Annual Report - CAA

1 Annual Report 2015/16 South African Civil Aviation AuthorityAnnual Report 2015/16 SACAA Annual Report 2015/162 ContentsPart A general Information 4 general Information 5 List of Abbreviations and Acronyms 6 Foreword by the Chairperson 9 Overview by the Director of Civil Aviation 13 Statement of Responsibility and Confirmation of Accuracy of the Annual Report 20 Strategic Overview 21 Legislative and other Mandates 22 Organisational Structure 23 Board Composition 24 Executive Management Committee 26 PART B Performance Information 28 Statement of Responsibility for Performance Information and Confirmation of Accuracy 29 Auditor s Report : Predetermined Objectives 30 Situational Analysis 31 Strategic Outcome Oriented Goals 37 Performance Information by Objective 38 Key Operational Highlights and Initiatives 46 Review of SACAA Programmes and Activities 49 Revenue Collection 59 Report on RAASA 60 PART C Governance 62 Introduction 63 Executive Authority 64 Accounting Authority 65 Risk Management 74 Internal Control Unit 76 Internal Audit 76 Audit and Risk Committee 77 Compliance with Laws and Regulations 77 Fraud and Corruption 78 Minimising Conflict of Interest 79 Code of Conduct 79 Health.

2 Safety and Environmental Issues 80 Company Secretary 81 Social Responsibility 81 Report of the Audit and Risk Committee 83 PART D Human Resources 88 Overview of Human Resources Matters 89 Human Resource Oversight Statistics 92 PART E Annual Financial Statements 98 Report of the Auditor- general to Parliament on South African Civil Aviation Authority 100 Accounting Authority s Responsibilities and Approval 102 Audit and Risk Committee Report 104 Accounting Authority s Report 108 Company Secretary s Certificate 111 Statement of Financial Position 112 Statement of Financial Performance 113 Statement of Changes in Net Assets 114 Cash Flow Statement 115 Statement of Comparison of Budget and Actual Amounts 116 Accounting Policies 117 Notes to the Financial Statements 137 SACAA Annual Report 2015/16331 August 2016Ms Dipuo Peters Minister of Transport Private Bag X193 Pretoria0001 Honourable Minister PetersIt gives me great pleasure to submit to you the Annual Report of the South African Civil Aviation Authority (SACAA).

3 The Report outlines the performance of the SACAA for the period 01 April 2015 to 31 March 2016. It further details the strides made by the Authority in fulfilling its mandate. Yours faithfullyMr Smunda Mokoena Chairperson: SACAA BoardGeneral InformationSACAA Annual Report 2015/165 Registered name South African Civil Aviation AuthorityPhysical addressIkhaya Lokundiza 116 Treur CloseWaterfall ParkBekker StreetMidrand, JohannesburgPostal address Private Bag X73 Halfway House1685 Telephone number+27 11 545 1000 Fax number+27 11 545 1465 Email address auditors Auditor- general of South AfricaBankers Standard Bank of South AfricaCompany secretaryMs Nivashnee Naraindath (BA, LLB, LLM, Admitted Attorney)

4 ISBN number978-0-620-71232-3RP216/2016 general Information SACAA Annual Report 2015/166 ACC3 Air Cargo or Mail Carrier Operating into the European Union from a Third Country AirportACSAA irports Company South AfricaAFCACA frican Civil Aviation CommissionAGM Annual general MeetingAGSA Auditor- general of South AfricaAIID Accident and Incident Investigation DivisionAIP Aeronautical Information PackageAMO Aircraft Maintenance OrganisationANSAir Navigation ServicesAO Air OperatorAOCAir Operator CertificateAPS Aviation Personnel StandardsARC Audit and Risk CommitteeASIB Accident Safety Investigation BoardASP Advisory Safety PanelATNS Air Traffic and Navigation ServicesATOs Aviation Training OrganisationsATSUs Air Traffic Service UnitsAvMed Aviation MedicineAvSec Aviation SecurityB-BBEE Broad-based Black Economic EmpowermentCA ActCivil Aviation Act, 2009 (Act No.)

5 13 of 2009)CAA Civil Aviation AuthorityCAEC hief Audit ExecutiveCAHRS Confidential Aviation Hazard Reporting SystemCAP Corrective Action PlanCAPSCA Collaborative Arrangement for the Prevention and Management of Public Health Events in Civil AviationCAR Civil Aviation RegulationCARCom Civil Aviation Regulations CommitteeCATS Civil Aviation Technical StandardsCCMAC ommission for Conciliation, Mediation and ArbitrationCDE Cabin Designated ExaminersC-FARP Cross-functional Accident Reduction PlanCFO Chief Financial OfficerCLS Client Services, Licensing and ExaminationsList of Abbreviations and AcronymsSACAA Annual Report 2015/167 CMS Content Management SystemCPLC ommercial Pilot s LicenceCOSCAP Cooperative Development of Operational Safety and Continuing Airworthiness ProgrammeCRM Customer Relationship ManagementCSSR Central Safety and Security Reporting SystemDCA Director of Civil AviationDFE Designated Flight ExaminerDoT Department of TransportEBS Enterprise Business SystemEM Executive ManagerERP Enterprise Resource PlanningEU European UnionEXCO Executive Management CommitteeFAA Federal Aviation AdministrationFIU Flight Inspection UnitFOD Flight Operations DepartmentFTP File

6 Transfer ProtocolGA general AviationGASI general Aviation Safety InitiativeGDP Gross Domestic ProductGM general ManagerGNSS Global Navigation Satellite SystemHR Human ResourcesHRC Human Resources and Remuneration CommitteeH&SHealth and SafetyIATA International Aviation Transport AssociationICAO International Civil Aviation OrganisationICASA Independent Communications Authority of South AfricaICTI nformation and Communication TechnologyICVM ICAO Coordinated Validation MissionILF Industry Liaison ForumIM Information ManagementISO International Standards OrganisationIT Information TechnologyJAAP Joint Aviation Awareness ProgrammeLOC Local Organising CommitteeLRCL egislative and Regulatory CommitteeMoA Memorandum of AgreementMoU Memorandum of UnderstandingMSPM aster Surveillance PlanMTEFM edium-term Expenditure FrameworkSACAA Annual Report 2015/168 MTOW Maximum Take-off WeightNASC National Aviation Security CommitteeNASCOM National Airspace CommitteeNASP National Aviation Security ProgrammeNATJOC National Joint Operational CentreNATJOINTS National Joint Operational and Intelligence StructureNATS National Aviation Transportation StrategyNDP National Development PlanNTCANon-Type Certified AircraftNUMSAN ational Union of Metal Workers of South AfricaOHS Occupational Health and

7 SafetyOSRO rganisational Structure ReviewPAPI Precision Approach Path IndicatorPFMA Public Finance Management Act, 1999 (Act No. 1 of 1999)PMS Performance Management SystemPOCP rocurement Oversight CommitteePPL Private Pilot s LicencePSC Passenger Safety ChargeRAASA Recreational Aviation Administration of South AfricaRPASR emotely Piloted Aircraft SystemsRQC Risk, Quality and ComplianceSAA South African AirwaysSAAsMA Southern African Aerospace Medical AssociationSACAA South African Civil Aviation AuthoritySADC Southern African Development CommunitySANWITS outh African Network for Women in TransportSAXS outh African Express Airways SCM Supply Chain ManagementSLAS ervice Level AgreementSMMES mall.

8 Medium and Micro EnterprisesSMS Safety Management SystemSMTP Simple Mail Transfer ProtocolSRO Southern Regional OfficeSSEC Safety, Security and Environmental CommitteeTCAType Certified AircraftTETAT ransport Education and Training AuthorityTR Treasury RegulationsUAS Unmanned Aircraft SystemsUSOAP Universal Safety Oversight Audit ProgrammeWAN Wide Area NetworkWHOW orld Health OrganizationYTD Year-to-DateSACAA Annual Report 2015/169 Air travel is a major role-player in modern society and contributes immensely to world economies and societal development. Its positive social and economic impact ranges from direct employment through to catalytic enablement of downstream economies.

9 According to the International Air Transport Association (IATA), approximately billion people and 55 million tons of cargo were transported by air in 2015. Similarly, in September 2015, the International Civil Aviation Organization (ICAO) estimated that aviation directly contributed to the creation of million jobs across the globe and around 700 billion US dollars to the global gross domestic product (GDP). ICAO further estimated that because of its cross-cutting nature and multiple links to other economic sectors, the total economic impact of aviation could be around percent of world GDP, equivalent to trillion US dollars, which supports million the home front, a Report released by Oxford Economics in 2011 estimated that the aviation sector contributed over R50 billion to South Africa s GDP, and supports approximately 227,000 jobs.

10 This mirrors the South African Civil Aviation Authority s (SACAA) enormous responsibility in pursuing its mandate, which is to promote and maintain a safe, secure, and sustainable civil aviation environment by regulating the industry in line with international standards. The development of the aviation industry also forms part of the Authority s with Global Standards South Africa is a member of ICAO and subscribes to the organisation s Chicago Convention of 1944. In that regard, South Africa must carry out civil aviation safety and security oversight in line with ICAO prescripts. It is pleasing to Report that South Africa s level of compliance with mandatory ICAO prescripts is currently rated at 84%, which is significantly higher than the world s average of 60%.