cgs annual performance plan 2019/2020

CGS Annual Performance Plan 2019/2020

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FOREWORD

The Council for Geoscience (CGS) has adopted a new strategy in 2018/2019 financial year to refocus the functions of the organisation to its legislatively prescribed mandate. This refocus of the CGS strategy was primarily determined to provide a framework that seeks to optimise the delivery of the CGS programme (i.e. the integrated and multidisciplinary geoscience mapping programme at a scale of 1: 50 000) which is sufficiently aligned with the intent of “science applications in responding to current and future societal challenges” as well as National imperatives.

This document presents the CGS Annual

Performance Plan (APP) for the Medium Term

Expenditure Framework (MTEF) period 2019–2022,

which operationalises the five-year Strategic Plan of

the CGS. The CGS APP outlines the Geoscience

Technical Programme, which supports the strategic

objectives. The APP further provides an indication

of financial and Human Resources allocations, as

well as performance indicators and targets.

The APP also highlights the linkages of the work of

CGS to national developmental imperatives that

span the National Development Plan, Medium

Term Strategic Framework (MTSF), the 10-year

innovation plan of the DST, the DMR goals,

transformative agenda, environmental

stewardship, energy security, etc.

We are delighted to present the APP of the Council for Geoscience for 2019/2020 in support of accelerating the delivery of our mandate, as inscribed in the Geoscience Act, Act No. 100 of 1993 and the Geoscience Amendment Act, Act No. 16 of 2010. This APP is closely aligned to the CGS strategy integrating all critical aspects of the geosciences.

___________________________ ___________________________ Mr Mosa Mabuza Dr Humphrey Mathe Chief Executive Officer Chairperson of the Board

CGS Draft Annual Performance Plan FY 2019/2020_Final

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OFFICIAL SIGN-OFF

It is hereby certified that this Annual Performance Plan:

● Was developed by the Management of the Council for Geoscience under the guidance of the Board.

● Considers all the relevant policies, legislation and other mandates for which the Council for Geoscience is

responsible.

● Accurately reflects the strategic goals, strategies and outputs which the Council for Geoscience will

endeavour to achieve over the financial year 2019/2020.

Mr Leonard Matsepe

Chief Financial Officer Signature_____________________

Mr Mosa Mabuza

Chief Executive Officer Signature_____________________

Dr Humphrey Mathe

Chairperson of the Board Signature_____________________

Mr Samson Gwede Mantashe

Executive Authority Signature_____________________


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TABLE OF CONTENTS

FOREWORD .............................................................................................................................................. i

OFFICIAL SIGN-OFF .................................................................................................................................. ii

LIST OF TABLES ....................................................................................................................................... iv

LIST OF FIGURES ..................................................................................................................................... iv

ACRONYMS ............................................................................................................................................ iv

EXECUTIVE SUMMARY ............................................................................................................................ 1

PART A: STRATEGIC OVERVIEW .............................................................................................................. 1

UPDATED SITUATIONAL ANALYSIS .......................................................................................................... 1

1.1 External Environmental Analysis ............................................................................................. 1

1.1.1 Macro Socio-Economic Trends ............................................................................................ 1

1.1.2 Mining Industry Overview ................................................................................................... 2

1.1.3 Stakeholder Analysis ........................................................................................................... 6

1.1.4 Organisational Overview ..................................................................................................... 8

PART B: STRATEGIC OBJECTIVES ........................................................................................................... 11

STRATEGIC CONTEXT............................................................................................................................. 11

STRATEGIC OBJECTIVES AND ANNUAL PERFORMANCE TARGETS FOR MTEF CYCLE (FY 2019/2020 – FY

2021/2022)............................................................................................................................................ 13

1.2 Objective (Programme) 1: Financial sustainability (Financial Perspective) .......................... 13

1.3 Objective (Programme) 2: Organisational Effectiveness and Efficiency (Organisational

Effectiveness and Efficiency Perspective) ......................................................................................... 14

1.4 Objective (Programme 3): An Empowered, Transformed, Motivated and Capacitated

Workforce (Learning and Growth Perspective) ................................................................................ 15

1.5 Objective (Programme) 4. Delivery of the mandate (Stakeholder/Market Perspective) ..... 16

1.6 Objective (Programme) 5. Advisory, Stakeholder Engagement and Knowledge

(Stakeholder/Market Perspective).................................................................................................... 17

QUARTERLY PERFORMANCE TARGTES FOR FY 2019/2020 ................................................................... 18

1.7 Programme 1: Financial Perspective ..................................................................................... 18

1.8 Programme 2: Systems Perspective ...................................................................................... 19

1.9 Programme 3: Learning and Growth Perspective ................................................................. 20

1.10 Programme 4: Stakeholder/Market Perspective .................................................................. 21

OVERVIEW OF THE MTEF BUDGET AND MTEF ESTIMATES .................................................................. 23

1.11 Resource Requirements ........................................................................................................ 23

1.11.1 Income Statement ............................................................................................................. 23

1.11.2 Revenue Analysis .............................................................................................................. 24

1.12 Expenditure Estimates .......................................................................................................... 25


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1.13 Materiality Framework ......................................................................................................... 26

PART C: EXECUTION PLAN ..................................................................................................................... 29

INTEGRATED AND MULTIDISCIPLINARY GEOSCIENCE MAPPING PROGRAMME .................................. 29

1.14 GEOSCIENCE TECHNICAL PROGRAMME AND BUDGETS FOR THE FY 2019/2020 ................. 32

STRATEGIC RISKS ................................................................................................................................... 33

LIST OF TABLES

Table 1: CGS SWOT Analysis ................................................................................................................... 6

Table 2: Stakeholder Analysis ................................................................................................................. 7

Table 3: Financial Perspective – Strategic Objectives, Initiatives and KPIs ........................................... 13

Table 4: Efficiency and Effectiveness Perspective – Strategic Initiatives and KPIs ............................... 14

Table 5: Perspective — Learning and Growth Perspective — Strategic Objectives, Initiatives and KPIs

.............................................................................................................................................................. 15

Table 6: Stakeholder/Market Perspective – Strategic Objectives, Initiatives and KPIs ........................ 16

Table 7: Stakeholder/Market Perspective – Strategic Objectives, Initiatives and KPIs ........................ 17

Table 8: Financial Perspective - Quarterly Targets FY 2019/2020 ........................................................ 18

Table 9: Systems Perspective - Quarterly Targets FY 2019/2020 ......................................................... 19

Table 10: Learning and Growth Perspective - Quarterly Targets FY 2019/2020 .................................. 20

Table 11: Stakeholder/Market Perspective - Quarterly Targets FY 2019/2020 ................................... 21

Table 12: Income Statement ................................................................................................................. 23

Table 13: Analysis of Government Grant Allocation ............................................................................. 24

Table 14: Programme Expenditure per Strategic Objective ................................................................. 25

Table 15: Materiality Framework.......................................................................................................... 26

Table 16: Geoscience technical programme and budgets for FY 2019/2020 ....................................... 32

Table 17: Strategic Risks ....................................................................................................................... 33

LIST OF FIGURES

Figure 1: Inflation. ................................................................................................................................... 2

Figure 2: PESTEL analysis. ....................................................................................................................... 3

Figure 3: CGS Organisational Structure. .............................................................................................. 10

Figure 4: CGS Strategy Articulation Map. ............................................................................................. 12

Figure 5: Matrix of the Integrated and Multidisciplinary Geoscience Mapping Programme. .............. 30

Figure 6: Integrated and Multidisciplinary Geoscience Mapping Programme including detailed

coastal and marine geoscience programme study areas for FY 2018/2019 – FY 2020/2021. ............. 31

ACRONYMS

GTP Geoscience Technical Programme

BSC Balanced Scorecard

CGS Council for Geoscience

DEA Department of Environmental Affairs

DMR Department of Mineral Resources

DST Department of Science and Technology


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DWS Department of Water and Sanitation

ICT Information and Communications Technology

ISO International Organisation for Standardisation

KPI Key Performance Indicator

MTEF Medium Term Expenditure Framework

MTSF Medium Term Strategic Framework

NDP National Development Plan

OAGS Organisation of African Geological Surveys

OECD Organisation for Economic Cooperation and Development

PFMA Public Finance Management Act

POPI Protection of Personal Information Act

SDG Sustainable Development Goal


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EXECUTIVE SUMMARY

The Council for Geoscience’s (CGS) Annual Performance Plan (APP) provides a roadmap for the implementation of the Geoscience Technical Programme (GTP) for the MTEF period. The GTP has adopted an integrated and multidisciplinary approach to optimise delivery of the geoscience mandate. The APP outlines the strategic objectives, which state the intended outcomes and achievement of CGS for the MTEF period; the associated risks and mitigation plans; financial and human resources allocations and the materiality framework which indicates material threshold values for transactions and processes to be initiated if thresholds are exceeded. The APP further includes performance indicators and targets.

PART A: STRATEGIC OVERVIEW

UPDATED SITUATIONAL ANALYSIS

1.1 External Environmental Analysis

1.1.1 Macro Socio-Economic Trends

The South African economic growth has recently signalled positive prospects and accordingly projected to pick

up moderately in 2018–191. This projection is based on the assumption that business confidence is increasing.

The levels of poverty, unemployment and inequality remain unacceptably high, threatening to reverse the gains

of a democratic dispensation over the past 24 years. However, the longstanding fiscal discipline, including an

inflation targeting policy are yielding results, with the largely contained within the policy range of 3 to 6% since

2011, notwithstanding a few anomalous incidents (see Figure 1: Inflation)2. A low inflation environment leaves

room for a moderately expansionary monetary policy to support economic activity.

The OECD Economic Survey of South Africa3 highlights certain risks to growth, the bulk of which are being

addressed by the Government. The central bank reduced the repurchase rate from 6.75% to 6.5% in March 2018.

Increasing the efficiency of public investment in infrastructure is much needed to boost productivity. An

unexpected slippage of the budget deficit is contributing to growth in the short term, but is also creating more

pressure to contain rising public debt.

1 Developments in individual OECD and selected Non-Member Economies 2 Statistics South Africa and OECD Economic Outlook 102 database 3http://www.oecd.org/eco/surveys/economic-survey-south-africa.htm

http://www.oecd.org/eco/surveys/economic-survey-south-africa.htm


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Figure 1: Inflation.

Prudent and effective spending of funds and better control of the deficits of state-owned enterprises are

necessary to raise fiscal credibility and create room for public investment to foster growth and reduce social

inequality. Reforms to ease the cost of doing business boost entrepreneurship, lifting competition barriers in

many sectors and facilitating the expansion of firms in the African region, will boost productivity and help create

jobs.

1.1.2 Mining Industry Overview

The mining industry remains an important player in the South African economy. The industry directly contributes

R8 for every R100 produced by the national economy and employs one in every 40 working individuals (or 2,5%

of the entire workforce)4. Mining is the largest industry in four of South Africa’s nine provinces: North West,

Limpopo, Mpumalanga and Northern Cape. In particular, mining contributed R33 for every R100 produced by

North West’s economy in 2015, and the industry employed one in every six working individuals (or 16% of the

provincial workforce). Importantly, the inter-dependence of other economic sectors on the mining industry may

be neither overstated nor readily quantifiable to illustrate its significance to the economy.

The protracted effects of a global economic and financial crisis have collectively contributed to the decline in

production of various commodities, scaling down of employment as well as a significant drop in green-field

exploration.

The early signs of commodity price recovery have been consistent over the past two years, suggestive of base-

consolidation for a longer term growth of the sector. This necessitates that the country prepares itself to

leverage optimal value from mineral exploitation in the current boom.

Although the entire country has been covered in terms of maps at the scales 1:1 million and 1:250 000, the

detailed geological published map coverage of South Africa at 1:50 000 scale remains un-competitively low at

less than 5%. Consequently, the country has fallen out of the global top-ten exploration expenditure against

peer jurisdiction whose comparative detailed geological mapping is correlatively highest. The South African

Government has re-affirmed its commitment to investment in the implementation of the multi-disciplinary and

integrated geological mapping programme by the CGS, which seeks to significantly enhance the knowledge and

understanding of the geosciences in the country.

4 Statistics South Africa


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The external environment consists of variables/forces that are outside the traditional boundaries of the CGS and therefore are not typically within the short-term control of the organisation. These variables shape the context within which the organisation exists and present it with threats and opportunities that have the potential to either retard or stimulate strategic success. The variables include diverse factors such as rapid technological change, Government action, the socio-economic climate and energy. The following factors were assessed by means of the PESTEL analysis:

Figure 2: PESTEL analysis.

Political: The CGS reports to and supports the DMR in executing its mandate and priorities. The CGS takes

direction from the strategic goals of the DMR in developing its own strategies. As a science institution, the CGS

reports on scientific research and innovation to the Department of Science and Technology (DST). Other

Government policies and priorities such as transformation are central to the normalisation of the longstanding

irregularities of society, in keeping with the democratic values of the country. To this end, the CGS subscribes to

the transformation agenda in respect of broad-based black economic empowerment, employment equity and

economic growth.

Economic: The slow rate of recovery from the global economic downturn has meant that the Government’s

fiscal strength is accordingly limited. The CGS appreciates this possible constraint, but mitigates it in presenting

a strategy that seeks to provide requisite quality data with profound impact on long-term national

developmental and investment decisions.

The ability of the CGS to generate external revenue to supplement the Government grant, as it had prior to the

economic downturn, has been vastly reduced. The contribution of external revenue has been reduced

significantly in relation to the total revenue of the CGS. The expansionary policy in terms of increased

expenditure on infrastructure development has afforded the CGS the opportunity to focus on South Africa.

Further, the slow recovery has the potential to limit Government’s ability to fund the delivery of the CGS

mandate due to other pressing and competing socio-economic priorities.


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Commodity price and demand fluctuations

The demand of platinum metal has been predicted to go down in the years to come, due to the emerging

technology of electric vehicles that use battery metals. This might also impact negatively on platinum prices.

Platinum is mainly used in the automotive industry as catalytic converters, which help to reduce harmful

poisonous emissions from vehicles. On the other hand, platinum is also used in the jewellery industry. The

introduction of electric vehicles presents a new demand and an emergence of demand for other battery

minerals/metals such as graphite, lithium, tantalum, cobalt and vanadium. The geoscience investment ought to

indicate the prospects of availability of such minerals as a precursor to an imminent shift from the traditional

minerals in a medium to long term.

Social/Cultural: The CGS, as a science council, takes cognizance of its social and cultural environment and

ensures that it responds accordingly. The increased participation and advocacy of society on issues relating to,

amongst others, infrastructure development, mineral resources development, energy and the preservation of

the natural environment influence the objectives of the CGS and also have the potential to impact on both the

profile and the value of services provided by the CGS.

Energy Security

As global population continues to rise, the demand for cheap energy will also rise. Today, the global economies

rely mainly on fossil fuels which contribute to the greenhouse emissions which will have an impact on climate

change. Efforts to encourage clean energy have been discussed by the United Nations countries to set goals that

focus on affordable and clean energy. Energy security is vital in every society because it contributes positively to

social and economic development, health, food security and poverty alleviation. South Africa, through its NDP

Vision 2030 aims to have an energy mix (coal, nuclear, renewable energy, oil and gas) plan that promotes

economic growth and development, social equity through expanded access to energy services and

environmental sustainability through efforts to reduce greenhouse emissions and to mitigate the effects of

climate change. Accordingly, South Africa adopted a low-carbon economic growth trajectory that requires

urgent attention to sustainable and cost-effective sources of energy. Such energy sources potential as

geothermal energy are a subject of the programme of the CGS.

Food Security

The NDP Vision 2030, SDGs 2030 and Agenda 2063 identify food security as a key element of both poverty and

inequality and make reference to a number of requisite steps to improve food security by including sustainable

agriculture, expansion of the use of irrigation, security of land tenure, especially for women, and the promotion

of nutrition education. Food security, is however, threatened by various factors such as globalisation,

international trade regimes, climate change, and the poor storage and distribution of food.

The strategy of the CGS further focuses on geoscience programmes that will contribute towards land use,

groundwater and the environment.

Technological: Technological advancement enables the CGS to respond to the expectations and requirements

of its stakeholders in order to ensure service delivery. The innovative utilisation of emerging mapping

technologies for the gathering of data improves the effectiveness and efficiency of the CGS in delivering on its

mandate. The rapid development of technology provides the CGS with major opportunities in the areas of

research, innovation, skills development and service delivery.

Investment in scientific research and technological development is an imperative stimulant for innovation. This

will enable the organisation to be globally competitive and relevant.


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The world is now experiencing the Fourth Industrial Revolution which will drive more inclusive economic growth

through the integration of physical, digital and biological technologies. South Africa has the ability to accurately

collect, interpret and introduce artificial intelligence and machine learning for data capturing in real time.

Environmental: Natural environmental and man-made hazards create a need for geological information and

solutions to mitigate hazards, e.g. infrastructure development on dolomitic ground prone to sinkhole formation,

tsunamis, earthquakes, acid mine drainage, groundwater pollution and global warming. The natural

environmental challenges dictate the programmes and mitigating strategies that the CGS should address.

Changes in climatic conditions, i.e. when conducting fieldwork, will mostly affect the CGS operationally in terms

of the effective and timely delivery of projects and services.

Climate change

Climate change is referred to as a change in average weather conditions or in the time variation of weather

within the context of longer term average conditions and it is caused by various factors such as biotic processes,

variations in solar radiation received by Earth, plate tectonics and volcanic eruptions. Greenhouse gas emissions

from human activities are also believed to drive climate change. One of the sustainable development goals

adopted by a number of United Nations countries includes taking an urgent action to combat climate change

and its impacts. The members of the global nations have formed a coalition of the willing and are in agreement

to work towards limiting global temperature rise to well below 2 degrees Celsius.

The CGS will continue investigating possible storage options for carbon dioxide and identifying other sources of

energy which will mitigate the greenhouse emissions to the atmosphere.

Legislative: The CGS is an organisation mandated by legislation and any changes to the legislative framework

(i.e. Geoscience Act No. 100 of 1993, as amended , Minerals and Mining Policy for South Africa (1998), National

Development Plan (NDP) 2030, Government’s Medium Term Strategic Framework (MTSF), Outcome‐Oriented

Goals of the Department of Mineral Resources (DMR) and the Department of Science and Technology (DST) will

have a direct impact on the strategy and operations of the organisation.

In developing the five-year strategy for the CGS, these factors have been considered to enable the organisation

to take full advantage of opportunities to adjust and navigate within the legislative framework to contribute to

the creation of a prosperous society for all within South Africa.

Table 1 below summarises the major strengths and weaknesses of the CGS as well as the major threats and

opportunities facing the organisation.


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Table 1: CGS SWOT Analysis

Strengths Weaknesses

Government grant funding.

A sound historical heritage and information accumulated over a 100-year period on which to shape the future. - Research competence and strong

knowledge base. - Good understanding of the South African

natural resources environmental landscape. - Empowering legislative mandate.

Geological data and information as major strategic resources.

A limited capacity of highly qualified and skilled scientists.

Inadequate access and utilisation of vast historical geological information.

A very low coverage of high quality, integrated, multidisciplinary maps in South Africa.

Dependency on short term ring-fenced funding for MTEF (Medium Term Expenditure Framework) projects.

Paucity of career growth for internal geo-scientists.

Opportunities Threats

Supportive line function departments (DMR, DST).

Collaboration opportunities with various Government departments such as but not limited to the DWS and DEA, science councils, international entities in geoscientific research as well as universities.

Innovative utilisation of geoscientific information in various emerging fields such as medical geology and geometallurgy, which are new fields that integrate existing geoscientific information to deliver envisaged results.

Utilisation of existing structures across the continent to facilitate regional integration of the geosciences.

Transformation, growth and development of world-class scientists.

Competing for geoscientific skills.

Competing Government priorities for fiscal funding.

Loss of geoscience talent.

Lack of real growth in Government grant funding.

1.1.3 Stakeholder Analysis

An effective stakeholder engagement strategy is a key requirement for the CGS: (1) to fulfil its legislative

mandate and (2) to leverage optimal delivery through collaborative relationships that enhance and nurture the

development of the geosciences.

The CGS is accountable to, and has to align with a wide network of internal and external stakeholders. The

various functions within the organisation, both core and support, are interdependent and have to be aligned

internally and across stakeholder groupings in order for the CGS to operate effectively in the execution of its

mandate. Primary stakeholders include, but are not limited to the Parliament of the Republic of South Africa,

the DMR, the National Treasury, the DST and the South African public. The secondary stakeholders critical for

the CGS include, amongst others, international geological survey organisations, geoscience organisations,

institutions of higher learning and mining companies. The CGS is a state‐owned entity and, by extension, an

instrument of Government that has been established to execute aspects of national foreign policy through

bilateral agreements with other countries. Table 2 summarises the various stakeholder groupings of the CGS. In


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this regard, the Geoscience Diplomacy Programme of the CGS has been developed and implemented to

coordinate strategic partnerships with stakeholders outside South Africa.

Table 2: Stakeholder Analysis

Classification Stakeholder Expectations

Social and Strategic

Political Partners

Government and related

Departments (DMR, DST)

The Public

Political Agencies and Parties

Media

NGOs and Section 9 Institutions

Nature Conservation Institutes

Regional Integration Partners

e.g. the African Union and the

OAGS

Organised Labour

Contribute to economic growth, skills

development, the socio-economic

development of the country and

accelerated implementation of

Government programmes

Public and Private

Institutions

Spatial Planning and

Development Companies,

Science Councils, Minerals

Council South Africa (former

Chamber of Mines) and etc.

Accelerate geological mapping of the

whole country, disseminate geological

information and knowledge on the

wealth of the country, both onshore

and offshore

Financial Resources

Structures

Development Bank

Insurance Companies

Operating and managing an efficient

and sustainable business

Professional Institutions Universities

Research Institutions

Geological Society of South

Africa and similar Institutions

Partnering for the development and

execution of research and other

development programmes

Various opportunities exist to strengthen stakeholder relations and to establish opportunities for networking,

learning, alignment and integration. An initiative that the CGS could explore to strengthen stakeholder relations

is the consideration of bi-annual stakeholder interventions — national, continental or international. These

interventions would provide marketing platforms for the CGS to create visibility and awareness of the CGS, to

disseminate information, and to showcase the current and planned work of the CGS.

The Intergovernmental Relations Framework Act (Act No. 13 of 2005) prescribes principles for the national

government, provincial and local governments, and all organs of state to facilitate coordination in the

implementation of policy and legislation, including, but not limited to the effective provision of services,

monitoring the implementation of policies and legislation, and the realisation of national priorities. The Act

makes provision for the establishment of intergovernmental structures for coordinating actions across

government departments when implementing policies or legislation, for the execution of statutory functions

(taking into account the circumstances, material interests and budgets of other government departments) and

to consult, cooperate and share information to achieve the objectives of the Act.

An opportunity presents itself for the CGS to explore the potential for establishing an intergovernmental forum

comprising key stakeholders (e.g. DMR, DST, DEA, etc.). This forum would have the authority to establish rules

and principles for the endorsement of cross-government departmental projects and programmes, and the

approval of the transfer or allocation of resources (financial or otherwise) across departments in the execution


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of the integrated and multidisciplinary geoscience mapping programmes. The identified projects/programmes

would support the achievement of national objectives, considering the collective mandates and functions of

various Government departments. This would allow the CGS to access and/or share resources with other

Government departments for projects and programmes that have be funded and executed in National interest,

enabling the optimal use of grant funding and other resources across departments, without additional demands

on the fiscus.

1.1.4 Organisational Overview

Overview of the CGS

The CGS conducts integrated and multidisciplinary geoscience mapping and research of both the onshore and

offshore geology of South Africa, as mandated, to:

Catalyse optimal development of mineral, energy and groundwater resources;

Contribute to the assessment and sustainable management of mineral, hydrogeological and geo-

environmental resources (including agricultural development and environmental health);

Support infrastructure development and land use;

Leverage the frontier Blue Economy prospects.

The above is achieved through collaboration between the following skills areas:

Geophysics;

Remote Sensing;

Geological Mapping;

Geochemical Surveys;

Minerals and Energy;

Geohydrology;

Environment;

Seismology;

Marine Geology.

In addition, the CGS has a responsibility to act as a national advisory authority on geohazards and geo-

environmental pollution by leveraging knowledge and expertise gained through the mapping and research

activities discussed above.

Governance

Board

The CGS Board approves the strategies, goals, operating policies and priorities of the organisation and monitors

compliance with the policies and achievements with respect to scientific, administrative and financial objectives.

The Board Members bring independent counsel on strategic decisions. Moreover, Board Members are fully

conversant with their fiduciary duties, as outlined in section 50 of the PFMA (Act No. 1 of 1999).

Four Board Committees underpin the Board:

Finance;

Technical;

Personnel, Remuneration and Transformation;


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Audit and Risk.

Management

Managers are responsible for the following functions in the organisation:

Development of the strategic direction of the CGS;

Development and implementation of annual performance plans;

Management of legal, regulatory, ethical and other compliances;

Management of CGS operations and service delivery;

Management of corporate administration;

Management of corporate performance;

Management of finances;

Management of personnel;

Management of transformation;

Promotion of the CGS.

Organisational Structure

Figure 3 depicts the organisational structure of the CGS that was developed to support the efficient,

effective and robust functioning of the organisation.


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Figure 3: CGS Organisational Structure.


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PART B: STRATEGIC OBJECTIVES

STRATEGIC CONTEXT

The strategy map illustrated in the diagram below articulates the strategy of the CGS, aligned with the BSC

methodology. The existence of the CGS is premised on its vision of contributing to a prosperous and transformed

society enabled by geoscience solutions.

For the execution of its mandate and to sustain its operations, the CGS is funded by Government grants. The

financial resource base is supplemented by commercial projects that generate revenue, enhanced by funding

from the exploitation of intellectual property through collaborative partnerships. In addition, a sound financial

management framework with supporting management services, processes and procedures are required to

achieve the goal of financial growth through integrated geoscience service delivery, partnerships and innovation

in making a sustainable contribution to the NDP imperatives.

The CGS is required to invest in the recruitment, development and retention of human resources and specialist

skills to create the capacity for the execution of its mandate. The Learning and Growth focus is moulded around

the empowerment of the CGS workforce and to develop a pool of appropriately skilled, engaged, motivated and

capacitated human resources to better support and enable the implementation of the Geoscience Technical

Programme (GTP) and the execution of the CGS mandate. This would enhance the CGS status and the realisation

of its goal of becoming an employer of choice, attracting, recruiting and retaining highly skilled personnel in the

Geoscience industry, enabled by improved human capital and institutional knowledge management strategies.

From an effective and efficient systems perspective, the goal of the CGS is to transform into a geoscience

institute that is capable, effective and efficient, compliant and responsive, through an integrated service delivery

model. This will be enabled by the investment in and rollout of ICT (Information and Communications

Technology) solutions, supporting digital infrastructure, compliant policies, procedures and business processes

that will ensure good corporate governance practices and a sound control environment.

The strategy of the CGS largely revolves around meeting stakeholder requirements — as they relate to its core

mandate — by delivering special geoscience information to develop mineral and upstream petroleum resources,

support infrastructure development programmes, enable agricultural development groundwater exploration

and managing stakeholder relations with strategically aligned institutions and partners, in compliance with

global standards in the implementation of geoscience policies and governance. The implementation of the

multidisciplinary mapping programme is the core driver for ensuring the delivery of the CGS mandate. In the

effective execution of its mandate, the CGS will contribute to the national objectives of enhancing living

conditions and a safe environment and create an enabling environment in support of national imperatives – this

will ultimately translate to the CGS achieving its vision, validating its existence and cementing its footprint in the

geoscience space.

CGS Annual Performance Plan 2019/2020_Final

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Figure 4: CGS Strategy Articulation Map.

P3: Process Objective 3

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Vision: A prosperous and transformed society enabled by geoscience solutionsE

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CGS financial growth through integrated geoscience services delivery,

partnerships and innovation in providing sustainable contribution to

the NDP imperatives

To ensure effective and efficient delivery of

financial management

services

To secure increased grant funding to sustain

the CGS operations in support of the mandate

and national

imperatives

To secure funding from the exploitation of intellectual

property, collaborative

activities and partnerships

To attract and retain highly skilled personnel

in the Geoscience

industry

To acquire, develop and implement innovative ICT solutions & state of the art

infrastructure to support the

expanded mapping programme

An enabling environment in support

of national imperatives

To ensure delivery of the mandate through the

expanded multi-disciplinary mapping programme

An employer of choice, attracting, recruiting and retaining highly skilled personnel in the

Geoscience industry through improved human capital and institutional knowledge

management strategies

A geoscience institution that is capable, effective, efficient, compliant and responsive, through an integrated

service-delivery model

Develop capacity through training, mentorship, skills

transfer and succession

planning

To build capacity in respect of

geoscientific, administrative and managerial/leadership

skills while also developing innovative products, systems

and services

To ensure the workforce is empowered, transformed,

motivated, and capacitated to support the expandedmappng programme

To create and sustain an organisational culture and

environment that attracts and promotes excellence

To promote and invest in human resource transformation and

diversity

To ensure good corporate governance and sound control

environment

To develop and implement effective & compliant policies,procedures and business processes in support of the

CGS integrated service delivery model

To ensure compliance with globall standards,

international geoscience policy and governance

To deliver spatial geoscience information and services that

attract local and international

investment to develop mineral and upstream petroleum resources

To provide Geoscience information and services input

to infrastructure development in support of South Africa’s

economic development of mineral, upstream petroleum (such as oil and gas) and water

resources

To provide geoscientific information that enables

agricultural development and groundwater exploration

To improve stakeholder relations through

collaborations with strategically aligned

institutions, private sector and the general public

Enhanced living conditions and a safe

environment


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STRATEGIC OBJECTIVES AND ANNUAL PERFORMANCE TARGETS FOR MTEF CYCLE (FY 2019/2020 – FY 2021/2022)

1.2 Objective (Programme) 1: Financial sustainability (Financial Perspective)

Goal CGS financial growth through integrated geoscience services delivery, partnerships and innovation

Table 3: Financial Perspective – Strategic Objectives, Initiatives and KPIs

Strategic Objective Strategic Initiatives Measures (KPI) Estimated

performance

Medium-term Targets

FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022

1 Financial

sustainability

To ensure effective and efficient

delivery of financial management

services

Percentage of overhead costs to

total costs (non-cumulative)

N/A ≤55% ≤55% ≤55%

Percentage of personnel costs to

total costs (non-cumulative)

N/A ≤60% ≤60% ≤60%

To secure funding from the

exploitation of collaborative activities

and partnerships

Revenue from collaborative

activities/partnerships (non-

cumulative)

R24.2m R26.6m R29.3m R32.2m

To secure increased grant funding to

sustain the CGS operations in support

of the mandate and national

imperatives

Grant revenue (non-cumulative) R386.3m R414.1m R435.7m R251.4m

N/A Measures were not included for the FY 2018/2019 APP. The CGS reintroduced the measure in FY 2019/20.


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1.3 Objective (Programme) 2: Organisational Effectiveness and Efficiency (Organisational Effectiveness and Efficiency Perspective)

Goal A geoscience institution that is capable, effective, efficient, compliant and responsive, through an integrated service-delivery model

Table 4: Efficiency and Effectiveness Perspective – Strategic Initiatives and KPIs


performance

Medium-term Targets

FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022

2 Organisational effectiveness and efficiency

To develop and implement effective and compliant policies, procedures and business processes in support of the CGS integrated service delivery model

Percentage of total Procurement spend on goods and services from Small Micro and Medium Enterprises (non-cumulative)

30% ≥30% ≥30% ≥30%

Adhere to best practice to achieve sustainable governance

Number of audit qualifications (non-cumulative)

0 0 0 0


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1.4 Objective (Programme 3): An Empowered, Transformed, Motivated and Capacitated Workforce (Learning and Growth Perspective)

Goal An employer of choice, attracting, recruiting and retaining highly skilled personnel in the Geoscience industry through improved human

capital and institutional knowledge management strategies

Table 5: Perspective — Learning and Growth Perspective — Strategic Objectives, Initiatives and KPIs


performance

Medium-term Targets

FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022

3 An empowered,

transformed, motivated

and capacitated

workforce

To attract and retain highly

skilled scientific personnel in

the Geoscience industry

Percentage of scientific staff with

Masters or Doctoral degrees (non-

cumulative)

N/A* ≥35% ≥35% ≥35%

Staff turnover rate (non-cumulative) ≤5% ≤5% ≤5% ≤5%

To build capacity in respect of

geoscientific, administrative

and managerial/leadership

skills while also developing

innovative products, systems

and services

Percentage of training expenditure

to leviable amount of payroll (non-

cumulative)

≥2% ≥2% ≥2% ≥2%

To create and sustain an

organisational culture and

environment that attracts and

promotes excellence

Percentage of satisfied staff (non-

cumulative)

≥75% ≥75% ≥75% ≥75%

To promote and invest in

human resources

transformation and diversity

Percentage of staff living with

disability (non-cumulative)

≥1.25% ≥1.5% ≥1.5% ≥1.5%

EE statistics, Male–Female ratio

(non-cumulative)

53:47 ≤50:≥50 ≤50:≥50 ≤50:≥50

N/A- Not Applicable, *Measures were not included for the FY 2018/2019 APP. The CGS reintroduced the measure in FY 2019/20.


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1.5 Objective (Programme) 4. Delivery of the mandate (Stakeholder/Market Perspective)

Goal An enabling environment in support of national imperatives and enhancing living conditions and creating a safe environment

Table 6: Stakeholder/Market Perspective – Strategic Objectives, Initiatives and KPIs


performance

Medium-term Targets

FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022

4 Delivery of the

mandate

Execute the integrated and

multidisciplinary geoscience

mapping programme

Geoscience for mineral and energy

resources: Number of geoscience

products (non-cumulative)

36 50 60 30

Geoscience for infrastructure and land

use: Number of geoscience products

(non-cumulative)

3 5 5 2

Geoscience for health, groundwater and

the environment: Number of geoscience

products (non-cumulative)

N/A 6 8 4

Geoscience innovation: Number of

geoscience products (non-cumulative)

3 3 3 1

Geoscience diplomacy: Number of

geoscience products (non-cumulative)

3 3 3 2

N/A – Not Applicable


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1.6 Objective (Programme) 5. Advisory, Stakeholder Engagement and Knowledge (Stakeholder/Market Perspective)

Goal An enabling environment in support of national imperatives and enhancing living conditions and creating a safe environment

Table 7: Stakeholder/Market Perspective – Strategic Objectives, Initiatives and KPIs


performance

Medium-term Targets

FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022

5 Advisory, stakeholder

engagement and

knowledge

To improve stakeholder

relations through

collaborations with

strategically aligned

institutions, the private

sector and the general public

Number of articles published

on media platforms (non-

cumulative)

10 16 16 16

Stakeholder satisfaction level

(non-cumulative)

≥70% ≥70% ≥70% ≥70%

Number of peer-reviewed

articles published (non-

cumulative)

20 22 24 16

Number of CGS publications

(non-cumulative)

105

10 11 9

Number of conference

proceedings published (non-

cumulative)

41 80 25

Stakeholder satisfaction level expressed as a percentage: target for 2018/2019 was incongruently set against a strategic re-orientation programme of the CGS. Accordingly, the target was normalised in-line

with the CGS strategic objectives.

Publications produced: Peer reviewed articles – This key performance indicator target for 2018/2019 is 20, which is lower than the actual achievements for the FY2017/2018. This reduction from 47 peer-

reviewed articles (FY 2017/2018) was planned based on the strategic re-orientation and consolidation. It is anticipated that the publication of peer-reviewed articles will increase in the next five years when

the geoscience technical programme is fully executed.


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QUARTERLY PERFORMANCE TARGTES FOR FY 2019/2020

1.7 Programme 1: Financial Perspective

Table 8: Financial Perspective - Quarterly Targets FY 2019/2020

Strategic Objective Measures (KPI) Reporting Period Annual Target Quarterly Targets

FY 2019/2020 1st 2nd 3rd 4th

1 Financial

sustainability

Percentage of overhead costs

to total costs (non-

cumulative)

Quarterly ≤55% ≤55% ≤55% ≤55% ≤55%

Percentage of personnel

costs to total costs (non-

cumulative)

Quarterly ≤60% ≤60% ≤60% ≤60% ≤60%

Revenue from collaborative

activities/partnerships

(cumulative)

Quarterly R26.6m R5m R10m R15m R26.6m

Grant revenue (cumulative) Quarterly R414.1m R184.8m R316.5m R365.3m R414.1m


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1.8 Programme 2: Systems Perspective

Table 9: Systems Perspective - Quarterly Targets FY 2019/2020


FY 2019/2020 1st 2nd 3rd 4th

2 Organisational effectiveness and efficiency

Percentage of total Procurement spend on goods and services from Small Micro and Medium Enterprises (non-cumulative)

Quarterly ≥30% ≥30% ≥30% ≥30% ≥30%

Number of audit qualifications

Annually 0 - - - 0


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1.9 Programme 3: Learning and Growth Perspective

Table 10: Learning and Growth Perspective - Quarterly Targets FY 2019/2020


FY 2019/2020 1st 2nd 3rd 4th

3 An empowered,

transformed,

motivated and

capacitated

workforce

Percentage of scientific staff with

Masters or Doctoral degrees (non-

cumulative)

Annually ≥35% - - - ≥35%

Staff turnover rate (non-

cumulative)

Quarterly ≤5% ≤5% ≤5% ≤5% ≤5%

Percentage of training expenditure

to leviable amount of payroll (non-

cumulative)

Annually ≥2% - - - ≥2%

Percentage of satisfied staff (non-

cumulative)

Annually ≥75% - - - ≥75%

Percentage of staff living with

disability (non-cumulative)

Annually ≥1.5% - - - ≥1.5%

EE statistics, Male–Female ratio

(non-cumulative)

Annually ≤50:≥50 - - - ≤50:≥50


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1.10 Programme 4: Stakeholder/Market Perspective

Table 11: Stakeholder/Market Perspective - Quarterly Targets FY 2019/2020


FY 2019/2020 1st 2nd 3rd 4th

4 Delivery of the

mandate

Geoscience for mineral and

energy resources: Number of

geoscience products

(cumulative)

Quarterly 50 5 20 40 50

Geoscience for infrastructure

and land use: Number of

geoscience

products(cumulative)

Quarterly 5 1 2 4 5

Geoscience for health,

groundwater and the

environment: Number of

geoscience products

(cumulative)

Quarterly 6 1 3 4 6

Geoscience innovation: Number

of geoscience products

(cumulative)

Quarterly 3 0 1 2 3

Geoscience diplomacy: Number

of geoscience products

(cumulative)

Quarterly 3 0 1 2 3


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FY 2019/2020 1st 2nd 3rd 4th

5 Advisory, stakeholder

engagement and

knowledge

Number of articles published on

media platforms (cumulative)

Quarterly 16 4 8 12 16

Stakeholder satisfaction level

(non-cumulative)

Annually ≥70% - - - ≥70%

Number of peer-reviewed

articles published (cumulative)


Number of CGS publications

(cumulative)


Number of conference

proceedings

published(cumulative)

Quarterly 41 0 10 30 41


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OVERVIEW OF THE MTEF BUDGET AND MTEF ESTIMATES

The financial resource requirements over the five-year period are summarised below. These projections consider

the scope of work of the CGS, accounting for improved supply chain management in support of project

execution, as well as the optimisation of underutilised movable and immovable assets.

1.11 Resource Requirements

1.11.1 Income Statement

Table 12: Income Statement

INCOME (RAND) FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022

x 1 000 x 1 000 x 1 000 x 1 000

Government grant 405,983 414,062 435,734 251,402

Deferred income 114,808

Sales and contracts 24,200 26,620 29,282 32,210

Sundry income 3,694 3,878 4,072 4,276

TOTAL INCOME (RAND) 548,685 444,560 469,088 287,888

EXPENDITURE (RAND) FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022

x 1 000 x 1 000 x 1 000 x 1 000

Personnel costs 244,919 309,028

330,721

227,487

Bursaries 3,367 3,704 4,074 4,481

Commercial project costs 10,890 11,979 13,177 14,495

Overheads and operating costs 124,657 104,349

105,616

25,925

SUBTOTAL 383,833 429,060

453,588

272,388

Surplus before capital expenditure 164,852 15,500 15,500 15,500

Application of surpluses:

Capital expenditure

Vehicles and aircrafts 3,500 3,500 3,500 3,500

Equipment 12,000 12,000 12,000 12,000

Deferred: Building and Laboratory Infrastructure 59,352 - - -

Digital information system, buildings, equipment and facilities

90,000 - - -

SUBTOTAL 164,852 15,500 15,500 15,500

TOTAL EXPENDITURE (RAND) 548,685 444,560

469,088

287,888

Surplus (Loss) - - - -

The CGS has two sources of funding, namely the Government grant and collaborative/contract

revenue. These revenues determine the scope of the Annual Technical Programme of the CGS.

Due to the lack of certainty in the contract revenue stream, the CGS implements its programmes for

each year with caution in order to avoid over-expenditure or losses. The increase in the Government

grant in FY 2019/2020 and FY 2020/2021 is due to additional allocations of R188,0m and R198,3m

respectively for analytical and research work for the Geoscience Laboratory.


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Revenue from Government Grant

The Government grant consists of the baseline grant, additional funding for MTEF projects. There has

been no real growth in the baseline grant over the MTEF period. The marginal increase in the grant is

meant to address inflation. The average growth rate is 6% year on year. The Government grant for the

FY 2018/2019 financial year includes deferred income of R114,8m million from the MTEF projects. The

baseline grant is R199,4m, R198,5m, R208,5m and R220,8m for the financial years 2018/2019,

2019/2020, 2020/2021 and 2021/2022 respectively.

1.11.2 Revenue Analysis

Table 13: Analysis of Government Grant Allocation

Revenue from Collaborative/Partnership Activities

Revenue from collaborative activities is budgeted at R24,2m for FY 2018/2019 and is expected to increase by

10% year on year over the MTEF period. This is based on current collaborative contracted work. The absence of

further revenue income in this category of work is due to the organisational refocus on the core mandate of the

CGS.

Personnel Costs

The personnel costs budget includes salaries for existing and additional critical positions, fringe benefits, such as

death and disability insurance, post-retirement medical aid insurance as well as recruitment-related costs.

Annual salary increases are negotiated at the bargaining forum and are approved by the CGS Board. Personnel

cost is budgeted at R244,9m for FY 2018/2019 and an 8% increase year on year over the MTEF period to cater

for additional staff required to unlock the MTEF projects. Due to the additional allocations for FY 2019/2020 and

FY 2020/2021, the personnel costs have been budgeted at R309,0m and R330,7m respectively. From the FY

2021/22 the personnel budget decreases significantly to R227,5m due to the end of the ECSP allocations for analytical and research work for the Geoscience Laboratory. A recent benchmarking exercise was conducted

and depicted a picture that CGS salary scales are low compared with those of industry. Both financial and non-

Item FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022

x 1 000 x 1 000 x 1 000 x 1 000

Government grant 520,8m 414,1m 435,8m 251,4m

Baseline allocation 199,4m 198,5m 208,5m 220,8m

MTEF projects (ring fenced) 116,6m 27,6m 29,0m 30,6m

Deferred income 114,8m

Economic Competitiveness and Support Package

90m 0 0 0

Analytical and research work for the Geoscience Laboratory

0 188m 198,3m 0

Commercial revenue 24,2m 26,6m 29,2m 32,2m

Sundry income 3,7m 3,9m 4,1m 4,3m

TOTAL REVENUE (RAND) 548,7m 444,6m 469,1m 287,9m


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financial means necessary to retain staff should be identified, formalised, implemented and monitored for

impact.

Bursaries

The bursary budget is essential for developing capacity and to expedite the training of individuals. The

commercial environment in which the CGS competes for international and national tenders is extremely

competitive and the only way for the CGS to be able to compete is by upgrading the skills of its staff members.

The bursary scheme has an added advantage as it also serves as a feeder pipeline for the transformation of the

staff complement. In this regard, an amount of R3,4m has been budgeted for FY 2018/2019, with a 10% increase

year on year over the MTEF period.

Cost of Collaborative/Partnership Projects

The CGS invests in the commercial environment to generate the budgeted revenues over the MTEF period. These

investments are in the form of direct materials and services required to deliver the agreed commercial outputs.

Commercial project expenditure is budgeted at R10,9m for FY 2018/2019, which is 45% of the projected revenue

for each year over the MTEF period.

Overheads and Operating Costs

This budget is for the scientific programme, i.e. Annual Technical Programme expenditure; the operating costs

of the mandatory functions such as the geoscience library, core library, laboratory, maintenance of buildings

and infrastructure and administration requirements for Finance, Supply Chain, Corporate Services and

Integrated Communication Technology (ITC). The budget increases in proportion to the total Government grant.

Overhead and operating costs are budgeted at R124,7m for FY 2018/2019 which includes deferred income of

R55,5m. A significant decrease in the budget in FY 2021/2022 is due the additional allocations for the analytical

and research work for the Geoscience Laboratory which are currently allocated for FY 2019/2020 and FY

2020/2021 which comes to an end in FY 2021/2022.

Scientific and Technical Equipment

The rapidly aging research infrastructure of the CGS is of great concern to the organisation. Over the past few

years, attention has been given to the replacement of some equipment. However, this is not sufficient to sustain

services and skills development in the CGS.

An amount of R15,5m has been budgeted for the replacement of vehicles, equipment and aircraft repairs for FY

2018/2019. Funding has been allocated to the digital information system, buildings, equipment and facilities

from National Treasury to the amount of R90,0m in FY 2018/2019. A capital renewal plan is developed annually

to address the infrastructure requirements.

1.12 Expenditure Estimates

Table 14: Programme Expenditure per Strategic Objective

CGS Objectives FY 2018/2019 FY 2019/2020 FY 2020/2021 FY 2021/2022

Objective (Programme) 1: Delivery of Mandate 363,237,826 294,305,490 310,543,400 190,586,240

Objective (Programme) 2: Advisory, Stakeholder Engagement and Knowledge Management

14,693,315 11,904,937 12,561,776 7,709,395

Objective (Programme) 3: An empowered, transformed, motivated and capacitated workforce

13,684,114 11,087,253 11,698,978 7,179,879

Objective (Programme) 4: Organisational effectiveness and efficiency 95,956,662 77,746,783 82,036,357 50,347,233

Objective (Programme) 5: Financial Sustainability 61,113,083 49,515,537 52,247,490 32,065,253

Total Budget 548,685,000 444,560,000 469,088,000 287,888,000


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1.13 Materiality Framework

Table 15: Materiality Framework

Nature of Business Circumstances giving rise to

Need for Disclosure in Terms of

Materiality and Significance

Material Threshold Value

for Disclosure and Reporting

Purposes

Process to be initiated if

Threshold is reached

Geophysics and

Research

Generally,

research-related

entities may set a

materiality figure

higher than for

non-research-

related entities, as

research related

losses can be

expected to be

higher and more

difficult to

anticipate and

manage

within the normal

accounting

practices,

Geoscience Act and

operating

procedures.

Disclosure in this

area is unlikely to

materialise

Equipment and Technology

Laboratories and Geophysics are

the two main areas giving rise to

the need for disclosure in terms

of materiality and significance

Laboratories

Geophysics

Consideration in terms of

expenditure was given as

follows: (as included within the

budgeting process)

Irregular

Expenditure consisting

of spending outside of

approved budget

Fruitless and

Wasteful Expenditure.

Equipment not suited

or necessary for

purpose

Calculating the property and

equipment threshold value at

2% of the value as indicated in

the annual financial statements

(R259,700,000)

R5,2m

R5,2m

The usual accounting practices

and the Geoscience Act will

generally cover replacement or

loss of equipment in the normal

operational process and should

not require disclosure

Management to submit a

report with all relevant

details and values concerned

to Executive for comment

and disclosure to Treasury

where required

Process:

Information to

be provided

regarding event;

Investigate

where required:

Internal Audit and

Finance;

Determine

whether loss is due

to contravention of

the Act or disregard

of Geoscience Act;

Determine

whether due to lack

of due care and

diligence, gross

negligence or

criminal activity;

and

Responsibility

The Executive must direct a

request for ruling or approval

from Treasury or the relevant

Executive Authority

The business needs

to ensure that all

financial

transactions fall

within the

approved budget

and are conducted

within the normal

accounting

Financial

Operations and Capex are

considered as the main areas

giving rise to the need for

disclosure in terms of

materiality and significance:






where required

Process:


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practices and

Geoscience Act

Operating Expenditure

(Existing Budgeted Projects)

Any irregular spending outside

of approved budget

New Projects

Unforeseen additional

expenditure due to poor project

planning or early termination or

cancellation of projects

Capex: -

Total Assets

R1,2m

Operating threshold value

calculated at 1% of budget value

(R124,657,000)

Expressed as 2% of the Project

Value

This threshold will vary

according to the project value.

E.g. R40m

equates to R800,000,

R10m equates to

R200,000

R11,3m

Total asset threshold value

calculated at 2% of the value as

indicated in the annual financial

statements

(R565,655,000)

Information to

be provided regarding

event;

Investigate

where required: Internal

Audit and Finance;

Determine

whether loss is due to

contravention of the Act

or disregard of

Geoscience Act;

Determine

whether due to lack of

due care and diligence,

gross negligence or

criminal activity; and

Responsibility




Executive Authority

In terms of the

PFMA Section 54,

information will be

submitted by the

accounting

authorities in

respect of any

significant change

in the nature or

extent of its

interest in a

significant business

activity; and

A significant change

in the nature or

extent of its

interest in a

significant

partnership, trust,

unincorporated

joint venture or

similar

arrangement

Where the business has joint

ventures or similar

arrangements, these are strictly

governed by the Geoscience Act

in addition to the PFMA

Concluding any transaction in

terms of Section 54 without

approval from the Executive

Authority

Should such an event materialise

it would need to be investigated

and only then would the

potential loss be determined

No threshold can be anticipated

Any transgression is to be

investigated and reported once

all relevant details have been

compiled






where required

Process:

Information to

be provided regarding

event;

Investigate

where required: Internal

Audit and Finance;

Determine

whether loss is due to

contravention of the Act

or disregard of

Geoscience Act;

Determine

whether due to lack of

due care and diligence,


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gross negligence or

criminal activity; and

Responsibility




Executive Authority


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PART C: EXECUTION PLAN

INTEGRATED AND MULTIDISCIPLINARY GEOSCIENCE MAPPING PROGRAMME

Challenges related to the geoscience and mining sector (Section 1.1) culminated in the introduction and

implementation of the Integrated and Multidisciplinary Geoscience Mapping Programme (i.e. GTP). Through this

programme, the CGS seeks to provide detailed (high resolution) integrated mapping and various other surveys

to generate high-intensity geoscience data. The CGS aims to deliver detailed high-quality geoscience data on a

digital platform for South Africa and its marine and coastal territories to attain its developmental imperatives,

which include:

● Mineral and upstream petroleum exploration and mining for economic investment

● Improved energy security, including facilitation of clean energy sources

● Environmental health promotion

● Groundwater assessment and exploration for drought-stricken areas

● Geohazard mapping for cost-effective and efficient infrastructure

● Development and ground motion assessment

● Carbon capture and sequestration for global warming reduction

● Geoscience for land use, inclusive of facilitation of prospects for agriculture for food security (identification

of arable land)

● Understanding mechanisms of climate change in the palaeo-record

● Planning of coastal and offshore infrastructure

● Capacity building.

Other objectives of the Integrated and Multidisciplinary Geoscience Mapping Programme include the provision

of 1:50 000-scale multi-disciplinary mapping, thematic and systematic mapping including onshore and offshore

mapping, address current National Imperatives in South Africa and align with SONA resolutions as they relate to

Infrastructure, Youth Development, SOEs, Agriculture, Mining, Procurement, etc.

The three to five year matrix illustrated in the diagram below is derived from the GTP (Geoscience Technical

Programme) model and has been created to address five core technical programmes.


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Figure 5: Matrix of the Integrated and Multidisciplinary Geoscience Mapping Programme.

The five programmes identified respond to the national development imperatives for geosciences, and are as

follows:

● Economic growth (geosciences for mineral and energy resources, infrastructure and land use)

● Environmental health (geosciences for infrastructure and land use, health, groundwater and the

environment)

● Innovation (geosciences collaboration with other institutions)

● International relations (geoscience diplomacy).

A number of three to five year programme areas have been targeted and execution of the programmes in

these areas commenced in 2018. The following are some of the priority programme areas targeted:

● Griqualand West in the Northern Cape Province

● Various locations around South Africa that have been chosen as priority areas that may support the

development of minerals and energy, and which have been identified through soil geochemical

surveys and core drilling programmes (e.g. Springbok Flats Coalfield).

● Marine geoscience in the western and eastern coast of South Africa

INTEGRATED AND MULTIDISCIPLINARY GEOSCIENCE MAPPING PROGRAMME


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Figure 6: Integrated and Multidisciplinary Geoscience Mapping Programme including detailed coastal and marine geoscience programme study areas for FY 2018/2019 – FY 2020/2021.


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1.14 GEOSCIENCE TECHNICAL PROGRAMME AND BUDGETS FOR THE FY 2019/2020

Table 16: Geoscience technical programme and budgets for FY 2019/2020

THEME TOTAL COST

Geoscience for Minerals and Energy R49 307 716.25

Geoscience for Infrastructure and land use R25 262 634.00

Geoscience for Health, Water and Environment R22 200 000.00

Geoscience Innovation R6 938 722.00

TOTAL R103 709 072.25

The GTP is also composed of the Mine Water Management project (MTEF), several commercial projects in Namibia, Malawi and South Africa. The commercial projects in South Africa are executed on behalf of other departments and municipalities).


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STRATEGIC RISKS

The CGS is required to manage and respond to a set of strategic risks that may have an impact on the execution of its strategic plan. These, together with the response of

the CGS to the risks are summarised in the table below. In addition, the initiatives proposed to achieve the CGS strategic objectives will further provide a level of mitigation

of the stated risks.

Table 17: Strategic Risks

Strategic Objectives Strategic Risks CGS Response

Financial sustainability ● Reduction in government grant ● Inadequate integrated ICT Systems

● Development of programmatic approach to manage geoscience technical programmes

● Implementation of the IP Management Office to increase revenue generating potential

● Aggressive business development including venturing into Africa and elsewhere where the political environment coincided with the parameters of the lawful Diplomacy Programme of CGS

● Increasing the order book by developing product management protocols, increasing quality proposals, and optimally delivering of products

An empowered, transformed, motivated and capacitated workforce

● Inadequate resources impacting on service delivery ● Inadequate talent management

● Organisation-wide alignment of the skills matrix for staff ● Succession planning, talent management and employee training and

development programmes

Delivery of the mandate and Advisory, stakeholder engagement and knowledge

● Inability to meet stakeholder needs ● Lack of applied solution driven products ● Inadequate access and management of geoscience

data ● Unconducive working conditions ● CGS brand is not adequately known

● Stakeholder relationships management programmes ● GTP model in place and targeted priority programme areas identified ● Implementation of collaborative agreements in geoscientific research

Organisational effectiveness and efficiency

● Inadequate world-class facility to accommodate and retain world-class talent

● Lack of an integrated service-delivery model ● Lack of automated and integrated SCM system ● Non-compliance with regulatory framework (i.e.

POPI, PAIA, National Archives Act)

● Five-Year IT Master Plan, Integrated Service Delivery Model for Accessibility, Storage, Repository and Dissemination Platform, Record Management System, and the integrated ICT System

● Development of a Universal Compliance Legislation Framework, Policies and Guidelines

cgs annual performance plan 2019/2020

Documents