annual report 2018 | 2019 - national government...annual report 2018 | 2019 v 31 august 2019 mr...

AnnuAl RepoRt

Years Of Keeping You Safe In The Sky1998 – 2018

2018 | 2019

ANNUALREPORT2018 2019

PART AGeneral Information

1 General Information 12 List of Abbreviations and Acronyms 23 List of Diagrams, Figures, Graphs and Tables 34 Foreword by the Chairperson of the Board 4 5 Overview by the Director of Civil Aviation 66 Statement of Responsibility and Confirmation of Accuracy of the Annual Report 107 Strategic Overview 118 Legislative and other Mandates 129 High-Level Organisational Structure 13 10 Board Composition 1411 Executive Management Committee 15

PART BPerformance Information

1 Statement of Responsibility for Performance Information for the Year Ended 31 March 2019 172 Auditor’s Report: Predetermined Objectives 183 Situational and Performance Analysis 194 Strategic Outcome-Oriented Goals 255 Performance Information 266 Review of SACAA Programmes and Activities 38 7 Strategy to Overcome Areas of Underperformance 408 SACAA Revenue Collection 50

PART CGovernance

1 Introduction 522 Accounting Authority 573 Audit and Risk Committtee 674 Risk Management 705 Internal Control Unit 726 Internal Audit 727 Combined Assurance Model 738 Fraud and Corruption 759 Minimising Conflict of Interest 7510 Code of Conduct 7611 Health, Safety and Environmental Matters 7612 Company Secretary 7713 Corporate Social Responsibility 77

PART DHuman Resources

1 Overview of Human Resources Matters 852 Human Resource Oversight Statistics 87

PART EAnnual Financial Statements

1 Report of the Auditor-General to Parliament on the South African Civil Aviation Authority 982 Accounting Authority’s Responsibilities and Approval 1023 Audit and Risk Committee Report 1044 Accounting Authority’s Report 1085 Company Secretary’s Certification 1126 Statement of Financial Position 1137 Statement of Financial Performance 1148 Statement of Changes in Net Assets 1159 Cash Flow Statement 11610 Statement of Comparison of Budget and Actual Amounts 11711 Notes to the Consolidated Annual Financial Statements 119

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vAnnual Report 2018 | 2019

31 August 2019

Mr Fikile April Mbalula, MPMinister of Transport Private Bag X193 PRETORIA0001

Honourable Minister Mbalula,

It is a privilege and honour to hereby submit the 2018/2019 Annual Report of the South African Civil Aviation Authority (SACAA). This report gives a comprehensive account of the SACAA’s performance and efforts to fulfil its mandate for the period 01 April 2018 to 31 March 2019.

Yours sincerely,

_________________Mr Ernest KhosaChairperson: SACAA Board

General Information

PARt


PART A - General Information

1Annual Report 2018 | 2019

REGISTERED NAME: South African Civil Aviation Authority

PHYSICAL ADDRESS: Ikhaya Lokundiza 1 16 Treur Close Waterfall Park Bekker Street Midrand, Johannesburg

POSTAL ADDRESS: Private Bag X73 Halfway House 1685

TELEPHONE NUMBER: +27 11 545 1000

FAX NUMBER: +27 11 545 1455

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.caa.co.za

EXTERNAL AUDITORS: Auditor-General of South Africa

BANKERS: Standard Bank of South Africa

COMPANY SECRETARY: Ms Nivashnee Naraindath (BA, LLB, LLM, Admitted Attorney)

ISBN NUMBER: 978-0-621-47376-6

General Information



2 Annual Report 2018 | 2019

Abbreviations and acronymsACSA Airports Company South AfricaADO Approved Design OrganisationAEP Aviation Environmental ProtectionAFCAC African Civil Aviation CommissionAGM Annual General MeetingAGSA Auditor-General of South AfricaAIID Accident and Incident Investigations DivisionAIP Aeronautical Information PublicationAMO Aircraft Maintenance OrganisationAMORG Approved Manufacturing OrganisationAOC Air Operator CertificateARC Audit and Risk CommitteeASC Aviation Security CommitteeASEC Aviation Safety and Environment CommitteeASO Aviation Safety Operations ATNS Air Traffic and Navigation ServicesATO Aviation Training OrganisationAvMed Aviation MedicineAvSec Aviation SecurityB-BBEE Broad-Based Black Economic EmpowermentCAE Chief Audit ExecutiveCAP Corrective Action PlanCAPSCA Collaborative Arrangement for the Prevention and Management of Public Health Events in Civil AviationCAR Civil Aviation RegulationCARCom Civil Aviation Regulations CommitteeCASSOA Civil Aviation Safety and Security Oversight AgencyCATS Civil Aviation Technical StandardsC-FARP Cross-Functional Accident Reduction PlanCORSIA Carbon Offsetting and Reduction Scheme for International Aviation DCA Director of Civil AviationDoA Delegation of AuthorityDoT Department of TransportEBS Enterprise Business SystemEI Effective ImplementationESAF Eastern and Southern AfricaESWACAA Eswatini Civil Aviation AuthorityExCo Executive Management CommitteeFAA Federal Aviation AdministrationFIU Flight Inspection UnitFSTD Flight Simulation Training Devices

GA General AviationHR Human ResourcesHRC Human Resources CommitteeIATA International Air Transport AssociationICAD International Civil Aviation DayICT Information and Communication TechnologyISO International Standard OrganisationIT Information TechnologyMOSP Master Oversight and Surveillance Plan NATS National Aviation Transformation StrategyNDP National Development PlanNTCA Non-Type-Certified AircraftNUMSA National Union of Metal Workers of South AfricaOHS Occupational Health and SafetyPANS-OPS Procedure for Air Navigation Services - Aircraft OperationsPESTLE Political, Economic, Social, Technological, Legal, and EnvironmentalPFMA Public Finance Management Act, 1999 (Act No. 1 of 1999)PMS Performance Management SystemPOC Procurement Oversight CommitteePPL Private Pilot’s LicencePSC Passenger Safety ChargeRAASA Recreational Aviation Administration of South AfricaROC RPAS Operator’s CertificateRPAS Remotely Piloted Aircraft Systems SAA South African AirwaysSACAA South African Civil Aviation AuthoritySADC Southern African Development CommunitySARPs Standards and Recommended PracticesSASO SADC Aviation Safety OrganisationSCM Supply Chain ManagementSMS Safety Management SystemSTE Short-Term ExpertSWOT Strengths, Weaknesses, Opportunities, and Threats TCA Type Certified AircraftToR Terms of ReferenceTR Treasury RegulationsUSOAP Universal Safety Oversight Audit ProgrammeUSAP Universal Security Audit Programme




List of Diagrams, Graphs, Figures and TablesDiagrams/Figures/Graphs

Tables

Diagram 01: ICAO Safety and Security Critical Elements page 12Graph 01: Passenger Safety Charge figures between 2014/2015 – 2018/2019 page 20Figure 01: The number of South African female pilots with an ATPL for fixed-wing aeroplane page 21Figure 02: The number of South African male pilots with an ATPL for fixed-wing aeroplane page 21Graph 02: Organisational performance comparison over a seven-year period page 36Graph 03: Number of aircraft accidents: a three-year comparison page 39Graph 04: Number of fatal aircraft accidents: a three-year comparison page 39Graph 05: A three-year comparison of fatalities page 40Graph 06: A three-year comparison of serious incidents page 40Diagram 02: Schools awareness programme page 81-83Figure 03: Skills development cost page 89Diagram 03: Reasons for staff exits page 92 Figure 04: Misconduct and disciplinary action page 92

Table 01: Summary of aircraft accidents per aircraft category page 07Table 02: Demographics of licensed aviation personnel by trade page 22Table 03: Aircraft type: three-year comparison page 23Table 04: Type certified versus non-type certified aircraft: seven-year comparison page 24Table 05: Punitive measures against non-compliance page 25Table 06: Performance information for the period of 01 April 2018 - 31 March 2019 page 26-35Table 07: Organisational highlights page 37Table 08: Aircraft accidents per aircraft category page 38Table 09: Aviation Safety Operations MOSP 2018/2019 page 41Table 10: Aviation Safety Operations MOSP 2018/2019 – deviation explanation page 42Table 11: Aviation Security MOSP 2018/2019 page 43Table 12: Aviation Security MOSP 2018/2019 – deviation explanation page 43Table 13: Aviation Infrastructure MOSP 2018/2019 page 44Table 14: Aviation Infrastructure MOSP 2018/2019 – deviation explanation page 44Table 15: Stakeholder engagement activities page 48Table 16: Regional technical assistance and cooperation missions page 49Table 17: SACAA revenue collection page 50Table 18: A snapshot of the SACAA’s application of The King IV™ Principle page 53-55Table 19: Board Composition page 66Table 20: Board and Board Committee meetings page 68-69Table 21: Board remuneration page 70Table 22: Risk register page 71Table 23: Combined Assurance Implementation page 74Table 24: Two-year comparison of reported injuries on duty page 77Table 25: Personnel cost by Division page 88Table 26: Personnel cost by salary band/level page 88Table 27: Performance rewards by salary band/level page 89Table 28: Training costs per Division page 90Table 29: Employment and vacancies per Division page 91Table 30: Employment changes per salary band/level page 91Table 31: Employment equity status - male page 93Table 32: Employment equity status - female page 94Table 33: Employment equity status - disabled staff page 95




Foreword by the Chairperson

Mr Ernest Khosa

IntroductionI am delighted to present the 2018/2019 Annual Report on behalf of the newly appointed Board. The year under review has been encouraging, to say the least, albeit in challenging economic times. I am proud to affirm that the South African Civil Aviation Authority (SACAA) has continued to perform exceptionally well during the year, having attained a hundred percent (100%) performance against targets set in the 2018/2019 Annual Performance Plan (APP), and excelling on some as elucidated more fully in this report.

As the SACAA, we have focused ourselves strongly on the execution of the strategic objectives and have demonstrated dedication to improving the demographics of the aviation industry in terms of transformation, as well as strengthening the regulator’s reputation as a whole. The entire organisation has emulated a harmonious culture of togetherness, growth and continuous improvement. We are aiming our sights on an organisation that will be agile in its pursuit of perfection, sound governance, and excellence whilst executing its core mandate.

Aviation, as an industry, is a critical one in contributing to the overall Gross Domestic Product (GDP) of any country. Safe travel, regular audits, and zero tolerance for non-compliance to regulations is what propels the SACAA in executing its mandate. Through our rigorous and tireless efforts, we are contributing to the economic growth of South Africa.

The SACAA reviews its organisational performance quarterly against its Strategic Plan, from which the APP is developed. The APP is signed annually, with our Executive Authority, the Minister of Transport. Each quarter a report outlining progress against set targets is submitted to the Executive Authority. The information contained in this report is gathered from those quarterly reports, therefore ensuring consistency and reliability of information. In line with the relevant prescripts, the annual report is submitted to the Executive Authority, the Auditor-General of South Africa (AGSA) as well as other key stakeholders at the end of August of each year. It is hoped that through this annual report, the SACAA is able to adequately share its substantive and exciting achievements of the past financial year, thereby ensuring transparency and an increased understanding of the SACAA’s role and contribution to our country’s socio-economic activities. Most significantly, the annual report is duly audited by the AGSA to ensure the consistency, reliability and accuracy of the information reported. It is also significant to point out that the report is also tabled in Parliament.

Overview of the year It is an exciting time to be Chairperson of the Board, this being my first report, as well as this being the penultimate report of the SACAA’s Strategic Plan, which spans five years, i.e. from 2015/2016 – 2019/2020. We have delivered sterling operational and financial results during the year, and it is my pleasure to inform our stakeholders about some of the highlights.

It is elating to report that the SACAA has upheld the expected corporate governance ethos; and as a result, secured an unqualified audit opinion. This remarkable performance should not be celebrated in isolation, because the SACAA’s objectives are aligned to those of the Department of Transport, which are in turn, tied to the National Development Plan Vision 2030 (NDP). Ultimately, the SACAA’s achievements translate into South Africa’s success.

Compliance with international standardsThe Republic of South Africa is a signatory to the Convention on International Civil Aviation of 1944 (Chicago Convention), which led to the establishment of a United Nations’ specialised agency, the International Civil Aviation Organization (ICAO).

The ICAO is responsible for standardising and administering the safety and security of civil aviation operations across the world; with the expectation that Member States will comply with the set Standards and Recommended Practices (SARPs). The adoption and implementation of the SARPs ensures that local civil aviation regulations, and in turn operations, conform to global norms, thus enabling the global aviation network to operate reliably, safely and securely.

The ICAO regularly performs mandatory audits on Member States to assess whether the critical elements of the safety and security oversight systems have been effectively and consistently implemented. The results of the audit, which are measured through Effective Implementation (EI) ratings, equip the Member State with guidelines and guidance on areas that require improvement.




There are eight (8) critical elements governing each of the two (2) major civil aviation oversight systems; and these are:

• Safety, which is audited by ICAO under the Universal Safety Oversight Audit Programme (USOAP) Continuous Monitoring Approach (CMA); and

• Security, which is audited by ICAO under the Universal Security Audit Programme - Continuous Monitoring Approach (USAP-CMA).

Over the years, South Africa’s Effective Implementation has been improving. Following an audit undertaken in 2007, South Africa achieved a rating of 77.1%. Another audit was conducted in July 2013, resulting in South Africa attaining an EI of 83.83%. The most recent audit took place in 2017, and this pushed up South Africa’s rating to 87.41%. The current and previous ratings are significantly higher than the world average of 60%.

A key focus of the SACAA during this reporting period was the implementation of South Africa’s Corrective Action Plan (CAP) in relation to the ICAO’s USOAP-CMA results. The implementation of South Africa’s Corrective Action Plans, as at the end of the financial year, was at 83.49%, while the SACAA-specific CAP implementation percentage was at 88%. When the Accident and Incident Investigation Division’s CAP is added to that of the SACAA, the record stands at 84.62%, meaning that the SACAA’s APP target of 80% was exceeded. This movement in implementing the CAP is remarkable and indicates that the country’s commitment to aviation safety is indeed a top priority.

Inspiring continuity at management echelonOur appointment as a new Board was not the only change that took place during this reporting period; excitingly, Ms Poppy Khoza’s employment contract as Director of Civil Aviation (DCA) was also renewed by the Minister of Transport for a further five (5) years, effective from 01 December 2018.

What is inspiring about the appointment of both the DCA and Board is the element of continuity at the leadership level. Out of the seven (7) non-executive Board members, six (6) were reappointed from the Interim Board that held the fort for a period of six (6) months, starting on 01 April 2018 and ending on 30 September 2018. The reappointment of the DCA and most of the Board Members is, in my opinion, encouraging as it ensures that there is continuity at this level of leadership. I am also happy to report that there has been ongoing stability at the level of the Executive team as the SACAA has managed to retain all its Executives.

Insourcing of recreational aviation activities In an effort to improve regulations and safety within the Recreational Aviation space, a decision was taken to insource all the services of the Recreation Aviation Administration of South Africa (RAASA). This process began in 2018, and I am pleased to report that these changes became effective after the reporting period i.e., as of 01 April 2019. A transitional plan, with the aim of ensuring a smooth transition during the process, has been implemented successfully.

Stakeholder engagements and relationshipsIn the last two (2) years the SACAA has focused on centralising communication, sharing information, building relationships, and cooperation between the SACAA and all stakeholders. The year under review allowed us to fulfil this goal through various stakeholder engagement activities, which led to topics of great importance being discussed amongst the top thought leaders in the industry.

Strategic outlookAs one of the leading aviation and regulatory authorities on the continent, we are continuously looking at how to enhance and optimise our performance, both operationally and financially. From a financial perspective we are constantly looking at broadening our income streams. The safety and security of all aviators and their passengers will continue to be at the core of our operations.

Conclusion

When considering that in the 2011/2012 period, we attained a 74% performance rating, the fact that for the last four (4) years that number has increased to 100%, coupled with receiving unqualified audit opinions over the years, our unwavering dedication to the success of the aviation industry is evident.

We will continue to work even harder to ensure that SACAA solidifies its focus on the four good governance outcomes that are articulated in the King IV Report on Corporate Governance™ (King IV Report™), namely; ethical culture, good performance, effective control and legitimacy. The Board will continue to monitor progress on the closure of all deficiencies that are identified by any means, including the King IV™ gap analysis. Moreover, greater emphasis will continue to be placed on ethical leadership and professionalism throughout the organisation, which are principles that are intertwined with compliance to legal prescripts.

Last but not least, I wish to extend my gratitude to the previous Board and also welcome the incoming Board of Directors.

Similarly, I would like to extend a warm SACAA welcome to our new Minister of Transport, Mr Fikile Mbalula, MP, and the Deputy Minister, Ms Dikeledi Magadzi, MP. We look forward to your leadership, support, guidance and encouragement as we embark on a new trajectory in the next five-year cycle.

Our sincere thanks go to the former Minister, Dr Blade Nzimande, MP and the previous Deputy Minister of Transport, Ms Sindisiwe Chikunga, MP, for the unwavering support and distinctive leadership provided to the SACAA.

On behalf of the Board, I wish to thank each and every one of the SACAA employees, starting with the Director of Civil Aviation, right through to the most junior employee, for a remarkable job well done!

_________________Mr Ernest Khosa Chairperson: SACAA Board 31 August 2019




Overview by the Director of Civil Aviation

Ms Poppy Khoza

Looking back, 2018/2019 has, once again, been a year of promising financial and operational results, with this being the fifth reporting period in which we have achieved 100% of our Annual Performance Plan (APP). The APP is a binding contract, signed annually between the entity and the Ministry of Transport, providing strategic and operational goals for the SACAA.

This report, which has been scrutinised by the Auditor-General, reflects on the financial and operational performance of the SACAA for the financial year that ended on 31 March 2019.

HealthyfinancialstatusThe SACAA has achieved a healthy financial position, despite the prevailing difficult economic conditions; closing the year with a surplus that enables it to continue as a going concern for the foreseeable future, is a feat of which we are incredibly proud.

We report a net operating surplus of R2.1 million for the period ending 31 March 2019, against a budgeted surplus of R1.2 million. This has resulted in a positive variance of R0.9 million. Overview on aviation safetyIt is also worth emphasising that throughout the 2018/2019 financial year, the SACAA, as usual, carried out its mandate, without any form of fear or favour, to ensure that compliance to regulations is upheld by those it regulates. Every South African should be proud of the fact that our country’s remarkable record of compliance with global safety standards remains unbroken. In fact, our world-class safety and security oversight frameworkremains solid.

It is worth mentioning that South Africa has proudly maintained its zero accident record in the scheduled commercial operations (airlines), a record which is non-negotiable endeavour to keep for many years to come. As a general practice across the world the number of aircraft accidents, as well as related aviation incidents, are used as a measure to gauge the presence and effectiveness of a country’s oversight system over civil aviation operations.

It is very encouraging to note that the number of fatalities resulting from aircraft accidents in the general aviation sector continued to decline. This has been the case for the past few years. Statistics indicate that as at the end of March 2019, there were twenty (20) fatalities, which indicate a decrease by one fatality when compared to the 2017/2018 financial year. Further, the statistics indicate a decrease of ten (10) fatalities when compared to the 2016/2017 financial year.

A review of statistics also indicates that a total of fifteen (15) fatal accidents were reported between 01 April 2018 and 31 March 2019. This translates into an increase of one (1) when compared with the same period during the 2017/2018 financial year. Nonetheless, this number is still remarkably better than the total of eighteen (18) fatal accidents recorded during the 2016/2017 financial year.

While there is an improvement in terms of fatalities and fatal accidents, there was a slight increase in terms of the number of aviation accidents. A total of 86 accidents were reported between 01 April 2018 to 31 March 2019, which translates into an increase of four when compared to the same period during the preceding year. It is crucial to note that unlike previous years, remotely piloted aircraft systems (RPAS), no matter their size, have been added to the list. If RPAS are excluded, the total number of accidents drops down to eighty-three (83).




Aircraft category Commercial Private Training Unknown Total numberGlider 0 1 0 0 1Gyrocopter 0 2 1 0 3Type-Certified Aircraft (helicopter) 4 11 1 0 16Type-Certified Aircraft (fixed-wing) 4 23 6 0 33Non-Type-Certified Aircraft (fixed-wing) 2 18 4 0 24Non-Type-Certified Aircraft (helicopter) 2 2 0 0 4Parachute 0 0 0 0 0RPAS 2 2 0 0 4Unregistered 0 0 0 1 1Total 86

Accident per aircraft category - 01 April 2018 to 31 March 2019

Table 1: Summary of aircraft accidents per aircraft category

In aviation there is absolutely no room for error, which further encouraged the SACAA and various stakeholders, working together to ensure that South African skies remain safe. To achieve this objective, it applies a three-pronged approach. One of the approaches entails auditing and certifying aviators and aviation operations. The second approach entails encouraging and reminding aviators about the importance of aviation safety and security. The third approach focuses on applying punitive measures against lawbreakers.

In an effort to preserve lives, the SACAA took punitive measures against some operators. The following is a summary of some of the key measures that the SACAA took against non-compliances.

• On 24 May 2018, the SACAA suspended SA Express’ Air Operator Certificate (AOC) as well as the airline’s Aircraft Maintenance Organisation (AMO) approvals. In addition, the SACAA also suspended the Certificates of Airworthiness (CoA) of nine (9) of the twenty-one (21) aircraft registered and/or operated by the airline. The suspension was necessitated by non-compliances that posed serious safety risks.

• Following unsuccessful attempts to get CemAir to comply with licence conditions, the SACAA finally took a decision to halt the airline’s operations by suspending its Part 121 and 135 Air Operator Certificates (AOCs). The suspension became effective on 11 January 2019 and was necessitated by the SACAA’s concerns over the systemic failure of the airline’s maintenance controls. This was after an annual renewal audit revealed CemAir’s inability to prove the continued airworthiness of its fleet.

• On 24 January 2019, the SACAA downgraded Mthatha Airport’s licence category from Level 4 to Level 3. This occurred after the SACAA had discovered some shortcomings relating to the airport’s rescue and fire-fighting services as well as the aerodrome’s emergency management system.

At the time of compiling this report, SA Express and Mthatha Airport were operating as per the norm, i.e. after they had managed to satisfactorily address the SACAA’s concerns. On the other hand, CemAir remained grounded, and the SACAA was working together with the airline to try and guide it back into full compliance.

Overview on aviation securityThe SACAA has started the process of getting South Africa ready for the ICAO’s Universal Security Audit Programme Continuous Monitoring Approach (USAP-CMA). The objective of the USAP-

Three-pronged approach

Auditing and certifying aviators

and aviation operations

1Encouraging

and reminding aviators about the importance

of aviation safety and

security

2Focuses

on applying punitive

measures against

lawbreakers

3




CMA is to promote global aviation security through continuous monitoring of Member States’ aviation security performance, in order to enhance their aviation security compliance and oversight capabilities.

A date to audit South Africa on its aviation security oversight activities has not been set as yet. Regardless, the SACAA has been implementing South Africa’s readiness plan. In this regard, a Peer Assessment (mock audit) exercise was conducted in February 2019. The result of the Peer Assessment audit reflected an improvement in the Effective Implementation level, as well as highlighting a number of areas requiring enhancement. Management has compiled a plan and has allocated the requisite resources to address the identified inefficiencies. It is expected that South Africa will be audited in 2020 after the conclusion of administrative processes between ICAO and the Department of Transport.

Contribution to global discourse on key civil aviation mattersThe 2018/2019 financial year is one of which the Regulator, and indeed the entire aviation community, can be proud. As an example, the SACAA played a central role in ensuring that South Africa hosted the first-ever Global Aviation Gender Summit, attended by nearly 500 top-ranking representatives of governments and the aviation industry from across the world, including airlines, airports, and aircraft manufacturers.

The gathering was held in Cape Town from 08 - 10 August 2018 and sought to provide a platform through which all relevant stakeholders could jointly chart a new flight path that would bring about meaningful gender transformation and equality in aviation – not only in South Africa, but across the world. To this end a number of outcomes were agreed upon, and shall be further tabled at ICAO during its 40th Assembly in September 2019. A communiqué was also adopted and published for all ICAO member States to note and implement. The SACAA shall continue to advance gender equality discussions in the aviation industry in the next financial year.

The summit, which was deemed to be a success by all stakeholders, was held in cooperation with the ICAO, a United Nations agency responsible for managing civil aviation activities across the world, and the SACAA’s shareholder, i.e. the Department of Transport. The summit also enjoyed support from the United Nations Educational, Scientific and Cultural Organization (UNESCO); South African Airways (SAA), Transport Canada, Air Traffic and Navigation Services (ATNS), Boeing, Ethiopian Airlines, Airports Company South Africa (ACSA), and Qatar Airways.

Advancing human capital managementThe SACAA continued to place emphasis on looking after the wellbeing, career aspirations, and talent development of its employees. As at the end of the financial year, the Human Resources Division had achieved 94.7% of the targets detailed in the organisation’s Human Resources Operational Plan. Moreover, in January 2019 the SACAA’s Culture Harmonisation

Programme was launched with emphasis placed on the envisaged organisational culture that would be driven through several key pillars, namely: leadership, client-centricity, performance excellence, empowerment, collaboration, communication, ethics and governance.

I am also pleased to report, and to have been one of the witnesses to the strides made by the SACAA in putting emphasis on looking after, amongst others, the wellbeing, compensation, career aspirations as well as talent development of its employees. As the head of the institution, I had the opportunity to officially launch the organisation’s culture pillars in January 2019, which marked the start of the SACAA’s Culture Harmonisation Programme. During the launch, the pillars of our organisational culture, namely: leadership, ethics and governance, client-centricity, performance excellence, empowerment, communication, and collaboration were introduced. We used the remainder of the reporting period to focus on communicating and unpacking the behaviours linked to the culture pillars as part of the change process towards institutionalising the behaviours of the espoused culture. In my opinion, the goal of looking after the needs of our employees, in a holistic manner, is coming to fruition.

TransformationAs has been the case for decades, the number of Africans, Coloureds, and Indians with technical licences remained significantly lower than those of their White counterparts, particularly White males. Coloureds constitute the lowest category of technical licence holders. As at the end of the financial year, there were thirty-four (34) aviators with hot-air balloon licences and in terms of demographics, thirty-one (31) are White males and three (3) White females. In terms of the highest pilot qualification, i.e, the Airline Transport Pilot’s Licence (ATPL) in the helicopter category, the numbers are alarming, as there are only three (3) African males, one (1) African female, sixteen (16) White females, 269 White males, one (1) Indian Male, and one (1) Coloured male. This means there were no Indian or Coloured females with helicopter ATPL licences.

This simply means that transformation remains the aviation industry’s Achilles heel, and a game-changing intervention is long overdue. Following the drafting of the National Aviation Transformation Strategy by the SACAA, it is encouraging that the Department of Transport has focused on the review and submission of the draft National Aviation Transformation Strategy (NATS) to Cabinet for approval. The NATS is earmarked as a game-changer that will facilitate a co-ordinated approach to aviation transformation in the country. It is believed that the NATS will not only provide a co-ordinated approach to aviation training, but also opportunities for previously marginalised societies in particular.

In terms of SACAA transformation, the gender representation of the Board comprises 50% male and 50% female. Similarly, the SACAA’s Executive Management Committee has a good representation of women at 50% of what constitutes an Executive Committee. This type of diversity, including that of age, is key, as it harnesses knowledge, skills, qualifications, and overall career and life experience.




Contributing to economic transformationIn line with the organisation’s target, the SACAA managed to retain its Level 2 B-BBEE (Broad-Based Black Economic Empowerment) rating. In addition, and in an endeavour to contribute to economic transformation, 75.6% of the organisation’s total procurement spend was by companies falling under the B-BBEE definition. The 75.6% is much higher than the organisation’s target of 65%. Out of the 75.6%, a total of 30% of the suppliers were businesses owned by Black women. The organisation will work harder to increase the percentage and participation of youth-owned businesses, who in this reporting period, managed to get only three percent (3%) out of the 75.6%.

Keeping an eye on the future The 4th Industrial Revolution is no longer a theory, it is here. Regulators need to reinvent themselves in order to accommodate the pace of the changing world and aviation industry. In order to achieve these objectives and remain relevant, Regulators such as the SACAA will need to continue implementing best-practice information and communication technology systems, as well as HR programmes that will consistently attract and sustain a high-performing workforce, and retain the best talent.

This reporting period has been one of the most busy and dynamic periods that we have experienced. We are in the last year of the implementation of our five-year strategy; and going forward we will continue to ensure that our strategies are aligned with the priorities of government, according to our prescribed mandate and the changes in the aviation industry globally. Moreover, our new 5-year strategy development process also coincides with the ICAO’s 40th Annual General Assembly in September and October 2019, which will also give us the opportunity to align our new strategy with the ICAO Assembly resolutions.

Successful adoption of an integrated information systemOne of the main targets to achieve in this reporting period was the completion of the Enterprise Business System (EBS) in order to achieve an integrated information (ICT) system for the organisation and for the benefit of clients. I am happy to report that the EBS project was completed in line with the set target, and with all the required modules successfully loaded and ready for utilisation. In addition, a closeout report was submitted to, and approved by the SACAA’s Executive Management Committee (ExCo).

Recognising industry excellenceAt any given second or minute there is an aircraft taking off or landing somewhere in the world. Moreover, every time an aircraft takes off, the lives of people on board are in the hands of aviation professionals. The seamless nature of air transport belies the intricate processes involved in aviation operations. It was for this reason that the SACAA saw it fit to launch the inaugural Civil Aviation Industry Awards, which were held in November 2018. The awards were aimed at recognising deserving operators as well as aviation personnel doing outstanding work to keep our

industry safe and secure. These awards are set to continue into the fututre.

Recognising Team SACAATeam SACAA knows how to stand together, and to meet all challenges head-on! It is this attitude that has enabled the organisation to achieve what it has thus far. In essence, our organisation depends on its human capital, which is characterised by a spirit of resilience. This is exactly what was needed in this challenging financial year on which we are reporting. It is therefore important to regularly recognise the hard work that our staff put into their daily duties. The Staff Awards are one of the ways that the organisation relays gratitude for outstanding work. Several employee-focused initiatives were adopted by the organisations, and one of the most important among these is the continued recognition of excellence. Our policies will continue to be reviewed to elevate the focus on our most valued asset, i.e. our staff.

ConclusionFinally, let me thank each and every staff member, from Executives through to the most junior in our organisation, for the resilience and drive you showed in the last financial year. Your efforts continue to set us apart as an organisation that strives for excellence. As Team SACAA, always remember that our efforts play an important part in the country’s socio-economic development and growth, especially in matters of trade and tourism, which contribute to job creation and poverty alleviation.

Allow me to also use this opportunity to convey special words of gratitude to the previous Minister of Transport, Dr Bonginkosi Nzimande, MP, the Deputy Minister, Ms Sindisiwe Chikunga, MP, as well as the former Board of Directors for their unwavering support and responsive leadership during their tenures. I wish to welcome the new Director-General, Mr Alec Moemi, and also thank the then Acting Director-General and the entire staff of the Department of Transport (DoT). I also want to take this opportunity on behalf of the SACAA Management and staff, to extend a warm welcome to the Minister of Transport, Mr Fikile Mbalula, MP, the Deputy Minister, Ms Dikeledi Magadzi, MP, the new Board of Directors chaired by Mr Ernest Khosa; and to pledge Team SACAA’s unwavering support towards a common vision that will propel the SACAA to remain one of the best-performing State entities in South Africa.

Yours sincerely,

_________________Ms Poppy Khoza Director of Civil Aviation 31 August 2019




Statement of responsibility and confirmation of accuracy of the Annual Report To the best of our knowledge and belief, we confirm the following:

All information and amounts disclosed in this Annual Report are consistent with the Annual Financial Statements audited by the Auditor-General of South Africa.

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

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

The Annual Financial Statements (Part E) have been prepared in accordance with the Public Finance Management Act, 1999, as amended, and standards applicable to the SACAA.

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

The accounting authority is responsible for establishing and implementing a system of internal controls, which has been designed to provide reasonable assurance as to the integrity and reliability of the performance and human resources information, as well as the Annual Financial Statements.

The external auditors were engaged to express an independent opinion on the Annual Financial Statements.

In our opinion, the Annual Report is a fair reflection of the operations, performance information, human resources information and the financial affairs of the SACAA for the financial year ended 31 March 2019.

Yours faithfully,

_________________Mr Ernest KhosaChairperson: SACAA Board

_________________Ms Poppy KhozaDirector of Civil Aviation




Strategic overview

Mission To regulate civil aviation safety and security in support of the sustainable development of the aviation industry.

Vision Ranked among the Top 10 civil aviation authorities globally by 2020.

Brand Promise The brand promise remains – “Keeping you safe in the sky”.

Values

Always giving your best effort and seeking to continuously improve.

Good is never good enough.

AttributesValue

Maintain high ethical standards and approach issues professionally with integrity, without any bias and in a transparent manner that engenders trust amongst all our stakeholders.

Integrity and independence.

Service delivery ahead of customer expectation, striving to always exceed customer expectations.

Service excellence.

Working with others and taking joint accountability for the end result.

Teamwork and partnerships.




The Republic of South Africa is a signatory to the Convention on International Civil Aviation of 1944 (Chicago Convention), which led to the establishment of a United Nations specialised body, the International Civil Aviation Organization (ICAO). The ICAO is responsible for standardising and administering the safety and security of civil aviation operations across the world.

The SACAA is a juristic person, established in terms of the Civil Aviation Authority Act, 2009 (Act No 13 of 2009). The SACAA’s mandate is to administer civil aviation safety and security oversight in the Republic of South Africa, in line with the Civil Aviation Act (the Act), and in accordance with the standards and recommended practices (SARPs) prescribed by the ICAO.

The SACAA, as prescribed by the Civil Aviation Act as well as the Public Finance Management Act, 1999 (Act No.1 of 1999) (PFMA), is a Schedule 3A entity, and is governed and controlled by a Board of Directors (the Board) that serves as the accounting authority. In turn, the Board is accountable to the Minister of Transport who is the Executive Authority.

The Board comprises seven non-executive members, as well as the Director of Civil Aviation (DCA), all of whom are appointed

by the Minister of Transport. The Board is expected to retain full and effective control over the governance of the SACAA; and in this regard, a clear division of responsibility exists at Board and Executive Management level. It has delegated some of its powers to the Director of Civil Aviation and the SACAA’s Executive Committee through a Delegation of Authority (DoA) framework. The DoA, however, does not absolve the Board of its responsibilities and accountability.

The DCA is responsible for the administration and management of the day-to-day affairs as well as the staff of the SACAA. In addition, the DCA is also responsible for the SACAA’s regulatory/oversight functions of civil aviation safety and security operations. In relation to this particular responsibility, the DCA reports to the Minister of Transport.

There are eight (8) critical elements governing each of the two (2) major civil aviation oversight pillars, i.e. safety and security. Safety framework is audited by ICAO under the Universal Safety Oversight Audit Programme (USOAP) Continuous Monitoring Approach (CMA), while the security element is audited under the Universal Security Audit Programme - Continuous Monitoring Approach (USAP-CMA).

Diagram 1: ICAO Safety and Security Critical Elements

Legislative and oversight mandate

ICAO Safety and Security Eight Critical Elements (CE)

Aviation Security Legislation

Appropriate Authority

Guidance, Tools and Info

Personnel Qualification and Training

Programme and Regulations

Quality Control Obligations

Resolution of Safety Concerns

Certification and Approval Obligations

Eight Critical Safety Elements

Eight Critical Security Elements

CE3CE1

CE2

CE4

CE6

CE7

CE5

CE8 Surv

eilla

nce

Obl

igat

ions

Resolution of

Safety Concerns Certification and

Approval Obligations

Primary Aviation

Legislation

State Civil

Aviation System and

Safety OversightFunctions

Technical

Guidance, Tools

and the Provision of

Safety Checklist

Technical Personnel

Qualifications and

Training

Spec

ific O

pera

ting

Regu

latio

ns




Org

anis

atio

nal h

igh-

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l stru

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e M

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rt D

ivis

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Mem

bers

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ittee

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ulat

ory

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rd o

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ctor

s

Aud

it an

d R

isk

Com

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ee

Dire

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ivil

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tion

Chi

ef A

udit

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utiv

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nt

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Infr

astr

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O

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Avia

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Secu

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Fina

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Lega

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s




Board composition(31 March 2019)

Mr Ernest KhosaChairperson of the Board

Prof. Ntombizozuko Dyani-Mhango

Mr Mongezi India

Ms Poppy Khoza Director of Civil Aviation

Ms Bulelwa Koyana

Ms Tshitshi Phewa

Dr Brian Suckling

Mr Surendra Sooklal

Ms Nivashnee NaraindathCompany Secretary




Executive Management Committee (31 March 2019)

Ms Poppy KhozaDirector of Civil Aviation

Mr Luvuyo Gqeke Executive: Aviation Security

Mr Asruf Seedat Executive: Finance

# Ms Babalwa NdandaniExecutive: Legal and

Aviation Compliance (Acting)

Mr Simon SegwabeExecutive: Aviation Safety Operations

Ms Phindiwe Gwebu Executive: Corporate

Services

Mr Gawie BestbierExecutive: Aviation

Infrastructure

Ms Thobile MasooaExecutive: Human

Resources

## Mr Phila KewanaChief Audit Executive

### Mr Peter Mashaba Executive: Accident and Incident Investigations

Ms Nivashnee Naraindath Company Secretary

# Ms Ndandani is holding the fort in the absence of Ms Mmanare Mamabolo who has been seconded to the Department of Transport.## The Chief Audit Executive performs a Governance and Board support role.### The Executive: Accident and Incident investigations heads the Accident and Incident Investigations Division, which administratively reports to the DCA, and functionally to the Department of Transport.

Performance Information

PARt


PART B - Performance Information


Statement of responsibility for performance information and confirmation of accuracy for the year ended 31 March 2019 In line with applicable regulatory prescripts, the DCA is responsible for the preparation of the SACAA’s performance information and for judgments made in this report. In addition, the DCA is responsible for establishing and implementing a system of internal control designed to provide reasonable assurance relating to the integrity and reliability of the outlined performance information.

In my opinion, the performance information outlined in this report fairly reflects the actual achievements against planned objectives, indicators, and targets as per the strategic and annual performance plans of the SACAA for the year ended 31 March 2019. The SACAA’s performance information for the year ended 31 March 2019 has been audited by the Auditor-General of South Africa (AGSA) with no unresolved audit findings. The AGSA’s report is presented on pages 98 - 101 of this document.

The performance information of the SACAA, set out from page 19 to page 50, was approved by the SACAA’s Board of Directors.

_________________Ms Poppy KhozaDirector of Civil Aviation31 August 2019




Auditor’s report: predetermined objectivesThe Auditor-General of South Africa (AGSA) carried out the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the AGSA’s report to Management. The AGSA identified material misstatements in the annual performance report submitted for auditing. These material misstatements were on the reported performance information of Goal 1: regulate the aviation industry effectively and efficiently. Management subsequently corrected the misstatements, and the AGSA did not raise any material findings on the usefulness and reliability of the reported performance information in the Annual Report on other legal and regulatory requirements section of the auditor’s report.

Refer to pages 98 - 101 for the Auditor’s Report, published as Part E: Financial information.




Situational and performance analysis The SACAA’s performance against targets delineated in its 2018/2019 Annual Performance Plan (APP) is narrated in this part of the report. The SACAA’s 2018/2019 APP is drawn from the SACAA’s 2015-2020 Strategic Plan. This section of the report also provides a comprehensive analysis of internal and external factors that had an impact on the SACAA’s ability to fulfil its mandate and reach the set annual targets.

Economic viability of the aviation industry

Annual passenger numbers in relation to the Passenger Safety Charge The SACAA is a self-funded public entity that relies on a combination of revenue streams to fulfil its mandate and business operations. The revenue streams consist of mainly the Passenger Safety Charge (PSC), User Fees, Fuel Levy, as well as a grant earmarked for the investigation of aircraft accidents and incidents. Over 75.7% of the SACAA’s total revenue is derived from the PSC, and hence the organisation pays attention to industry developments that may have an impact on passenger movements and related numbers. In February 2019, the Minister of Transport, with the concurrence of the Minister of Finance, approved an annual increase of 5.3% on the PSC for 2019; bringing the amount to R24.86 per ticket. The amended regulations were published in the Government Gazette and became effective from 01 May 2019.

The total passenger numbers for the 2018/2019 period amounted to 22 543 967, compared to the budgeted amount of 22 836 811. This is 1.3% lower than the budget, and 1% higher than the same period, last year. Of concern is that the growth in passenger numbers for the current year is below budget and substantially down on the growth experienced in the previous three financial years of 9.1% (2015/2016), 4.5% (2016/2017) and 4.7% (2017/2018).

Regular PSC audits are conducted by the SACAA revenue officials to ensure compliance by airlines and to strengthen relations between the Authority and the airline industry. Airlines earmarked for audits are selected by using a risk-based, annual audit plan. Larger airlines and airlines where previous problems were encountered are visited more frequently. Regulations require all airports to submit monthly passenger numbers to the SACAA, which are then compared with the declarations received from the airlines. Substantial, unexplained variances on numbers supplied by the airports and those from the airline are examined during the audit process.

A review of the 2018/2019 financial year figures indicates that the PSC accounts for 75.7% of total revenue, User Fees 14.2%, Fuel Levy 3.6%, the grant from the Department of Transport (DoT) was 3.1%, and Other Income 3.4%. These percentages are fairly constant when compared to previous years. As the PSC is the biggest contributor to the revenue, the passenger numbers will have a major impact on financial performance, and these numbers are closely monitored on a monthly basis.

The SACAA invoices the PSC one month in arrears to allow for information received from airlines to be processed, thus the actual passenger numbers reflected in the next graph are also a month in arrears. Monthly provision is being made for the arrear billing. The next graph provides an analysis of the passenger numbers for the last five years.

TOTAL PASSENGER

22 543 967BUDGETED AMOUNT

22 836 811

1.3% lower than the budget

1.0% higher than last year

2015/2016 9.1%

2016/2017 4.5%

2017/2018

2018/2019

4.7%

1.0%

PASSENGER GROWTH

FINANCIAL YEAR

FIGURES

PSC accountsUser Fees

Fuel Levy

Department of Transport

(DoT)

Other Income2018/2019

14.2%75.7%

3.6%

3.1%

3.4%




Graph 01: Passenger Safety Charge figures between 2014/2015 – 2018/2019

Key industry developments

Boeing 737 MAX 8 Following the tragic Ethiopian Airlines crash shortly after take-off in Addis Ababa on 10 March 2019, the safety of the Boeing 737 MAX 8 aircraft was brought into question. Ethiopian Airlines Flight 302 crashed six minutes after take-off. Tragically, none of the 157 people on board survived. The aircraft was less than four months old. A similar aircraft, operated by Lion Air in Indonesia, crashed on 29 October 2018, just 12 minutes after take-off. Similarly, none of the 189 people on board survived the crash.

Following the Ethiopian Airlines Flight 302 accident, the SACAA initiated dialogue with both Comair and Boeing. Comair is the only operator utilising the Boeing 737 MAX 8 in South Africa. Following these deliberations, Comair decided to voluntarily ground what was then their sole Boeing 737 MAX 8 aircraft. The SACAA supported Comair’s self-grounding which was taken as a precautionary measure. Soon thereafter, the United States’ Federal Aviation Administration

(FAA) took a decision to ground all the Boeing 737 MAX 8 and nine (9) aircraft worldwide. At the time of compiling this report, the grounding was still in place.

CemAir operations suspended by the SACAA CemAir operations were suspended by the SACAA in January 2019 due to a non-compliance that posed serious safety risks. At the time of compiling this report, CemAir’s Air Operator Certificate (AOC) had expired and the renewal process was still under way.

SA Express resumes operations Following the suspension of SA Express on 24 May 2018, all operations were resumed in August 2018. The SACAA had suspended the airline’s Air Operator Certificate (AOC), Aircraft Maintenance Organisation (AMO) approval, and nine (9) Certificates of Airworthiness (CoA), due to non-compliances that posed serious safety risks. Based on the Corrective Action Plan that was approved by the SACAA, the airline’s AMO and AOCs were subsequently re-issued.

Passenger numbersComparison of scheduled passengers invoiced April 2014

to March 2019 (invoicing is done month after passengers have flown)

2014/2015 2015/2016 2016/2017 2017/2018 2018/2019

Mill

ions 2.2

2.1

2.0

1.9

1.8

1.7

1.6

1.5

1.4

1.3

1.2

Pax

Num

bers

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar




Comair year-end results released Comair announced their year-end results for the period ending 30 June 2018. The company indicated that they had experienced a 4% increase in passenger volumes during their financial year. Comair further indicated that seat occupancy remained constant at 76%, which is below the average global industry seat occupancy ratio of 80.6%.

Personnel licence statistics

Demographics of aviation personnel by licence categoryBy the end of March 2019, the number of South African personnel with technical licences was 20 791. This number excludes those that hold cabin crew and remote pilot’s licences.

As has been the case for decades, the number of Africans, Coloureds, and Indians remained significantly lower than those of their White counterparts, particularly White males. Coloureds constitute the lowest category of technical licence holders. As at the end of the financial year, there were 34 aviators with hot-air balloon licences and in terms of demographics, 31 are White males and three (3) White females. In relation to the highest pilot qualification, i.e. Airline Transport Pilot’s Licence (ATPL), in the helicopter category for example, there were three (3) African males, one (1) African female, 16 White females, 269 White males, one (1) Indian Male, and one (1) Coloured male. This means there were no Indian or Coloured females with a helicopter ATPL licence.

A breakdown of gender statistics for fixed-wing or aeroplane ATPL, which is the highest pilot qualification, is delineated in the charts below:

Figure 01: The number of South African female pilots with an ATPL for fixed-wing aeroplane

African

Coloured

Indian

White

Figure 02: The number of South African male pilots with an ATPL for fixed-wing aeroplane

African

Coloured

Indian

White

208

95

6

2958

8838

58

Females

Male




Aircraft Maintenance Engineers347 43 1 800 47 2 237 170

The next table provides a detailed background of the demographics of licensed aviation personnel by trade.

Demographics of licensed aviation personnel by trade

Student Pilot (Active Licences)562 61 1 540 86 2 249 839

Private Pilot - Aeroplane453 84 6 077 113 6 727 1 764

Private Pilot - Helicopter66 10 1 781 18 1 875 392

African

Coloured Indian

White Total South African Total Foreign NationalsSouth African

Commercial Pilot - Aeroplane224 39 2 772 85 3 120 2 025

Commercial - Helicopter41 12 860 9 922 175

Airline Transport (Aeroplane)97 43 3 166 64 3 370 299

Airline Transport (Helicopter)4 1 285 1 291 16

Total5 802 903 19 334 686 25 278 5 939

Cabin Crew2 561 610 1 053 263 4 487 259

Table 02: Demographics of licensed aviation personnel by trade




Review of the South African Aircraft RegisterAs depicted in the next table, at the end of this review period, there were 14 005 aircraft on the South African Aircraft Register. In terms of conventional aircraft, the highest growth was witnessed in the helicopter category with an increase of 4.9%, followed by turbojets with 2.6%. A miniscule increase of 1.8% was also recorded in relation to piston engines. As expected, the number of remotely piloted aircraft systems continued to increase, recording almost 40%.

Table 03: Aircraft type: three-year comparison

31 March 2017 31 March 2018 31 March 2019 % growth between 2018 and 2019

Total 12 982 13 381 14 005 4,6%

Aircraft type statistics: three-year comparison

Piston engines31 Mar 2017 3 80431 Mar 2018 3 82331 Mar 2019 3 893

% growth between 2018

and 20191.8%

Turboprop31 Mar 2017 53431 Mar 2018 55231 Mar 2019 685


and 201924%

Turbojet31 Mar 2017 52231 Mar 2018 52131 Mar 2019 535


and 20192.6%

Helicopters 31 Mar 2017 1 31831 Mar 2018 1 35731 Mar 2019 1 424


and 20194.9%

Recreational31 Mar 2017 6 28731 Mar 2018 6 33231 Mar 2019 6 386


and 20190.8%

Remotely Piloted Aircraft Systems

31 Mar 2017 51731 Mar 2018 79631 Mar 2019 1 082


and 201935.9%




ReviewofTypeandNon-TypeCertifiedAircraft

Aeroplanes consist of two (2) categories: Type Certified Aircraft (TCA) and Non-Type-Certified Aircraft (NTCA). NTCA are regarded as experimental aircraft. TCA are typically used for commercial activities, are regulated under stricter conditions and require a more intense approval process.

On the other hand, NTCAs are given what is referred to as an ‘authority to fly’. The maintenance of type certified aircraft is strictly controlled and is regulated through aircraft maintenance organisations, whereas maintenance matters regarding non-type certified aircraft are less stringent. In order to monitor trends, the SACAA keeps a register and statistics, as outlined in the next table, in relation to these two types of aeroplanes.

Table 04: Type certified versus Non-Type Certified aircraft: seven-year comparison

Type Certified Aircraft versus Non-Type Certified Aircraft: seven-year comparison

Type Certified Aircraft Non-Type Certified Aircraft % of Type CertifiedTotal Number of Aircraft

31 March

201331 March

201431 March

201531 March

201631 March

201731 March

201831 March

2019

5 9145 88911 80350.1%

6 0536 10612 15949.8%

6 1656 293

12 93647.7%

6 3187 338

13 65646.27%

5 9945 99211 98650.0%

6 1266 203

12 58948.7%

6 2537 128

13 38146.7%

Legislation and regulation developments

Amendment of the Civil Aviation ActThe Bill was tabled at the National Economic Development and Labour Council (NEDLAC) for consideration and approval. NEDLAC formed a Task Team to scrutinise the Bill in depth. The Task Team met on 11 July and on 3 August 2017. In the meetings, the Task Team reviewed all the provisions of the Bill and made some changes in certain provisions.

One of the substantive changes relate to the change of the title of the ‘DCA’ to that of the ‘CEO’. The Task Team had a problem with this change on the basis that, in the South African context, a CEO reports fully to a Board on all the operations of the organisation. In the SACAA’s case, however, the DCA reports to the Minister on aviation safety and security matters. As a result of this, they proposed reverting to the title of ‘Commissioner of Civil Aviation’.

The other change is the insertion of a provision that requires the SACAA/DoT to promulgate levies and charges at least three or four months before the date of it coming into operation. This provision was once included in the Civil Aviation Regulations but was later removed. The business segment of NEDLAC required that it be inserted in the Act, especially because the recently drafted Air Traffic Navigation Services (ATNS) and Airports Company of South Africa (ACSA) Acts contain a similar provision.

The SACAA was advised that the Bill has been introduced to the National Assembly in Parliament for consideration.




Promulgated Civil Aviation RegulationsDuring the reporting period, the following Civil Aviation Regulations (CAR) were promulgated.

• The Nineteenth Amendment of the Civil Aviation Regulations, which contained proposals approved by the Civil Aviation Regulations Committee (CARcom) in its meetings of September 2017, November 2017 and February 2018, was approved by the Minister and was promulgated and published in the Gazette on 21 September 2018. The effective operational date of this Amendment was 21 October 2018.

• The Twentieth Amendment of the Civil Aviation Regulations, which contained proposals approved by CARCom in its meetings of September 2018 and November 2018, was approved by the Minister and was promulgated and published in the Gazette on 31 March 2019. The effective operational date of this Amendment was 01 May 2019.

In addition, the following Civil Aviation Technical Standards (CATS) were promulgated during the reporting period.

• Amendment of Civil Aviation Technical Standards (SA-CATS 1/2018) relating to Part 47,61,66,67,141 and 171 were approved by the DCA and were promulgated on 01 March 2018 and published on the SACAA website.

• Amendment of Civil Aviation Technical Standards (SA-CATS 2/2018) relating to Parts, 61,67,121,127,135,139,171 and 178 were approved by the DCA and were promulgated on 21 October 2018 and published on the SACAA website.

• Amendment of Civil Aviation Technical Standards (SA-CATS 3/2018) relating to Parts, 61,67,93,121,127,128,135,145, 171 and 172 were approved by the DCA and were promulgated on 06 December 2018 and published on the SACAA website.

In relation to punitive measures against individuals and operators that did not comply with rules, there were:

Counselling Letters 11Warning Letters 16Penalties 38Suspensions 18Remedial Training 4Revocations 1Cancellations 2Aerodrome Level Licence Downgrade 1Aircraft Grounding 20

These punitive actions were taken against all types of licence holders including: Cabin Crew, Aviation Training Organisation, Private Pilot Licence holder, Student Pilot Licence holder, Commercial Pilot licence holder, Remote Piloted Aircraft System operators, Airline Transport licence holder, National Pilot Licence holder, Air Operator Certificate licence holders, Aviation Training Instructor, Helipad operator, as well as Aerodrome Operators.

Strategic outcome-oriented goals In compliance with the National Treasury guidelines on the development of strategies and annual performance plans for Schedule 3A entities, the organisation conducted a situational analysis exercise comprising a SWOT (strengths, weaknesses, opportunities and threats), a PESTLE (political, economic, social, technological, legal and environmental) and stakeholder analyses to ensure relevance. The result was a slight adjustment of the organisational goals, and a significant adjustment of objectives and targets. It was hoped that these changes would escalate the pace of service delivery.

In revising the strategy and developing the 2018/2019 Annual Performance Plan, the SACAA ensured alignment to, and support of the National Development Plan and Department of Transport outcomes. Cognisance was also given to the national priorities as articulated in various government platforms such as the State of the Nation Address by the President of the Republic and the Nine-Point Plan. Even though not all the aspects of these interventions apply to the SACAA environment, ongoing progress reports are shared with the shareholder where applicable.

The SACAA’s 2018/2019 goals were as follows: 1. Regulate the aviation industry effectively and efficiently;2. Increase the national footprint of regulatory services;3. Secure financial sustainability;4. Effective stakeholder management and regional

cooperation;5. Improve the client service experience;6. Drive organisational system innovation; and7. Enhance human capital and accelerate transformation.

Performance InformationAs at the end of March 2019, the SACAA’s Performance Information for the period 01 April 2018 – 31 March 2019 against the set objectives was 100%. This is subject to audit by the Auditor General.

Table 05: Punitive measures against non-compliance




Per

form

ance

Info

rmat

ion

As

at th

e en

d of

Mar

ch 2

019,

the

SA

CA

A’s

Per

form

ance

Inf

orm

atio

n fo

r th

e pe

riod

01 A

pril

2018

– 3

1 M

arch

201

9 ag

ains

t the

set

obj

ectiv

es w

as 1

00%

.

Ach

ieve

dIn

Pro

gres

sN

ot A

chie

ved

Not

App

licab

len/

a

No

Strategic Objective

Annual Target

Performance Indicators

Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Actual

Status

1Ac

hiev

e a

step

-cha

nge

in re

gula

ting

Avia

tion

Safe

ty a

nd

Secu

rity.

Impl

emen

t 80

% o

f the

SA

CAA

sp

ecifi

c U

SOAP

C

MA

CAP

an

d re

port

to

ExC

o.

SAC

AA

spec

ific

USO

AP C

MA

CAP

clo

sed

and

appr

oved

by

ExC

o.

Impl

emen

t 20

% o

f U

SOAP

C

MA

CAP

an

d re

port

to

ExC

o.

The

CAP

ha

s be

en

deve

lope

d an

d 27

% o

f th

e C

AP is

cl

osed

as

verifi

ed b

y IC

S.

Impl

emen

t 40

% o

f U

SOAP

C

MA

CAP

an

d re

port

to

ExC

o.

CAP

clo

sure

is

cur

rent

ly

at 3

1% a

s ve

rified

by

ICS.

Impl

emen

t 60

% o

f U

SOAP

C

MA

CAP

an

d re

port

to

ExC

o.

The

USO

AP

CAP

im

plem

enta

tion

stat

us is

cu

rrent

ly a

t 60%

as

at t

he e

nd

of D

ecem

ber

2018

. A re

port

was

sub

mitt

ed

to E

xCo.

Impl

emen

t 80

% o

f U

SOAP

C

MA

CAP

an

d re

port

to

ExC

o.

The

clos

ure

of th

e SA

CAA

sp

ecifi

c C

orre

ctiv

e Ac

tion

Plan

(C

AP) w

as

at 8

4.62

%

by th

e en

d of

Mar

ch

2019

as

verifi

ed b

y th

e SA

CAA

ICAO

C

ompl

ianc

e Se

ctio

n (IC

S). T

he

targ

et w

as

exce

eded

by

4.62

%. T

he

repo

rt w

as

subm

itted

an

d ap

prov

ed

by E

xCo.

84.6

2% o

f th

e C

AP

was

ac

hiev

ed

by th

e en

d of

the

FY. A

re

port

was

su

bmitt

ed to

an

d ap

prov

ed

by E

xCo.

Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

Tabl

e 06

: Per

form

ance

info

rmat

ion

for t

he p

erio

d of

01

Apr

il 20

18 -

31 M

arch

201

9




No

Strategic Objective

Annual Target


Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Status

2Ac

hiev

e a

step

-cha

nge

in re

gula

ting

Avia

tion

Safe

ty a

nd

Secu

rity.

Dev

elop

a

Peer

As

sess

men

t U

SAP

CM

A C

orre

ctiv

e Ac

tion

Plan

(CAP

) fo

r ExC

o ap

prov

al.

ExC

o ap

prov

ed

Uni

vers

al

Secu

rity

Audi

t Pr

ogra

mm

e (U

SAP)

CAP

ba

sed

on P

eer

Asse

ssm

ent

Rep

ort.

Stat

e of

R

eadi

ness

re

port

base

d on

inte

rnal

as

sess

men

t su

bmitt

ed to

Ex

Co.

The

read

ines

s re

port

was

su

bmitt

ed a

nd

appr

oved

by

ExC

o.

Und

ergo

th

e U

SAP

CM

A Pe

er

Asse

ssm

ent.

The

orga

nisa

tion

enga

ged

the

ESAF

offi

ce

requ

estin

g IC

AO

accr

edite

d au

dito

rs

to c

ondu

ct

the

Peer

As

sess

men

t. Th

e Pe

er

Asse

ssm

ent

will

now

be

unde

rtake

n in

Q3.

Dev

elop

a

draf

t U

SAP

Peer

As

sess

men

t C

AP a

nd

subm

it to

Ex

Co

for

com

men

ts.

The

self-

asse

ssm

ent

CAP

im

plem

enta

tion

is p

rogr

essi

ng

wel

l. Th

e Pe

er

Asse

ssm

ent

did

not t

ake

plac

e in

Q3.

A

repo

rt on

th

e pr

ogre

ss

of th

e C

AP

and

feed

back

on

the

Peer

As

sess

men

t w

as s

ubm

itted

to

ExC

o.

Subm

it Fi

nal

USA

P C

AP

for E

xCo

appr

oval

.

The

USA

P C

MA

Peer

As

sess

men

t w

as

com

plet

ed in

th

e fin

al w

eek

of F

ebru

ary

2019

and

a

CAP

was

su

bmitt

ed

to E

xCo

for

appr

oval

. Ex

Co

appr

oved

the

CAP

.

The

Pee

r A

sses

smen

t C

AP

was

co

mpl

eted

an

d ap

prov

ed

by E

xCo

on

28 M

arch

20

19.

3Ac

hiev

e a

step

-cha

nge

in re

gula

ting

Avia

tion

Safe

ty a

nd

Secu

rity.

Impl

emen

t 90

% o

f Ph

ase

1 Ex

amin

atio

ns

proj

ect p

lan

and

repo

rt to

Ex

Co.

ExC

o ap

prov

ed

Exam

inat

ions

pr

ojec

t pla

n im

-pl

emen

tatio

n.

Impl

emen

t 20

% o

f the

Ex

amin

atio

ns

proj

ect p

lan

and

repo

rt to

Ex

Co.

Proj

ect P

lan

is u

pdat

ed

and

20%

is

impl

emen

ted.

Impl

emen

t 40

% o

f the

Ex

amin

atio

ns

proj

ect p

lan

and

repo

rt to

Ex

Co.

40%

of t

he

Exam

inat

ions

pr

ojec

t pla

n w

as a

chie

ved

in Q

2.

Impl

emen

t 60

% o

f the

ap

prov

ed

Exam

inat

ions

pr

ojec

t pla

n an

d re

port

to

ExC

o.

60%

of t

he

exam

inat

ions

pr

ojec

t pla

n ha

s be

en

achi

eved

in

this

per

iod

and

the

repo

rt w

as

subm

itted

to

ExC

o.

Impl

emen

t 90

% o

f the

ap

prov

ed

Exa

min

atio

ns

proj

ect p

lan

and

repo

rt to

E

xCo.

100%

of

the

Phas

e 1

exam

inat

ions

pr

ojec

t pl

an w

as

impl

emen

ted

by th

e en

d of

th

e fin

ancia

l ye

ar a

nd a

clo

se-o

ut

repo

rt w

as

subm

itted

to

and

appr

oved

by

ExC

o.

100%

of t

he

Exa

min

atio

ns

proj

ect p

lan

actio

ns w

ere

achi

eved

by

the

end

of

the

finan

cial

ye

ar.

A re

port

was

subm

itted

and

appr

oved

by E

xCo.

Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

| C

oN

TiN

ued




No

Strategic Objective

Annual Target


Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Status

4Ac

hiev

e a

step

-cha

nge

in re

gula

ting

Avia

tion

Safe

ty a

nd

Secu

rity.

Dev

elop

a

busi

ness

ca

se fo

r R

PAS

O

pera

tions

M

onito

ring

Syst

ems.

ExC

o ap

prov

ed

busi

ness

cas

e fo

r RPA

S

Ope

ratio

ns

Mon

itorin

g Sy

stem

s.

Con

duct

In

dust

ry

cons

ulta

tions

an

d re

port

to

ExC

o.

Con

sulta

tion

on th

e R

PAS

O

pera

tions

M

onito

ring

Syst

em to

ok

plac

e du

ring

the

quar

ter

and

the

repo

rt w

as a

ppro

ved

by E

xCo.

Con

duct

In

dust

ry

cons

ulta

tions

an

d re

port

to

ExC

o.

Indu

stry

co

nsul

tatio

n w

as

cond

ucte

d du

ring

the

quar

ter a

s re

quire

d.

Dev

elop

dra

ft bu

sine

ss

case

and

su

bmit

to

ExC

o fo

r co

mm

ents

.

A dr

aft R

PAS

bu

sine

ss c

ase

was

sub

mitt

ed

to E

xCo

and

was

app

rove

d.

Subm

it Fi

nal

busi

ness

ca

se to

Ex

Co

for

appr

oval

.

The

final

R

PAS

O

pera

tions

M

onito

ring

Syst

em

Busi

ness

ca

se w

as

pres

ente

d to

ExC

o an

d w

as

appr

oved

.

The

RPA

S

Ope

ratio

ns

Mon

itorin

g S

yste

m

busi

ness

ca

se w

as

deve

lope

d an

d ap

prov

ed

by E

xCo

by

the

end

of

the

FY.

5Ac

hiev

e a

step

-cha

nge

in re

gula

ting

Avia

tion

Safe

ty a

nd

Secu

rity.

Dev

elop

im

prov

ed

Avia

tion

Pers

onne

l Li

cenc

ing

Appr

oach

an

d su

bmit

to E

xco

for

appr

oval

.

Impr

oved

Pe

rson

nel

Lice

nsin

g Ap

proa

ch

appr

oved

by

ExC

o.

Dev

elop

fir

st d

raft

of

Impr

oved

Pe

rson

nel

Lice

nsin

g Ap

proa

ch.

The

draf

t im

prov

ed

Lice

nsin

g Ap

proa

ch

was

su

bmitt

ed to

Ex

Co

and

was

app

rove

d as

a fi

rst d

raft.

Con

duct

co

nsul

tatio

ns

with

inte

rnal

an

d ex

tern

al

stak

ehol

ders

on

the

draf

t Im

prov

ed

Pers

onne

l Li

cens

ing

appr

oach

an

d re

port

to

ExC

o.

Inte

rnal

and

ex

tern

al

cons

ulta

tions

ha

ve b

een

cond

ucte

d as

re

quire

d.

Subm

it se

cond

dr

aft o

f the

im

prov

ed

Pers

onne

l Li

cens

ing

appr

oach

to

ExC

o fo

r co

mm

ents

.

The

Pers

onne

l Li

cens

ing

Appr

oach

se

cond

dra

ft w

as s

ubm

itted

to

ExC

o an

d w

as a

ppro

ved.

Subm

it fin

al

Impr

oved

Pe

rson

nel

Lice

nsin

g ap

proa

ch

to E

xCo

for

appr

oval

.

Impr

oved

Pe

rson

nel

Lice

nsin

g Ap

proa

ch

was

co

mpl

eted

an

d th

e sa

me

was

pr

esen

ted

to E

xCo

and

was

app

rove

d du

ring

the

28

Mar

ch 2

019

ExC

o.

The

Avia

tion

Per

sonn

el

Lice

ncin

g A

ppro

ach

repo

rt w

as

deve

lope

d an

d su

bmitt

ed

to E

xCo.

E

xCo

appr

oved

th

e re

port.

Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

| C

oN

TiN

ued




Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

| C

oN

TiN

ued

No

Strategic Objective

Annual Target


Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Status

6R

evis

e an

d Im

plem

ent

C-F

AR

P an

d al

ign

it to

in

tern

atio

nal

best

pr

actic

e.

100%

im

plem

enta

tion

of C

-FA

RP

and

repo

rt to

ExC

o

Fully

im

plem

ente

d C

-FA

RP.

Rev

ise

year

3

C-F

ARP

plan

and

su

bmit

to

ExC

o fo

r ap

prov

al.

The

year

3

targ

ets

have

be

en re

vise

d an

d ap

prov

ed

by E

xCo.

Impl

emen

t 50

%

prog

ress

of

C-F

AR

P an

d re

port

to E

xCo.

All

the

Qua

rter

2 (5

0%)

targ

ets

have

be

en m

et a

s re

porte

d.

Impl

emen

t 75

%

prog

ress

of

C-F

AR

P an

d re

port

to E

xCo.

All

quar

ter 3

ta

rget

s in

the

CFA

RP

wer

e im

plem

ente

d an

d a

repo

rt w

as s

ubm

itted

to

ExC

o.

100%

co

mpl

etio

n of

C

-FA

RP.

S

ubm

it C

-FA

RP

Clo

sing

R

epor

t to

ExC

o fo

r ap

prov

al.

100%

of

the

C-F

AR

P ta

rget

s w

ere

met

an

d a

final

re

port

was

ap

prov

ed

by E

xCo.

100%

of

the

C-F

AR

P im

plem

enta

tion

plan

was

ac

hiev

ed in

fu

ll by

the

end

of th

e FY

. Th

e cl

ose

out

repo

rt w

as

appr

oved

by

ExC

o.

7E

stab

lish

a pl

atfo

rm

to m

anag

e sa

fety

risk

.

Impl

emen

t 10

0% o

f Pha

se

1 ap

prov

ed

Saf

ety

Dat

a A

naly

sis

proj

ect

plan

and

repo

rt to

ExC

o.

Pha

se 1

of

Saf

ety

Dat

a A

naly

sis

proj

ect

impl

emen

tatio

n co

mpl

eted

.

Dev

elop

S

afet

y D

ata

Ana

lysi

s pr

ojec

t pla

n fo

r app

rova

l by

ExC

o.

Dev

elop

men

t of

the

Pro

ject

P

lan

was

co

mpl

eted

and

ap

prov

ed b

y E

xCo.

Impl

emen

t 50

% o

f P

hase

1

Saf

ety

Dat

a A

naly

sis

proj

ect p

lan

and

repo

rt to

ExC

o.

50%

of

the

proj

ect

plan

was

im

plem

ente

d in

Q2.

Impl

emen

t 75

% o

f P

hase

1

Saf

ety

Dat

a A

naly

sis

proj

ect p

lan

and

repo

rt to

ExC

o.

The

Saf

ety

Dat

a A

naly

sis

prog

ress

repo

rt w

hich

sho

wed

th

e 75

%

impl

emen

tatio

n of

the

proj

ect

was

sub

mitt

ed

to a

nd

appr

oved

by

ExC

o.

Impl

emen

t 10

0% o

f P

hase

1

Saf

ety

Dat

a A

naly

sis

proj

ect

plan

and

re

port

to

ExC

o.

100%

of

the

Pha

se

1 S

afet

y D

ata

Ana

lysi

s pr

ojec

t pl

an

targ

ets

wer

e co

mpl

eted

an

d a

clos

e ou

t re

port

was

su

bmitt

ed

to a

nd

appr

oved

by

ExC

o.

100%

of t

he

Saf

ety

Dat

a A

naly

sis

proj

ect

plan

was

im

plem

ente

d an

d a

repo

rt w

as a

ppro

ved

by E

xCo

on 2

8 M

arch

201

9.




Strategic Objective

Annual Target

Annual Actual

Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Annu

al

Perfo

rman

ce

Plan

R (T

)R

(A)

S (T

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

Ann

ual

Stat

us

Air

Traf

fic

Ser

vice

s29

3029

289

98

107

610

37

87

86

65

7

Aer

odro

me

Lice

nce

Insp

ectio

ns &

S

urve

illan

ce

131

134

1424

30

429

745

049

130

532

8

265

248

CN

S0

053

640

150

26

015

015

010

013

013

010

Avia

tion

Env

ironm

enta

l P

rote

ctio

n0

012

140

30

30

40

60

20

20

30

3

Tota

l MO

SP

Act

iviti

es16

016

410

813

039

3137

46

5225

5925

3725

39

3132

2729

28

Perf

orm

ance

Indi

cato

r – a

chie

ve a

min

imum

of 9

5% a

gain

st a

nnua

l tar

get

Tota

l MO

SP A

chie

ved

= 11

0% a

gain

st a

targ

et o

f 95%

No

Strategic Objective

Annual Target


Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Stauts

8Es

tabl

ish

a pl

atfo

rm

to m

anag

e se

curit

y ris

k.

Impl

emen

t 10

0% P

hase

1

appr

oved

Se

curit

y D

ata

Anal

ysis

pr

ojec

t pla

n an

d re

port

to

ExC

o.

Phas

e 1

of

Secu

rity

Dat

a An

alys

is p

roje

ct

impl

emen

tatio

n co

mpl

eted

.

Dev

elop

Se

curit

y D

ata

Anal

ysis

pr

ojec

t pla

n fo

r app

rova

l by

ExC

o.

Proj

ect p

lan

subm

itted

to

ExC

o an

d w

as

appr

oved

.

Impl

emen

t 50%

of

Pha

se 1

Se

curit

y D

ata

Anal

ysis

pro

ject

pl

an a

nd re

port

to E

xCo.

Impl

emen

tatio

n of

Pha

se 1

has

co

mm

ence

d;

how

ever

, the

ta

rget

has

not

be

en m

et.

Impl

emen

t 75

% o

f Pha

se

1 Se

curit

y D

ata

Anal

ysis

pr

ojec

t pla

n an

d re

port

to

ExC

o.

The

Secu

rity

Dat

a An

alys

is

prog

ress

repo

rt w

hich

sho

wed

th

e 75

%

impl

emen

tatio

n of

the

proj

ect

was

sub

mitt

ed to

an

d ap

prov

ed b

y Ex

Co.

Impl

emen

t 10

0% o

f Ph

ase

1 Se

curit

y D

ata

Anal

ysis

pr

ojec

t pla

n an

d re

port

to

ExC

o.

All p

lann

ed

actio

ns in

the

Secu

rity

Dat

a An

alys

is

proj

ect

plan

wer

e co

mpl

eted

by

the

end

of

the

finan

cial

ye

ar.

A re

port

was

su

bmitt

ed

to a

nd

appr

oved

by

ExC

o.

100%

of

the

Sec

urity

D

ata

Ana

lysi

s pr

ojec

t pl

an w

as

impl

emen

ted

and

a re

port

was

su

bmitt

ed

to a

nd

appr

oved

by

ExC

o.

9. M

aste

r Ove

rsig

ht a

nd S

urve

illan

ce P

lan

– Av

iatio

n In

fras

truc

ture

Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

| C

oN

TiN

ued




10. M

aste

r Ove

rsig

ht a

nd S

urve

illan

ce P

lan

- Avi

atio

n Sa

fety

Ope

ratio

ns

Strategic Objective

Annual Target

Annual Actual

Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Annu

al

Perfo

rman

ce

Plan

R (T

)R

(A)

S (T

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

Ann

ual

Stat

us

Airc

raft

Mai

nten

ance

O

rgan

isat

ion

494

494

9911

612

425

127

2512

425

130

2712

325

129

1812

324

108

46

Man

ufac

turin

g O

rgan

isat

ion

1919

412

51

52

51

64

41

53

51

33

Air

Ope

rato

r C

ertifi

cate

H

olde

rs23

819

248

8760

1237

3360

1265

3658

1248

1760

1242

1

Avia

tion

Trai

ning

O

rgan

isat

ions

271

7754

199

6814

4550

6814

1568

6712

1451

6814

330

RPA

S O

pera

tor

Cer

tifica

te

Hol

ders

1728

1719

44

52

55

8 5

44

1012

44

50

Flig

ht

Sim

ulat

or

Trai

ning

D

evic

e

122

129

250

316

280

317

35

0 29

613

031

653

0

Airp

orts

(A

viat

ion

Med

icin

e)0

013

130

30

30

40

40

30

30

30

3

Des

ign

Org

anis

atio

ns14

143

114

14

34

15

32

03

24

12

3

Tota

l - M

OSP

A

ctiv

ities

1 17

595

326

345

729

666

251

118

297

6926

414

728

763

222

106

295

6521

686

Perf

orm

ance

Indi

cato

r – a

chie

ve a

min

imum

of 9

5% a

gain

st a

nnua

l tar

get

Tota

l MO

SP A

chie

ved

= 98

% a

gain

st a

targ

et o

f 95%

Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

| C

oN

TiN

ued




Strategic Objective

Annual Target

Annual Actual

Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Annu

al

Perfo

rman

ce

Plan

R (T

)R

(A)

S (T

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

R (T

)S

(T)

R (A

)S

(A)

Ann

ual

Stat

us

Airp

orts

and

A

irlin

es31

2722

423

05

625

5510

546

6311

4911

495

595

63

Reg

ulat

ed

Age

nts

and

Kno

wn

Con

sign

ors

167

145

210

256

769

6814

5147

4145

1582

798

2572

2999

Dan

gero

us

Goo

ds S

afet

y O

vers

ight

174

202

246

235

4569

4282

4361

4157

4064

4961

4652

7035

Trai

ning

O

rgan

isat

ions

2818

4612

94

168

353

145

273

123

3018

42

37

Tota

l - M

OSP

A

ctiv

ities

400

392

726

850

130

156

123

186

107

176

9319

269

207

7023

894

187

106

234

Perf

orm

ance

Indi

cato

r – a

chie

ve a

min

imum

of 9

5% a

gain

st a

nnua

l tar

get

Tota

l MO

SP a

chie

ved

= 11

0% a

gain

st a

targ

et o

f 95%

11. M

aste

r Ove

rsig

ht a

nd S

urve

illan

ce P

lan

- Avi

atio

n Se

curit

y

Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

| C

oN

TiN

ued




No

Strategic Objective

Annual Target


Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Status

12E

stab

lish

optim

um

acce

ss to

re

gula

tory

se

rvic

es.

Impl

emen

t 10

0% o

f Pha

se

1 D

ecen

tralis

a-tio

n bu

sines

s ca

se re

com

-m

enda

tions

an

d re

port

to

ExC

o.

Impl

emen

t Ph

ase

1 of

D

ecen

-tra

lisat

ion

proj

ect.

Impl

emen

t 25

% o

f De-

cent

ralis

atio

n bu

sine

ss c

ase

reco

mm

en-

datio

ns a

nd

repo

rt to

ExC

o qu

arte

rly.

Onl

y 10

% o

f th

e D

ecen

-tra

lisat

ion

busi

ness

cas

e w

as c

om-

plet

ed d

urin

g th

e re

porti

ng

perio

d.

Impl

emen

t 50

% o

f De-

cent

ralis

atio

n bu

sine

ss c

ase

reco

mm

en-

datio

ns a

nd

repo

rt to

ExC

o qu

arte

rly.

30%

of

the

proj

ect

activ

ities

ha

ve b

een

com

plet

ed.

The

proj

ect

is ru

nnin

g be

hind

sc

hedu

le.

Impl

emen

t 75

% o

f De-

cent

ralis

atio

n bu

sine

ss c

ase

reco

mm

en-

datio

ns a

nd

repo

rt to

ExC

o qu

arte

rly.

The

Dec

en-

tralis

atio

n pr

ogre

ss

repo

rt w

as

subm

itted

to

ExC

o an

d th

e 75

%

prog

ress

was

ap

prov

ed.

Impl

emen

t 10

0% o

f D

ecen

tralis

a-tio

n bu

sine

ss

case

reco

m-

men

datio

ns

and

repo

rt to

ExC

o qu

arte

rly.

The

Dec

entra

l-is

atio

n pr

ojec

t ha

s be

en

impl

emen

ted

in fu

ll an

d th

eref

ore

100%

of

the

targ

ets

wer

e m

et. A

cl

ose-

out r

epor

t w

as s

ubm

itted

fo

r DC

A’s

sign

atur

e an

d th

e sa

me

was

su

bmitt

ed to

an

d ap

prov

ed

by E

xCo.

100%

of t

he

Pha

se 1

D

ecen

tralis

a-tio

n bu

sine

ss

case

pro

ject

pl

an w

as

impl

emen

ted.

A

clos

e-ou

t re

port

was

su

bmitt

ed to

an

d ap

prov

ed

by E

xCo.

13D

iver

sify

an

d ex

pand

so

urce

s of

re

venu

e.

Dev

elop

an

nual

fu

ndin

g m

odel

pro

ject

pl

an a

nd

impl

emen

t 90

% o

f the

an

nual

pla

n an

d re

port

to

ExC

o.

90%

Fun

d-in

g M

odel

P

roje

ct

impl

e-m

enta

tion

com

plet

ed.

Dev

elop

th

e Fu

ndin

g M

odel

pro

ject

pl

an fo

r ap

prov

al b

y E

xCo.

The

plan

was

de

velo

ped

and

appr

oved

by

ExC

o.

Impl

emen

t 20

% F

undi

ng

Mod

el p

roje

ct

plan

and

re

port

to

ExC

o.

SA

CA

A ha

s ex

ceed

ed

the

targ

et fo

r th

e se

cond

qu

arte

r and

ha

s ac

hiev

ed

39%

.

Impl

emen

t 60

% F

undi

ng

Mod

el p

roje

ct

plan

and

re

port

to

ExC

o.

The

Qua

rter

3 ta

rget

s fo

r th

e fu

ndin

g m

odel

wer

e ap

prov

ed b

y E

xCo

and

a re

port

was

su

bmitt

ed

as p

er th

e qu

arte

rly

targ

et.

Impl

emen

t 90

%

Fund

ing

Mod

el

proj

ect p

lan

and

repo

rt to

E

xCo.

95%

of t

he

targ

ets

in th

e fu

ndin

g m

odel

pr

ojec

t pla

n w

ere

achi

eved

by

the

end

of

Mar

ch 2

019.

A

repo

rt w

as

subm

itted

and

ap

prov

ed b

y E

xCo.

The

fund

ing

mod

el p

roje

ct

plan

was

de-

velo

ped

and

appr

oved

by

ExC

o in

Q1.

The

or

gani

satio

n ac

hiev

ed

95%

in th

e im

plem

en-

tatio

n of

th

e pr

ojec

t pl

an. A

fina

l re

port

was

ap

prov

ed b

y E

xCo.

14E

stab

lish

a cu

lture

of

pru

dent

fin

anci

al

man

agem

ent.

Dev

elop

and

im

plem

ent a

n an

nual

cos

t co

ntai

nmen

t pl

an a

s pe

r N

T in

stru

ctio

n.

DC

A ap

-pr

oved

Cos

t C

onta

in-

men

t Pla

n.

Rev

ise

Cos

t C

onta

inm

ent

Pla

n fo

r ap

prov

al b

y th

e D

CA

.

Cos

t co

ntai

nmen

t pl

an w

as

revi

sed

and

appr

oved

by

the

DC

A.

Impl

emen

t 30

% o

f th

e co

st

cont

ainm

ent

plan

and

qu

arte

rly

repo

rt to

the

DC

A.

30%

of

NT

Cos

t co

ntai

nmen

t in

stru

ctio

ns

wer

e im

plem

ente

d an

d a

prog

ress

re

port

was

ap

prov

ed b

y th

e D

CA

.

Impl

emen

t 60

% o

f th

e co

st

cont

ainm

ent

plan

and

re

port

quar

terly

to

DC

A.

60%

of

NT

Cos

t co

ntai

nmen

t in

stru

ctio

ns

wer

e im

plem

ente

d an

d a

prog

ress

re

port

was

ap

prov

ed b

y th

e D

CA.

Impl

emen

t 80

% o

f th

e co

st

cont

ainm

ent

plan

and

re

port

quar

terly

to

the

DC

A.

88,8

% o

f th

e co

st

cont

ainm

ent

plan

bas

ed

on th

e N

T in

stru

ctio

ns

was

im

plem

ente

d an

d th

e re

port

was

app

rove

d by

the

DC

A.

A co

st

cont

ainm

ent

plan

was

ap

prov

ed b

y th

e D

CA

. Im

-pl

emen

tatio

n of

the

plan

w

as re

porte

d to

and

ap-

prov

ed b

y th

e D

CA

.

Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

| C

oN

TiN

ued




No

Strategic Objective

Annual Target


Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Status

15Im

prov

e st

akeh

olde

r en

gage

men

t.

Impl

emen

t 90

% o

f S

take

hold

er

Man

agem

ent

Pla

n (S

MP

) an

d re

port

to

ExC

o.

90%

SM

P Im

-pl

emen

tatio

n R

epor

t.

Rev

ise

SM

P an

d su

bmit

to E

xCo

for

appr

oval

.

The

revi

sed

SM

P fo

r 20

18/1

9 w

as

pres

ente

d to

ExC

o an

d w

as a

lso

appr

oved

.

Impl

emen

t 45

% o

f the

S

MP

and

repo

rt to

E

xCo.

The

orga

nisa

tion

achi

eved

58

% o

f the

ta

rget

s by

the

end

of Q

2.

Impl

emen

t 75

% o

f the

S

MP

and

repo

rt to

E

xCo.

The

SM

P im

plem

enta

tion

was

at 6

8%

by th

e en

d of

th

e qu

arte

r. A

repo

rt w

as

subm

itted

to

ExC

o.

Impl

emen

t 90

% o

f the

S

MP

and

repo

rt to

E

xCo.

97,3

% o

f th

e S

MP

targ

ets

wer

e ac

hiev

ed

succ

essf

ully.

E

xCo

appr

oved

th

e fin

al

repo

rt.

97, 3

% o

f the

S

take

hold

er

Man

agem

ent

Pla

n w

as

impl

emen

ted

and

a re

port

was

sub

mit-

ted

to a

nd

appr

oved

by

ExC

o.

16E

nhan

ce

regi

onal

co

oper

atio

n.

Dev

elop

a

Reg

iona

l C

oope

ratio

n S

trate

gy a

nd

Impl

emen

tatio

n P

lan

and

seek

Boa

rd

appr

oval

.

Boa

rd

appr

oved

R

egio

nal

Coo

pera

tion

Stra

tegy

and

Im

plem

enta

-tio

n P

lan.

Con

duct

di

agno

sis

of R

egio

nal

stak

ehol

ders

an

d re

port

prog

ress

to

ExC

o.

A R

egio

nal

Coo

pera

tion

Stra

tegy

di

agno

stic

re

port

was

de

velo

ped

and

subs

eque

ntly

ap

prov

ed b

y E

xCo.

Con

duct

in

tern

al a

nd

exte

rnal

co

nsul

tatio

ns

and

repo

rt pr

ogre

ss to

E

xCo.

Con

duct

in

tern

al a

nd

exte

rnal

co

nsul

tatio

ns

and

repo

rt pr

ogre

ss to

E

xCo.

Sub

mit

Fina

l R

egio

nal

Coo

pera

tion

Stra

tegy

and

Im

plem

en-

tatio

n P

lan

to B

oard

for

appr

oval

.

The

Reg

iona

l C

oope

ratio

n St

rate

gy a

nd

impl

emen

tatio

n pl

an w

as

appr

oved

the

Boar

d.

Sub

mit

Fina

l Re-

gion

al C

o-op

erat

ion

Stra

tegy

an

d Im

ple-

men

tatio

n P

lan

to

Boa

rd fo

r ap

prov

al.

The

Reg

iona

l C

oope

ratio

n S

trate

gy a

nd

impl

e-m

enta

tion

plan

was

ap

prov

ed

the

Boa

rd.

The

Reg

iona

l C

oope

ratio

n S

trate

gy a

nd

impl

emen

-ta

tion

plan

w

as d

evel

-op

ed a

nd

appr

oved

by

the

Boa

rd

on 2

6 M

arch

20

19.

17Im

prov

e cu

stom

ers’

se

rvic

e ex

perie

nce.

Rev

iew

and

Im

plem

ent

90%

of

Pha

se 2

of

the

Cha

nge

Man

agem

ent

Pro

gram

me

(CM

P) a

nd

repo

rt to

ExC

o.

EX

CO

ap

prov

ed

Cha

nged

M

anag

emen

t P

rogr

amm

e.

Rev

ise

the

Cha

nge

Man

agem

ent

Pro

gram

me

Impl

emen

-ta

tion

Pla

n fo

r ExC

o ap

prov

al.

Pha

se 2

of

the

CM

P w

as

deve

lope

d an

d su

bseq

uent

ly

appr

oved

by

ExC

o.

Impl

emen

t 40

% o

f the

C

MP

Pha

se

2 Im

plem

en-

tatio

n pl

an

and

repo

rt to

E

xCo.

The

orga

nisa

tion

achi

eved

31

, 25%

of

the

Cha

nge

Man

agem

ent

Pla

n de

liver

able

s in

Q2.

Impl

emen

t 60

% o

f the

C

MP

Pha

se

2 im

plem

en-

tatio

n pl

an

and

repo

rt to

E

xCo.

The

CR

M

Cha

nge

Man

agem

ent

Pro

gram

me

has

exce

eded

th

e ta

rget

by

2, 5

%. A

repo

rt w

as s

ubm

itted

to

ExC

o.

Impl

emen

t 90

% o

f th

e C

MP

Pha

se 2

Im

plem

en-

tatio

n pl

an

and

repo

rt to

ExC

o.

93,7

5% o

f th

e C

MP

targ

ets

have

bee

n ac

hiev

ed

and

a re

port

dem

onst

rat-

ing

this

is

was

sub

mit-

ted

to a

nd

appr

oved

by

ExC

o.

The

Pha

se

2 of

the

CM

P w

as

revi

ewed

and

ap

prov

ed

by E

xCo

in

quar

ter 1

. 93,

75

% o

f the

pr

ojec

t was

su

cces

sful

ly

Impl

emen

t-ed

. A re

port

was

sub

mit-

ted

to a

nd

appr

oved

by

ExC

o.18

Ach

ieve

in

tegr

ated

IC

T sy

stem

s.

Com

plet

e 10

0% E

BS

P

roje

ct p

lan

and

repo

rt pr

ogre

ss

quar

terly

to

ExC

o.

EB

S p

roje

ct

prog

ress

re

port

and

final

clo

seou

t re

port.

Impl

emen

t 85

% E

BS

pr

ojec

t pla

n an

d re

port

prog

ress

to

ExC

o.

EB

S Im

ple-

men

tatio

n cu

rren

tly a

t 92

%.

Impl

emen

t 90

% E

BS

pr

ojec

t pla

n an

d re

port

prog

ress

to

ExC

o.

As

at th

e en

d of

Sep

tem

ber

2018

the

proj

ect

was

97%

co

mpl

eted

.

Impl

emen

t 95

% E

BS

pr

ojec

t pla

n an

d re

port

prog

ress

to

ExC

o.

EB

S w

as a

t 99

% b

y th

e en

d of

the

quar

ter a

nd a

re

port

dem

on-

stra

ting

this

w

as s

ubm

itted

to

ExC

o an

d it

was

app

rove

d.

Impl

emen

t 10

0% o

f th

e E

BS

pr

ojec

t rol

l- ou

t pla

n an

d re

port

prog

ress

to

ExC

o.

100%

EB

S

impl

e-m

enta

tion

has

been

ac

hiev

ed.

Clo

seou

t re

port

was

su

bmitt

ed

to a

nd

appr

oved

by

ExC

o.

100%

of t

he

EB

S p

roje

ct

was

com

plet

-ed

. A c

lose

ou

t rep

ort

was

sub

mit-

ted

to a

nd

appr

oved

by

ExC

o.

Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

| C

oN

TiN

ued




No

Strategic Objective

Annual Target


Quarter 1 Target

Quarter 1 Actual

Quarter 2 Target

Quarter 2 Actual

Quarter 3 Target

Quarter 3 Actual

Quarter 4 Target

Quarter 4 Actual

Annual Status

Status

19A

chie

ve

inte

grat

ed IC

T sy

stem

s.

Dev

elop

E

xCo

appr

oved

E

lect

roni

c R

ecor

ds a

nd

Doc

umen

t M

anag

emen

t S

yste

m

busi

ness

ca

se.

ExC

o-ap

prov

ed

ER

DM

S

busi

ness

cas

e.

Con

duct

st

akeh

olde

r co

nsul

tatio

n on

bus

ines

s ca

se a

nd

repo

rt to

E

xCo.

ER

DM

S

stak

ehol

der

cons

ulta

tions

di

d no

t tak

e pl

ace

as

requ

ired.

Con

duct

S

take

hold

er

cons

ulta

tion

on b

usin

ess

case

and

re

port

to

ExC

o.

At l

east

2

stak

ehol

der

cons

ulta

tions

m

eetin

gs to

ok

plac

e du

ring

the

repo

rting

pe

riod

to

unde

rsta

nd

the

busi

ness

re

quire

men

ts

for E

RD

MS

.

Sub

mit

Dra

ft E

RD

MS

B

usin

ess

case

for

ExC

o co

m-

men

ts.

The

draf

t ER

DM

S

busi

ness

ca

se w

as

pres

ente

d to

Ex

Co

and

a re

port

was

su

bmitt

ed a

nd

appr

oved

by

ExC

o.

Sub

mit

Fi-

nal E

RD

MS

B

usin

ess

case

for

ExC

o ap

prov

al.

The

ER

DM

S

busi

ness

ca

se w

as

subm

itted

to

and

ap

prov

ed b

y E

xCo.

An

ER

DM

S

busi

ness

cas

e w

as d

evel

oped

, su

bmitt

ed a

nd

appr

oved

by

ExC

o.

20D

rive

a pe

rfor-

man

ce c

ultu

re.

Impl

emen

t 90

% H

R

Pla

n an

d re

port

to th

e H

RC

.

90%

HR

S

trate

gy

Impl

emen

tatio

n pl

an

deliv

erab

les

achi

eved

.

Impl

emen

t 25

% o

f the

H

R p

lan

and

repo

rt to

the

HR

C.

15 a

nd a

ha

lf ou

t of 1

7 ta

rget

s w

ere

achi

eved

by

the

end

of

Q1.

Impl

emen

t 50

% o

f the

H

R p

lan

and

repo

rt to

the

HR

C.

The

HR

pla

n ov

eral

l ann

ual

achi

evem

ent

to d

ate

is a

t 53

%.

Impl

emen

t 75

% o

f the

H

R p

lan

and

repo

rt to

the

HR

C.

The

HR

pla

n re

ache

d 94

%

impl

emen

ta-

tion

for t

he

quar

ter a

nd

a re

port

was

su

bmitt

ed to

E

xCo.

The

re

port

will

be

subm

itted

to

HR

C in

Jan

20

19.

Impl

emen

t 90

% o

f the

H

R p

lan

and

repo

rt to

the

HR

C.

At t

he e

nd o

f th

e fin

anci

al

year

the

impl

emen

-ta

tion

of th

e H

R p

lan

was

at

94.

7%.

The

targ

et

for t

he A

PP

has

been

m

et. E

xCo

appr

oved

the

repo

rt an

d th

e re

port

is

subm

itted

to

the

HR

C

on 1

5 A

pril

2019

.

As

at th

e en

d of

FY,

94,

7%

of

the

HR

pla

n w

as a

chie

ved.

A

repo

rt w

as a

p-pr

oved

by

ExC

o an

d H

RC

.

21A

ccel

erat

e tra

nsfo

rmat

ion.

Rev

iew

and

im

plem

ent

75%

of

Pha

se 1

B

-BB

EE

(T

rans

for-

mat

ion)

Pla

n al

igne

d to

th

e Tr

ansp

ort

sect

or c

odes

an

d re

port

to

ExC

o.

B-B

BE

E

plan

75%

im

plem

enta

tion.

Rev

iew

B

-BB

EE

P

lan

and

subm

it to

E

xCo

for

appr

oval

.

Rev

ised

B

-BB

EE

pla

n su

bmitt

ed to

E

xCo

was

ap

prov

ed.

Impl

emen

t 25

% o

f the

P

hase

1

B-B

BE

E p

lan

and

repo

rt to

E

xCo.

As

at th

e en

d of

the

seco

nd

quar

ter,

SA

CA

A ha

s ex

ceed

ed th

e ta

rget

of 2

5%

and

is c

urre

nt-

ly a

t 29.

6%

impl

emen

ta-

tion.

Impl

emen

t 50

% o

f the

P

hase

1

B-B

BE

E

plan

and

re

port

to

ExC

o.

The

B-BB

EE

plan

targ

et

was

not

met

as

44,

4%

w

as a

chie

ved

by th

e en

d of

th

e qu

arte

r ag

ains

t tar

get

of 5

0%.

A re

port

was

su

bmitt

ed a

nd

appr

oved

by

ExC

o.

Impl

emen

t 75

% o

f the

P

hase

1

B-B

BE

E

plan

and

re

port

to

ExC

o.

The

B-B

BE

E

impl

emen

-ta

tion

was

77

% b

y th

e en

d of

Mar

ch

2019

. ExC

o ap

prov

ed th

e fin

al re

port.

The

orga

nisa

-tio

n re

view

ed

the

B-B

BE

E

Pla

n an

d th

e pr

ojec

t pla

n w

as a

ppro

ved

by E

xCo.

The

im

plem

enta

tion

of th

e pr

ojec

t pl

an w

as a

t 77%

by

the

end

of

the

FY.

A re

port

was

app

rove

d by

ExC

o on

28

Mar

ch 2

019.

Perf

orm

ance

Info

rmat

ion

– 20

18/2

019

| C

oN

TiN

ued




The next graph delineates the SACAA’s organisational performance over the last eight financial years - from the 2011/2012 financial year through to the 2018/2019 reporting period. Notably, the SACAA has managed to attain a 100% performance for five (5) consecutive years.

Graph 02: Organisational performance comparison over an eight-year period

SACAA yearly performance comparison over an 8-year period

PREVIOUS YEARS CURRENT YEAR

100%

80%

60%

40%

20%

Perf

orm

ance

%

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2018/192017/18

74%

84%94%

100% 100% 100% 100%100%




Key organisational highlights and initiatives

The next table details some of the SACAA’s organisational highlights for the year ending 31 March 2019.

Global Aviation Gender SummitThe SACAA initiated and hosted the first-ever Global Aviation Gender Summit in collaboration with ICAO and UNESCO during South Africa’s National Women’s Month in August 2018. The purpose of the three (3) day event was to create a platform for the global aviation community and related industries to engage on the United Nation’s Sustainable Development Goal 5, which speaks to gender parity in the workplace. The Summit was also in support of ICAO’s A39-30 resolution to ensure that the civil aviation industry reaches a 50/50 parity in terms of women representation in senior leadership and professional positions. The event was hosted in Cape Town, South Africa and hosted, under one roof, international delegates from over 43 countries.ACT-CORSIA Initiative The SACAA, under the ICAO Action, Capacity-building and Training for the Carbon Offsetting and Reduction Scheme for International Aviation (ACT-CORSIA) Initiative and the ACT-CORSIA Buddy Partnerships with 6 SADC States, conducted the 1st Session of the ACT-CORSIA Buddy Partnerships Joint Implementation Training at Emperors Palace from 26 - 28 September 2018. The States that were trained during the 1st session were Botswana, Namibia and Zimbabwe. Subsequently training was provided to Lesotho, Zambia and Malawi.Celebration of 20 years of keeping you safe in the skyThe SACAA celebrated 20 years of existence on 18 October 2018. The celebration was attended by the former Minister of Transport, Dr Blade Nzimande, the former Deputy Minister, Ms Sindisiwe Chikunga, the SACAA Board, ExCo and employees. This was a celebration of 20 years since the establishment of the SACAA.Inaugural Civil Aviation Industry AwardsThe inaugural Civil Aviation Industry Awards, held in November 2018, was a major highlight for the SACAA. The awards were aimed at recognising deserving operators in the areas of aircraft owners, aviation safety, outstanding aviation personnel, aircraft maintenance organisations, etc. The event was well-received by the aviation industry and resulted in the SACAA receiving significant commendations from industry role-players.The closure of the ICAO USOAP CMA Corrective Action Plan The closure of the ICAO USOAP CMA Corrective Action Plan reached 84.62% in terms of the findings specific to the SACAA, which is above the target by over 4%.Completion of the Enterprise Business Systems (EBS)The EBS project has been successfully completed. All modules in the EMPIC-EAP system are now live and the system implementation is 100% complete, ready for utilisation.National Psychiatry ConferenceSACAA’s AvMed team, together with the Aeromedical Psychiatry, was invited to present at the National Psychiatry Conference hosted by the South African Society of Psychiatrists (SASOP). The purpose of the presentation was to highlight mental health challenges faced by the aviation industry and to create awareness of the ICAO SARPs together with the South African Civil Aviation Regulations’ expectations regarding the psychiatrists’ reports. The presentation also afforded the SACAA an opportunity to create awareness around the mental health issues and medication that is not compatible for pilots.Recreation Aviation Administration of South Africa (RAASA) During the year under review the process of integrating the Recreation Aviation Administration of South Africa (RAASA) functions into the SACAA was completed. The functions, previously the responsibility of RAASA, are now under the SACAA umbrella as at 1 April 2019. Aeronautical Information Publication (AIP)The AIP was placed on the SACAA website in PDF file format, thereby concluding the move away from paper-based publications. Updates will be posted in accordance with the AIP quarterly schedule and will greatly simplify the process for clients to remain updated with the latest version. Paper copies will still be available for clients who have not yet evolved.

Organisational highlights

Table 07: Organisational highlights




Review of SACAA programmes and activities Aircraft incidents and accidents

This particular section details the number of accidents recorded during the reporting period. In addition, a three-year comparison is outlined. This is crucial in measuring and gauging the presence or lack of effective oversight of civil aviation operations in a country.

The table below provides an outline of the categories of aircraft involved, as well as the type of activity being carried out by the aircraft at the time of the accident. It is crucial to note that unlike previous years, remotely piloted aircraft of all sizes, are also added to the list.

Table 08: Aircraft accidents per aircraft category

Aircraft category Commercial Private Training Unknown Total numberGlider 0 1 0 0 1Gyrocopter 0 2 1 0 3Type-Certified Aircraft (helicopter) 4 11 1 0 16Type-Certified Aircraft (fixed-wing) 4 23 6 0 33Non-Type-Certified Aircraft (fixed-wing) 2 18 4 0 24Non-Type-Certified Aircraft (helicopter) 2 2 0 0 4Parachute 0 0 0 0 0RPAS 2 2 0 0 4Unregistered 0 0 0 1 1Total 86

Accident per aircraft category - 01 April 2018 to 31 March 2019




Cumulative number of accidents reported: three-year comparisonA total of 83 aircraft and three (3) drone accidents were reported between 01 April 2018 and 31 March 2019, which indicates an increase of one (1) when compared to the same period in 2017/2018. The graph below indicates a three-year (financial year) comparison of accidents.

Apr 16 - Mar 17 10 6 3 4 7 3 10 3 7 6 4 9 72 Apr 17 - Mar 18 7 7 5 5 5 10 12 5 10 5 4 8 83 Apr 18 - Mar 19 8 10 10 4 2 6 8 15 3 5 11 4 86

35

30

25

20

15

10

5

0

Cum

ulat

ive

tota

l per

qua

rter

1st Quarter 2nd Quarter 4th QuarterTotal

3rd Quarter

19 19

28

14

20

12

20

27 26

1917

20

Graph 03: Number of aircraft accidents: a three-year comparison


Cumulative number of fatal accidents: three-year comparisonThe next graph indicates a three-year (financial year) comparison of the cumulative number of fatal accidents. A total of 15 fatal accidents were reported from 01 April 2018 to 31 March 2019, which indicates an increase of one (1) when compared with the 2017/2018 financial year.


7

8

6

5

4

3

2

1

0

Cum

ulat

ive

tota

l per

qua

rter


3rd Quarter

3 3 3

4

3 3

5 5

8

6

3

1


Graph 04: Number of fatal aircraft accidents: a three-year comparison




Cumulative number of fatalities: three-year comparisonA total of 20 fatalities were reported from 01 April 2018 to 31 March 2019, which indicates a decrease of one (1) when compared with the same period in 2017/2018. The next graph indicates a three-year (financial year) comparison of fatalities.


789

10

6543210C

umul

ativ

e to

tal p

er q

uart

er


3rd Quarter

34

5

9

45

87

910

6

1



14161820

1210

86420C

umul

ativ

e to

tal p

er q

uart

er


3rd Quarter

03

13

2

8 8

11

8

18

8

12

15


Graph 05: A three-year comparison of fatalities

Cumulative number of serious incidents: three-year comparisonA total of 54 serious incidents were reported between 01 April 2018 and 31 March 2019, which indicates an increase of 24 serious incidents when compared with the same period in the 2017/2018 financial year. There was also an increase of 32 when compared to the 2016/2017 financial year. The next graph indicates a three-year (financial year) comparison of serious incidents.

Graph 06: A three-year comparison of serious incidents

Strategy to overcome areas of underperformance The SACAA has achieved 100% against all targets set in its 2018/2019 Annual Performance Plan.




Strategic Objective

MOSP Annual Target

Q 1 Target

Q 1 Actual

Q 2 Target

Q 2 Actual

Q 3 Target

Q 3 Actual

Q 4 Target

Q 4 Actual

Status

Achi

eve

a st

ep-

chan

ge in

re

gula

ting

avia

tion

safe

tyan

d se

curit

y

Operations

Renew Target

Renew Actual

Surveillance Target

Surveillance Actual

RS

RS

RS

RS

RS

RS

RS

RS

Airc

raft

Mai

nten

ance

O

rgan

isat

ion

(AM

O)

494

494

9911

612

425

127

2512

425

130

2712

325

129

1812

324

108

46

App

rove

d M

anuf

actu

ring

Org

anis

atio

n (A

MO

RG

)

1919

412

51

52

51

64

41

53

51

33

Air

Ope

rato

r C

ertifi

cate

(AO

C)

238

192

4887

6012

3733

6012

6536

5812

4817

6012

421

Avia

tion

Trai

ning

O

rgan

isat

ion

(ATO

)27

177

5419

968

1445

5068

1415

6867

1214

5168

143

30

RPA

S O

pera

tors

C

ertifi

cate

(RO

C)

1728

1719

44

52

55

8 5

44

1012

44

50

Flig

ht S

imul

atio

n Tr

aini

ng D

evic

es

(FS

TD)

122

129

250

316

280

317

35

0 29

613

031

653

0

Airp

orts

(A

viat

ion

Med

icin

e)0

013

130

30

30

40

40

30

30

30

3

App

rove

d D

esig

n O

rgan

isat

ion

(AD

O)

1414

311

41

43

41

53

20

32

41

23

Tota

l MO

SP

Act

iviti

es1

175

953

263

457

296

6625

1 1

1829

769

264

147

287

6322

210

629

565

216

86

Avia

tion

Safe

ty O

pera

tions

MO

SP 2

018/

2019

Tabl

e 09

: Avi

atio

n S

afet

y O

pera

tions

MO

SP

2018

/201

9

Surv

eilla

nce

and

over

sigh

t aud

iting

act

iviti

es

The

next

few

tabl

es p

rovi

de a

com

preh

ensi

ve a

naly

sis

of th

e M

aste

r Ove

rsig

ht a

nd S

urve

llanc

e P

lan

(MO

SP

) act

iviti

es.




Notes on deviations ASo

Notes to the Scorecard: ASONumber ExplanationNote 1 Seventeen (17) additional surveillance inspections were conducted on the following organisations:

1. Mistral Aviation Services (Pty) Ltd2. Accolade Aviation3. Aero Natal (Pty) Ltd4. NAC Helicopters5. Sport Aviation6. Cemair (Pty) Ltd7. Denel Aviation8. Chopper Worx Maintenance (Pty) Ltd9. Mistral Aviation Services (Pty) Ltd10. Plennegy (Pty) Ltd11. Heli-Afrique12. SA Red Cross Air Mercy Service Nelspruit13. Zulu Aviation Africa Cc14. Gryphen Aerospace (Pty) Ltd15. Pilatus Pc-12 Centre16. Malilangwe (Pty) Ltd17. Nyeleti Technologies

Note 2 Eight (8) additional surveillance inspections were conducted on the following organisations:1. Rainbow Skyreach2. Jonker Sailplane3. Paramount Aerospace Systems4. Hansolt Optronics5. Omnipless6. Sport Plane Builders7. Aero Services8. Shadow Lite

Note 3 Seven (7) Air Operator Certificate audits could not be done due to the organisations being dormant.Note 4 Thirty-six (36) ATO’s audits could not be done due to the organisations being dormant. This led to the SACAA

(ASO) not being able to conduct both the renewal and surveillance audits/inspections on these organisations (72 inspections).

Note 5 Thirteen (13) additional inspections due to the certification of new organisations.Note 6 Annual Target met.Note 7 Target met as planned.Note 8 Eight (8) additional surveillance inspections were conducted on the following organisations:

1. Comporob CC2. Clifton Electronics3. Aero Services (Pty) Ltd4. Aerostruct Consulting CC5. Paramount6. Challenge Air CC7. Jonker Sailplane8. AME Aviation

Note 9 Although the number of renewal audits for the quarter was not met, significant progress has been made with surveillance audits. Except in instances where an approval holder surrenders their approval or opts not to renew, or where the approval is suspended, the division met the planned targets. In relation to surveillance audits, targets were exceeded and this was mainly due to a follow-up audit and surveillance audit of a newly-certified approval holder who was not part of the plan at the beginning of the financial year.

Table 10: Aviation Safety Operations MOSP 2018/2019 – deviation explanation




Strategic Objective

MOSP Annual Target

Q 1 Target

Q 1 Actual

Q 2 Target

Q 2 Actual

Q 3 Target

Q 3 Actual

Q 4 Target

Q 4 Actual

Status

Achi

eve

a st

ep-

chan

ge in

re

gula

ting

avia

tion

safe

ty a

nd

secu

rity

Operations

*Renewal Target

Renew Actual

** Surveillance

Surveillance Actual

RS

RS

RS

RS

RS

RS

RS

RS

Airp

orts

and

A

irlin

es31

2722

423

05

625

5510

546

6311

4911

495

595

63

Reg

ulat

ed

Age

nts

and

Kno

wn

Con

sign

ors

167

145

210

256

769

6814

5147

4145

1582

798

2572

2999

Dan

gero

us

Goo

ds S

afet

y O

vers

ight

174

202

246

235

4569

4282

4361

4157

4064

4961

4652

7035

Trai

ning

O

rgan

isat

ion

2818

4612

94

168

353

145

273

123

3018

42

37

Tota

l MO

SP

Act

iviti

es40

039

272

685

013

015

612

318

610

717

693

192

6920

770

238

9418

710

623

4

Avia

tion

Secu

rity

MO

SP 2

018/

2019

Tabl

e 11

: Avi

atio

n S

ecur

ity M

OS

P 20

18/2

019

Not

es o

n de

viat

ions

– A

viat

ion

Secu

rity

Not

es: A

viat

ion

Secu

rity

Airp

orts

and

Airl

ines

Rea

son

for n

ot m

eetin

g R

enew

al T

arge

t was

that

som

e ai

rline

s ce

ased

to o

pera

te.

Rea

sons

for e

xcee

ding

Sur

veill

ance

Tar

get:

Ther

e w

ere

follo

w-u

p in

spec

tions

to o

pera

tors

with

com

plia

nce

issu

es a

nd

new

ope

rato

rs.

Car

go S

ecur

ityP

lann

ed re

new

al a

ctiv

ities

wer

e no

t rea

lised

due

to c

argo

faci

litie

s th

at o

pted

out

of t

he s

ecur

e su

pply

cha

in, a

nd w

ere

repl

aced

with

Sur

veill

ance

act

iviti

es.

Dan

gero

us G

oods

Add

ition

al A

ir O

pera

tor C

ertifi

cate

rene

wal

s w

ere

cond

ucte

d, fo

llow

ing

stre

amlin

ing

with

Flig

ht O

pera

tions

. Tr

aini

ng O

rgan

isat

ions

Nin

e (9

) Tra

inin

g O

rgan

isat

ions

did

not

rene

w th

eir s

tatu

s as

Avi

atio

n S

ecur

ity T

rain

ing

Org

anis

atio

ns a

nd o

ne (1

) or

gani

satio

n is

on

a 5-

year

rene

wal

. The

targ

et w

as e

xcee

ded

due

to a

hug

e de

man

d fo

r ins

truct

or c

ertifi

catio

n, a

s w

ell a

s ca

nine

cer

tifica

tion.

Tabl

e 12

: Avi

atio

n S

ecur

ity M

OS

P 20

18/2

019

– de

viat

ion

expl

anat

ion




Avia

tion

infr

astr

uctu

re M

OSP

201

8/20

19

Tabl

e 13

: Avi

atio

n In

frast

ruct

ure

MO

SP

2018

/201

9

Strategic Objective

MOSP Annual Target

Q 1 Target

Q 1 Actual

Q 2 Target

Q 2 Actual

Q 3 Target

Q 3 Actual

Q 4 Target

Q 4 Actual

Status

Achi

eve

a st

ep-

chan

ge in

re

gula

ting

avia

tion

safe

ty a

nd

secu

rity

Operations

*Renewal Target

Renew Actual

** Surveillance

Surveillance Actual

RS

RS

RS

RS

RS

RS

RS

RS

Air

Traf

fic

Ser

vice

s29

3029

289

98

107

610

37

87

86

65

7

Aer

odro

mes

131

134

1424

30

429

745

049

130

532

8

265

248

Com

mun

icat

ion,

N

avig

atio

n, a

nd

Sur

veill

ance

(C

NS

)

00

5364

015

0 2

60

150

150

100

130

130

10

Avia

tion

Env

ironm

enta

l P

rote

ctio

n (A

EP

)

00

1214

03

03

04

06

02

02

03

03

Tota

l MO

SP

Act

iviti

es16

016

410

813

039

3137

46

5225

5925

3725

39

3132

2729

28

Not

e N

umbe

rEx

plan

atio

n

1A

erod

rom

es Q

uarte

r 1 R

enew

als:

Ext

ra a

udits

wer

e co

nduc

ted

at K

imbe

rley,

Pila

nesb

erg,

and

Pie

term

aritz

burg

. Mou

ntai

n Vi

ew

canc

elle

d lic

ence

. Thr

ee (3

) ins

pect

ions

sch

edul

ed in

the

MO

SP

wer

e sh

ifted

to Q

uarte

r 3.

Aer

odro

mes

Qua

rter 2

Ren

ewal

s: E

xtra

aud

its w

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Information and Communication Technology

Information Communication Technology (ICT) remains a strategic driver for SACAA, and it is aligned to the following strategic objectives in the SACAA Annual Performance Plan (APP) as agreed to with the Department of Transport (DoT):

1. Significantly improve customer experience; and 2. Improve organisational efficiency.

Several ICT deliverables as outlined in the APP were successfully delivered during the reporting period:

The Enterprise Business System project has been fully implemented All the modules of the project have been successfully completed and deployed. The successful implementation of EBS will result in improved turnaround times of the services offerings, consistent and reliable services standards of SACAA services offerings. This milestone further makes way for the submission of corrective action handling, online examinations booking and automation of online submission of various applications from the aviation industry. The collection of data over the years will enable the SACAA to implement a Risk Performance Based Oversight amongst other innovations.

Effective from the 1st quarter of 2019/2020, outstation examinations will be conducted electronically as a result of the successful implementation of the EBS.

Electronic records and document management system The Business case to implement the Electronic Documents and Records Management System (EDRMS) has been approved by ExCo during the reporting period. This paves the way for the sourcing of a service provider to start with the development of an EDRMS fit for the Organisation’s needs in the coming financial year.

Introduction of the card licence for various aviation licence holders During the reporting period, the organisation successfully implemented the technology and equipment to issue card licences. The new card, which is more secure and easier to carry, will be rolled out from the next financial year. The card is secure and has a 2D barcode with access to real-time information about the licence holder’s type ratings and necessary medical information.

ICT governance In line with the King IV Principles, ICT is considered to be a critical strategic element of the organisation, and it is for this

reason that the SACAA Board has dedicated the responsibility of ICT governance oversight to the Audit and Risk Committee. Management continues to report on ICT Governance, ICT Risks and Major ICT Projects to the Board through the Audit and Risk Committee.

Cyber security An independent service provider, specialising in cyber security, has been appointed to monitor the network resources, the appointed service provider monitors the network infrastructure, applications, database and conducts penetration tests.

During the reporting period the organisation was not exposed to major threats. Most of the attempts were cyber crime attempts, in which common criminals sent impersonation emails to employees; either to solicit information or money, none of which were successful.

Review of stakeholder relations

The SACAA stakeholder management focused on centralising communication, sharing information, building relationships and cooperation between the organisation and stakeholders locally, regionally and globally. One of the primary goals of the SACAA is to evolve into a customer-centric entity that has solid relations with its multiple stakeholders. Each year the SACAA implements a myriad of communication and stakeholder management activities. Key among the initiatives are information face-to-face sharing sessions that can be amplified, depending on the need and desired outcome. The ERDMS will help the SACAA to expedite the process of retrieving information and thereby helping expedite client services processes. It will also minimise the risk of documents getting lost.




Key stakeholder engagement activitiesThe next table delineates stakeholder engagement activities undertaken during the financial year.

Type of engagement Date Details DCA meeting with African Civil Aviation Directors-General

04 - 06 June 2018 The Director of Civil Aviation (DCA), Ms Poppy Khoza, hosted a meeting of African Civil Aviation Directors-General to discuss progress on the implementation of priority actions relating to Aviation Security and Facilitation, as agreed to at a previous meeting of Directors General of Civil Aviation, in November 2016. This was done in the DCA’s capacity as Lead Champion, nominated at the previous meeting of the Directors-General of Civil Aviation. The meeting was supported by the two ICAO African Regional Offices, as well as the African Civil Aviation Commission (AFCAC).

Aviation Security Road Shows 25 - 29 June 2018 The Aviation Security Division conducted several aviation security road shows. Conducting road shows is viewed as critical, in that it engenders a security culture which is critical to the implementation of aviation security programmes by all in the industry and also helps to enhance compliance.

Security Awareness Campaign 05 - 09 July 2018 A security awareness campaign was conducted at the following airports:• OR Tambo International Airport,• Cape Town International Airport,• King Shaka International Airport,• Port Elizabeth International Airport, and• Braam Fischer International Airport.The objective of the campaign was to inculcate a security culture among members of the public as well as the security community at the various airports. The campaign was a great success.

Safety Management Performance Workshops

10 - 11 July 2018 The objective of this workshop was to equip the industry with the necessary skills and knowledge to implement a functional Safety Management System (SMS) with particular emphasis on safety performance management.

Dangerous Goods and Cargo Forum

12 July 2018 The objective of this workshop was to discuss issues relating to Dangerous Goods and Cargo Security as well as to give feedback on the latest developments in Dangerous Goods and Cargo Security globally.

Safety Management Performance Workshop

24 - 25 July 2018 The objective of this workshop was to equip the industry with the necessary skills and knowledge to implement a functional SMS with particular emphasis on safety performance management.

Aviation Security Training Instructor Workshop

24 - 26 July 2018 The objective of the event was to train and refresh awareness of aviation security among instructors.

National Transportation Safety Board Seminar in South Africa

31 July - 2 August 2018

The objective of this meeting was for aviation organisations that operate aviation safety reporting systems to meet and discuss their confidential reporting systems.

Safety Management System (SMS) Workshop

21 - 22 August 2018

The objective of the workshop was to educate the industry on how to manage or develop safety performance management.

Safety Management System (SMS) Workshop

28 - 29 August 2018

The objective of the workshop was to educate the industry on how to manage or develop safety performance management.

Handling Radioactive Material Incidents

10 - 14 September 2018

The National Nuclear Regulator presented training to the Dangerous Goods and Cargo Security inspectorate as well as members of the Emergency Response Services unit of the South African Police Service. The training resulted in a better understanding of radioactive material and emergency response protocols in handling radioactive material incidents.

Aerodromes and Facilities Department

27 September 2018

An Aerodromes and Facilities workshop was conducted to educate the industry about improving aviation safety, and an introduction to the proposed Sub-Part 5 of the Civil Aviation Regulations.

Stakeholder engagement activities




Type of engagement Date Details Air Cargo Security Workshop 28 September

2018This workshop was aimed at educating the Aviation Security industry members on how to become known consignors.

Flight Instructor and Designated Flight Examiner conferences

22 - 23 August 2018

and

19 - 20 September 2018

Flight Instructor and Designated Flight Examiner conferences were hosted by the SACAA Personnel Licensing Department in Gauteng. This platform provided an opportunity to address a large number of pilots and to create awareness of the functions of the Medical Department and how clients can contact SACAA on the following issues:

• Common Causes of Inflight Incapacitation and Safety Management;• Mental Health Issues in Aviation, including but not limited to alcohol and substance

abuse cases;• The Aeromedical Committee;• Impact of Upper Age Limit;• Fatigue Risk Management and Erratic Behaviour and Tantrums in the Cockpit; and• Introduction of the web-based EBS System.

Air Ambulance Workshop - Aviation Medicine Department

05 October 2018 The objective of the workshop was to educate the industry about the operational requirements of Part 138 of the Civil Aviation Regulation.

ICASS (International ConfidentialAviationSafetySystems) - AIID

23 - 25 October 2018

The principal objectives of the ICASS Group are:• To provide advice and assistance in the start-up and operation of a confidential

reporting system;• To facilitate the exchange of safety related information between independent

confidential aviation reporting systems; and • To identify solutions to common problems in the operation of such systems.

Aviation Security Training Instructor Workshop

25 October 2018 The objective was to give updates on the 39th ICAO assembly resolutions and the Global Aviation Security Plan.

AirTrafficServicesDesignatedExaminers Workshop

14 November 2018

The designation process has necessitated a review of the SACAA Air Traffic Services sectional internal procedures, and as such Part 65 was amended.

Stakeholder Management 07 March 2019 Interim SADC Aviation Safety Organisation (ISASO) requested the SACAA to host a meeting on ISASO Levy Concept Proposal in Johannesburg.

SACAADurbanOfficeIntroductory Breakfast

11 March 2019 SACAA is working towards establishing regional offices throughout the country in the quest to ensure a national footprint and to provide efficient services. The new planned office will be in the Durban area, which will be launched in the next financial year, i.e., 2019/2020. The objective of the breakfast was to meet all relevant stakeholders in the Eastern Region and to introduce the idea behind the Durban office and the envisaged services, and whilst ensuring effective consultation at all levels.

National Aviation Conference 13 - 15 March 2019

The inaugural annual National Aviation Conference consolidated the Industry Growth, the National Safety Seminar and the Security Seminar. The objective of the National Aviation Conference was to bring all industry players and relevant stakeholders together to discuss the current and future aviation-topical issues, gather information and find relevant solutions.

Captains of the Industry 19 March 2019 The SACAA convened the 2nd meeting of the Captains of Industry Forum at the Emperors Palace Convention Centre. The Forum was attended by Chief Executives of Aviation entities, Associations and also the SACAA Executive team. The following presentations were delivered by SACAA: (1) The State of the SACAA, (2) CORSIA implementation, (3) ICAO Next Generation of Professionals Programme (NGAP) and (4) Shifting Trends in Air Travel, among others.

Stakeholder engagement activities | CoNTiNued

Table 15: Stakeholder engagement activities




Technical Assistance and Cooperation Missions

There were few Regional Technical Assistance and Cooperation Missions undertaken during the financial year under review. Through the SACAA, South Africa continues to make inroads in terms of contributing to Africa’s aviation safety and security record. During the reporting period, the SACAA championed technical cooperation that will benefit our peers across the continent and the globe. The following table outlines the assistance offered.

Country Engagement OutcomeKenya

Uganda

Rwanda

Tanzania

Benchmarking of the aviation medical processes

The SACAA Aviation Medical department hosted the CASSOA Chief Medical Assessors from Kenya, Uganda, Rwanda, and Tanzania for the purposes of benchmarking the aviation medical processes.

Namibia Legal and Aviation Compliance

The Namibian Civil Aviation Authority requested a visit to the SACAA Aviation Library and relevant functions. The mission also involved a visit by the Namibia Technical Librarian to SACAA and exposure to library functions.

Namibia Aviation Infrastructure The Namibian Civil Aviation Authority requested SACAA to provide PANS-OPS Inspector on-the-job-training.

Zimbabwe Aviation Infrastructure The South African Civil Aviation Authority received a request from the Civil Aviation Authority of Zimbabwe regarding on-the-job-training for a PANS-OPS and Charts inspector as part of her final stage towards being an authorised inspector to conduct safety oversight on flight procedure design. This took place from 28 January 2019 until 08 February 2019.

Botswana Aviation Safety Operations The Civil Aviation Authority of Botswana requested technical assistance with the registration and certification of the Embraer 170 aircraft.

Namibia Aviation Safety Operations The Namibian Civil Aviation Authority requested a benchmarking exercise with regard to Personnel Licensing and Examinations.

Zambia Aviation Safety Operations The Civil Aviation Authority of Zambia requested technical assistance with on-the-job training for conducting Aviation Training Organisation certification.

Eswatini Aviation Safety Operations The Eswatini Civil Aviation Authority (ESWACAA) visited the SACAA for assistance with the Air Operator Certificate renewal on-the-job training.

Kenya Aviation security The South African Civil Aviation Authority released one inspector, a short-term expert (STE), to assist as a team member in the presentation of a National Inspectors Course that took place in Kenya during the period 10 - 18 April 2018.

South Africa Stakeholder Management The Interim SADC Aviation Safety Organisation (ISASO) requested the SACAA to host a meeting on ISASO Levy Concept Proposal in Johannesburg. The meeting took place in January 2019.

United Kingdom Aviation Security The Director General of UK Civil Aviation - DCA responded to the invitation to collaborate on Aviation Security matters and the request for a Technical Cooperation Agreement.

Table 16: Regional technical assistance and cooperation missions




SACAA revenue collection

The next table illustrates that the total revenue of R702.9 million for the financial year under review increased by 8.5% when compared to the R647.6 million in 2017/2018. It is 1.2% lower than the budgeted revenue collection of R711.7 million for the financial year under review. The Passenger Safety Charge contributes 75.7% of total revenue. The revenue from the Passenger Safety Charge increased by 9.4% when compared to the previous year, mainly as the result of a 1% increase in passenger numbers and an increase in the Passenger Safety Charge from R22.29 to R23.61 with effect from 01 April 2018.

Interest revenue from financial institutions increased by 5.1% as a result of surplus funds invested, as well as improved cash flow management.

INCREASED

8.5%R702.9 million

TOTAL REVENUE2018/2019

R647.6 millionTOTAL REVENUE2017/2018

PASSENGER SAFETy CHARGE

9.4%

01 APRIL 2018

PASSENGER SAFETy CHARGE

R22.29 R23.61

1%PASSENGER NUMBERS

INCREASED

Revenue Collection 2018/2019 2017/2018Source of revenue Budget

R' millionActual

R' millionVariance

R' millionBudget

R' millionActual

R' millionVariance

R' millionPassenger Safety Charge 539.2 532.3 (6.9) 486.1 486.7 0.6 User fees 102.7 99.8 (2.9) 96.8 93.1 (3.7)

Fuel levy 28.1 25.6 (2.5) 28.2 26.5 (1.7)

Accident and incident investigation 21.9 21.9 - 20.7 20.7 -

Interest received 13.9 18.5 4.6 15.7 17.6 1.9

Other income 5.9 4.8 (1.1) 3.6 3.0 (0.6)

Total 711.7 702.9 (8.8) 651.1 647.6 (3.5)

Table 17: SACAA revenue collection

Governance

PARt


PART C - Governance


Introduction“Sound governance is not some abstract ideal or utopian pipedream. Nor does it occur as a result of accidents or sudden outbreaks of altruism. It happens only when leaders lead with integrity, when directors actually direct and when major organisations are held to the highest standards of accountability by vigilant stakeholders and informed individuals.”

J Richard Finlay (2008) When CEOs fail to lead. http://finlayongovernance.com/

The governance landscape in South Africa over the past year has been beleaguered by corporate governance deficiencies, coupled with a rapidly changing technological environment. This changing landscape has caused legal entities, whether public or private, to reflect on its governance practices and adapt these where necessary.

Over the past few years and as reflected by the continuous clean audits as well as the numerous and consecutive Clean Audit Awards from the Auditor-General of South Africa (AGSA), the SACAA has clearly worked diligently to ensure the presence of effective internal controls, whilst also entrenching the principles of good governance throughout the organisation.

Unsurprisingly, solidifying its focus on the four good governance outcomes that are articulated in the King IV Report on Corporate Governance™ (King IV Report™) was key for the SACAA during the 2018/2019 financial year. To this end, the Board intensified its attention on the four outcomes, namely:

• Ethical Culture;

• Good Performance;

• Effective Control; and

• Legitimacy.

Additionally, the Board continued to monitor progress on the closure of all gaps that were identified through the King IV™ gap analysis that was conducted in 2017. Moreover, greater emphasis was placed on ethical leadership, and as a result, several initiatives were undertaken to embed the ethical principles adopted by the Board. All these activities demonstrates the SACAA Board’s unwavering commitment to ethical conduct.

It is worth pointing out that the sound corporate governance practices and structures, coupled with strong internal controls, form the necessary bedrock of the SACAA’s successful and consistent performance in recent years. The SACAA, as a Schedule 3A entity, has remained highly compliant to all applicable regulatory prescripts, especially the Public Finance

Management Act, 1999 (Act No.1 of 1999) (PFMA). In terms of the PFMA and the Civil Aviation Act, 2009, (Act No. 13 of 2009), the SACAA Board is the Accounting Authority, whilst the Minister of Transport is the Executive Authority.

As part of ingraining its governance mandate in terms of the above legal instruments, the then interim Board held an induction session upon appointment in April 2018. The same applied in February 2019 with the appointment of a permanent Board, which took over the baton on 01 December 2018.

These sessions enable Board members to understand the business of the SACAA, its mandate in terms of the Civil Aviation Act, the organisation’s strategy and risks, as well as the organisation’s governance framework. These initiatives have made governance pervasive; and ensured that the Board conducts its affairs with accountability, transparency, fairness, and prudence. As a strategic Accounting Authority that subscribes to the principles of the King IV Report on Corporate Governance™, the Board is satisfied with the SACAA’s application of the King IV™ principles; and will constantly strive for improvement as governance best practices evolve.


PART C - Governance


A snapshot of the SACAA’s application of The King IV™ Principle

Principles Principle Description High Level Summary Commentary on Application

Principle 1 The governing body should lead ethically and effectively.

The Board has an approved Ethics policy and Code of Conduct in place. The Board, through its Human Resources Committee (HRC), monitors the implementation of the plan to institutionalise ethics.

Applied

Principle 2 The governing body should govern the ethics of the organisation in a way that supports the establishment of an ethical culture.

Ethics oversight has been delegated to the HRC. The Committee is tasked with providing oversight on the implementation of an ethics plan that was approved during the reporting period; as well as monitoring the implementation of various ongoing activities aimed at enhancing an ethical culture. The SACAA also adopted key organisational cultural pillars during the review period, and ethics was identified as one of these pillars.

Applied

Principle 3 The governing body should ensure that the organisation is and is seen to be a responsible corporate citizen.

The SACAA has adopted a stakeholder-inclusive approach and included a set of values as part of its strategic plan. In addition, the Board regularly receives reports on corporate social responsibility and stakeholder engagement activities from Management. The Board is committed to transformation and prides itself in achieving its employment equity targets. The Board also has a legal compliance management policy in place that is aimed at ensuring compliance to all applicable laws and regulations.

Applied

Principle 4 The governing body should appreciate that the organisation’s core purpose, its risks and opportunities, strategy, business model, performance and sustainable development are all inseparable elements of the value creation process.

Strategy and performance management is firmly anchored in the Board’s agenda and planning. A robust strategic planning process is undertaken annually, which includes Executive Management. The Board also considers and approves the strategic risks as part of the strategic planning process.

Applied

Principle 5 The governing body should ensure that reports issued by the organisation enable stakeholders to make informed assessments of the organisation’s performance and its short-term, medium-term and long-term prospects.

The reports issued by the SACAA are aligned to the PFMA, National Treasury guidelines, and the King IV™ principles. The information enables stakeholders to make informed assessments about the entity. The Annual Report is prepared each year and tabled in Parliament.

Applied

Table 18: A snapshot of the SACAA’s application The King IV™ Principle


PART C - Governance


A snapshot of the SACAA’s application of The King IV™ Principle | CoNTiNued


Principle 6 The governing body should serve as the focal point and custodian of corporate governance in the organisation.

The Board’s responsibilities are clearly articulated in its Board Charter and delegation to its Committees defined in the Committees’ approved terms of reference.

Applied

Principle 7 The governing body should comprise the appropriate balance of knowledge, skills, experience, diversity and independence for it to discharge its governance role and responsibilities objectively and effectively.

The Board is diversified in terms of it skills, qualifications, and experience. This is also stipulated in terms of section 77 of the Civil Aviation Act. In terms of gender representation, the Board is diverse and comprises 50% males and 50% females.

Applied

Principle 8 The governing body should ensure that its arrangements for delegation within its own structures promote independent judgement and assist with balance of power and the effective discharge of its duties.

The Board has an approved delegation of authority in place, coupled with adequate policies and procedures. Applied

Principle 9 The governing body should ensure that the evaluation of its own performance and that of its Committees, its Chair, and its individual members, support the continued improvement in its performance and effectiveness.

The Board undertakes a Board-evaluation exercise every two years. The last evaluation was in April 2017. A report was prepared and tabled at one of the Board meetings. The report was also shared with the Executive Authority, i.e. the Minister of Transport. All areas of improvement were addressed by way of an action plan that was monitored by the Board. The Board is due for further evaluation in 2019. It is anticipated that an independent evaluation will be conducted, involving the use of questionnaires, interviews, and reporting.

Applied

Principle 10 The governing body should ensure that the appointment of, and delegation to, management contribute to role clarity and the effective exercise of authority and responsibilities.

The Board ensures proper delegation to its Committees through terms of reference and to Management through the delegation of authority and Board resolutions from time to time. The Board has an annual work plan that includes Committees and provides for role clarity and the effective exercise of duties. The Board structures were reviewed in April 2018 and again in February 2019, thereby ensuring effectiveness.

Applied

Principle 11 The governing body should govern risk in a way that supports the organisation in setting and achieving its strategic objectives.

The Board has a risk management framework and policy in place. The Board has set the risk appetite and identifies the strategic risks annually, as part of the strategy development process. Strategic risk reports are tabled quarterly to the Board as well as the Board’s Audit and Risk Committee (ARC).

Applied


PART C - Governance


A snapshot of the SACAA’s application of The King IV™ Principle | CoNTiNued


Principle 12 The governing body should govern technology and information in a way that supports the organisation setting and achieving its strategic objectives.

There are different governance structures in place at Board and ExCO level to govern technology and information adequately. There is an IT Steering Committee in place and its reports on technology and information are tabled quarterly at the ARC.

Applied

Principle 13 The governing body should govern compliance with applicable laws and adopted, non-binding rules, codes and standards in a way that supports the organisation being ethical and a good corporate citizen.

The Board adopted a legal compliance management policy in March 2018. During the reporting period, training was conducted and implementation commenced. The Board’s oversight on legal compliance is delegated to the ARC and progress is reported by Management on a quarterly basis to this Committee.

Applied

Principle 14 The governing body should ensure that the organisation remunerates fairly, responsibly and transparently so as to promote the achievement of strategic objectives and positive outcomes in the short, medium and long term.

The HRC provides oversight on issues of remuneration. The Committee keeps abreast with changes in the remuneration environment. In March 2019 the HRC independently reviewed the SACAA’s salary bands. The adopted remuneration policy has applied all the relevant King IVTM principles with emphasis put on ensuring fairness, transparency, and being responsible.

Applied

Principle 15 The governing body should ensure that assurance services and functions enable an effective control environment, and that these support the integrity of information for internal decision-making and of the organisation’s external reports.

The Board has an approved combined assurance framework in place. Implementation of the combined assurance plan progressed well during the 2018/2019 financial year. This is an area that is gaining momentum at SACAA.

Applied

Principle 16 In the execution of its governance role and responsibilities, the governing body should adopt a stakeholder-inclusive approach that balances the needs, interests and expectations of material stakeholders in the best interests of the organisation over time.

There is an approved three-year stakeholder management plan, and the Board continued to monitor progress against this plan. In addition, a stakeholder management policy was crafted by Management and subsequently approved by the Board.

Applied


PART C - Governance


The Board, as the Accounting Authority, constantly keeps abreast of the latest developments that affect the SACAA, thereby ensuring that the Board’s consideration of matters of strategy, policy and performance are always robust, informed, and impactful.

The Minister of Transport appointed an interim Board with effect from 01 April 2018 for a period of six (6) months. The interim Board’s term ended on 30 September 2018. In January 2019, the Minister of Transport appointed a new Board retrospectively from 01 December 2018. Board induction was provided for both the interim and new Board, thereby ensuring that they are acclimatised to the core business of the SACAA.

The Board continues to remain the focal point of corporate governance as enunciated in the King IV Report™ as well as the Civil Aviation Act, and has concerned itself in the past year with the following key activities:

1 Reviewing of the SACAA’s 2019/2020 Annual Performance Plan, which included the review of the vision, mission, values, strategic goals, and objectives.

2 Ensure governance in the implementation of the ICAO Universal Safety Oversight Audit Programme (USOAP) Continuous Monitoring Approach (CMA) audit Corrective Action Plan and its accosted progress reports.

3 Enhancing stakeholder value through oversight of the implementation of the approved three-year Stakeholder Management Plan.

4Ensuring oversight of key organisational projects, namely: the implementation of the Enterprise Business System, Flight Inspection Unit’s acquisition and disposal of aircraft, monitoring of the implementation of the RAASA Transitional Plan and HR Operational Plan, and the Relocation Plan of the SACAA’s head office.

5 Reviewing of various policies and strategies.

6 Monitoring the implementation of the King IV™ gap analysis report.

7 Reconstitution of Board Committees.

It is important to emphasise that the Board steadfastly applies a stakeholder-inclusive model of corporate governance, whereby the interests of all stakeholders are taken into account during the development and implementation of the SACAA Strategy and the Annual Performance Plan.


PART C - Governance


In terms of governance, the following key activities were embarked upon during the year under review:

• The Board held a two-day strategic planning session from 22 to 23 August 2018. The session was attended by Board members and Executive Management and culminated in the 2019/2020 Annual Performance Plan for the SACAA.

• The Board submitted its performance agreement for 2019/2020 to the Minister of Transport during March 2019.

• The Executive Authority approved the SACAA’s Strategic Plan and the Annual Performance Plan for the 2019/2020 financial year.

• The Board successfully held its Annual General Meeting on 30 August 2018, and all resolutions tabled were approved by the Executive Authority.

• The Corporate Governance Plan was reviewed and submitted to the Minister of Transport as the Executive Authority, representing the Shareholder, i.e. the South African Government.

• The Board reviewed and approved the Regional Co-operation as well as the Branding Strategy.

• The Board Charter and all Committees’ terms of reference were reviewed during the reporting period.

The Board, as the Accounting Authority, confirms that in compliance with the PFMA and the Board Performance Agreement, it has consistently reported, on a quarterly basis, the SACAA’s overall performance to the Executive Authority. All four quarterly reports were submitted timeously to the Executive Authority. At year-end, the Board affirms that the entity has yet again met 100% of its annual targets, which demonstrates a continued commitment in terms of the King IV Report™ to realise good and stable performance. The Board maintains an open and transparent engagement with the Executive Authority and regularly informs the Executive Authority of progress, milestones and challenges facing SACAA through written correspondence and interfaces with the Minister and Deputy Minister of Transport.

Accounting AuthorityThe Accounting Authority continued to receive, on an on-going basis, constructive feedback from the Executive Authority on its reported performance. The Board consistently provided strategic direction to the organisation; and endeavoured to achieve all obligations as stated in the SACAA’s Annual Performance Plan and the Board Performance Agreement. The Board presented the SACAA’s 2017/2018 Annual Report to the shareholder at the Annual General Meeting held on 30 August 2018. The positive feedback received from the Executive Authority was refreshing and welcomed.

Role and Responsibilities of the Board

The Board is expected to retain full and effective control over the governance of the SACAA; and in this regard, a clear division of responsibility exists at Board and Executive Management level. It has delegated some of its powers to the Director of Civil Aviation (DCA) and the SACAA’s Executive Committee through a delegation of authority (DoA) framework, which has been duly approved by the Board as the Accounting Authority. The DoA, however, does not absolve the Board of its responsibilities and accountability.

The role of the Board is, among others, to:

• Provide effective leadership;

• Develop the SACAA Strategy and Annual Performance Plan;

• Manage the SACAA’s income, expenditure, and assets;

• Determine, oversee, and revise the corporate governance structures within the SACAA;

• Determine, oversee, and revise the human resources policies, and human resources strategies of the SACAA;

• Ensure that the SACAA is managed effectively in pursuance of its mission, by providing oversight over the entity’s strategies, policies, decisions, and the execution thereof;

• Appreciate that the SACAA’s strategy, risk, performance, and sustainability are inseparable;

• Review and approve the SACAA’s financial objectives, plans and actions, including cost allocations and expenditures;

• Ensure that the SACAA has an effective and independent Audit and Risk Committee;

• Ensure that there is an effective risk-based internal audit function, as well as effective governance of risk management as well as information technology infrastructure; and

• Ensure that the SACAA complies with all the applicable laws, and also considers adherence to non-binding rules, codes, policies and standards.

The above-mentioned are not exhaustive; but provide a high-level summary of the roles and responsibilities of the Board as stipulated in the Civil Aviation Act and the Board Charter.

Board Charter

The Board has adopted a formal Charter, which clearly articulates the respective roles, responsibilities and authorities of the Board, both individually and collectively. The Board Charter is reviewed and approved annually to ensure that it remains relevant and is aligned with best practice. It also lays the foundation for a shared


PART C - Governance


understanding of the Board’s role throughout the organisation. The Board confirms that, during the period under review, it has satisfactorily discharged its duties and obligations as contained in the Board Charter, thereby ensuring value-creation in all that it does in terms of ethics, performance, financial sustainability, and human capital.

Board composition

At the commencement of the reporting period, i.e. on 01 April 2018, the Minister of Transport appointed an interim Board for a period of six (6) months, comprising seven (7) non-executive Directors and one (1) Executive Director, namely the Director of Civil Aviation.

Members of the interim Board appointed on 01 April 2018 comprised:

• Mr SS Mokoena (Non-executive) – Reappointed: Chairperson as appointed by the interim Board

• Prof. NV Dyani-Mhango

(Non-executive) – Reappointed

• Mr M India (Non-executive) – Reappointed• Mr S Sooklal (Non-executive) – New• Mr E Khosa (Non-executive) – New• Dr BC Suckling (Non-executive) – New• Ms T Phewa (Non-executive) – New• Ms P Khoza Director of Civil Aviation

(Executive)

The interim Board’s term came to an end on 30 September 2018 and the Minister of Transport appointed a new Board, effective 01 December 2018 in accordance with the Civil Aviation Act.

Members of the Board as at 31 March 2019:

Mr E Khosa (Non-executive) - Reappointed: Chairperson

Prof. NV Dyani-Mhango

(Non-executive) - Reappointed

Mr M India (Non-executive) - ReappointedMr S Sooklal (Non-executive) - ReappointedDr BC Suckling (Non-executive) - ReappointedMs B Koyana (Non-executive)Ms T Phewa (Non-executive) - ReappointedMs P Khoza Director of Civil Aviation (Executive)

All the above non-executive Directors are independent and appointed for a term of three years. Most importantly, in this regard there has also been an element of continuity in terms of the number of reappointments.

The Director of Civil Aviation, Ms Poppy Khoza, is the only Executive Director. Her contract, which spans five (5) years came to an end on 30 November 2018. The Minister of Transport renewed Ms Khoza’s contract for a further five (5) years effective 01 December 2018.

Males Females

Interim Board composition

37.5%

62.5%

Males Females

New Board composition

50%

50%


PART C - Governance


The roles of the Chairperson of the Board, and the Director of Civil Aviation are kept separate and distinct. Mr E Khosa was appointed as an independent, non-executive Chairperson by the Minister of Transport; and is free from any conflict of interest.

The Board goes a long way in ensuring proper and seamless achievement of the regulatory mandate of the entity as contained in the Civil Aviation Act, No. 13 of 2009 and the

strategic objectives approved by the Executive Authority. A mix of skills helps to facilitate sound decision-making and enriches the discussions and deliberations at Board and Committee meetings.

A total of nine (9) Board meetings were held in the year under review. The next tables delineate the composition of the SACAA Board during the 2018/2019 financial year.


PART C - Governance


Inte

rim B

oard

com

posit

ion

effe

ctiv

e 01

Apr

il 20

18

NAME

DESIGNATION

DATEAPPOINTED

DATERETIRED

QUALIFICATIONS

AREA OF EXPERTISE

BOARD DIRECTORSHIP

MEMBERSHIP OF PROFESSIONALASSOCIATIONS

COMMITTEES

Mr S

S M

okoe

naN

on-E

xecu

tive

Dire

ctor

/ M

embe

r of t

he

inte

rim B

oard

Cha

irper

son

of th

e in

terim

B

oard

- as

ap

poin

ted

by

the

inte

rim

Boa

rd

Re-

appo

inte

d 01

/04/

1830

/09/

18B

Sc

(Eng

inee

ring)

MB

A

Gov

ernm

ent C

ertifi

cate

of

Com

pete

ncy

as E

lect

rical

E

ngin

eer f

or th

e M

ines

&

Wor

ks in

SA

(GC

C)

Ene

rgy

Infra

stru

ctur

e

Pol

icy

and

Reg

ulat

ion

Eng

inee

ring

and

Gov

erna

nce

Bes

t Inf

rast

ruct

ure

and

Inve

stm

ents

CC

(BII)

Ser

vice

Del

iver

y S

olut

ions

(Pty

) Ltd

(S

DS

)

Min

eral

s an

d P

etro

leum

B

oard

(MP

B)

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

Avia

tion

Saf

ety

and

Env

ironm

ent

Com

mitt

ee a

nd

Avia

tion

Sec

urity

C

omm

ittee

Mr S

Soo

klal

Non

-Exe

cutiv

e D

irect

or/

Mem

ber

Cha

irper

son

of

the

Aud

it an

d R

isk

Com

mitt

ee

(AR

C)

01/0

4/18

-P

ost G

radu

ate

Dip

lom

a:

Taxa

tion

Pub

lic A

ccou

ntan

ts’

and

Aud

itors

’ Boa

rd

Exa

min

atio

ns

Cha

rtere

d A

ccou

ntan

t (S

A)

Dip

lom

a: A

ccou

ntin

g an

d A

uditi

ng (P

ost G

radu

ate)

Bac

helo

r of C

omm

erce

Fina

nce

Tax

Ris

k

Man

agem

ent

Cor

pora

te

Gov

erna

nce

Due

Dili

genc

e R

evie

ws

Ass

uran

ce

(Inte

rnal

and

E

xter

nal)

Mer

gers

and

A

cqui

sitio

n

List

ing

and

Del

istin

g of

co

mpa

nies

on

the

JSE

Reg

ulat

ory

Mob

ile T

elep

hone

N

etw

orks

Sud

an

Com

pany

Lim

ited

878

Mob

ile T

elep

hone

N

etw

orks

Afg

hani

stan

Li

mite

d

Mob

ile T

elep

hone

N

etw

orks

Ivor

y C

oast

Mob

ile T

elep

hone

N

etw

orks

Uga

nda

Lim

ited

Mas

com

Wire

less

B

otsw

ana

Lim

ited

Eco

net W

irele

ss

Citi

zens

Lim

ited

Luna

r Cap

ital (

Pty

) Ltd

Mem

ber o

f the

D

isci

plin

ary

Com

mitt

ee: P

ublic

A

ccou

ntan

ts a

nd

Aud

itors

Boa

rd

Sou

th A

frica

n In

stitu

te o

f C

harte

red

Acc

ount

ants

Inde

pend

ent

Reg

ulat

ory

Boa

rd

for A

udito

rs

Inst

itute

of

Dire

ctor

s (S

A)

(IoD

SA

)

AR

C &

HR

C


PART C - Governance


Inte

rim B

oard

com

posit

ion

effe

ctiv

e 01

Apr

il 20

18 |

Co

NTi

Nu

ed

NAME

DESIGNATION

DATEAPPOINTED

DATERETIRED

QUALIFICATIONS

AREA OF EXPERTISE

BOARD DIRECTORSHIP


COMMITTEES

Mr E

Kho

saN

on-E

xecu

tive

Dire

ctor

/Mem

ber

Cha

irper

son

of th

e H

uman

Res

ourc

es

and

Rem

uner

atio

n C

omm

ittee

(HR

C)

01/0

4/18

-P

hD (M

anag

emen

t) In

pr

ogre

ss

Hig

her D

iplo

ma:

Com

pany

La

w

Mas

ter o

f Sci

ence

(In

tern

atio

nal

Dev

elop

men

t)

Mas

ter o

f Arts

(D

evel

opm

ent)

B.A

Hon

ours

B.A

Hum

aniti

es

Dev

elop

men

t Fi

nanc

e

Rea

lignm

ent o

f or

gani

satio

ns

Com

plia

nce

Man

agem

ent

Org

anis

atio

nal a

nd

Dev

elop

men

t

Mav

one

Fore

nsic

s

Shi

poyi

lla K

hosa

A

ssoc

iate

s

Rix

aka

Foru

m

Inst

itute

of

Dire

ctor

s of

S

outh

Afri

ca

(IoD

SA

)

HR

C, A

RC

&

PO

C

Prof

. NV

Dya

ni-M

hang

oN

on-E

xecu

tive

Dire

ctor

/Mem

ber

Cha

irper

son

of

the

Pro

cure

men

t O

vers

ight

C

omm

ittee

(PO

C)

Re-

appo

inte

d01

/04/

18

-LL

B

LLM

LLD

Ass

ocia

te P

rofe

ssor

of

Law

Lega

lN

one

Inst

itute

of

Dire

ctor

s of

S

outh

Afri

ca

(IoD

SA

)

PO

C, A

RC

&

AS

C

Dr B

C

Suck

ling

Non

-Exe

cutiv

e D

irect

or/M

embe

r

Cha

irper

son

of th

e Av

iatio

n S

afet

y an

d E

nviro

nmen

tal

Com

mitt

ee(A

SE

C)

01/0

4/18

-B

.Iuris

MB

A

DB

A

Sou

th A

frica

n Q

ualifi

catio

n A

utho

rity-

Rat

ed A

sses

sor

IATA

–IO

SA

Aud

itor

IFA

LPA

: Airp

ort R

unw

ay

and

Airp

ort S

afet

y R

epre

sent

ativ

e

Fam

ily a

nd D

ivor

ce

Med

iatio

n

LLB

ALT

P

ICA

O S

ubje

ct M

atte

r E

xper

t

Com

mer

cial

Med

iatio

n

Adm

itted

Adv

ocat

e of

the

Hig

h C

ourt,

Sou

th A

frica

Avia

tion

Flig

ht O

pera

tions

an

d A

irpor

ts

Law

Non

eN

one

AS

EC

& P

OC


PART C - Governance


NAME

DESIGNATION

DATEAPPOINTED

DATERETIRED

QUALIFICATIONS

AREA OF EXPERTISE

BOARD DIRECTORSHIP


COMMITTEES

Mr M

Indi

aN

on-

Exe

cutiv

e D

irect

or/

Mem

ber

Cha

irper

son

of th

e Av

iatio

n S

ecur

ity

Com

mitt

ee

(AS

C)

Rea

ppoi

nted

01

/04/

18-

Nat

iona

l Dip

lom

a in

Sec

urity

Ris

k M

anag

emen

t

Dip

lom

a in

Avi

atio

n S

ecur

ity M

anag

emen

t

Pro

ject

Man

agem

ent

Cer

tifica

te

Pro

gram

me

in E

cono

mic

s an

d P

ublic

Fin

ance

Dis

aste

r and

C

omm

unic

atio

n M

anag

emen

t Cer

tifica

te

Cer

tifica

te in

the

Avia

tion

Lead

ers

Pro

gram

me

in

Pub

lic P

olic

y - S

inga

pore

Av

iatio

n A

cade

my

Form

er M

ilita

ry/D

efen

ce/

Pol

ice

Offi

cer

Avia

tion

Sec

urity

Nat

iona

l

Inco

mar

Aer

ospa

ce

and

Def

ence

Sys

tem

s

Sou

th A

frica

n N

atio

nal

Par

ks (S

AN

PAR

KS

)

Saf

ety

at S

ports

an

d R

ecre

atio

n E

vent

s A

ppea

l Boa

rd

(SA

SR

EA

)

Sky

mor

e D

efen

ce

Sys

tem

s

Evi

lox

Hol

ding

s

Evi

lox

Sec

urity

Ris

k C

ompa

ny

Inal

a Te

chno

logi

es

Inst

itute

of

Dire

ctor

s S

outh

A

frica

(IoD

SA

)

Form

er S

A R

epre

sent

ativ

e of

the

AvS

ec

Pan

el o

f Exp

erts

of

ICA

O, a

U

nite

d N

atio

ns

Spe

cial

ised

A

genc

y

AS

C &

PO

C

Ms

T Ph

ewa

Non

-E

xecu

tive

Dire

ctor

/M

embe

r

Em

ploy

ee

of th

e D

epar

tmen

t of

Tra

nspo

rt

01/0

4/18

-D

iplo

ma

in A

irpor

t M

anag

emen

t

Man

agin

g In

tegr

ated

D

evel

opm

ent S

ervi

ce

Del

iver

y

MA

in R

ural

Dev

elop

men

t

Hon

ours

: B S

ocia

l S

cien

ce, m

ajor

ed in

S

ocio

logy

B S

ocia

l Sci

ence

, m

ajor

ed in

Soc

iolo

gy a

nd

Pol

itica

l Sci

ence

Res

earc

h: P

olic

y an

d S

trate

gy

Dev

elop

men

t Av

iatio

n

Non

eN

one

HR

C &

A

SE

C

Inte

rim B

oard

com

posit

ion

effe

ctiv

e 01

Apr

il 20

18 |

Co

NTi

Nu

ed


PART C - Governance


NAME

DESIGNATION

DATEAPPOINTED

DATE RETIRED

QUALIFICATIONS

AREA OF EXPERTISE

BOARD DIRECTORSHIP


COMMITTEES

Ms

P K

hoza

Exe

cutiv

e D

irect

or

Dire

ctor

of

Civ

il Av

iatio

n

01/1

1/20

13-

B M

anag

emen

t and

Adv

ance

d B

usin

ess

Pro

gram

me

Inte

rnat

iona

l Exe

cutiv

e D

evel

opm

ent P

rogr

amm

e (W

its

and

Lond

on B

usin

ess

Sch

ool)

Inte

rnat

iona

l Vis

itor’s

P

rogr

amm

e (U

SA

)

Civ

il Av

iatio

n C

hief

Exe

cutiv

e P

rogr

amm

e C

ertifi

cate

(S

inga

pore

Avi

atio

n A

cade

my)

Cer

tifica

te in

Avi

atio

n S

afet

y fo

r D

irect

ors-

Gen

eral

(Sin

gapo

re

Avia

tion

Aca

dem

y w

ith IC

AO

)

Vario

us C

ivil

Avia

tion

Cer

tifica

tes

from

ICA

O a

nd IA

TA

Cer

tifica

te in

Tra

vel a

nd T

ouris

m

Cer

tifica

te in

Em

ergi

ng

Man

agem

ent P

rogr

amm

e

Lead

ersh

ip a

nd

Avia

tion

Cha

irper

son

of th

e IC

AO

Avi

atio

n S

ecur

ity

Pan

el 2

015/

2016

Inst

itute

of

Dire

ctor

s of

S

outh

Afri

ca

(IoD

SA

)

Invi

tee:

AR

C,

HR

C, A

SE

C

& A

SC

Inte

rim B

oard

com

posit

ion

effe

ctiv

e 01

Apr

il 20

18 |

Co

NTi

Nu

ed


PART C - Governance


NAME OF BOARD MEMBER

DESIGNATION

DATE APPOINTED

DATE RETIRED

QUALIFICATIONS

AREA OF EXPERTISE

BOARD DIRECTORSHIP

MEMBERSHIP OF PROFESSIONAL ASSOCIATION

OTHER COMMITTEES

Mr E

Kho

saN

on-E

xecu

tive

Dire

ctor

(NE

D)

/ Mem

ber

Cha

irper

son

of

the

Boa

rd

Rea

ppoi

nted

01/1

2/20

18-

PhD

(Man

agem

ent)

In p

rogr

ess

Hig

her D

iplo

ma:

Com

pany

Law

Mas

ter o

f Sci

ence

(Int

erna

tiona

l D

evel

opm

ent)

Mas

ter o

f Arts

(Dev

elop

men

t)

BA

Hon

ours

BA

Hum

aniti

es

Dev

elop

men

t Fi

nanc

e

Rea

lignm

ent o

f O

rgan

isat

ions

Com

plia

nce

Man

agem

ent

Org

anis

atio

nal

Dev

elop

men

t

Mav

one

Fore

nsic

sS

hipo

yila

Kho

sa

Ass

ocia

tes

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

Rix

aka

Foru

m

Non

e

Mr M

Indi

aN

on-E

xecu

tive

Dire

ctor

(NE

D)

/ Mem

ber

Cha

irper

son

of th

e Av

iatio

n S

ecur

ity

Com

mitt

ee

(AS

C)

Rea

ppoi

nted

01

/12/

201

8-

Nat

iona

l Dip

lom

a in

Sec

urity

Ris

k M

anag

emen

t

Dip

lom

a in

Avi

atio

n S

ecur

ity

Man

agem

ent

Pro

ject

Man

agem

ent C

ertifi

cate

Pro

gram

me

in E

cono

mic

s an

d P

ublic

Fin

ance

Dis

aste

r and

Com

mun

icat

ion

Man

agem

ent C

ertifi

cate

Cer

tifica

te in

the

Avia

tion

Lead

ers

Pro

gram

me

in P

ublic

Pol

icy

– S

inga

pore

Avi

atio

n A

cade

my

Form

er M

ilita

ry/ D

efen

ce/

Pol

ice

Offi

cer

Avia

tion

Sec

urity

Inco

mar

Aer

ospa

ce

Def

ence

Sys

tem

s

Evi

lox

Hol

ding

s

Evi

lox

Sec

urity

Ris

k C

ompa

ny

Inal

a Te

chno

logi

es

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

Form

er S

A R

epre

sent

ativ

e of

Av

Sec

Pan

el o

f E

xper

ts o

f IC

AO

, a

Uni

ted

Nat

ions

S

peci

alis

ed

Age

ncy

Form

er

Cha

irper

son

of

the

SA

DC

Avi

atio

n W

orki

ng G

roup

AR

C &

AS

C

Prof

. N D

yani

-M

hang

oN

on-E

xecu

tive

Dire

ctor

(NE

D)

/ Mem

ber

Rea

ppoi

nted

01

/12/

201

8-

LLB

LLM

LLD

Ass

ocia

te P

rofe

ssor

of L

aw

Lega

lN

one

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

HR

C &

AS

EC

SACA

A B

oard

app

oint

ed 0

1 D

ecem

ber 2

018

| C

oN

TiN

ued


PART C - Governance



DESIGNATION

DATE APPOINTED

DATE RETIRED

QUALIFICATIONS

AREA OF EXPERTISE

BOARD DIRECTORSHIP


OTHER COMMITTEES

Mr E

Kho

saN

on-E

xecu

tive

Dire

ctor

(NE

D)

/ Mem

ber

Cha

irper

son

of

the

Boa

rd

Rea

ppoi

nted

01/1

2/20

18-

PhD

(Man

agem

ent)

In p

rogr

ess

Hig

her D

iplo

ma:

Com

pany

Law

Mas

ter o

f Sci

ence

(Int

erna

tiona

l D

evel

opm

ent)

Mas

ter o

f Arts

(Dev

elop

men

t)

BA

Hon

ours

BA

Hum

aniti

es

Dev

elop

men

t Fi

nanc

e

Rea

lignm

ent o

f O

rgan

isat

ions

Com

plia

nce

Man

agem

ent

Org

anis

atio

nal

Dev

elop

men

t

Mav

one

Fore

nsic

sS

hipo

yila

Kho

sa

Ass

ocia

tes

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

Rix

aka

Foru

m

Non

e

Mr M

Indi

aN

on-E

xecu

tive

Dire

ctor

(NE

D)

/ Mem

ber

Cha

irper

son

of th

e Av

iatio

n S

ecur

ity

Com

mitt

ee

(AS

C)

Rea

ppoi

nted

01

/12/

201

8-

Nat

iona

l Dip

lom

a in

Sec

urity

Ris

k M

anag

emen

t

Dip

lom

a in

Avi

atio

n S

ecur

ity

Man

agem

ent

Pro

ject

Man

agem

ent C

ertifi

cate

Pro

gram

me

in E

cono

mic

s an

d P

ublic

Fin

ance

Dis

aste

r and

Com

mun

icat

ion

Man

agem

ent C

ertifi

cate

Cer

tifica

te in

the

Avia

tion

Lead

ers

Pro

gram

me

in P

ublic

Pol

icy

– S

inga

pore

Avi

atio

n A

cade

my

Form

er M

ilita

ry/ D

efen

ce/

Pol

ice

Offi

cer

Avia

tion

Sec

urity

Inco

mar

Aer

ospa

ce

Def

ence

Sys

tem

s

Evi

lox

Hol

ding

s

Evi

lox

Sec

urity

Ris

k C

ompa

ny

Inal

a Te

chno

logi

es

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

Form

er S

A R

epre

sent

ativ

e of

Av

Sec

Pan

el o

f E

xper

ts o

f IC

AO

, a

Uni

ted

Nat

ions

S

peci

alis

ed

Age

ncy

Form

er

Cha

irper

son

of

the

SA

DC

Avi

atio

n W

orki

ng G

roup

AR

C &

AS

C

Prof

. N D

yani

-M

hang

oN

on-E

xecu

tive

Dire

ctor

(NE

D)

/ Mem

ber

Rea

ppoi

nted

01

/12/

201

8-

LLB

LLM

LLD

Ass

ocia

te P

rofe

ssor

of L

aw

Lega

lN

one

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

HR

C &

AS

EC


DESIGNATION

DATE APPOINTED

DATE RETIRED

QUALIFICATIONS

AREA OF EXPERTISE

BOARD DIRECTORSHIP


OTHER COMMITTEES

Dr B

C S

uckl

ing

Non

-Exe

cutiv

e D

irect

or (N

ED

) /M

embe

r

Cha

irper

son

of th

e Av

iatio

n S

afet

y an

d E

nviro

nmen

tal

Com

mitt

ee

(AS

EC

)

Rea

ppoi

nted

01

/12/

201

8-

B.Iu

ris

LLB

LLM

MB

A

DB

A

ALT

P

Adm

itted

Adv

ocat

e of

the

Hig

h C

ourt,

Sou

th A

frica

SA

QA

Rat

ed A

sses

sor

IATA

–IO

SA

Aud

itor

IFA

LPA

: Airp

ort R

unw

ay a

nd

Airp

ort S

afet

y R

epre

sent

ativ

e

Fam

ily a

nd D

ivor

ce M

edia

tion

ICA

O S

ubje

ct M

atte

r Exp

ert

Com

mer

cial

Med

iatio

n

Avia

tion

Law

Flig

ht O

pera

tions

an

d A

irpor

ts

Law

Tran

snet

Pen

sion

Fun

d (T

SD

BF)

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

AS

EC

& A

RC

Mr S

Soo

klal

Non

- E

xecu

tive

Dire

ctor

(NE

D)

/ Mem

ber

Cha

irper

son

of th

e A

udit

and

Ris

k C

omm

ittee

(A

RC

)

Rea

ppoi

nted

01

/12/

201

8-

Pos

t Gra

duat

e D

iplo

ma:

Tax

atio

n

Pub

lic A

ccou

ntan

ts’ a

nd A

udito

rs’

Exa

min

atio

ns

Cha

rtere

d A

ccou

ntan

t (S

A)

Dip

lom

a: A

ccou

ntin

g an

d A

uditi

ng

(Pos

t Gra

duat

e)

Bac

helo

r of C

omm

erce

Fina

nce

Tax

Ris

k

Man

agem

ent

Cor

pora

te

Gov

erna

nce

Due

Dili

genc

e R

evie

ws

Ass

uran

ce (I

nter

nal

and

Ext

erna

l)

Mer

gers

and

A

cqui

sitio

n

List

ing

and

Del

istin

g of

co

mpa

nies

on

the

JSE

Reg

ulat

ory

Mob

ile T

elep

hone

N

etw

orks

Sud

an

Com

pany

Lim

ited

878

Mob

ile T

elep

hone

N

etw

orks

Afg

hani

stan

Li

mite

d

Mob

ile T

elep

hone

N

etw

orks

Ivor

y C

oast

Mob

ile T

elep

hone

N

etw

orks

Uga

nda

Lim

ited

Mas

com

Wire

less

B

otsw

ana

Lim

ited

Eco

net W

irele

ss C

itize

ns

Lim

ited

Luna

r Cap

ital (

Pty

) Ltd

Mem

ber o

f the

D

isci

plin

ary

Com

mitt

ee:

Inde

pend

ent R

egul

ator

y B

oard

of A

udito

rs

Sou

th A

frica

n In

stitu

te o

f C

harte

red

Acc

ount

ants

Inde

pend

ent

Reg

ulat

ory

Boa

rd

for A

udito

rs

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

AR

C &

HR

C

SACA

A B

oard

app

oint

ed 0

1 D

ecem

ber 2

018

| C

oN

TiN

ued


PART C - Governance



DESIGNATION

DATE APPOINTED

DATE RETIRED

QUALIFICATIONS

AREA OF EXPERTISE

BOARD DIRECTORSHIP


OTHER COMMITTEES

Ms

T Ph

ewa

Non

-Exe

cutiv

e D

irect

or (N

ED

)

Em

ploy

ee

of th

e D

epar

tmen

t of

Tran

spor

t

Rea

ppoi

nted

01

/12/

201

8-

Dip

lom

a in

Airp

ort M

anag

emen

t

Man

agin

g In

tegr

ated

Dev

elop

men

t S

ervi

ce D

eliv

ery

MA

in R

ural

Dev

elop

men

t

Hon

ours

: B S

ocia

l Sci

ence

m

ajor

ed in

Soc

iolo

gy

B S

ocia

l Sci

ence

maj

ored

in

Soc

iolo

gy a

nd P

oliti

cal S

cien

ce

Avia

tion

Tran

spor

t Edu

catio

n Tr

aini

ng A

utho

rity

(TE

TA):

Aer

ospa

ce

Cha

mbe

r

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

AS

EC

& A

SC

Ms

P K

hoza

Exe

cutiv

e D

irect

or

Dire

ctor

of

Civ

il Av

iatio

n (D

CA

)

01/1

2/20

13

Rea

ppoi

nted

1/

12/2

018

-B

Man

agem

ent a

nd A

dvan

ced

Bus

ines

s P

rogr

amm

e

Inte

rnat

iona

l Exe

cutiv

e D

evel

opm

ent P

rogr

amm

e (W

its

and

Lond

on B

usin

ess

Sch

ool)

Inte

rnat

iona

l Vis

itor’s

Lea

ders

hip

Pro

gram

me

(US

A)

Civ

il Av

iatio

n C

hief

Exe

cutiv

e P

rogr

amm

e C

ertifi

cate

(Sin

gapo

re

Avia

tion

Aca

dem

y)

Vario

us C

ivil

Avia

tion

Cer

tifica

tes

from

ICA

O a

nd IA

TA

Cer

tifica

te in

Tra

vel a

nd T

ouris

m

Cer

tifica

te in

Em

ergi

ng W

omen

M

anag

emen

t Pro

gram

me

Lead

ersh

ip a

nd

Avia

tion

Cha

irper

son

of th

e IC

AO

Av

iatio

n S

ecur

ity P

anel

20

15/2

016

Inst

itute

of

Dire

ctor

s of

Sou

th

Afri

ca (I

oDS

A)

Invi

tee:

AR

C,

HR

C, A

SE

C &

A

SC

SACA

A B

oard

app

oint

ed 0

1 D

ecem

ber 2

018

| C

oN

TiN

ued

Tabl

e 19

: Boa

rd c

ompo

sitio

n


PART C - Governance


Board Committees

In terms of Principle 8 of the King IV Report™, the Board is required to delegate certain functions to well-structured Board Committees, but without abdicating its own responsibilities. This provision is also present under section 81 of the Civil Aviation Act making the Board Committees an integral part of the SACAA governance model. They allow for more in-depth deliberation on crucial and complex matters and enable the Board to make more informed decisions on such matters, based on the recommendation of its Committees.

The Board had five (5) committees at the beginning of the financial year, namely:

• Audit and Risk Committee;• Human Resources and Remuneration Committee;• Aviation Security Committee;• Aviation Safety and Environmental Committee; and • Procurement Oversight Committee.

All committees operate within the framework of Board-approved terms of reference, which are reviewed annually by the Committees and approved by the Board. In addition, each Committee has an approved annual work plan linked to its terms of reference, the Civil Aviation Act, the PFMA and the Board Performance Agreement. The Board appoints the Chairperson and members of each of the Committees. The Audit and Risk Committee (ARC) members are nominated by the Board but membership is ratified annually at the Annual General Meeting (AGM). The above ensures a healthy system of governance.

During the reporting period, the Board Committees were constituted as follows:

Audit and Risk CommitteeThe Audit and Risk Committee (ARC) is a statutory Committee that provides independent and objective oversight over, amongst others, financial and sustainability reporting, financial management, risk management, internal controls, internal audit functions and processes, external audit, procurement processes, combined assurance as well as information technology governance.

The members were nominated by the Board and their appointment ratified at the Annual General Meeting (AGM) held on 30 August 2018. The new ARC membership will be ratified at the AGM to be held in August 2019 or September 2019.

The ARC operates in accordance with approved terms of reference and a detailed annual work plan. The following are some of the ARC responsibilities:

• Ensuring that a combined assurance model is applied

to provide for a coordinated approach to all assurance activities;

• Reviewing reports from both external and internal auditors concerning the effectiveness of the internal control and auditing system as well as evaluating whether the system of internal control is adequate to manage critical risks;

• Reviewing the internal control systems and structure, including financial controls and accounting systems, as well as evaluating whether the system of internal control is adequate to manage critical risks;

• Reviewing the activities of the internal audit function, including its annual work programme, and consider the effectiveness of the internal audit function and monitor the adherence to the annual plan;

• Reviewing the enterprise-wide risks as well as the strategic risks on a quarterly basis and ensuring that risk management assessments are performed on a continuous basis;

• Reviewing of the Annual Report and consolidated Annual Financial Statements to ensure that they fairly present a balanced assessment of the SACAA’s position, performance and prospects before recommending them to the Board for approval;

• Consider objectivity and independence of the external auditors; and

• Approve the external audit fees.

Human Resources and Remuneration CommitteeThe Human Resources and Remuneration Committee (HRC) advises the Board on human resource (HR) related matters; and recommends to the Board for approval all HR related policies and strategic matters.

This Committee also provides independent and objective oversight over, amongst others, human resource issues, labour relations, collective bargaining matters, remuneration, performance management systems, rewards strategy, retention policy, succession planning and any other issues relating to the workforce of the SACAA. The HRC’s duties and responsibilities are detailed in its Board-approved terms of reference.

The HRC focussed on the following activities in the year:

• Review and approval of the human resources operational plan.

• Monitoring, on a quarterly basis, of the performance against approved HR operational plan.

• Review and recommendation to Board of the annual performance bonuses.

• Review of the annual salary increases.• Review of the identified HR policies and the HRC terms of

reference.


PART C - Governance


• Considered the draft Branding and Regional Co-operation Strategy.

• In the interests of fair and responsible remuneration, the revised pay scales were considered by the HRC.

Aviation Safety and Environmental Committee The Aviation Safety and Environmental Committee (ASEC) was constituted to ensure that the Board is aware of aviation safety and relevant environmental issues. It provides governance oversight on aviation safety and environmental matters and mobilises the requisite resources for safety and environmental matters, at a strategic level.

Aviation Security CommitteeThe role of the Aviation Security Committee (ASC) is to assist the Board to ensure that the Board is aware of aviation security

matters; and the Board allocates the necessary funding and mobilises resources to deal with aviation security matters, including audits where required. The ASC reviewed divisional quarterly reports during the period under review.

Procurement Oversight CommitteeThe purpose of the Procurement Oversight Committee (POC) is to advise the Board on the awarding of bids/tenders within the delegated authority of the Committee i.e. R10 million and above. The POC operates in accordance with duly approved terms of reference and was previously an ad-hoc Committee of the Board. On 01 February 2019, the Board resolved to disband the Committee and all responsibilities were transferred to the Audit and Risk Committee.

The following table indicates the attendance of committee meetings for the period under review:

Board and Board Committee meetings

Committee No. of meetings held

No. of members

Name of members Meetings attended

Audit and Risk Committee

4 3 Mr S Sooklal (Chairperson) 4/4Prof. N Dyani-Mhango (retired on 30/09/2018) 3/3Mr E Khosa (retired on 30/09/2018) 1/3Mr M India (Appointed 1/02/2019) 1/1Dr B Suckling (Appointed 1/02/2019) 1/1

Procurement Oversight Committee *

0 3 Prof. N Dyani-Mhango (Chairperson) -Mr M India -Dr B Suckling -

Human Resources and Remuneration Committee

4 3 Mr E Khosa (Chairperson) (retired on 30/09/2018) 3/3Mr S Sooklal 4/4Ms T Phewa (retired on 30/09/2018) 2/3Ms B Koyana (Chairperson – appointed 01/02/2019) 1/1Prof. N Dyani-Mhango 1/1

Aviation, Safety and Environmental Committee

2 3 Dr B Suckling 2/2Mr SS Mokoena (retired on 30/09/2018) 2/2Ms T Phewa 2/2

Aviation Security Committee

2 3 Mr M India (Chairperson) 2/2Mr SS Mokoena (retired on 30/09/2018) 2/2Prof. N Dyani-Mhango 2/2

*POC disbanded on 01 February 2019.

Table 20: Board and Board Committee meetings


PART C - Governance


Board and Board Committee meetings | CoNTiNued

Board meetings & other session/workshops

No. of meetings held

No. of members

Name of members Meetings attended

Board meetings 9 8 Mr SS Mokoena - Chairperson (retired on 30/09/2018) 7/7Mr M India 9/9Mr S Sooklal 9/9Prof. N Dyani-Mhango 7/9Mr E Khosa 9/9Dr B Suckling 9/9Ms B Koyana (appointed 1/12/2018) 3/3Ms T Phewa 8/9Ms P Khoza 9/9

Board strategy session B.Iuris

2 8 Mr SS Mokoena 2/2Mr M India 2/2Prof. N Dyani-Mhango 2/2Mr S Sooklal 2/2Mr E Khosa 2/2Dr B Suckling 2/2Ms T Phewa 2/2Ms P Khoza 2/2Ms P Khoza 2/2

Annual general meeting

1 7 Mr SS Mokoena (Chairperson) 1/1Prof. N Dyani-Mhango 1/1Mr E Khosa 1/1Mr M India 1/1Mr S Sooklal 1/1Ms T Phewa 1/1Ms P Khoza 1/1

Board induction 2 9 Mr SS Mokoena 1/1Mr E Khosa 1/1Mr S Sooklal 1/1Prof. N Dyani-Mhango 1/1Mr M India 1/1Ms T Phewa 1/1Ms B Koyana 1/1Ms P Khoza 1/1Dr B Suckling 1/1


PART C - Governance


Board Remuneration

Board remuneration is determined by the Minister of Transport in accordance with the Civil Aviation Act. Board Members are paid a monthly stipend and, in addition, are remunerated for meeting attendance and preparation. Members are also reimbursed for any travel expenses incurred. Board remuneration is disclosed in the Annual Financial Statements and is summarised hereunder:

Board remuneration

Name AnnualRemuneration

R

Other Allowance

Other Reimbursements*

R

Total

RMr SS Mokoena3 182 655 N/A 1 184 183 839Ms L Dlepu2 5 206 N/A 376 5 582Mr M India 223 530 N/A 3 138 226 668Major General NLJ Ngema2 5 206 N/A 2 300 7 506Prof. N Dyani-Mhango 232 099 N/A 4 538 236 637Mr S Sooklal1 288 700 N/A 7 814 296 514Mr E Khosa1 279 741 N/A 15 389 295 130Dr B Suckling 213 838 N/A 2 277 216 115Ms B Koyana 75 464 N/A - 75 464

1. Fees include 15% VAT in terms of the VAT Act No. 89 of 1991.2. Retired on 31 March 2018 and paid for March 2018 meeting in April 2018.3. Retired on 30 September 2018.

* Reimbursement expenses are disclosed in terms of section 28(1)(4) of the PFMA as reimbursement costs paid to Board members. The costs includeflights,carhire,accommodationandtravelcostsforallmeetingsoftheBoardanditscommittees.

Table 21: Board remuneration

Risk ManagementThe SACAA ExCo, under the direction of the SACAA Board, use their knowledge of the organisation and the commercial aviation industry to formulate a five-year, roll-over strategic plan. The strategic risks to the plan are determined by considering the effect of uncertainty on the strategic objectives in the strategic plan. The Strategic Risk register process identifies and assesses possible risks associated with the strategy and provides the Board and stakeholders with a list of the top ten identified strategic risks in the SACAA, stated clearly and assessed as to their importance to meeting strategic objectives. The SACAA Board and ExCo were directly involved in creating mitigation plans to reduce the risk to acceptable levels and within the company’s risk appetite. The Board decided upon an acceptable level of risk and whether the potential gains from the strategy proposed are worth the risk. At the end of March 2019 the total residual risk exposure score decreased from nine (9) to six (6). The next table will reflect the top ten (10) strategic risks in SACAA and group them according to organisational goals.


PART C - Governance


Tabl

e 22

: Ris

k re

gist

er

Risk No.

Strategic goals

Strategic Objective

Risk Description

Eval

uatio

n be

fore

Con

side

ring

Cur

rent

Con

trol

Str

ateg

ies

Eval

uatio

n af

ter C

onsi

derin

g C

urre

nt C

ontr

ol S

trat

egie

s

Consequence

Likelihood

Inherent Risk Rating (IRR)

Consequence

Likelihood

Residual Risk Rating (RRR)

1D

rive

Org

anis

atio

nal

Sys

tem

Inno

vatio

nIn

tegr

ated

ICT

Sys

tem

Lack

of I

nfor

mat

ion

Sys

tem

Sec

urity

45

204

2 8

2A

chie

ve a

Ste

p-ch

ange

in R

egul

atin

g Av

iatio

n S

afet

y an

d S

ecur

ity

Lack

of e

ffect

ive

and

effic

ient

pr

oces

ses

and

syst

ems

44

163

2 6

3E

nhan

ce H

uman

C

apita

l and

Acc

eler

ate

Tran

sfor

mat

ion

Driv

e a

Per

form

ance

cu

lture

Loss

of C

ritic

al a

nd

Scar

ce S

kills

45

203

26

4A

ccel

erat

e O

rgan

isat

iona

l Tr

ansf

orm

atio

n

Lack

of c

ompl

ianc

e to

the

BB

BE

E

Cod

es

34

122

3 6

5R

egul

ate

Avia

tion

Indu

stry

E

ffect

ivel

y an

d E

ffici

ently

Rev

iew

and

Im

plem

ent t

he

C-F

AR

P an

d A

lign

to In

tern

atio

nal B

est

Pra

ctic

e

Mis

alig

ned

safe

ty

and

secu

rity

inte

rven

tions

ca

usin

g ac

cele

rate

d ac

cide

nt ra

tes

44

164

2 8

6A

chie

ve a

Ste

p-ch

ange

in R

egul

atin

g Av

iatio

n S

afet

y an

d S

ecur

ity

Inad

equa

te a

viat

ion

safe

ty &

sec

urity

ov

ersi

ght s

yste

m

44

162

24

7C

usto

mer

Ser

vice

E

xcel

lenc

eIm

prov

e C

usto

mer

s’

Exp

erie

nce

Poo

r Cus

tom

er

Ser

vice

Lev

els

44

163

2 6

8S

ecur

e Fi

nanc

ial

Sus

tain

abili

tyD

iver

sify

and

Exp

and

Sou

rces

of R

even

ueLa

ck o

f Sus

tain

able

Fi

nanc

ial M

odel

44

163

2 6

9E

ffect

ive

Sta

keho

lder

M

anag

emen

tIm

prov

e S

take

hold

er

Per

cept

ion

Lack

of

Sta

keho

lder

Buy

- in

44

164

2 8

10In

crea

se N

atio

nal

Foot

prin

t of R

egul

ator

y S

ervi

ces

Est

ablis

h O

ptim

um

Acc

ess

to R

egul

ator

y S

ervi

ce

Lim

ited

Acc

essi

bilit

y to

S

AC

AA

serv

ices

22

42

24

SACA

A S

trat

egic

Risk

regi

ster

– a

s at

Mar

ch 2

019

Ext

rem

e R

isk

17 to

25

Hig

h R

isk

10 to

16

Mod

erat

e R

isk

5 to

9Lo

w R

isk

1 to

4


PART C - Governance


The SACAA does not have an Internal Control Unit; as such functions and activities are dealt with by the Internal Audit Division and the Board’s Audit and Risk Committee.

Internal Audit

The SACAA established an Internal Audit Division in line with the Public Finance Management Act and Treasury Regulations, including the best practice of King IVTM Report on Corporate Governance.

Internal Audit provides both assurance and consulting services. It assists the SACAA to accomplish its objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of risk management, internal control, and governance processes, which must be managed in a manner that ensures:

• the effectiveness and efficiency of operations, investments and projects;

• the safeguarding of the SACAA’s assets;

• the reliability and integrity of financial and non-financial information; and

• processes regarding compliance with laws and regulations.

The work of the Internal Audit Division is guided by the Internal Audit Charter, which is aligned to the Board’s Audit and Risk Committee Charter. The Internal Audit Division reports functionally to the Board’s Audit and Risk Committee and administratively to the Director of Civil Aviation. The Audit and Risk Committee reviews the work of the Internal Audit Division on a quarterly basis or as when the need arises.

The Internal Audit Division performs its work in line with the International Standards for the Professional Practice of Internal Auditing and Code of Ethics for Internal Auditing issued by the Institute of Internal Auditors. The Internal Audit staff are all registered as members of the Institute of Internal Auditors.

Key Activities and Objectives of the Internal Audit Division

The Internal Audit Division mainly focuses on assurance and consulting services as required by the Institute of Internal Auditors’ standards. Assurance services consist of the independent reviews on the adequacy and effectiveness of the risk management, internal control and governance processes. Independent reviews include a continuous review of compliance,

by management and staff, to relevant legislation, regulations, approved policies and procedures, and best industry practices, where applicable. Consulting services are advisory in nature and are intended to add value and improve the SACAA’s operations. They are generally performed at the specific request of Management and/or an engagement client. The nature and scope of the consulting engagement are subject to agreement with the engagement client.

The Internal Audit Division plays a key and independent role within the organisation in assessing the adequacy and effectiveness of risk management, internal controls and governance processes. One of its functions is to ensure that there is improved internal controls within the organisation as well as compliance with applicable legislation. In addition, the Internal Audit Division constantly and regularly monitors organisational performance to ensure that the deliverables as outlined in the Annual Performance Plan (APP) are achieved.

Summary of Audit Work Undertaken

The Internal Audit Charter was reviewed and approved by the Board’s Audit and Risk Committee. The internal audit methodology was revised to remain consistent and relevant to new updates of the Internal Audit Standards for the Professional Practice of Internal Auditing. This was also aimed at ensuring that there is continuous improvement of the internal audit processes.

A risk-based three-year coverage plan is in the process of being developed and the Annual Plan for 2018/2019 were reviewed and approved by the Board’s Audit and Risk Committee. The Internal Audit Division executed and completed all the audits on the approved Internal Audit Annual Plan as approved by the Audit and Risk Committee. The progress reports against the plans are presented monthly to ExCo and quarterly to the ARC by the Chief Audit Executive. A total of thirty-six (36) internal audit reports were issued, which is a combination of planned audits (32) and ad-hoc requests (4).

A Findings Tracking Register was developed and monitored monthly for progress made by Management in implementing the agreed actions and plans. As at the end of the financial year, eighty-one percent (81%) of the findings from the previous financial year were closed or resolved by Management, and the remaining nineteen percent (19%) is being planned to be resolved in the first quarter of the 2019/2020 financial year. The Internal Audit Division is satisfied with the effort Management has put in place in ensuring the speedy resolution of the outstanding findings.

Internal control unit


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During the reporting period, a campaign aimed at amplifying awareness among the SACAA’s employees regarding the role and services of the Internal Audit Division was undertaken. The awareness initiatives included, among others, participation during the induction of new employees, as well as presentations to Management structures, staff and during Management Committee (MANCO) meetings.

Audit and Risk Committee

The Audit and Risk Committee (ARC) derives its mandate from the Public Finance Management Act, 1999 (Act No. 1 of 1999) (PFMA) with specific reference to Section 51 of the PFMA and the Treasury Regulations. In terms of the above legislation, the Board is required to appoint the ARC and the appointment of the members is ratified by the Executive Authority at the Annual General Meeting.

The ARC has adopted appropriate, formal Terms of Reference (ToRs) which are reviewed annually and approved by the Board. This ARC is independent and carries out its functions without any influence or interventions from the Board or Management of the SACAA.

Independent and objective oversight is maintained over, among others, financial and sustainability reporting, financial management, risk management, the internal audit function, external audit, procurement processes, information technology, governance and integrated reporting within the SACAA. The ARC meets at least five times a year to consider the quarterly financial management report, internal audit quarterly report, risk management report, performance management, external audit strategy and any other statutory requirements. For more, refer also to the Audit and Risk Committee Report on page 104 - 107.

Implementation of Combined Assurance

The SACAA’s Combined Assurance Model, which was approved by the Board on 31 October 2017, has paved the way to ensure that the model is implemented across the SACAA by following a risk-based approach. The SACAA’s combined assurance model incorporates King IV™ requirements by integrating, aligning and optimising all assurance services and functions so that, comprehensively, these enable:

• an effective control environment;

• support the integrity of information used for decision-making by management, the governing body and its committees;

• support the integrity of the organisation’s external reports; and

• remove the unnecessary duplication of efforts by assurance providers, and as a result, the probability of assurance fatigue in the business.

It is against this background that alignment efforts are under way to ensure an effective combined assurance process across all the SACAA operations as outlined in the Combined Assurance Implementation Plan. It is worth mentioning that the combined assurance implementation is at an infancy stage.

The alignment effort will ensure increased collaboration and the development of a shared and holistic view of the organisation’s risk profile, whilst eliminating the ‘assurance fatigue’ that usually emanates from an uncoordinated assurance approach. The development of the Ethics and Compliance Frameworks by the Company Secretary’s office further aids the alignment process. All the actions identified in the compliance and ethics plans, including risk registers, will be coordinated by the SACAA’s Risk Specialist, and Governance Specialist to ensure value-added outcomes for the SACAA.

Quarterly Combined Assurance committee meetings are held to discuss implementation progress, alignment and integration. The Senior Manager Risk and Compliance, Risk Specialist, Legal Compliance, and Governance Specialist met on 14 November 2018 to discuss alignment between the assurance processes in the Risk and Compliance Department and the Company Secretary’s office. This resulted in a meeting on 04 December 2018 between the Company Secretary, Internal Audit Division, and Risk and Compliance Department to discuss the alignment and integration of the Fraud and Ethics Register.

Combined Assurance organisational awareness and readiness training was undertaken as follows:

• Combined Assurance Core Team training: May 2018.

• Combined Assurance Committee member training: December 2018.

• Combined Assurance training for wider Management: March 2019.


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No Implementation Action Timelines and ResponsibilityFinancial year Responsible Progress

17/18 18/19 19/20Immediate Priority Items

1 Approved combined assurance framework

X E: CS Updated Combined Assurance framework circulated to committee for comments.

2 Approved combined assurance matrix

X CA Committee Combined Assurance matrix circulated to committee for comments.

Pre-implementation Actions3 Revised CA Committee

terms of reference (ToR)X CA Committee Revised CA ToR was approved.

4 CA training X X E: CS • Training for CA Core Team took place in May 2018.

• CA training for Combined Assurance Committee members took place on 13 December 2018.

• Combined Assurance training for Management was concluded on 27 March 2019 during MANCO.

5 Ensure alignment and consideration of CA plan in risk governance documents and key charters of SACAA

X X E: CS & CAE Review of Risk Governance documents and alignment thereof with key charters of SACAA is under way.

Implementation Actions6 Integration and

Alignment between Lines of Assurance.

X X X Company Secretary

• Quarterly during CACom meetings based on manual processes.

• Meeting between SM: R&C and Legal Compliance and Governance Specialist to discuss CA model on 14 November 2018.

• Meeting was held between Company Secretary, Internal Audit and R&C to discuss the alignment and combination of the Fraud and Ethics Register on 4 December 2018.

7 CA coordination and ongoing monitoring

X X X CA Committee Planned CACom dates.• 1st Quarter: 30 Jul 2018.• 2nd Quarter: 26 Sep 2018.• 3rd Quarter: 21 Nov 2018.

Combined Assurance Implementation Plan

The SACAA’s combined assurance programme, based on the King IV™ Report (2016) on Governance for South Africa, aims to improve assurance coverage and quality through improved coordination amongst assurance providers. The application of combined assurance in terms King IV™ implies that assurance is provided at multiple levels within the organisation and the Board of Directors does not merely receive assurance, but, in turn serves an additional assurance role, especially in consideration of stakeholder and shareholder interests. The focus of the programme thus lies on the harmonisation (organisation, processes, and terminologies) and efficient utilisation of the different assurance functions to provide holistic, rather than fragmented assurance to key stakeholders. To operationalise this, the combined assurance implementation plan, below, was developed.

The implementation of combined assurance will be performed in a multi-year, staged manner, as outlined in the table below.

Table 23: Combined Assurance Implementation


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EthicsCompliance with laws and regulations

In terms of the King IV Report™, the Board is required to ensure that the SACAA complies with applicable laws and considers adherence to non-binding rules, codes and standards. This has remained an ethical imperative for the Board and the SACAA. Quarterly reporting on compliance with the PFMA, as well as international codes and standards, has been ongoing.

During the year under review, the Board approved the compliance policy, which included the regulatory universe. The policy was aligned with the King IV Report™ and the relevant compliance standard.

Management of fraud and corruption

The Fraud and Corruption Prevention Framework as previously approved by the Board has been implemented by the SACAA. The implementation of the Framework was supported by the review of the Whistle-Blowing Policy, which review was necessitated by the promulgation of the Protected Disclosure Amendment Act. In the reviewed policy, the SACAA strengthened the protection of the whistle-blower, which includes persons employed by the organisations, or those providing services to SACAA, such as security, cleaning, and catering companies. In addition, as required by the Protected Disclosure Amendment Act, the SACAA introduced provisions to give effect to disciplinary or criminal actions against persons that knowingly make false reporting.

The amended Whistle-Blowing Policy followed the continuous efforts by Management to create awareness of the Fraud Hotline as a tool and/or mechanism to reduce fraud and corruption within the aviation industry. In this reporting period, Management took a strategic approach to focus on external stakeholders, during which the following events were undertaken:• Ethics Day targeting the SACAA’s walk-in clients;

• Presentation on fraud and corruption during the SACAA’s National Civil Aviation Conference;

• Presentation on fraud and corruption during the General Aviation safety campaign roadshows; and

• Presentation on fraud and corruption during the Aero Club of South Africa roadshows.

Management continued to monitor several forensic investigations that were conducted; and expedited the implementation of the recommendations made by the SACAA’s Forensic Department, as well as incidents reported through the Fraud Hotline. A total number of 58 incidents were reported in the current financial year compared to 50 in the previous financial year, translating into a 16% percentage increase.

The reporting and investigation of incidents is supported by Management’s commitment to fully implement the recommendations contained in the Forensic Investigations Reports. During the reporting period an implementation rate of 77% was attained, compared to 100% achievement in the previous financial year. The outstanding 23% is attributed to disciplinary hearings that have been initiated and are still in progress.

The work done to manage and/or reduce fraud and corruption has provided the Audit and Risk Committee as well as the Board with the required level of assurance that the risk associated with fraud, corruption, and maladministration is being managed effectively by the SACAA. The Board’s Audit and Risk Committee as well as Management has directed the Forensic Department to initiate Fraud Deep Dive processes. The Fraud Deep Dive processes will focus on specific acts of fraud, corruption, and maladministration in the following high-risk areas:

• Employee Benefits;

• Recruitment;

• Procurement;

• Petty Cash and Subsistence Claims;

• Credit Cards; and

• User Fees (Inspections and Examinations).

The Deep Dive Project would commence during the 2019/2020 financial year and it is in line with Management’s commitment to be proactive in respect of preventing fraud, corruption and maladministration. Whilst the Fraud Hotline provides a facility where stakeholders can report known or suspected incidents of fraud, corruption, and maladministration; Management took a decision to dive into those high-risk areas to determine the presence or otherwise of fraud, corruption, and maladministration.

Management is satisfied that sufficient assurance has been provided and accepted by the Audit and Risk Committee as well as the Board, that potential incidents relating to fraud, corruption, and irregularities are being well managed within the organisation.

Minimisingconflictofinterest

Conflict of interest is managed through mandatory annual declarations of interest by all employees. This is over and above the requirement that employees disclose matters of conflict of interest; as and when they arise. During the year under review the Board ensured compliance to the conflict of interest policy. The Policy ensures alignment with the Civil Aviation Act and best practice in terms of dealing with conflict of interest. During the 2017/2018 financial year, the SACAA introduced an automated system in respect of the declaration of interest in an effort to enhance the process.


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The declarations are verified by the Internal Audit department for validity, accuracy and completeness, and where discrepancies exist, such discrepancies are subjected to a full forensic investigation. The Internal Audit Division has the mandate to conduct lifestyle audits at any given moment where they deem it appropriate on all Divisions, including Supply Chain Management (SCM). In addition, all employees within the SCM department are vetted annually to manage issues of conflict.

All Board members are required to declare any conflict of interest on an on-going basis. The Board Charter, read together with section 84 of the Civil Aviation Act, details the importance of declaring conflict of interest and contains prescripts for dealing with such conflicts.

Code of conduct (Ethics)

The Board approved the Ethics Policy and the Code of Conduct in March 2018. These policies enlist the ethical principles that are envisaged at the SACAA for its Directors, employees and contractors; and are linked to the values adopted by the Board, which seek to also provide guidance and ensure that an ethical culture is inculcated not only within the organisation but in the aviation industry as well. These principles govern relationships among different role players and they are meant to foster a good ethical working relationship and environment. To give effect to the Ethics Policy and Code of Conduct, a plan was developed and implemented so as to entrench an ethical culture. As part of the ethics awareness campaign, training sessions on the Ethics Policy and Code of Conduct gained traction during the reporting period. The ethics function resides within the Office of the Company Secretary and it is through this function that Management has engaged employees in its quest to educate and instill sound ethical conduct.

The SACAA held an Ethics Day in February 2019, where employees were encouraged to come and interact with the ethics and fraud prevention team, as well as the representative from the service provider hosting the Fraud Hotline. The exercise proved useful in that it provided employees with an opportunity to converse about acceptable behaviour involving, amongst others, ethics in general, the gifts register process, and conflict of interest. A platform has now been created to take the ethics awareness to greater depth and it is now necessary to customise training for the various divisions such as Supply Chain Management and those divisions with an Inspectorate. An Ethics Handbook was developed for employees to have a quick reference point and the SACAA pledge printed on desk mats distributed to employees which serve as a constant reminder of the ethics commitment.

The tone from the top has also been key at the SACAA in that ethics messages in the form of electronic video messages from the Chairperson of the Board, and the DCA, were sent to all employees and plighted in the Client Services area, thereby

reinforcing the SACAA values and that the ethical tone is indeed set at the top. To further give effect to the King IV™ ethics outcome, the Board delegated the oversight of ethics to the Human Resources and Remuneration Committee to ensure a more dedicated focus on ethics.

Moreover, and during the year ahead, an ethics survey will be conducted in the latter part of 2019/2020, which will also reveal any further improvements in terms of fully embedding the ethics practices at the SACAA.

Health, safety and environmental matters

In relation to health, safety and environmental matters; the SACAA can be described as a medium-risk organisation with a positive health and safety culture. The organisation places a high premium on the wellbeing of its employees. In this regard, the organisation has an effective health and safety management system in place to ensure the continued health, safety, welfare and development of its staff. The health and safety management system duly meets recognised standards and is backed by effective policies and procedures.

The Health and Safety Unit successfully discharged its duties in line with its annual performance plan by performing the planned audits and inspections; as well as continuous organisation-wide occupational health and safety hazard identification and risk assessments. These included audits of the offices in Cape Town, RAASA offices, and Lanseria operations. The Occupational Health and Safety policy were reviewed during the reporting period.

The Health and Safety Unit also offered continuous training and capacity-building for the occupational health and safety representatives and now have an active contingent of sixteen trained Occupational Health and Safety (OHS) representatives. Two emergency evacuation procedure tests were successfully concluded during the reporting period. Moreover, the SACAA was issued with a Letter of Good Standing by the Department of Labour’s Compensation Commissioner. Regardless, in the coming financial year, the Health and Safety Unit intends to intensify awareness across the organisation in relation to occupational health and safety.

The number of on-duty incidents shows a one-digit decrease during the reporting period; compared to the 2017/2018 financial year. As the next table illustrates, there were three minor injuries during the 2017/2018 financial year compared to two minor injury cases reposted during this review period. Encouragingly, during this reporting period there were no fatal injuries, dangerous occurrences, or ill health cases. The two minor injury cases were first aid incidents that were treated on site and duly recorded internally and in line with the applicable processes.


PART C - Governance


Two-year comparison of reported injuries on duty

Category of injury Period Period 2017/2018 2018/2019

Fatal 0 0

Minor injury 3 2

Major injury 0 0

Dangerous occurrence 0 0

Ill health 1 0

Total reports 4 2

Table 24: Two-year comparison of reported injuries on duty

Company Secretary

The Board continues to be supported by a competent Company Secretary. Amongst other duties, the office of the Company Secretary plays an instrumental role in advising the Board on its roles and responsibilities. The roles and responsibilities of the Company Secretary are defined in the Board Charter, read together with the King IV report™; and the Company Secretary is evaluated as part of the Board Evaluation. The Directors have full access to the services and advice of the Company Secretary and all information and records necessary to discharge their duties. In addition, the Board of Directors have access to the services of independent professionals and advisors where necessary; and such advices are obtained in accordance with the Board approved process. The Company Secretary maintains an arm’s length relationship with the Board and its Directors. The Company Secretary is also empowered with the necessary authority and support to carry out her duties, which include, among others:

• Maintaining all statutory records;• Reviewing all Board and Committee Charters annually;• Assisting the Chairperson with the Board Evaluation;• Advising the Board on business ethics and good governance;• Ensuring that the Board’s policies and instructions are

communicated to the appropriate persons in the SACAA;• Ensuring that the Board receives adequate information in

order to make informed decisions;• Ensuring Board induction, training and development;• Monitoring of legislative compliance; and • Implementing the ethics programme.

Social responsibility

As a good corporate citizen, it is important for the SACAA to make a difference in the lives of the communities the organisation serves, directly or indirectly. The organisation is committed towards supporting causes beyond its mandate of controlling, promoting, regulating, supporting, developing, enforcing and continuously improving levels of safety and security in the civil aviation industry. By playing a proactive role in contributing towards the needs of the industry and communities it serves, the SACAA brand and profile will grow in prominence and reputation and the organisation will fulfill its role as a socially responsible citizen. The SACAA has also put emphasis on exploring transformation-related initiatives in order to address the imbalances of the past as well as tackle the triple challenges of poverty, inequality, and unemployment through its socio-economic development (SED) projects.

Sponsorships

The following sponsorship commitments were entered into during the reporting period:

Standard Bank Empowerment AwardsThe SACAA sponsored the Standard Bank Empowerment Awards to the value of R150 000 and as part of this sponsorship the SACAA sponsored the Women in Aviation Award where the DCA had the honour of presenting this award to the winner. The ceremony was held at the Emperors Palace on 23 August 2018. The award was won by Ms Refilwe Ledwaba from Women and Aviation. This commitment does not just contribute towards the elevation of the SACAA brand but also cements the organisation’s goal of contributing towards the empowerment of women in the aviation industry.


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AASA AGM and Conference

The Airlines Association of Southern Africa (AASA) is one of the key stakeholders of the SACAA whose activities contribute towards the SACAA revenue in the form of the Passenger Safety Charge and the fuel levy. It is therefore critical for the SACAA to maintain a working relationship that is mutually beneficial for both parties.

The SACAA’s sponsorship towards the AASA Annual General Meeting (AGM) and conference not only improves the relationship between the two parties, but also ensures that the SACAA is well informed about the topical issues of this key stakeholder, so that the Regulator can be responsive to their needs in line with its mandate.

The sponsorship value was R100 000 and it included branding opportunities for the organisation, an exhibition space and hosting the welcoming reception. There was also an opportunity for the Regulator to engage and network with members of the airline industry. The DCA was listed as a panellist in the programme and represented the Minister by delivering the keynote address. The AASA (AGM) was held in October 2018.

Avi Afrique Summit

A bronze sponsorship package was purchased to the value of R75 000 in support of the Air Traffic and Navigation Services’ (ATNS) Avi Afrique Summit, which took place in October 2018. The SACAA sponsorship at the summit was an opportunity to strengthen a mutual stakeholder relationship with ATNS and increase the SACAA’s brand visibility among key industry players.

Road Safety Child-Headed Households initiative

As part of the SED plan, the organisation partnered with the Department of Transport in a road safety child-headed households initiative. The sponsorship includes 250 blankets, 250 food packs, 15 school jerseys and 15 school shoes at a cost of R151 504. The sponsored items were distributed to families who are part of the Road Safety child-headed household Edu care Initiative.

Department of Transport Imbizo

The organisation partnered with the Ministry of Transport to hand out groceries to communities in the Vryheid area during a DoT Imbizo initiative. The project, amongst other activities, also engaged the communities on services offered by the Department of Transport.

Two hundred (200) grocery packs were purchased and delivered in response to a request from the office of the Minister

of Transport. The Department of Transport’s Imbizo event took place on 15 - 16 March 2019. The total cost of the donation was R273 150.

Safety First Campaign

The Safety First campaign was launched several years ago as a multi-stakeholder campaign whose aim is to promote safety amongst aviators. The SACAA is a major contributor towards the project together with various industry players such as the Aero Club of South Africa, Comair, the Commercial Aviation Association of South Africa, and several others. The SACAA contribution amounts to R120 000 annually. The funds are used towards, among others, hosting safety talks, and developing safety material, including videos.

BARSA Aviation Summit

The organisation responded to a request for sponsorship from the Board of Airlines Representatives of South Africa (BARSA) towards the annual summit hosted by the same organisation. BARSA is one of the major stakeholders of the organisation, representing foreign airlines operating in South Africa. The value of the sponsorship was R50 000 and the benefits of the sponsorship included brand exposure at the event and the opportunity to exhibit at the Summit. The theme of the summit held on 28 February 2019 was “Collaborate-Innovate-Disrupt – Propel to 2020”.

DonationsDonations of 500 school bags and water bottles were committed to the Aviation Development Africa expo held in Soweto. The expo is an initiative by a group of aviators who identified a need in the area for awareness, and raised funds to host a career expo.


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Corporate Social Investment - Responsibility ProjectsSACAA Child/Youth headed household grocery project

The Child-Headed Household initiative was identified as one of the SACAA’s SED projects in response to the need identified amongst many communities where future aviators come from. The project covers all nine provinces in the country and the families were identified by the members of staff and in some provinces through the Department of Social Development. A due diligence exercise was undertaken to ensure that the families are deserving, and verification was conducted with the help of the Department of Social Development.

To ensure the sustainability of this project, the SACAA conducts periodic visits to the families to ensure and measure the impact of the support. The economic status of the families vary and in some cases the extended families also offer support, which then has an impact on the decision to either identify new needy families or offering different types of assistance to the families. Due to the fact that the recipients of the support are mostly children or youth, the needs would be more than just food, but also school equipment or facilities. During the reporting period, site visits were conducted with the families in six (6) of the provinces; and status reports were requested from the Social Development colleagues in relation to those provinces that the SACAA team could not reach.

#Mandela100SACAAChallenge

A Divisional challenge was launched in support and commemoration of the Mandela Centenary. The challenge for each SACAA Division was to select a charity of their choice, with the proviso that priority must be given to charities focusing on women, children, and STEM (Science, Technology, Engineering and Mathematics). Secondly, Divisions needed to identify beneficial items they could raise for the chosen charities. The Divisions were then expected to go on a drive to raise these funds for the items, buy the items, and donate them to the identified charities on 18 July 2018. The Division that collected the highest number of items in value or quantity for their charity, would win R5 000 for their charity of choice.

The SACAA’s Finance Division selected Tumelo Home, which provides care for mentally and physically ill citizens in the area of Tembisa, Gauteng. The Division managed to collect over 200 toiletry items such as toothpaste, soap, etc.

The Corporate Services division nominated Home of Hope, a charity that houses over 300 girls who were exploited and abused and offers care and a safe environment to them in order to restore their dignity and hope for the future. Most of these girls were rescued from the pimps in Hillbrow. The division elected to raise sanitary towels and exceeded their target.

#AviationYouthShow

The CSI Unit in collaboration with the Aviation Development Unit organised and hosted the Aviation Youth Show in commemoration of Youth Month on 15 June 2018 in Mhinga village, Limpopo Province. The youth show was an idea borne out of a request received from the Principal of Basopa Secondary School in Maphophe Village in Limpopo who got to know about the SACAA through one of the school visits conducted by the SACAA’s Aviation Development team, at a village close to Mhinga. The request was for the SACAA to host an Aviation Day for the Vhembe District, Malamulele North East Circuit, which has ten (10) secondary schools offering learners Mathematics and Science, key subjects required for most of the aviation careers. The community is also aspiring to develop an existing military airport nearby, to be commercially viable as one of their socio-economic development projects.

The show was thus hosted at the Joseph Rangani High School in Mhinga Village with over 180 learners, and had 17 educators in attendance. The show was opened by inspirational messages from the Executive: Aviation Security; the Chief of Mhinga Village, and the Head of the District’s Education Department. Thereafter, the day proceeded with interactive displays and information sessions from the following exhibiting companies:

• The South African Airways who afforded all 181 learners a simulated aircraft experience in their Vulindlela simulator truck.

• Denel Aviation who displayed their model defence equipment and handed out to each learner a comprehensive information booklet titled “Defense Made Easy”, written for the South African learner.

• Gateway Airports Authority Limited (GAAL) representing Polokwane Airport, Air Traffic and Navigation Services (ATNS) and the South African Air Force presented related careers at their stands.

• The SACAA team comprising of:

• The Aviation Infrastructure department showcased calibration equipment and cartography on screen, giving the learners a glimpse into the untold careers in aviation.

• The Aviation Security division featured interesting security devices used by airports security.

• The SACAA Communications Department’s interns and the SACAA’s young pilot, Rebaone Maropefela, were flooded by learners at every chance they got, to view and try out the science experiments that were being showcased.


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Young African Aviators and SACAA bursary recipients shared their success stories during the “Up-close and personal with an aviator” session. Learners could not wait for “selfie” moments with the young pilots after hearing their inspirational “I DID IT, YOU TOO CAN” stories.

Nine (9) learners got to experience what flying was like when they had an opportunity to go on a light airplane flip with the local Chief. The show was not only informative but also gave learners from Mhinga village an unforgettable experience that cost the SACAA just under R150 000 to host, with most of the cost accounted to travel expenses of technical and event logistics teams, as well as promotional gifts given to learners. The learner packs included a branded “upcoming aviator” back pack and a T-shirt.

#Africa40440

The SACAA advocates for women empowerment and for women who strive to succeed against all odds. The organisation invested R320 000 in support of the #Africa40440 campaign Kilimanjaro Climb. The #Africa40440 campaign was led by Masingita Masunga, the first woman living with Cerebral Palsy, attempting to summit Mount Kilimanjaro. She summited Mount Kilimanjaro on 16 June (Youth Day in South Africa and UN declared day of the African child) 2018 together with seven others. The climb is one of the 40 initiatives of the #Africa40440 campaign, launched as a fundraising vehicle for the establishment of the African Dream Village through 40 worthy initiatives to impact lives on the continent.

The African Dream Village will be established as a learning institution, geared towards the decolonisation of education and systems. It will benefit the needs of our continent economically and socially, building confidence through an education programme that celebrates African science, history and

technology, collapsing borders through sustainable, innovative problem-solving approaches and participating in the global village as an equal partner.

The climb is in honour of the African child of today and tomorrow, it is a message to an African child: “you can reach greater heights because there is no mountain that is too high for you!!!”

Maths and Science Programme

The organisation identified a Maths and Science tutoring programme as one vehicle that would contribute towards building a pipeline of young future aviators. The aim of this project is to directly contribute towards the transformation of the civil aviation industry by building a pipeline of young learners who can readily and successfully take up careers in aviation. The programme is meant to provide a solid understanding of Maths and Science, as this is the main requirements for future engineers and pilots. The programme will also ensure that learners participating in the programme will produce strong matric results, thereby standing a good chance of getting bursaries and being accepted for aviation-related careers. The aim is also to create a feeder programme of learners that may be targeted for the SACAA Bursary Programme. The organisation will build a long-term relationship with the products of this programme. Should the programme become a success, it will be rolled out in all the provinces; however, as a start, the organisation has partnered with a Gauteng-based Non-Governmental Organisation (NGO).

The Director of Civil Aviation approved the motivation to establish a Maths and Science Programme for the SACAA. The estimated budget for the rolling out of the programme in the new financial year is R750 000.


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Transformation and career awareness activities

In a quest to mitigate the slow pace of transformation in the aviation industry, the SACAA has adopted a multi-pronged approach that includes, among others, a career awareness programme. Other initiatives include financial aid for training, as well as the implementation of skills programmes. These are outlined in detail under the Human Resources section of this annual report. The schools outreach programme is critical in exposing historically disadvantaged individuals to careers in aviation. During the year under review, the SACAA visited 568 schools in the nine (9) provinces, which resulted in an interaction with 49 858 learners. Most of the schools visited are based in the remote rural areas.

Aviation development School Career Awareness Programme: 01 April 2018 - 31 March 2019

Limpopo

Eastern Cape

Western Cape

GautengMpumalanga

KwaZulu-Natal

Northern Cape

Free State

North West

Matatiele: 16-20 Apr ‘1810 2 006

Number of Schools

Number of Learners

Danhauser and Utrecht: 01-07 Jun ‘1812 894

Mthatha (Mthatha Air Show): 30 Jun ‘1810 1 000

Sub-Total Quarter 1183 19 514

Mhinga Village: 15 Jun ‘1810 250

Polokwane: 16-20 Apr ‘1892 7 625

Pretoria (Zwartkop Air Show): 04-05 May ‘1814 1 000

Kempton Park (SAA Youth Summit): 11 Jun ‘1808 400

Nkomazi: 25 May ‘1802 2 500

Malelane: 07-12 May ‘1815 2 963

Langa, Groenvlei and Athlone: 23-27 Apr ‘1810 876

Quarter 1


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Limpopo

Eastern Cape

Western Cape

GautengMpumalanga

KwaZulu-Natal

Northern Cape

Free State

North West

Number of Schools

Number of Learners


Quarter 2

Belfast: 16-18 Aug ‘1806 400

Fouriesburg, Clarens: 19-23 Sep ‘1812 1 575

Lephalale: 07 Sep ‘1822 899

Queenstown: 01-04 Jul ‘1810 250

Pongola: 20-24 Aug ‘1815 1 400

Masemola: 30 Jul – 03 Aug ‘1815 1 675

Westonaria: 21 Jul ‘1816 875

Orange Farm: 03-11 Sep ‘1812 1 843

Johannesburg: 21 Sep ‘1810 250

Pretoria: 19-23 Sep ‘18100 9 500


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Limpopo

Eastern Cape

Western Cape

GautengMpumalanga

KwaZulu-Natal

Northern Cape

Free State

North West

Quarter 3 & 4

Number of Schools

Number of Learners

Unregistered Schools



Totals568 49 858

West Coast Schools & Bonteheuwel: 04-09 Feb ‘1922 2 828

Lejweleputswa: 18-21 Feb ‘1960 4 758

Mkomaas, Mzinto, and Mtwalume: 25 Feb – 01 Mar ‘1912 613

Khayelitsha: 27 Oct ‘18- 07

Stellenbosch: 03 Nov ‘18- 05

Midrand: 27 Feb ‘1903 27

Capricorn North: Moloto, Moletjie, Maleboho, Bochum, Bahlaloga: 04-08 Mar ‘1913 1294

Benoni: 05 Oct ‘18- 45

Newtown: 22-26 Oct ‘1810 750

Nelspruit: 07-08 Dec ‘1847 1 350

Table 18: School career awareness programme

Sub-Total - 57

Human Resources

PARt


PART D - Human Resources


The Human Resource Division (HRD) is responsible for managing all employee-related matters and programmes. These include, among others, policy administration, recruitment, the administration of employee benefits, skills development as well as talent management. The HR Division is also responsible for leadership development, performance management, organisational culture alignment, the management of employee rewards and recognition, employee wellness, the management of the employee value proposition, as well as the management of the bursary, internship and trainee development programmes. The SACAA prides itself for continuing to implement best-practice HR programmes in order to attract and sustain a high-performing workforce and to retain the best talent.

Performance Management

The SACAA continues to drive a high-performance culture through its mature performance management system, which cascades and ties strategic goals with the divisional, departmental, and employees’ objectives. This automated performance management system has the capability of monitoring performance management through the reports that give insights into performance in the organisation. The full usage will be realised in 2019/2020.

Leadership Development

The focus during the 2018/2019 financial year was on the implementation of the three-tier leadership development programme. All levels of leadership went through the programme;

and it is pleasing to report that Senior Managers and Middle Managers completed their respective programmes. The Executive team will be completing their programme in the 2019/2020 financial year. In addition to the leadership programme, Executives and Senior Managers went through an individual leadership coaching programme. Moreover, the Executive team undertook a group coaching programme.

Organisational Culture

The focus in this financial year was on the implementation of the culture harmonisation and institutionalisation programme aimed at the alignment of the current and the desired culture. The implementation incorporated the development and implementation culture guide, culture workshops and alignment of HR programmes such as induction, awards and recognition. The implementation was underpinned by a robust change programme, which will continue into the new financial year.

Talent Management

The SACAA has adopted an integrated talent management strategy, which is aimed at creating an environment where talent in the organisation is developed and remains engaged. In this regard, the various SACAA divisions focused on the implementation of talent engagement plans, which form part of the institutionalisation of the talent engagement initiatives.

Overview of human resources matters




The implementation of the targeted development initiatives identified during the talent plotting process, and which were started during the 2017/2018 financial year, continued for the talent pool that had been identified for critical and scarce positions. Furthermore, the mentorship programme was implemented for the identified managers in the succession pool. The SACAA Executives who had been trained on mentorship and coaching were paired with the identified Managers and they provided the necessary mentorship. This was the first time that the organisation implemented such a programme, which has since proven to be a success with the mentees. The mentorship programme will continue into the new financial year, as feedback from mentees indicates that they benefited from it tremendously.

Employee Value Proposition

The results of the annual Universum Most Attractive Employer Survey were published during the first quarter of the reporting period. The SACAA was ranked among the Top 100 Most Attractive Employers by both engineering and technology professionals and students. Valuable insights were received from the survey results, which were used to enhance the SACAA employee value proposition. The information was also used to create an employer brand repositioning plan that culminated in the implementation of several initiatives to support the strategy from both an internal and external perspective.

Towards the end of the financial year, the survey opened for submissions and the results will be published in the first quarter of the new financial year. It is envisaged that the initiatives implemented thus far will most likely help the SACAA to move further up the rankings.

Bursary Programme

The SACAA continued to implement the bursary programme, which entails the financial assistance of students pursuing studies and training in the following fields: Pilot Training Programme, Aeronautical Engineering, and Aircraft Maintenance Engineering. A total of twenty-seven (27) bursary students participated in the programme during the 2018/2019 financial year. Twelve (12) of the students started their training during Quarter 4 of the financial year.

This bursary programme is aimed at providing opportunities, especially for the previously disadvantaged youth, to enter the aviation industry and contribute towards the transformation objectives of the SACAA. The SACAA further signed an agreement with École Nationale de Aviation Civile (ENAC), and in accordance with this agreement the SACAA sent five (5) students Cadet Pilot students to France. The students went through a stringent selection process, and the successful candidates left for ENAC in Toulouse in February 2019 to commence with their two-year training programme.

“The SACAA ranks among the top 100 most attractive employers”




Internship programme

The internship programme was established to provide young graduates with an opportunity to gain work experience and to provide practical exposure for students who are studying towards a qualification that requires experiential learning. The SACAA hosted a total of thirty-two (32) interns, in various fields, during the period April 2018 to March 2019.

Employee wellness

During the year under review, an Employee Assistance Programme (EAP) was successfully implemented, and focused on the psychosocial, physical, and mental wellbeing of employees. Other services on offer included the management of chronic disease, disability management, financial wellness, as well as the management of poor performance. Employees also received wellness support on matters relating to psychosocial issues, such as marriage and family problems, work challenges, addiction problems, trauma, legal matters, as well as financial management matters.

Employee rewards and recognition

As one of its principles, the SACAA continued striving to reward its employees fairly, equitably, and consistently in accordance with the SACAA value system. The SACAA has created an environment that attracts, retains and motivates employees to perform in alignment with the SACAA’s goals. During the year under review, the SACAA embarked on the next phase of the salary normalisation project to improve salary equity and fairness in the organisation. The salary normalisation journey will proceed into the new financial year to ensure continuous improvement in remuneration practices. The SACAA recognised the outstanding performance of employees and rewarded deserving employees with annual incentives. This included the hosting of an Employee Awards event, which had been created to give recognition to those employees who have performed over and above the required standard.

Trainee programme

The SACAA implemented a trainee programme with the appointment of six (6) trainees in the organisation. The programme is designed to contribute to the transformation imperatives of the SACAA and to address the scarce skills challenge currently being experienced by the organisation and the industry. All the trainees are required to complete the training programme that has been specifically tailored to the area in which they have been appointed. The programme includes formal and on-the-job training.

Employee relations

The SACAA continues to ensure transparency in terms of engagements with its staff, in order to ensure sound employee relations. In addition, the SACAA subscribes to freedom of association in line with the provision of the Constitution of the Republic of South Africa, Act No 108 of 1996 and the Labour Relations Act, No 66 of 1995. To this end, the SACAA and NUMSA signed a Recognition Agreement in January 2016. In addition, the SACAA has initiated a process to review the current Recognition Agreement, and it is anticipated that the process will continue in the new financial year.

Human resource oversight statistics

This section of the report provides statistics in relation to various Human Resources activities and functions.

Personnel Costs by Division The personnel costs in the table below are inclusive of fixed and variable pay for permanent, fixed-term, and part-time contracted employees, as well as a stipend for bursars and interns. The amounts that follow relate to the payments made through payroll, and thus exclude temporary staff members employed through the services of recruitment agencies, as well as accruals and provisions as disclosed in the Annual Financial Statements.




Division Personnel expenditure

R

Personnel expenditure as a %

of total

Number of employees

Average personnel cost per employee

RAccident and Incident Investigations Division

21 117 986 5% 25 844 719

Aviation Infrastructure 45 025 198 10% 51 882 847Aviation Safety Operations 191 029 910 42% *223 856 636Aviation Security 39 236 804 9% 48 817 433Finance 42 959 127 9% *64 671 236Human Resources 19 403 379 4% *41 473 253Company Secretary 6 001 800 1% 5 1 200 360Legal and Aviation Compliance 24 546 587 5% 24 1 022 774Internal Audit 10 620 355 2% *10 1 062 036Flight Inspection Unit 10 254 650 2% 9 1 139 406Cape Town Regional Office 7 888 983 2% 9 876 554Corporate Services 41 974 898 9% **48 874 477Total 460 059 677 100% 557 825 960

Personnel cost by Division

*Thisnumberincludesfixed-termcontractors,internsandbursars.**ThisnumberincludestheofficeoftheDCA.

Table 25: Personnel cost by Division

Personnel costs by Salary band/level The personnel costs reflected in the table below depict all positions according to the different occupational levels in the organisation. The occupational levels are aligned to the Paterson grading system.

Band/level Personnel expenditure

R

% of personnel expenditure to

total

Number of employees

Average personnel cost per employee

RTop Management 6 477 415 1% 1 6 477 415 Senior Management 34 778 096 8% 10 3 477 810 Professional Qualified 120 743 475 26% 95 1 270 984Skilled 275 554 655 60% 335 822 551 Semi-skilled 20 018 677 4% 51 392 523 Unskilled 2 487 359 1% 65 38 267 Total 460 059 677 100% 557 825 960

Personnel cost by salary band/level

Table 26: Personnel cost by salary band/level




Performance rewards Performance rewards for the 2018/2019 financial year were implemented in August 2018, following approval from the SACAA’s Board of Directors.

Band/level Performance reward Personnel expenditure R

% of performance rewards to total

Top Management 1 1 806 498 3%Senior Management 10 7 153 596 11%Professional Qualified 91 20 100 134 31%Skilled 306 34 477 074 52%Semi-skilled 47 2 150 714 3%Unskilled 2 58 329 0%Total 457 65 746 345 100%

Performance rewards by salary band/level

Table 27: Performance rewards by salary band/level

Figure 04: Skills development cost

Skills development cost A total of R24 287 853 was spent on skills development during the 2018/2019 financial year. Of the employees that were trained, 82% were black employees, and in terms of gender 45% were female, and 27% of them were below the age of 35.

R24 287 854spent on skills development

2018/2019

82%

45%

27%Black employees

Below the age of 35

Females




Training costs per Division

Table 28: Training costs per Division

Division Personnel expenditure

R

Training expenditure*

R

Number of employees

trained

Average training cost per employee

RAccident and Incident Investigations Division

21 117 986 651 814 21 31 039

Aviation Infrastructure 45 025 198 1 240 703 40 31 018Aviation Safety Operations 191 029 910 6 185 806 128 48 326Aviation Security 39 236 804 1 536 433 44 34 918Finance 42 959 127 956 609 42 22 776Human Resources* 19 403 379 10 451 311 133 78 581Company Secretary 6 001 800 183 938 4 45 984Legal and Aviation Compliance 24 546 587 963 859 23 41 906Internal Audit 10 620 355 263 887 11 23 989Flight Inspection Unit 10 254 650 488 388 7 69 770Cape Town Regional Office** 7 888 983 - 4 -Corporate Services 41 974 898 1 365 106 46 29 676Subtotal 460 059 677 24 287 854 503 48 286

*This number includes training for interns and bursars.*The training expenditure for Human Resources includes expenditure for the Henley Programme and all bursary costs.**ThetrainingexpenditureforstaffmembersbasedintheCapeTownRegionalOfficeisallocatedintherespectivedivisionstowhichtheyreport.

Employment and Vacancies The filling of vacant positions in the organisation was in line with the targets determined in the Employment Equity Plan. Most of the fixed-term contracts in the organisation are positions within the technical divisions which are being filled permanently, as the fixed-term contracts expire. Employing people with a disability is still a priority, as it forms part of the employment equity plan.




Employment and vacancies per Division

Division 2017/2018 Number of

Employees

2018/2019 Approved

Posts

2018/2019 Number of employees

2018/2019 vacancies

% of vacancies

Accident and Incident Investigations Division

26 29 25 4 13.8

Aviation Infrastructure 47 55 51 4 7.3Aviation Safety Operations 209 248 223 25 10.1Aviation Security 41 51 48 3 5.9Finance 55 56 64 *(8) (14.3)Human Resources 36* 17 41 **(24) (141.2)Company Secretary 4 5 5 0 0.0Legal and Aviation Compliance 24 27 24 3 11.1Flight Inspection Unit 8 8 9 *(1) (12.5)Internal Audit 11 9 10 * (1) (11.1)

Cape Town Regional Office 9 2 9 * (7) (350.0)

Office of the DCA 3 3 2 1 33.3

Corporate Services 45 43 46 * (3) (7.0)

Total 518 553 557 **(4) (0.7)

*Thisnumberincludesfixed-termcontractemployeesandinterns.** The negative variance is due to the inclusion of interns and bursars.

Table 29: Employment and vacancies per Division

Employment Changes The table below reflects changes that took place during the period under review.

Level Employment at beginning of

period

Appointments Terminations Employment at end of the

periodTop Management 1 0 0 1Senior Management 10 0 0 10Professional Qualified and Middle Management 96 7 8 95Skilled 318 48 31 335Semi-skilled 59 8 16 51Unskilled 34 52 21 65Total 518 115 76 557

Thetotalnumberofappointmentsandterminationsincludesfixed-termcontractemployees,internsandbursars.

Table 30: Employment changes per salary band/level




Reasons for Staff Exits The diagram below indicates the attrition rate as well as the reasons for staff exiting the organisation. Information gained from the exit interviews feeds into the organisational retention plan.

1

28

5

19

22

Death

Resignation

Dismissal 0Retirement

Expiry of ContractEnd of Internship and Bursary Programmes

Total 75

*Thisnumberincludesfixed-termcontractors,interns,andbursars.

Diagram 03: Reasons for staff exits

Labour Relations: Misconduct and Disciplinary Action The figure below provides information around cases of misconduct and actions taken.

Figure 04: Misconduct and disciplinary action

Summary of misconduct and disciplinary action

2 2 1 0Verbal Warning Written Warning Final written Warning Dismissal

Nature of Disciplinary Action




Equity Targets and Employment Equity Status The following tables will detail the current status around employment equity in the organisation.

Employment equity status – male

Table 31: Employment equity status - male

*Thetablesincludefixed-termcontractemployeesbutexcludesinternsandbursars

Top ManagementCurrent Target0 0

African

Senior ManagementCurrent Target4 4

Professional QualifiedCurrent Target36 44

SkilledCurrent Target135 141

Semi-skilledCurrent Target9 9

UnskilledCurrent Target0 0


Coloured







Indian







White






TotalCurrent Target184 198







Employment equity status – female

*Thetablesincludefixed-termcontractemployeesbutexcludesinternsandbursars


African







Coloured







Indian







White










Table 32: Employment equity status - female




Top Management

Current Target0 0

Top Management

Current Target0 0

Senior Management

Current Target0 0

Senior Management

Current Target1 1

Professional Qualified

Current Target0 0

Professional Qualified

Current Target0 0

Skilled

Current Target3 0


Semi-skilled

Current Target1 0

Semi-skilled

Current Target2 3

Unskilled

Current Target0 0

Unskilled

Current Target0 0

Employment equity status – disabled staff



*Thetablesexcludefixed-termcontractors,internsandbursars.

Table 33: Employment equity status - disabled staff


PART E - Financial Statements

Consolidated Annual Financial Statements for the year ended 31 March 2019


Annual Financial Statements

PARt





IndexThe reports and statements set out below comprise the consolidated annual financial statements presented to the Parliament:

Index Page

Report of the Auditor-General 98 - 101

Accounting Authority’s Responsibilities and Approval 102 - 103

Audit and Risk Committee Report 104 - 107

Accounting Authority’s Report 108 - 111

Company Secretary’s Certification 112

Statement of Financial Position 113

Statement of Financial Performance 114

Statement of Changes in Net Assets 115

Cash Flow Statement 116

Consolidated Statement of Comparison of Budget and Actual Amounts 117 - 118

Notes to the Consolidated Annual Financial Statements 119 - 164





Opinion1. I have audited the consolidated and separate financial statements of the South African Civil Aviation Authority set out on

pages 113 to 164, which comprise the consolidated and separate statement of the financial position as at 31 March 2019, the consolidated and separate statement of financial performance, statement of changes in net assets, cash flow statement and statement of comparison of budget and actual amounts for the year then ended, as well as the notes to the consolidated and separate financial statements, including a summary of significant accounting policies.

2. In my opinion, the consolidated and separate financial statements present fairly, in all material respects, the financial position of the South African Civil Aviation Authority as at 31 March 2019, and its financial performance and cash flows for the year then ended in accordance with the Generally Recognised Accounting Practice (GRAP) and the requirements of the Public Finance Management Act (PFMA) of South Africa, 1999 (Act no. 1 of 1999).

Basis for opinion3. 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 consolidated and separate financial statements section of this auditor’s report.

4. I am independent of the group in accordance with sections 290 and 291 of the International Ethics Standards Board for Accountants’ Code of ethics for professional accountants (IESBA code), parts 1 and 3 of the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) and 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.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

ResponsibilitiesoftheAccountingAuthorityfortheconsolidatedandseparatefinancialstatements

6. The Board of Directors, which constitutes the accounting authority, is responsible for the preparation and fair presentation of the consolidated and separate financial statements in accordance with GRAP and the requirements of the PFMA, and for such internal control as the accounting authority determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error.

7. In preparing the consolidated and separate financial statements, the accounting authority is responsible for assessing the South African Civil Aviation Authority’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’sresponsibilitiesfortheauditoftheconsolidatedandseparatefinancialstatements8. My objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements as a whole

are free from 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 consolidated and separate financial statements.

9. A further description of my responsibilities for the audit of the consolidated and separate financial statements is included in the annexure to this auditor’s report.

Report on the audit of the annual performance report

Report of the Auditor-General to Parliament on South African Civil Aviation Authority





Introduction and scope10. 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 objectives presented in the annual performance report. I performed procedures to identify findings but not to gather evidence to express assurance.

11. 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/ measures 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.

12. 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 objectives presented in the annual performance report of the public entity for the year ended 31 March 2019:

Programmes/ objectives/ development priorities Pages in the annual performance report

Objective/Goal 1 – Regulate the aviation industry effectively and efficiently. 25

13. 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.

14. I did not raise any material findings on the usefulness and reliability of the reported performance information for this objective: • Goal 1 – regulate aviation industry efficiently and effectively

Other matters15. I draw attention to the matters below.

Achievement of planned targets16. Refer to the annual performance report on pages 26 to 35 for information on the achievement of planned targets for the year and

explanations provided for the over achievement of some targets.

Adjustment of material misstatements17. I identified material misstatements in the annual performance report submitted for auditing. These material misstatements were

on the reported performance information of Goal 1: regulate the aviation industry effectively and efficiently. As management subsequently corrected the misstatements, I did not raise any material findings on the usefulness and reliability of the reported performance information.

Report on the audit of compliance with legislation

Introduction and scope18. 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.

19. The material findings on compliance with specific matters in key legislations are as follows:

Procurement and contract management20. The total expenditure incurred on two contracts exceeded the original awarded contract price by an amount exceeding 15% of

the contract value without pre-approval from National Treasury, resulting in non-compliance with the National Treasury SCM Instruction note 3 of 2016/2017 and Treasury Regulations.

Other information





21. The accounting authority is responsible for the other information. The other information comprises the information included in the annual report which includes the General Information (DCA report), the audit committee’s report and human resource management information. The other information does not include the financial statements, the auditor’s report thereon and those selected objectives presented in the annual performance report that have been specifically reported in this auditor’s report.

22. 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. 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 objectives presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

23. 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 objectives presented in the annual performance report, or my knowledge obtained in the audit, or otherwise appears to be materially misstated.

24. If, based on the work I have performed on the other information obtained prior to the date of this auditor’s report, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Internalcontroldeficiencies25. 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 finding on compliance with legislation included in this report.

Financial and performance management

Compliance monitoringThere was a misinterpretation of requirements of the Treasury Instruction notes and Treasury Regulations which resulted in non-compliance with the PFMA.

Other reports26. I draw attention to the following engagements conducted by various parties that had, or could have, an impact on the matters

reported in the public entity’s financial statements, reported performance information, compliance with applicable legislation and other related matters. These reports did not form part of my opinion on the financial statements or my findings on the reported performance information or compliance with legislation.

27. There are investigations being conducted on the suspended senior manager in the supply chain management division and the manager in the information technology division. At the date of this report, the investigations were still ongoing.

28. Investigations are being conducted on the alleged cyber attacks on the entity’s information communication technology systems that were identified on 01 July 2019. At the date of this report, the investigations were still ongoing.

___________________________________Pretoria31 July 2019





Annexure – Auditor-General’s responsibility for the audit1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout

my audit of the consolidated and separate financial statements, and the procedures performed on reported performance information for selected objectives and on the public entity’s compliance with respect to the selected subject matters.

Financial statements

2. In addition to my responsibility for the audit of the consolidated and separate financial statements as described in this auditor’s report, I also

• identify and assess the risks of material misstatement of the consolidated and separate 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 public entity’s internal control;

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors, which constitutes the accounting authority;

• conclude on the appropriateness of the Board of Directors, which constitutes the accounting authority’s use of the going concern basis of accounting in the preparation of the consolidated and separate 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 Civil Aviation Authority’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 a public entity to cease continuing as a going concern; and

• evaluate the overall presentation, structure and content of the consolidated and separate financial statements, including the disclosures, and whether the consolidated and separate 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.





Accounting Authority’s Responsibilities and ApprovalThe Board is required by the Public Finance Management Act (Act No.1 of 1999), to maintain adequate accounting records and is responsible for the content and integrity of the consolidated annual financial statements and related financial information included in this report. It is the responsibility of the Board to ensure that the consolidated annual financial statements fairly present the state of affairs of the group as at the end of the financial year and the results of its operations and cash flows for the period then ended. The external auditors are engaged to express an independent opinion on the consolidated annual financial statements and were given unrestricted access to all financial records and related data.

The consolidated annual financial statements have been prepared in accordance with the Standards of Generally Recognised Accounting Practice (GRAP) including any interpretations, guidelines and directives issued by the Accounting Standards Board.

The consolidated annual financial statements are based upon appropriate accounting policies, consistently applied and supported by reasonable and prudent judgments and estimates.

The Board acknowledges that it is ultimately responsible for the system of internal financial control established by the group and places considerable importance on maintaining a strong control environment. To enable the Board to meet these responsibilities, the Board sets standards for internal control aimed at reducing the risk of error or fraud in a cost-effective manner. The standards include the proper delegation of responsibilities within a clearly defined framework, effective accounting procedures and adequate segregation of duties to ensure an acceptable level of risk. These controls are monitored throughout the group and all employees are required to maintain the highest ethical standards in ensuring that the group’s business is conducted in a manner that under all reasonable circumstances is above reproach. The focus of risk management in the group is on identifying, assessing, managing and monitoring all known forms of risk across the group. While the operating risk cannot be fully eliminated, the group endeavours to minimise it by ensuring that appropriate infrastructure, controls, systems and ethical behaviour are applied and managed within predetermined procedures and constraints.

The Board is of the opinion, based on the information and explanations given by management, that the system of internal control provides reasonable assurance that the financial records may be relied on for the preparation of the consolidated annual financial statements. However, any system of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement or fraud.

The Board has reviewed the group’s cash flow forecast for the year to 31 March 2020 and, in the light of this review and the current financial position, they are satisfied that the group has access to adequate resources to continue in operational existence for the foreseeable future.

Although the Board is primarily responsible for the financial affairs of the group, they are supported by the group’s external auditors.The external auditors are responsible for independently reviewing and reporting on the group’s consolidated annual financial statements. The consolidated annual financial statements have been examined by the group’s external auditors and their report is presented on page 98 to 100.





The consolidated annual financial statements set out on pages 113 to 164, which have been prepared on a going concern-basis, were approved by the Board on 31 July 2019 and were signed on its behalf by:

___________________ ___________________Mr E Khosa Mr S SooklalChairperson: SACAA Board Chairperson: Audit and Risk Committee

___________________Ms GNB KhozaDirector of Civil Aviation





Audit and Risk Committee ReportWe are pleased to present our report for the financial year ended 31 March 2019.

Audit and Risk Committee responsibility

The Audit and Risk Committee reports that it has complied with its responsibilities arising from section 50(1) and 51(1) of the PFMA and Treasury Regulations. The Audit and Risk Committee also reports that it has adopted appropriate formal terms of reference as its Audit and Risk Committee Charter, and has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.

The Audit and Risk Committee for 2018/19 comprised three non-executive members and was chaired by an independent non- executive member, Mr Surendra Sooklal from 1 April 2018 to 30 September 2018 and from 01 February 2019 to 31 March 2019. The Director of Civil Aviation, Chief Financial Officer, Chief Audit Executive, Executive: Corporate Services and the Auditor-General of South Africa all have a standing invitation to the Audit and Risk Committee meetings. The appointment of the Audit and Risk Committee members is confirmed annually at the Annual General Meeting by the Executive Authority.

Effective from 1 April 2018, the Minister of Transport appointed an interim Board for a period of six months and on 16 April 2018, the Interim Board appointed the following members to the Audit and Risk Committee:

Mr S Sooklal (Chairperson of Audit and Risk Committee) Prof NV Dyani-MhangoMr E Khosa

The term of the interim Audit and Risk Committee ended on 30 September 2018.

The Minister of Transport appointed a new Board, effective from 1 December 2018, and the following members were appointed to the Audit and Risk Committee by the Board on 1 February 2019:

Mr S Sooklal (Chairperson of Audit and Risk Committee) Mr M IndiaDr B Suckling

On an annual basis, the Audit and Risk Committee assesses the effectiveness of the Internal Audit activity against the criteria outlined below:• Achievement of the annual Internal Audit Plan;• Compliance with the Institute of Internal Auditors’ professional standards;• Achievement of reporting protocols through management to the audit and risk committee;• Timeliness of reporting of findings and activities;• Responsiveness to the changing business and operational environment;• Management’s acceptance of the internal audit findings;• Quality and relevance of the annual assessment reports;• Level of co-operation and interaction with other assurance providers within the agreed combined assurance approach;• Maintenance of adequate staffing and resource levels to achieve the annual Internal Audit Plan outcomes and meet the

requirements of the Internal Audit Charter; and• Meeting the budget allocated to the internal audit function.





Attendance of Audit and Risk Committee meetings (01 April 2018 to 30 September 2018)

Mr S Sooklal 3 out of 3

Prof NY Dyani-Mhango 3 out of 3

Mr E Khosa 1 out of 3

During the period under review, the Committee held four scheduled meetings. The chairperson of the Committee reports to the Board quarterly, with regard to the Committee’s deliberations, decisions and recommendations.

Attendance of Audit and Risk Committee meetings (01 February 2019 to 31 March 2019)

Mr S Sooklal 1 out of 1

Mr M India 1 out of 1

Dr B Suckling 1 out of 1

Work of the Committee in 2018/2019

At our meetings held during the financial year, the Committee focused on financial reporting, internal controls, internal audit, external audit, ICT governance, risk, ethics, compliance and combined assurance. The committee constantly received presentations from management which covered key accounting judgements and estimates, internal control and risk management. We also reviewed the committee’s own Terms of Reference, which were duly approved by the Board in April 2018.

The effectiveness of internal control

Internal Audit provides the Audit and Risk Committee with reasonable assurance that the internal controls are adequate and effective. 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. From the various reports of the internal and external auditors, we noted that matters which indicated any deficiencies in the system of internal control have been brought under management’s attention and corrective measures have been implemented. Accordingly, we can report that the systems of internal control over financial reporting for the period under review was adequate and effective.

Section 51(1)(a)(i) of the PFMA states that the Accounting Authority must ensure that the SACAA maintains an effective, efficient and transparent system of financial management, risk management and internal control.

Evaluationofconsolidatedannualfinancialstatements

The Audit and Risk Committee reviewed the consolidated annual financial statements of the SACAA and is satisfied that they comply with the accounting standards and that the accounting policies used, are appropriate. The consolidated annual financial statements were reviewed with the following focus:

• Significant financial reporting judgments and estimates contained in the consolidated annual financial statements;• Clarity and completeness of disclosure and whether disclosures made have been set properly in context;• Quality and acceptability of, and any changes in accounting policies and practices;• Compliance with accounting standards and legal requirements;• Significant adjustments and/or unadjusted differences resulting from the audit;





• Reflection of unusual circumstances or events and management’s explanation for the accounting treatment adopted;• Reasons for major year-on-year fluctuations;• Asset valuations and revaluations;• Calculation and levels of general and specific provisions;• Write-offs and reserve transfers; and• The basis for the going concern assumption.

Financial reporting

In addressing our key objective, which is to assist the SACAA through the Board, in ensuring the integrity of its financial statements, we reviewed the financial statements with both management and the external auditor, concentrating on:

• Compliance with financial reporting standards and governance reporting requirements;• Areas requiring significant judgments to be made in applying accounting policies;• The appropriateness of accounting policies;• The procedures and controls around estimates that are key to applying accounting policies; and• Whether the annual report and accounts, taken as a whole, is fair, balanced and understandable and provides information

necessary for stakeholders to assess the SACAA’s business model, strategy and performance.

The Committee focused on ensuring the integrity of the SACAA’s financial reporting and improving the financial controls framework and assessed the fair presentation of the financial statements.

Internal Audit

The Audit and Risk Committee is responsible for ensuring that the internal audit function is independent and has the necessary resources, standing and authority within the SACAA to enable it to discharge its duties. Furthermore, the Committee oversees co-operation between the internal and external auditors, and serves as a link between the Board of Directors and these functions and its audits.

The Audit and Risk Committee reviews and approves the three-year Internal Audit Plan annually. Internal Audit’s activities are measured against the approved internal audit plan and the Chief Audit Executive tables progress reports in this regard to the Committee on a quarterly basis.

The Audit and Risk Committee considered and recommended the internal audit charter for approval by the Board.

Furthermore, the Audit and Risk Committee monitored the implementation of the Combined Assurance Plan and Model to ensure the coordination and alignment of assurance activities across the various lines of defence, so that assurance has the appropriate depth and reach.

Whistle-blowing

In compliance with the Protected Disclosures Act, 2000, the SACAA has established and maintains an independent fraud hotline service. The Audit and Risk Committee wishes to report that, for the financial year under review, it received and dealt with all concerns or complaints, whether from within or outside of the SACAA, relating to the accounting practices, content or auditing of SACAA’s financial statements, the internal financial controls and other matters.

The Audit and Risk Committee has reviewed reports from the Chief Audit Executive on fraud and corruption and is satisfied with the progress and the implementation of the Fraud Framework. In March 2019, the Audit and Risk Committee reviewed the Whistleblowing Policy to ensure alignment to the legislative changes.





The quality of management and quarterly reports submitted in terms of the PFMA

The Committee further reports that, during the year under review, they were presented with regular quarterly management reports to enable them to:

• Monitor the integrity, accuracy and reliability of the financial position of the SACAA;• Review the management accounts of the SACAA to provide the Accounting Authority with an authoritative and credible view of

the SACAA’s financial position;• Review the disclosures made in the financial reports of the SACAA and the context in which statements on the financial health

of the SACAA are made;• Review all material information presented together with the management account; and • Compliance to the PFMA.

The quality of budgets submitted in terms of the PFMA

The Committee is satisfied that it received sufficient, reliable and timely information that enabled it to:

• Review and ensure that the annual budgets are balanced, credible and realistic against the approved business plans; and• Monitor and periodically review the implementation of the approved budget by the Board.

Auditor-General of South Africa

The Audit and Risk Committee met with the Auditor-General of South Africa to ensure that there are no unresolved issues.

The Audit and Risk Committee monitored the implementation of the action plan to address matters arising from the management report issued by the Auditor-General of South Africa for the 2017/2018 financial year. All the action items were closed by the end of the 2018/2019 financial year.

The Audit and Risk Committee concurs with, and accepts the conclusions and the audit opinion of the Auditor-General of South Africa on the consolidated annual financial statements and is of the view that the audited financial statements be accepted and read together with the report of the Auditor-General of South Africa.

___________________Mr S SooklalChairperson of the Audit and Risk CommitteeDate: 31 July 2019





Accounting Authority’s Report

The Board hereby submits its report for the year ended 31 March 2019.

1. Introduction

The Board presents its twenty-first Annual Report in terms of the Civil Aviation Act, 2009 (Act No. 13 of 2009), (previously governed by the South African Civil Aviation Authority (Act No. 40 of 1998)) and the Public Finance Management Act, 1999 (Act No. 1 of 1999) which forms part of the consolidated, audited annual financial statements for the year ended 31 March 2019.

2. Principal activities

Main business and operations

The South African Civil Aviation Authority (SACAA) is a statutory body which has the primary focus to control and regulate civil aviation in the Republic of South Africa and to oversee the functioning and development of the civil aviation industry.

The Civil Aviation Act, 2009, read in conjunction with the South African Civil Aviation Authority Levies Act, 1998 (Act No. 41 of 1998), enables the SACAA to charge a passenger safety charge on scheduled operations, a fuel levy on non-scheduled operations and general aviation, and charges for services rendered to the aviation industry, allowing it to generate revenue to fund its operations.

During the year, there were no major changes in the activities of the business.

The consolidated operating results and state of affairs of the group are fully set out in the financial statements and do not, in the opinion of the Board, require any further comment.

The Group and SACAA recorded a surplus of R1 352 326 and R2 070 280 respectively for the year ended 31 March 2019 (2018: R44 504 617 and R44 629 438).

3. Going concern

The consolidated annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

4. Events after the reporting date

The South African Civil Aviation Authority (SACAA) has taken over all the functions and operations, assets, liabilities and contingent liabilities of RAASA with effect from 01 April 2019.

The Board is not aware of any significant events that occurred after the reporting date that were not adjusted or disclosed in the consolidated annual financial statements. Furthermore, management is not aware of any circumstances that exist that would impede the group’s ability to continue as a going concern.





5. Accounting policies

The consolidated annual financial statements are prepared in accordance with the South African Statements of Generally Recognised Accounting Practice (GRAP), including any interpretations of such Statements issued by the Accounting Standards Board as the prescribed framework by National Treasury.

6. Accounting Authority

The members of the SACAA Board during the year and to the date of this report are as follows:

Name Interim Board Appointment of New Board

Mr E Khosa Appointed 1 April 2018 to 30 September 2018 Reappointed 1 December 2018

Mr MG India Appointed 1 April 2018 to 30 September 2018 Reappointed 1 December 2018

Prof NV Dyani-Mhango Appointed 1 April 2018 to 30 September 2018 Reappointed 1 December 2018

Mr S Sooklal Appointed 1 April 2018 to 30 September 2018 Reappointed 1 December 2018

Dr BC Suckling Appointed 1 April 2018 to 30 September 2018 Reappointed 1 December 2018

Ms T Phewa Appointed 1 April 2018 to 30 September 2018 Reappointed 1 December 2018

Mr SS Mokoena Appointed 1 April 2018 to 30 September 2018 Term ended 30 September 2018

Ms GNB Khoza* Appointed 1 December 2013 Reappointed 1 December 2018

Mrs GB Koyana Not applicable Appointed 1 December 2018

The Authority did not have a Board for the period 1 October 2018 to 30 November 2018.

* The Director of Civil Aviation’s initial five-year contract came to an end on 30 November 2018 and was renewed for a further five-year term, effective from 1 December 2018.

7. Company Secretary

The secretary of the SACAA is Ms N Naraindath, whose business and postal address are as follows:

Business address Ikhaya Lokundiza Building 16, Treur Close Waterfall Park, Bekker Street Midrand 1685

Postal address Private Bag X73 Halfway House 1685





8. Interests of Board Members

The Board members have, at each Board meeting, confirmed that they had no material personal interests in any transactions of any significance with the SACAA. Board members are required to sign a declaration of interest at every meeting attended. In addition, they are required to declare any conflict of interests annually and as and when there are changes. Accordingly, no conflict of interest with regard to directors’ interests in contracts was reported. There was no change in directors’ interests in the period between the financial year-end and the date of signature of this report.

9. Corporate governance

GeneralThe Board is committed to business integrity, transparency and professionalism in all its activities. As part of this commitment, the Board subscribes to the highest standards of corporate governance and the ongoing development of best practice.

The Board confirms and acknowledges its responsibility to apply the principles set out in the King IV Report on Corporate Governance for South Africa 2016. The Board discusses the responsibilities of management in this respect at Board meetings and monitors the SACAA’s compliance with the relevant legislative prescripts.

The salient features of the SACAA’s adoption of King IV are outlined below:

Board of DirectorsThe Board:

• retains full control over the SACAA, its plans and strategy;

• acknowledges its responsibilities as to strategy, compliance with internal policies, laws and regulations, effective risk management and performance measurement, transparency and effective communication with all stakeholders, both internally and externally by the SACAA;

• is of a unitary structure comprising:

• six non-executive directors, all of whom are independent directors as defined in King IV;

• one non-executive director who is an employee of the Department of Transport; and

• one executive director.

Chairperson and Director of Civil AviationThe Chairperson of the Board is a non-executive and independent director (as defined by King IV).

The roles of the Chairperson and the Director of Civil Aviation are distinct, with responsibilities divided between them, so that no individual has unfettered powers of discretion.

RemunerationThe Director of Civil Aviation is appointed by the Minister of Transport, who is the Executive Authority of the SACAA. In terms of the Civil Aviation Act, 2009, the Executive Authority determines the remuneration of the Director of Civil Aviation. The Board determines the Remuneration Policy and Strategy of the SACAA.





Board meetingsIn terms of the Board Charter, the Board meets at least five times per annum, and during the year under review the Board met on nine occasions. It has also successfully held the Board induction programmes, strategic planning and risk sessions.

Non-executive directors have access to all the members of management of the SACAA.

10. Controlled entities

The SACAA is the ultimate parent of the group. The SACAA has a controlling interest in Recreation Aviation Administration South Africa NPC (RAASA) through a contractual agreement.

The SACAA’s control relates to its power to govern the financial resources and operating policies of RAASA so as to obtain benefits from its activities. The SACAA also appoints four of the eight directors of RAASA including the chairperson, whilst receiving non-financial benefits as described below.

The RAASA is incorporated in South Africa in terms of the Companies Act, 2008 (Act No.71 of 2008). The purpose of RAASA is to ensure compliance with the South African Civil Aviation regulations affecting sport and recreational aviation and to liaise with non-profit bodies that represent sport aviation.

The SACAA has taken over all the functions and operations, assets, liabilities and contingent liabilities of RAASA with effect from 01 April 2019.

11. Auditors

In terms of the Public Audit Act, 2004 (Act No. 25 of 2004) as amended, specifically section 4 (3) provides that the Auditor-General may audit and report on the accounts and financial statements.

The Executive Authority confirmed the appointment of the Auditor-General as the external auditors of the SACAA at the Annual General Meeting held on 30 August 2018.

12. Number of Employees

The number of employees for the SACAA and group as at 31 March 2019 is 557 (2018: 518) and 575 (2018: 537) respectively, which includes permanent, fixed-term, part-time and contracted employees.

13. Materiality Framework

In terms of Treasury Regulation 28 (3) of the PFMA, the Board must develop and agree on a framework of acceptable levels of materiality and significance with the relevant Executive Authority.

The SACAA has developed a materiality framework whereby all material and significant information is disclosed to the Audit and Risk Committee, the Board and the Executive Authority on a quarterly basis.





Company Secretary’s Certification

In my capacity as Company Secretary, I hereby confirm that the SACAA has lodged all returns as required by the Public Finance Management Act, 1999 as amended, for the year ended 31 March 2019.

___________________Ms N NaraindathCompany SecretaryMidrand





Statement of Financial PositionAs at 31 March 2019Description Notes Group SACAA

2019

R

2018Restated*

R

2019

R

2018Restated*

R

AssetsCurrent AssetsCash and cash equivalents 3 300 107 608 306 339 587 299 699 631 305 564 494Trade and other receivables from non- exchange transactions

4 74 458 330 60 378 356 74 422 045 60 339 120

Trade and other receivables from exchange transactions

5 970 425 - 970 425 -

Consumable stores 6 1 078 845 - 1 078 845 -376 615 208 366 717 943 376 170 946 365 903 614

Non-Current AssetsProperty, plant and equipment 7 41 952 117 37 188 867 41 760 878 36 901 405Intangible assets 8 74 119 194 72 568 619 74 119 194 72 568 134

116 071 311 109 757 486 115 880 072 109 469 539Total Assets 492 686 519 476 475 429 492 051 018 475 373 153

LiabilitiesCurrent LiabilitiesTrade and other payables 10 76 430 368 76 813 518 75 814 257 76 448 586Operating lease liability 11 1 685 309 966 979 1 685 309 966 979Provisions 12 80 269 113 65 745 529 80 269 113 65 745 529Total Liabilities 158 384 790 143 526 026 157 768 679 143 161 094Net Assets 334 301 729 332 949 403 334 282 339 332 212 059

Total Net Assets 334 301 729 332 949 403 334 282 339 332 212 059

* See Note 31





For the year ending 31 March 2019Description Notes Group SACAA

2019

R

2018Restated*

R

2019

R

2018Restated*

R

RevenueRevenue from non-exchange transactions 14 681 447 669 628 737 320 679 595 417 627 020 626Interest revenue from exchange transactions

15 18 536 172 17 650 966 18 502 395 17 600 959

Other revenue from exchange transactions 16 4 935 177 3 157 782 4 811 230 3 002 638Total revenue 704 919 018 649 546 068 702 909 042 647 624 223

ExpenditurePersonnel cost 17 (477 222 605) (421 084 505) (470 668 047) (415 354 196)Operating expenses 18 (174 587 675) (137 943 166) (179 104 012) (142 317 750)Lease rentals on operating lease (31 041 656) (27 721 422) (30 532 089) (27 241 031)Depreciation and amortisation (8 973 056) (10 141 193) (8 877 611) (10 027 466)Finance costs 19 (272) (5 647) - (5 448)Repairs and maintenance 7 (10 364 708) (8 262 298) (10 281 546) (8 176 083)Bad debts written off 20 (1 016 912) (2 640 396) (1 016 912) (2 640 396)(Increase)/decrease in debt impairment provision

20 (246 370) 3 366 404 (246 370) 3 366 404

Total expenditure (703 453 254) (604 432 223) (700 726 587) (602 395 966)Operating surplus 1 465 764 45 113 845 2 182 455 45 228 257Loss on disposal of assets (113 438) (609 228) (112 175) (598 819)Surplus for the year 1 352 326 44 504 617 2 070 280 44 629 438

* See Note 31

Statement of Financial Performance





Statement of Changes in Net AssetsFor the year ending 31 March 2019Description Accumulated

SurplusR

Total Net Assets

R

GROUPOpening balance as previously reported 289 814 344 289 814 344Correction of prior period error (refer to note 31) (1 369 558) (1 369 558)Balance at 01 April 2017 as restated 288 444 786 288 444 786Changes in net assetsSurplus for the year as previously stated 46 330 694 46 330 694Correction of prior period error (refer to note 31) (1 826 077) (1 826 077)Total changes 44 504 617 44 504 617Balance at 01 April 2018 as restated 332 949 403 332 949 403Changes in net assetsSurplus for the year 1 352 326 1 352 326Total changes 1 352 326 1 352 326Balance at 31 March 2019 334 301 729 334 301 729

SACAAOpening balance as previously reported 288 952 179 288 952 179Correction of prior period error (refer to note 31) (1 369 558) (1 369 558)Balance at 01 April 2017 as restated 287 582 621 287 582 621Changes in net assetsSurplus for the year as previously stated 46 455 515 46 455 515Correction of prior period error (refer to note 31) (1 826 077) (1 826 077)Total changes 44 629 438 44 629 438Balance at 1 April 2018 as restated 332 212 059 332 212 059Changes in net assetsSurplus for the year 2 070 280 2 070 280Total changes 2 070 280 2 070 280Balance at 31 March 2019 334 282 339 334 282 339





Cash Flow StatementFor the year ending 31 March 2019Description Notes Group SACAA

2019R

2018R

2019R

2018R

Cash flows from operating activitiesReceiptsReceipts from customers and Department of Transport

670 069 165 633 271 892 668 090 015 631 375 581

Interest revenue 15 18 536 172 17 650 966 18 502 395 17 600 959688 605 337 650 922 858 686 592 410 648 976 540

PaymentsPayments made to suppliers and employees

(679 436 727) (570 661 917) (677 056 956) (568 715 605)

Finance costs 19 (272) (5 647) - (5 448)(679 436 999) (570 667 564) (677 056 956) (568 721 053)

Netcashinflowsfromoperatingactivities

23 9 168 338 80 255 294 9 535 454 80 255 487

Cash flows from investing activitiesPurchase of property, plant and equipment 7 (11 113 945) (6 226 352) (11 113 945) (6 216 387)Proceeds from sale of property, plant andequipment

279 135 74 979 279 135 74 979

Purchase of intangible assets 8 (4 565 507) (16 228 614) (4 565 507) (16 228 614)Netcashflowsfrominvestingactivities (15 400 317) (22 379 987) (15 400 317) (22 370 022)

Net (decrease)/increase in cash and cash equivalents

(6 231 979) 57 875 307 (5 864 863) 57 885 465

Cash and cash equivalents at the beginning of the year

306 339 587 248 464 280 305 564 494 247 679 029

Cash and cash equivalents at the endof the year

3 300 107 608 306 339 587 299 699 631 305 564 494





Consolidated Statement of Comparison of Budget and Actual AmountsFor the year ending 31 March 2019Budget on Accrual Basis

Approvedbudget

Adjustments Final Budget

Actualamounts oncomparable

basis

Differencebetween

final budgetand actual

Notereference

R R R R R

GROUPStatement of Financial PerformanceRevenueRevenue from exchange transactionsInterest received 13 432 333 483 133 13 915 466 18 536 172 4 620 706 35Other income 3 933 022 2 015 572 5 948 594 4 935 177 (1 013 417) 35Total revenue from exchange transactions

17 365 355 2 498 705 19 864 060 23 471 349 3 607 289

Revenue from non-exchange transactions Transfer revenuePassenger safety charge

539 419 246 (242 128) 539 177 118 532 263 061 (6 914 057) 35

User fees 104 707 164 (2 026 485) 102 680 679 101 678 621 (1 002 058)Fuel levy 30 315 837 (2 203 291) 28 112 546 25 583 055 (2 529 491) 35Accident and incident investigation

21 922 932 - 21 922 932 21 922 932 -

Total revenue from non-exchange transactions

696 365 179 (4 471 904) 691 893 275 681 447 669 (10 445 606)

Total revenue 713 730 534 (1 973 199) 711 757 335 704 919 018 (6 838 317)





For the year ending 31 March 2019

Budget on Accrual Basis

Approvedbudget

Adjustments Final Budget

Actualamounts oncomparable

basis

Differencebetween

final budgetand actual

Notereference

R R R R R

ExpenditurePersonnel cost (499 328 296) 13 708 117 (485 620 179) (477 222 605) 8 397 574 35Operating expenses (165 004 269) (5 214 357) (170 218 626) (174 587 675) (4 369 049) 35Lease rentals on operating lease

(30 233 333) (12 076) (30 245 409) (31 041 656) (796 247)

Depreciation and amortisation

(21 142 001) 7 842 736 (13 299 265) (8 973 056) 4 326 209 35

Finance costs (5 300 441) 2 645 195 (2 655 246) (272) 2 654 974 35Repairs and maintenance

(8 495 498) (27 813) (8 523 311) (10 364 708) (1 841 397) 35

Bad debts written off - - - (1 016 912) (1 016 912) 35Increase in debt impairment provision

- - - (246 370) (246 370) 35

Total expenditure (729 503 838) 18 941 802 (710 562 036) (703 453 254) 7 108 782Operating(deficit)/surplus

(15 773 304) 16 968 603 1 195 299 1 465 764 270 465

Loss on disposal of assets

- - - (113 438) (113 438) 35

(Deficit)/surplusforthe year

(15 773 304) 16 968 603 1 195 299 1 352 326 157 027

Actual Amount on Comparable Basis as Presented in the Budget and Actual Comparative Statement

(15 773 304) 16 968 603 1 195 299 1 352 326 157 027

Consolidated Statement of Comparison of Budget and Actual Amounts (continued)





Notes to the Consolidated Annual Financial Statements – Accounting Policies1. Presentation of Consolidated Annual Financial Statements

The consolidated annual 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 122(3) of the Public Finance Management Act (Act No.1 of 1999).

The consolidated annual financial statements have been prepared on an accrual basis of accounting and are in accordance with the historical cost convention as the basis of measurement. They are presented in South African Rand, which is the functional currency of the group.

These financial statements were prepared, based on the expectation that the group will continue to operate as a going concern for at least the next twelve months.

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

1.1 Consolidation

Basis of consolidationThe group controls and consolidates an entity where the group has the power to govern the financial and operating policies of another group entity so as to obtain benefits from its activities.

The results of controlled entities are included in the consolidated annual financial statements from the effective date of acquisition or date when control commences, to the effective date of disposal or date when control ceases. The difference between the proceeds from the disposal of the controlled entity and its carrying amount as of the date of disposal is recognised in the consolidated statement of financial performance as the surplus or deficit on the disposal of the controlled entity.

The consolidated annual financial statements of the group and its controlled entities used in the preparation of the consolidated annual financial statements are prepared as of the same reporting date.

Adjustments are made when necessary to the consolidated annual financial statements of the controlled entities to bring their accounting policies in line with those of the SACAA.

All intra-entity transactions, balances, revenues and expenses are eliminated in full on consolidation.

1.2Significantjudgmentsandaccountingestimates

In preparing the consolidated annual financial statements, management is required to make estimates and assumptions that affect the amounts represented in the consolidated annual financial statements and related disclosures. The use of available information and the application of judgment are inherent in the formation of estimates. Actual results in the future could differ from these estimates, which may be material to the consolidated annual financial statements as new information becomes known, circumstances change or more experience is obtained. Significant judgments include:





1.2Significantjudgmentsandaccountingestimates|CONTINUED

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

Management has applied judgement in estimating the extent of any impairment deemed necessary on the gross carrying value of loans and receivables and has impaired all doubtful accounts in arrears for a period longer than normal expected trading terms. The impairment loss is recognised in surplus or deficit when there is objective evidence that it is impaired.

Fair value estimationThe carrying value less impairment provision of trade receivables and payables are assumed to approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash flows at the current market interest rate that is available to the group for similar financial instruments.

Impairment testingA cash-generating or non-cash-generating asset is impaired when the carrying amount of the asset exceeds its recoverable amount. These calculations require the use of estimates and assumptions. It is reasonably possible that the assumption may change, which may then have an impact on our estimations and may then require a material adjustment to the carrying value of tangible assets.

The group reviews and tests the carrying value of assets when events or changes in circumstances suggest that the carrying amount may not be recoverable. Assets are grouped at the lowest level at which identifiable cash flows are largely independent of cash flows of other assets and liabilities. If there are indications that impairment may have occurred, estimates are prepared of expected future cash flows for each group of assets. Expected future cash flows used to determine the value in use of tangible assets are inherently uncertain and could materially change over time.

Useful lives of property, plant and equipmentThe entity determines the estimated useful lives and related depreciation charges for property, plant and equipment. This estimate is based on industry norms. Management will increase the depreciation charge where useful lives are less than previously estimated useful lives.

In estimating the useful lives of the assets, management assesses the present status of the assets and the expected future benefits associated with the continued use of the assets.

ProvisionsProvisions were raised and management determined an estimate based on the information available, as well as past experience. Additional disclosure of these estimates of provisions is included in the Notes to the Annual Financial Statements under Provisions (Note 12).

1.3 Property, plant and equipment

Property, plant and equipment are tangible non-current 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 group; and• the cost of the item can be measured reliably.





1.3Property,plantandequipment|CONTINUED

Property, plant and equipment are 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.

When significant components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. The major components are depreciated separately over their useful lives.

Costs include costs incurred initially to acquire or construct an item of property, plant and equipment and costs incurred subsequently to add to, or replace part of it.

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.

Items such as spare parts, standby equipment and servicing equipment are recognised when they meet the definition of property, plant and equipment.

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

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

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

Aircraft Group2019 2018

Calibration equipment 15 - 27 years 15 - 27 years

Furniture, fixtures and canteen equipment 6 - 22 years 4 - 21 years

Computer equipment 5 - 17 years 5 - 16 years

Generator and motor vehicles 6 - 15 years 6 - 15 years

Leasehold improvements Period of lease Period of lease

Aircraft 2019 2018

Airframe 6 years 7 years

Left engine 751 hours 1 046 hours

Right engine 805 hours 1 099 hours

Avionics 2.5 years 3.5 years

Undercarriage 18 051 cycles 18 205 cycles

Interior 1 year 1 year





1.3Property,plantandequipment|CONTINUED

The assets’ residual values, useful lives and depreciation methods are reviewed at the end of each reporting date and change(s) is/are accounted for as a change in accounting estimate in accordance with the relevant standard of GRAP.

Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately.

The depreciation charge for each period is recognised in surplus or deficit.

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.

1.4 Intangible assets

An intangible asset is identifiable if it either:

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

• arises from binding arrangements (including rights from contracts), regardless of whether those rights are transferable or separable from the group 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 group; and

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

The group 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.

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. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit.

Amortisation is provided to write off the cost of the intangible assets over their estimated useful lives, using the straight-line method.

Group2019 2018

Computer Software 5 - 24 years 5 - 17 years





Class Category

Trade and other receivables Financial asset measured at amortised cost

Cash and cash equivalents Financial asset measured at amortised cost

The group has the following types of financial liabilities (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

Class Category

Trade and other payables Financial liability measured at amortised cost

Operating lease liability Financial liability measured at amortised cost

1.4Intangibleassets|CONTINUED

Intangible assets are derecognised:

• on disposal; or• when no future economic benefits or service potential are expected from its use or disposal.

The gain or loss arising from the derecognition of an intangible assets is included in surplus or deficit when the asset is derecognised.

1.5 Financial instruments

Classification

The group has the following types of financial assets (classes and category) as reflected on the face of the statement of financial position or in the notes thereto:

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

The group recognises financial assets using trade date accounting.

InitialmeasurementoffinancialassetsandfinancialliabilitiesThe group 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.

SubsequentmeasurementoffinancialassetsandfinancialliabilitiesThe group measures all financial assets and financial liabilities after initial recognition using the following categories:

• Financial instruments at fair value.• Financial instruments at amortised cost.• Financial instruments at cost.

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

Gains and lossesFor 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.





1.5Financialinstruments|CONTINUED

ImpairmentanduncollectibilityoffinancialassetsThe group assesses at the end of each reporting period whether there is any objective evidence that a financial asset or group of financial assets is impaired.

Objective evidence of impairment includes:

• long overdue amounts for which further collection procedures have been regarded as uneconomical;• information received about the debtor indicating their inability to settle the debt; or• legal action has been instituted to recover the amount owing.

Financial assets measured at amortised cost:

If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount of the asset is reduced directly. The amount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly. The reversal does not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date when the impairment is reversed. The amount of the reversal is recognised in surplus or deficit.

Derecognition

Financial assetsThe group derecognises a financial asset only when:

• the contractual rights to the cash flows from the financial asset expire, are settled or waived;• the group transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or• the group, 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 group:

• derecognises the asset; and• recognises separately any rights and obligations created or retained in the transfer.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the consideration received is recognised in surplus or deficit.

Financial liabilitiesThe group 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 is discharged, cancelled, expires or is waived.

An exchange between an existing borrower and lender of debt instruments with substantially different terms is accounted for as having extinguished the original financial liability and a new financial liability is recognised. Similarly, a substantial modification of the terms of an existing financial liability or a part of it is accounted for as having extinguished the original financial liability and having recognised a new financial liability.





1.5Financialinstruments|CONTINUED

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in surplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange Transactions (Taxes and Transfers).

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

Dividends or similar distributions 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 is 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 group 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.

1.6 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 group assesses the classification of each element separately.

Finance leases - lesseeFinance leases are recognised as assets and liabilities in the statement of financial position at amounts equal to the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

The discount rate used in calculating the present value of the minimum lease payments is the interest rate implicit in the lease.

Minimum lease payments are apportioned between the finance charge and reduction of the outstanding liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of return on the remaining balance of the liability.

Any contingent rents are expensed in the period in which they are incurred.

The finance lease liabilities are derecognised when the entity’s obligation to settle the liability is extinguished. The assets capitalised under the finance lease are derecognised when the group no longer expects any economic benefits or service potential to flow from the asset.

Operating leases - lesseeOperating 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.

The operating lease liability is derecognised when the group’s obligation to settle the liability is extinguished. The operating lease asset is derecognised when the group no longer anticipates economic benefits to flow from the asset.





1.7 Consumable stores

Consumable stores are initially measured at cost, except where consumable stores are acquired through a non-exchange transaction, then their costs are their fair value as at the date of acquisition.

Consumable stores comprise of ID licence cards held for issuance to the aviation stakeholders and various people in the aviation value chain.

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

1.8 Impairment of cash-generating assets

Cash-generating assets are assets managed with the objective of generating a commercial return. A commercial return means that future 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 managed with the objective of generating a commercial return that generates cash inflows from continuing use that is 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.

A 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:

(a) the period of time over which an asset is expected to be used by the group; or(b) the number of production or similar units expected to be obtained from the asset by the group.

Criteria developed by the group to distinguish cash-generating assets from non-cash-generating assets are as follows:

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

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





1.8Impairmentofcash-generatingassets|CONTINUED

An impairment loss recognised in prior periods for a cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

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

Any reversal of an impairment loss of a revalued cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

1.9 Impairment of non-cash-generating assets

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.

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.

A recoverable amount of an asset or a non-cash-generating unit is the higher of its fair value less costs to sell and its value-in-use.

Useful life is either:

(a) the period of time over which an asset is expected to be used by the group; or(b) the number of production or similar units expected to be obtained from the asset by the group.

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

The group 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 group estimates the recoverable service amount of the asset.

Reversal of an impairment lossThe group assesses 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 group estimates the recoverable service amount of that asset.





1.9Impairmentofnon-cash-generatingassets|CONTINUED

An impairment loss recognised in prior periods for a non-cash-generating asset is reversed if there has been a change in the estimates used to determine the asset’s recoverable service amount since the last impairment loss was recognised. The carrying amount of the asset is increased to its recoverable service amount. The increase is a reversal of an impairment loss. The increased carrying amount of an asset attributable to a reversal of an impairment loss does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised for the asset in prior periods.

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

Any reversal of an impairment loss of a revalued non-cash-generating asset is treated as a revaluation increase.

After a reversal of an impairment loss is recognised, the depreciation (amortisation) charge for the non-cash-generating asset is adjusted in future periods to allocate the non-cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

1.10Employeebenefits

Employee benefits are all forms of consideration given by the group in exchange for services rendered by employees.

Short-termemployeebenefitsShort-term employee benefits are employee benefits payable within the financial year or 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 group during a reporting period, the group recognises 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 group recognises 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.

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 group measures the expected cost of accumulating compensated absences as the additional amount that the Group expects to pay as a result of the unused entitlement that has accumulated at the reporting date.

The group recognises the expected cost of bonus, incentive and performance-related payments when the group 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 Group has no realistic alternative but to make the payments.





1.10Employeebenefits|CONTINUED

Post-employmentbenefits:Definedcontributionplans

The SACAA provides post-employment benefits for its employees. Defined contribution plans are post-employment benefit plans under which the group pays fixed contributions into a separate 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 group during a reporting period, the group recognises the contribution payable to a defined contribution plan in exchange for that service:

• as a liability (accrued expense), after deducting any contribution already paid; and• as an expense, unless another Standard requires or permits the inclusion of the contribution in the cost of an asset.

1.11 Provisions and contingencies

Provisions are recognised when:

• the group has a present obligation as the result of a past event;• it is probable that an outflow of resources embodying economic benefits or service potential will be required to settle 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.

Provisions are reviewed at each reporting date and adjusted to reflect the current best estimate. Provisions are reversed if it is no longer probable that an outflow of resources embodying economic benefits or service potential will be required, to settle the obligation.

A provision is used only for expenditures for which the provision was originally recognised.

Provisions are not recognised for future operating deficits.

If the group has a contract that is onerous, the present obligation (net of recoveries) under the contract is recognised and measured as a provision.

Contingent assets and contingent liabilities are not recognised. Contingencies are disclosed in note 25.

1.12 Revenue recognition 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.

An exchange transaction is one in which the Group receives assets or services, or has liabilities extinguished, and directly gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

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.





MeasurementRevenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume rebates.

Other incomeOther income comprises of fees that are collected and not related to the mandate of the SACAA.

InterestRevenue arising from the use by others of the group’s assets yielding interest is recognised when:

• it is probable that the economic benefits or service potential associated with the transaction will flow to the group, and• the amount of the revenue can be measured reliably.

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

1.13 Revenue recognition from non-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.

Non-exchange transactions are defined as transactions where the group receives value from another entity without directly giving approximately equal value in exchange.

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.

MeasurementThe invoice value of sales and services rendered, excluding value-added tax in respect of trading operations, is recognised at the date on which services are provided.

The safety charge is based on the number of passengers on scheduled services departing from all airports in the country. This data is obtained from the scheduled airlines and verified by data received from airports.

Fuel levies are based on litres of aviation fuel sold by fuel wholesalers and verified biannually by independent external auditors appointed by SACAA.

Accident and incident investigation fees are received from the Department of Transport on a cost-recovery basis negotiated annually in advance.

User fees are generated from examinations, licence renewals, certifications, airworthiness and calibrations. The revenue is recognised when the service is rendered.

1.14 Translation of foreign currencies

Foreign currency transactionsA 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.

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 consolidated annual financial statements are recognised in surplus or deficit in the period in which they arise.





1.14Translationofforeigncurrencies|CONTINUED

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.

1.15 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is 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.

1.16 Irregular expenditure

Irregular expenditure is expenditure that is contrary to the Public Finance Management Act (PFMA) or in contravention of the group’s supply chain management policies. Irregular expenditure excludes unauthorised expenditure. Irregular expenditure is disclosed as such in the notes to the annual financial statements and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.17 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 on which reports are made 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.

The SACAA is a statutory body, which has the primary focus to control and regulate civil aviation in the Republic of South Africa and to oversee the functioning and development of the civil aviation industry. Although revenues do have certain streams, they are not related to any segments or specific divisions within SACAA. SACAA’s expenditure relates mainly to salaries and the rest relates to operational activities and cannot be linked to any specific segments. Resources are not allocated, nor is reporting done or performance measured for any separate activities.

Management is of the opinion that any attempt to divide the SACAA into further separate activities or geographical information will not add any additional value to its stakeholders. The entire SACAA is viewed as a single reportable segment.

1.18 Budget information

The SACAA is typically subject to budgetary limits in the form of budget authorisations, which are given effect through authorising legislation.

General purpose financial reporting by the group shall provide information on whether resources were obtained and used in accordance with the legally adopted budget.





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

The approved budget covers the fiscal period from 01 April 2018 to 31 March 2019.

The consolidated annual financial statements and the budget are compiled on the same basis of accounting, therefore a comparison with the budgeted amounts for the reporting period have been included in the Statement of comparison of budget and actual amounts.

An explanation is provided for all variances between actual and budgeted amounts above 5% or in excess of R2 million in the notes to the financial statements.

1.19 Related Parties

The group has processes in place to aid in the identification of related parties. Related parties are defined as persons or entities 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.

The Department of Transport was identified as being able to exercise significant influence over the SACAA. As a result, all other entities under the same influence are regarded as related parties.

1.20 Taxation

The SACAA is exempt from taxation in terms of the provision of section 10(1)(CA)(i) of the Income Tax Act, 1962 (Act no. 58 of 1962).





Standard/ Interpretation: Effective date:Years beginning on or after

Expected impact:

• GRAP 20: Related parties 01 April 2019Not expected to impact results but may result in additional disclosure

• GRAP 32: Service Concession Arrangements: Grantor 01 April 2019 Not expected to have a material impact

• GRAP 108: Statutory Receivables 01 April 2019 Not expected to have a material impact

• GRAP 109: Accounting by Principals and Agents 01 April 2019 Not expected to have a material impact

• IGRAP 17: Service Concession Arrangements where a Grantor Controls a Significant Residual Interest in an Asset 01 April 2019 Not expected to have a

material impact

2. New standards and interpretations

2.1 Standards and interpretations issued, but not yet effective

The Group has not applied the following standards and interpretations, which have been published and are mandatory for the Group’s accounting periods beginning on or after 01 April 2019 or later periods:

3. Cash and cash equivalents

Cash and cash equivalents consist of:

Description Group SACAA2019

R2018

R2019

R2018

RCash on hand 3 000 5 000 3 000 3 000Bank balances 7 884 754 9 267 492 7 629 384 9 173 229Short-term deposits 292 219 854 297 067 095 292 067 247 296 388 265

300 107 608 306 339 587 299 699 631 305 564 494

Cash and cash equivalents held have not been encumbered.

Credit quality of bank balances and short-term deposits, excluding cash on hand

The credit quality of bank balances and short-term deposits is the credit rating of financial institutions. Cash and cash equivalents attract interest at variable rates linked to prime.

The credit quality of bank balances and short-term deposits, excluding cash on hand that is neither past due nor impaired can be assessed/monitored by reference to historical information about counterparty default rates. Furthermore, the credit quality of bank balances and short-term deposits is ensured by only contracting with highly reputable financial institutions registered in terms of the Banks Act of South Africa, 1990 (Act No. 94 of 1990) and endorsed by National Treasury.





4. Trade and other receivables from non-exchange transactions


R2018

R2019

R2018

RTrade receivables 70 664 806 65 115 607 70 634 125 65 080 604Provision for impairment of trade and other receivables

(9 524 770) (9 278 400) (9 524 770) (9 278 400)

Unallocated receipts (283 353) (430 601) (283 353) (430 601)Other debtors 3 309 675 1 302 840 3 306 896 1 298 607Prepayments 8 214 417 1 659 863 8 214 417 1 659 863Deposits 1 947 347 1 947 347 1 947 347 1 947 347Staff advances 130 208 61 700 127 383 61 700

74 458 330 60 378 356 74 422 045 60 339 120

Trade receivables are carried at cost, which normally approximates their fair value due to the short-term maturity thereof. An adjustment for the impairment of receivables has been made for estimated irrecoverable amounts.

Trade receivables ageing


R2018

R2019

R2018

RCurrent 55 047 711 48 012 961 55 038 507 47 973 7140 to 30 days 1 592 218 4 495 998 1 592 128 4 495 09031 to 60 days 2 325 529 972 522 2 325 403 971 10161 to 90 days 2 271 137 1 317 584 2 269 501 1 314 399Over 90 days 9 428 211 10 316 542 9 408 586 10 326 300

70 664 806 65 115 607 70 634 125 65 080 604

Credit quality of trade and other receivables

The credit quality of trade and other receivables that are neither past due nor impaired, can be assessed by reference to historical information about counterparty default rates as well as payment history.

None of the financial assets that are fully performing have been renegotiated in the last year.

Fair value of trade and other receivables

Description

Group SACAA2019

R2018

R2019

R2018

RTrade and other receivables 74 458 330 60 378 356 74 422 045 60 339 120

The Board considers the carrying amount of trade and other receivables to approximate fair value.






R2018

R2019

R2018

ROne month past due 1 583 794 4 495 998 1 583 704 4 495 090Two months past due 2 100 336 962 522 2 100 210 961 101Three months past due 1 971 752 1 317 583 1 970 116 1 314 399Older than three months past due 2 388 181 2 091 100 2 368 556 2 091 100

8 044 063 8 867 203 8 022 586 8 861 690


R2018

R2019

R2018

RLess than one month past due 8 423 - 8 423 -Less than two months past due 225 193 - 225 193 -Less than three months past due 299 386 - 299 386 -Over three months past due 8 991 768 9 278 400 8 991 768 9 278 400

9 524 770 9 278 400 9 524 770 9 278 400

4.Tradeandotherreceivablesfromnon-exchangetransactions|CONTINUED

Trade and other receivables past due but not impaired

On 31 March 2019 the group and SACAA trade and other receivables of R 8 044 063 (2018: R 8 867 203) and R 8 022 586 (2018: R 8 861 690) respectively were past due but not impaired.

The ageing of amounts past due, but not impaired, is as follows:

Trade and other receivables impaired

As at 31 March 2019 the group and SACAA trade and other receivables of R 9 524 770 (2018: R 9 278 400) were impaired and provided for.

The ageing of these receivables is as follows:





4.Tradeandotherreceivablesfromnon-exchangetransactions|CONTINUED

Reconciliation of provision for impairment of trade and other receivables


R2018

R2019

R2018

ROpening balance 9 278 400 12 644 804 9 278 400 12 644 804Increase in provision 1 122 854 - 1 122 854 -Decrease in provision (876 484) (3 366 404) (876 484) (3 366 404)

9 524 770 9 278 400 9 524 770 9 278 400

The creation and release of provision for impaired receivables have been included in surplus for the year.

The maximum exposure to credit risk at the reporting date is the fair value of each class of trade and other receivable balances mentioned above. The group does not hold any collateral as security.

5. Trade and other receivables from exchange transactions


R2018

R2019

R2018

RTrade and other receivables from exchange transactions

970 425 - 970 425 -

Trade and other receivables from exchange transactions are carried at cost, which normally approximates to the short-term maturity thereof.





5.Tradeandotherreceivablesfromexchangetransactions|CONTINUED


R2018

R2019

R2018

ROne month past due 178 395 - 178 395 -Two months past due 439 239 - 439 239 -Older than three months past due 352 791 - 352 791 -

970 425 - 970 425 -

6. Consumable stores


R2018

R2019

R2018

RID licence card consumables 1 078 845 - 1 078 845 -

Trade and other receivables past due but not impaired

On 31 March 2019 the group and SACAA trade and other receivables of R970 425 (2018: R-) were past due but not impaired.

The ageing of amounts past due but not impaired is as follows:

As at the end of the year, the trade receivables ageing were as follows:


R2018

R2019

R2018

R0 to 30 days 178 395 - 178 395 -31 to 60 days 439 239 - 439 239 -Over 90 days 352 791 - 352 791 -

970 425 - 970 425 -





7. Property, plant and equipment

Group 2019 2018 Cost

RAccumulated depreciation

R

Carrying value

R

Cost

R

Accumulated depreciation

R

Carrying value

RLeasehold improvements 169 253 (35 261) 133 992 169 253 (7 052) 162 201Furniture and fixtures 16 280 670 (10 360 688) 5 919 982 15 031 754 (10 034 167) 4 997 587Motor vehicles 4 168 624 (2 255 770) 1 912 854 3 655 638 (2 169 680) 1 485 958Computer equipment 29 945 272 (13 382 961) 16 562 311 23 902 047 (13 444 966) 10 457 081Generator 1 097 633 (457 868) 639 765 1 097 633 (384 693) 712 940Aircraft 22 430 016 (16 108 323) 6 321 693 22 430 017 (14 636 756) 7 793 261Calibration equipment 27 700 732 (17 305 825) 10 394 907 27 700 731 (16 196 978) 11 503 753Canteen equipment 178 745 (112 132) 66 613 178 745 (102 659) 76 086

101 970 945 (60 018 828) 41 952 117 94 165 818 (56 976 951) 37 188 867

SACAA 2019 2018Cost

RAccumulated depreciation

R

Carrying value

R

Cost

R


R

Carrying value

RLeasehold improvements 169 253 (35 261) 133 992 169 253 (7 052) 162 201Furniture and fixtures 15 932 269 (10 068 517) 5 863 752 14 678 952 (9 761 443) 4 917 509Motor vehicles 3 694 767 (1 915 563) 1 779 204 3 181 781 (1 888 873) 1 292 908Computer equipment 29 815 529 (13 254 577) 16 560 952 23 764 725 (13 321 978) 10 442 747Generator 1 097 633 (457 868) 639 765 1 097 633 (384 693) 712 940Aircraft 22 430 016 (16 108 323) 6 321 693 22 430 017 (14 636 756) 7 793 261Calibration equipment 27 700 732 (17 305 825) 10 394 907 27 700 731 (16 196 978) 11 503 753Canteen equipment 178 745 (112 132) 66 613 178 745 (102 659) 76 086

101 018 944 (59 258 066) 41 760 878 93 201 837 (56 300 432) 36 901 405





Reconciliation of property, plant and equipment - Group - 2019

Group - 2019 Opening balanceR

AdditionsR

DisposalsR

DepreciationR

TotalR

Leasehold improvements 162 201 - - (28 209) 133 992Furniture and fixtures 4 997 587 1 795 106 (68 560) (804 151) 5 919 982Motor vehicles 1 485 958 1 028 388 (95 403) (506 089) 1 912 854Computer equipment 10 457 081 8 290 451 (228 608) (1 956 613) 16 562 311Generator 712 940 - - (73 175) 639 765Aircraft 7 793 261 - - (1 471 568) 6 321 693Calibration equipment 11 503 753 - - (1 108 846) 10 394 907Canteen equipment 76 086 - - (9 473) 66 613

37 188 867 11 113 945 (392 571) (5 958 124) 41 952 117

7.Property,plantandequipment|CONTINUED

Group - 2018 Opening balanceR

AdditionsR

DisposalsR

DepreciationR

TotalR

Leasehold improvements - 169 253 - (7 052) 162 201Furniture and fixtures 5 531 195 1 328 713 (218 060) (1 644 261) 4 997 587Motor vehicles 2 066 378 - - (580 420) 1 485 958Computer equipment 11 842 905 3 635 677 (464 525) (4 556 976) 10 457 081Generator 786 116 - - (73 176) 712 940Aircraft 8 197 401 1 046 795 - (1 450 935) 7 793 261Calibration equipment 12 614 122 - - (1 110 369) 11 503 753Canteen equipment 58 865 45 914 (1 621) (27 072) 76 086

41 096 982 6 226 352 (684 206) (9 450 261) 37 188 867

Reconciliation of property, plant and equipment - Group - 2018






Reconciliation of property, plant and equipment - SACAA - 2019

SACAA - 2019 Opening balanceR

AdditionsR

DisposalsR

DepreciationR

TotalR

Leasehold improvements 162 201 - - (28 209) 133 992Furniture and fixtures 4 917 509 1 795 106 (67 297) (781 566) 5 863 752Motor vehicles 1 292 908 1 028 388 (95 403) (446 689) 1 779 204Computer equipment 10 442 747 8 290 451 (228 608) (1 943 638) 16 560 952Generator 712 940 - - (73 175) 639 765Aircraft 7 793 261 - - (1 471 568) 6 321 693Calibration equipment 11 503 753 - - (1 108 846) 10 394 907Canteen equipment 76 086 - - (9 473) 66 613

36 901 405 11 113 945 (391 308) (5 863 164) 41 760 878

Reconciliation of property, plant and equipment - SACAA - 2018

SACAA - 2018 Opening balanceR

AdditionsR

DisposalsR

DepreciationR

TotalR

Leasehold improvements - 169 253 - (7 052) 162 201Furniture and fixtures 5 423 542 1 318 748 (207 651) (1 617 130) 4 917 509Motor vehicles 1 813 927 - - (521 019) 1 292 908Computer equipment 11 809 082 3 635 677 (464 525) (4 537 487) 10 442 747Generator 786 116 - - (73 176) 712 940Aircraft 8 197 401 1 046 795 - (1 450 935) 7 793 261Calibration equipment 12 614 122 - - (1 110 369) 11 503 753Canteen equipment 58 865 45 914 (1 621) (27 072) 76 086

40 703 055 6 216 387 (673 797) (9 344 240) 36 901 405






Expenditure incurred to repair and maintain property, plant and equipment


R2018

R2019

R2018

RExpenditure incurred to repair and maintain property, plant and equipment included in Statement of Financial PerformanceMotor vehicles repairs and maintenance 66 128 65 620 - -Aircraft repairs and maintenance 5 949 221 3 471 996 5 949 221 3 471 996Calibration equipment repairs and maintenance 1 634 167 2 080 285 1 634 167 2 080 285Other operational repairs and maintenance 2 715 192 2 644 397 2 698 158 2 623 802

10 364 708 8 262 298 10 281 546 8 176 083

8. Intangible assets

Group 2019 2018Cost

R


R

Carrying value

R

Cost

R


R

Carrying value

RComputer software 71 306 714 (10 580 041) 60 726 673 42 474 617 (7 565 109) 34 909 508Work in progress* 13 392 521 - 13 392 521 37 659 111 - 37 659 111

84 699 235 (10 580 041) 74 119 194 80 133 728 (7 565 109) 72 568 619

SACAA 2019 2018Cost

R


R

Carrying value

R

Cost

R


R

Carrying value

RComputer software 71 221 534 (10 494 861) 60 726 673 42 389 437 (7 480 414) 34 909 023Work in progress* 13 392 521 - 13 392 521 37 659 111 - 37 659 111

84 614 055 (10 494 861) 74 119 194 80 048 548 (7 480 414) 72 568 134





8.Intangibleassets|CONTINUED

Group 2019 Opening balance

R

Additions

R

Transfers

R

Amortisation

R

Total

RComputer software 34 909 508 700 386 28 131 711 (3 014 932) 60 726 673Work in progress* 37 659 111 3 865 121 (28 131 711) - 13 392 521

72 568 619 4 565 507 - (3 014 932) 74 119 194

Reconciliation of intangible assets - Group - 2019

Group 2018

Opening balance

R

Additions

R

Transfers

R

Amortisation

R

Total

RComputer software 15 777 049 1 720 572 18 102 820 (690 933) 34 909 508Work in progress* 41 253 889 14 508 042 (18 102 820) - 37 659 111

57 030 938 16 228 614 - (690 933) 72 568 619

Reconciliation of intangible assets - Group - 2018

SACAA 2019 Opening balance

R

Additions

R

Transfers

R

Amortisation

R

Total

RComputer software 34 909 023 700 386 28 131 711 (3 014 447) 60 726 673Work in progress* 37 659 111 3 865 121 (28 131 711) - 13 392 521

72 568 134 4 565 507 - (3 014 447) 74 119 194

Reconciliation of intangible assets - SACAA - 2019

Reconciliation of intangible assets - SACAA - 2018

SACAA 2018 Opening balance

R

Additions

R

Transfers

R

Amortisation

R

Total

RComputer software 15 768 858 1 720 572 18 102 820 (683 227) 34 909 023Work in progress* 41 253 889 14 508 042 (18 102 820) - 37 659 111

57 022 747 16 228 614 - (683 227) 72 568 134

• Work in progress includes ID Licence Card System of R 883 707 as well as software licence and installation costs of the Enterprise Business System (EBS) of R12 508 814. As the phases of the EBS project are completed and implemented, they are transferred to computer software.





9. Change in estimate

Property, plant and equipment

GRAP 17 - Property, plant and equipment requires the review of the residual value and useful life of an asset at least at each financial year-end. The SACAA extended the estimated useful lives of certain assets. The revisions were accounted for prospectively as a change in accounting estimates and as a result, the depreciation charges of the SACAA for the current financial year have been decreased by R3 908 114.

Description Previous carrying value

R

Current carrying value

R

Net effect

RComputer software 1 455 325 1 971 161 515 836Computer equipment 6 800 339 9 105 559 2 305 220Furniture and fixtures 5 506 763 6 486 330 979 567Motor vehicles 552 407 644 597 92 190Canteen equipment 62 079 77 380 15 301

14 376 913 18 285 027 3 908 114

10. Trade and other payables


R

2018Restated

R

2019

R

2018Restated

RTrade payables 7 418 437 5 757 950 7 351 544 5 756 686Income received in advance 1 028 433 407 934 1 028 433 407 934Trade receivables with credit balances 13 718 120 8 147 203 13 682 767 8 143 353Sundry accruals 29 445 257 36 495 249 29 374 798 36 469 056Salary-related accruals 423 603 236 284 412 334 236 28413th Cheque accrual 689 637 597 214 689 637 597 214Leave pay accrual 23 706 881 25 171 684 23 274 744 24 838 059

76 430 368 76 813 518 75 814 257 76 448 586

The SACAA does not have any long-term liabilities. It currently has sufficient cash reserves to fund its capital and operating expenditure.





11. Operating lease liability


R2018

R2019

R2018

ROperating lease liability 1 685 309 966 979 1 685 309 966 979

The operating lease liability relates to the smoothing of the rental lease payment for property rental over the lease period.

12. Provisions

Reconciliation of provisions - Group - 2019

Description Opening balance

R

Additions

R

Utilised during the year

R

Total

RPerformance bonus provision* 65 745 529 80 000 000 (65 476 416) 80 269 113

Reconciliation of provisions - Group - 2018


R

Additions

R


R

Total

RPerformance bonus provision* 57 333 490 60 000 000 (51 587 961) 65 745 529Provision for directors’ remuneration 2 676 - (2 676) -

57 336 166 60 000 000 (51 590 637) 65 745 529

Reconciliation of provisions - SACAA - 2019


R

Additions

R


R

Total


Reconciliation of provisions - SACAA - 2018


R

Additions

R


R

Total


* The performance bonus provision is calculated in line with the remuneration policy as approved by the Board.





12.Provisions|CONTINUED

Uncertainties and assumptions

Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the obligation at the Statement of Financial Position date. The discount rate used to determine the present value reflects current market assessments of the time value of money and the risks specific to the liability.

Performance bonus provision

The performance bonus provision is calculated based on the performance of the SACAA as well as individual performance ratings of each employee for the financial year ended 31 March 2019. This calculation is in line with the remuneration policy.

13.Employeebenefitobligations

Definedcontributionplan

It is the policy of the SACAA to provide retirement benefits to all of its employees. The defined contribution provident fund, which is subject to the Pensions Fund Act, 1956 (Act No. 24 of 1956) exists for this purpose.

The group is under no obligation to cover any unfunded benefits.


R2018

R2019

R2018

RThe amount recognised as an expense for defined contribution plan is

50 471 809 45 504 256 50 471 809 45 504 256

14. Revenue from non-exchange transactions


R2018

R2019

R2018

RPassenger safety charge* 532 263 061 486 655 307 532 263 061 486 655 307User fees 101 678 621 94 791 509 99 826 369 93 074 815Fuel levy 25 583 055 26 569 784 25 583 055 26 569 784Accident and incident investigation 21 922 932 20 720 720 21 922 932 20 720 720

681 447 669 628 737 320 679 595 417 627 020 626

* The passenger safety charge for the current year increased by 9% as a result of a 1% increase in passenger numbers and an increase in the passenger safety charge fee of 6% from R22.29 to R23.61.





15. Interest revenue from exchange transactions


R2018

R2019

R2018

RInterest revenueFinancial institutions* 17 983 764 17 056 790 17 949 987 17 006 783Trade and other receivables 552 408 594 176 552 408 594 176

18 536 172 17 650 966 18 502 395 17 600 959

* Interest revenue from financial institutions increased by 5.4% for the group and by 5.5% for the SACAA as a result of surplus funds being invested and better cash flow management.

16. Other revenue from exchange transactions


R2018

R2019

R2018

RSundry income 2 451 373 1 563 445 2 327 426 1 413 801Sponsorship income 2 400 818 1 530 280 2 400 818 1 530 280Insurance claim received 82 986 64 057 82 986 58 557

4 935 177 3 157 782 4 811 230 3 002 638

Other revenue increased due to higher sponsorship income received in the current year as well as secondment income received from the Department of Transport.





17. Personnel cost


R2018

R2019

R2018

RBasic salary* 300 880 507 277 206 331 294 676 394 271 722 968Bonus** 85 079 933 60 000 000 85 079 933 60 000 000Pension fund contributions 50 471 809 45 504 256 50 471 809 45 504 256Medical aid contributions 18 621 623 16 530 713 18 408 664 16 328 883Other employee benefit costs 10 822 969 8 313 145 10 822 969 8 313 145Temporary staff 4 829 795 2 049 349 4 829 795 2 049 349Acting allowances 1 030 402 720 766 1 030 402 720 766Leave pay provision charge 175 440 6 156 419 76 928 6 156 419Travel and other allowances 3 841 064 2 292 878 3 841 064 2 286 766Compensation for occupational injuries and diseases fund

509 661 1 364 139 500 111 1 352 755

Unemployment Insurance Fund 959 402 946 509 929 978 918 889477 222 605 421 084 505 470 668 047 415 354 196

* Basic salary costs increased by 8.5% for the Group and 8.4% for the SACAA. This increase is as a result of a 7.5% salary increase effective from 1 April 2018 as well as an increase in employee numbers for the year from 537 to 575 for the group and from 518 to 557 for SACAA at the end of the current financial year.

** The bonus provision for the year increased by R25 079 933. The performance bonus is calculated in line with the remuneration policy as approved by the Board. Included in the bonus cost is an amount of R5 080 000 that was paid to the Executives as a retention bonus in the current year.






R

2018Restated

R

2019

R

2018 Restated

RAircraft operating expenses 2 977 219 4 098 537 2 977 219 4 098 537Auditors’ fees 2 251 883 2 359 821 2 207 648 2 320 316Bank charges 797 090 721 204 750 958 676 589Bursaries 6 487 032 2 879 283 6 487 032 2 879 283Cleaning 1 558 661 1 439 808 1 553 756 1 434 771Conferences, seminars and venue hire 7 310 128 3 107 140 7 282 428 3 070 088Consulting and professional fees 8 829 392 10 794 001 8 626 977 10 594 456Consumables 1 028 034 946 720 1 028 034 946 720Electricity 4 221 152 4 742 082 4 140 228 4 633 774Fuel and oil 373 340 245 995 373 340 245 995Insurance 1 633 381 1 620 473 1 229 398 1 553 555IT expenses 4 573 312 5 006 678 4 467 304 4 908 007Legal fees 4 569 290 1 368 097 4 558 290 1 368 097Magazines, books and periodicals 1 502 899 1 082 375 1 453 441 1 036 974Motor vehicle expenses 21 401 17 633 21 401 17 633Placement fees 1 189 272 1 530 837 1 189 272 1 530 837Postage and courier 531 105 572 519 528 108 566 044Printing and stationery 2 890 888 2 771 212 2 762 420 2 670 794Public relations 15 741 491 4 937 775 15 735 821 4 899 812Recreation Aviation Administration of South Africa - - 5 975 160 5 642 256Refuse 211 270 164 737 211 270 164 737Regulation development 396 586 539 557 385 036 434 557Safety and promotion 5 644 230 7 412 530 5 644 230 7 382 530Security 4 342 959 4 109 945 4 328 184 4 096 354Skills development levy 4 025 570 3 525 723 3 962 834 3 470 821Software expenses 19 813 607 14 265 097 19 813 607 14 265 097Sponsorships 4 450 281 2 629 309 4 450 281 2 629 309Staff events 1 601 883 1 335 872 1 554 839 1 294 249Staff welfare 294 012 379 374 293 732 343 335Telephone and fax 5 276 300 4 457 969 5 211 284 4 381 657Training 17 843 044 18 068 032 17 800 822 18 019 084Travel - international 20 538 973 11 562 477 20 491 503 11 526 790Travel - domestic 20 497 801 18 560 300 20 443 966 18 524 638Uniforms 712 306 393 414 712 306 393 414Other expenses 451 883 296 640 451 883 296 640

174 587 675 137 943 166 179 104 012 142 317 750

18. Operating expenses





19. Finance costs


R2018

R2019

R2018

RInterest and penalties paid to the South African Revenue Services

- 5 448 - 5 448

Other interest paid 272 199 - -272 5 647 - 5 448

20. Debt impairment and write-off


R2018

R2019

R2018

RBad debts written off 1 016 912 2 640 396 1 016 912 2 640 396Increase/(Decrease) in debt impairment provision 246 370 (3 366 404) 246 370 (3 366 404)

1 263 282 (726 008) 1 263 282 (726 008)

21. Taxation

No provision for taxation has been made, as the entity is exempted in terms of section 10 (1) (CA) (i) of the Income Tax Act, 1962 (Act No. 58 of 1962).

22. Auditors’ fees


R2018

R2019

R2018

RFees 2 225 786 2 310 217 2 181 551 2 270 712Reimbursive expenses 26 097 49 604 26 097 49 604

2 251 883 2 359 821 2 207 648 2 320 316





23.Cashflowsfromoperatingactivities


R2018

R2019

R2018

RSurplus for the year 1 352 326 44 504 617 2 070 280 44 629 438Adjustments for:Depreciation and amortisation 8 973 056 10 141 193 8 877 611 10 027 466Loss on disposal of assets 113 438 609 228 112 175 598 819Increase/(decrease) in debt impairment provision 246 370 (3 366 404) 246 370 (3 366 404)Movements in operating lease liability 718 330 570 835 718 330 570 835Movements in provisions 14 523 584 8 409 363 14 523 584 8 412 039Changes in working capital:Consumable stores (1 078 845) - (1 078 845) -Trade and other receivables from non-exchange transactions

(14 079 974) 516 066 (14 082 925) 491 593

Movement in debt impairment added back (246 370) 3 366 404 (246 370) 3 366 404Trade and other receivables from exchange transactions

(970 425) 134 716 (970 425) 134 716

Trade and other payables (383 152) 15 369 276 (634 331) 15 390 5819 168 338 80 255 294 9 535 454 80 255 487





24. Commitments

Authorised capital and maintenance expenditure


R2018

R2019

R2018

RAuthorised and contracted for• Property, plant and equipment 296 208 - 296 208 -• Intangible assets 12 554 135 30 068 434 12 554 135 30 068 434

12 850 343 30 068 434 12 850 343 30 068 434

Authorised and not contracted for• Property, plant and equipment 119 036 589 116 000 000 119 036 589 116 000 000

Total capital commitmentsAuthorised and contracted for 12 850 343 30 068 434 12 850 343 30 068 434Authorised and not contracted for 119 036 589 116 000 000 119 036 589 116 000 000

131 886 932 146 068 434 131 886 932 146 068 434

The capital and maintenance expenditure commitment for intangible assets relates to the installation and implementation of an Enterprise Business System, Empic Pexo Databank and Microsoft Office 365. These costs will be financed by retained surpluses, existing cash resources and funds generated internally.

Included in the capital commitment authorised and not contracted for in property, plant and equipment is the acquisition of an aircraft for an amount of R115 600 800 and an aircraft engine replacement for an amount of R3 435 789 for the Flight Inspection Unit (FIU).

The capital expenditure budget authorised and not contracted for the year ending 31 March 2020 is R88 670 100.





24.Commitments|CONTINUED

Operating leases


R2018

R2019

R2018

RMinimum lease payments due - within one year 39 044 759 25 722 707 39 044 759 25 657 668- in second to fifth year inclusive 178 016 571 9 727 856 178 016 571 9 714 548- later than five years 348 729 393 - 348 729 393 -

565 790 723 35 450 563 565 790 723 35 372 216

Operating lease payments represent rentals payable by the group and SACAA for certain of its office properties and equipment. Leases are negotiated for an average term of between three to ten years. No contingent rent is payable.

25. Contingencies

The SACAA is currently dealing with a litigation matter relating to a civil claim for damages against it. Summons have been issued by the plaintiff, claiming damages for loss of earnings as well as damages to its business reputation and good name. The SACAA is defending the civil claim and the quantum of this exposure is R 317 500 000. The SACAA is confident that it can successfully defend the suit.

A plaintiff in a suit against seven defendants, of which RAASA is listed as the first, is claiming compensation in the amount of R17 713 398. Based on the legal opinion received from the RAASA legal task team, RAASA is confident that it can successfully defend the suit.

Costs were awarded against the SACAA on two legal matters. The estimated legal costs amount to R545 636 and the actual costs will only be determined once the bill of costs has been taxed by the taxing master.





26. Related party balances

Related party balances

Loan accounts owing (to)/by related parties


R2018

R2019

R2018

RDepartment of Transport 667 237 (298 288) 667 237 (298 288)South African Airways 62 493 86 106 62 493 86 106Air Traffic and Navigation Services (2 498 381) 2 713 032 (2 498 381) 2 713 032Airports Company South Africa (licences) (77 151) 112 427 (77 151) 112 427SA Express (passenger safety charge and general aviation) 2 978 598 653 689 2 978 598 653 689Mango Airlines (160 706) 14 966 (160 706) 14 966

972 090 3 281 932 972 090 3 281 932

No expense has been recognised in the current period for impairment of trade receivables in respect of amounts owed by related parties. The amounts outstanding are unsecured and will be settled in cash. No guarantees have been given or received. The Department of Transport either controls or exercises significant influence over all entities listed as related parties.

Related party transactions

Purchases from/(sales to) related parties


R2018

R2019

R2018

RDepartment of Transport (accidents and incidents) (23 542 000) (22 251 000) (23 542 000) (22 251 000)Department of Transport (secondment allowance) 1 532 177 1 998 589 1 532 177 1 998 589Air Traffic and Navigation Services (6 710 638) (6 698 538) (6 710 639) (6 698 538)

Airports Company South Africa (licences) (1 819 511) (1 810 860) (1 819 511) (1 810 860)

Airports Company South Africa (rentals) 2 181 102 1 870 969 2 181 102 1 870 969South African Airways (76 028 488) (105 098 889) (76 028 488) (105 098 889)SA Express (safety fees and general aviation) (9 272 107) (24 573 877) (9 272 107) (24 573 877)Mango Airlines (safety fees) (90 563 163) (67 931 952) (90 563 163) (67 931 952)

Recreation Aviation Administration of South Africa - - 5 975 160 5 642 256(204 222 628) (224 495 558) (198 247 469) (218 853 302)

These transactions are carried out on commercial terms and conditions.





27. Members’ emoluments

Executive Management

Group 2019 Salary Medicalaid

Providentfund

Bonuses** Total

R R R R RMs G Khoza DCA 3 049 496 140 787 538 955 2 687 007 6 416 245Mr A Seedat Executive: Finance 1 869 744 114 742 365 297 1 321 592 3 671 375Mr S Segwabe Executive: Aviation Safety

Operations2 093 590 81 618 365 251 1 401 467 3 941 926

Mr G Bestbier Executive: Aviation Infrastructure

2 115 380 70 080 521 578 1 495 363 4 202 401

Ms T Masooa Executive: Human Resources

1 861 856 101 691 296 188 1 258 804 3 518 539

Ms P Gwebu Executive: Corporate Services

1 471 046 117 849 271 683 1 020 726 2 881 304

Mr P Kewana Chief Audit Executive 1 626 691 88 074 295 583 1 120 626 3 130 974Ms M Mamabolo* Executive: Legal and

Aviation Compliance1 763 870 67 229 317 512 1 202 680 3 351 291

Ms N Naraindath Company Secretary 1 507 865 117 849 283 513 1 094 426 3 003 653Mr L Gqeke Executive: Aviation

Security2 139 762 - 365 251 1 376 762 3 881 775

Mr P Mashaba Executive: Accident and Incident Investigation

1 799 577 47 637 321 456 696 694 2 865 364

Mr N de Lange Chief Executive: RAASA 1 197 020 36 630 - 220 804 1 454 454Ms B Ndandani (Acting from 15 October 2018 - 31 March 2019)

Executive: Legal and Aviation Compliance

605 455 18 284 142 426 - 766 165

23 101 352 1 002 470 4 084 693 14 896 951 43 085 466

* Seconded to the Department of Transport from 15 October 2018.** Includes a retention bonus paid to executives every three years in accordance with the Board-approved retention policy.





27.Members’emoluments|CONTINUED

Group 2018 Salary Medicalaid

Providentfund

Bonuses Total

R R R R RMs G Khoza DCA 2 883 333 129 438 501 353 1 201 634 4 715 758 Mr A Seedat Executive: Finance 1 660 599 125 602 375 580 569 124 2 730 905 Mr S Segwabe Executive: Aviation Safety

Operations 1 931 575 69 339 339 768 577 953 2 918 635

Mr G Bestbier Executive: Aviation Infrastructure

1 960 984 64 872 434 649 621 015 3 081 520

Ms T Masooa Executive: Human Resources 1 722 895 94 158 244 910 531 431 2 593 394Mr P Gwebu Executive: Corporate Services 1 353 853 108 612 252 728 448 068 2 163 261Mr P Kewana Chief Audit Executive 1 486 145 81 549 274 961 479 970 2 322 625 Ms M Mamabolo Executive: Legal and Aviation

Compliance 1 635 772 65 226 295 360 513 686 2 510 044

Ms N Naraindath Company Secretary 1 397 415 108 612 263 733 472 822 2 242 582 Mr L Gqeke Executive: Aviation Security 2 074 382 - 339 768 574 168 2 988 318Mr P Mashaba Executive: Accident and

Incident Investigation 1 676 607 44 121 299 029 311 472 2 331 229

Mr N de Lange Chief Executive: RAASA 1 065 620 32 446 - 210 447 1 308 51320 849 180 923 975 3 621 839 6 511 790 31 906 784

Non-executive Directors’ fees

2019

SACAA Board Members’Fees

Reimbursiveexpenses

Total

R R RMr E Khosa 279 741 15 389 295 130 Mr SS Mokoena 182 655 1 184 183 839 Mr S Sooklal 288 700 7 814 296 514Ms L Dlepu 5 206 376 5 582Major-Gen. NL J Ngema 5 206 2 300 7 506 Mr MG India 223 530 3 138 226 668 Prof. NV Dyani-Mhango 232 099 4 538 236 637 Dr BC Suckling 213 838 2 277 216 115 Mrs GB Koyana 75 464 - 75 464

1 506 439 37 016 1 543 455





27.Members’emoluments|CONTINUED

RAASA Board Members’Fees

Reimbursiveexpenses

Total

R R RMr J Morrison 18 889 4 500 23 389 Mr C Jordaan 9 705 - 9 705 Mr R Wheeldon 17 469 4 500 21 969 Ms M Mochoele 13 572 2 000 15 572

59 635 11 000 70 635

2018

SACAA Board Members’Fees

Reimbursiveexpenses

Total

R R RMr SS Mokoena 350 478 3 212 353 690Ms DLT Dondur 350 217 4 102 354 319Ms L Dlepu 302 067 3 906 305 973Major-Gen. NL J Ngema 285 396 21 441 306 837Mr MG India 271 510 2 695 274 205Prof. NV Dyani Mhango 275 910 4 593 280 503

1 835 578 39 949 1 875 527

RAASA Board Members’Fees

Reimbursiveexpenses

Total

R R RMr C Linakis (Resigned 12 July 2017) 14 647 3 500 18 147Mr J Morrison 32 629 7 500 40 129Mr C Jordaan 9 705 2 000 11 705Mr R Wheeldon (Appointed 15 August 2017) 17 469 4 000 21 469Ms M Mochoele (Appointed 13 April 2017) 20 358 3 500 23 858

94 808 20 500 115 308

Fees

Reimbursive expenses are disclosed in terms of Treasury Regulation 28 (1) (4) of the PFMA as reimbursive costs paid to Board members. The costs include flights, car hire, accommodation and travel costs for all meetings of the Board and its committees.

Non-executiveDirectors’fees|CONTINUED

2019





28. Risk management

Capital risk management

The group’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide return for its owner and benefits for its stakeholders, and to maintain an optimal capital structure to reduce the cost of capital.

The capital structure of the group consists of cash and cash equivalents disclosed in note 3, and equity as disclosed in the statement of financial position.

As the group is not exposed to debt, there is no meaningful debt to equity ratios, such as gearing ratio, to be disclosed. There are no externally imposed capital requirements.

There have been no changes to what the group manages as capital. The strategy for capital maintenance or externally imposed capital requirements remained the same as in the previous year.

Financial risk management

The group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.

Management meets on a regular basis to analyse interest rate exposures and evaluate treasury management strategies against revised economic forecasts. Compliance with policies and exposure limits is reviewed by management on a continuous basis. Management believes that, to the best of its knowledge, there are no significant undisclosed financial risks.

Liquidity risk

Liquidity risk refers to the risk that the group will encounter difficulty in meeting obligations associated with financial liabilities.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an adequate amount of committed credit facilities and the ability to close out market positions. Management is satisfied that the group will be able to settle its financial liabilities (payables and provisions) in the normal course of business.

The group’s risk to liquidity is a result of the funds available to cover future commitments. The group manages liquidity risk through an ongoing review of future commitments and credit facilities.

Cash flow forecasts are prepared and adequate utilised borrowing facilities are monitored.

The liquidity ratio below illustrates:


R2018

R2019

R2018

RCurrent ratioCurrent assets 376 615 208 366 717 943 376 170 948 365 903 614 Current liabilities 158 384 791 143 526 025 157 768 678 143 161 094

2.38:1 2.56:1 2.39:1 2.56:1





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. The group is exposed to interest rate risk, as it invests funds in the money market at floating interest rates. At 31 March 2019, no derivative financial instruments were used to manage the group’s exposure to interest rate risk.

The group has adopted a policy of investing the majority of surplus cash in call account investments as a means to safeguard and mitigate interest rate risk. The risk is further managed through the fact that the surplus funds are invested in reputable financial institutions.

Credit risk

The group is exposed to credit risk, which is the risk of financial loss to the group if a counterparty to a financial instrument fails to meet its contractual obligations.

Credit risk consists mainly of cash deposits, cash equivalents, derivative financial instruments and trade and other receivables. The group only deposits cash with major banks with high quality credit standing and limits exposure to any one counter-party.

Trade receivables comprise a widespread customer base. Management evaluated credit risk relating to customers on an ongoing basis. If customers are independently rated, these ratings are used. Otherwise, if there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set, based on internal or external ratings in accordance with limits set by management. The utilisation of credit limits is regularly monitored.

Certain credit limits were exceeded during the reporting period, and where management considered these debtors to be impaired, a provision for doubtful debts was raised.

Financial assets exposed to credit risk at year-end were as follows:

28.Riskmanagement|CONTINUED


R2018

R2019

R2018

RFinancial instrumentTrade receivables less unallocated receipts 71 351 878 64 685 006 71 321 197 64 650 003Other debtors 3 309 675 1 302 840 3 306 896 1 298 607Staff advances 130 208 61 700 127 383 61 700Cash and cash equivalents 300 107 608 306 339 587 299 699 631 305 564 494

374 899 369 372 389 133 374 455 107 371 574 804





Default

Default occurs when:

a) credit limits are exceeded;b) payments are not received within the approved period.

In such cases the necessary collection measures were taken with due regard to the financial risk connected to a specific debtor account. Collection measures included handing accounts over to the Legal Department for follow-up.

As at 31 March 2019, the group did not consider that any significant concentration of credit risk existed in the receivable book, which had not been adequately provided for.

The table below provides an analysis of credit risk exposure inherent in the loans and receivables book at the year-end reporting dates, reconciled to the carrying value of net trade receivables as reported in note 4 and 5.


GROUP 2019 Directcharges

R

Indirectcharges

R

Total

RTrade ReceivablesCurrent balance 2 161 485 52 886 224 55 047 709 Overdue balance 8 761 929 7 825 593 16 587 522Subtotal 10 923 414 60 711 817 71 635 231 Impairment provision (6 537 520) (2 987 250) (9 524 770)Net trade receivables 4 385 894 57 724 567 62 110 461

GROUP 2018 Directcharges

R

Indirectcharges

R

Total

RTrade ReceivablesCurrent balance 236 854 47 776 107 48 012 961Overdue balance 12 221 606 4 881 040 17 102 646Subtotal 12 458 460 52 657 147 65 115 607Impairment provision (6 291 150) (2 987 250) (9 278 400)Net trade receivables 6 167 310 49 669 897 55 837 207






SACAA 2019 Directcharges

R

Indirectcharges

R

Total

RTrade ReceivablesCurrent balance 2 161 485 52 877 022 55 038 507 Overdue balance 8 761 929 7 804 114 16 566 043Subtotal 10 923 414 60 681 136 71 604 550 Impairment provision (6 537 520) (2 987 250) (9 524 770)Net trade receivables 4 385 894 57 693 886 62 079 780

SACAA 2018 Directcharges

R

Indirectcharges

R

Total

RTrade ReceivablesCurrent balance 197 607 47 776 107 47 973 714Overdue balance 12 225 850 4 881 040 17 106 890Subtotal 12 423 457 52 657 147 65 080 604Impairment provision (6 291 150) (2 987 250) (9 278 400)Net trade receivables 6 132 307 49 669 897 55 802 204

Definitions

Direct charges include regulatory fees and calibration fees. Indirect charges include passenger safety fees and fuel levies.

Liquidation

As soon as it becomes known that a debtor has been placed into provisional liquidation/sequestration or has been placed into final liquidation/sequestration, the credit facility is automatically revoked. All debtors in liquidation have been provided for in full as irrecoverable.

Foreign exchange risk

The group incurs currency risk as a result of expenses in foreign currencies, hence exposure to exchange rate fluctuations arises. The currency in which the group primarily deals is the US Dollar. No forward cover is taken out for these transactions. Management considers the foreign currency risk to be insignificant.





29. Going concern

The consolidated annual financial statements have been prepared on the basis of accounting policies applicable to a going concern. This basis presumes that funds will be available to finance future operations and that the realisation of assets and settlement of liabilities, contingent obligations and commitments will occur in the ordinary course of business.

30. Events after the reporting date

The South African Civil Aviation authority (SACAA) has taken over all the functions and operations, assets, liabilities and contingent liabilities of RAASA with effect from 01 April 2019.

Management is not aware of any significant events that occurred after the reporting date that were not adjusted or disclosed in the consolidated annual financial statements. Furthermore, management is not aware of any circumstances which exist that would impede the group’s ability to continue as a going concern.

31. Prior period errors

During the financial year under review, it was discovered that the additional expenses relating to the Microsoft Software Licence fee were not accounted for in the prior years.

The comparative amounts relating to the statement of financial position and statement of financial performance have been restated as follows:


R2018

R2019

R2018

RStatementoffinancialpositionIncrease in trade and other payables - (3 195 635) - (3 195 635)Decrease in opening accumulated surplus - 1 369 558 - 1 369 558

StatementoffinancialperformanceIncrease in software licence expense - 1 826 077 - 1 826 077





32. Irregular expenditure


R2018

R2019

R2018

ROpening Balance 161 500 - 161 500 -Add: Irregular Expenditure - current year 2 228 346 161 500 2 228 346 161 500Add: Irregular Expenditure incurred in prior year and identified in current year

4 296 496 10 830 4 296 496 10 830

Less: Amounts condoned - (10 830) - (10 830)Irregular expenditure to be condoned 6 686 342 161 500 6 686 342 161 500

Details of irregular expenditure – current year Services procured without following supply chain regulations

2 228 346

2 228 346

The irregular expenditure of R2 228 346 and R4 296 496 incurred in the current year and prior years respectively, relates to contract variations greater than 15% of the initial value of the contract that were not pre-approved by National Treasury. The matter is still under investigation.

The balance of R161 500 carried forward from the prior year related to the utilisation of a service provider that was not tax compliant. The service provider fraudulently confirmed that he was tax compliant. The amount was condoned by the Board after year-end.

33. Fruitless and wasteful expenditure


R2018

R2019

R2018

ROpening balance 5 448 72 354 5 448 72 354 Add: Fruitless & Wasteful expenditure current year - 5 448 - 5 448Less: Amounts condoned - (72 354) - (72 354)

5 448 5 448 5 448 5 448

The fruitless and wasteful expenditure related to interest and penalties charged for the short-payment of PAYE. The amount of R5 448 was condoned by the Board after year-end.





34. Investments in controlled entities

The SACAA consolidated the results of the Recreation Aviation Administration South Africa NPC (RAASA) in accordance with the requirements of GRAP 6 (Consolidated and Separate Financial Statements).

The SACAA’s control relates to its power to govern the financial resources and operating policies of RAASA, so as to obtain benefits from its activities. The SACAA also appoints four of the eight directors of RAASA including the chairperson, whilst receiving non-financial benefits as described below.

The RAASA is incorporated in South Africa. The purpose of RAASA is to ensure compliance with the South African Civil Aviation regulations affecting sport and recreational aviation and to liaise with non-profit bodies that represent sport aviation.

The group results are fully disclosed in the accompanying consolidated annual financial statements.

The SACAA has taken over all the functions and operations, assets, liabilities and contingent liabilities of RAASA with effect from 01 April 2019.

35. Budget variances

Material differences between budget and actual amounts

The material variances between actual and budgeted above 5% or in excess of R2 million can be explained as follows:

Interest received

Interest received is R4 620 706 higher than budget as a result of surplus funds invested and better cash flow management.

Other income

Other income is R1 013 417 lower than budget due to lower event sponsorship income from aviation partners.

Passenger safety charge

Passenger safety charge is R6 914 057 lower than budget due to lower passenger numbers than expected. SACAA budgeted to grow passenger numbers by 2.5% and the actual growth for the year was 1%.

Fuel levy

Fuel levy is R2 529 491 lower than budget due to lower volume growth in aviation fuel supply to general aviation and cargo.

Personnel cost

A saving of R8 397 574 on personnel cost was realised, mainly due to vacant positions created by resignation not being filled immediately. The budget assumed a total staff complement of 619 employees and the actual headcount at 31 March 2019 was only 575 employees.





Operating expenses

Operating expenses is higher than budget by R4 369 049 due to unforeseen legal expenses, higher software expenses and high international travel cost to attend international ICAO events.

Depreciation and amortisation

Depreciation is lower than budget by R4 326 209 due to the re-assessment of the useful lives of some assets and the delay in the budgeted acquisition of a replacement flight inspection aircraft.

Repairs and maintenance

Repairs and maintenance is higher than budget by R1 841 396 due to higher than expected maintenance on the old flight inspection aircraft as well as maintenance cost on the buildings.

Finance costs

Included in the budget for finance costs was the amortisation of interest relating to the financing of the replacement aircraft for the flight inspection unit. Due to the delay in the acquisition of the aircraft, the budgeted amount of R2 654 974 was not incurred.

Bad debts written off and debt impairment

Bad debts written off for the year amounted to R1 016 912. The debt impairment provision for the year was increased by R246 370 due to an increase in the recoverability risk of some of the debtors owing at year-end.

Loss on disposal

The condition of fixed assets are evaluated during the year and disposed and/or scrapped where no future economic benefits are anticipated. The loss on the disposal of these assets was not included in the budget.

Changesfromtheapprovedbudgettothefinalbudget

The changes between the approved and final budget are a consequence of reallocations within the approved budget parameters. These adjustments and reallocations were necessary to align the revenue budget with actual trends in activity levels and the expense budget with business needs.

35.Budgetvariances|CONTINUED