SACAA Annual Report 2022_23

PART A I General Information

Aviation Security: One of the responsibilities of the SACAA is to manage international safety and security audits on behalf of the State. The SACAA was visited by the Transport Security Administration (TSA) from the United States in June 2022, when the TSA confirmed the permanent recognition of South Africa’s cargo security regime as being on par with the systems in the United States. This comes with huge economic benefits for South African operators in this space. The organisation also led the State’s ICAO Universal Security Audit Programme Continuous Monitoring Approach, which took place from 15 to 26 August 2022. It was the first time that the State participated in this new audit methodology; however, we are excited to report that no Significant Security Concern was attracted in this audit, which is in line with the target set in the APP for the 2022/23 financial year. To maintain continuous security awareness, the SACAA continued to roll out its Year of Security Culture campaign, partnering with the aviation security sector to deliver Aviation Security exhibitions at 14 of the country’s airports, which were positively received by airport users and passengers alike. The Regulator developed an industry Cyber Security Strategy three years ago in line with developments at ICAO. During the reporting period, the organisation met all the targets planned for the second year in rolling out this strategy, which saw the first cyber security audits taking place at several of the airports in the country. The organisation previously reported that a multi-stakeholder Cyber Security forum was established, and the amendment of the National Aviation Security Programme (NASP) also took place, whilst guidance material for inspectors and the industry was successfully developed. The roll-out of the Risk-Based Oversight model project is gaining momentum, with efforts to collect data from South African operators having recorded great progress during this reporting period. This

phase of the project will be followed by the training of inspectors and the industry, before the migration to risk-based oversight, hopefully by 2025. FINANCIAL SUSTAINABILITY OF THE REGULATOR The total revenue of R885.6 million for the year under review increased by 14.2% compared to 2021/22. It is 2.5% higher than budgeted for the financial year under review, largely due to higher-than-expected passenger numbers during the financial year. Income from passenger safety charges increased by R157.7 million or 52.9%, compared to the previous financial year, due to higher passenger numbers, and user fees increased by R24.8 million or 22%. Income from the fuel levy decreased slightly by 8.5%, as more air cargo was routed through the cargo holds of increasing scheduled passenger flights. Financial support from the Department of Transport decreased from R277.6 million in the previous financial year to R187.9 million in the year under review. The continued support by the Department to assist the entity to stay afloat in the wake of the global pandemic is much appreciated. Over and above the unqualified audit achieved in the AG audit, the SACAA recorded zero fruitless and wasteful expenditure during the reporting period. All undisputed invoices received by the Finance department were processed and paid within 30 days, in line with the governance targets of the Minister of Transport. During the reporting period, the organisation completed the Activity-Based Costing model project in all technical areas. The intention of the organisation with this project is to ensure that the user fees that the Regulator recovers from the industry relate to the cost incurred to deliver the service. The SACAA has already consulted the Department of Transport and Finance and preliminary consultations

22 I Annual Report 2022/23 I General Information