and for approval by the Audit and Risk Committee, a risk- Internal Auditors for investigation if warranted. based three-year rolling IA Plan. Cases of loss and/or damages to assets are recorded into a ENTERPRISE RISK MANAGEMENT (ERM) Loss Control Register and dealt with by the Management The Institute acknowledges that it does not operate Liability Assessment Subcommittee. Sanctions are in a risk-free environment; therefore it is imperative for always administered in cases of proven negligent losses management to ensure that effective internal controls are and damages that are ascribed to recklessness and put in place to mitigate the risks. The Institute continues carelessness. to implement Risk Management processes as per the DELEGATION OF AUTHORITY (DOA) approved Risk Management Policy. A comprehensive risk assessment was conducted with Executive Management. The Board approved the Delegation of Authority The assessment focused on risks at strategic and Framework for effective operational requirements. operational level, which forms the basis for the Internal This clarifies lines of authority and powers for various Audit plans. The assessment was aligned to the annual transactions the Institute undertakes. The DOA is performance plans to ensure that efficient management regularly reviewed and amended to suit the operations of risk contributes to improved performance. The results of the Institute and for alignment with National Treasury

Annual Report I 2018/19 Instructions and other Regulations, especially the • Promotion of equal opportunity and fair treatment Procurements and Cost Containment Guidelines. in employment through the elimination of unfair discrimination; INTERNAL CONTROL SYSTEMS • Implementing affirmative action measures to redress Internal control is a process, effected by an entity’s the barriers in employment experienced by designated Board of Directors, management, and other personnel, groups to ensure their equitable representation in all designed to provide reasonable assurance regarding the occupational categories and levels in the workplace; achievement of objectives relating to the following areas: • Accommodation of physically challenged people • Operations – effectiveness, efficiency, safeguarding through modification and adjustment of the physical of assets. working environment; and • Reporting – reliability, timeliness, transparenc. • Attraction, development and retention of staff • Compliance – within regulatory environment. members with emphasis on those from designated Financial and operational systems of internal control are groups. adhered to as required by applicable Regulations and SANBI strives to achieve its Employment Equity Vision Laws. Management has a fundamental responsibility to through the following initiatives: develop and maintain effective internal control. These • Implementation of all the critical success factors for controls are designed to provide reasonable assurance effective Employment Equity transformation; that transactions are concluded in accordance with management authority, assets are protected and the • Provision of all necessary personnel and financial financial transactions are properly recorded. resources;

MANAGEMENT OF INFORMATION COMMUNICA- • Utilising the SANBI structures to consult and communicate with all employees, either directly or TION TECHNOLOGY indirectly; and The Board is responsible for Information Communication 87 • Putting in place the enabling systems and working Technology (ICT) governance. The Board delegated environment geared towards the maximisation of aspects of oversight of ICT governance to the Audit and advancement of persons from designated groups. Risk Committee. There is an approved SANBI Information Technology Policy Framework (Principles & Guidelines) • Employee participation is encouraged by putting best based on the premise that ICT governance exists to inform practices in place to foster good and co-operative and align decision making for information technology relationships and employee participation at all levels planning, policy and operations in order to meet business of the Institute. Union representation, staff meetings, objectives, ascertain that risks are managed appropriately and task teams are all instrumental in facilitating and verify that resources are being used responsibly and participation. strategically. There is an ICT Governance Framework with CODE OF CONDUCT an implementation plan that is monitored by the Audit A Code of Conduct that applies to all staff members is and Risk Committee on a quarterly basis. An ICT Steering implemented as approved. The Code of Conduct facilitates Committee was established at a management level sound business ethics in the Institute and plays an important to deal with ICT Governance and advise EXCO on ICT role in defining the organisational culture and in governing strategic matters. effective discipline within the Institute. It is a standard EMPLOYMENT EQUITY PLAN annexure to all letters of appointment to ensure that new The Employment Equity Plan in SANBI is monitored by staff members are well informed. Board members are the Employment Equity and Training Committee. The subject to an approved Code of Conduct. primary aim of the Employment Equity Plan is to achieve CONFLICT OF INTEREST the following: As part of the appointment protocol, all new staff members • Compliance with the provisions and legal of the Institute are obliged to complete a Declaration on requirements of the Employment Equity Act No. 55 of Conflict of Interest. Management sign this declaration 1998; in all meetings. The Bids Committee members sign the

South African National Biodiversity Institute declaration in every procurement adjudication meeting. All Board members are, in keeping with the PFMA, required to complete a Disclosure of Interest declaration annually and at every Board and Subcommittee meeting. Registers of declaration of interest are kept by the Institute.

SUPPLY CHAIN MANAGEMENT

During this financial year, the Institute updated and aligned all procurement systems, policies, processes and practices with PFMA and Treasury prescripts on Supply Chain Management. SANBI complied with the reporting requirements of the Department of Environmental Affairs (DEFF since June 2019) and National Treasury by regularly reporting on the supply chain management system activities.

LEGISLATIVE FRAMEWORK

The Institute, being a Section 3A Public Entity, has to comply with a number of laws, including:

• National Environmental Management: Biodiversity Act No. 10 of 2004;

• Labour Relations Act No. 66 of 1995;

• Basic Conditions of Employment Act No. 75 of 1997;

• Employment Equity Act No. 55 of 1998; 88 • Skills Development Act No. 97 of 1998;

• Skills Development Levies Act No. 9 of 1999;

• Public Finance Management Act No. 1 of 1999 (PMFA);

• Occupational Health and Safety Act No. 85 of 1993;

• Generally Recognised Accounting Practice (GRAP);

• Compensation for Occupational Injuries and Diseases Act No. 130 of 1993;

• Promotion of Access to Information Act No. 2 of 2000;

• Government Immovable Asset Management Act No. 19 of 2007; and

• Protection of Personal Information Act No. 4 of 2013.

Ms Carmel Mbizvo

Acting SANBI Chief Executive Officer annual financial statements

INDEX

The reports and statements set out below comprise the financial statements presented to the parliament:

Page General Information 90 Statement of Responsibility of the Board 91 Audit and Risk Committee Report 92 Report of the Auditor-General of South Africa (AGSA) 94

Annexure–Auditor-General’s responsibility for the audit 100 89 Report of the Accounting Authority 101 Statement of Financial Position 104 Statement of Financial Performance 105 Statement of Changes in Net Assets 106 Cash Flow Statement 107 Statement of Comparison of Budget and Actual Amounts 108 Accounting Policies 110 Notes to the Financial Statements 134 The following supplementary information does not form part of the financial statements and 170 is unaudited: Annexure A - Project sponsorships and donations

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

General Information

Country of South Africa incorporation and domicile

Controlling entity Department of Environmental Affairs

Auditors Auditor-General South Africa

Nature of business and SANBI plays a leadership role in: principal activities • Generating, coordinating and interpreting the knowledge and evidence required to support policies and decisions relating to all aspects of biodiversity.

• The human capital development strategy of the sector.

SANBI also manages the national botanical gardens and the National Zoological Garden as windows to South Africa’s biodiversity for recreation, education and research purposes.

Members of the board Ms B. Ferguson (Board Chairperson 01/10/18 – 31/03/19) Dr M. Rampedi (Chief Executive Officer) (ex officio) Prof. B. van Wilgen (01/04/18–31/03/19) Ms T. Godongwana (01/04/18–31/03/19) Ms N. Mngomezulu (01/06/18–31/03/19) 90 Dr T. Luthuli (01/10/18–31/03/19) Dr C Olver (01/10/18–31/03/19) Ms V. Klein (01/10/18 – 31/03/19) Ms J. Hermans (01/10/18–31/03/19) Dr Y. Seleti (01/04/18–31/03/19) Ms L. Makotoko (01/10/18–31/03/19) Ms M.E. Magomola (Board Chairperson 01/04/18–31/05/18) Dr J. Matjila [ 01/03/18–30/09/18 (Acting Board Chairperson 01/06/18 – 30/09/18)] Dr S.T. Cornelius (01/04/18–30/09/18) Ms N.N. Mnqeta (01/04/18–30/09/18) Ms B.D. Ngidi (01/04/18–30/09/18) Mr S. Gounden (01/04/18–30/09/18) Ms S. Mancotywa (01/04/18–30/09/18) Ms L. Makotoko (01/10/18–31/03/19

Registered office 2 Cussonia Avenue Brummeria Pretoria 0002

Bankers Pretoria 0001 Nedbank Limited ABSA Limited

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Statement of Responsibility of the Board

The South African National Biodiversity Institute (SANBI) was established in terms of the National Environmental Management: Biodiversity Act of 2004 (No. 10 of 2004) and is subject to the provisions of the PFMA 1999.

The PFMA requires the Accounting Authority (the Board) to ensure that SANBI keeps full and proper records of its financial affairs. The financial statements should fairly present the state of affairs ofSANBI, its financial results, its performance against predetermined objectives and its financial position at the end of the year in terms of the effective South African Standards of GRAP, including any interpretations, guidelines and directives issued by the ASB.

The financial statements are the responsibility of the Board. The External Auditors are responsible for independently auditing and reporting on the Financial Statements.

These financial statements are based on appropriate accounting policies, supported by reasonable and prudent judgements and estimates, and have been prepared on the going-concern basis. The Board has reviewed the SANBI’s cash flow forecast for the year ending 31 March 2020 and considered the potential long term resourcing risks and challenges faced by the Institute. In light of this review and the current financial position, the Board is satisfied that SANBI has adequate resources or has access to adequate resources to continue in operational existence in the short-term.

To enable the Board to meet the above-mentioned responsibilities, it sets standards and ensures implemention of systems of internal control. The controls are designed to provide cost-effective assurance that assets are safeguarded, and that liabilities and working capital are efficiently managed.

Policies, procedures, structures and approval frameworks provide direction, accountability and division of 91 responsibilities, and contain self-monitoring mechanisms. The controls throughout the SANBI focus on the critical risk areas identified by operational risk management and confirmed by Executive Management. Both Management and the Internal Auditors closely monitor the controls and actions taken to correct deficiencies as they areidentified.

Based on the information and explanations given by Management the advice received from the Internal Auditors, and discussions held with the Auditor-General of South Africa on the result of their audits, the Board is of the opinion that the internal accounting controls are partially effective, but efficient enough to ensure that the financial records may be relied on for preparing the financial statements and accountability for the assets and liabilities is maintained.

It has come to the attention of the Board that during the financial year under review, there was a breakdown in the functioning of the internal controls, procedures and systems at its acquired function, t h e National Zoological Garden, which is in the process of being integrated into the broader SANBI. Various measures were undertaken to mitigate the effects of the breakdown.

In the opinion of the Board, based on the information available to date, the financial statements fairly present the financialposition of SANBI as at 31 March 2019 and the results of its operations and cash flow information for the year.

The financial statements ofSANB I for the year ended 31 March 2019, which have been prepared on the going- concern basis, have been approved by the Board and signed on its behalf by:

Ms B. Ferguson Dr M. Rampedi (Board Chairperson) (Chief Executive Officer) (ex officio) 28 May 2019

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Audit and risk committee report

We are pleased to present our report for the financial year ended 31 March 2019.

Audit and Risk Committee Members and Attendance The Audit and Risk Committee composition is as tabled below and held meetings for the financial year under review: Name of Member Number of Meetings Meetings Attended Requested to Attend Dr S.T. Cornelius (Board Member and Chairperson) – Term ended 30 September 2018 4 3 Ms V. Klein (Board Member and Chairperson) – Appointed 01 October 2018 3 3 Ms T. Godongwana (Board Member) 7 5 Dr L. Luthuli (Board Member) – Appointed 01 October 2018 2 2 Dr C. Olver (Board Member) – Appointed 01 October 2018 2 2 Ms L. Makotoko (Board Member) – Appointed 01 October 2018 3 1 Mr T. Zororo (Advisor/Expert) – Term ended 30 September 2018 4 3 Mr J. Makoro (Advisor/Expert) – Term ended 30 September 2018 4 3 Mr G. Dladla (Advisor/Expert) – Appointed 01 July 2018 to 30 September 2018 2 1 Dr M. Rampedi (CEO and Board Member)* 7 7 Ms L. Sithole (Ex Officio : SANBI CFO)* 7 7

*By permanent invitation 92 Audit and Risk Committee responsibility

The Audit and Risk Committee reports that it has complied with its responsibilities arising from section 51(1)(a) of the PFMA and Treasury Regulation 27.1. The Audit and Risk Committee has adopted appropriate formal Terms of Reference as its Audit and Risk Committee Charter, has regulated its affairs in compliance with this Charter and has discharged all its responsibilities as contained therein.

The effectiveness of internal control

The system of internal controls is designed to provide cost effective assurance that assets are safeguarded and that liabilities and working capital are efficiently managed. The Audit and Risk Committee has evaluated all significant and material issues raised in reports issued by the Internal Audit Function, the Audit Report on the Annual Financial Statements, and management letter of the Auditor-General, and is concerned with the deterioration of the internal control environment. In line with the PFMA and the King Report on Corporate Governance, the Internal Audit Function and other assurance providers provided the Audit and Risk Committee and management with assurance that the internal controls are partially appropriate and effective for those areas included in the annual operational plan. This is achieved by means of the risk management process, as well as the identification of corrective actions and suggested enhancements to the controls and processes. The Audit and Risk Committee has evaluated the work performed by the Internal Audit Function and other assurance service providers. Based upon this evaluation, the Committee reports that the systems of internal controls for the period under review were partially effective and efficient and requires concerted effort by management. The work performed by the internal audit was based on an approved risk-based internal audit plan for the year under review. The internal audit function conducted the following reviews during the 2018/2019 financial year:

• Risk Management Process Review;

• Information Technology Review – IT Disaster Recovery;

• Performance information against objectives;

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

• Business Operations Program 4;

• Business Operations Program 5;

• Supply Chain Management;

• Asset Management; and

• Financial Control Review:

-- Human Resources Management.

-- Information Technology Review Business Continuity.

We are concerned with the evaluation of the internal control environment as communicated to us, and having consideration for the entity’s action plans to remedy the weaknesses and irregular expenditure reported during the current and previous financial years.

Evaluation of Financial Statements

The Audit and Risk Committee is satisfied with the content and quality of monthly and quarterly reports prepared in relation to the operations at the National Botanical Gardens but were concerned with those relating to the operations at the National Zoological Gardens. 93 The Audit Committee has: a) Reviewed and discussed the audited annual financial statements to be included in the annual report with the Office of the Auditor-General and the Accounting Authority; b) Reviewed the Auditor-General’s management letter and management’s response thereto; c) Reviewed accounting policies and practices; d) Reviewed significant adjustments resulting from the audit.

The Audit and Risk Committee considered the Auditor-General’s conclusions on the annual financial statements and is of the opinion that the audited annual financial statements be accepted and read together with the report of the Auditor- General.

Ms. Venete Klein Chairperson: Audit and Risk Committee

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Report of the auditor-general to Parliament on the South African National Biodiversity Institute

Report on the audit of the financial statements Qualified opinion 1. I have audited the financial statements of theS outh African National Biodiversity Institute set out on pages 104 to 169, which comprise the statement of financial position as at 31 March 2019, the statement of financial performance, the statement of changes in net assets, the cash flow statement and the statement of comparison of budget and actual amounts for the year then ended, as well as the notes to the financial statements, including a summary of significant accounting policies. 2. In my opinion, except for the effects of the matters described in the basis for qualified opinion section of this auditor’s report, the financial statements present fairly, in all material respects, the financial position of the South African National Biodiversity Institute as at 31 March 2019, and its financial performance and cash flows for the year then ended in accordance with the South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP) and the requirements of the Public Finance Management Act of South Africa, 1999 (Act no. 1 of 1999) (PFMA). Basis for qualified opinion

94 Irregular expenditure 3. The entity made payments in contravention of supply chain management requirements, which were not included in the irregular expenditure disclosed as required by section 55(2)(b)(i) of the PFMA. As the entity did not quantify the full extent of such irregular expenditure, it was impracticable to determine the resultant understatement of irregular expenditure of R17. 437 million as disclosed in note 35 to the financial statements. Revenue from exchange transactions 4. I was unable to obtain sufficient appropriate audit evidence (for example sales receipts, admission fee invoices and contracts or agreements) for revenue from exchange transactions. This was because adequate control processes were not in place to ensure that sufficient appropriate audit evidence is readily available for audit purposes. I was unable to confirm the revenue from exchange transactions by alternative means. Consequently, I was unable to determine whether any further adjustments were necessary relating to revenue from exchange transactions, stated at R183. 007 million in the statement of financial performance, or whether any further adjustments were necessary to the financial statements arising from revenue from exchange transactions not brought to account or incorrectly stated. Payables from exchange transactions 5. The entity did not account for all goods and services received but not yet paid for, while for some the entity accounted for month-end supplier statement balances instead of expenditure transactions. Consequently trade payables is understated by R10. 137 million, while operating expenditure is understated by R10. 102 million and accrued expenses by R0. 035 million. Additionally, there was an impact on the surplus for the period and on the accumulated surplus. Both trade payables and operating expenditure are further impacted as I was unable to obtain sufficient appropriate audit evidence regarding the following: Operating expenditure of R3. 782 million included in the disclosed balance of R242. 923 million in note 21 to the financial statements Trade payables of R1. 558 million as included in the disclosed balance of R25. 383 million in note 13 to the financial statements.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

I was unable to confirm the above by alternative means. Consequently, I was unable to determine whether any further adjustments were necessary to the financial statements arising from trade payables and operating expenditure not brought to account or incorrectly stated. 6. Other payables were erroneously raised, resulting in the overstatement of other payables by R4. 786 million and the overstatement of operating expenditure by the same amount. There was an impact on the surplus for the period and on the accumulated surplus. Furthermore, I was unable to obtain sufficient appropriate audit evidence (payables listings, supplier statements and reconciliations), for transactions of R5. 195 million included as other payables. This was because adequate control processes were not in place to ensure that sufficient appropriate audit evidence is readily available for audit purposes. I could not confirm these other payables by alternative means. Consequently, I was unable to determine whether any further adjustments were necessary to other payables, stated at R9. 684 million in note 13 to the financial statements, or to the financial statements arising from other payables not brought to account or incorrectly stated. 7. I was unable to obtain sufficient appropriate audit evidence regarding the following: Income received in advance of R2. 334 million, included in the disclosed balance of R2. 523 million in note 13 to the financial statements Accrued leave pay of R5. 412 million, included in the disclosed balance of R17. 051 million in note 13 to the financial statements. I was unable to confirm payables from exchange transactions by alternative means. Consequently, I was unable to determine whether any further adjustments were necessary to the financial statements arising from payables from exchange transactions not brought to account or incorrectly stated.

Context for the opinion 95 8. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities under those standards are further described in the auditor-general’s responsibilities for the audit of the financial statements section of this auditor’s report. 9. I am independent of the public entity in accordance with sections 290 and 291 of the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants and parts 1 and 3 of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA codes), as well as the ethical requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities in accordance with these requirements and the IESBA codes. 10. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified opinion. Emphasis of matters 11. I draw attention to the matters below. My opinion is not modified in respect of these matters. Restatement of corresponding figures 12. As disclosed in notes 36 and 37 to the financial statements, the corresponding figures for 31 March 2018 were restated as a result of errors in the financial statements of the entity at, and for the year ended, 31 March 2019. Transfer of function 13. As disclosed in note 38 to the financial statements, the National Zoological Garden (NZG) was transferred from the National Research Foundation (NRF) to the South African National Biodiversity Institute (SANBI) with effect from 1 April 2018. Contingencies 14. As disclosed in note 27 to the financial statements, the entity has disclosed a contingent asset of R7 146 million relating to a claim against a contractor for the construction of a new office building, repairs, renovations and upgrades at the KwaZulu-Natal Herbarium.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Other matter 15. I draw attention to the matter below. My opinion is not modified in respect of this matter. Unaudited supplementary schedules 16. The supplementary information set out on pages 170 to 171, i.e. annexure of the afs only, does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, do not express an opinion thereon.

Responsibilities of accounting authority for the financial statements 17. The board of directors, which constitutes the accounting authority, is responsible for the preparation and fair presentation of the financial statements in accordance with the SA Standards of GRAP and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

18. In preparing the financial statements, the accounting authority is responsible for assessing the South African National Biodiversity Institute’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting unless the appropriate governance structure either intends to liquidate the public entity or to cease operations, or has no realistic alternative but to do so.

Auditor-general’s responsibilities for the audit of the financial statements 19. My objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from 96 material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

20. A further description of my responsibilities for the audit of the financial statements is included in the annexure to this auditor’s report. Report on the audit of the annual performance report Introduction and scope 21. In accordance with the Public Audit Act of South Africa, 2004 (Act no. 25 of 2004) (PAA) and the general notice issued in terms thereof, I have a responsibility to report material findings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

22. My procedures address the reported performance information, which must be based on the approved performance planning documents of the public entity. I have not evaluated the completeness and appropriateness of the performance indicators included in the planning documents. My procedures also did not extend to any disclosures or assertions relating to planned performance strategies and information in respect of future periods that may be included as part of the reported performance information. Accordingly, my findings do not extend to these matters.

23. I evaluated the usefulness and reliability of the reported performance information in accordance with the criteria developed from the performance management and reporting framework, as defined in the general notice, for the following selected programmes presented in the annual performance report of the public entity for the year ended 31 March 2019:

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Programmes Pages in the annual performance report Programme 2–manage and unlock benefits of the 64–65 network of national botanical gardens as windows into South Africa’s biodiversity Programme 4–assess, monitor and report on the 66–67 state of biodiversity and increase knowledge for decision making including climate change

24. I performed procedures to determine whether the reported performance information was properly presented and whether performance was consistent with the approved performance planning documents. I performed further procedures to determine whether the indicators and related targets were measurable and relevant, and assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. 25. The material findings in respect of the usefulness of the selected programmes are as follows: Programme 2–manage and unlock benefits of the network of national botanical gardens as windows into South Africa’s biodiversity Indicator 2.2–percentage visitor numbers increased through expanded tourism-related activities and events in national botanical gardens 26. I was unable to obtain sufficient appropriate audit evidence that clearly defined the predetermined source information and method of collection to be used when measuring the actual achievement for the indicator. This was due to a lack of a clearly defined technical indicator description. I was unable to test whether the indicator was well-defined by alternative means. Programme 4–assess, monitor and report on the state of biodiversity and increase knowledge for decision making 97 including climate change Indicator 4.1.3–number of risk analyses conducted for invasive species 27. The planned indicator and target were for new risk analyses conducted, but the reported achievement referred to was risk assessments conducted. 28. I did not raise any material findings on the reliability of the reported performance information for these programmes: Programme 2–manage and unlock benefits of the network of national botanical gardens as windows into South Africa’s biodiversity Programme 4–assess, monitor and report on the state of biodiversity and increase knowledge for decision making including climate change. Other matters 29. I draw attention to the matters below. Achievement of planned targets 30. Refer to the annual performance report on pages 64 to 67 for information on the achievement of planned targets for the year and explanations provided for the under and over achievement of a number of targets. This information should be considered in the context of the material findings on the usefulness of the reported performance information in paragraphs 26 to 28 of this report. Adjustment of material misstatements 31. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of programme 2: manage and unlock benefits of the network of national botanical gardens as windows into South Africa’s biodiversity. As management subsequently corrected only some of the misstatements, I raised material findings on the usefulness of the reported performance information. Those that were not corrected are reported above.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Report on the audit of compliance with legislation Introduction and scope 32. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to report material findings on the compliance of the public entity with specific matters in key legislation. I performed procedures to identify findings but not to gather evidence to express assurance. 33. The material findings on compliance with specific matters in key legislations are as follows: Annual financial statements 34. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and were not supported by full and proper records, as required by section 55(1)(a) and (b) of the PFMA. Material misstatements identified by the auditors in the submitted financial statements were corrected and the supporting records were provided subsequently, but the uncorrected material misstatements and supporting records that could not be provided resulted in the financial statements receiving a qualified opinion. Expenditure management 35. Effective and appropriate steps were not taken to prevent irregular expenditure, as required by section 51(1)(b)(ii) of the PFMA. As reported in the basis for qualified opinion, the value disclosed in note 35 of the financial statements does not reflect the full extent of the irregular expenditure as the full extent of the irregular expenditure could not be quantified. The majority of the irregular expenditure disclosed in the financial statements was caused by non-compliance with supply chain regulations. Procurement and contract management 98 36. Sufficient appropriate audit evidence could not be obtained that goods and services with a transaction value above R500 000 were procured by inviting competitive bids or through the approval of deviations by the accounting officer where it was impractical to invite competitive bids, as required by treasury regulations 16A6.1 and 16A6.4. 37. Some construction contracts were awarded to contractors that were not registered with the Construction Industry Development Board or did not qualify for the contract in accordance with section 18(1) of the Construction Industry Development Board Act, 2000 (Act No. 38 of 2000) (CIDB Act). 38. Some bid documentation to procure commodities designated for local content and production, did not stipulate the minimum threshold for local production and content as required by the 2017 preferential procurement regulation 8(2). 39. Some commodities designated for local content and production were procured from suppliers who did not submit a declaration on local production and content, as required by the 2017 preferential procurement regulation 8(5). Other information 40. The accounting authority is responsible for the other information. The other information comprises the information included in the annual report. The other information does not include the financial statements, the auditor’s report and those selected programmes presented in the annual performance report that have been specifically reported in this auditor’s report. 41. My opinion on the financial statements and findings on the reported performance information and compliance with legislation do not cover the other information and I do not express an audit opinion or any form of assurance conclusion thereon. 42. In connection with my audit, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements and the selected programmes presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated. 43. I have nothing to report in this regard.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Internal control deficiencies 44. I considered internal control relevant to my audit of the financial statements, reported performance information and compliance with applicable legislation; however, my objective was not to express any form of assurance on it. The matters reported below are limited to the significant internal control deficiencies that resulted in the basis for the qualified opinion, the findings on the performance report and the findings on compliance with legislation included in this report. 45. Action plans to address the previous year’s audit findings were not sufficient, as findings identified in the previous year’s audit of commitments and the performance report recurred. 46. Management did not adequately review the financial statements before submission, which resulted in material misstatements identified in the submitted financial statements. Furthermore, adequate processes were not in place to ensure that sufficient appropriate audit evidence is readily available for audit purposes. 47. Management did not adequately review and monitor compliance with legislation to ensure fair, transparent and competitive procurement processes, specifically relating to the CIDB Act, local content and procurement that requires a formal tender process. 48. Management’s systems were not sufficient to account for all the visitors at the combined network of the South African National Biodiversity Institute’s botanical gardens during the financial year, as required by indicator 2.2. Furthermore, management failed to appropriately define the indicator during the performance planning period to ensure that they could appropriately measure and report on this indicator in a way that fairly presents its performance. 49. Management’s process was not adequate to identify the inconsistency between indicator 4.1.3 as described in the annual performance plan and annual performance report, and the description of the target in the annual performance report. 99

Auditor-General

Cape Town 30 August 2019

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Annexure–Auditor-general’s responsibility for the audit

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programmes and on the entity’s compliance with respect to the selected subject matters. Financial statements 2. In addition to my responsibility for the audit of the financial statements as described in this auditor’s report, I also: • identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting authority

100 • conclude on the appropriateness of the accounting authority’s use of the going concern basis of accounting in the preparation of the financial statements. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the South African National Biodiversity Institute’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of this auditor’s report. However, future events or conditions may cause an entity to cease continuing as a going concern

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Communication with those charged with governance 3. I communicate with the accounting authority regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit. 4. I also confirm to the accounting authority that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and, where applicable, related safeguards.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Report by the accounting authority

The Accounting Authority of SANBI hereby presents its report for the year ended 31 March 2019 to the Executive Authority and the Parliament of the Republic of South Africa.

Services rendered by SANBI The narrative section of this Annual Report gives a more in-depth discussion of key performance indicators and overview of programme performance. Key projects delivered during the period under review as well as services offered by the Institute are also discussed in the narrative section of this report laid out on pages 19 to 69.

Corporate governance arrangements Information pertaining to corporate governance is explained in the Corporate Review section of this Annual Report on pages 80 to 88.

Performance information In line with the requirements of National Treasury, performance targets are set on an annual basis and performance against these targets is reported to National Treasury through the Department of Environment Affairs on a quarterly basis after approval by the Board. The Department of Environment Affairs assessed the quarterly performance reports and gave SANBI feedback during the year under review.

Executive management’s interest in contracts In the current financial yearSANB I did not enter into any material contracts wherein its Executive Management had interest. 101

Preparation and presentation of the annual financial statements SANBI has adopted the South African Statements of Generally Recognised Accounting Practices (GRAP).

Financial highlights The financial position and performance of the operations and programme activities of SANBI are disclosed, with applicable notes, in the financial statements which form an integral part of this annual report. Material facts and circumstances that occurred between the accounting date and date of this report have been accordingly accounted for.

During the financial year, the operations of the National Zoological Gardens (NZG) were transferred to the Institute. The details of these newly transferred operations are as per note 38 to the annual financial statements. Furthermore the Institute entered into a co-management agreement over the Thohoyandou Botanical Garden. The effect of the agreement is to give SANBI effective control and responsibility for key decisions relating to the use and management of the garden. In light of this plant property and equipment to the value of R405 million were accounted for in SANBI during the financial year.

Financial Performance A surplus of R14.2 mil is reported on the statement of financial performance which is a decline of 81% from the previous financial year.

Total revenue as disclosed in the statement of financial performance increased by 32% year-on-year from R545 million to R721 million. Of this growth, 74% was attributable to the newly transferred operations of the NZG. The remaining 26% growth is attributable to concerted efforts to increase revenue generated through utilisation of Institutional resources.

The Institute relies mainly on three sources of income which are government grants, externally sourced funding towards projects and its own commercial operations. The main commercial operation is the entrance fees generated through the admission into the gardens.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Revenue The commercial activities generate 22% of the revenue of the Institute. Of these activities, the total expenditure of R707 million has increased by R225 million (47%) with 59% of the costs towards employee costs. The rate of increase of the expenditure is acceptable in light of the newly transferred operations of the NZG.

Financial Position Overall, Institute’s financial position is solvent with total assets exceeding total liabilities by R597 million and liquid with the cash reserves sufficient to meet the short-term needs as well as obligations arising from project funds received. The material movements noted during the financial year as follows: Financial position Current assets have increased by R30 million (7.8%) from the previous financial year mainly due to the cash in bank received towards externally funded projects. Non-current assets have grown by R39 million (10.5%) from the previous financial year emanating mainly from the additional items of property plant and equipment being acquired. Non-current liabilities have significantly increased by 102 R10.1 million (20%) from the previous financial year as a result of the valuation outcome of the annual post-retirement medical aid liability.

Cash flow For the year, the Institute received a total of R722 million from the government operational grant, project funders, donations and commercial operations. From this amount and other cash on hand R660m was paid to suppliers and employees. The net cash inflow resulting from the operational activities is thus R62m.

A further R42 million was paid out to investing activities resulting in net cash inflows of R20 million during the financial year. The total cash amount of R388 million has been fully committed against the ring-fenced bequest, externally funded projects and obligations of the Institute as detailed in the annual financial statements.

Budget Statement Budgeted targets on revenue from exchange transactions, which represents revenue generated through commercial activities was exceeded by R2.6 million (1.4%). Revenue from non-exchange transactions, representing projects did not achieve budget target by R22.2 million (3.9%) due to timing differences. Overall spending was well within the approved budget. Other variances are detailed on note 28 of the annual financial statements.

Restatement of previously reported 2018 results In addressing the qualification from the previous financial year, various corrections have been made to the 2018 financials. Certain expenditure items were re-classified into their appropriate accounts. Furthermore there were some restatements in non-current assets which led to an overall increase in the total cost of non-current assets recognised by R14 million and a new non-current assets category namely Infrastructure. The details of these are on notes 36 and 37 of the annual financial statements.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Address Registered office: south African National Biodiversity Institute 2 Cussonia Avenue Brummeria Pretoria 0002

Private Bag X101 Pretoria 0001

Auditors SANBI as a schedule 3A Public Entity, is audited by the Auditor-General South Africa.

103

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Statement of Financial Position

Figures in Rand Note(s) 2019 2018 Restated*

Assets Current assets Cash and cash equivalents 3 388 164 873 367 863 325 Receivables from exchange transactions 4 11 669 203 7 633 553 Biological assets 5 2 355 874 1 891 882 Inventories 6 9 378 874 6 100 869 Operating lease asset 927 701 865 881 Receivables from non-exchange transactions 7 775 371 2 194 084 413 271 896 386 549 594

Non-current assets Property, plant and equipment 8 309 103 777 271 364 069 Investment property 9 72 635 533 75 058 247 Heritage assets 10 17 906 324 17 906 324 Intangible assets 11 6 759 643 7 658 225 406 405 277 371 986 865 Total Assets 819 677 173 758 536 459 104 Liabilities Current liabilities Unspent conditional grants and receipts 12 74 375 294 65 456 255 Payables from exchange transactions 13 75 789 052 58 204 094 Provisions 14 8 679 277 6 150 771 Transfers payable (non-exchange) 15 2 871 916 21 404 158 161 715 539 151 215 278

Non-current liabilities Employee benefit obligation 16 54 562 000 45 627 000 Provisions 14 5 722 299 4 547 790 60 284 299 50 174 790 Total liabilities 221 999 838 201 390 068 Net assets 597 677 335 557 146 391 Accumulated surplus 597 677 335 557 146 391

*See Note 37

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Statement of Financial Performance

Figures in Rand Note(s) 2019 2018 Restated*

Revenue Revenue from exchange transactions Admission fees 105 909 254 69 614 434 Rent received 16 402 871 16 380 498 Interest received 26 572 017 20 845 952 Other income 17 26 682 489 10 282 258 Sales 5 581 685 2 493 099 Fair value gain less cost to sell on biological assets 1 416 410 2 533 359 Gain on foreign exchange 442 519 - Gain on disposal of assets - 264 716 Total revenue from exchange transactions 183 007 245 122 414 316

Revenue from non-exchange transactions Transfer revenue Government operational grant 18 472 651 000 369 228 000 Other grants, bequests, sponsorships and donations 19 52 410 947 54 059 294 Services in kind 13 607 137 - Total revenue from non-exchange transactions 538 669 084 423 287 294 105 Total revenue 721 676 329 545 701 610

Expenditure Employee related costs 20 (415 336 580) (290 511 480) Operating expenses 21 (242 922 695) (173 867 272) Depreciation and amortisation (31 699 280) (25 136 691) Lease rentals on operating lease (13 302 182) (746 946) Loss on disposal of assets (917 518) - Debt impairment 22 (458 909) (90 807) Impairment loss (2 788 030) 8 668 698 Loss on foreign exchange - (290) Total expenditure (707 425 194) (481 684 788) Surplus for the year 14 251 135 64 016 821

*See Note 37

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Statement of Changes in Net Assets

Figures in Rand Accumulated Total net surplus assets

Balance at 01 April 2017 493 129 570 493 129 570 Changes in net assets Surplus for the year 64 016 821 64 016 821 Total changes 64 016 821 64 016 821

Restated* balance at 01 April 2018* 557 146 404 557 146 404 Changes in net assets Surplus for the year 14 251 135 14 251 135 Gain on transfer of functions between entities under common control 26 279 796 26 279 796 Total changes 40 530 931 40 530 931 Balance at 31 March 2019 597 677 335 597 677 335

*See Note 37

106

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Cash Flow Statement

Figures in Rand Note(s) 2019 2018 Restated*

Cash flows from operating activities Receipts Government grants 472 651 000 369 228 000 Other grants, bequests, sponsorships and donations 61 329 986 104 656 891 Commercial and other income 188 616 408 114 670 118 722 597 394 588 555 009

Payments Employee costs (395 163 317) (268 226 296) Suppliers and other payments (265 003 325) (157 331 936) (660 166 642) (425 558 232) Net cash flows from operating activities 25 62 430 752 162 996 777

Cash flows from investing activities Purchase of property, plant and equipment 8 (40 050 559) (82 726 583) Proceeds from sale of property, plant and equipment 8 2 717 528 492 Purchase of investment property 9 (109 528) (359 559) Purchase of other intangible assets 11 (3 396 137) (7 425 757) 107 Purchases of heritage assets 10 - (205 200) Transfer of functions between entities under common control 38 1 424 303 - Net cash flows from investing activities (42 129 204) (90 188 607)

Net increase/(decrease) in cash and cash equivalents 20 301 548 72 808 170 Cash and cash equivalents at the beginning of the year 367 863 325 295 055 155 Cash and cash equivalents at the end of the year 3 388 164 873 367 863 325

*See Note 37

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Statement of Comparison of Budget and Actual Amounts

Budget on cash basis Approved Adjustments Final budget Actual Difference budget amounts on between final comparable budget and Figures in Rand basis actual

Statement of financial performance Revenue Revenue from exchange transactions Sales - - - 5 581 685 5 581 685 Admission fees 151 636 463 - 151 636 463 105 909 254 (45 727 209) Rent received 18 337 617 - 18 337 617 21 086 517 2 748 900 Interest received 14 418 621 - 14 418 621 26 572 017 12 153 396 Other income - - - 27 847 175 27 847 175 Proceeds on disposal of assets - - - 2 718 2 718 Total revenue from 184 392 701 - 184 392 701 186 999 366 2 606 665 exchange transactions

Revenue from non- 108 exchange transactions

Government grants 467 651 000 - 467 651 000 472 651 000 5 000 000 Other grants, bequests, 98 108 695 - 98 108 695 57 254 309 (40 854 386) sponsorships and donations Other transfer revenue 1 - - - 13 607 137 13 607 137 Total revenue from non- 565 759 695 - 565 759 695 543 512 446 (22 247 249) exchange transactions Total revenue 750 152 396 - 750 152 396 730 511 812 (19 640 584)

Expenditure Employee-related costs (412 429 209) - (412 429 209) (395 358 696) 17 070 513 Lease rentals on operating - - - (859 731) (859 731) lease Operating expenses (337 723 187) - (337 723 187) (301 811 721) 35 911 466 Total expenditure (750 152 396) - (750 152 396) (698 030 148) 52 122 248 Surplus before taxation - - - 32 481 664 32 481 664 Actual amount on - - - 32 481 664 32 481 664 comparable basis as presented in the budget and actual comparative statement

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019

Statement of Comparison of Budget and Actual Amounts

Budget on cash basis Approved Adjustments Final budget Actual Difference budget amounts on between final comparable budget and Figures in Rand basis actual

Reconciliation Basis difference Depreciation and amorisation (31 699 280) Loss on sale of assets (917 518) Non cash items (14 448 478)

Timing difference Capital expenditure 43 556 225 Unspent project committed (8 919 039) funds Adjustments for accrual basis 7 804 698 accounting entries

Actual amount in the 27 858 272 109 statement of financial performance

Reasons for material variances between budget and actuals amounts are detailed in Note 28.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1. Presentation of Financial Statements

The financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999).

These financial statements have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise. They are presented in South African Rand.

A summary of the significant accounting policies, which have been consistently applied in the preparation of these financial statements, are disclosed below.

These accounting policies are consistent with the previous period.

1.1 Presentation currency

These financial statements are presented in South African Rand, which is the functional currency of the entity.

1.2 Going concern assumption

These financial statements have been prepared based on the expectation that the entity will continue to operate as a going concern for at least the next 12 months.

1.3 sIGnificant judgements and sources of estimation uncertainty

In preparing the financial statements, management is required to make estimates and assumptions that affect the 110 amounts represented in the financial statements and related disclosures. Use of available information and the application of judgement is inherent in the formation of estimates. Actual results in the future could differ from these estimates, which may be material to the financial statements. Significant judgements include:

Trade receivables

The entity assesses its trade receivables for impairment at the end of each reporting period. In determining whether an impairment loss should be recorded in surplus or deficit, the surplus makes judgements as to whether there is observable data indicating a measurable decrease in the estimated future cash flows from a financial asset.

Provisions

Provisions were raised and management determined an estimate based on the information available. Additional disclosure of these estimates of provisions are included in Note 14–Provisions.

Post retirement benefits The present value of the post retirement obligation depends on a number of factors that are determined on an actuarial basis using a number of assumptions. The assumptions used in determining the net cost (income) include the discount rate. Any changes in these assumptions will impact on the carrying amount of post retirement obligations. The cost of defined benefit pension plans and other post employment medical benefits as well as the present value of the pension obligation is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, expected rates of return of assets, future salary increases, mortality rates and future pension increases. All assumptions are reviewed at each reporting date. In determining the appropriate discount rate management considers the interest rates of corporate bonds in the respective country with an AAA or AA rating. The mortality rate is based on publicly available mortality tables for the specific country. Future salary increases and pension increases are based on expected future inflation rates for the specific country. Other key assumptions for pension obligations are based on current market conditions. Additional information is disclosed in Note 16.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.3 sIGnificant judgements and sources of estimation uncertainty (CONTINUED)

Effective interest rate

The entity used the prime interest rate to discount future cash flows. On debtors an impairment loss is recognised in surplus and deficit when there is objective evidence that it is impaired. The impairment is measured as the difference between the debtors carrying amount and the present value of estimated future cash flows discounted at the effective interest rate, computed at initial recognition.

1.4 bIological assets that form part of an agricultural activity

The entity recognises a biological assets that form part of an agricultural activity or agricultural produce when, and only when: • the entity controls the asset as a result of past events; • it is probable that future economic benefits or service potential associated with the asset will flow to the entity; and • the fair value or cost of the asset can be measured reliably. Biological assets that form part of an agricultural activity are measured at their fair value less costs to sell.

A gain or loss arising on initial recognition of biological assets that form part of an agricultural activity or agricultural produce at fair value less costs to sell and from a change in fair value less costs to sell of a biological assets that form part of an agricultural activity is included in surplus or deficit for the period in which it arises.

Where market determined prices or values are not available, the present value of the expected net cash inflows from the 111 asset, discounted at a current market-determined pre-tax rate where applicable is used to determine fair value.

Zoological animals

Zoological animals have not been included as an asset in the Statement of Financial Position. The reason is that the essential recognition criteria of measurement for recognising assets cannot be met for the majority of the animals. The majority of zoological animals are received as donations, transfers from other zoos or from births. As a result, they do not have a cost.

It is considered impracticable to assign a fair value to the animals due to a variety of reasons. These reasons include, among other things, considerations such as the lack of a market for the majority of the animals, because they are not commodities, as well as restrictions on the trade of exotic animals, which precludes the determination of a fair value.

The animals for which it may be possible to determine an arbitrary value approximates 8% of the total animal collection. It is the view of the SANBI that it is unethical and not in the best interest of the National Zoological Gardens (NZG) to attach values to these animals. In addition, the NZG is not in the business of trading with these animals.

Therefore, on the basis that many species cannot be valued and any attempt to attach values to any species may be unethical, it was considered that any assessment of value would be misleading to the users of the financial statements.

1.5 Investment property

Investment property is property (land or a building, or part of a building, or both) held to earn rentals or for capital appreciation or both, rather than for: • use in the production or supply of goods or services, or for • administrative purposes, or for • sale in the ordinary course of operations. Investment property is recognised as an asset when it is probable that the future economic benefits or service potential that are associated with the investment property will flow to the entity, and the cost or fair value of the investment property can be measured reliably.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.5 Investment property (continued)

Cost model

Investment property is initially recognised at cost. Transaction costs are included in the initial measurement.

Where investment property is acquired through a non-exchange transaction, its cost is its fair value as at the date of acquisition.

Costs include costs incurred initially and costs incurred subsequently to add to, or to replace a part of, or service a property. If a replacement part is recognised in the carrying amount of the investment property, the carrying amount of the replaced part is derecognised.

Investment property is carried at cost less accumulated depreciation and any accumulated impairment losses.

Depreciation is provided to write down the cost, less estimated residual value by equal installments over the useful life of the property, which is as follows:

Item Useful life Property – buildings 40–50 years

Investment property is derecognised on disposal or when the investment property is permanently withdrawn from use and no future economic benefits or service potential are expected from its disposal.

Gains or losses arising from the retirement or disposal of investment property is the difference between the net disposal 112 proceeds and the carrying amount of the asset and is recognised in surplus or deficit in the period of retirement or disposal. Compensation from third parties for investment property that was impaired, lost or given up is recognised in surplus or deficit when the compensation becomes receivable. The entity separately discloses expenditure to repair and maintain investment property in the notes to the financial statements (see Note 23). The entity discloses relevant information relating to assets under construction or development, in the notes to the financial statements (see Note 8).

1.6 Property, plant and equipment

Property, plant and equipment are tangible non-current assets (including infrastructure assets) that are held for use in the production or supply of goods or services, rental to others, or for administrative purposes, and are expected to be used during more than one period.

The cost of an item of property, plant and equipment is recognised as an asset when: • it is probable that future economic benefits or service potential associated with the item will flow to the entity; and • the cost of the item can be measured reliably. Property, plant and equipment is initially measured at cost.

The cost of an item of property, plant and equipment is the purchase price and other costs attributable to bring the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. Trade discounts and rebates are deducted in arriving at the cost.

Where an asset is acquired through a non-exchange transaction, its cost is its fair value as at date of acquisition.

Where an item of property, plant and equipment is acquired in exchange for a non-monetary asset or monetary assets, or a combination of monetary and non-monetary assets, the asset acquired is initially measured at fair value (the cost). If the acquired item’s fair value was not determinable, it’s deemed cost is the carrying amount of the asset(s) given up.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.6 Property, plant and equipment (CONTINUED)

The initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located is also included in the cost of property, plant and equipment, where the entity is obligated to incur such expenditure, and where the obligation arises as a result of acquiring the asset or using it for purposes other than the production of inventories.

Recognition of costs in the carrying amount of an item of property, plant and equipment ceases when the item is in the location and condition necessary for it to be capable of operating in the manner intended by management.

Property, plant and equipment are carried at cost less accumulated depreciation and any impairment losses.

Property, plant and equipment are depreciated on the straight line basis over their expected useful lives to their estimated residual value.

The useful lives of items of property, plant and equipment have been assessed as follows:

Item Depreciation method Average useful life Buildings Straight line 40–50 years Motor vehicles Straight line 5–10 years Operational equipment Straight line 3–10 years

The depreciable amount of an asset is allocated on a systematic basis over its useful life.

The depreciation method used reflects the pattern in which the asset’s future economic benefits or service potential are expected to be consumed by the entity. The depreciation method applied to an asset is reviewed at least at each reporting 113 date and, if there has been a significant change in the expected pattern of consumption of the future economic benefits or service potential embodied in the asset, the method is changed to reflect the changed pattern. Such a change is accounted for as a change in an accounting estimate.

The entity assesses at each reporting date whether there is any indication that the entity expectations about the residual value and the useful life of an asset have changed since the preceding reporting date. If any such indication exists, the entity revises the expected useful life and/or residual value accordingly. The change is accounted for as a change in an accounting estimate.

The depreciation charge for each period is recognised in surplus or deficit unless it is included in the carrying amount of another asset.

Items of property, plant and equipment are derecognised when the asset is disposed of or when there are no further economic benefits or service potential expected from the use of the asset.

The gain or loss arising from the derecognition of an item of property, plant and equipment is included in surplus or deficit when the item is derecognised. The gain or loss arising from the derecognition of an item of property, plant and equipment is determined as the difference between the net disposal proceeds, if any, and the carrying amount of the item.

Assets which the entity holds for rentals to others and subsequently routinely sell as part of the ordinary course of activities, are transferred to inventories when the rentals end and the assets are available-for-sale. Proceeds from sales of these assets are recognised as revenue. All cash flows on these assets are included in cash flows from operating activities in the cash flow statement.

The entity separately discloses expenditure to repair and maintain property, plant and equipment in the notes to the financial statements (see Note 23).

The entity discloses relevant information relating to assets under construction or development, in the notes to the financial statements (see Note 8).

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.7 Intangible assets

An asset is identifiable if it either:

• is separable, i.e. is capable of being separated or divided from an entity and sold, transferred, licensed, rented or exchanged, either individually or together with a related contract, identifiable assets or liability, regardless of whether the entity intends to do so; or

• arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the entity or from other rights and obligations.

A binding arrangement describes an arrangement that confers similar rights and obligations on the parties to it as if it were in the form of a contract.

An intangible asset is recognised when:

• it is probable that the expected future economic benefits or service potential that are attributable to the asset will flow to the entity; and

• the cost or fair value of the asset can be measured reliably.

The entity assesses the probability of expected future economic benefits or service potential using reasonable and supportable assumptions that represent management’s best estimate of the set of economic conditions that will exist over the useful life of the asset. 114 Where an intangible asset is acquired through a non-exchange transaction, its initial cost at the date of acquisition is measured at its fair value as at that date.

Expenditure on research (or on the research phase of an internal project) is recognised as an expense when it is incurred.

Intangible assets are carried at cost less any accumulated amortisation and any impairment losses.

The amortisation period and the amortisation method for intangible assets are reviewed at each reporting date. Internally generated goodwill is not recognised as an intangible asset.

Amortisation is provided to write down the intangible assets, on a straight line basis, to their residual values as follows:

Item Depreciation method Average useful life Computer software Straight line 3–8 years

1.8 heritage assets

Assets are resources controlled by an entity as a result of past events and from which future economic benefits or service potential are expected to flow to the entity.

Carrying amount is the amount at which an asset is recognised after deducting accumulated impairment losses.

Class of heritage assets means a grouping of heritage assets of a similar nature or function in an entity’s operations that is shown as a single item for the purpose of disclosure in the financial statements.

Cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or, where applicable, the amount attributed to that asset when initially recognised in accordance with the specific requirements of other Standards of GRAP.

Heritage assets are assets that have a cultural, environmental, historical, natural, scientific, technological or artistic significance and are held indefinitely for the benefit of present and future generations.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.8 heritage assets (CONTINUED)

Recognition The entity recognises a heritage asset as an asset if it is probable that future economic benefits or service potential associated with the asset will flow to the entity, and the cost or fair value of the asset can be measured reliably.

Initial measurement Heritage assets are measured at cost.

Where a heritage asset is acquired through a non-exchange transaction, its cost is measured at its fair value as at the date of acquisition.

Subsequent measurement After recognition as an asset, a class of heritage assets is carried at its cost less any accumulated impairment losses.

Impairment The entity assess at each reporting date whether there is an indication that it may be impaired. If any such indication exists, the entity estimates the recoverable amount or the recoverable service amount of the heritage asset.

Transfers Transfers from heritage assets are only made when the particular asset no longer meets the definition of a heritage asset. Transfers to heritage assets are only made when the asset meets the definition of a heritage asset.

The entity derecognises heritage asset on disposal, or when no future economic benefits or service potential are expected 115 from its use or disposal.

The gain or loss arising from the derecognition of a heritage asset is included in surplus or deficit when the item is derecognised (unless the Standard of GRAP on leases requires otherwise on a sale and leaseback).

1.9 fInancial instruments A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual interest of another entity.

Credit 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.

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 rates.

Derecognition is the removal of a previously recognised financial asset or financial liability from an entity’s statement of financial position.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing parties in an arm’s length transaction.

A financial asset is: • cash; • a residual interest of another entity; or • a contractual right to: -- receive cash or another financial asset from another entity; or -- exchange financial assets or financial liabilities with another entity under conditions that are potentially favourable to the entity.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.9 fInancial instruments (continued)

A financial liability is any liability that is a contractual obligation to:

• deliver cash or another financial asset to another entity; or

• exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Liquidity risk is the risk encountered by an entity in the event of difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset.

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk.

Other 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 than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market.

A financial asset is past due when a counterparty has failed to make a payment when contractually due.

A residual interest is any contract that manifests an interest in the assets of an entity after deducting all of its liabilities. A

116 residual interest includes contributions from owners, which may be shown as: • equity instruments or similar forms of unitised capital; • a formal designation of a transfer of resources (or a class of such transfers) by the parties to the transaction as forming part of an entity’s net assets, either before the contribution occurs or at the time of the contribution; or • a formal agreement, in relation to the contribution, establishing or increasing an existing financial interest in the net assets of an entity. Transaction costs are incremental costs that are directly attributable to the acquisition, issue or disposal of a financial asset or financial liability. An incremental cost is one that would not have been incurred if the entity had not acquired, issued or disposed of the financial instrument.

Financial instruments at cost are investments in residual interests that do not have a quoted market price in an active market, and which fair value cannot be reliably measured.

Initial recognition

The entity recognises a financial asset or a financial liability in its statement of financial position when the entity becomes a party to the contractual provisions of the instrument.

The entity recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities

The entity measures a financial asset and financial liability initially at its fair value plus transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

Subsequent measurement of financial assets and financial liabilities

The entity measures all financial assets and financial liabilities after initial recognition using the following categories:

• Financial instruments at amortised cost.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.9 fInancial instruments (continued)

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

Reclassification

The entity does not reclassify a financial instrument while it is issued or held unless it is:

• a combined instrument that is required to be measured at fair value; or

• an investment in a residual interest that meets the requirements for reclassification.

If a reliable measure becomes available for an investment in a residual interest for which a measure was previously not available, and the instrument would have been required to be measured at fair value, the entity reclassifies the instrument from cost to fair value.

Gains and losses

A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is recognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Financial assets

The entity derecognises a financial asset only when: 117 • the contractual rights to the cash flows from the financial asset expire, are settled or waived; • the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or • the entity, despite having retained some significant risks and rewards of ownership of the financial asset, has transferred control of the asset to another party and the other party has the practical ability to sell the asset in its entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose additional restrictions on the transfer. In this case, the entity : -- derecognise the asset; and -- recognise separately any rights and obligations created or retained in the transfer.

Financial liabilities

The entity removes a financial liability (or a part of a financial liability) from its statement of financial position when it is extinguished — i.e. when the obligation specified in the contract expires, more is discharged, cancelled, expires or waived.

Presentation

Interest relating to a financial instrument or a component that is a financial liability is recognised as revenue or expense in surplus or deficit.

Losses and gains relating to a financial instrument or a component that is a financial liability are recognised as revenue or expense in surplus or deficit.

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position when the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the entity does not offset the transferred asset and the associated liability.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.10 taxation

Tax expenses

No provision has been made for taxation as SANBI is exempt from income tax in terms of Section 10 of the Income Tax Act, 1962 ( Act no. 58 of 1962).

1.11 leases

A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership.

When a lease includes both land and buildings elements, the entity assesses the classification of each element separately.

Operating leases–lessor

Operating lease revenue is recognised as revenue on a monthly basis as the higher of the minimum contractually agreed amount or as a per centage of the lessee’s turnover.

Income for leases is disclosed under revenue in statement of financial performance.

Operating leases–lessee

Operating lease payments are recognised as an expense on a straight-line basis over the lease term. The difference between the amounts recognised as an expense and the contractual payments is recognised as an operating lease asset or liability.

1.12 Inventories 118 Inventories are initially measured at cost except where inventories are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition.

Subsequently inventories are measured at the lower of cost and net realisable value.

Inventories are measured at the lower of cost and current replacement cost where they are held for:

• distribution at no charge or for a nominal charge; or

• consumption in the production process of goods to be distributed at no charge or for a nominal charge.

Net realisable value is the estimated selling price in the ordinary course of operations less the estimated costs of completion and the estimated costs necessary to make the sale, exchange or distribution.

Current replacement cost is the cost the entity incurs to acquire the asset on the reporting date.

The cost of inventories comprises of all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition.

The cost of inventories of items that are not ordinarily interchangeable and goods or services produced and segregated for specific projects is assigned using specific identification of the individual costs.

The cost of inventories is assigned using the first-in, first-out (FIFO) basis, except for one business unit where the weighted average cost basis is used. The same cost formula is used for all inventories having a similar nature and use to the entity.

When inventories are sold, the carrying amounts of those inventories are recognised as an expense in the period in which the related revenue is recognised. If there is no related revenue, the expenses are recognised when the goods are distributed, or related services are rendered. The amount of any write-down of inventories to net realisable value or current replacement cost and all losses of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write-down of inventories, arising from an increase in net realisable value or current replacement cost, are recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.13 Impairment of cash-generating assets

Cash-generating assets are assets used with the objective of generating a commercial return. Commercial return means that positive cash flows are expected to be significantly higher than the cost of the asset.

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 the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses thereon.

A cash-generating unit is the smallest identifiable group of assets used with the objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets.

Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense.

Depreciation (amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life.

Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal.

Recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell and its value in use. Useful life is either: 119 • the period of time over which an asset is expected to be used by the entity; or

• the number of production or similar units expected to be obtained from the asset by the entity.

Identification

When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired.

The entity assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the entity estimates the recoverable amount of the asset.

Value in use

When estimating the value in use of an asset, the entity estimates the future cash inflows and outflows to be derived from continuing use of the asset and from its ultimate disposal and the entity applies the appropriate discount rate to those future cash flows.

Basis for estimates of future cash flows

In measuring value in use the entity:

• base cash flow projections on reasonable and supportable assumptions that represent management’s best estimate of the range of economic conditions that will exist over the remaining useful life of the asset. Greater weight is given to external evidence.

Recognition and measurement (individual asset)

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 recoverable amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit. Any impairment loss of a revalued cash-generating asset is treated as a revaluation decrease.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.13 Impairment of cash-generating assets (continued)

Cash-generating units

Cash-generating units are identified consistently from period to period for the same asset or types of assets, unless a change is justified.

The carrying amount of a cash-generating unit is determined on a basis consistent with the way the recoverable amount of the cash-generating unit is determined.

An impairment loss is recognised for a cash-generating unit if the recoverable amount of the unit is less than the carrying amount of the unit. The impairment is allocated to reduce the carrying amount of the cash-generating assets of the unit on a pro rata basis, based on the carrying amount of each asset in the unit. These reductions in carrying amounts are treated as impairment losses on individual assets.

In allocating an impairment loss, the entity does not reduce the carrying amount of an asset below the highest of: • its fair value less costs to sell (if determinable); • its value in use (if determinable); and • zero. The amount of the impairment loss that would otherwise have been allocated to the asset is allocated pro rata to the other cash-generating assets of the unit.

Where a non-cash-generating asset contributes to a cash-generating unit, a proportion of the carrying amount of that 120 noncash-generating asset is allocated to the carrying amount of the cash-generating unit prior to estimation of the recoverable amount of the cash-generating unit.

Reversal of impairment loss

The entity assess at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable amount of that asset.

A reversal of an impairment loss for a cash-generating asset is recognised immediately in surplus or deficit.

Redesignation

The redesignation of assets from a cash-generating asset to a non-cash-generating asset or from a non-cash-generating asset to a cash-generating asset only occur when there is clear evidence that such a redesignation is appropriate.

1.14 Impairment of non-cash-generating assets

Cash-generating assets are assets used with the objective of generating a commercial return. Commercial return means that positive cash flows are expected to be significantly higher than the cost of the asset.

Non-cash-generating assets are assets other than cash-generating assets.

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 the asset’s future economic benefits or service potential through depreciation (amortisation).

Carrying amount is the amount at which an asset is recognised in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses thereon.

A cash-generating unit is the smallest identifiable group of assets managed with the objective of generating a commercial return that generates cash inflows from continuing use that are largely independent of the cash inflows from other assets or groups of assets.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.14 Impairment of non-cash-generating assets (continued) Costs of disposal are incremental costs directly attributable to the disposal of an asset, excluding finance costs and income tax expense. Depreciation (amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life. Fair value less costs to sell is the amount obtainable from the sale of an asset in an arm’s length transaction between knowledgeable, willing parties, less the costs of disposal. Recoverable service amount is the higher of a non-cash-generating asset’s fair value less costs to sell and its value in use. Useful life is either: • the period of time over which an asset is expected to be used by the entity; or • the number of production or similar units expected to be obtained from the asset by the entity. Identification When the carrying amount of a non-cash-generating asset exceeds its recoverable service amount, it is impaired. The entity assesses at each reporting date whether there is any indication that a non-cash-generating asset may be impaired. If any such indication exists, the entity estimates the recoverable service amount of the asset.

Value in use

Value in use of non-cash-generating assets is the present value of the non-cash-generating assets, remaining service potential. 121 Depreciated replacement cost approach The present value of the remaining service potential of a non-cash-generating asset is determined as the depreciated replacement cost of the asset. The replacement cost of an asset is the cost to replace the asset’s gross service potential. This cost is depreciated to reflect the asset in its used condition. An asset may be replaced either through reproduction (replication) of the existing asset or through replacement of its gross service potential. The depreciated replacement cost is measured as the current reproduction or replacement cost of the asset, whichever is lower, less accumulated depreciation calculated on the basis of such cost, to reflect the already consumed or expired service potential of the asset. The replacement cost and reproduction cost of an asset is determined on an optimised basis. The rationale is that the entity would not replace or reproduce the asset with a like asset if the asset to be replaced or reproduced is an overdesigned or overcapacity asset. Overdesigned assets contain features that are unnecessary for the goods or services the asset provides. Overcapacity assets are assets that have a greater capacity than is necessary to meet the demand for goods or services the asset provides. The determination of the replacement cost or reproduction cost of an asset on an optimised basis thus reflects the service potential required of the asset.

Recognition and measurement

If the recoverable service amount of a non-cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable service amount. This reduction is an impairment loss.

An impairment loss is recognised immediately in surplus or deficit.

Reversal of an impairment loss

The entity assess at each reporting date whether there is any indication that an impairment loss recognised in prior periods for a non-cash-generating asset may no longer exist or may have decreased. If any such indication exists, the entity estimates the recoverable service amount of that asset.

A reversal of an impairment loss for a non-cash-generating asset is recognised immediately in surplus or deficit.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.14 Impairment of non-cash-generating assets (continued)

Redesignation

The redesignation of assets from a cash-generating asset to a non-cash-generating asset or from a non-cash-generating asset to a cash-generating asset only occurs when there is clear evidence that such a redesignation is appropriate.

1.15 employee benefits

Employee benefits are all forms of consideration given by an entity in exchange for service rendered by employees.

A qualifying insurance policy is an insurance policy issued by an insurer that is not a related party (as defined in the Standard of GRAP on Related Party Disclosures) of the reporting entity, if the proceeds of the policy can be used only to pay or fund employee benefits under a defined benefit plan and are not available to the reporting entity’s own creditors (even in liquidation) and cannot be paid to the reporting entity, unless either:

• the proceeds represent surplus assets that are not needed for the policy to meet all the related employee benefit obligations; or

• the proceeds are returned to the reporting entity to reimburse it for employee benefits already paid.

Termination benefits are employee benefits payable as a result of either:

• an entity’s decision to terminate an employee’s employment before the normal retirement date; or

• an employee’s decision to accept voluntary redundancy in exchange for those benefits. 122 Other long-term employee benefits are employee benefits (other than post-employment benefits and termination benefits) that are not due to be settled within twelve months after the end of the period in which the employees render the related service.

Short-term employee benefits

Short-term employee benefits are employee benefits (other than termination benefits) that are due to be settled within twelve months after the end of the period in which the employees render the related service.

Short-term employee benefits include items such as:

• wages, salaries and social security contributions;

• short-term compensated absences (such as paid annual leave and paid sick leave) where the compensation for the absences is due to be settled within twelve months after the end of the reporting period in which the employees render the related employee service;

• bonus, incentive and performance related payments payable within twelve months after the end of the reporting period in which the employees render the related service; and

• non-monetary benefits (for example, medical care, and free or subsidised goods or services such as housing, cars and cellphones) for current employees.

When an employee has rendered service to the entity during a reporting period, the entity recognise the undiscounted amount of short-term employee benefits expected to be paid in exchange for that service:

• as a liability (accrued expense), after deducting any amount already paid. If the amount already paid exceeds the undiscounted amount of the benefits, the entity recognise that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

• as an expense, unless another Standard requires or permits the inclusion of the benefits in the cost of an asset.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.15 employee benefits (CONTINUED)

The expected cost of compensated absences is recognised as an expense as the employees render services that increase their entitlement or, in the case of non-accumulating absences, when the absence occurs. The entity measure the expected cost of accumulating compensated absences as the additional amount that the entity expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The entity recognise the expected cost of bonus, incentive and performance related payments when the entity has a present legal or constructive obligation to make such payments as a result of past events and a reliable estimate of the obligation can be made. A present obligation exists when the entity has no realistic alternative but to make the payments.

Post-employment benefits

Post-employment benefits are employee benefits (other than termination benefits), which are payable after the completion of employment.

Post-employment benefits: Defined contribution plans

Defined contribution plans are post-employment benefit plans under which an entity pays fixed contributions into a separate entity (a fund) and will have no legal or constructive obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to employee service in the current and prior periods.

When an employee has rendered service to the entity during a reporting period, the entity recognise the contribution payable to a defined contribution plan in exchange for that service: 123 • as a liability (accrued expense), after deducting any contribution already paid. If the contribution already paid exceeds the contribution due for service before the reporting date, an entity recognise that excess as an asset (prepaid expense) to the extent that the prepayment will lead to, for example, a reduction in future payments or a cash refund; and

• as an expense, unless another Standard requires or permits the inclusion of the contribution in the cost of an asset.

Where contributions to a defined contribution plan do not fall due wholly within twelve months after the end of the reporting period in which the employees render the related service, they are discounted. The rate used to discount reflects the time value of money. The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currency and estimated term of the obligation.

Post-employment benefits: Defined benefit plans

Defined benefit plans are post-employment benefit plans other than defined contribution plans.

Actuarial gains and losses comprise experience adjustments (the effects of differences between the previous actuarial assumptions and what has actually occurred) and the effects of changes in actuarial assumptions. In measuring its defined benefit liability the entity recognise actuarial gains and losses in surplus or deficit in the reporting period in which they occur.

Actuarial assumptions

Actuarial assumptions are unbiased and mutually compatible.

Financial assumptions are based on market expectations, at the reporting date, for the period over which the obligations are to be settled.

The rate used to discount post-employment benefit obligations (both funded and unfunded) reflect the time value of money. The currency and term of the financial instrument selected to reflect the time value of money is consistent with the currency and estimated term of the post-employment benefit obligations.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.15 employee benefits (continued)

Post-employment benefit obligations are measured on a basis that reflects:

• estimated future salary increases;

• the benefits set out in the terms of the plan (or resulting from any constructive obligation that goes beyond those terms) at the reporting date; and

• estimated future changes in the level of any state benefits that affect the benefits payable under a defined benefit plan, if, and only if, either:

• those changes were enacted before the reporting date; or

• past history, or other reliable evidence, indicates that those state benefits will change in some predictable manner, for example, in line with future changes in general price levels or general salary levels.

Assumptions about medical costs take account of estimated future changes in the cost of medical services, resulting from both inflation and specific changes in medical costs.

1.16 Provisions and contingencies

Provisions are recognised when:

• the entity has a present obligation as a result of a past event;

• it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle 124 the obligation; and

• a reliable estimate can be made of the obligation.

The amount of a provision is the best estimate of the expenditure expected to be required to settle the present obligation at the reporting date.

Where some or all of the expenditure required to settle a provision is expected to be reimbursed by another party, the reimbursement is recognised when, and only when, it is virtually certain that reimbursement will be received if the entity settles the obligation. The reimbursement is treated as a separate asset. The amount recognised for the reimbursement does not exceed the amount of the provision.

Provisions are not recognised for future operating surplus (deficit).

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in Note 27.

1.17 revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows result in an increase in net assets, other than increases relating to contributions from owners.

Measurement

Revenue is measured at the fair value of the consideration received or receivable.

Sale of goods

Revenue from the sale of goods is recognised when all the following conditions have been satisfied:

• the entity has transferred to the purchaser the significant risks and rewards of ownership of the goods;

• the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.17 revenue from exchange transactions (CONTINUED)

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits or service potential associated with the transaction will flow to the entity; and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits or service potential associated with the transaction will flow to the entity;

• the stage of completion of the transaction at the reporting date can be measured reliably; and

• the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Service revenue is recognised by reference to the stage of completion of the transaction at the reporting date. Stage of completion is determined by services performed to date as a per centage of total services to be performed. 125

Interest, royalties and dividends

Revenue arising from the use by others of entity assets yielding interest, royalties and dividends or similar distributions is recognised when:

• it is probable that the economic benefits or service potential associated with the transaction will flow to the entity; and

• the amount of the revenue can be measured reliably.

Interest is recognised, in surplus or deficit, using the effective interest rate method.

Royalties are recognised as they are earned in accordance with the substance of the relevant agreements.

Dividends or similar distributions are recognised, in surplus or deficit, when the entity’s right to receive payment has been established.

Service fees included in the price of the product are recognised as revenue over the period during which the service is performed.

1.18 revenue from non-exchange transactions

Non-exchange transactions are transactions that are not exchange transactions. In a non-exchange transaction, an entity either receives value from another entity without directly giving approximately equal value in exchange, or gives value to another entity without directly receiving approximately equal value in exchange.

Transfers are inflows of future economic benefits or service potential from non-exchange transactions, other than taxes.

Recognition

An inflow of resources from a non-exchange transaction recognised as an asset is recognised as revenue, except to the extent that a liability is also recognised in respect of the same inflow.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.18 revenue from non-exchange transactions (continued)

Measurement

Revenue from a non-exchange transaction is measured at the amount of the increase in net assets recognised by the entity.

Gifts, bequests and donations, including goods and services in-kind

Gifts and donations, including goods in-kind, are recognised as assets and revenue when it is probable that the future economic benefits or service potential will flow to the entity and the fair value of the assets can be measured reliably.

1.19 cost of sales

When inventories are sold, the carrying amount of those inventories is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of inventories to net realisable value and all surplus (deficit) of inventories are recognised as an expense in the period the write-down or loss occurs. The amount of any reversal of any write- down of inventories, arising from an increase in net realisable value, is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

1.20 Investment income

Investment income is recognised on a time-proportion basis using the effective interest method.

1.21 translation of foreign currencies 126 Foreign currency transactions

A foreign currency transaction is recorded, on initial recognition in Rands, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

At each reporting date:

• foreign currency monetary items are translated using the closing rate;

• non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction; and

• non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined.

Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements are recognised in surplus or deficit in the period in which they arise.

Cash flows arising from transactions in a foreign currency are recorded in Rands by applying to the foreign currency amount the exchange rate between the Rand and the foreign currency at the date of the cash flow.

1.22 fruitless and wasteful expenditure

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.23 Irregular expenditure

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in contravention of or that is not in accordance with a requirement of any applicable legislation, including -

(a) this PFMA; or

(b) the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; or

(c) any provincial legislation providing for procurement procedures in that provincial government.

National Treasury practice Note No. 4 of 2008/2009, which was issued in terms of sections 76(1) to 76(4) of the PFMA requires the following (effective from 1 April 2008):

Irregular expenditure that was incurred and identified during the current financial and which was condoned before year end and/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditure register. In such an instance, no further action is also required with the exception of updating the note to the financial statements.

Irregular expenditure that was incurred and identified during the current financial year and for which condonement is being awaited at year end must be recorded in the irregular expenditure register. No further action is required with the exception of updating the note to the financial statements.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial year, the register and the disclosure note to the financial statements must be updated with the amount condoned. 127 Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is not possible, the accounting officer or accounting authority may write off the amount as debt impairment and disclose such in the relevant note to the financial statements. The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned and no person is liable in law, the expenditure related thereto must remain against the relevant programme/expenditure item, be disclosed as such in the note to the financial statements and updated accordingly in the irregular expenditure register.

1.24 segment information

A segment is an activity of an entity:

• that generates economic benefits or service potential (including economic benefits or service potential relating to transactions between activities of the same entity);

• whose results are regularly reviewed by management to make decisions about resources to be allocated to that activity and in assessing its performance; and

• for which separate financial information is available.

Reportable segments are the actual segments, which are reported on in the segment report. They are the segments identified above or alternatively an aggregation of two or more of those segments where the aggregation criteria are met.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.24 segment information (CONTINUED)

Measurement

The amount of each segment item reported is the measure reported to management for the purposes of making decisions about allocating resources to the segment and assessing its performance. Adjustments and eliminations made in preparing the entity’s financial statements and allocations of revenues and expenses are included in determining reported segment surplus or deficit only if they are included in the measure of the segment’s surplus or deficit that is used by management. Similarly, only those assets and liabilities that are included in the measures of the segment’s assets and segment’s liabilities that are used by management are reported for that segment. If amounts are allocated to reported segment surplus or deficit, assets or liabilities, those amounts are allocated on a reasonable basis.

If management uses only one measure of a segment’s surplus or deficit, the segment’s assets or the segment’s liabilities in assessing segment performance and deciding how to allocate resources, segment surplus or deficit, assets and liabilities are reported in terms of that measure. If management uses more than one measure of a segment’s surplus or deficit, the segment’s assets or the segment’s liabilities, the reported measures are those that management believes are determined in accordance with the measurement principles most consistent with those used in measuring the corresponding amounts in the entity’s financial statements.

1.25 bUdget information

Entities are typically subject to budgetary limits in the form of appropriations or budget authorisations (or equivalent), which is given effect through authorising legislation, appropriation or similar. 128 General purpose financial reporting by entity shall provide information on whether resources were obtained and used in accordance with the legally adopted budget.

The approved budget is prepared on a cash basis and presented by economic classification linked to performance outcome objectives.

The approved budget covers the fiscal period from 01-04-2017 to 31-03-2018.

The budget for the economic entity includes all the entities approved budgets under its control.

The financial statements and the budget are not on the same basis of accounting therefore a reconciliation between the statement of financial performance and the budget have been included in the financial statements. Refer to Note 26.

Comparative information is not required.

1.26 related parties

A related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control.

Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Joint control is the agreed sharing of control over an activity by a binding arrangement, and exists only when the strategic financial and operating decisions relating to the activity require the unanimous consent of the parties sharing control (the venturers).

Related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged.

Significant influence is the power to participate in the financial and operating policy decisions of an entity, but is not control over those policies.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.26 related parties (CONTINUED)

Management are those persons responsible for planning, directing and controlling the activities of the entity, including those charged with the governance of the entity in accordance with legislation, in instances where they are required to perform such functions.

Close members of the family of a person are considered to be those family members who may be expected to influence, or be influenced by, that management in their dealings with the entity.

The entity is exempt from disclosure requirements in relation to related party transactions if that transaction occurs within normal supplier and/or client/recipient relationships on terms and conditions no more or less favourable than those which it is reasonable to expect the entity to have adopted if dealing with that individual entity or person in the same circumstances and terms and conditions are within the normal operating parameters established by that reporting entity’s legal mandate.

Where the entity is exempt from the disclosures in accordance with the above, the entity discloses narrative information about the nature of the transactions and the related outstanding balances, to enable users of the entity’s financial statements to understand the effect of related party transactions on its financial statements.

1.27 events after reporting date

Events after reporting date are those events, both favourable and unfavourable, that occur between the reporting date and the date when the financial statements are authorised for issue. Two types of events can be identified:

• those that provide evidence of conditions that existed at the reporting date (adjusting events after the reporting date); 129 and • those that are indicative of conditions that arose after the reporting date (non-adjusting events after the reporting date). The entity will adjust the amount recognised in the financial statements to reflect adjusting events after the reporting date once the event occurred.

The entity will disclose the nature of the event and an estimate of its financial effect or a statement that such estimate cannot be made in respect of all material non-adjusting events, where non-disclosure could influence the economic decisions of users taken on the basis of the financial statements.

1.28 transfer of functions between entities under common control

Definitions

An acquirer is the entity that obtains control of the acquiree or transferor. Carrying amount of an asset or liability is the amount at which an asset or liability is recognised in the statement of financial position. Control is the power to govern the financial and operating policies of another entity so as to benefit from its activities. A function is an integrated set of activities that is capable of being conducted and managed for purposes of achieving an entity’s objectives, either by providing economic benefits or service potential. A merger is the establishment of a new combined entity in which none of the former entities obtains control over any other and no acquirer can be identified. Transfer date is the date on which the acquirer obtains control of the function and the transferor loses control of that function. A transfer of functions is the reorganisation and/or the re-allocation of functions between entities by transferring functions between entities or into another entity.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.28 transfer of functions between entities under common control (continued)

A transferor is the entity that relinquishes control of a function.

Common control–For a transaction or event to occur between entities under common control, the transaction or event needs to be undertaken between entities within the same sphere of government or between entities that are part of the same economic entity. Entities that are ultimately controlled by the same entity before and after the transfer of functions are within the same economic entity.

A function is an integrated set of activities that is capable of being conducted and managed for purposes of achieving an entity‘s objectives, either by providing economic benefits or service potential. A function consists of inputs and processes applied to those inputs that have the ability to create outputs. A function can either be a part or a portion of an entity or can consist of the whole entity. Although functions may have outputs, outputs are not required to qualify as a function. The three elements of a function are defined as follows:

• Input: Any resource that creates, or has the ability to create, outputs when one or more processes are applied to it.

• Process: Any system, standard, protocol, convention or rule that when applied to an input or inputs, creates or has the ability to create outputs.

• Output: The result of inputs and processes applied to achieve and improve efficiency. This may be in the form of achieving service delivery objectives, or the delivery of goods and/or services.

Identifying the acquirer and transferor

130 For each transfer of functions between entities under common control an acquirer and transferor are identified. All relevant facts and circumstances are considered in identifying the acquirer and transferor.

The terms and conditions of a transfer of functions undertaken between entities under common control are set out in a binding arrangement. The binding arrangement governing the terms and conditions of a transfer of functions may identify which entity to the transaction or event is the transferor(s) and which entity is the acquirer. Where the binding arrangement does not clearly identify the acquirer or the transferor, the behaviour or actions of the entities may indicate which entity is the acquirer and which entity is the transferor.

Determining the acquirer includes a consideration of, amongst other things, which of the entities involved in the transfer of functions initiated the transaction or event, the relative size of the entities, as well as whether the assets or revenue of one of the entities involved in the transaction or event significantly exceed those of the other entities. If no acquirer can be identified, the transaction or event is accounted for in terms of the Standard of GRAP on Mergers.

Determining the transfer date The acquirer and the transferor identify the transfer date, which is the date on which the acquirer obtains control and the transferor loses control of that function.

All relevant facts and circumstances are considered in identifying the transfer date.

Assets acquired [transferred] and liabilities assumed [relinquished] The recognition of assets and liabilities, is subject to the following conditions:

The assets acquired and the liabilities assumed are part of what had been agreed in terms of the binding arrangement (if applicable), rather than the result of separate transactions.

Determining what is part of the transfer of functions transaction Where the entity and the transferor have a pre-existing relationship before or when negotiations for a transfer of functions began, or where a binding arrangement is entered into during the negotiations that are separate from a transfer of

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.28 transfer of functions between entities under common control (continued) functions, any amounts that are not part of what were transferred in a transfer of functions are identified. This policy only applies to the consideration transferred and the assets acquired and liabilities assumed in a transfer of functions as governed by the terms and conditions of the binding arrangement. The following factors are considered, which are neither mutually exclusive nor individually conclusive, to determine whether a transaction is part of a transfer or function or whether the transaction is separate: • the reasons for the transaction; and • the timing of the transaction. Effective settlement of a pre-existing relationship between the entity (as acquirer) and transferor in a transfer of functions A pre-existing relationship between the entity (as acquirer) and the transferor may be contractual or non-contractual. If a transfer of functions in effect settles a pre-existing relationship, the entity (as acquirer) recognises a gain or loss, measured as follows: • for a pre-existing non-contractual relationship, fair value. • for a pre-existing contractual relationship, the lesser of the following: -- the amount by which the binding arrangement is favourable or unfavourable from the perspective of the entity; -- (as acquirer) when compared with terms for current market transactions for the same or similar items; or -- the amount of any stated settlement provisions in the binding arrangement available to the counterparty to whom the contract is unfavourable. 131 If the latter is less, the difference is included as part of a transfer of functions accounting. The amount of gain or loss recognised may depend in part on whether the entity (as acquirer) had previously recognised a related asset or liability, and the reported gain or loss therefore may differ from the amount calculated by applying the above requirements.

Other criteria for the entity (as acquirer) The assets acquired and liabilities assumed that qualify for recognition as set out in the binding arrangement meets the definitions of assets and liabilities in the Framework for the Preparation and Presentation of Financial Statements and the recognition criteria in the applicable Standards of GRAP at the transfer date. Costs that the entity expects, but which it is not obliged to incur in the future to effect its plan to exit an activity of the transferor or to terminate the employment of, or relocate the transferor‘s employees, is not accounted for as part of the liabilities at the transfer date. The entity does not recognise those costs as part of a transfer of functions. Instead, the entity recognises these costs in its financial statements after the transfer has occurred, in accordance with the applicable Standards of GRAP. Accounting by the entity as acquirer Initial recognition and measurement As of the transfer date, the entity recognises the purchase consideration paid to the transferor and all the assets acquired and liabilities assumed in a transfer of functions. The assets acquired and liabilities assumed are measured at their carrying amounts. If, prior to the transfer of functions, the transferor was not applying the accrual basis of accounting, the transferor changes its basis of accounting to the accrual basis of accounting prior to the transfer. The consideration paid by the entity can be in the form of cash, cash equivalents or other assets. If the consideration paid is in the form of other assets, the entity de-recognises such assets on the transfer date at their carrying amounts. The difference between the carrying amounts of the assets acquired, the liabilities assumed and the consideration paid to the transferor, is recognised in accumulated surplus or deficit.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.28 transfer of functions between entities under common control (continued)

Measurement period

If the initial accounting for a transfer of functions is incomplete by the end of the reporting period in which the transfer occurs, the entity reports in its financial statements provisional amounts for the items for which the accounting is incomplete. During the measurement period, the entity retrospectively adjust the provisional amounts recognised at the transfer date to reflect new information obtained about facts and circumstances that existed as of the transfer date and, if known, would have affected the measurement of the amounts recognised as of that date. The measurement period ends as soon as the entity receives the information it was seeking about facts and circumstances that existed as of the transfer date or learns that more information is not obtainable. However, the measurement period does not exceed two years from the transfer date.

The entity considers all relevant factors in determining whether information obtained after the transfer date should result in an adjustment to the provisional amounts recognised or whether that information results from events that occurred after the transfer date.

The entity recognises an increase (decrease) in the provisional amount recognised for an asset (liability) by means of decreasing (increasing) the excess of the purchase consideration paid over the carrying amount of the assets acquired and liabilities assumed previously recognised in accumulated surplus or deficit. However, new information obtained during the measurement period may sometimes result in an adjustment to the provisional amount of more than one asset or liability.

During the measurement period, the entity recognises adjustments to the provisional amounts as if the accounting for the 132 transfer of functions had been completed at the transfer date. Thus, the entity revises comparative information for prior periods presented in financial statements as needed, including making any change in depreciation, amortisation or other income effects recognised in completing the initial accounting.

After the measurement period ends, the entity revises the accounting for a transfer of functions only to correct an error in accordance with the Standard of GRAP on Accounting Policies, Changes in Accounting Estimates and Errors.

Acquisition-related costs

Acquisition-related costs are costs that the entity incurs to affect the transfer of functions. These costs include advisory, legal, accounting and other professional or consulting fees, general administrative costs, and costs of registering and issuing debt and equity securities. The entity accounts for acquisition-related costs as expenses in the period in which the costs are incurred and the services are received, with the exception of the costs incurred to issue debt or equity securities, which are recognised in accordance with the Standard of GRAP on Financial Instruments.

Subsequent measurement

The entity subsequently measure any assets acquired and any liabilities assumed in a transfer of functions in accordance with the applicable Standards of GRAP.

At the transfer date, the entity classifies or designates the assets acquired and liabilities assumed as necessary to apply other Standards of GRAP subsequently. The entity makes those classifications or designations on the basis of the terms of the binding arrangement, economic conditions, its operating or accounting policies and other relevant conditions that exist at the transfer date. An exception is that the entity classifies the following contracts on the basis of the contractual terms and other factors at the inception of the contract (or, if the terms of the contract have been modified in a manner that would change its classification, at the date of that modification, which might be the transfer date):

• classification of a lease contract as either an operating lease or a finance lease in accordance with the Standard of GRAP on Leases; and

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ACCOUNTING POLICIES

1.28 transfer of functions between entities under common control (continued)

• classification of a contract as an insurance contract in accordance with the International Financial Reporting Standard on Insurance Contracts.

Accounting by the entity as transferor

Derecognition of assets transferred and liabilities relinquished

As of the transfer date, the entity derecognises from its financial statements, all the assets transferred and liabilities relinquished in a transfer of functions at their carrying amounts.

Until the transfer date, the entity continues to measure these assets and liabilities in accordance with applicable Standards of GRAP.

The consideration received from the acquirer can be in the form of cash, cash equivalents or other assets. If the consideration received is in the form of other assets, the entity measures such assets at their fair value on the transfer date in accordance with the applicable Standard of GRAP. The difference between the carrying amounts of the assets transferred, the liabilities relinquished and the consideration received from the acquirer is recognised in accumulated surplus or deficit.

1.29 commitments

Items are classified as commitments when an entity has committed itself to future transactions that will normally result in the outflow of cash.

Disclosures are required in respect of unrecognised contractual commitments. 133 Commitments represent goods/services that have been ordered, but no delivery has taken place at the reporting date. These amounts are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance as the annual financial statements are prepared on the accrual basis and prior delivery, no accrual can be recognised. These items are, however, disclosed as part of the disclosure notes.

The commitments disclosed in the disclosure note are the aggregate amount of capital approved and contracted for at the reporting date, to the extent that the amount has not been recorded in the financial statements.

Commitments for which disclosure is necessary to achieve a fair presentation should be disclosed in a note to the financial statements, if both the following criteria are met:

• Contracts should be non-cancellable or only cancellable at significant cost (for example, contracts for computer or building maintenance services); and

• Contracts should relate to something other than the routine, steady, state business of the entity – therefore salary commitments relating to employment contracts or social security benefit commitments are excluded.

1.30 comparative figures

Where necessary, comparative figures have been reclassified to conform to changes in presentation in the current year.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

2. new standards and interpretations

2.1 standards and Interpretations early adopted

The entity has chosen to early adopt the following standards and interpretations:

GRAP 20: Related parties

The objective of this standard is to ensure that a reporting entity’s financial statements contain the disclosures necessary to draw attention to the possibility that its financial position and surplus or deficit may have been affected by the existence of related parties and by transactions and outstanding balances with such parties.

An entity that prepares and presents financial statements under the accrual basis of accounting (in this standard referred to as the reporting entity) shall apply this standard in:

• identifying related party relationships and transactions;

• identifying outstanding balances, including commitments, between an entity and its related parties;

• identifying the circumstances in which disclosure of the items in (a) and (b) is required; and

• determining the disclosures to be made about those items.

This standard requires disclosure of related party relationships, transactions and outstanding balances, including commitments, in the consolidated and separate financial statements of the reporting entity in accordance with the Standard of GRAP on Consolidated and Separate Financial Statements. This standard also applies to individual financial 134 statements.

Disclosure of related party transactions, outstanding balances, including commitments, and relationships with related parties may affect users’ assessments of the financial position and performance of the reporting entity and its ability to deliver agreed services, including assessments of the risks and opportunities facing the entity. This disclosure also ensures that the reporting entity is transparent about its dealings with related parties.

The standard states that a related party is a person or an entity with the ability to control or jointly control the other party, or exercise significant influence over the other party, or vice versa, or an entity that is subject to common control, or joint control. As a minimum, the following are regarded as related parties of the reporting entity:

• A person or a close member of that person’s family is related to the reporting entity if that person: -- has control or joint control over the reporting entity; -- has significant influence over the reporting entity; -- is a member of the management of the entity or its controlling entity. • An entity is related to the reporting entity if any of the following conditions apply:

-- the entity is a member of the same economic entity (which means that each controlling entity, controlled entity and fellow controlled entity is related to the others);

-- one entity is an associate or joint venture of the other entity (or an associate or joint venture of a member of an economic entity of which the other entity is a member);

-- both entities are joint ventures of the same third party;

-- one entity is a joint venture of a third entity and the other entity is an associate of the third entity;

-- the entity is a post-employment benefit plan for the benefit of employees of either the entity or an entity related to the entity. If the reporting entity is itself such a plan, the sponsoring employers are related to the entity;

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

2.1 standards and Interpretations early adopted (CONTINUED)

-- the entity is controlled or jointly controlled by a person identified in (a); and -- a person identified in (a)(i) has significant influence over that entity or is a member of the management of that entity (or its controlling entity). The standard furthermore states that related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party, regardless of whether a price is charged. The standard elaborates on the definitions and identification of: • close member of the family of a person; • management; • related parties; • remuneration; and • significant influence. The standard sets out the requirements, inter alia, for the disclosure of: • control; • remuneration of management.

The effective date of the standard is for years beginning on or after 01 April 2019. The impact of the standard is not material.

2.2 standards and interpretations issued, but not yet effective 135 The entity has not applied the following standards and interpretations, which have been published and are mandatory for the entity’s accounting periods beginning on or after 01 April 2019 or later periods:

GRAP 34: Separate Financial Statements The objective of this Standard is to prescribe the accounting and disclosure requirements for investments in controlled entities, joint ventures and associates when an entity prepares separate financial statements.

It furthermore covers definitions, preparation of separate financial statements, disclosure, transitional provisions and effective date.

The effective date of the standard is for years beginning on or after 01 April 2020.

The entity expects to adopt the standard for the first time in the 2020/2021 financial statements. It is unlikely that the standard will have a material impact on the entity’s financial statements. GRAP 35: Consolidated Financial Statements.

The objective of this Standard is to establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities.

To meet this objective, the Standard: • requires an entity (the controlling entity) that controls one or more other entities (controlled entities) to present consolidated financial statements; • defines the principle of control, and establishes control as the basis for consolidation; • sets out how to apply the principle of control to identify whether an entity controls another entity and therefore must consolidate that entity; • sets out the accounting requirements for the preparation of consolidated financial statements; and • defines an investment entity and sets out an exception to consolidating particular controlled entities of an investment entity.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

2.2 standards and interpretations issued, but not yet effective (CONTINUED)

It furthermore covers definitions, control, accounting requirements, Investment entities: fair value requirement, transitional provisions and effective date.

The effective date of the standard is for years beginning on or after 01 April 2020.

The entity expects to adopt the standard for the first time in the 2020/2021 financial statements. It is unlikely that the standard will have a material impact on the entity’s financial statements.

GRAP 36: Investments in Associates and Joint Ventures

The objective of this Standard is to prescribe the accounting for investments in associates and joint ventures and to set out the requirements for the application of the equity method when accounting for investments in associates and joint ventures.

It furthermore covers definitions, significant influence, equity method, application of the equity method, separate financial statements, transitional provisions and effective date.

The effective date of the standard is for years beginning on or after 01 April 2020.

The entity expects to adopt the standard for the first time in the 2020/2021 financial statements.

It is unlikely that the standard will have a material impact on the entity’s financial statements.

GRAP 37: Joint Arrangements 136 The objective of this Standard is to establish principles for financial reporting by entities that have an interest in arrangements that are controlled jointly (i.e. joint arrangements).

To meet this objective, the Standard defines joint control and requires an entity that is a party to a joint arrangement to determine the type of joint arrangement in which it is involved by assessing its rights and obligations and to account for those rights and obligations in accordance with that type of joint arrangement.

It furthermore covers definitions, joint arrangements, financial statements and parties to a joint arrangement, separate financial statements, transitional provisions and effective date.

The effective date of the standard is for years beginning on or after 01 April 2020

The entity expects to adopt the standard for the first time in the 2020/2021 financial statements.

It is unlikely that the standard will have a material impact on the entity’s financial statements.

GRAP 38: Disclosure of Interests in Other Entities

The objective of this Standard is to require an entity to disclose information that enables users of its financial statements to evaluate:

• the nature of, and risks associated with, its interests in controlled entities, unconsolidated controlled entities, joint arrangements and associates, and structured entities that are not consolidated; and

• the effects of those interests on its financial position, financial performance and cash flows.

It furthermore covers definitions, disclosing information about interests in other entities, significant judgements and assumptions, investment entity status, interests in controlled entities, interests in joint arrangements and associates, interests in structured entities that are not consolidated, non-qualitative ownership interests, controlling interests acquired with the intention of disposal, transitional provisions and effective date.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

2.2 standards and interpretations issued, but not yet effective (CONTINUED)

The effective date of the standard is for years beginning on or after 01 April 2020.

The entity expects to adopt the standard for the first time in the 2020/2021 financial statements.

It is unlikely that the standard will have a material impact on the entity’s financial statements.

GRAP 110 (as amended 2016): Living and Non-living Resources

The objective of this Standard is to prescribe the:

• recognition, measurement, presentation and disclosure requirements for living resources; and

• disclosure requirements for non-living resources

It furthermore covers definitions, recognition, measurement, depreciation, impairment, compensation for impairment, transfers, derecognition, disclosure, transitional provisions and effective date.

The subsequent amendments to the Standard of GRAP on Living and Non-living Resources resulted from editorial changes to the original text and inconsistencies in measurement requirements in GRAP 23 and other asset-related Standards of GRAP in relation to the treatment of transaction costs. Other changes resulted from changes made to IPSAS 17 on Property, Plant and Equipment (IPSAS 17) as a result of the IPSASB’s Improvements to IPSASs 2014 issued in January 2015 and Improvements to IPSASs 2015 issued in March 2016.

The most significant changes to the Standard are: 137 • General improvements: to clarify the treatment of transaction costs and other costs incurred on assets acquired in non- exchange transactions to be in line with the principle in GRAP 23; and to clarify the measurement principle when assets may be acquired in exchange for a non-monetary asset or assets, or a combination of monetary and non-monetary assets.

• IPSASB amendments: to clarify the revaluation methodology of the carrying amount and accumulated depreciation when a living resource is revalued; To clarify acceptable methods of depreciating assets; and to define a bearer plant and include bearer plants within the scope of GRAP 17 or GRAP 110, while the produce growing on bearer plants will remain within the scope of GRAP 27

The effective date of the standard is for years beginning on or after 01 April 2020.

The entity expects to adopt the standard for the first time in the 2020/2021 financial statements.

It is unlikely that the standard will have a material impact on the entity’s financial statements.

GRAP 32: Service Concession Arrangements: Grantor

The objective of this Standard is: to prescribe the accounting for service concession arrangements by the grantor, a public sector entity.

It furthermore covers: definitions, recognition and measurement of a service concession asset, recognition and measurement of liabilities, other liabilities, contingent liabilities and contingent assets, other revenues, presentation and disclosure, transitional provisions, as well as the effective date.

The effective date of the standard is for years beginning on or after 01 April 2019.

The entity expects to adopt the standard for the first time in the 2020/2020 financial statements.

It is unlikely that the standard will have a material impact on the entity’s financial statements.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

2.2 standards and interpretations issued, but not yet effective (CONTINUED)

GRAP 108: Statutory Receivables

The objective of this Standard is: to prescribe accounting requirements for the recognition, measurement, presentation and disclosure of statutory receivables.

It furthermore covers: definitions, recognition, derecognition, measurement, presentation and disclosure, transitional provisions, as well as the effective date.

The effective date of the standard is not yet set by the Minister of Finance.

The entity expects to adopt the standard for the first time when the Minister sets the effective date for the standard.

It is unlikely that the standard will have a material impact on the entity’s financial statements.

GRAP 109: Accounting by Principals and Agents

The objective of this Standard is to outline principles to be used by an entity to assess whether it is party to a principal- agent arrangement, and whether it is a principal or an agent in undertaking transactions in terms of such an arrangement. The Standard does not introduce new recognition or measurement requirements for revenue, expenses, assets and/ or liabilities that result from principal–agent arrangements. The Standard does however provide guidance on whether revenue, expenses, assets and/or liabilities should be recognised by an agent or a principal, as well as prescribe what information should be disclosed when an entity is a principal or an agent.

138 It furthermore covers definitions, identifying whether an entity is a principal or agent, accounting by a principal or agent, presentation, disclosure, transitional provisions and effective date.

The effective date of the standard is not yet set by the Minister of Finance.

The entity expects to adopt the standard for the first time when the Minister sets the effective date for the standard. The impact of this standard is currently being assessed.

IGRAP 18: Interpretation of the Standard of GRAP on Recognition and Derecognition of Land

This Interpretation of the Standards of GRAP applies to the initial recognition and derecognition of land in an entity’s financial statements. It also considers joint control of land by more than one entity.

When an entity concludes that it controls the land after applying the principles in this Interpretation of the Standards of GRAP, it applies the applicable Standard of GRAP, i.e. the Standard of GRAP on Inventories, Investment Property (GRAP

16), Property, Plant and Equipment (GRAP 17) or Heritage Assets. As this Interpretation of the Standards of GRAP does not apply to the classification, initial and subsequent measurement, presentation and disclosure requirements of land, the entity applies the applicable Standard of GRAP to account for the land once control of the land has been determined. An entity also applies the applicable Standards of GRAP to the derecognition of land when it concludes that it does not control the land after applying the principles in this Interpretation of the Standards of GRAP.

In accordance with the principles in the Standards of GRAP, buildings and other structures on the land are accounted for separately. These assets are accounted for separately as the future economic benefits or service potential embodied in the land differs from those included in buildings and other structures. The recognition and derecognition of buildings and other structures are not addressed in this Interpretation of the Standards of GRAP.

The effective date of the interpretation is for years beginning on or after 01 April 2019.

The entity expects to adopt the interpretation for the first time in the 2019/2020 financial statements. The impact of this interpretation is currently being assessed.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

3. cash and cash equivalents

Cash and cash equivalents consist of: Short-term deposits 367 378 730 353 422 839 Bank balances 19 830 762 13 422 977 Cash on hand 955 381 1 017 509 388 164 873 367 863 325 Credit quality of cash at bank and short term deposits, excluding cash on hand

The credit quality of cash at bank and short term deposits, excluding cash on hand that are neither past due nor impaired can be assessed by reference to external credit ratings (if available) or historical information about counterparty default rates:

Credit rating South African Reserve Bank Moody’s 22 067 717 20 536 690 Nedbank Limited Standards and Poors B 345 311 013 332 886 149 Nedbank Limited Standards and Poors B 19 830 762 13 422 977 387 209 492 366 845 816 4. receivables from exchange transactions 139 Trade debtors (net of provisions for doubtful debts) 4 778 903 4 057 777 Accrued income 5 414 395 3 377 438 Sundry receivables 593 204 82 058 Prepaid expenses 882 701 116 280 11 669 203 7 633 553

Trade receivables consist mainly of rental income from restaurants. Trade receivables are non-interest bearing and based on 30 days from invoice.

Fair value of trade and other receivables

Trade and other receivables 11 669 203 7 633 553

Amounts neither past due nor impaired are considered fully recoverable. No credit quality issues are noted.

Trade and other receivables past due but not impaired

Trade and other receivables which are less than 3 months past due are not considered to be impaired. At 31 March 2019, R 450 299 (2018: R 999 309) were past due but not impaired.

The ageing of amounts past due but not impaired is as follows: 2 months past due 204 413 - 3 months past due 243 886 999 309 Trade and other receivables impaired

As of 31 March 2019, trade and other receivables of R 826 459 (2018: R 367 549) were impaired and provided for. The amount of the provision was R (826 459) as of 31 March 2019 (2018: R (367 549)).

The ageing of this impairment is as follows:

Over 6 months 826 459 367 549

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

4. receivables from exchange transactions (continued)

Reconciliation of provision for impairment of trade and other receivables Opening balance 367 549 276 742 Provision for impairment 458 909 90 807 826 458 367 549 Due to unfavourable trading conditions at certain restaurants run on SANBI property, the collection for rental due became difficult and resulted in their debtors aging being over 6 months. Some of these restaurants have since ceased trading.

5. Biological assets

Plants for resale Opening balance 1 891 882 790 055 Plus: Fair value adjustments 1 416 411 2 533 359 Less: Cost of sales (952 419) (1 431 532) Closing balance 2 355 874 1 891 882

Carrying value of inventories carried at fair value less costs to sell 2 355 874 1 891 882

Inventories recognised as an expense during the year 952 419 1 431 532

140 These biological assets consist of plants for sale in SANBI’s nurseries and are therefore consumable inventories.The fair value of these plants was determined using an estimated selling price based on marked prices at SANBI nurseries.Given that no additional staff is employed for selling the plants and very little time is actually spent by existing staff on selling plants, costs to sell are considered negligible, and are therefore not taken into consideration in determining the valuation of the plants.As these plants represent excess stock of plants actually grown for use in the gardens, the period between when the plants meet the definition of biological assets and actual sale is too short to result in changes in value either of a physical or market-related nature.

Refer to Note 1.4 for reasons why no financial values are attached to the animal collection.

Specimens Number of Number of specimens specimens 1 265 1 229 Birds 1 215 941 Reptiles 385 373 Fish 1 815 1 980 Amphibians 43 52 Invertebrates 263 383 4 986 4 958

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

6. Inventories

Books 4 621 266 4 796 679 Chemicals 496 650 45 120 Consumable stores 322 239 260 219 Fuel (diesel, petrol and oil) 40 484 59 243 Marketing materials 8 755 100 128 Small tools and consumables 724 506 703 854 Stationery 679 700 135 626 Food and beverage 706 701 - Animal food 918 215 - Animal medical supplies 155 891 - Maintenance materials 704 467 - 9 378 874 6 100 869 7. receivables from non-exchange transactions

Receivables from project donors 585 727 1 160 586 Other receivables from non-exchange revenue 189 644 1 033 498 775 371 2 194 084 141 8. Property, plant and equipment

2019 2018 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation valuation depreciation and and accumulated accumulated impairment impairment Buildings 221 089 114 (45 777 002) 175 312 112 203 492 367 (38 240 643) 165 251 724 Motor vehicles 49 317 713 (25 721 271) 23 596 442 39 930 943 (18 416 020) 21 514 923 Operational 107 160 311 (52 386 217) 54 774 094 55 778 071 (19 165 458) 36 612 613 equipment Infrastructure 64 176 858 (8 755 729) 55 421 129 55 155 849 (7 171 040) 47 984 809 Total 441 743 996 (132 640 219) 309 103 777 354 357 230 (82 993 161) 271 364 069

Reconciliation of property, plant and equipment–2019

Opening Additions Additions Disposals Trans- Trans- Deprecia- Impair- Total balance & WIP through fers fers tion ment loss transfer of received functions Buildings 165 251 724 18 343 556 - (203 105) - (501 052) (4 790 982) (2 788 029) 175 312 112 Motor vehicles 21 514 923 1 508 927 5 285 884 - - - (4 713 292) - 23 596 442 Operational 36 612 613 11 678 118 20 990 412 (1 131 859) 404 664 - (13 779 854) - 54 774 094 equipment Infrastructure 47 984 809 8 519 958 - - - 501 052 (1 584 690) - 55 421 129 271 364 069 40 050 559 26 276 296 (1 334 964) 404 664 - (24 868 818) (2 788 029) 309 103 777

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

8. Property, plant and equipment (continued)

Reconciliation of property, plant and equipment – 2018

Opening Additions Disposals Transfers Depreciation Impairment Impairment Total balance loss reversal Buildings 146 554 430 70 375 119 (36 956) (47 151 079) (4 489 790) - - 165 251 724 Motor vehicles 19 539 815 1 694 925 (161 011) - (4 896 945) - 5 338 139 21 514 923 Operational 16 071 374 26 377 212 (65 810) - (9 100 723) (46 642) 3 377 202 36 612 613 equipment Infrastructure - 946 611 - 47 151 079 (112 881) - - 47 984 809 182 165 619 99 393 867 (263 777) - (18 600 339) (46 642) 8 715 341 271 364 069

Property, plant and equipment in the process of being constructed or developed

Cumulative expenditure recognised in the carrying value of property, plant and equipment

Buildings 11 501 524 64 440 158

The construction work at the KwaZulu-Natal Herbarium has been halted due to a dispute with the service provider. The value of the construction to date is R 3 259 436 with an impairment value of R 2 788 029.

142 In accordance with the mandate as envisaged in the National Environmental Management Biodiversity Act (NEMBA), SANBI is responsible for managing, controlling and maintaining all national botanical gardens and the National Zoological Garden. The majority of the land that is currently utilised as national botanical gardens and the National Zoological Garden in the Republic belongs to the different tiers of government, and the control of the land is vested in SANBI in accordance with its mandate.There are no restrictions, as no title / property, plant or equipment is pledged as security for any liabilities.

A register containing the details of property, plant and equipment is available for inspection at the registered office of the entity. 9. Investment property

2019 2018 Cost / Accumulated Carrying value Cost / Accumulated Carrying value Valuation depreciation valuation depreciation and and accumulated accumulated impairment impairment Investment 101 358 112 (28 722 579) 72 635 533 101 248 584 (26 190 337) 75 058 247 property

Reconciliation of investment property–2019 Opening Additions Depreciation Total balance

Investment property 75 058 247 109 528 (2 532 242) 72 635 533 Reconciliation of investment property–2018

There are no restrictions, as no title / investment property is pledged as security for any liablities.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

10. heritage assets

2019 2018 Cost / Accumulated Carrying value Cost / Accumulated Carrying value valuation impairment valuation impairment losses losses Historical 224 062 - 224 062 224 062 - 224 062 monuments Conservation 17 682 262 - 17 682 262 17 682 262 - 17 682 262 areas Total 17 906 324 - 17 906 324 17 906 324 - 17 906 324

Reconciliation of heritage assets 2019

Opening balance Total Historical monuments 224 062 224 062 Conservation areas 17 682 262 17 682 262 17 906 324 17 906 324

Reconciliation of heritage assets 2018

Opening balance Additions Transfers Total Historical monuments - 205 200 18 862 224 062 143 Conservation areas 17 682 262 - - 17 682 262 17 682 262 205 200 18 862 17 906 324

Heritage assets which fair values cannot be reliably measured

The following heritage assets were not recognised due to a reliable measurement not being possible on initial recognition as follows:

The Institute manages 10 proclaimed national botanical gardens, 1 botanical garden and the National Zoological Garden which are protected as conservation areas in terms of its mandate. A significant portion of the land is owned by state institutions. Due to the nature of the Institute’s activities, the Institute could not establish either a fair value/deemed cost or a replacement cost for these heritage assets. The entity is not the legal owner of most of the land and only the management authority. The total size of the land is 9570 hectares, spread in 10 proclaimed national botanical gardens across the country, 1 botanical garden in Limpopo and the National Zoological Garden in Gauteng and a centre in Limpopo, is being held indefinitely for the benefit of present and future generations. The land is protected, kept unencumbered, cared for and preserved for its natural heritage. Other heritage assets, which are not held for sale, are as follows:

SANBI has a rich and valuable collection of original watercolour plates and pen and ink drawings housed at herbaria in Pretoria and Cape Town. The Pretoria collection was built up from around 1916, by the former Botanical Research Institute, as the original artwork for its many journals and books. It continues to be added to as new papers and books are published. Additional smaller collections of artwork were acquired by means of bequests to the nation or purchased by grants.

SANBI herbaria houses archived specimens of dried plant material mounted on cardboards or in packets, stored in cupboards arranged in an accessible system. These plant specimens are kept in modern steel cabinets with magnetic sealing doors (some are kept in older wooden cabinets made of different kinds of wood and now forming a valuable collection of examples of worked timber). The collection currently stands at approximately 2 million specimens of which 1.3 million are computerised. Most specimens are from southern Africa, but the collection extends into the rest of Africa

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

10. heritage assets (CONTINUED)

and surrounding islands and includes small collections from outside Africa. Vascular plants, bryophytes, and lichens are represented.

The collection of the National Herbarium (PRE) was extended by several valuable collections over the years, including that of E.E. Galpin and, in 1952, the Transvaal Museum (TRV). More recently the Saasveld Herbarium and the Forestry Herbarium (PRF) were incorporated in the National Herbarium (PRE), currently making it by far the largest herbarium in Africa.

The oldest specimen in this collection is a specimen of Erica mammasa, collected by W.J. Burchell (1781–1863) on the Cape Flats near Salt River in January 1811. Other historically significant specimens in the collection includes: Dichrostachys cinerea subsp. africana var. africana collected by Burke & Zeyher on their first trip to the Magaliesberg in 1841 and Ochna pulchra, collected by General J.C. Smuts near the Pienaars River, 50 miles west of Warmbaths, in October 1932.

There are approximately 13 564 type specimens in the collections of the National Herbarium. Type specimens are scientifically significant specimens in the collection as they are acting as a reference for the plant name, upon which the name is based.

The cryptogammic collection of the National Herbarium consists of more than 80 000 mounted specimens of bryophytes (hornworths, liverworts and mosses). It contains the largest and most representative collection of southern African cryptogams. The PRE cryptogammic herbarium is the largest of its kind in Africa and one of the largest in the southern 144 hemisphere.

SANBI has two main libraries–the Mary Gunn Library in Pretoria and the Harry Molteno Library in Cape Town. They rank amongst the biggest botanical libraries in the southern hemisphere and are valuable resources for information on southern African flora and biodiversity. The Mary GunnL ibrary dates back to 1916 and is housed in the National Herbarium in Pretoria. It is currently the most comprehensive botanical library of its kind in Africa and serves as one of the important botanical and biodiversity information resources in Africa. The library houses a magnificent Africana and Rare Antiquarian Book Collection such as the 18 broadsheet edition of Redouté’s Les Liliacées (1807–1816) and the Xylotech Book Collection by Clementz H. Wehdemann (early 1800s).

The Harry Molteno Library at Kirstenbosch dates back to 1913 when the garden was founded, but was officially started in 1921. Since that time it has grown considerably and has moved several times. It is presently housed in the Kirstenbosch Research Centre.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

11. Intangible assets

2019 2018 Cost / Accumulated Carrying Cost / Accumulated Carrying valuation amortisation value valuation amortisation value and and accumulated accumulated impairment impairment Computer software 25 612 875 (21 898 200) 3 714 675 23 670 679 (17 561 106) 6 109 573 Biodiversity 3 044 968 - 3 044 968 1 548 652 - 1 548 652 Information Management System

Total 28 657 843 (21 898 200) 6 759 643 25 219 331 (17 561 106) 7 658 225

Reconciliation of intangible assets–2019

Opening Additions Additions Amortisation Total balance through transfer of functions Computer software 6 109 573 1 899 822 3 500 (4 298 220) 3 714 675 Biodiversity Information 1 548 652 1 496 316 - - 3 044 968 Management System 145 7 658 225 3 396 138 3 500 (4 298 220) 6 759 643

Reconciliation of intangible assets–2018

Opening balance Additions Amortisation Total Computer software 4 343 961 5 877 105 (4 111 493) 6 109 573 Other intangible assets - 1 548 652 - 1 548 652 4 343 961 7 425 757 (4 111 493) 7 658 225 12. Unspent conditional grants and receipts

Unspent conditional grants and receipts comprises of: Unspent conditional grants and receipts Unspent conditional grants and receipts 69 589 567 60 722 695 Debit balances transferred to receivables from non-exchange transactions 585 727 533 560 Unspent conditional grant deposits 4 200 000 4 200 000 74 375 294 65 456 255

Movement during the year Balance at the beginning of the year 65 456 255 21 999 272 Additions during the year 37 596 291 68 649 946 Income recognition during the year (29 262 979) (25 726 523) Debit balances transferred to receivables from non-exchange transactions 585 727 533 560 74 375 294 65 456 255

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

13. Payables from exchange transactions

Trade payables 25 382 969 7 945 634 Other payables 9 684 802 7 532 471 Income received in advance 2 522 846 167 940 Accrued expense 12 557 868 25 130 161 Accrued leave pay 17 051 483 10 596 469 Accrued service bonus 8 589 084 6 831 419 75 789 052 58 204 094

14. Provisions

Reconciliation of provisions–2019

Opening Additions Utilised during Reversed Total Balance the year during the year Performance and related 5 972 771 8 391 067 - (5 972 771) 8 391 067 incentives Capped leave provision 3 548 790 - (236 490) - 3 312 300 Long service awards 1 177 000 1 521 209 - - 2 698 209 146 10 698 561 9 912 276 (236 490) (5 972 771) 14 401 576 Reconciliation of provisions–2018

Opening Additions Reversed Total Balance during the year Performance and related incentives 3 688 101 5 972 771 (3 688 101) 5 972 771 Capped leave provision 3 481 732 67 058 - 3 548 790 Long service awards - 1 177 000 - 1 177 000 7 169 833 7 216 829 (3 688 101) 10 698 561

Non-current liabilities 5 722 299 4 547 790 Current liabilities 8 679 277 6 150 771 14 401 576 10 698 561

Performance related incentives are based on assessment of the employee’s performance in terms of employment contracts. There is uncertainty as to the amount to be paid out.

Capped leave provision represents the value of leave credits accumulated prior to 01 July 2000. There is uncertainty as to the timing vesting of the leave.

The long service bonus awards are payable to employees who have completed uninterrupted milestone service with the SANBI. The value of the awards is determined by SANBI policy as reviewed from time to time. The timing of the payout is known but there is uncertainty if the employee will still be in service on these dates.

The provision for performance incentives is based on 1.5% or 1% of total budgeted employee remunerations for the national botanical gardens and National Zoological Garden respectively, and other related incentives is based on past cost with incremental per centage where deemed necessary.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

15. transfers payable (non-exchange)

Principal funds 2 871 916 21 404 158

Funds held for onward transfers to third parties on attainment of agreed objectives.

16. employee benefit obligations

Post-Retirement benefits The South African National Biodiversity Institute Retirement Funds consist of the South African National Biodiversity Institute Provident Fund and the South African National Biodiversity Institute Pension Fund. The values have been calculated by independent actuaries. Membership of the funds are a prerequisite for all permanently employed staff employed as from the 1st of December 1994. The policy is to provide retirement benefits for employees by means of separate Pension and ProvidentF unds, to which both employee and employer respectively, contribute in equal proportion. The Provident Fund is a defined contribution fund, except for members in service on or before 30 November 1995 who qualify for a defined benefit from the fund. The Pension Fund is also a defined contribution fund. The employer contributes to the Provident Fund while the employees’ contribution is paid to the Pension Fund.

Retirement benefit income statements amounts are included in personnel costs. 147

Total employer’s contribution 18 814 824 1 991 587

Fair value of the DefinedB enefit Obligation:

Opening balance (324 887 419) (299 537 080) Interest cost (29 878 516) (27 694 760) Current service cost (14 157 438) (1 991 587) Benefits paid 34 374 032 18 390 165 Acturial gain/(loss) 12 716 531 (14 054 157) Present value of obligation as at 31 March 2019 (321 832 810) (324 887 419)

Fair value of Plan Assets Opening balance 325 907 335 318 336 832 Expected return on plan assets 29 970 970 29 480 736 Contributions 14 064 986 1 991 587 Benefits paid (34 374 032) (18 390 165) Actuarial gain/(loss) on plan assets (11 973 415) (5 511 655) Fair value of plan assets as at 31 March 2019 323 595 844 325 907 335

Amounts recognised in the Statement of Financial Position Present value of funded obligation (321 832 810) (324 887 419) Fair value of plan assets 323 595 844 325 907 335 Surplus (deficit) in plan 1 763 034 1 019 916 Unrecognised actuarial (gains)/losses (1 763 034) (1 019 916) - -

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

16. employee benefit obligations (continued)

Post-retirement benefits In terms of GRAP 25 an asset should not be recognised in the entity’s statement of financial position unless the entity has control of the asset, the asset arises due to past events (e.g. excess contributions) and the entity has beneficial use of the assets (e.g. via a contribution holiday or cash refund). A liability must always be recognised. The values have been calculated by independent actuaries.

Current cost 18 814 824 1 991 587 Interest on obligation 29 878 516 27 694 760 Expected return on plan assets (29 970 970) (29 480 736) Net acturial (gains)/losses recognised in the current year (743 116) 19 565 812 17 979 254 19 771 423

Key actuarial assumptions in determining the above positions

Discount rate annualised yield on R213 (2018:R213) 9,50 % 8,60 % Inflation rate 5,40 % 6,60 % Expected rate of salary increases (Inflation +1%) 6,40 % 7,60 % Expected rate of return on plan assets (Actuarial valuation) 9,50 % 8,60 %

148 Defined benefit pension plan 2015 2016 2017 2018 2019 Defined benefit obligation (272 306 919) (268 259 643) (299 537 080) (324 887 419) (321 832 810) Plan assets 288 847 770 304 436 502 318 336 832 325 907 335 323 595 844 Surplus (deficit) 16 540 851 36 176 859 18 799 752 1 019 917 1 763 034 - - - - - Experience adjustments on plan 26 160 337 (6 360 293) 11 066 620 14 054 157 (12 716 531) liabilities Experience adjustments on plan 16 435 545 11 405 541 (13 341 332) (5 511 655) (11 973 415) assets

Post- retirement medical aid benefits

Amounts Recognised in the Statement of Financial Performance Service cost 1 981 000 2 088 000 Interest cost 3 980 000 3 740 000 Actuarial (gain)/loss recognised 4 284 000 (3 732 000) Total included in employee benefits [(gain)/expense] 10 245 000 2 096 000

Amounts Recognised in the Statement of Financial Position Post-employment medical obligation Present value of funded obligation - Members 38 655 000 32 477 000 - Non-members 15 907 000 13 150 000 54 562 000 45 627 000

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

16. employee benefit obligations (continued)

Movements in the net liability in the Statement of Financial Position Post-employment medical obligation Net liability at start of year 45 627 000 44 569 000 Interest cost 3 980 000 3 740 000 Current service cost 1 981 000 2 088 000 Benefit payment (1 310 000) (1 038 000) Projected accrued services liability at end of the year 50 278 000 49 359 000 Actuarial (gain) loss 4 284 000 (3 732 000) 54 562 000 45 627 000

Principal actuarial assumptions at statement of reporting date

Discount rate 31 March (%) 10,38 % 8,85 % General increases to medical aid subsidy (%) 7,86 % 7,09 % Proportion continuing membership at retirement (%) 100,00 % 100,00 % Proportion of retiring members who are married (%) 90,00 % 90,00 % Retirement age (years) 65 65

Projection of liability to 31 March 2020 149 The projection of the results from 01 April 2019 to 31 March 2020, assuming that the experience follows the assumptions exactly, is as follows:

Post-employment medical obligation:

Net liability at start of year 1 April 2019 54 562 000 Interest cost 5 582 000 Current service cost 2 298 000 Benefit payments (1 565 000) Projected accrued service liability as at 31 March 2020 60 877 000

Sensitivity analysis

The results are dependent on the assumptions used. In order to illustrate the sensitivity of the actuarial results to changes in certain key variables, the actuaries have recalculated the liabilities using the following assumptions:

-- A 1% increase / decrease in the Medical Aid maxium cap inflation will result in the following amounts as disclosed below;

-- A PA(90) and PA(90)-2 in the assumed level of mortality will result in the following amounts as disclosed below PA(90)-2 (PA(90) with a two-year adjustment) means that, to each beneficiary a mortality rate of an individual two years younger than that beneficiary was attached.A lighter mortality rate implies that the individual lives longer than expected in the valuation basis.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

16. employee benefit obligations (continued)

Medical aid and maximum cap inflation -1% Medical and Valuation +1% Medical Aid maximum cap Assumption and maximum cap inflation (Rand (Rand) inflation (Rand) Total accrued liability 48 802 000 54 562 000 61 384 000 Service cost 2 009 000 2 298 000 2 648 000 Interest cost 4 984 000 5 582 000 6 289 000

Valuation basis PA PA (90) - 2 (Rand) (90) (Rand) Mortality Employer’s accrued liability 54 562 000 57 140 000 Employer’s service cost 2 298 000 2 380 000 Employer’s interest cost 5 582 000 5 849 000

17. other income

Sundry income 7 167 240 2 838 604 Guided tours 1 221 656 782 211 150 Insurance refund 378 871 489 783 Staff transport 154 306 157 495 Use of garden facilities 289 070 208 657 Professional services 15 675 889 5 797 833 Public functions 29 315 7 675 Commission received 62 500 - Golf cart rentals 1 703 642 - 26 682 489 10 282 258

Included in professional services is an amount of R1 164 686 received as services in kind, being hours of work done by volunteers.

18. Government grants and subsidies

Operating grants Government operating grant 393 301 000 294 228 000 393 301 000 294 228 000

Capital grants Government capital grant 79 350 000 75 000 000 79 350 000 75 000 000 472 651 000 369 228 000

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

19. other grants, bequests, sponsorships and donations

Sponsorships 33 171 666 62 067 287 Bequests 30 932 - Donations 240 408 9 869 851 Unspent conditional grants and receipts (4 859 363) (43 300 719) Other grants 23 827 304 25 422 875 52 410 947 54 059 294 20. employee related costs

Basic 252 788 190 170 907 936 Acting allowances 477 861 338 628 Cell phone allowances 723 971 666 705 Housing benefits and allowances 7 760 837 7 137 684 Leave pay 808 903 563 128 Long-service awards 279 500 305 000 Medical aid - company contributions 18 640 287 14 947 868 Merit awards 74 066 52 795 Overtime payments 11 044 714 5 552 847 Pensioners Annuities 8 360 7 987 151 Performance bonus 6 593 900 3 410 694 Senior management services allowances 16 771 292 13 834 691 Service bonus 21 608 206 13 432 578 Standby allowance 465 233 179 181 Workmen’s compensation 1 395 337 837 609 Risk benefit contributions 6 232 198 5 437 030 Research assistants 1 169 675 1 349 371 Student stipends 1 341 514 2 722 674 Assistant education officer’s 497 791 647 086 Other short term costs 3 451 316 2 146 087 Contract employee remuneration 38 726 499 30 613 402 Retirement fund contributions 21 289 855 13 276 021 Unemployment Insurance Fund 1 755 937 1 198 129 413 905 442 289 565 131

Remuneration of accounting authority and sub committee members

Meeting fees 1 431 138 946 349

During the course of the financial year, the entity’s board term came to an end, resulting in the appointment of a new board. This resulted in increased board fees for the year.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

21. oPerating expenses

Advertising 1 014 102 247 144 Animal costs 7 197 186 - Auditors remuneration (Note 24) 5 950 401 4 930 080 Bank charges 2 730 803 1 440 814 Biological asset costs 1 063 333 1 623 326 Bursaries 8 790 464 6 695 767 Cleaning 6 155 108 5 123 750 Concert - costs 4 185 646 4 235 965 Conferences and seminars 8 048 643 6 751 618 Consulting and professional fees 41 429 291 23 839 034 Consumables 6 560 705 30 842 Entertainment 27 504 49 651 Field trips 578 392 760 229 Hire of equipment 474 163 321 295 Cost of sales 5 239 982 - Insurance 3 130 950 2 710 859 Internal NZG cost 4 471 642 - IT expenses 8 556 619 13 829 348 152 Marketing 2 980 567 789 931 Motor vehicle expenses 7 385 383 5 287 542 Municipal charges 15 498 831 10 152 302 Partnership fees 824 157 - Postage and courier 779 402 654 317 Printing and stationery 4 994 977 5 060 363 Project implementer costs 2 531 422 3 365 764 Protective clothing 971 136 766 804 Recruitment costs 794 481 800 803 Refuse 403 967 466 030 Repairs and maintenance (Note 23) 9 379 740 10 140 345 Royalties 1 095 174 1 009 862 Security 18 385 144 12 886 809 Staff welfare 1 392 811 1 565 813 Subscriptions and membership fees 981 630 85 418 Sundry expenses 6 461 328 6 023 611 Sundry garden and operating expenses 15 833 581 10 688 551 Telephone and fax 4 121 698 3 080 515 Training 2 337 387 2 827 126 Travel–local 21 976 163 18 091 684 Travel–overseas 3 942 417 3 908 329 Uniforms 575 470 61 750 Venue expenses 3 670 895 3 563 881 242 922 695 173 867 272

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

22. debt impairment

Provision for impairment movement (Note 4) 458 909 90 807 23. repairs and maintenance

Expenditure incurred to repair and maintain property, plant and equipment 9 379 740 9 820 115 Expenditure incurred to repair and maintain investment property - 320 230 9 379 740 10 140 345 24. aUditors’ remuneration

External audit fees 4 048 578 2 779 543 Internal audit fees 1 483 115 1 887 062 Expenses 418 708 263 475 5 950 401 4 930 080 25. cash generated from operations

Surplus 14 251 135 64 016 821 Adjustments for: Depreciation and amortisation 31 699 280 25 136 691 153 Loss on sale of assets 917 518 (264 716) Fair value adjustments (1 416 410) (2 533 359) Impairment loss (reversal) 2 788 030 (8 668 698) Debt impairment 458 909 90 807 Movements in operating lease assets (61 820) (114 394) Movements in retirement benefit assets and liabilities 8 935 000 17 202 020 Movements in provisions 2 830 205 3 528 728 Fair value of donated assets 404 664 (9 200 000) Plants for resale cost 952 419 1 431 532 Foreign exchange loss/(gain) (442 519) 290 Changes in working capital: Inventories (1 362 445) (1 513 485) Receivables from exchange transactions 4 689 198 (3 846 727) Other receivables from non-exchange transactions 1 418 713 12 326 629 Payables from exchange transactions 5 982 078 13 028 567 Transfers payable (non exchange) (18 532 242) 8 919 088 Unspent conditional grants and receipts 8 919 039 43 456 983 62 430 752 162 996 777

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

26. commitments

Authorised capital expenditure

Already contracted for but not provided for

• Property, plant and equipment 48 957 240 68 863 048 • Intangible assets 5 173 048 4 348 687 54 130 288 73 211 735

Total capital commitments

Already contracted for but not provided for 54 130 288 73 211 735

The above commitments will be financed by retained surpluses, existing cash resources, funds internally generated and government grants.

Operating leases–as lessee (expense) Minimum lease payments due - within one year 624 308 808 380 - in second to fifth year inclusive 369 270 207 778 993 578 1 016 158

154 Operating lease payments represent rentals payable by the entity for certain of its office equipment. Leases are negotiated for an average term of three years and rentals are fixed for an average of three years. No contingent rent is payable.

27. contingencies

Guarantees Staff housing guarantees, estimated maximum 53 030 118 170 Recoverable from retirement funds (53 030) (118 170) - -

SANBI assists qualifying officials partly for housing loans from financial institutions. For this purpose agreements have been entered into with approved financial institutions to the effect that SANBI will guarantee a maximum of 20% of the housing loan for which a person qualifies. The maximum amount is based on the official’s basic salary. SANBI guaranteed three loans in the current year (2018: 8). The guarantees are fully recoverable from the employees’ cash portion of their retirement fund.

Claim submitted by third parties

Claim totalling R19 202 (2018: R nil) has been submitted by third party for loss inflicted by SANBI property. The claim has been submitted to the insurers for assessment of liability. The claim is still under investigation.

Claim totalling R630 890 (2018: R nil) has been submitted by third party for loss suffered on SANBI property. The claim has been submitted to the insurers for assessment of liability. The claim is still under investigation.

Contingent assets

Appointment of a contractor for the construction of new office building, repairs, renovations and upgrades at the KZN Herbarium. A dispute referred by contractor to arbitration. SANBI has a counter claim less estimated future costs including costs of experts, legal costs and arbitration to the value of R 7 146 030.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018 28. reconciliation of budget and actual amounts

Material differences between budget and actual amounts

Variances of 10% or more are provided for lines items that are budgeted for.

The variances between the approved budget and actual results are due to the following:

Admission fees–Given the tough economic conditions, the increase in visitor numbers did not meet the projected anticipated visitor number increases.

Rent received–An increase in visitor numbers enabled the entity to generate higher rentals as rentals are based on turnover.

Interest received–Long term project funds inflows enabled investment of excess cash at more advantageous rates.

Goverment grants–Includes additional funding received for Groen Sebenza and infrastructure upgrades.

Other grants, bequests, sponsorships and donations – project funds were not received as expected due to later commencement dates

Employee related costs–Overall there is underspending on the budget as a result of timing differences between the funds received and project plans.

Operating expenditure–This budget includes both operating and capital expenditure. The actual capital expenditure is 155 capitalised. In aggregate, the actual operating and capital expenditure is not materially different to the budget. 29. related parties

Relationships

Controlling entity Department of Environmental Affairs Entities under common control South African National Parks South African Weather Services iSimangaliso Wetland Park Members of key management Refer to Note 31

Related party balances Trade receivables Department of Environmental Affairs 84 649 464 649 South African National Parks - 5 590

Related party transactions Government grants Department of Environmental Affairs 464 651 000 369 228 000

Other grants, bequests, sponsorships and donations Department of Environmental Affairs 250 000 730 000

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

29. related parties (CONTINUED)

Compensation to members and other key management Board members remuneration 1 328 406 824 619 Board sub-committee members remuneration 102 732 121 730 Executive committee remuneration 16 222 464 14 841 439 17 653 602 15 787 788

30. rIsk management

Financial risk management

The entity’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, fair value interest rate risk and cash flow interest rate risk), credit risk and liquidity risk.

In the course of SANBI’s operations it is exposed to credit, liquidity and market risk. SANBI has developed a comprehensive risk strategy in terms of Treasury Regulation 27.2 (require a public entity to have a comprehensive risk management strategy, which includes a fraud prevention plan) in order to monitor and control these risks. The risk management process relating to each of these risks is discussed under the headings below.

SANBI’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on SANBI’s financial performance. SANBI does not use derivative financial instruments to hedge 156 risk exposures. Risk management is performed by management under policies approved by the executive committee. Management identifies, evaluates and manages financial risks in close co-operation with SANBI’s operating units.

Liquidity risk

The entity’s risk to liquidity is a result of the funds available to cover future commitments. The entity manages liquidity risk through an ongoing review of future commitments and credit facilities.

Cash flow forecasts are prepared.

Prudent liquidity risk management implies maintaining sufficient cash and obtaining the continued commitment from the Department of Environment, Forestry and Fisheries for the government grant and related project funding. Due to the nature of the business, management maintains flexibility in funding by maintaining expenses below budget. The table below analyses SANBI’s financial liabilities into relevant maturity groupings based on the remaining period at the statement of financial position date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Carrying amounts equate to their fair values.

At 31 March 2019 Less than 1 Between 1 and Between 2 and Over 5 years year 2 years 5 years Trade and other payables 47 625 639 - - -

At 31 March 2018 Less than 1 Between 1 and Between 2 and Over 5 years year 2 years 5 years Trade and other payables 40 608 266 - - -

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

30. rIsk management (CONTINUED)

Credit risk Credit 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. Financial assets, which potentially subject SANBI to the risk of non performance by counter parties, consist mainly of cash and cash equivalents and accounts receivable. SANBI limits its treasury counter-party exposure by only dealing with well-established financial institutions approved by National Treasury through the approval of their cash management policy in terms of Treasury Regulation. SANBI’s exposure is continuously monitored by the Accounting Authority. SANBI does not have any material exposure to any individual or counter-party. SANBI’s largest concentration of credit risk is limited mainly to the sale of plants. No events occurred in the industry during the financial year that may have an impact on the accounts receivable that has not been adequately provided for. SANBI no longer assists qualifying employees to obtain 100% housing loans from financial institutions without a cash deposit, as the financial institution concentrate more on the affordability other than what the staff member qualifies for. However, these guarantees are fully recoverable from the employees’ cash portion of their retirement fund. Due to the nature of the Institute’s financial instruments it is highly unlikely that the Institute will encounter difficulty in raising funds to meet commitments associated with financial instruments.

Maximum exposure to credit risk of financial assets at year-end Trade receivables 11 669 203 7 633 553 Cash and cash equivalents 387 209 492 366 845 816 398 878 695 374 479 369 157

Fair value of financial assets at year-end Trade receivables 11 669 203 7 633 553 Cash and cash equivalents 388 164 873 367 863 325 399 834 076 375 496 878 Market risk

Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. SANBI obtains competitive rates from approved financial institutions on a monthly basis. As SANBI has significant interest-bearing assets, hence SANBI’s income and operating cash flows are dependent on changes in market interest rates. SANBI reviews its interest rate exposure on a regular basis. Market rates are compared with stable and credit-rated financial institutions.V arious institutional rates are simulated taking into consideration terms of deposits, availability of cash resources and any related risk factors. SANBI’s exposure to interest rate risk and the effective interest rates on financial instruments at the financial reporting date are as follows:

Assets Cash deposits: 6% effective interest (2018: 5%) 387 209 492 366 845 816

Sensitivity analysis Investment income at a 1% deposit rate increase 3 872 094 3 668 458

Sensitivity analysis Investment income at a 1% deposit rate decrease (3 872 094) (3 668 458) Based on these scenarios, the impact of a positive 1% shift in deposit interest rates will have a R 3 872 094 (2018: R 3 668 458) impact on income.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

30. rIsk management (CONTINUED)

Foreign exchange risk

The entity does not operate internationally, but undertakes some transactions denominated in foreign currencies, and is thus exposed to foreign exchange risk arising from fluctuations in foreign currencies. The entity does not hedge itself against exposure to foreign exchange risk. Foreign currency exposure at financial year-end relates to trade payables and is disclosed in the note to the annual report.

At 31 March 2019, if the currency had strengthened by 11% against the US dollar with all other variables held constant,the surplus for the year would have been R 63 645 (2018: R 1 092) higher, mainly as a result of foreign exchange gains or losses on translation of US dollar.

Foreign currency exposure at statement of financial position date

Liabilities USD 36 890 (2018: 840) 538 620 9 923 GBP 1325 (2018: Nil) 25 172 - AUD 1430 (2018: Nil) 14 803 -

Exchange rates used for conversion of foreign items were:

` 158 USD 14.5968 11.8128 GBP 18.9977 - AUD 10.3519 -

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

31. board and executive members’ emoluments

Board and committee members Fees Fees Ms B.D. Ferguson (Board Chairperson 01/10/18–31/03/18) 146 360 - Ms M.E. Magomola (Board Chairperson 01/04/18–31/05/18) 63 090 140 230 Dr J.M. Matjila [ 01/04/18–30/09/18 (Acting Board Chairperson 01/06/18–30/09/18)] 106 619 112 665 Dr M. Rampedi–Chief Executive Officer (ex officio) - - Prof. C.T. Chimimba* (01/04/18–31/03/19) 14 676 31 302 Dr S.T. Cornelius (01/04/18–30/09/18) 112 741 95 978 Mr J.G. Dladla* (01/07/18–31/03/19) 14 676 - Dr L. Dziba* (01/04/18–31/03/19) 18 345 24 346 Ms T. Godongwana (01/04/18–31/03/19) 115 575 74 888 Mr S. Gounden (01/04/18–30/09/18) 82 173 90 872 Mr L.J. Makoro* (01/04/18–30/09/18) 22 014 34 780 Ms S. Mancotywa** (01/04/18–30/09/18) - - Ms N.N. Mnqeta (01/04/18–30/09/18) 85 842 104 784 Ms B.D. Ngidi (01/04/18–30/09/18) 101 994 118 252 Dr Y. Seleti** (01/04/18–31/03/19) - - Prof. B.W. van Wilgen (01/04/18–31/03/19) 77 049 86 950 Mr T. Zororo* (01/04/18–30/09/18) 25 683 31 302 159 Ms J. Hermans (01/10/18–31/03/19) 69 711 - Dr L.T. Luthuli (01/10/18–31/03/19) 77 172 - Ms V.J. Klein (01/10/18–31/03/19) 94 647 - Ms L. Makotoko** (01/10/18–31/03/19) - - Ms P.N. Mngomezulu (01/06/18–31/03/19) 108 237 - Prof. M. Muthama* (14/01/19–31/03/19) 7 338 - Dr C.G. Olver (01/10/18–31/03/19) 87 196 - 1 431 138 946 349

* Board sub–committee member

** No honoraria were paid–state employee

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

31. board and executive members’ emoluments (CONTINUED)

2019 Executive members Basic Non Bonuses Pension and Total 2019 pensionable medical allowances benefits M. Rampedi–Chief 1 486 918 372 858 - 150 851 2 010 627 Executive Officer C.H .Mbizvo–Head of Branch: Biodiversity 1 179 353 568 699 - 119 205 1 867 257 Research, Policy and Knowledge Management L. Sithole–Chief Financial Officer 1 235 589 318 910 - 94 454 1 648 953 M.E. Khoahli–Chief Corporate Officer 924 308 399 869 - 117 440 1 441 617 M.J .Netshiombo–Chief Director: Human 1 078 358 234 264 - 128 994 1 441 616 Resources C.K .Willis–Chief Director: Conservation 924 308 404 561 - 108 656 1 437 525 Gardens and Tourism R.J. Sebola–Chief Director: Biosystematics 929 187 224 529 - 85 850 1 239 566 and Collections J.S. Donaldson–Chief Director: 897 193 391 994 - 106 622 1 395 809 Biodiversity Research, Information and 160 Monitoring K.E. Maze–Chief Director: Biodiversity 845 196 351 276 64 450 107 645 1 368 567 Planning and Policy Advice M. Barnett–Leader: Climate Fund 784 670 331 060 - 106 967 1 222 697 C. Allenby–Acting Managing Director 738 833 183 137 - 226 260 1 148 230 NZG 11 023 913 3 781 157 64 450 1 352 944 16 222 464

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

31. board and executive members’ emoluments (continued)

2018 Executive members Basic Non Bonuses Pension and Total 2018 pensionable medical allowances benefits M. Rampedi–Chief Executive Officer (ex 784 194 213 429 - 74 445 1 072 068 officio) (01/09/2017 - 31/03/2018) T.E. Abrahamse–Chief Executive Office(ex 637 121 298 164 57 105 59 059 1 051 449 officio) (01/04/2017 - 31/08/2017) C.H. Mbizvo–Head of Branch: Biodiversity 1 211 683 549 950 52 225 117 245 1 931 103 Research, Policy and Knowledge Management L.Sithole–Chief Financial Officer 1 171 175 303 213 43 917 89 623 1 607 928 M.E. Khoahli–Chief Corporate Officer 876 121 384 268 38 328 107 094 1 405 811 M.J. Netshiombo–Chief Director: Human 1 007 038 230 392 37 204 110 136 1 384 770 Resources C.K. Willis–Chief Director: Conservation 863 175 379 915 37 204 105 391 1 385 685 Gardens and Tourism R.J. Sebola–Chief Director: Biosystematics 867 724 212 555 - 78 237 1 158 516 and Collections J.S. Donaldson–Chief Director: 837 855 383 173 36 113 103 492 1 360 633 161 Biodiversity Research, Information and Monitoring K.E. Maze–Chief Director: Biodiversity 837 855 362 441 36 113 104 224 1 340 633 Planning and Policy Advice M. Barnett–Leader: Climate Fund 732 767 313 737 - 96 342 1 142 846 9 826 708 3 631 237 338 209 1 045 288 14 841 442

32. oPerating lease–as lessor

Minimum lease payments due - Within one year 5 543 350 5 186 371 - Between two to five years 11 691 400 10 546 916 - Later than five years - 32 029 17 234 750 15 765 316

The entity has entered into commercial property leases for the maximum duration of five years period. These leases are negotiated for a term of between one year and five years and rentals are turnover based between 5% and 10% with a minimum rental amount payable.

There are no contingent rents receivable.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

33. fInancial instruments disclosure

Categories of financial instruments

2019 Financial assets At amortised cost Total Cash and cash equivalents 388 164 873 388 164 873 Trade and other receivables from exchange transactions 11 669 203 11 669 203 399 834 076 399 834 076

Financial liabilities At amortised cost Total Trade and other payables from exchange transactions 47 625 639 47 625 639

2018 Financial assets At amortised cost Total Cash and cash equivalents 367 863 325 367 863 325 Trade and other receivables from exchange transactions 7 633 553 7 633 553 375 496 878 375 496 878 162 Financial liabilities At amortised cost Total Trade and other payables from exchange transactions 40 608 266 40 608 266

34. segment information

General information

Identification of segments

The entity is organised and reports to management on the basis of mandated areas. The segments were organised around the type of service delivered and the target market. Management uses these same segments for determining strategic objectives. Segments were aggregated for the type of services and target market for reporting purposes.

The segmental information have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP), issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance Management Act (Act 1 of 1999).

The segment information have been prepared on an accrual basis of accounting and are in accordance with historical cost convention as the basis of measurement, unless specified otherwise. They are presented in South African Rand.

Information reported about these segments is used by management as a basis for evaluating the segments’ performances and for making decisions about the allocation of resources. The disclosure of information about these segments is also considered appropriate for external reporting purposes.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

34. segment information (CONTINUED)

Types of goods and/or services by segment

These reportable segments as well as the goods and/or services for each segment are set out below:

Reportable segment Goods and/or services Conservation gardens and tourism National Botanical Gardens and related materials Science policy and research Biodiversity research and policy advice Zoological garden and tourism National Zoological Garden and related materials Zoological research Zoological research and related materials

2019

Conservation Science policy Zoological Zoological Total garden and and research garden and research tourism tourism Revenue Revenue from non-exchange 100 058 448 238 715 723 - 3 890 000 342 664 171 transactions Revenue from exchange 90 450 796 7 188 683 43 068 634 6 242 530 146 950 643 transactions Interest revenue 4 782 670 1 265 834 - - 6 048 504 163 Total segment revenue 195 291 914 247 170 240 43 068 634 10 132 530 495 663 318 Head office revenue 226 013 011 Entity’s revenue 721 676 329

Expenditure Salaries and wages 107 146 867 126 217 426 55 193 024 13 212 352 301 769 669 Other expenses 47 310 060 69 877 301 23 003 316 6 706 345 146 897 022 Total segment expenditure 154 456 927 196 094 727 78 196 340 19 918 697 448 666 691

Total segmental surplus/ 40 834 987 51 075 513 (35 127 706) (9 786 167) 46 996 627 (deficit) Total revenue reconciling 226 013 011 items Head office expenditure (258 758 503) Total segment surplus 46 996 627

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

34. segment information (continued)

2018

Conservation Science policy Total garden and and research tourism Revenue Revenue from non-exchange transactions 115 561 515 177 492 275 293 053 790 Revenue from exchange transactions 85 732 353 1 327 750 87 060 103 Interest revenue 4 560 443 4 405 442 8 965 885 Total segment revenue 205 854 311 183 225 467 389 079 778 Head office revenue 156 621 832 Entity’s revenue 545 701 610

Expenditure Salaries and wages 100 332 560 111 795 156 212 127 716 Other expenses 53 310 744 91 352 046 144 662 790 Total segment expenditure 153 643 304 203 147 202 356 790 506

Total segmental surplus/(deficit) 52 211 007 (19 921 735) 32 289 272 164 Total revenue reconciling items 156 621 832 Head office expenditure (124 894 283) Total segment surplus 32 289 272 Entity’s surplus for the period 64 016 821

Additions to non-current assets, total assets and total liabilities of segments have not been disclosed as the amounts are not regularly provided to management for review.

Information about geographical areas

Science policy and research segment is not defined to a specfic geograhical location.

The entity’s conservation garden and tourism operations are in eight of the nine provinces. The entity’s zoological garden and tourism operates in the Gauteng Province.

The table below indicates their relevant geographical information after eliminating inter segmental transfers:

2019

External revenues from non- External revenues from Total exchange transactions exchange transactions expenditure Gauteng 103 410 363 62 078 278 144 649 255 Western Cape 114 237 77 976 624 69 927 705 Free State 400 000 1 612 112 10 779 836 KwaZulu-Natal 200 956 982 8 682 514 Mpumalanga 80 1 692 610 14 722 307 Northern Cape 23 568 228 026 2 311 388 Limpopo - - 1 045 665

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

34. segment information (continued)

2018

External External Total revenues from revenues from expenditure non-exchange exchange transactions transactions Gauteng 75 297 825 13 348 105 42 161 110 Western Cape 29 099 979 72 583 367 78 931 253 Free State 1 326 439 1 478 675 9 472 687 KwaZulu-Natal 7 412 072 1 029 806 7 886 657 Mpumalanga 2 425 200 1 703 482 13 148 827 Northern Cape - 149 361 2 042 770 Total 115 561 515 90 292 796 153 643 304

Non-current assets are excluded from the above table as the necessary information is not available and the cost to develop it would be excessive.

35. Irregular expenditure

Opening balance 29 528 835 - 165 Add: Irregular Expenditure–current year 5 327 700 18 727 088 Add: Irregular Expenditure–prior year 14 932 518 10 808 674 Less: Amounts condoned (32 351 122) (6 927) 17 437 931 29 528 835

Analysis of expenditure awaiting condonation per age classification

Current year 1 284 414 18 720 161 Prior years 16 153 517 10 808 674 17 437 931 29 528 835

Details of irregular expenditure – current year Disciplinary steps taken Non-compliance with SCM policy and Treasury Disciplinary action taken, awaiting condonation 58 083 Regulation 16A6.1 Non-compliance with SCM policy and Treasury Disciplinary action taken, awaiting condonation 33 060 Regulation 16A6.1 Non-compliance with the Delegations of Disciplinary action taken and condoned by AA 3 256 971 Authority Non-compliance with SCM policy and Treasury Disciplinary action taken and condoned by CEO 786 315 Regulation 16A6.1 Non-compliance with SCM policy and Treasury Awaiting consquence management and 16 125 789 Regulation condonation 20 260 218

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018 35. Irregular expenditure (CONTINUED)

Details of irregular expenditure condoned Condoned by (condoning authority) Non-compliance with the Delegations of Authority Disciplinary action taken and condoned by AA 10 808 674 Non-compliance with the Delegations of Authority Disciplinary action taken and condoned by AA 17 499 162 Non-compliance with the Delegations of Authority Disciplinary action taken and condoned by AA 3 256 971

36. comparative figures

Certain expenditure items have been correctly classified into their appropriate classification accounts.

The reclassification affects the operating expenditure and had no effect on the net surplus as previously reported.

The impact of the restatement on the 2018 figures is as follows:

Statement of Financial Performance As previously Adjustment Amount restated stated

Employee related costs–Basic 204 586 910 -33 678 974 170 907 936 166 Employee related costs–Medical aid company 1 180 075 13 767 793 14 947 868 contribution Employee related costs–Risk benefit - 5 437 030 5 437 030 Employee related costs–Other short term costs 2 051 634 94 453 2 146 087 Employee related costs–Contract employee remuneration 30 806 053 -192 651 30 613 402 Employee related costs–Retirement fund contributions - 13 276 021 13 276 021 Employee related costs–Unemployment insurance fund - 1 198 129 1 198 129 Lease rentals on operating lease 805 720 -58 774 746 946 Advertising 286 553 -39 409 247 144 Assessment rates & municipal charges 71 683 -71 683 - Bank charges 1 440 808 6 1 440 814 Biological asset cost 1 623 092 234 1 623 326 Bursaries 6 273 948 421 819 6 695 767 Cleaning 5 014 319 109 431 5 123 750 Commission paid 1 009 862 -1 009 862 - Concert–costs - 4 235 965 4 235 965 Conferences and seminars 6 664 743 86 875 6 751 618 Consulting and professional fees 24 841 563 -1 002 529 23 839 034 Consumables - 30 842 30 842 Electricity 7 614 808 -7 614 808 - Entertainment 142 394 -92 743 49 651 Field trips 806 835 -46 606 760 229 Hire of equipment 339 249 -17 954 321 295 Insurance 2 706 359 4 500 2 710 859

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018 36. comparative figures (CONTINUED)

IT expenses 13 313 956 515 392 13 829 348 Marketing 8 451 736 -7 661 805 789 931 Motor vehicle expenses 5 334 389 -46 847 5 287 542 Municipal charges - 10 152 302 10 152 302 Postage and courier 662 141 -7 824 654 317 Printing and stationery 5 156 068 -95 705 5 060 363 Project implementer costs 3 465 764 -100 000 3 365 764 Protective clothing 653 786 113 018 766 804 Recruitment costs 802 149 -1 346 800 803 Refuse 466 839 -809 466 030 Repairs and maintenance – PPE 10 233 915 -413 800 9 820 115 Royalties - 1 009 862 1 009 862 Security 12 910 732 -23 923 12 886 809 Staff welfare 1 726 968 -161 155 1 565 813 Subscriptions and membership fees 191 058 -105 640 85 418 Sundry expenses 6 273 046 -249 435 6 023 611 Sundry garden and operating expenses 9 711 203 977 348 10 688 551 167 Telephone and fax 2 943 101 137 414 3 080 515 Training 2 786 551 40 576 2 827 127 Travel–local 18 109 689 -18 005 18 091 684 Travel–overseas 3 905 369 2 960 3 908 329 Uniform 50 378 11 372 61 750 Venue expenses - 3 563 881 3 563 881

37. Prior period errors

Property, plant and equipment has been restated from R257 298 628 to R271 364 069 to account for assets not previously recognised in the asset register and change in estimated useful lives.

Heritage assets has been restated from R17 682 262 to R17 906 324 to account for assets not previously recognised in the asset register.

Intangible assets has been restated from R7 882 745 to R7 658 225 to account for change in estimate of useful lives. Payables from exchange transactions has been restated from (R 59 010 005) to (R58 204 092) as a result of a credit note being received for previously charged services.

These errors could not be split between the segments in the Institute.

The correction of the error results in adjustments on the 2017/2018 figures as follows:

Property, plant and equipment has increased by R 14 065 441, heritage assets increased by R 224 062, intangible assets decreased by R 224 520 and payables from exchange transactions decreased by R 805 913 with a net adjustment to opening accumulated surplus of R 14 870 896.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

37. Prior period errors (CONTINUED)

The impact of the prior period errors on the 2018 figures is as follows:

Statement of Financial Position As previously Reclassification Prior period Amount stated entries error restated adjustment

Property, plant and equipment 257 298 628 14 065 441 271 364 069 Heritage assets 17 682 262 224 062 17 906 324 Intangible assets 7 882 745 (224 520) 7 658 225 Payables from exchange (59 010 005) 805 913 (58 204 092) Accumulated surplus (542 275 495) (14 870 896) (557 146 391)

Statement of Financial Performance

Employee related costs 289 663 330 (98 199) 289 565 131 168 Operating expenses 180 054 301 156 980 (6 344 009) 173 867 272 Lease rentals on operating lease 805 720 (58 774) 746 946 Depreciation 24 948 238 188 453 25 136 691 Impairment loss 46 642 (8 715 341) (8 668 699)

38. transfer of functions between entities under common control

Transfer of functions between entities under common control occurring during the current reporting period

Entities involved in the transfer of functions were:

Department of Science and Technology (DST) - National Research Foundation (NRF).

Department of Environmental Affairs (DEA) - South African National Biodiversity Institution (SANBI) .

The following functions were transferred:

The National Zoological Garden (NZG).

The transfer was due to The NZG being a national research facility under the control and the management of NRF, a public entity reporting to the DST. In 2013 , the DST proposed a transfer of the NZG from the NRF to SANBI, the DEA’s public entity. Following a due diligence exercise commissioned by a high level task team comprising officials of the national departments and the two public entities, it was determined that the transfer of the NZG to SANBI was both feasible and desirable.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 NOTES TO THE FINANCIAL STATEMENTS

Figures in Rand 2019 2018

38. transfer of functions between entities under common control (CONTINUED)

The transfer of function took place during the 2018/2019 financial year. The transfer was implemented on 01 April 2018.

Value of the assets acquired and liabilities assumed

Assets transfered Property plant and equipment 26 279 796 - Inventory 1 915 560 - Receivables from exchange transactions 9 183 757 - Cash and cash equivalents 1 424 303 - 38 803 416 -

Liabilities assumed Trade and other payables 11 650 810 - Employee benefits 872 810 - 12 523 620 - Difference between the carrying amounts of the assets acquired, the 26 279 796 - liabilities assumed and adjustments required to the basis of accounting Difference between net assets and the consideration paid 26 279 796 - 169 Contingent liabilities and contingent assets attributable to a transfer of functions

There was no contingent liabilites or contingent assets attributable to the transfer of functions of the national zoological garden.

Revenue and expenditure attributable to a transfer of functions Revenue from exchange transactions = R 53 808 602 Revenue from non-exchange transactions = R 81 559 000 Employee remunerationand other related costs = (R 89 465 728) Operational expenditure = (R 50 892 841) Net loss = R 4 990 967 39. services in-kind

The NZG uses buildings and facilities situated at Boom Street, Pretoria and Mokopane, which belong to the Department of Public Works. These buildings and facilities are used in a variety of ways including offices, animal holding facilities, research, restaurants and entertainment. The value of the services in derived from their use is estimated at R 12 442 451. The size of the areas occupied are included as part of Note 10.

South African National Biodiversity Institute South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ANNEXURE A–DONATIONS, OTHER GRANTS AND SPONSORSHIPS

GovernmentWater 2 474 929 -2 474 929 - March 2019 March 2018 Agricultural Research Council - 20 000 Council for Scientific and Industrial Research CS( IR) 622 758 1 507 752 Department of Environmental Affairs 250 000 730 000 Department of Science and Technology 27 900 000 21 954 000 Department of Tourism - 44 200 000 National Research Foundation (NRF) 12 757 546 7 169 321 Rand Water 160 000 - South African National Energy Development Institute 80 190 73 500 Water Research Commission 400 000 500 000 42 170 494 76 154 573

Foreign Conservation Beyond Borders 59 491 - Critical Ecosystem Partnership Fund (via Birdlife SA) - 52 542 European Union (via United Nations Department of Economic & Social Affairs) - 1 071 135 Global Biodiversity Information Facility (GBIF) - 2 339 459 Global Environment Facility (via Development Bank of South Africa) 6 700 205 189 334 170 Green Climate Fund 2 386 220 - International Union for Conservation of Nature (IUCN) 511 587 133 498 JRS Biodiversity Foundation 2 371 589 1 964 781 Mohamed Bin Zayed Foundation 127 775 - Royal Botanic Gardens Kew 1 059 232 676 117 The Adaptation Fund 3 066 508 32 532 112 Trace Wildlife Forensics 77 000 - Traffic International 445 500 - UN Environment - World Conservation Monitoring Centre 325 219 - United Nations Development Programme (UNDP) 19 002 405 25 134 357 University of Tel Aviv 24 900 - 36 157 631 64 093 335

Corporate Cadbury 80 000 - Offlimit Communication (Pty) Ltd - 40 000 80 000 40 000

Individuals and Organisations A24D24 Dot Com (Pty) Ltd 47 058 - Dylan Lewis - 62 500 MacGregor Family 23 568 - Mr Iain Hume - 30 000 Table Mountain Fund (TMF) 150 000 150 000 The Botanical Society of South Africa 1 738 567 1 352 455 2 074 693 2 415 815 *The supplementary information presented does not form part of the financial statements and is unaudited.

Annual Report I 2018/19 South African National Biodiversity Institute Financial statements for the year ended 31 March 2019 ANNEXURE A–DONATIONS, OTHER GRANTS AND SPONSORSHIPS

Trusts March 2019 March 2018 BOE Trust Ltd 30 000 30 000 Botanical Education Trust 22 000 12 000 Estate Late Derek Fitzroy du Toit 50 000 60 000 Frances M Hawes Bequest 932 827 The Green Trust - 471 000 102 932 573 827

Other Bench donations - 109 000 Sundry donations 7 896 4 909 7 896 113 909

Total donations, grants and sponsorships 80 593 645 143 391 459

Conditional donations, grants and sponsorships 33 156 666 133 521 608 Unconditional donations, grants and sponsorships 23 555 107 9 869 851 171 Bequests 30 932 - Exchange revenue 10 847 047 - Donations 511 606 - Agency 12 492 287 - 80 593 645 143 391 459

*The supplementary information presented does not form part of the financial statements and is unaudited.

South African National Biodiversity Institute Biodiversity for Life South African National Biodiversity Institute

Copies of this report are available from: South African National Biodiversity Institute Private Bag X7, Claremont, 7735 Tel: 021 799 8800 | Fax: 021 762 3229 or Private Bag X101, Silverton, 0184 Tel: 012 843 5000 Fax: 012 804 3211 www.sanbi.org For submission in terms of the Public Finance Management Act No. 1 of 1999, August 2012

ISSN 1021-7460

We acknowledge the photographic contributions of SANBI staff, fellow researchers and conservationists with appreciation.