2012 | 2013 · submission of the annual report by the executing authority to the legislature i am...

2012 | 2013

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Annual Report Financial Year 2012/2013Vote 8: Department of Rural Development and Agrarian Reform

Province of the Eastern Cape

Table of Contents PART A: GENERAL INFORMATION

1. DEPARTMENT GENERAL INFORMATION 2. LIST OF ABBREVIATIONS/ACRONYMS 3. STRATEGIC OVERVIEW

3.1 Vision 3.2 Mission 3.3 Values 3.4 Strategic outcome orientated goals

4. LEGISLATIVE AND OTHER MANDATES 5. ORGANISATIONAL STRUCTURE 6. ENTITIES REPORTING TO THE MEC 7. FOREWORD BY THE MEC 8. OVERVIEW OF THE ACCOUNTING OFFICER

PART B: PERFORMANCE INFORMATION

1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION 2. REPORT OF THE AUDITOR GENERAL: PREDETERMINED OBJECTIVES 3. OVERVIEW OF DEPARTMENTAL PERFORMANCE

3.1 Service Delivery Environment 3.2 Service Delivery Improvement Plan 3.3 Organisational Environment 3.4 Key policy developments and legislative changes

4 STRATEGIC OUTCOME ORIENTED GOALS 5 PERFORMANCE INFORMATION BY PROGRAMME

5.1 Programme 1: Administration 5.2 Programme 2: Sustainable Resource Management 5.3 Programme 3: Farmer Support Development 5.4 Programme 4: Veterinary Services 5.5 Programme 5: Research and Technology Development Services 5.6 Programme 6: Agricultural Economic Services 5.7 Programme 7: Structured Agricultural Education and Training

6 SUMMARY OF FINANCIAL INFORMATION 6.1 Departmental receipts 6.2 Programme Expenditure 6.3 Transfer payments, excluding public entities 6.4 Public Entities 6.5 Conditional grants and earmarked funds paid 6.6 Conditional grants and earmarked funds received 6.7 Donor Funds 6.8 Capital investment, maintenance and asset management plan

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PART C: GOVERNANCE

1. INTRODUCTION2. RISK MANAGEMENT3. FRAUD AND CORRUPTION4. MINIMISING CONFLICT OF INTEREST5. CODE OF CONDUCT6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES7. INTERNAL CONTROL UNIT8. AUDIT COMMITTEE REPORT

PART D: HUMAN RESOURCE MANAGEMENT

1. LEGISLATION THAT GOVERNS HR MANAGEMENT2. INTRODUCTION3. HUMAN RESOURCE OVERSIGHT STATISTICS

3.1 Personnel related expenditure3.2 Employment and Vacancies3.3 Job Evaluation3.4 Employment Changes3.5 Employment Equity3.6 Performance Rewards3.7 Foreign Workers3.4 Leave utilisation3.5 HIV/AIDS & Health Promotion Programmes3.6 Labour Relations3.7 Skills development3.8 Injury on duty3.9 Utilisation of Consultants

PART E: FINANCIAL INFORMATION

1. REPORT OF THE ACCOUNTING OFFICER3. REPORT OF THE AUDITOR GENERAL4. ANNUAL FINANCIAL STATEMENTS

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GENERAL INFORMATION

I hereby present to the Honourable Member of the Executive Council for Rural Development and Agrarian Reform, (Honourable Zoleka Capa) MPL, the Annual Report of the Eastern Cape Department of Rural Development and Agrarian Reform for the year ended 31 March 2013. Furthermore, I present this Annual Report to Eastern Cape Provincial Treasury and the Provincial Office of the Auditor General in terms of the reporting duties and responsibilities assigned to me as the Accounting Officer of this Department, prescribed by the PFMA, Act 1 of 1999 as amended.

..................................................................................L L NgadaAccounting OfficerDate:

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SUBMISSION OF THE ANNUAL REPORT BY THE EXECUTING AUTHORITY TO THE LEGISLATURE

I am pleased to present to the Honourable F.D. Xasa, Speaker of the Legislature, Province of the Eastern Cape the Annual Report of the Department of Rural Development and Agrarian Reform for the financial year ended 31 March 2013.

I do this in my capacity as the Executing Authority of the said Department, in terms of the Section 65 (1) (a) of the Public Finance Management Act, Act No1 of 1999 (as amended by Act No. 29 of 1999).

................................................................................................Honourable Zoleka CapaMEC for Rural Development and Agrarian ReformDate:

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PART AGeneral InformatIon

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Part A: General Information1. DEPARTMENT GENERAL INFORMATION

Physical Address: Dukumbana Building, Independence Avenue Bhisho, 5605 Postal Address: Private Bag X0040 Independence Avenue Bhisho, 5605

Telephone Number/S: 040-6093471/5

Fax Number: 040-6350604

Email Address: [email protected]

Website Address: www.drdar.gov.za

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2. LIST OF ABBREVIATIONS/ACRONYMS

Abbreviations Definitions

AACL Anti-Animal Cruelty League

ADIMS Animal Disease Information Management System

AFA Aid for AIDS

AFS Annual Financial Statement

ADMIN Administration

AGSA Auditor General of South Africa

AHT Animal Health Technician

APP Annual Performance Plan

ATI Agricultural Training Institutions

BAC Budget Advisory Committee

BAS Basic Accounting System

BBBEE Broad Based Black Economic Empowerment

CASP Comprehensive Agricultural Support Programme

CAE Chief Audit Executive

CFO Chief Financial Officer

CLO Community Liaison Officers

DAFF Department of Agriculture, Forestry and Fisheries

DEDEAT Department of Economic Development, Environmental Affairs and Tourism

DPSA Department of Public Service and Administration

DTI Department of Trade and Industry

D&MV Defence and Military Veterans

ECATU Eastern Cape Appropriate Technology Unit

ECRDA Eastern Cape Rural Development Agency

ECRFC Eastern Cape Rural Finance Cooperation

ECSECC Eastern Cape Economic Consultative Council

EIA Environmental Impact Assessment

ERP Extension Recovery Plan

EU European Union

FET Further Education and Training

FMD Foot and Mouth Disease

GADI Grootfontein Agricultural Development Institute

HET Higher Education and Training

HOD Head of Department

HR Human Resources

ICT Information Communication Technology

IGR Inter-Governmental Relations

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Abbreviations Definitions

IKS Indigenous Knowledge Systems

IT Information Technology

IYM In-Year Monitoring

KPI Key Performance Indicator

LRAD Land Redistribution for Agricultural Development

MEC Member of Executive Council

MOU Memoranda of Understanding

MTEF Medium Term Expenditure Framework

NDA National Development Agency

NMRI National Minimum Information Requirement

NQF National Qualification Framework

OIE Office International des Epizootics

OHS Occupational Health Safety

OTP Office of the Premier

PPP Public Private Partnership

PFMA Public Finance Management Act

PLAAS Progressive Land and Agricultural Acquisition Scheme

PILIR Policy on Incapacity Leave and Ill Health Retirement

PVS Performance of Veterinary Officers

RDA Rural Development Agency

SABC South African Broadcasting Corporation

SAPS South African Police Services

SARS South African Revenue Services

SASAS South African Society for Animal Science

SCM Supply Chain Management

SDIP Service Delivery Improvement Plan

SETA Sector Education Training Agency

SG Superintendent General

SIU Special Investigation Unit

SITA State Information Technology Agency

SLA Service Level Agreement

SMME Small Medium and Micro Enterprises

SPCA Society for Prevention of Cruelty to Animals

TR Treasury Regulations

VPN Veterinary Procedure Notice

WARD Women in Agriculture and Rural Development

YARD Youth in Agriculture and Rural Development

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3. STRATEGIC OVERVIEW

3.1 Vision

Vibrant, equitable, sustainable rural communities and food security for all.

3.2 Mission

Promote, support and co-ordinate rural development and agrarian reform to reduce poverty and under-development through integrated and participatory interventions.

3.3 Values

• Innovation Committed to keeping abreast of new developments in relevant fields of expertise and to being innovative in carrying

out the mandate of the Department.

• Excellence Committed to exceeding our customer’s expectations for quality, responsiveness, efficiency and service excellence.

• Bambisanani Believe that the sum of our collective efforts will be greater than the total of our individual efforts. • MutualRespect Value each other’s contribution as we seek to realise the vision and goals of the Department.

• HonestyandIntegrity Committed to being transparent with all stakeholders.

• Inclusiveness “Bonke abantu esisebenza nabo, siya kusebenzisana nabo ngokufanelekileyo nangokulinganayo”.

3.4 Strategic Outcome Orientated Goals

The three strategic goals of the Department are:• Athrivingfarmingsectorandaccesstoaffordablefood.• Improvedruraleconomiclivelihoodsandcreationofemploymentopportunities.• Anenvironmentconducivetotheenhancementofservicedelivery.

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4. LEGISLATIVE AND OTHER MANDATES

The Department’s mandates are informed by the following Acts:• TheAgricultureDevelopmentAct,1999 ActNo.67of1999• ConservationofAgriculturalResourcesAct,1983 ActNo.43of1983• EasternCapeRuralFinanceCo-operation,Act2012 ActNo.9of1999asamendedbyAct1

of 2012 • VeterinaryandPara-VeterinaryProfessionsAct,1982 ActNo.19of1982• TheAnimalHealthAct,2002 ActNo.7of2002• TheAnimalIdentificationAct,2002 ActNo.6of2002• TheMeatSafetyAct,2000 ActNo.40of2000• AnimalDiseaseAct,1984 ActNo.35of1984• AnimalImprovementAct,1998 ActNo.62of1998• AnimalProtectionAct,1962 ActNo.71of1962• LivestockImprovementAct,1997 ActNo.25of1997• AgriculturalPestsAct,1983 ActNo.36of1983• Fertilisers,FarmFeeds,AgriculturalRemediesandStockRemediesAct,1947 ActNo.36of1947• AgriculturalResearchAmendmentAct,2001 ActNo.27of2001• MarketingofAgriculturalProductsAct,1996 ActNo.47of1996• FencingAct,1963 ActNo.31of1963• LandTenureRightsAct,1991 ActNo.112of1991• IntergovernmentalRelationsFrameworkAct,2005 ActNo.13of2005• PublicFinanceManagementAct,1999 ActNo.1of1999• BasicConditionsofEmploymentAct,1997 ActNo.75of1997• DivisionofRevenueAct,2009 ActNo.12of2009• PreferentialProcurementPolicyFrameworkAct,2000 ActNo.5of2000• PublicServiceActandRegulations,1994 ActNo.103of1994• SkillsDevelopmentAct,1998 ActNo.97of1998• OccupationalHealthandSafetyAct,1993 ActNo.85of1993• EmploymentEquityAct,1998 ActNo.55of1998• PromotionofAccesstoInformationAct,2000 ActNo.2of2000• TreasuryRegulationsissuedintermsofPFMAAct,1999 ActNo.29of2000• PromotionofAdministrativeJusticeAct,2000 ActNo.2of2000• TranskeiCooperation’sAct;1976 ActNo16of1976

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5. ORGANISATIONAL STRUCTURE

Hon Z CapaMEC

Ms N TungataDDG Admin / CFO

VacantDDG: Agricuture

Ms KR ManziDDG: Rural Development

Mr LL NgadaAccounting Officer

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List of Programmes NO PROGRAMME RESPONSIBLE OFFICIAL DESIGNATION

1 Administration Ms N Tungata DDG: Admin / CFO

2 Sustainable Resource Management Ms K R Manzi DDG: Rural Development

3 Farmer Support and Development Ms K R Manzi DDG: Rural Development

4 Veterinary Services Mr L L Ngada DDG: Agriculture

5 Research and Technology Development Mr L L Ngada DDG: Agriculture

6 Agricultural Economic Services Ms K R Manzi DDG: Rural Development

7 Structured Agricultural Education and Training Mr L L Ngada DDG: Agriculture

8 Rural Development Ms K R Manzi DDG: Rural Development

6. ENTITIES REPORTING TO THE MEC

Table 1: Entities, Functions and Relations with the MEC

Name of Entity Legislative Mandate Financial Relationship Nature of Operations

Eastern Cape Rural Development Agency (ECRDA)

Eastern Cape Rural Finance Co-operation Amendment, Act 2012

R114,3 million transferred to the ECRDA

•TheECRDAisacatalystorganisation, with an emphasis on planning, research and project packaging, facilitation, project management, and implementation of priority programmes

•Otherfunctionsareinnovation,development, mobilising resources and capacity

•Ruralfinanceservicestoruralcommunities, with specific emphasis on loan finance on farming enterprises

Eastern Cape Appropriate Technology Unit (ECATU)

Transkei Co-operation’s Act, 1976 R14,8milliontransferredtoECATU •Basicandappliedresearch•InnovationandKnowledge

Management•Projectmanagement•Marketingofinnovativeand

tested technologies•Enterprisedevelopmentand

capacity building for co-operatives.

•Creatingandbuildingstrategicpartners

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7. FOREWORD BY THE MEC

The Department aligns itself with the National Development Plan Vision 2030 which encourages all role players in development to adopt a new approach that systematically treats people as active champions of their own development. Poverty is the enemy of the people and, in this regard, efforts have been made to fight poverty, unemployment, and inequality through various measures. These measures included planting 7,025 hectares of maize and provision of agricultural infrastructure through community construction and 3,245 temporary jobs created for the rural communities.

Food security and food safety are key priority areas for the Department. Increasing population, high price volatility in agricultural commodity markets and high input costs in agricultural production had a severe impact on our agricultural production systems during the year under review.

An animal disease outbreak of African Horse Sickness in Kei Mouth in the Amathole district threatened the horse breeding industry. The severe destruction caused by African Army Worm in some areas of the Chris Hani and OR Tambo districts threatened the production of maize, pastures and the livelihoods of rural farmers. The measures applied in mitigating disease outbreaks limited the potential for further damage to the agricultural sector. Regardless of the latter, to effectively manage the outbreak of diseases remains a challenge for the Department.

Rural development co-ordination is another key priority area of the Department and the Eastern Cape Rural Development Agency (ECRDA) has been established to pursue this function in collaboration with the Department. The ECRDA has a fully functional board and management of operations has progressed well in relation to the recent integration process. In the medium term, the goal is to ensure that the agency is fully resourced and achieves its mandate.

The Department has taken steps to adopt stakeholder engagement as the key driver for sustainable development. During the year under review, an Agricultural Carnival was staged at Bhisho Show grounds. The event enabled the Department to interact with farmers directly, obtain their view and allow the Executing Authority and Top Management time to plan and design development interventions that respond to farmers’ needs.

I would like to extend my gratitude to all stakeholders in the agricultural sector, faith based leaders, non-government organisations and traditional leaders. Lastly but not least, I acknowledge the hard work demonstrated by the management and employees of the Department in doing their best towards the attainment of set performance targets.

.............................................................................................................Zoleka Capa (MPL)Member of the Executive CouncilDate:

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8. OVERVIEW OF THE ACCOUNTING OFFICER

It is my opinion that this annual report truly reflects the current performance of the Department of Rural Development and Agrarian Reform in the Province of the Eastern Cape. It is a reflection of the commitment of the staff of the Department to achieving the mandate as expressed in the strategic plan and annual performance plan of the Department for the year under review.

During the year, the sector was fortunate to operate within fair climatic conditions. Whilst erratic in nature, maybe a sign of climatic change, the Province was blessed with fair rainfall during the predominately summer rainfall period. Apart from limited flood damage occurring during October 2012, no major natural disasters occurred. Minor outbreaks of tuberculosis amongst dairy cattle in the Koukamma (Tsitsikamma), Avian Flu in the Camdeboo (Graaff-Rienet) Municipality and early signs of Army Worm outbreaks were contained successfully. Generally the sector benefited from high beef, mutton and wool prices.

The Department continues to engage the stakeholders in the sector both from within and beyond the Province. Of particular importance are the commodity and farmer organisations that are linked to the major industries in the Province. These include the National Wool Growers’ Association (NWGA), National Emerging Red Meat Producers’ Organisation (NERPO), Citrus Growers’ Association (CGA), Milk Producers’ Organisation (MPO), Grain-SA, African Farmers’ Association of South Africa (AFASA), National African Farmers’ Union (NAFU) and Agri-EC.

Collaborations with international bodies such as Netherlands Programme for International Co-operation in Higher Education (NUFFIC) were engaged to ensure credible upgrading and improvement of the capacity of extension officers. Engagements beyond the (inter?)national boundaries included a visit to Indonesia by the Department and the Provincial Government where lessons were learnt and avenues for collaboration were explored. To this end, the Department has amalgamated Eastern Cape Rural Finance Cooperation (ECRFC) and Accelerated Shared Growth Initiative of South Africa (ASGISA EC) to establish the Eastern Cape Rural Development Agency (ECRDA).

The major aim of consolidating the Province’s efforts through a focused agency, compliant to general development principles and in line with Executive Committee resolutions has been achieved. The new ECRDA Board is embracing the objectives of Government and it is expected to execute these objectives through planning and implementation of high impact priority projects such as the Magwa Tea, Majola Tea, Sugar Beet RSA and Khangela Citrus estates. The ECRDA furthermore seeks to extend the subsidised small loans and employment grant opportunities that exist.

Top Management, as the highest strategic decision making structure mandated to interpret the political directives of Government, has managed to ensure that the whole Department operates in a focused manner with a view to achieving the strategic outcome oriented goals, with outputs achieved in relation to the planned targets.

The matters raised by the Auditor General with regard to qualification and matters of emphasis have been prioritised by the Department. The Department has developed the Audit Intervention Plan and Key Control documents to monitor progress regarding the key findings as raised by the Auditor General, and these are a standing agenda item at Top Management meetings. In addition, regular review of the implementation of the Audit Intervention Plan and Key Control documents were conducted by Internal Audit and reported to the Audit Committee.

In its quest to ensure sustainable resource management, the Department continued to use its limited engineering capacity to provide infrastructure of the best quality. To this effect, 153 designs and 163 advisory reports were issued in lieu of infrastructure development. Two major infrastructure projects, namely the Xashimba abattoir (R14 million) and the Grahamstown poultry abattoir (R7,6 million) are well underway using the CASP allocations to infrastructure. The Land Care Programmeprovided1,826greenjobstocommunitymembersduringtheconstructionofsoilerosionworksandfencingof sensitive areas. Six land use plans were developed to enable sound farming practises. The Eastern Cape Province was

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allocated the highest number of renewable energy wind farms and the Resource Planning Directorate was instrumental in providing the necessary support to the five existing land parcels. The allocation of R2 million for disaster mitigation was concluded leading to the successful management of five disaster relief schemes. The GIS unit created 170 new maps in support of Rural Development initiatives.

The strategy of providing support to farming, focusing on the majority of the resource poor farmers, has worked very well especially on food production. Support was provided to subsistence farmers to collectively plant 7 025 hectares of maize andothergraincrops.TheprovincialLetsemaallocationofR38millionwassupplementedbyafurtherallocationofR38million from DAFF. The strategies deployed to encourage farmers and business communities, to emulate the strides made by the Hon MEC to mobilise resources to plant more hectares, was successful. An initiative by a business woman, Mrs Gloria Serobe, to plant and fence 200 hectares of maize using her own resources (human, financial and physical) for rural farmers in Centane in the Amathole District is commended.

The policy directive adopted by the Department is to use its own mechanisation units with a view to ensuring that tractors and implements are deployed strategically in areas where there is the greatest need. DAFF donated 72 tractors and their implements specifically to expand the planting area of arable land. Through collaboration with the DAFF, the Department was able to receive additional funding that made it possible to plant 7,025 hectares of maize, exceeding the original planned target.

One hundred and seventeen (117) extension officers received training through the Extension Recovery Plan in various technical programmes to enable them to transfer knowledge and skills to newly established smallholder producers in the sector. Thirty seven (37) extension officers have graduated and received an Advanced Diploma in Sustainable Agriculture and Rural Developmentaspartofupgradingtheirqualifications.Currently,282extensionofficersareupgradingtheirqualification.

All outstanding compensation for the farmers whose 1693 ostriches were culled for the control of an Avian Influenza outbreak in Aberdeen were compensated. The Department can safely conclude that its zero tolerance campaign to this disease has given the comfort of its minimal spread in the future. Nationally, South Africa is still working towards being declared Foot and Mouth Disease (FMD) free thus allowing export of beef and related products. The Province is fully committed to obtaining the clearance so desperately required by the industry.

In Great Kei Municipality, Amathole District, the outbreak of African Horse Sickness resulted in the loss of horses for breeding and tourismpurposes;thediseasewascontainedthroughtimelyinoculation.TheDepartmentsourcedsuperiorgeneticqualitybullsand rams and distributed these to community projects across all six districts. These superior animals provide seed stock towards improvement of the livestock of the communal and small-hold farmers as part of the strategy of livestock development.

The Research Directorate presented 25 scientific papers and posters in five scientific congresses. The dissemination of information on crop and animal production was done successfully through distribution of information packs during technology transfer events. Research collaboration with communal farmers and the practice of simulation of typical rural community farming to increase yield and resulting income is bearing fruit.

The Department provided strategic support to the sector by attending to applications of agricultural co-operatives in supportoftheirestablishmentforcollectivefarmingbenefits.Eightypercent(80%)ofallapplicationsforbusinessplanswere compiled as planned in order to access funding for various agri-businesses. Agricultural economic advice to enable farmers to make informed decisions and loan applications and investment opportunities were facilitated. The Department provided support (R11,5 million) to the Ncera Macademia Nuts project in Buffalo City Metropolitan. One hundred and twenty (120) jobs were created and the project is fully prepared for operation.

Furthermore, the Department trained 2,277 farmers in various commodities (livestock production, plant production, home industry) and agricultural business enterprises. The Department trained 145 farm workers and 31 military veterans in agriculturalenterprise.Alearnershipprogrammewasconductedfor89out-of-schoolyouthonanimalandcropproduction.

During the year, the Tsolo Agriculture and Rural Development Institute (TARDI) was given a provisional accreditation to offer a National Diploma in Animal Health by the Council of Higher Education, indeed a huge step towards the ideal of sustainable rural and agricultural training entities.

The Rural Development Pilot Sites Programme identified 11 pilot sites and profiled them. Community profiling enabled the Department to analyse the extent of poverty and underdevelopment for planning and service delivery purposes. One

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hundred and sixty six (166) unemployed youthwere trained and employed during the profiling. The Eastern Cape Socio-Economic Consultative Council (ECSECC) is now commissioned to develop a Spatial Information System for all provincial rural development planning and reporting. Whilst the needs of the stakeholders exceed the services offered by the Department by far, efforts have been put in place to address these by optimal use of available resources.

...................................................................Name: L L NGADA Accounting OfficerDate:

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PART BPerformanCe InformatIon

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Part B: Performance Information1. STATEMENT OF RESPONSIBILITY FOR PERFORMANCE INFORMATION

I hereby submit this report as a true reflection of the Department’s performance towards achieving the outcome oriented strategic goals and objectives. Good progress has been made to ensure that quality services are provided to farming communities and the co-ordination function of rural development has been strengthened.

During the year under review, the Department has managed to ensure that Top Management reviews performance information on a quarterly basis. Monitoring and Evaluation Specialists have been employed and trained to load the performance indicators into an electronic system that will enable monthly and quarterly reporting effectively and accurately in the next financial year. The intention is to also increase the capacity to monitor and evaluate performance information on-time with particular emphasis on verification and validation of actual performance on development projects.

I have established and implemented a system of internal controls to ensure increased levels of integrity and reliability of performance information.

In my opinion, the performance information fairly reflects the performance of the Department for the financial year ended 31 March 2013.

...................................................................Name: L L NGADA Accounting OfficerDate:

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2. REPORT OF THE AUDITOR GENERAL: PREDETERMINED OBJECTIVES

The Auditor General South Africa (AGSA) currently performs 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 report to management, with material findings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.

Refer to page 124 of the Report of the Auditor General, published as Part E: Financial Information.

3. OVERVIEW OF DEPARTMENTAL PERFORMANCE

3.1 Service Delivery Environment

The Department, using an integrated poverty alleviation approach, has been collaborating with other sector departments such as Social Development, Health, Local Government and Traditional Affairs and development agencies namely: National Development Agency, Eastern Cape Rural Development Agency and Ntinga Development Agency, to facilitate seamless service delivery by government. Although these collaborations have accelerated service delivery to poverty stricken communities, integrated planning through Local Inter-governmental Relations (IGR) needs to be strengthened to improve services equitably and avoid duplications.

During 2012/13, a total of 4,513 smallholder farmers received assistance relating to infrastructure development. This included the completion of seven dip tank renovations, 12 new dip tanks, 33 fencing projects, six irrigation developments, 10 stock water supply systems, 14 poultry and piggery production facilities, six livestock handling facilities, one abattoir structure, one vegetable packing facility, and three climate control structures for hydroponic production. A total of 55 mechanisation units were supported. A total of 1,419 temporary jobs were created during the construction phase of the entire infrastructure.

Emerging contractors were placed under tight time lines for construction which in turn exposed cash flow constraints that delayed the implementation of some projects. Inadequate detailed planning contributed to slower project implementation. Regular monitoring of the rates of implementation was instituted to identify and address constraints immediately. The adoption of a three year forward plan is anticipated to address the shortcomings that arose in some of the planning for the 2012/13 projects.

The programme for the revitalisation of irrigation schemes was done in co-operation with the Department of Rural Development and Land Reform, which contributed R20.1 million to developments in the Ncora Irrigation Scheme where 800dairycowson300hectaresisoperationalasacommunity/privatejointventure.Thedevelopment,whichincludedfencing, irrigation systems, dairy infrastructure and upgrading of office accommodation, continues. Similarly the second phase of the development of the Keiskamma Dairy Scheme was financed through an amount of R34,4 million that was made available by the Department of Rural Development and Land Reform. This contributed to the provision of irrigation improvements, fencing, cattle walkways, stock water and the construction of the milking parlour and pasture establishment. The daily production capacities of milk at Keiskamma, Shiloh and Ncora schemes have improved to 15 000, 14 000 and 15 000 litres respectively. This resulted in the creation of 375 jobs in the three schemes.

To achieve the strategic goal of a thriving farming sector and access to affordable food, 91 projects were supported with infrastructure.Toalleviatepovertyandunemployment,1,826greenjobswerecreatedthroughtheLandCareProgrammewhich focuses on protecting arable and grazing lands by constructing conservation works, erecting fences and eradication of noxious weeds. Ninety two (92) agricultural land boundary disputes were adjudicated and resolved. The potential of 277,682 hectares of landwas verified for the crop production programme. During this period, disastermanagementmitigated the impact of floods by supplying and delivering production inputs, vegetable and maize, irrigation equipment and fencing material..

In order to promote, support and develop rural farmers with appropriate cropping technologies, livestock production for sustainable livelihoods, economic growth and poverty reduction, the Department, through the Comprehensive Agricultural Support Programme (CASP), provided agricultural infrastructure in the form of 12 renovated dip tanks, 10 stockwatersystemsand33kmfencingofarablelands.Withthesupportof72tractorsandR38millionfromDAFF,the

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Department managed to plant 7,025 hectares of field crops, exceeding the planned target of 3,766 hectares. Fields that were previously lying fallow were put under production. This contributed positively to the livelihoods of the community as maize is used mainly for home consumption while the surplus is used as a livestock feed and the rest is sold. Through theLivestockImprovementScheme,theDepartmenthasmanagedtoprovide68bullsand273ramstofarmersinorderto improve the genetic quality of the animals. The Department, through Extension and Advisory Services, delivered information through workshops, monitoring visits to strengthen farmer organisation and institutional arrangements. A total of 1,152 agricultural demonstrations were facilitated, 1,254 functional commodity groups were supported, 175 farmers’ days were held, 234 productions plans were drawn and 11 agricultural shows were conducted to improve farmer capacity. Laptops were supplied to 492 extension officers to augment information dissemination to farmers.

African Horse Sickness that was confirmed on the 29 December 2012 at Kei Mouth in Amathole District was also confirmed in the Cofimvaba State Veterinary area in the Chris Hani district. Control measures of the disease by vaccination were carriedout,duringwhichatotalof2,996horseswerevaccinated(2,853inAmatholedistrictand143inChrisHanidistrict)using departmental contingency stocks. Horse-related gatherings were suspended in all the towns where the outbreak had been confirmed. Famers were further advised to implement measures that could limit the infection of the horses, such as stabling of horses from dusk to dawn and constant application of insect repellents.

AnamountofR1.87million incompensationwaspaid for1,693ostriches thatwereculledduring theAvian Influenzaoutbreak confirmed in three farms in Aberdeen. In response to outbreaks of highly pathogenic Avian Influenza in the country, which resulted in an export embargo by the European Union (EU), DAFF introduced a new Veterinary Procedural Notice (VPN No.4) with stringent measures to eliminate outbreaks of the disease. Once the country is declared free of the disease, the export embargo will be lifted by the European Union (EU).

Atotalof761improvedlivestock(68NguniandBonsmarabulls,273MerinoandDohneMerinorams,200Nguniheifers,97 Boer goats and Angora bucks, 23 Boer goat ewes and 100 Dohne Merino ewes) was sourced by the Department during the year in question and distributed to community projects across all the six) districts as well as Mpofu Training Centre. The improved livestock will provide a seed stock towards improvement of the livestock of the communal and smallholder farmers as part of the strategy of livestock development.

The Department, through the research unit, presented 25 scientific papers and posters in five scientific congresses. The dissemination of information on crop and animal production was achieved successfully through distribution of information packs during technology transfer events. The unit has concentrated its research efforts on biofuel, ethno-botanical plants and use of micro-organisms as growth promoters. In support of the bio-fuel industry in Cradock, the research unit established that the correct planting period is May and a suitable cultivar to plant in the agro-ecological zone is Anscha.

Theethno-botanicalsurveyconductedintheProvinceshowedthat17%offarmersareusingonlyindigenoustechniques(derivedfromplantextracts)tocontrolpests,38%areusingacombinationofindigenousandchemicalmethodsand45%are using only chemical methods. The indigenous methods identified will be validated in order to develop affordable, effective and environmentally sound control strategies in the Province and the farmers with validated mixtures will be entitled to patent rights. Through embryo transplants, the imported feral goats are yielding more cashmere than South African goats and the rams from these embryos are ready to be distributed to the communities of the Eastern Cape so as to improve production.

The challenge of tick borne disease in the Province is being addressed through research on tick distribution that showed that the Asiatic blue tick is taking over in areas where they were previously not found. It has also been found that the indigenous and Asiatic blue tick are crossbreeding, resulting in a more resistant and resilient tick. Research support was given to the Provincial Rural Development Programme through an impact assessment survey. The surveys were conducted in partnership and consultations with local municipalities where rural development sites are situated. The Geographic Information System (GIS) unit created 170 new maps in support of the rural development initiative.

The Department provided strategic support to the sector by assisting agricultural co-operatives and agri-businesses in the rural areas with business plans to access funding for production and enhanced profitability. The Department provided support to the high impact priority projects in the Province, for example, Macadamia Nuts Project in Buffalo City Metropolitan Municipality is fully operational and has created 120 jobs. In support of value-chain benefits in the livestock

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industry by black farmers, the Department continued with the completion of the poultry abattoir in Grahamstown as plannedinJuly2013.

The Department contributed to sustainable agrarian transformation and improved access to affordable and diverse food (Outcome 7) through the training of 2,277 farmers in various commodities (livestock production, plant production, home industry) and agricultural business enterprises. In addition, farmers were also trained in computer skills, co-operative governance and erection of fences. The Department also successfully trained 145 farm workers and 31 military veterans in various agricultural enterprises. Furthermore,alearnershipprogrammewasconductedfor89out-of-schoolyouthonanimalandcropproduction.Duringtheyear under review, Tsolo Agriculture and Rural Development Institute (TARDI) was given a provisional accreditation to offer a National Diploma in Animal Health by the Council of Higher Education. Requirements to meet full accreditation demanded that trainers be redirected from training to focus on the accreditation process, hence less farmers were trained.

The Rural Development Pilot Programme is a short term intervention programme which was undertaken to identify pilot sites and 11 sites have been profiled. The profiling enabled the Department to analyse the extent of poverty and underdevelopment for planning and service delivery purposes. One hundred and sixty six (166) youth from Mngazana, Ntafufu, Mngazi, Mbizana, Ndlantaka, Bonxa, Ongeluksnek, Matyeni and Nqalweni, were trained and employed by the Department during the profiling of the pilot sites.

The Eastern Cape Socio Economic Consultative Council (ECSECC), in partnership with the GIS component of the Department, was commissioned to develop a Spatial Information System. The system has been developed and will provide referencing information to support rural development planning interventions.

The community of Lupindweni on the banks of the Kei River at Tsomo was inaccessible for more than 100 years until a partnership with Rance Timber and the Department resulted in the construction of a 7km access road.

Through the provincial wide textile and sewing programme, a number of projects were supported with industrial sewing machines and relevant training. A partnership has been established with the Department of Trade and Industry for quality assurance and marketing of garments and crafts. A number of communities in Ikwezi, Humansdorp, King Sabata Dalindyebo and Ngquza Hill Municipalities were provided with brick making machines and trained in the use of the machines.

3.2 Service Delivery Improvement Plan

Main Services Provided and Standards

Main services Actual customers

Potential customers

Standard of service Actual achievement against standards

Improved procurement services rendered to end users

All end users within the Department

All end users within the Department

In line with the Procurement Plan, Project Implementation Plan and budget allocation, the end user will be provided with technical assistance within the stipulated service standard (SCM Manual) depending on the approved request

All the end users provided with technical assistance within stipulated service standardDepartmental procurement plan developed and approved

Cultivation of virgin land

Land users Land users Process applications for the cultivation of virgin land within three weeks after receipt of the application and, in each case, state the best use of the land given its natural endowment

All applications received for the cultivation of virgin land dealt within three weeks after receipt.A total of 4,693 hectares of virgin land cultivated

22



Main services Actual customers

Potential customers

Standard of service Actual achievement against standards

Monitor the construction of agricultural infrastructure

Smallholder, subsistence and commercial HDI farmers were assisted with infrastructure development in 2012/13

Smallholder, subsistence and commercial HDI farmers that have had on-farm infrastructure development plans included in the 2013/14 and 2014/15 project lists and those that have applied for assistance.

Manage, administer and improve on the construction of infrastructure works to ensure that materials, required work procedures and completed elements of the works are complying with the plans and specifications and contract documentation on time.

Managed, administered and improved the construction of infrastructure with the following actual outputs:A total of 104 on-farm infrastructure structures (fencing projects, dipping facilities, irrigation developments, and various types of sheds, livestock handling facilities, stock water systems and animal housing/production structures) completed during the year

Provision of professional and appropriate technical advice

Communal, emerging and commercial farmers

Commercial farmers

The extension will provide professional and appropriate technical advice to farmers within three working days

Technical and professional advice given to farmers on request within three working daysA total of 265 requests received and dealt with in the stipulated time

Provision of veterinary services

Cattle farmers New livestock farmers

The Department will test 21 samples for Brucellosis (CA) throughout the year within 21 days of receipt, for 105,000 adult cattle

The Department tested 21 samples for Brucellosis (CA) throughout the year within 21 days of receipt, for 128,739adultcattle

Provision of veterinary services

Cattle farmers New livestock farmers

The Department will vaccinate 10,000 heifers for Brucellosis (CA) throughout the year

The Department vaccinated 31,622 heifers for Brucellosis (CA) throughout the year

The Department will vaccinate dogs and cats to control the spread of rabies

Pet owners New pet owners and general public especially youth

The Department will vaccinate dogsandcatswith50%coverage,490 000, recorded on registers and issued vaccination certificates to control the spread of rabies

The Department vaccinated dogs andcatswith71,5%coverage,350,741, recorded on registers and issued vaccination certificates to control the spread of rabies

The Department will disseminate information

Farmers / communities with agriculture production constraints

Tertiary Institutions, schools, co-operatives

The Department will develop technologies and 5,050 brochures and pamphlets per year will be distributed to disseminate information

The Department developed technologies, brochures and pamphlets for dissemination to farmers A total of 34 information packs developed and distributed according to the set standards

Agricultural economics, marketing, statistical agri-business development services

Farmers, banks, development institutions and internal clients within the Department

Farmers unions, other directorates, other departments and strategic partners

The Department advises entrepreneurs on the most economical use of their land and resources and distributes timely economic trends on a monthly basis

The Department advised entrepreneurs on the economic use of land and distributed information on the economic trends on monthly basis

Agricultural training

Farmers, farm workers and military veterans

Farmers who are approached for training needs in all districts

All CASP newly funded projects

Facilitate provision of accredited and short courses on technical training to farmers on all CASP funded projects, Land Redistribution for agricultural Development (LRAD) and military veterans

Facilitated the provision of accredited and short courses on technical training to farmers on all CASP funded projects, LRAD and military veterans with the following results:2,277 beneficiaries trained in various agriculture related enterprises 89out-of-schoolyouthbenefitedfrom two learnership programmes 145 farm workers trained in various farming techniques31 military veterans benefited from various agricultural training

23



Consultation Arrangements With Customers

TYPE OF ARRANGEMENT ACTUAL CUSTOMERS POTENTIAL CUSTOMERS ACTUAL ACHIEVEMENTS

Host suppliers day according to commodities and host awareness shows per programme

All end users with the Department

External service providers/ suppliers.

Six awareness campaigns conducted with service providers/ suppliers in each of the six district municipalities

Meeting with the land users Land users Land users Four meetings held with land users.

Monthly site meetings and issuing critical construction instructions as requiredIssuing of relevant certificates at completion of infrastructure

Farmers benefiting from the departmental support programmes

Smallholder, subsistence and commercial HDI farmers who have had on-farm infrastructure development plans included in the 2013/14 and 2014/15 project lists and those that have applied for assistance

Three meetings involving 93 projects held with farmers benefiting from the departmental support programmes.

Social mobilisation by extension officers. Farmers are consulted on service rendered through Farmer’s Associations

Communal, emerging and commercial farmers

Commercial farmers A total of 325 meetings held for social mobilisation in the rural areas with farmer associations

Ad-hoc meetings Cattle farmers New livestock farmers TheDepartmentconducted182awareness campaigns and ad hoc meetings throughout the Province.

Awareness campaigns, social mobilisation

Pet owners New pet owners and general public especially youth

TheDepartmentconducted182awareness campaigns and ad-hoc meetings throughout the province

District Skills Development Co-ordinators, municipalities, Local Economic Development units, Dept of Local Government and Traditional Affairs with Extension and Advisory Services conduct skills audit to all farmers

Textile projects beneficiariesValue adding project beneficiariesRural community construction projects

Schools and co-operatives Consultations held with various schools and co-operatives in the following Local Municipalities: Amathole,O.RTambo,AlfredNzo,JoeGqabi, Chris Hani, Cacadu, and Nelson Mandela Metro

To ensure that the expectations of government and the intended beneficiaries is better reflected in the business plans

Farmers, banks, Development Institutions and internal clients within the department

Farmers unions, other directorates, other departments and strategic partners

Realistic business plans compiled to source funding and promote sustainability of business enterprises.

District Skills Development Co-coordinators with Extension and Advisory Services conduct skills audit to all farmers

Farmers, farm workers and military veterans

Farmers who are approached for training needs in all districtsAll CASP newly funded projects

Meetings held with all beneficiaries for identification of training needed per project per enterpriseThe skills audits identified validated and submitted to inform training plans

24



Service Delivery Access Strategy

ACCESS STRATEGY ACTUAL ACHIEVEMENTS

Invitations issued to all stakeholders within five working days prior to the site visit

All invitations received dealt with within the stipulated five working days.

Written applications submitted to the district offices (office of the Manager : Resource Planning)

Written applications submitted in the various district offices.

Invitation to beneficiaries to attend scheduled site meetings Invitations sent to beneficiaries to attend scheduled site meetings.

Through extension officer in the ward, specialised services to be accessible in the local municipalities

Specialised services accessible in all the districts through the distribution of production plans, soil sampling and analysis and related recommendations.

Access through Animal Health Technician (AHT) or State Veterinarian The Department made 4,442 callouts as a result of accessibility of its services through Animal Health Technician (AHT) and/or State Veterinarian.

Access through AHT or State Veterinarian, vaccination points, Society for Prevention of Cruelty against Animals (SPCA) and Anti Animal Cruelty League (AACL)

The Department has vaccinated 350,741 dogs and cats as a result of access through AHT or State Veterinarian, vaccination points, and the SPCA.

Research findings accessed currently through extension services Research publications, presentations, pamphlets, demonstration trials and information days were done and propagated through extension officers.

In addition to requests from clients to add proactive initiatives that create new opportunities in agri-business.

Support was given to 12 bee keepers with the main aim of commercialisation of this niche enterprise.

Service Information Tool

TYPES OF INFORMATION TOOL ACTUAL ACHIEVEMENTS

Information made available to beneficiaries on all processes (Bidding Processes), limited to legislative requirements

125 Briefings to all potential bidders.

Issuing land users with approval of application for the cultivation of virgin land. Information days where brochures, flyers, and posters will be freely available

15 Approvals made.

Provide Community Liaison Officers (CLO) with notes of site meetings Notes for three meetings involving 93 projects captured.

Farmers are informed about developments in agricultural technologies through media and information sharing sessions

175 Farmers’ days held.

Information days, posters, flyers and community radio The Department conducted 244 information days, including community radio talk shows, when posters were displayed and flyers distributed.

Research findings presented through technology transfer techniques (e.g. brochures, conference, etc.) to citizens to give full and accurate information about agriculture production

34 Brochures produced.28Presentationsmade.170 Maps created.

Disseminate flyers, through the district offices of the Department and Farmers’ Union.

34 Brochures produced and disseminated.

To expand on the use of other market information systems such as cell phone technology and other media.

Dissemination of weekly market prices to enable farmers to make informed decisions.

Appraise the beneficiaries with training schedule.Competence certificate will be awarded to competent participants.Training institutions provide training information to regular users.

Prospectuses made available to provide information about training courses on offer and information days.Certificates awarded to beneficiaries that completed training.

25



Complaints Mechanism

COMPLAINTS MECHANISM ACTUAL ACHIEVEMENTS

Complaints are received personally, through fax, telephone, written letter and e-mail.

The public catered for at all levels and complaints are resolved within three days.

All complaints are referred to the relevant functionary or district and the client is also informed.

Districts responded within seven days.

Constant follow-up is made to the relevant functionary or district until response is received.

Complaints have been resolved and were not escalated to higher offices.

The complaints handling mechanism has been popularised through email for internal stakeholders, quarterly departmental publication Masilime for external stakeholders.

Most stakeholders aware of the complaint mechanism as the publications are circulated to all districts and in most stakeholder engagements of the Department.

3.3 Organisational Environment

In line with the Skills Development Plan, the Department trained 2,011 out of a total of 3,152 employees. More female (1,308 femalesand703males)employeeswere trained inLeadership,ProjectManagement,MentoringandCoaching,Computer Skills, Financial Management and Report Writing.

In order to enhance operational efficiency within the Information Communication and Technology (ICT) environment, the Department has migrated from Novel to Microsoft system and this migration was successfully implemented. All head office officials were migrated to Microsoft by the end of the financial year and the project is in progress. for regional staff The Microsoft programme is managed internally, unlike Novel which was managed provincially and posed challenges in terms of system control and turnaround time. The Microsoft platform has afforded the Department a continuous backup system which was not available on the Novel system.

Marketing platforms such as publications, brochures and light crystal display (LCD) screens have informed farmers, stakeholders and communities to keep abreast with the work done by the Department.

Paymentofsuppliershasimprovedfrom90%to95%,althoughachievingthegoalofpayingallsupplierswithin30daysfrom receipt of invoices is still a challenge. There are numerous reasons contributing to the Department not achieving the intended100%e.g.changeinsupplierbankdetails,lateconfirmationofservicesorgoodsreceivedandinsufficientfundsagainst relevant items.

In order to address the capacity challenge, the approval of the appointment of four senior management posts was obtained from the Honourable MEC during March 2013. Monitoring and evaluation specialists were appointed and deployed at all district offices in order to improve the capacity of the organisation to effectively monitor and evaluate the implementation of its programmes. The Department has further advertised and filled some of the key posts in the third and fourth quarters of the year under review. Scarce skills remain a challenge for the Department with regard to filling the following posts: scientists, artisans, engineers, extension officers, community animal health workers, animal health technicians, meat inspectors, laboratory technicians and state veterinarians.

A total of 350 digital smart pens were procured to be used by Extension Officers to record information from farmers during their fieldwork. Through consultative engagement with provinces, DAFF developed a draft National Extension Policy document that is aimed at guiding and strengthening extension and advisory services in the country. The Extension Recovery Plan improved communication systems through the purchasing of additional cell phones, laptops and 3G cards. Rapid on-spot advisory services were made possible with the use of the Extension Suite Online System (Extension Decision Support System).

The Department has begun to review its organisational structure to include the rural development functions in order to ensure that the structure is aligned to the mandate.

3.4 Key Policy Developments and Legislative Changes

Eastern Cape Rural Finance Co-operation (ECRFC), Act 9 of 1999 as Amended by Act 1 of 2012, was promulgated to establish this entity of the Department.

26



4. STRATEGIC OUTCOME ORIENTED GOALS

The three strategic goals of the Department are:• Athrivingfarmingsectorandaccesstoaffordablefood• Improvedruraleconomiclivelihoodsandcreationofemploymentopportunities• Aenvironmentthatisconducivetotheenhancementofservicedelivery

These strategic outcome-oriented goals have been identified to reflect critical service delivery priorities. They are intended to:• ensurethatthemissionoftheDepartmentisachieved• providea lineofsight intheprocesstoachievetheoverallmandateoftheDepartment,which is toenhancerural

development, land and agrarian reform, and food security• inspireacadreofofficialsandstakeholderstostrivetoachievetheseforthebenefitoftheruralpoorandvulnerable

The three strategic goals are supported by eighteen strategic objectives that point to specific objective statements which measure the service delivery targets that should be achieved over a five year period, i.e. during the life of the strategic plan 2010/11-2014/15 (see strategic objectives as per programmes in Part B in this report).

5. PERFORMANCE INFORMATION BY PROGRAMME

5.1 Programme 1: Administration

Objective: To manage and formulate policy directives and priorities and to ensure there is appropriate support service to all other programmes with regard to finance, personnel, information, communication and procurement.

List of Sub-Programmes:

• Sub-Programme1.1:OfficeoftheMEC,• Sub-Programme1.2:SeniorManagement,• Sub-Programme1.3:CorporateServices,• Sub-Programme1.4:FinancialManagement,• Sub-Programme1.5:CommunicationServices.

List of Strategic Objectives:

• SO11:Ensuresoundfinancialmanagement,supplychainmanagementandcorporategovernance• SO12:Integratedstrategicmanagement,monitoringandevaluation• SO13:Improveandmanageintra-departmentalexcellenceandinter-governmentalrelations• SO14:Mobilisesocialpartnershipstoaccelerateruraldevelopmentandagrarianreform• SO15:Positionthecommunicationfunctionasanintegralpartofthestrategicmandate• SO16:Developanddeployanefficientinformationandknowledgemanagementstrategysupportedbyanappropriate

Information Communication Technology (ICT) architecture and Information Technology (IT) skills.• SO17:Provisionofadequatesafetyandsecuritymeasurestoensureprotectionofintellectualproperty,information

and assets. SO18:Toalignleadershipanddevelopanappropriateorganisationalcultureandarchitectureinformedbythestrategy

of the Department.

27



Sub-Programme 1.1: Office of the MEC

Objective: To set priorities and political directives in order to meet the needs of clients (for the efficient running of the MEC’s office)

Office of the MECStrategic Objective: Mobilise Social Partnerships to Accelerate Rural Development and Agrarian Reform

Performance IndicatorActual

Achievement 2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013

Deviation from Planned

Target to Actual Achievement

for 2012/2013

Comment on Deviations

1.1 Policy targets and budget speech tabled at the legislature to account for organisational performance

1 1 1 - -

1.2 Annual report tabled to account for organisational performance

1 1 1 - -

1.3 Oversight reports on the implementation of the EAP, deployment of senior managers to strategic operational points in rural areas to accelerate service delivery

1 8 4 (4)

Under-performance

1.4 Oversight reports on the functionality of an executive intergovernmental forum to enable functioning of the IGR

Not part of the plan in

2011/12

1 1 - -

1.5 The shareholders’ compact developed to define the roles between RDA and the Department as required by the prescripts


2011/12

1 1 - -

1.6 Conduct media liaison functions for the Department to promote the image of the Department


2011/12

12 12 - -

1.7 Cater for MEC’s programme to ensure implementation of pledges


2011/12

16 12 (4) Under-performance

1.8 Number of Memoranda of Understanding on the mobilisation (participate, provide capacity and resources to spur the citizen to support the mandate of the Department)


2011/12

1 1 - -

Reasons for All Deviations

1.3 More focus was shifted towards the Ploughing Programme as it was the Presidential programme with the Eastern Cape being the leading province.

1.7 The use of Sector Education and Training Authority (SETA) was linked to re-skilling as per the national arrangement on skilling communities, but the SETA programme only lasted for the first two quarters after which the Department used its limited funding to continue the programme.

Strategy to Overcome Areas of Under-Performance

Measures will be put in place to strengthen the commitment of strategic partners to drive this programme.

Changes to planned targets

None

28



Linking performance with budgets

The Sub-Programme managed to achieve some of its planned targets within the allocated budget. However, the under-performance was due to outstanding invoices from the South African Broadcasting Cooperation and Umhlobo Wenene and payment to institutions of higher learningSub-Programme Expenditure

2012/2013 2011/2012

Sub- Programme 1.1 Office of MEC

Final Appropriation

R’000

Actual Expenditure

R’000

(Over)/Under

ExpenditureR’000

Final Appropriation

R’000

ActualExpenditure

R’000

(Over)/Under Expenditure

R’000

Total 13,569 12,846 723 6,267 5,446 821

Sub-Programme 1.2: Senior Management

Objectiver: To translate policies and priorities into strategies for effective service delivery and to manage, monitor and control performance.

Senior ManagementStrategic Objective: Ensure Integrated Strategic Management, Monitoring and Evaluation.



Planned Target

2012/13

Actual Achievement

2012/2013

Deviation from planned target for 2012/2013


1.1 Number of management meetings : Executive management(weekly)to monitor implementation of Top Management decision

13 48 14 (34)Under-

performance

Top Management (monthly ) meetings to take decisions on strategic issues affecting the Department

9 12 15 3 Over-performance

Senior Management meetings (quarterly) to review the performance of the Department

3 4 4 - -

1.2 Number of Budget Advisory Committee meetings to review monthly report

12 12 12 - -

1.3 Number of Risk Management Committee meetings to oversee risk management in the Department

1 4 4 - -

29



Senior ManagementStrategic Objective: Ensure Integrated Strategic Management, Monitoring and Evaluation.



Planned Target

2012/13

Actual Achievement

2012/2013



1.4

Number of performance reports submitted to the MEC (Annual Report, In-Year Monitoring) to reflect overall performance against predetermined objectives in the Annual Performance Plan

12 1 1 - -

Annual Performance Plan 1 1 1 - -

Budget Plan Not part of the plan in

2011/12

1 1 - -

Operational Plan Not part of the plan in

2011/12

1 1 - -

In-Year Monitoring Not part of the plan in

2011/12

12 12 - -

Medium Term Performance and Financial Oversight Report


2011/12

1 1 - -

Annual Report Not part of the plan in

2011/12

1 1 - -

Quarterly Report Not part of the plan in

2011/12

4 4 - -

1.5 Monitor implementation of Audit Intervention Plan

1 12 12 - -

1.6 International protocols to promote collaborations on relevant areas of interest

- 1 1 - -


1.1 The shortfall in the Executive Meetings was caused by a lack of quorum since Executive members were engaged in other departmental business both internal and external.

The over-performance in the Top Management meetings held was caused by a process that was put in place to catch up with the outstanding meetings which were not held.

Internal Audit

Internal AuditStrategic Objective: Ensure Sound Financial Management, Supply Chain Management and Corporate Governance



Planned Target

2012/13

Actual Achievement

2012/2013



1.1 Credible and qualitative internal audit plan based on the departmental risk profile concluded and approved by the Audit Committee

1 1 1 - -

1.2 Monitoring report on the implementation of the recommendations of the internal audit reports


2011/12

12 19 7 Over-performance

30



Reasons for all Deviations

1.2 Over-performance was a result of additional audit work from the Office of the Superintendent General (SG) and the Audit Committee that was brought up during the financial year after the draft plan was already done.

Special Programmes Unit

Strategic Objective: Ensure Integrated Strategic Management, Monitoring and EvaluationMobilise Social Partnerships to Accelerate Rural Development and Agrarian Reform



Planned Target

2012/13

Actual Achievement

2012/2013

Deviation from Planned Target for 2012/2013


1.1 Number of monitoring reports on compliance with special programmes prescripts in respect of designated groups

Not part of the plan in 2011/12


1.2 Programmes for institutionalisation of matters related to the designated groups




1.1 & 1.2 These under-performances were caused by capacity problem as the manager took a retirement package during last financial year and the post could not be filled because the Executive Authority instructed the Department to upgrade the post to the level of a Senior Manager due to its strategic nature and importance.

Strategy to Overcome Areas of Under Performance

The number of Executive Management meetings will be reduced in the 2013/14 Annual Performance Plan to fortnightly instead of weekly. The Organisational Development Unit was instructed to effect changes as per the MEC’s view and they are awaiting approval of Office of the Premier (OTP) and Department of Public Service and Administration (DPSA). Once approval has been obtained the post will be job evaluated, advertised and filled.

Changes to Planned Targets

None

Linking Performance with Budgets

The under-spending in the programme was caused by the delay in the appointment of the Senior Managers as this led to the delay in the acquisition of the working tools, namely furniture and IT equipment.

Sub-Programme Expenditure

2012/2013 2011/2012

Sub-Programme 1.2: Senior Management

Final Appropriation

R’000

Actual Expenditure

R’000

(Over)/Under

ExpenditureR’000

Final Appropriation

R’000

ActualExpenditure

R’000


R’000

Total 32,306 26,846 5,460 23,941 22,697 1,244

31



Sub-Programme 1.3: Corporate Services

Objective: To provide support service to the other programmes with regard to Human Resources Management and Development, Information Technology and Communication Service

Corporate ServiceStrategic Objective: Ensure Sound Financial Management, Supply Chain Management and Corporate Governance



Planned Target

2012/13

Actual Achievement

2012/2013



1.1 Auditing of all leave records as per Basic Conditions of Employment Act

4 4 4 - -

1.2 Ensure that employee records comply with the National Minimum Information Requirements(NMIR)

4 4 4 - -

1.3 Review HR delegations- 1 - (1) Under-

performance

1.4 Review HR Plan and align to departmental strategy

1 1 1 - -

1.5 Approved Human Resources Development strategies per National Skills Development strategy

1 1 1 - -

1.6 Approved Workplace Skills Plan as per Skills Development Act

1 1 1 - -

1.7 PMDS plan in place and implemented as per Public Service prescripts

4 1 1 - -

1.8 Integrated Employee Wellness Programme implemented and aligned to the Public Service prescript

4 4 4 - -

1.9 Convening of Labour Management Forum as per Labour Relations Act

3 4 4 - -

1.10 Facilitate the implementation of HIV/AIDS Programmes to improve the performance of the organisation

- 4 4 - -

1.11 Number of extension personnel capacitated on technical and generic skills to build global competitiveness

- 367 462 95 Over-performance


1.3 A review of the Human Resource (HR) delegation was done by the branch and submitted to the policy unit to submit to Top Management for final review and approval. The HR delegation is in place but is yet to be approved. Top Management instructed the policy unit to cluster policy submissions for review, which resulted in the under-performance.

1.11 Additional funding was received and it enabled the Department to train more people than was originally planned in the Extension Recovery Plan (ERP).

32



Auxiliary Services

Auxiliary ServicesStrategic Objective: Improve and Manage Intra Departmental Excellence and Intergovernmental Relations



Planned Target

2012/13

Actual Achievement

2012/2013



1.1 A procedure manual to implement health/hygienic norms and standards in the workplace as required in the Occupational Health and Safety Act (OHS)


1 1 - -

1.2 Provide specifications and supplier documents for office furniture and equipment provided to all managers


1 1 - -

1.3 Parking policy developed and submitted within the first quarter


1 1 - -

Organisational Development

Organisational DevelopmentStrategic Objective: To Align Leadership and Develop an Appropriate Organisational Culture and Architecture Informed

by the Strategy of the Department



Planned Target

2012/13

Actual Achievement

2012/2013



1.1 A review of the departmental culture with a view to enhancing perfor-mance concluded by end of the first quarter

Not part of the plan in 2011/12 1 1 - -

1.2 Implementation Plan of the review recommendations developed by second quarter


1.3 Report on the implementation of the recommendations by end of the Financial Year


Information Services-Information Communication Technology

Information Services-Information TechnologyStrategic Objectives: Develop and Deploy an Efficient Information and Knowledge Management Strategy Supported by

an Appropriate Information Communication Technology(ict) Architecture and Information Technology (IT) Skills



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1 Develop and implement the strategy that will be responsive to departmental information needs


1 1 - -

1.2 Convene ICT Governance Structures as per approved IT Governance Framework



1.3 Number of reports on development of Animal Diseases information Management System (ADIMS)


12 12 - -


1.2 There was a delay in appointment of IT Steering Committee members because the submissions on the IT Governance Framework were not approved on time.

33



Strategic Planning

Strategic PlanningStrategic Objective: Ensure Integrated Strategic Management, Monitoring and Evaluation



Planned Target

2012/2013

Actual Achievement

2012/2013

Deviation From Planned Target For 2012/2013


1.1 Annual Performance Plan (APP) developed in terms of National Treasury Regulations to ensure the Department implements its predetermined strategic objectives

1 1 1 - -

1.2 An Operational Plan aligned to the APP developed to ensure that programme activities are implemented

1 1 1 - -

1.3 A monitoring report on compliance with standard policy and procedures for planning by programme managers submitted to Head Office


1 1 - -

1.4 Review report of the strategy developed and submitted to the Head of Department to ensure its relevance in order to achieve the strategic objectives


1 1 - -

Monitoring and Evaluation

Monitoring and EvaluationStrategic Objective: Ensure Integrated Strategic Management, Monitoring and Evaluation



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1 A well -resourced, functional and efficient monitoring and evaluation unit in place to efficiently collate manage and report credible information on departmental performance from all programmes throughout the year

1 1 1 1 -

1.2 Compilation and analysis of departmental performance information reports in compliance with the National Treasury guidelines on quarterly and annual basis

4 34 34 - -

1.3 Conduct and give feedback on an evaluation of performance annually to establish outcomes and impacts of the departmental intervention programmes in the peri-urban and rural communities

1 1 1 - -

1.4 Monitoring and reporting on the implementation of major departmental programmes to establish their output progress


4 4 - -

34



Policy and Legislation

Policy And LegislationStrategic Objective : Ensure Integrated Strategic Management , Monitoring and Evaluation



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1 Number of policies to be designed/drafted


3 3 - -

1.2 Number of policies to be reviewed 2 3 3 - -

1.3 Annual policy speech drafted for MEC 1 1 1 - -

1.4 Time taken to draft each policy (90 days per policy)


90days 90days - -

1.5 Number of existing legislation reviewed



Reason for All Deviations

1.5 Legislative review process exceeded planned period due to unforeseen legal requirements such as public participation that had to be met before an existing Act is reviewed.


Human Resources: The Department will use the currently approved HR delegations until the approval of the organisational structure.

Information Services Information Technology: The Department will develop the year planner with clear deliverables with dates that will commit management to the set deliverables and timeframes.

Policy Unit: The Policy Unit will explore other means to control the consultation process with stakeholders. Changes to Planned TargetsNone


The under-expenditure of the sub-programme was due to natural attrition of a number of staff members and the delay in appointment of a GM: Strategy Development and Management and a GM: Corporate Services. Training was done towards the end of the fourth quarter and therefore some invoices missed the cut off payment date and this led to under-expenditure on goods and services. Capital under-expenditure was caused by delays in the procurement of the IT equipment.


2012/2013 2011/2012

Sub-Programme: Corporate Services

Final Appropriation

R’000

ActualExpenditure

R’000

(Over)/Under

ExpenditureR’000

Final Appropriation

R’000

ActualExpenditure

R’000


R’000

Total 191,115 189,464 1,651 203,964 199,528 4,436

35



Sub-Programme 1.4: Financial Management

Objective: To provide effective support services (including monitoring and control) with regard to budgeting, provisioning and procurement

Financial ManagementStrategic Objective: Ensure Sound Financial Management, Supply Chain Management and Corporate Governance



Planned Target

2012/13

Actual Achievement

2012/2013



1.1 Report on the maximum revenue collected as per predetermined revenue budget submitted to the Accounting Officer on a monthly basis

12 12 12 - -

1.2 Status report on suspense accounts reconciled or cleared submitted to the Accounting Officer on a monthly basis


12 12 - -

1.3 Report on the cash flow projections reports submitted to the Accounting Officer on a monthly basis

2 48 48 - -

1.4 Interim and Annual Financial Statements submitted to the Accounting Officer on a monthly basis


4 4 - -

Financial Planning

Financial PlanningStrategic Objective: Ensure Sound Financial Management, Supply Chain Management and Corporate Governance



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1 Budget submission to ensure optimal resource allocation prepared and submitted to the Accounting Officer for approval


1 1 - -

1.2 In-year monitoring report prepared and submitted to the Accounting Officer on a monthly basis.


12 12 - -

Expenditure Services

Expenditure ServicesStrategic Objective: Ensure Sound Financial Management, Supply Chain Management and Corporate Governance



Planned Target

2012/2013

Actual Achievement

2012/2013


Comment on deviations

1.1 Report on payment of invoices within 30 days on receipt of invoice as stipulated in PFMA submitted to the Accounting Officer on a monthly basis as part of In-Year-Monitoring report.


12 12 - -

1.2 Time taken for payment of service benefits before and after submission to SARS (21 days per case)


21 days 21 days - -

36



Supply Chain Management

Supply Chain ManagementStrategic Objective: Ensure Sound Financial Management, Supply Chain Management and Corporate Governance



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1 A Procurement Plan to guide and regulate procurement by service delivery programmes in terms of Treasury Guidelines developed


1 1 - -

1.2 Monitoring report on implementation and management of the Procurement Plan submitted to the Accounting Officer on a monthly basis


12 12 - -

1.3 Departmental supplier’s database updated and submitted to Provincial Treasury on a monthly basis


12 12 - -

1.4 Monitoring report on commitments management by Programme Managers using the Commitment Register submitted to the Accounting Officer


12 12 - -

1.5 An innovative strategy to accelerate procurement processes developed and submitted




1.5 Innovative strategies like bulk buying were developed and implemented during the first six months to accelerate procurement. Other strategies, namely term contracts, were discussed but not implemented in the second six months but will be implemented next financial year.

Contract and Supply Chain Management Performance Services

Contract and Supply Chain Management Performance ServicesStrategic Objective: Ensure Sound Financial Management, Supply Chain Management and Corporate Governance



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1 Time taken to design contracts, SLA and MOU with suppliers and partners(three days per document)


3 days 3 days - -

1.2 Monitoring report on leases management by Auxiliary Services using the lease register submitted to the Accounting Officer


2 2 - -

1.3 Supply Chain Management compliance report submitted to the Accounting Officer on a monthly basis

2 12 12 - -


None

37



Asset Management

Asset ManagementStrategic Objective: Ensure Sound Financial Management, Supply Chain Management and Corporate Governance



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1 Status report on asset register developed and functional, submitted to the Accounting Officer on a quarterly basis


8 8 - -

Internal Control

Internal ControlStrategic Objective: Ensure Sound Financial Management, Supply Chain Management and Corporate Governance



Planned Target

2012/2013

Actual Achievement

2012/2013

Deviation from Planned Target

for 2012/13


1.1 Annual Risk Management Plan completed and approved by the Risk and Compliance Committee


1 1 - -

1.2 Annual Compliance Management Plan completed and approved by the Risk and Compliance Committee


1 - (1)Under-

performance


1.2 Compliance and internal control policies have been drafted but were not approved on time.


Supply Chain Management: The innovative strategies to accelerate procurement processes that were discussed but never implemented will be implemented in the next financial year.

Internal Control: To overcome areas of under-performance, the Departmental Internal Control Policy Guidelines, Policy Framework and Conceptual-Framework/Model have been drafted for approval and implementation.Changes to Planned Targets

None


The under-expenditure in compensation of employees and capital was caused by the posts which were advertised and budgeted for but not yet filled, together with their IT equipment and furniture. In Goods and Services the under-expenditure was caused by invoices for the month of March which were not paid to Fleet Services for contract and fuel.


2012/2013 2011/2012

Sub-Programme:Financial Management

Final Appropriation

R’000

ActualExpenditure

R’000

(Over)/Under

ExpenditureR’000

Final Appropriation

R’000

ActualExpenditure

R’000


R’000

Total 191,136 183,135 8,001 199,476 205,785 (6,309)

38



Sub-Programme 1.5: Communication Services

Objective: This sub-programme proposes to focus on internal and external communications of the Department through written, verbal, visual and electronic media as well as marketing and advertising of the departmental services.

Communication ServicesStrategic Objective: Position the Communication Function as an Integral Part of the Strategic Mandate



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1 A Communication Plan aligned to the policy speech to ensure proper marketing of the departmental programmes


1 1 - -

1.2 Development and implementation of the Integrated Public Participation Plan in order to inform the stakeholders about the departmental programmes


1 1 - -


None


None


None


The Sub-Programme managed to achieve all its targets within the allocated budget.


2012/2013 2011/2012

Sub-Programme:Communication Services

Final Appropriation

R’000

ActualExpenditure

R’000

(Over)/Under

ExpenditureR’000

Final Appropriation

R’000

ActualExpenditure

R’000


R’000

Total 5,809 5,758 51 4,922 4,758 164

39



5.1. Programme 2 : Sustainable Resource Management

Purpose: To provide agricultural support services to farmers in order to ensure sustainable development and management of agricultural resources.

List of Sub-Programmes

• Sub-Programme2.1:EngineeringServices• Sub-Programme2.2:LandCare• Sub-Programme2.3:LandUseManagement• Sub-Programme2.4:DisasterManagement

List of Strategic-Objectives

• SO2:Provideappropriateagriculturalinfrastructure.• SO10:Promotelandusemanagementandprotectionofnaturalresources.

Sub-Programme 2.1 : Engineering Services

Objective: To provide engineering support (planning, development, monitoring and evaluation) with regard to irrigation technology, on-farm mechanisation, value adding, farm structures, resource conservation management, operation and maintenance of farm equipment, machinery, tools and implements solutions

Engineering ServicesStrategic objective : Provide Appropriate Agricultural Infrastructure



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1Number of agricultural engineering advisory reports prepared


1.2 Number of designs with specifications for agricultural engineering solutions provided


1.3 Number of final certificates issued for infrastructure constructed

132 123 91 (32) Under-performance

1.4Number of clients provided with engineering advice during official visits



1.1 The assumption was made when planned targets were set that, with the departmental focus shifting towards fewer bigger projects, the number of planning reports would be significantly less. However, in practice, some projects have benefitted from more than one type of infrastructure for which a separate planning report had to be prepared.

1.2 Despite fewer projects supported with infrastructure, some projects benefited with more than one type of infrastructure for which designs and specifications were done.

1.3 Completion certificates for a number of projects could not be issued because of delays in construction. At some projects construction started later than planned and at other projects the progress with construction was slower than anticipated.

1.4 Additional funds to support farmers with mechanisation were made available. This resulted in an increase in the demand for engineering advice on operation and operation of tractors and implements. The ploughing of lands also continued past the normal planting window and, apart from maize, other crops such as potatoes were planted, which also contributed towards the target being exceeded.

40



Strategy to Overcome Areas of Under-performance

The number of completion certificates issued was less than targeted. The start of projects was delayed due to a shortage of engineers and engineering technicians, who could not complete the designs and specifications to invite tenders for construction to start on the planned date. To overcome under-performance in the coming financial year, a number of the designs for larger projects will be outsourced to consulting engineers. Some of the infrastructure was not completed in time to issue completion certificates, due to contractors who were appointed but did not have the capacity to keep to the construction programme. More strict screening of contractors will be done to avoid the awarding of tenders to such contractors.


None


Despite sufficient financial resources, critical vacancies for engineers and engineering technicians could not be filled. The shortage of staff resulted in the delay in the preparation of designs and specifications to invite tenders for infrastructure. This caused a delay in the awarding of tenders for the construction of infrastructure, which in the end could not be completed within the planned timeframes


2012/2013 2011/2012Sub-

Programme: Engineering

Services

Final Appropriation

R’000

ActualExpenditure

R’000


R’000

Final Appropriation

R’000

ActualExpenditure

R’000


R’000

Total 61,409 56,333 5,076 49,296 46,677 2,619

Sub-Programme 2.2 : Land Care

Objective: To promote the sustainable use and management of natural agricultural resources.

Land CareStrategic Objective: Promote Land Use Management and Protection of Natural Resources



Planned Target

2012/2013

Actual Achievement

2012/2013


Target to Actual Achievement for

2012/2013


1.1Number of awareness campaigns conducted on land care

15 18 22 4Over-

performance

1.2Number of capacity building exercises conducted within approved Land Care projects

25 24 23 (1)Under-

performance

1.3Number of farm land hectares improved through conservation measures

4321 6540 4637 (1903)Under-

performance

1.4Number of beneficiaries adopting sustainable production

9668 9494 8569 (925)Under-

performance

1.5Kilometres of fences erected on arable and grazing lands rehabilitation purposes

74 194 113 (81)Under-

performance

1.6Number of green jobs created through Land Care

1672 1270 1826 556Over-

performance

41




1.1 Target was exceeded by four due to an additional four campaigns being specifically organised to address the control of illegal sand mining and junior Land Care in the Western and Chris Hani District municipalities to educate communities, as more illegal sand mining was identified.

1.2 Target was missed by one due to lack of no till equipment in the Chris Hani District for demonstration purposes.1.3 Target was missed by almost 1,903 due to late delivery of fencing materials by emerging fencing contractors. This

affected construction of soil conservation structures such as gabions and fencing off of eroded areas.1.4 The target was missed by 925 due to lack of conservation agriculture equipment for demonstration purposes and

uneasiness on the part of rural farmers to accept no till practices.1.5Targetwaslessby81duetoinabilityofcertainemergingfencingcontractorstodeliverfencingmaterialsongoodtime.

Districts have undertaken to blacklist those individual contractors.1.6 Target was far exceeded by 556 in terms of intake numbers but with short period of employment due to late delivery

of fencing materials. In other words, there was more absorption of casual workers to offset backlog but their period of engagement was short because fencing material arrived late in the year.


The Department will only appoint fencing contractors with proven capacity and sufficient finances to undertake fencing erection work. Fencing contractors with bad track records will be blacklisted and their data kept for future reference.

Intensified visits across the entire district will be encouraged and organised to enable farmers involved in Conservation Agriculture (CA) to gain access to no-till equipment from those districts that are using the technique. The spinoffs from this exercise will be an increase in the adoption rate of the new production practices. Changes to Planned Targets

None


The same challenge in 2.1 was and is still being experienced for Sub-Programme 2.2 and 2.4. Reshuffling of staff within Programme 2 is being considered.


2012/2013 2011/2012

Sub-Programme: Land Care

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Total 18,494 16,456 2,038 14,455 13,102 1,353

42



Sub-Programme 2.3 : Land Use Management

Objective: To promote the implementation of sustainable use and management of natural gricultural resources through regulatedLandUse(Act43of1983andAct70of1970).

Land Use ManagementStrategic Objective: Promote Land Use Management and Protection of Natural Resources



Planned Target 2012/2013

Actual Achievement

2012/2013


to Actual Achievement for 2012/2013


1.1Number of applications for change of land use processed


70% - 100%Under-

performance

1.2Number of applications for land verification purposes processed

1,254,464 72%100(277,682)

28%Over-

performance

1.3Number of applications for land allocation for residential and arable purposes processed

160 70%92(3,385)

22%Over-

performance

1.4Number of land and boundary disputes processed

97 100% 83%(92) (17%)Under-

performance

1.5

Number of land ownership demarcation/subdivision data captured for farm and rural land management

9,164 100%80%(5,683)

(20)Under

performance

1.6Number of recommendations made for subdivision/rezoning/ change of agricultural land use

97 44 33 (11)Under-

performance

1.7

Number of farm plans developed to determine the capacity and the potential of planned enterprises within a defined production unit

142 123 175 52Over

performance

1.8Applications for land assessed (virgin land) for cultivation purposes to benefit farmers

3,966 720 3,973 3,253Over

performance

1.9

Number of requests for veld assessment area to determine the carrying capacity of pastures for commercial and previously disadvantaged farmers

21,808 100%100%(12,799)

- -

1.10

Number of land use plans developed to determine the capacity and the potential of the planned land area

6 100%100%(6)

- -

1.11Number of data sets acquired and maintained

60 100%100%(175)

- -

1.12Number of maps and data sets supplied to end users 357 263 898 635

Over-performance


1.1 The KPI was taken out and replaced by 1.6 and it was erroneously included in the APP as 1.1.1.2 Additional planned assessments were done as a result of a request from the Department of Rural Development and

Land Reform in the Western District to assess eighty-nine Progressive Land Agricultural Acquisition Scheme (PLAAS) farms for land redistribution purposes. In addition to that there was an urgent request for land verification for the

43



ploughing plan programme in the Amathole and Chris Hani districts.1.3 More applications were received than anticipated due to the rural housing scheme.1.4 Of the cases received there were a number that required extensive consultation and processes which resulted in

delayed finalisation.1.5 More data was collected as per item 1.2 and 1.3 that resulted in data not totally captured.1.6 There was an under-performance by 11 applications due to overestimation of the target. 1.7 The target was exceeded by fifty-two farm plans due to the work done for other departments (Land Reform projects)

that were not part of the work plan.1.8 Targetexceededbyabout3,000hectaresbecauseland-usersaremorecautiousnowthanbeforetouseagricultural

resources in a sustainable manner, as a result of planned policies awareness conducted by the Department for the province during the 2011/12 financial year.

1.12 More maps were issued to farmers than anticipated due to more co-operations between officers and land-users.


Area of under-performance is on 1.6. The performance area depends on applications submitted for sub-division, rezoning and change of agricultural land use. Therefore the Department cannot accurately predict the demand in terms of the number of applications to be processed. The strategy is to attend to applications as effectively as possible when these are received.


None


Difficulties in procuring some of the equipment posed a challenge in budget expenditure.

44




2012/2013 2011/2012

Sub- Programme: Land Use

Management

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Totals 77,615 68,684 8,931 69,035 64,671 4,364

Sub-Programme 2.4 : Disaster Management

Objective: To provide support service to clients with regards to agricultural disaster risk management

Disaster ManagementStrategic objective: Promote Land Use Management and Protection of Natural Resources



Planned Target

2012/2013

Actual Achievement

2012/2013

Deviation from Planned Target to

Actual Achievement for 2012/2013


1.1

Number of early warning advisory reports issued for planning for adverse weather conditions


12 12 - -

1.2Number of disaster relief schemes managed for assistance to disaster stricken farmers


4 4 - -

1.3

Number of disaster awareness campaigns conducted to create awareness to farming community of all adverse weather conditions and climate change and probable times of occurrence


18 7 (11)Under

performance

1.4

Number of agricultural conditions reports as compiled and submitted to DAFF for incorporation into National Advisory Board


12 12 - -


1.3 Awareness campaigns could not be undertaken as planning had not been completed due to challenges with procurement processes that are centralised to Department of Agriculture, Forestry and Fisheries and as a result of under-capacity.


Timely submission of proposals in terms of awareness campaigns to the Directorate of Disaster Relief at DAFF in order to obtain mutual understanding in terms of the implementation of awareness campaigns in the Province.


None

45



5.2. Programme 3 : Farmer Support Development

Objective: To provide support to farmers through agricultural development programmes.

List of Strategic Objectives • Strategicobjective2:ProvideappropriateagriculturalInfrastructure• Strategicobjective4:ProvideFarmerSupportServicesandFarmerDevelopment• Strategicobjective5:Increasehouseholdfoodproductionandfoodsecurity


• Sub-Programme3.1:FarmerSettlementandDevelopment• Sub-Programme3.2:ExtensionandAdvisoryServices• Sub-Programme3.3:FoodSecurity

Sub-Programme 3.1 : Farmer Settlement and Development

Objective: To facilitate, co-ordinate and provide support to smallholder and commercial farmers through sustainable agricultural development within agrarian reform initiatives.

Farmer Settlement and DevelopmentStrategic Objective: Provide Appropriate Agricultural Infrastructure



Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


1.1Number of farm assessment completed


149 117 (32)Under-

performance

1.2 Number of farm plans completed Not part of the plan in 2011/12

82 104 22Over-

performance

1.3Number of smallholder farmers supported


4513 4513 - -

1.4

Number of fencing projects (covering 399km) completed for arable and grazing land to control movement of large and small stock farmed by previously disadvantaged farmers


46 33 (13)Under-

performance

1.5

Number of dip tank renovations completed to improve health conditions of large and small stock owned by previously disadvantaged farmers


6 7 1Over-

performance

1.6

Number of new dip tanks completed to improve health conditions of large and small stock owned by previously disadvantaged farmers

8 10 12 2Over-

performance

1.7

Number of irrigation projects (covering 200 hectares) completed to increase production levels in areas where intensive crop production is practiced by previously disadvan-taged farmers

6 4 6 2Over-

performance

46



Farmer Settlement and DevelopmentStrategic Objective: Provide Appropriate Agricultural Infrastructure



Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


1.8

Number of water supply systems completed to improve level of animal production by previously disadvantaged farmers

18 19 10 (9)Under-

performance

1.9

Number of mechanisation units developed and supported to increase productivity of crop and animal enterprise practiced by previously disadvan-taged farmers

6 12 55 43Over-

performance

1.10

Number of animal production facilities completed to support dairy, poultry and piggery enterprises practiced by previously disadvantaged farmers

12 21 14 (7)Under-

performance

1.11

Number of handling facilities completed to support the marketability of large and small stock owned by previously disadvantaged farmers

5 14 6 (8)Under-

performance

1.12

Number of abattoir structures completed for value adding and processing of animal products to support economic growth of previously disadvantaged farmers


3 1 (2)Under-

performance

1.13

Number of vegetable packing facilities completed for value adding and processing crop products to support economic growth of previously disadvantaged farmers


1 1 - -

1.14

Number of climate structures completed to increase production levels in areas where intensive crop production is practised by previously disadvantaged farmers


1 3 2Over-

performance

1.15

Number of pack sheds/storage sheds completed for crop livestock and mechanisation purposes to support economic growth for previously disadvantaged farmers

9 16 11 (5)Under-

performance

1.16

Number of EPWP jobs created in support of rural development in previously disadvantaged farming areas

851 1264 1419 155Over-

performance

47




1.1 Under-performance was influenced by lower requests for farm assessments received from Department of Rural Development and Land Reform.

1.2 Over-performance arose from the completion of plans for food security projects that were required due to additional funding for cropping projects and the adoption of new more efficient technology such as upgraded GIS procedures.

1.4. Under-performance occurred due to use of funds to settle carryover-commitments from 2011/2012 that meant some projects had to be placed on hold awaiting rollover funds.

1.5. 1.6 & 1.7 Over-performance arose from a carryover project from 2011/2012 only being completed in 2012/2013.1.8 Under-performancewasduetoanumberofstockwaterprojectsnotbeingcompletedas theborehole

water supply was inadequate to justify further development.1.9 Over-performance arose from the receipt of tractors from DAFF that had not been projected.1.10 Under-performance occurred due to the use of funds to settle carryover-commitments from 2011/2012,

which meant that some projects had to be placed on hold.1.11 Under-performance occurred due to use of funds to settle carryover-commitments from 2011/2012, which

meant that some projects had to be placed on hold.1.12 Under-performance stemmed from the onset of construction on the Xashimba abattoir and the Grahamstown

poultry abattoir being delayed due to lengthy procurement processes exacerbated by postponement of BAC sittings.

1.13 Over-performance arose from a carryover project from 2011/2012 only being completed in 2012/2013.1.14 Under-performance occurred due to the planned transfer of funds for implementation of the projects by the

Rural Development Agency being placed on hold because transfers to the entity were not in good standing with Treasury.

1.15 Over-performance stemmed from the increased jobs that flowed from the introduction of community construction processes for fencing and some dip tank projects.


The creation of a greater lead time to ensure well advanced planning was achieved by tackling a number of large projects in 2013/2014 that are outsourced as turnkey projects, which reduces the work pressures on technical and engineering capacity in the Department and allows greater time for forward planning.


None


The budget figures for 2012/2013 show significant under-spending of R14.4 million. Under-spending occurred under Goods and Services and is due to the slow progress on some infrastructure projects being behind schedule. Performance as measured by the performance indicators shows that despite the under-spending, performance equalled or exceeded the target in nine of the sixteen performance indicators. This arises from the completion of projects carried over from 2011/2012 boosting the performance recorded in some indicators.


2012/2013 2011/2012Sub-

Programme: Farmer

SettlementDevelopment

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Total 100,060 85,563 14,497 101,339 96,092 5,247

48



Sub-Programme 3.2 : Extension and Advisory Services Objective: To provide extension and advisory services to farmers

Extension and Advisory ServicesStrategic Objective: Provide Farmer Support Services and Farmer Development



Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


1.1Number of agricultural demonstrations facilitated to practically educate farmers

1,448 680 1,152 472Over-

performance

1.2

Number of functional commodity groups supported for institutional management of farmer development

1,072 482 1,254 775Over-

performance

1.3

Number of farmers’ days held to transfer technology, awareness of development programmes and policies

718 171 175 4Over-

performance

1.4Number of production plans drawn for farmer enterprise development

856 484 234 (250)Under-

performance

1.5Time taken to complete a production plan (30 days per plan)


30 days 30 days

1.6Number of agricultural shows organised to encourage farmer to farmer approach

33 13 11 (2)Under-

performance

1.7

Number of informative and educational gatherings organised and attended to improve image and professionalism

120 70 81 11Over-

performance

1.8

Number of reports submitted on ERP as per national guideline pillars, recruitment, ICT, re-skilling and reorientation, image and professionalism, visibility and accountability


4 4 - -


1.1/1.2 Over performance on agricultural demonstrations and support to commodity groups has been a result of the demand by other departments involved in poverty alleviation. Extension Officers had to assist in technology transfer in school, clinic and community gardens initiated by Social Development, Health, and the National Development Agency.1.3 Farmers’ days are led by farmers and they are enthusiastic about hosting such events as platforms where they

share knowledge, gain new information and become educated on departmental programmes and policies, hence the over performance.

1.4 A change in the strategy of implementing the ploughing programme resulted in the programme being given to Eastern Cape Rural Development Agency and Ntinga Development Agency to implement and therefore various projects were consolidated into single area specific production plans by these agencies.

1.6 Two of the shows for special groups, Women in Agriculture and Rural Development (WARD) and Youth in Agricul-ture and Rural Development (YARD), were fused into a single agricultural show event.

1.7 Integration and co-ordination by sector departments led to facilitation of more workshops towards realising co-ordination and collaboration of rural development.

49




A structured stakeholder and entity approach for farmer support and development is to be implemented to create a discussion platform that will avoid unnecessary duplication of services rendered to same clients.

Changes o Planned Targets

None


The sub-programme was able to achieve most planned targets despite the over-expenditure on compensation of employees.


2012/2013 2011/2012Sub- Programme:

Extension and Advisory Services

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Total 315,088 317,029 (1,941) 282,410 279,783 2,627

Sub-Programme 3.3 : Food Security

Objective: To support, advise and co-ordinate the implementation of pillar one of the Integrated Food Security Strategy of South Africa (IFSS)

Food SecurityStrategic Objective: Increase Household Food Production and Food Security



Planned Target

2012/2013

Actual Achievement

2012/2013




1.1Number of verified food insecure households supported


13,700 4,416 (9,284) Under-performance

1.2Number of food security status reports compiled


4 4 - -

1.3Report on implementation of Zero Hunger Strategy to fight poverty


4 4 - -

1.4Numbers of hectares planted to field crops to produce food and improve income


3,766 7,025 3,259 Over- performance

1.5Tons of field crops harvested for food security during current reporting period


15,064 640 (14,424)Under-

performance

1.6

Numbers of rainwater harvesting water tanks provided to communities for food production to improved access to affordable food


150 72 (78)Under-

performance

50



Food SecurityStrategic Objective: Increase Household Food Production and Food Security



Planned Target

2012/2013

Actual Achievement

2012/2013




1.7

Number of Agri-parks supported to process excess produce from the household food gardens and to marketable products (including school feeding schemes)


2 0 (2)Under-

performance

1.8Number of community food producing projects supported


13,700 4,416 (9,284)Under-

performance

1.9Number of vulnerable referred to food bank to access fresh food


1 1 - -

1.10

A report that provides information on stability of food prices and continuous supply of food stuffs at affordable prices is submitted for management decision making


1 1 - -

1.11An early warning of potential food security challenges established and functional


1 1 - -


1.1 Some of the goods for this indicator were organised via Programme 1. Poor record keeping and poor or under-reporting were the main causes of under-performance in this indicator.

1.4 Due to additional funding received from DAFF 3,259 hectares more was achieved.1.5 Poor workmanship by mechanisation contractors in some projects resulted in poor land preparation, poor

germination and plant densities. In turn, these factors resulted in reduced yield projections. Other factors contributing to under-performance are:

(a) lack of recording by the farmers of quantities of green mielies that are continuously harvestedforhomeconsumption;

(b) lack of reporting by the extension personnel of quantities of green mielies that are continuously harvested for home consumption.1.6 The procurement of water tanks was processed through special programmes organised via Programme 1.

Therefore, the procurement of 72 water tanks, and their acquisition thereof, was done on the basis of a need arising from Programme 1. Furthermore, the under-performance stems from the emphasis of food security being strengthened within the cropping/ploughing programme which contributed to increased hectares being cropped but under-performance with respect to this indicator.

1.7 The Agri-parks funds have been directed and used for potato production. However, the extension and advisory services were continuously provided to the Agri-parks.

1.8 Theunder-performancestemsfromtheemphasisof foodsecuritybeingstrengthenedwithinthe cropping/ploughing programme which contributed to increased hectares being cropped but under-performance with respecttothisindicator.ThelatearrivalfromtheDRDLRofthesecondtrancheofR38millioninNovember2012resulted in some projects cutting out the Cropping Programme due to the shortening of the cropping season. In turn, this situation led to under-performance.

51




In response to the under-performance that is linked to the various indicators in the above table, this sub-programme has put in place the following responsive strategies:

• Trainingofstaffonaccuratereporting• Strengtheningverificationofreports• Strengtheningthepracticeofrecordkeepinganduseoftheserecordsand• Improvementinmonitoringoftheworkdonebythecontractorswhorendermechanisationservices


None


Asindicatedabove,numeroustargets(e.g.Indicators1.1;1.6&1.8)couldnotbeachievedduetoreallocationoffundstoother functions. The shortfall in reaching targets and the corresponding under-expenditure of R7,294,000 was further caused by the withdrawal of farmers from the programme due to delayed or late arrival of inputs.


2012/2013 2011/2012Sub- Programme: Food

Security R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Total 47,499 40,205 7,294 54,669 49,394 5,275

52



5.3. Programme 4 : Veterinary Services

Objective: To provide veterinary services to clients in order to ensure healthy animals, safe animal products and welfare of people of South Africa.

List of Strategic Objectives

• SO5:Increasehouseholdfoodproductionandfoodsecurity

List of Sub-Programme

• Sub-Programme4.1:AnimalHealth• Sub-Programme4.2:ExportControl• Sub-Programme4.3:VeterinaryPublicHealth• Sub-Programme4.4:VeterinaryLaboratoryServices

Sub-Programme 4.1 : Animal Health

Objective: To facilitate and provide animal disease control services in order to protect the animal and human population against identified infectious, zoonotic and/or economic diseases, through the implementation of the Animal Diseases Act(Act35of1984)andprimaryanimalhealthprogramme/projects.

Animal HealthStrategic Objective: Increase Household Food Production and Food Security



Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


1.1Number of animals vaccinated against controlled animal diseases

2, 042, 443 2,480,920 1,884,595 (596,325)Under-

performance

1.2 Number of primary animal health care (PAHC) interactions held

5,756 4,642 8,870 4,228 Over- performance

1.3Number of official veterinary movement documents issued

1,218 1,085 1,463 378 Over- performance

1.4Number of animals surveyed for diseases

252,685 335,367 230,20 (104,747)Under-

performance

1.5Number of animal inspections for regulatory purposes

1,080,475 409 591 182 Over- performance

1.6Number of sheep treated to control spread of sheep scab and improve wool clip

5,349,273 4, 437,794 4,958283 520,489 Over- performance

1.7

Number of cattle dipped for external parasites control to reduce incident of tick borne disease

7,112,630 20,319,879 3259189 (17,060,690)Under-

performance


1.1 Poor handling facilities have resulted in cattle not being vaccinated, hence the negative deviation. 1.2 More call-outs were made due to the lumpy skin disease outbreaks and tick borne diseases in the Province. 1.3 More movement permits were issued for ostrich consignments going to the abattoir for slaughter due to stringent

control measures as a result of the highly pathogenic Avian Influenza outbreak in the Western Cape.

53



1.4 Under-performance due to short supply of tuberculin in the country for testing of cattle against tuberculosis (TB) and also a decline in Avian Influenza and Newcastle disease surveillance as a result of fewer ostrich farms complying with the new registration requirements.

1.5 Over-performance due to more requests for buffalo movements as a result of high interest in buffalo trade. 1.6 Over-performance due to inoculations in the buffer zones around commercial farms where sheep scab outbreaks

were confirmed. 1.7 Cattle dipping has been reduced in areas that were experiencing cold spells.

Livestock Development



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1

Number of improved livestock introduced for animal genetic improvement of the herd to ensure sustainable food security

29 3,300 761 (2,539)Under

performance

1.2Number of cows/heifers successfully inseminated using artificial insemination


50 34 (16)Under

performance

1.3

Number of artificial insemination workshops facilitated to increase reproductive capacity of livestock by farmers


7 7 - -

1.4Number of personnel capacitated for reproductive biotechnology (embryo transfer)


20 20 - -

1.5Number of ostrich raised to slaughter weight (90-110 kg)


1,960 2,859 899Over-

performance

1.6Number of farmers farming indigenous chickens commercially supported with technical advice


6 6 - -


1.1 Market price for livestock, especially rams and bulls (stud animals), was significantly higher than anticipated and this led to achieving fewer animals bought for the same budget.

1.2 PoorfencingatfoursitesintheChrisHaniregionresultedinthesuspensionof88cowsfromtheartificialinseminationprogram as the bull had jumped the fence and may have impregnated the cows.

1.5 Thetargetof1960wasbasedon58farmersreceiving50chickseachwithamortalityofaround32%fortheentireproject. In this round of operation about 42 farmers received 50 chicks and 16 farmers received 100 chicks based on theirpreviousperformance.Themortalityrateachievedwasintheregionof22%whichiscommendableasitisbelowtheindustrynormof30%,hencethepositivedeviationinthisperformanceindicator.


Strategy will include the following:• Procuretuberculinbeforethesuppliesgetdepletednationwide.• TheDepartmentcontinuestorevampdippingandhandlingfacilitiesacrosstheprovince.• Theclosingdate forapplicationsof superioranimalgeneticmaterialhasbeenchanged inorder toprovideample

time for planning and obtaining procurement approvals as early as possible. External sources for funding livestock development activities have been explored through inviting other stakeholders to participate in the Livestock Development Programme and applying to the job creation fund administered by the Department of Trade and Industry (DTI).

• DiscussionsontheallocationofinfrastructureforLivestockDevelopmentProgrammethroughtheCASPhavebeenstarted and anticipating positive response.

54




None


The decline in Avian Influenza and Newcastle Disease surveillance, as a result of fewer farms registered, resulted in under-expenditure in the Goods and Services budget.


2012/2013 2011/2012

Sub-programme:Animal Health

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Total 207,345 203,860 3,465 193,202 189,419 3,783

Sub-Programme 4.2 : Export Control

Objectives: To provide control measures including risk assessment and health certification, in order to facilitate the exportation of animals and animal products.

Export ControlStrategic Objective: Increase Household Food Production and Food Security



Planned Target

2012/2013

Actual Achievement

2012/2013

Deviation from planned

target to Actual Achievement for

2012/2013


1.1Number of veterinary export certificates issued

9 1,256 603 (653)Under-

Performance

1.2Number of internal and external audits


1.3Number of samples collected for residue monitoring at export establishments

46 60 31 (29)Under-

performance

1.4

Tons of meat exported to promote participation of farmers in export markets (Ostrich and Game)

6529.95? 300 384,79 84,79 Over-performance

1.5Number of export establishments registered for export purposes



1.1 The European Union trade embargo on ostrich and game meat due to Avian Influenza and Foot and Mouth Disease respectively has resulted in severe curtailment of export activities, hence the under-performance.

1.2 An additional audit was carried out as a result of the OIE (Office International des Epizootics / World Organisation for Animal Health) and PVS (Performance of Veterinary Services) visit in October 2012 to assess the status of veterinary service in the country.

1.3 The population of ostriches slaughtered at the export abattoir was not enough to collect sufficient samples per population of slaughtered ostriches due to the export embargo, hence under-performance.

1.4 Over-performance is due to the meat sent to Klein Karoo storage in the Western Cape for export.1.5 The positive deviation is due to re-registration of ostrich export farms as a result of the new Veterinary Procedural

Notice (VPN) 4 which came into being with stringent measures applied to all ostrich farms.

55



Export ControlStrategic Objective: Increase Household Food Production and Food Security



Planned Target

2012/2013

Actual Achievement

2012/2013




1.1

A contingency plan and Standard Operation Procedures document developed and reviewed for rapid response to disease outbreaks

Not part of the plan in 2011//12

1 1 - -

1.2Number of controlled diseases awareness campaigns facilitated

4 4 9 5Over-

performance

1.3

Number of Indigenous Knowledge Systems databases developed to preserve ethno-veterinary heritage


1 - (1)Under-

performance

1.4Number of sessions held to increase visibility of the Department to the communities


6 13 7Over-

performance


1.3 Over performance is due to facilitations done in respect of the Provincial Rabies Awareness Campaign and the World Rabies Day.

1.4 Although under-performed, work towards establishing Indigenous Knowledge System (IKS) databases iscontinuing with available information being consolidated from University of Fort Hare, Rhodes and Oxford Universi-ties.

1.5 Over performance is due to additional exhibitions on requests from the Office of the MEC during visits to“MEC’s Adopted schools”.


The Department of Agriculture, Forestry and Fisheries (DAFF) through Provincial Veterinary Services has embarked on an Avian Influenza and Foot and Mouth Disease surveillance strategy through sampling and testing to prove to the European Union (EU) that the country is now free of these diseases. Once the export embargo is lifted by the EU, then the under- performance on export activities will be addressed.


None


The export embargo on ostrich and game meat has led to under-expenditure on the Goods and Services budget.


2012/2013 2011/2012

Sub-Programme: Export Control

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Total 5,900 5,431 469 6,314 5,458 856

56



Sub-Programme 4.3 : Veterinary Public Health

Objective: To ensure the safety of meat and meat products through the implementation of the Meat Safety Act (Act 40 of 2000),theAnimalDiseasesAct(Act35of1984)andotherrelevantLegislation.

Veterinary Public HealthStrategic Objective: Increase Household Food Production and Food Security



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1Number of abattoirs registered as per Meat Safety Act (Act 40 of 2000)

59 101 68 (33)Under-

performance

1.2Number of abattoir inspections conducted as per Meat Safety Act (Act 40 of 2000)

877 924 823 (101)Under-

performance

1.3Number of facilities processing animal products and by-products inspected

49 131 93 (38)Under-

performance

1.4

Number of interactions and investigations on illegal slaughter to respond to Section 7 of the Meat Safety Act (Act 40 of 2000)



1.1 The reported under-performance is as a result of error in capturing during consolidation of the Quarter 1 report in which the 37 abattoirs registered in that quarter were erroneously left out. Had the figure been incorporated, a positive deviation by four abattoir registrations would have been reflected.

1.6 The negative deviation is due to the fluctuating slaughter patterns in abattoirs as a result of economic conditions. 1.7 There has been a decline in slaughtering and therefore no carcasses for processing, hence the negative deviation.1.8 Astherewasadeclineinslaughteringinabattoirsduetoeconomicconditions,officialshadtoredirecttheirefforts

to policing and ensuring compliance.


The officials will conduct the planned inspections even if an abattoir is not slaughtering. This is to ensure that slaughtering is not taking place and to double their efforts on interactions and investigating illegal slaughter activities, as the decline in slaughtering in abattoirs may pose a public health risk.


None

Linking Performance with Budget Fluctuating slaughter patterns in abattoirs that resulted in under performance by this sub-programme, have resulted in under expenditure on Goods and Services budget.


2012/2013 2011/2012

Veterinary Public Health

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Total 9,470 9,220 250 9,251 8,592 659

57



Sub-Programme 4.4 : Veterinary Laboratory Services

Objective: To render veterinary diagnostic, laboratory and investigative services that will back the control of animal diseases for adherence to hygienic standards and to generate data.

Veterinary Laboratory ServicesStrategic Objective: Increase Household Food Production and Food Security



Planned Target

2012/2013

Actual Achievement

2012/2013


Target to Actual

Achievement for 2012/2013


1.1Number of control audit reports in compliance with ISO 170-25


1.2Number of specimen tested for diagnostic purposes

169,344 136,717 165,478 28,761Over-

performance

1.3Number of tests for diagnostic purposes

230,066 170,541 220,634 50,093Over-

performance


1.1 The positive deviation is due to implementation of corrective actions following the Department of Agriculture, Forestry and Fisheries audit findings.

1.2 There has been an increase in disease surveillance in communal areas especially for Contagious Abortion (CA) and an increased demand for fertility tests resulting in positive deviation.

1.3 There has been an increase in the number of samples submitted to the labs resulting in a corresponding increase in the number of tests performed, hence the positive performance.


None


None


The expenditure is in line with the performance.


2012/2013 2011/2012Sub-Programme:

Veterinary laboratory Services

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Total 12,372 12,198 174 11,817 11,239 578

58



5.4. Programme 5 : Research and Technology Development Services

Objective: To render expert and needs based research, development and technology transfer services impacting on development objectives

List Strategic Objectives

• Strategicobjectives1:ConductResearchandTechnologyDevelopment

List Sub-Programmes

• Sub-Programme5.1:Research• Sub-Programme5.2:TechnologyTransferServices• Sub-Programme5.3:InfrastructureServices

Sub-Programme 5.1 : Research

Objective: To conduct, facilitate and coordinate research and to participate in multi-disciplinary development projects.

Plant and Crop Production Research ServicesStrategic Objective : Conduct Research and Technology Development



Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


1.1

Number of research projects implemented which address specific plant and crop production constraints

35 50 46 (4)Under-

performance

1.2Number of scientific papers published on research done on plant and crop production

3 5 1 (4)Under-

performance

1.3

Number of presentations made at scientific events on research done on plant and crop production

7 5 9 4Over-

performance

1.4

Number of reports generated on research projects responding to “climate-smart agriculture”


1 1 - -

1.5

Number of reports generated on the investigation towards the establishment of gene banks


1 1 - -


1.1 Negative deviation of four projects can be ascribed to one scientist being on study leave. 1.2. Research results were not conclusive due to influence of environmental factors, a repetition of the trials are needed

before publication of results can be done.1.3 More papers and posters were accepted by different agricultural science societies for presentation at congresses than

anticipated and this, coupled with a high demand for seminar presentations, resulted in the over-performance.

59



Animal ResearchStrategic Objective : Conduct Research and Technology Development



Planned Target

2012/2013

Actual Achievement

2012/2013




1.1Number of research projects implemented which address specific production constraints

31 40 36 (4)Under-

performance

1.2Number of scientific papers published on animal research

1 5 - (5)Under-

performance

1.3Number of presentations made at scientific events


7 9 2Over-

performance

1.4

A report on recommendations on indigenous knowledge of farming systems (poultry, piggery and goats) submitted and approved


1 1 - -

1.5Report on freshwater aquaculture projects submitted and approved


1 1 - -


1.1 Negative deviation of four projects can be ascribed to one scientist being on study leave.1.2 Unexpected delays from scientific reviewers. 1.3 Availability of research data and fortunately SASAS congress was held in the Province.

Animal Research - Pasture

Strategic Objective : Conduct Research and Technology Development

Performance Indicator

Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


1.1 Number of research projects implemented which address specific production constraints on veld and pasture

24 27 24 (3)Under-

performance

1.2 Number of scientific papers published on veld and pasture

1 5 0 (5)Under-

performance1.3 Number of presentations

made at scientific events on veld and pasture


6 6 - -

1.4 Number of semi-scientific papers published


12 6 (6)Under-

performance1.5 Report on suitable legumes for

rehabilitating and improving production of abandoned lands


1 1 - -


1.1 Negative deviation of four projects can be ascribed to one scientist on study leave.1.2 Unexpected delays from scientific reviewers. 1.4 The available data from research trials were presented in scientific congress and will be published later.

60



Socio and Economic ResearchStrategic Objective : Conduct Research and Technology Development



Planned Target

2012/2013

Actual Achievement

2012/2013




1.1

Number of reports facilitated for planning and promotion of sustainable rural livelihoods submitted and approved


6 6 - -

1.2Economic status report of the Province for planning purposes submitted and approved

1 1 1 - -

1.3 Number of socio-economic community survey reports on rural development pilot sites submitted and approved

7 6 7 1Over-

performance

1.4Number of development planning models developed and approved

1 2 2 - -

1.5Number of socio economic research conducted and published


4 4 --


1.3Twocommunities(insteadofone)weresurveyedatthesametimeduetotheircloseproximity.

Analytical ServicesStrategic Objective : Conduct Research and Technology Development

Performance Indicator

Actual Achievement

2011/2012

Planned Target

2012/2013

Actual Achievement

2012/2013




1.1

Time taken to analyse soil samples and provisions of results to the clients (three weeks per client)


3 3 - -

1.2

Time taken to analyse plant samples and provisions of results to the client (four week per client)


4 4 - -

1.3

Time taken to analyse feed samples and provision of results to the client (four weeks per client)


4 - (4)Under-

performance

1.4

Time taken to analyse water samples and provision of results to the client (three weeks per client)


3 3 - -

61




1.3ThisademanddrivenPerformanceIndicator,nofeedsamplesweresubmittedbyclientsforanalysis

Appropriate TechnologyStrategic Objective : Conduct Research and Technology Development



Planned Target

2012/2013

Actual Achievement

2012/2013


to Actual Achievement for 2012/2013


1.1Number of socio-economic needs assessments conducted


2 2 - -

1.2Number of training workshops in appropriate technology to empower rural communities


6 6 - -

1.3Number of new types of alternative energy technologies introduced to rural communities


1 1 - -

1.4

Number of households benefiting from new alternative energy technologies introduced to rural communities


30 30 - -

1.5Number of households participating in organic gardening


30 30 - -

1.6Number of improved ventilated double pit sanitation projects


1 1 - -

1.7Number of knowledge management seminars conducted


2 2 - -

1.8Knowledge management and reporting for the Annual Development Conference


1 1 - -


None


Research has reconsidered the setting of targets based on the turnaround time by scientific reviewers.


None


The under-expenditure was caused by vacant posts not filled by the sub-programme and cancellation of an order for fertilizer due to incorrect specifications delivered by the service provider. Over-expenditure of R352 000 on current payments was caused by subsistence and transport (S&T) and overtime claims paid to tractor drivers involved in the ploughing programme of the Department. Under-expenditure of capital payments was caused by invoices which were less than the budgeted amount.

62




2012/2013 2011/2012Sub-

Programme:Research

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Total 75,158 75,430 (272) 78,383 69,306 9,077

Sub-Programme 5.2 : Technology Transfer Services

Objective: To disseminate information on research and technology developed to clients.

Technology Transfer ServicesStrategic Objective : Conduct Research and Technology Development



Planned Target

2012/2013

Actual Achievement

2012/2013




1.1

Number of technologies from crops, animal and pasture developed and adopted by farmers


2011/128 8 -

-

1.2Number of presentations made at technology transfer events

22 32 28 (4)Under-

performance

1.3Number of demonstration trials based on research results conducted with farmers

4 6 6 --

1.4Number of articles on research conducted published in popular media

1 2 - (2)Under-

performance

1.5Number of appropriate technologies successfully adopted by communities


2011/123 3 -

-

1.6

Number of information packs developed and disseminated to farmers and the general public

10 30 34 4Over-

performance


1.2 This performance indicator is demand driven and there were fewer invitations from clients than anticipated.1.4 Researchers prioritised the Occupational Specific Dispensation (OSD) publication requirement rather than the popular media publication.1.9 Information required to address outbreaks (such as African Horse Sickness) necessitated the development

of additional information packs.


The linkage and collaboration between research and technology transfer services and extension and advisory services will be strengthened. Researchers will be encouraged to publish in popular media as a means of ensuring effective technology transfer.


None

63




Under-expenditure was caused by vacant post not filled by the sub-programme.

Sub-Program Expenditure

2012/2013 2011/2012

Technology Development

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Total 3,378 2,866 512 3,162 2,735 427

Sub-Programme 5.3 : Infrastructure Support Services

Objective: To provide and maintain infrastructure facilities for the line function to perform their research and other functions, i.e. experimental farms.

Infrastructure Support ServicesStrategic Objective : Conduct Research and Technology Development



Planned Target

2012/2013

Actual Achievement

2012/2013



1.1

Number of research infrastructure provided to enhance the implementation of research projects

7 7 7 - -

1.2

Number of research infrastructure maintained to enhance the implementation of research projects

7 7 7 - -


None


None


No changes in planned targets.


The under expenditure of R12, 000 was caused by a cancelled order to procure the fertilizer. The supplier failed to supply according to the specifications given.


2012/2013 2011/2012

Infrastructure support services

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Total 703 691 12 1,492 2,016 (524)

64



5.7. Programme 6 : Agricultural Economic Services

Objective: To provide timely and relevant agricultural economic services to the sector in support of sustainable agricultural and agri-business development to increase economic growth

List Strategic Objectives

• StrategicObjective9:Promotefarmandnon-farmruraleconomyentrepreneurshiptocreatejobsanddevelopmentofskills


• Sub-Programme6.1:Agri-businessSupportandDevelopment• Sub-Programme6.2:Macro-economicSupport

Sub-Programme 6.1 : Agri-Business Support and Development

Objective: To provide Agri-business support through entrepreneurial development, marketing services, value adding, production and resource economics.

Agri-Business Support And DevelopmentStrategic Objective :Promote Farm and Non-Farm Rural Economy Entrepreneurship to Create Jobs and Development of Skills



Planned Target

2012/2013

Actual Achievement

2012/2013


to actual for 2012/2013


1.1

Number of applications for agricultural co-operatives and commodity groups established and supported for collective farming processed

186 80% 100% 20%Over-

performance

1.2

Number of applications for partnerships Agriculture Black Economic Empowerment (Agri-BEE) Community Public Private Partnership (CPPP) and Public Private Partnership (PPP) facilitated towards their establishment

19 80% 100% 20%Over-

performance

1.3

Number of loan applications and investments opportunities facilitated to support subsistence and smallholder farmers

60 90% 96% 6%Over-

performance

1.4

Number of existing commercial enterprises (including agro-processing) supported and facilitated

33 12 8 (4)Under-

performance

1.5

Number of Agri-Businesses supported with agricultural economic services towards accessing markets

113 100% 100% - -

1.6Number of clients supported with agricultural economic advice

2059 100% 100% - -

1.7Number of agricultural economic studies conducted

Not part of the plan in 2011/12 100% 99.4% (0.6%)

Under- performance

65




1.1 Awareness and increased interest in forming co-operatives by farmers saw a reduction in the time taken to gothroughtheapplicationsandthusmoreapplicationsweredone(198applicationsreceivedand197concludedinsteadof158i.e.80%).

1.2 Improved collaboration with DAFF in popularising the Agri-BEE fund made it easier to handle applications, especiallythoselinkedtofunding(14applicationsreceivedand14concludedinsteadof11i.e.80%).

1.3Theloanapplications(two)inexcessofthe90%targetwerefast-trackedasaresultoftheimprovedworking relations with the Rural Financial Intermediary (ECRDA) (34 applications received and 33 concluded instead of30i.e.90%).

1.4 Deviation is due to funding constraints. Business plans were submitted to Provincial Treasury and are awaiting approval.

1.10 The request for one economic study was received late and could not be completed by the end of the financial year.


• Improvementinthedeliverysystemwithregardtotheactualregistrationofco-operatives.• RaiseawarenessregardingtheAgri-BEEsectorcharter,score-cardandfunding.• ContinuedcollaborationwithRuralFinancialIntermediariesandawarenessamongfarmersoftheadvantagesofloan

funding for enterprise development. • Strategic intervention with regard to sourcing external funding and strategic partners to revitalise the specific

enterprises.• Toreprioritiseanddeployallavailableresourcestoensurethatacceptedrequestsarecompletedwithinthegiven

time.

Changes To Planned Targets

None


The budget was sufficient with regard to programme performance. However, the bulk of the total under-expenditure of R1,059,000 for the sub-programme was due to the Grahamstown Abattoir still being under construction. The remainder is due to the operational budget for the unfilled vacant posts.


2012/2013 2011/2012Sub-Programme:

Agri-Business Support and

Development

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Total 186,555 185,496 1,059 85,708 84,778 930

66



Sub-Programme 6.2 : Macro-Economic Support

Objective: To provide macro-economic and statistical information on the performance of the agricultural sector in order to inform planning and decision making.

Macro-Economic SupportStrategic Objective: Promote Farm and Non-Farm Rural Economy, Entrepreneurship to Create Jobs and Development of Skills



Planned Target

2012/2013

Actual Achievement

2012/2013




1.1

Number of business plans developed to support agricultural businesses to source funding

253 80% 98.8% 18.8%Over-

performance

1.2

Number of feasibility studies in six districts on market centres for establishment of market centres(TsoloJunction,PSJDairy Market Centre)

1 6 - -6Under-

performance

1.3

Economic databases developed and maintained to enable farmers and stakeholders to make informed decisions

17 80% 100% 20%Over-

performance

1.4Number of macro-economic information requests responded to

152 90% 100% 10%Over-

performance

1.5Number of macro-economic reports developed and disseminated

11 4 4 - -

1.6Number of farmers accessing markets as the result of better market information

290 80% 100% 20%Over-

performance

1.7

Advisories prepared to increased numbers of smallholder farmers for improved food security

7 80% 100% 20%Over-

performance

1.8Number of new enterprise budgets developed for agri-business planning

Not part of the plan in the

2011/1280% 80% - -

1.9Number of enterprise budgets updated for agri-business planning

197 80% 100% 20%Over-

performance


1.1 Improved co-operation among the different disciplines in providing the necessary information for business plan development.

1.2 Changing of sites by local municipalities and challenges related to Environmental Impact Assessment (EIA). 1.3 The Statistics Sub-Unit adopted a commodity groups engagement approach in order to obtain statistical

information more quickly. 1.4 The strengthening of the Statistics Sub-Unit at district level fast-tracked the process of data collection necessary

to compile macro-economic reports. 1.6 The marketing workshops involved all role players in the market (farmers, chemical/fertiliser companies and

buyers) and the dissemination of market information (weekly market prices) played a major role. 1.7 Improved working relations with the Rural Financial Intermediary (ECRDA) in assisting smallholder farmers to

access production loans.

67



1.9 Increase in enterprise budgets update is linked to the increase in the number of business plans developed to support agricultural businesses to source funding, since enterprise budgets are part and parcel of business plan development.


1.1 Promote a sense commitment between all role players (different disciplines) that contribute information towards business plan development.

1.2 Institutionalising stakeholder forums, including local municipalities and other Departments e.g. DEDEAT.

Changes to Planned Targets None


The budget was sufficient with regard to programme performance. However, the bulk of the total under expenditure of R1,246,000 is linked to the operational budget for the unfilled vacant posts. The remainder is due to the Compensation of Employees budget due to unfilled funded posts.


2012/2013 2011/2012Sub-Programme: Macro-economic

Support

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000 Total 21228 19982 1 246 19 397 19 135 262

68



5.8. Programme 7 : Structured Agricultural Education and Training

Objective: To facilitate and provide education and training in line with the Agricultural Education and Training Strategy to all participants in the agricultural sector in order to establish a knowledgeable and competitive sector.

List Sub-Programmes

• Sub-Programme7.1:HigherEducationandTraining• Sub-Programme7.2:FurtherEducationandTraining(FET)

Strategic Objectives

• SO3.Socio-economicEmpowermentofFarmWorkers• SO4.ProvideFarmerSupportServicesandFarmerDevelopment.

Sub-Programme 7.1 : Higher Education and Training

Objective: To provide accredited higher education and training from NQF Levels 5 and above to anybody who desires to study in agriculture and related fields.

Sub-Programme: Higher Education and TrainingStrategic Objective: Provide Farmer Support Services and Farmer Development



Planned Target

2012/2013

Actual Achievement

2012/2013




1.1

Number of students registered for Higher Education and Training(HET) qualifications

370 350 338 (12)Under-

performance

1.2

Number of students completing Higher Education and Training (HET) qualifications

114 100 74 (26)Under-

performance.

1.3

Number of Agricultural Educators re-skilled on Agricultural Science Education

70 70 105 35Over-

performance

Reasons for Deviations

1.1 Institution could not accommodate all the students due to renovation of the hostels.1.2 Some students failed the required courses and therefore did not qualify to enroll for the final semester. 1.3 A demand for the training from educators in the adopted schools increased the initial target.


Renovated hostels are included in an expanded plan for additional rooms and will therefore address the accommodation shortage and thereby enable an increase in intake.


None


The expenditure is in line with the performance.

69




2012/2013 2011/2012Higher Education

and TrainingFinal

Appropriation R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Total 31,806 31,806 - 26,029 26,029 -

Sub-Programme 7.2 : Further Education and Training (FET)

Objective: To provide formal and non-formal training on NQF levels 1–4 through FET structured education and training programmes to all interested agricultural role players.

Further Education and TrainingStrategic Objective: Provide Farmer Support Services and Farmer Development



Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


1.1

Number of learners completing accredited skills programmes to gain qualification based on SAQA standards


2011/1290 89 (1)

Under-performance

1.2

Number of learners completing accredited short courses to gain credits towards recognised qualifications

79 300 125 (175)Under-

performance

1.3

Number of learners completing non-accredited short courses to develop well rounded skilled farmers

3,309 3,500 2,277 (1,223)Under-

performance

1.4

Number of farms/projects mentored on wool, ostrich, milk and red meat enterprises in order to farm profitably

61 46 46 - -

1.5

Number of rural development vocation trainees benefiting in rural community skilling programme to gain skills (mechanical/ electrical/ textile/construction) through SETAs and accredited institutions


2011/12350 350 - -

1.6

Number of military veterans trained in specialised agricultural skills


2011/1250 31 (19)

Under-performance


1.1 One trainee expressed disinterest in the training programme.1.1/1.3 Focus on the accreditation of Tsolo Agriculture and Rural Development Institute (TARDI) under the Higher Education and Training (HET) band led to training being adversely affected. 1.5 Some of the targeted Military Veterans projects targeted were affected by the TARDI focus on HET

Band registration.

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Further Education and TrainingStrategic Objective: Socio-economic Empowerment of Farm Workers



Planned Target

2012/2013

Actual Achievement

2012/2013




1.1

Number of farm workers completing accredited training to gain appropriate skill and obtain credits towards recognised qualification


2011/1245 41 (4)

Under-performance

1.2

Number of farm workers attending non-accredited training to develop skilled farm workers


2011/12120 104 (16)

Under-performance


1.1/1.2 Non co-operation by some farmers in releasing their farm workers to attend training caused a negative impact on the budget allocated for this specific planned target which contributed to the overall under-expenditure of the programme.


The strategy will include the following:• TheDepartmentwillworkwiththeMinistryofDefenceandMilitaryVeterans(D&MV)toensureuseofaccurate

database with regard to training of Military Veterans.• Link ProvincialTrainingProviderswith theNationalTrainingProviderswhohave ahigh success rate in the areaof

training to learn best practices.• CollaborationwillbeformedwithGrootfonteinAgricultureDevelopmentInstitute(GADI)forthetrainingofAfrikaansspeaking

beneficiaries and Training of Farm Workers planned for the lull season as opposed to training during peak season.

Changes of Planned Targets

None


The programme under-spent on its compensation budget due to the non-filling of some of its critical posts that were cut off due to the reprioritisation project embarked upon during the course of the year. Some of the goods and services budget could not be spent due to non-payment of training targets that were not achieved. Due to some farmers’ reluctance to release their farm workers, the programme under-spent on the budget allocated for this particular activity and thus there wasanunderexpenditureof7%ofthebudget.


2012/2013 2011/2012Sub-Programme Name: Further

Education Training

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000Grand Total 72,638 67,795 4,843 86,878 76,224 10,658

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Rural Development

Objective: The Programme seeks to unleash socio-economic development potential of the Eastern Cape by addressing the historical neglect of rural areas, in equitable to basic services, improved coordination and integration of service delivery across government and foster sustainable partnerships.

List the strategic objectives

StrategicObjectives6:Facilitate,coordinateandreportonprovisionofruralinfrastructure



Planned Target

2012/2013

Actual Achievement

2012/2013



2012/2013


1.1 Quarterly information on the provision of information on the provision of improved rural infrastructure services pertaining to agro-logistics: access roads, electricity, schools and clinics compiled and submitted to the Head of Department.


2011/121 1 - -

1.2 An information database established of indigenous knowledge systems to provide information for the sustainable socio-economic and cultural upliftment.


2011/124 3 (1)

Under-performance

1.3 Progress report on the implementation of Rural Development Strategy submitted to the Head of Department for the Economic Development Cluster and Cabinet Committee.


2011/1212 10 (2)

Under- performance

1.4 Report on Outcome 7 submitted to the Head of Department for the National Cluster on Outcome 7.


2011/124 3 (1)

Under-performance

1.5 Report on interventions in the five poorest districts in the Province.


2011/124 4 - -

1.6 Report on implementation of RDA programmes reviewed and submitted to the MEC.


2011/124 4 - -

Reasons for all deviations

1.2 Strategy on indigenous knowledge is in progress but not yet finalised by ECSSEC and ECATU (ECATU which is dealing with indigenous knowledge).

1.3 Progress reports were not submitted for a period of two months because of lack of information from other departments in the rural development space.

1.4. The National Department of Rural Development and Land Reform did not provide the reporting template for all departments in the 1 first quarter.

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Strategy To Overcome Areas Of Under Performance

Thestrategywillincludethefollowing;• Total transfer of the Department of Social Development database to the departmental systems and continued

maintenance of system by the Department will ensure data is always available.

• Interventionwill be sought from theDirectorGeneral of the Province and at the Provincial Coordinating Forum -convened by the Premier- for sector departments to present required reports timeously so that a full National Outcome 7 report can be presented.

• TheDepartmentofLocalGovernmentandTraditionalAffairshasbeenengagedtoassistinthepresentationofrequiredreports from local and district municipalities timeously so that a full National Outcome 7 report can be presented.

Changes to planned targets

None.

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6 SUMMARY OF FINANCIAL INFORMATION

6.1. Departmental receipts

2012/2013 2011/2012

Departmental receipts EstimateActual

Amount Collected

(Over)/Under Collection

EstimateActual

Amount Collected

(Over)/Under Collection

R’000 R’000 R’000 R’000 R’000 R’000Tax receipts - - - - - -Casino taxes - - - - - -Horse racing taxes - - - - - -Liquor licences - - - - - -Motor vehicle licences - - - - - -Sale of goods and services other than capital assets

6 003 2896 3 107 4 945 2 765 2180

Transfers received 0 83355 (83355) - - -Fines, penalties and forfeitsInterest, dividends and rent on land 27 2 25 10 2 8Sale of capital assets 32 2 104 (2072) 61 1 765 (1 704)Financial transactions in assets and liabilities

903 1830 (927) 2418 5 267 (2849)

Total 6 965 90 187 (83 222) 7 443 9 799 (2 356)

6.2. Programme Expenditure

Programme Description

2012/13

R’000

2011/12

R’000Final

AppropriationActual

ExpenditureVariance

Final Appropriation

Actual Expenditure

Variance

Administration 433,935 419,734 14,201 440,139 439,783 356

Sustainable resource management

157,518 141,473 16,045 132,786 124,450 8,336

Farmer support and development

462,647 442,797 19,850 438,418 425,269 13,149

Veterinary services 235,087 230,709 4,378 220,584 214,708 5,876

Technology research and development

79,239 78,987 252 83,037 74,057 8,980

Agricultural economics 207,783 205,478 2,305 105,105 103,913 1,192

Structured agricultural training

104,444 99,601 4,843 112,907 102,253 10,654

TOTALS 1,680,653 1,619,174 61,479 1,532,976 1,484,433 48,543

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6.3. Transfer payments, excluding public entities

The table below reflects the transfer payments made for the period 1 April 2012 to 31 March 2013

Name of transfereePurpose for which the

funds were used

Compliance with s 38 (1) (j) of the

PFMA

Amount transferred

(R’000)

Amount spent by the entity

Reasons for the funds unspent by

the entity

Fort Cox College Payment of staff salaries Yes 31,806 31,806 None

The table below reflects the transfer payments which were budgeted for in the period 1 April 2012 to 31 March 2013, but no transfer payments were made. Not Applicable

Name of transfereePurpose for which the funds were to be used

Amount budgeted for

(R’000)

Amount transferred

(R’000)

Reasons why funds were not transferred

N/A N/A N/A N/A N/A

6.4. Public Entities

Name of public entity

Services rendered by the public entity

Amount transferred to the public entity

R’000

Amount spent by the public entity

R’000

Achievements of the public entity

ECRDA Project implementation and credit provision

114,300 Draft AFS of ECRDA indicatesR162,821

Issued loans

Funded agricultural •enterprises

Conducted with due •diligence

Ploughing programme •of an additional R76 m implemented on behalf of the Department

ECATU Basic and applied •research

Innovation and •knowledge management

Project management•

Marketing of •innovative and tested technologies

Enterprise •development and capacity building for co-operatives

Creating and •building strategic partners

14,757 Draft AFS of ECATU indicates R15,474

• 4000 soil – cement brick technology bricks were produced for the Nyandeni Pre – School project.

• Thulasizwe Pre-School and Bubeleni Pre-School were formally handed over to the communities of Lukhunji Village A/A Ward 2 and Mthombe Village A/A respectively.

• Forty six jobs were created through soil cement brick project at Sibangweni (23) and Mzonyana (23).

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6.5. Conditional grants and earmarked funds paid

Conditional Grant Comprehensive Agricultural Support Grant:

Department who transferred the grant Department of Agriculture Forestry and FisheriesPurpose of the grant To expand the provision of agricultural support services, promote and

facilitate agricultural development by targeting smallholder and previously disadvantaged farmers thereby contributing to the Zero Hunger Strategy.

Expected outputs of the grant Improved quality of CASP services.

Broadened access to agricultural support for subsistence, smallholder and previously disadvantaged commercial farmers.

On and off-farm infrastructure provided (110 projects)

Improved knowledge, skill and information on farming of CASP beneficiaries.

Identified markets for beneficiaries of CASP (local, international and government departments).

Improved and effective extension and advisory services including mentorship for farmers.

Actual outputs achieved Number of subsistence, smallholder and commercial farmers supported through CASP was 2,520.

NumberofyouthandwomenfarmerssupportedthroughCASPwas1,382.

Number of on and off-farm infrastructure projects completed was 104.

Number of beneficiaries of CASP trained on farming methods was 2,277.

Number of beneficiaries of CASP with markets identified was 2,520.

Numberofjobscreatedwas788.

Number of extension personnel recruited and maintained in the system was 157.

Number of extension officers upgrading qualifications in various institutionswas282.

One successful partnership was created to support farmers (Ncera Macadamia Farming).

Amount per amended DORA (R’000) R 196 242 Amount received (R’000) R 176 631Reasons if amount as per DORA was not received N/AAmount spent by the Department (R’000) R 176 631Reasons for the funds unspent by the entity Reasons for under spending arose from :

Late changes to project budget loading that exacerbated the extended procurement processes which in turn delayed onset of construction and contributed to some projects not being completed by end March 2013.

Delayed onset of construction demanded challenging construction time lines that exposed cash flow constraints and the capacity of some developing contractors. The outcome of which was that some projects were not completed on schedule by end March 2013.

Monitoring mechanism by the receiving department Monthly and quarterly monitoring in terms of standardised reporting.

Regular oversight visits by Head office staff to district and local management and site visits to assist in addressing constraints and bottlenecks in the project implementation process.

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6.6. Conditional grants and earmarked funds received

Expanded Public Works Programme Grant:

Department who transferred the grant Department of Public Works

Purpose of the grant

To incentivise provincial departments to expand work creation efforts through the use of labour intensive delivery methods in the following identified focus areas, in compliance with the EPWP guidelines:

- road maintenance and the maintenance of buildings

- low traffic volume roads and rural roads

- other economic and social infrastructure

- tourism and cultural industries

- sustainable land based livelihoods

Expected outputs of the grant

Improved quality of life of poor people and increased social stability through engaging the previously unemployed in paid and productive activities.

Reduced levels of poverty.

Contribute towards increased levels of employment.

Improved opportunities for sustainable work through experience and learning gained.

Actual outputs achieved

The number of people employed and receiving income through the EPWP was 1419.

Increased average duration of the work opportunities created.

Increased income per EPWP beneficiary.Amount per amended DORA (R’000) R 4,000Amount received (R’000) R 4,000Reasons if amount as per DORA was not received

N/A

Amount spent by the Department (R’000) R 4,000Reasons for the funds unspent by the entity N/AMonitoring mechanism by the receiving department

Monthly and quarterly monitoring in terms of standardised reporting.

Ilima / Letsema Conditional Grant:

Department who transferred the grant Department of Agriculture, Forestry and FisheriesPurpose of the grant To assist vulnerable South African farming communities achieve an increase in

agricultural production and increased income, invest in infrastructure that unlocks agricultural production and supply government markets with agricultural products thus releasing them from the poverty trap.

Expected outputs of the grant Increased production efficiency.

Increased agricultural production at both household and national level Improved farm income.

Maximised job opportunities and reduced poverty.

Increased number of households assisted to cope with the escalating food prices.Actual outputs Number of hectares (ha) planted 7,025.•

Number of tons produced within the agricultural development corridors is 640.•

Numberofbeneficiaries/entrepreneurssupportedbythegrantis4,518.•

Number of newly established infrastructures/plants through the grant 72.•Amount per amended DORA (R’000) R43,980Amount received (R’000) R 37,903Reasons if amount as per DORA was not received

N/A

Amount spent by the Department (R’000) R 37,903

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Department who transferred the grant Department of Agriculture, Forestry and FisheriesReasons for the funds unspent by the entity Unspent funds stem from some projects starting late in the season due to a delayed

finalisation of the implementation procedure to be followed. This meant that some work could not be completed by end March 2013.

Monitoring mechanism by the receiving department

Monthly and quarterly monitoring in terms of standardised reporting.

Conditional Grant Landcare

Department who transferred the grant Department of Agriculture Forestry and FisheriesPurpose of the grant To enhance the sustainable use of natural agricultural resources through a

community base participatory approach.Expected outputs of the grant Atotalof18awarenesscampaignsconductedonLandCare

A total of 24 capacity building exercises conducted within approved LandCare projects.

A total of 6,560 farm land hectares improved through conservation measures.

A total of 9,494 of beneficiaries adopting sustainable production.

A total of 194 of fences erected on arable and grazing lands for livestock management.

A total of 1,270 of green jobs created through LandCare (EPWP).Actual outputs achieved A total of 22 awareness campaigns conducted on LandCare.

A total of 23 capacity building exercises conducted within approved LandCare projects.

Atotalof3,387farmlandhectaresimprovedthroughconservationmeasures.

Atotalof7,849ofbeneficiariesadoptingsustainableproduction.

A total of 113 of fences erected on arable and grazing lands for livestock management.

Atotalof1,826ofgreenjobscreatedthroughLandCare(EPWP).Amount per amended DORA R16,823Amount received (R’000) R15,216Reasons if amount as per DORA was not received Expenditure was lagging behind schedule.Amount spent by the Department (R’000) R15,216Reasons for the funds unspent by the entity N/AMonitoring mechanism by the receiving department

Regular project visits and evaluation of performance against budget.

Conditional Grant Disaster Risk Management

Department who transferred the grant Department of Agriculture Forestry and FisheriesPurpose of the grant To provide disaster relief to support with the rehabilitation of infrastructure and

production inputs to mitigate the impact caused by natural disasters using funds allocated for specific incidents of disaster.

Expected outputs of the grant Compilation of advisory reports and forecasts that are disseminated to farmers and communities is 12.

Number of disaster relief schemes managed for assistance to disaster stricken farmers is 4.

Numberofdisasterawarenessofalladverseweatherconditionsis18.

Number of agricultural condition reports as compiled and submitted to DAFF for incorporation into National Advisory Board is 12.

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Department who transferred the grant Department of Agriculture Forestry and FisheriesActual outputs achieved Compilation of advisory reports and forecast that are disseminated to farmers and

communities is 12.

Number of disaster relief schemes managed for assistance to disaster stricken farmers is 5.

Number of disaster awareness of all adverse weather conditions is 7.

Number of agricultural condition reports as compiled and submitted to DAFF for incorporation into national advisory Board is 9.

Amount per amended DORA R 2,010Amount received (R’000) R 0,00Reasons if amount as per DORA was not received

-

Amount spent by the Department (R’000) R 0,00Reasons for the funds unspent by the entity Late capturing of the one invoice that led to non-payment.Monitoring mechanism by the receiving department

Inspections conducted from Head Office in various districts.

6.7 Donor Funds

None.

6.8 Capital Investment, Maintenance and Asset Management Plan

The infrastructure projects for the 2013/14 year include the on-farm infrastructure development for beneficiary farmers and development and improvements of agricultural college infrastructure. During 2012/13, 4 513 smallholder farmers received assistance relating to infrastructure development. This included the completion of seven dip tank renovations,12 new dip tanks, 33 fencing projects, 6 irrigation developments, 10 stock water supply systems, 14 poultry and piggery production facilities, 6 livestock handling facilities, one abattoir structure, one vegetable packing facility, and three climate control structures for hydroponic production. These assets are recorded as assets of the Department only during the construction phase and are handed over to the farmer beneficiaries on their completion.

In terms of agreements signed with each of the beneficiaries who receive the immoveable assets as a grant from the Department, the beneficiaries are responsible for the maintenance of these assets. The Department advises the beneficiaries on the requirements of maintenance of their infrastructure.

Re-programme for the upgrading of the agricultural colleges carried out through the Department of Roads and Public Works is an on-going programme involving upgrading of administration and academic facilities, hostel accommodation and student practical training facilities.

2012/2013 2011/2012

Infrastructure projects Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final Appropriation

R’000

Actual Expenditure

R’000


R’000 New and replacement assets 89895 73 034 16861 73 326 69846 3480

Existing infrastructure assets 19 290 15 113 4 177 38303 33 311 4 992

Upgrades and additions 14 073 12 047 2 026 26 494 22 935 3 559

Rehabilitation, renovations and refurbishmentsMaintenance and repairs 5 217 3 066 2 151 11809 10 376 1 433

Infrastructure transfer 28282 28283 (1) - - -

Current 28282 28283 (1) - - -

Capital - - - - - -

Total 137 467 116 430 21 037 111 629 103 157 8472

79



PART CGoVernanCe

80



Part C: Governance1. INTRODUCTION

The Department established several governance structures to ensure that it maintains the highest standards of governance. A Risk Management Committee (RMC) was appointed by the Accounting Officer to provide oversight over risk management. The Committee consists of members of senior management and is chaired by the Accounting Officer.

The Department has an Internal Control Unit which pre-audits all expenditure of the Department and ensures compliance with the relevant Treasury Regulations and Supply Chain Management principles amongst others.

2. RISK MANAGEMENT

Nature of risk management

The Department applied prudent risk management to underpin the achievement of government objectives. The Department applies enterprise risk management which takes into consideration risks of the entire department. Risk managementisintegratedintoexistingdecision-makingstructures;takingthefollowingfactorsintoconsideration:• Riskmanagementisastandingagendaitematmanagementmeetings.• Risk management is included in the performance agreements of senior management and managers to ensure

accountability of risks.• Riskmanagementstrategiestoidentifyrisksandmanagetherisks.

The Department conducted risk assessment workshops for the three branches, viz. Administration and CFO Branch, Agriculture Development Branch and Rural Development Branch where risks were identified and assessed. Both strategic and operational risks were identified for the Department. Risk management has been put as a standing item on the agenda of top management as part of monitoring the implementation of risk management. The Department has a Risk Management Committee which meets on a quarterly basis to play oversight over risk management in the Department. The Department identified both strategic and operational risks. Due to lack of capacity the Department has not yet embarked on a comprehensive risk management for project management. However risks are identified for all areas of operation across the Department. These include risks in financial management, human resources, information, communication and technology, projects, etc.

Progress made in addressing risks identified

The Department has developed a risk register which incorporates the entire risk population for the Department. Risk management has been included in the performance agreements of senior management to ensure that management takes ownership of the risks in their areas of operation. The Department also appointed a Risk Management Committee in addition to top management to provide oversight over the implementation of risk management. The Chairperson of the Risk Management Committee was the Accounting Officer.

3. FRAUD AND CORRUPTION

The department’s fraud prevention plan and the progress made in implementing the fraud prevention plan

The Department does not have an Anti-Corruption Unit in place; although the Department has an approved FraudPrevention Plan/Policy which is a step taken towards the establishment of an Anti-Corruption Unit in the Department. Presently, the official who is appointed as the Investigating Officer to deal with both the hotline/departmental cases is a Senior Manager: Internal Control Unit. Hence there is a dire need for the Department to urgently establish this unit and therefore the Accounting Officer is taking high attention and alert to zero-tolerance on fraud & corruption in the Department and the Department is intending to establish the Anti-Corruption Unit during the coming financial year.

81



• Mechanismsareinplacetoreportfraudandcorruptionandhowtheseoperate.eg:whistleblowing–Theneedforofficials to make confidential disclosure about suspect fraud and corruption.

• Although,theDepartmentdoesnothaveanAnti-CorruptionUnitinplace,theOfficeofPremier(OTP)isassistingthe Department in informing all registered hotline cases with them related to this Department timeously. The official appointed to attend both departmental and hotline cases are investigating effectively and reporting to the Accounting Officer and to the Anti-Corruption Unit at OTP regularly and actions are taken against the officials who are corrupt and charged accordingly.

Status report on investigations on department/hotline cases

Number of cases reported since 2005 to date is 24.Type Number

Hot line cases from Office of Premier 14Departmental cases on investigation 10

Nature of offences as per the total number cases reportedNature of Cases Number

Fraud and Corruption 13Forged signature 2Tender irregularities 2Nepotism 2Payroll fraud 1Procurement fraud 2Travel claims 2

Status of casesType Status Number

Crime Prevention Unit investigation Crime Prevention Unit is in the process of finalisation 5Special Investigation Unit Special Investigation Unit is in the process of finalisation 1Insufficient information provided from OTP on hotline cases to be investigated

Reported to OTP and awaiting for response 3

Closed files Closed 6Pending cases still need to be finalised and closed Investigation still in process 5Recommended cases for finalisation to the Accounting Officer

Action taken (Suspension) 1 (2013)Action in process for suspension 1 (2013)Reported on progress (nepotism) 1 (2011-12)Reported on progress for action –Land Claims (Department of Land Affairs is investigating this matter)

1 (2012)

Pending cases still not finalisedType Year Number

Fraud and corruption investigating by the Department, Crime Prevention Unit and Special Investigation Unit

2005 1

2006 2

2007 12008 32010 12011 32012 12013 1

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Challenges Faced Regarding The Cases Reported (Hotline / Department)

TheDepartmentdoesnothaveananti-corruptionunitinplace;althoughtheDepartmenthasanapprovedFraudPreventionPlan/Policy which is a step taken towards the establishment of Anti-Corruption Unit in the Department. Presently, the official who is appointed as the Investigating Officer to deal with both the hotline/departmental cases is a Senior Manager: Internal Control Unit. Hence there is a dire need for the Department to urgently establish this unit and therefore the Accounting Officer has a zero-tolerance to fraud and corruption in the Department.

4. MINIMISING CONFLICT OF INTEREST

In order to reduce conflict of interest, all employees signed declaration of interest forms to disclose their business interest with the Department.

5. CODE OF CONDUCT

The Department uses the public service code of conduct effectively to promote harmonious relationship between management and employees. A disciplinary code is employed for any violation of the code of conduct and as a result the Department has reduced the number of cases on related code violation.

6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES

Inspections conducted by the departmental safety officer and health and safety representatives revealed that the Department is not complying with the Occupational Health and Safety Act which poses a risk to the health of employees and clients of the Department. The Department of Labour closed down the offices in Ngqamakhwe due to non-compliance and a plan to refurbish the offices was submitted to them. Subsequent to that a Risk assessment exercise sampling a few offices, institutions and laboratories was conducted in order to understand the depth of the OHS issues and develop a plan thereof. A procedure manual detailing all the issues that were highlighted by the OHS risk assessment report and how the Department should attend them was developed and approved by the Accounting officer.

7. INTERNAL CONTROL UNIT

Due to the complexity and adversity of a Chief Financial Officer’s financial responsibilities, she has to rely on sound internal control measures to ensure that state funds are spent in a manner in which they were budgeted for in the delivery of services to the public. Almost all decisions have financial implications and is therefore of paramount importance that sound internal control measures are observed and enforced.

The afore going is also a requirement of Chapter 2 of the Treasury Regulations whereby the Chief Financial Officer is required to ensure that internal controls are in place and are enforced. The Chief Financial Officer, who is required to assist the Accounting Officer in discharging the duties under Part 2 of Chapter 5 of the PFMA Act, 1999,(Act 1 of 1999) shall do so knowing that there is a component or division, such as the Internal Control Unit, within the Financial Management Sub-Programme that enforces compliance with all relevant government prescripts.

Internal Control Unit offers strategic risk management, BAS Financial System controls and management and on fraud prevention/anti-corruption support to all programme managers, line function senior managers and regional senior managers so as to ensure that their operations are based on decisions that are within the laws and regulations of the public service. The senior manager appointed as head of this component also initiates investigations on reported alleged misdemeanours or suspended irregularities, an area that, in most cases requires interaction with the SAPS and a few to Special Investigation Unit(SIU).

This component also monitors expenditure trends vis-à-vis the allocated budget so as to ensure that voted funds are expended optimally through compliance with all relevant Government prescripts.

Lastly, this component also makes follow-ups on audit findings to ensure that audit recommendations are implemented.

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8. AUDIT COMMITTEE REPORT

Report of the Audit Committee

We are pleased to present our report for the financial year ended 31 March 2013.

Audit Committee Members and Attendance

In terms of the Audit Committee Charter, the Audit Committee must meet at least four times per year. The details of the members and the meetings held during the 2012/13 financial year are reflected in the table below.

Name of members Number of meetings attended

C. Sparg (Chairperson) 5 of 5

G. Diutlwileng 5 of 5

G. Mayende 3 of 5

L. Steele 5 of 5

During the financial year under review, a separate closed meeting was held with the Auditor General and a report on matters considered significant from the Audit Committee perspective was submitted to the Member of Executive Council.

Audit Committee Responsibility

The Audit Committee adopted an Audit Committee Charter for the financial year under review. The Audit Committee complied with the Charter and with the requirements of the Public Finance Management Act (PFMA) and the Treasury Regulations for the 2012/13 financial year.

The Effectiveness of Internal Control

The review of the effectiveness of the system of internal controls by the Audit Committee is informed by reports submitted by external audit, internal audit and management. This included a review of in year management reports submitted in terms of the PFMA and Division of Revenue Act. The development and maintenance of an effective internal control system is the responsibility of management.

The Audit Committee has drawn the attention of management to significant issues that have been raised in the previous year audit report and management report of the Auditor General. The Audit Committee has also raised matters that were identified in the reports of internal audit in the current financial year and items that emerged during the meetings of the Audit Committee with management. Certain significant matters that were brought to the attention of management for urgent attention were:• Capacitymattersandthefillingofcertaincriticalposts.• Repeatauditqualificationfindings(forthe2011/12financialyear)bytheAuditorGeneralforcommitmentsandlease

commitments.• Poorqualityofexpenditureprojectionsaspertheinyearmanagementreports.• Underspendingonconditionalgrants.

Management have expressed their commitment in dealing with these issues.

The Committee is satisfied that a system of internal controls has been put in place by the Department and that these controls have functioned partially during the period under review. The Audit Committee and the Department is aware that there is a need for improvement in the internal controls and the adherence to these controls, the Audit Committee is committed to assisting the Department in this regard.

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Evaluation of Annual Financial Statements

The Audit Committee has reviewed the interim financial statements prepared by the Department during the year. The Audit Committee has also reviewed and discussed the audited financial statements for the 2012/13 financial year with the Auditor-General and with the management of the Department. This process included a review of the following matters:• TheAuditor-General’smanagementreportandmanagement’sresponsesthereto.• Theaccountingpoliciesandpractices,andanychangesthereto.• TheDepartment’scompliancewithlegalandregulatoryprovisions.• Informationonpredeterminedobjectives.• Significantadjustmentsarisingfromtheaudit.

The Audit Committee concurs with the Auditor-Generals conclusions on the annual financial statements for the 2012/13 financial year and the Committee confirms that there are no unresolved issues arising from the audit.

Internal Audit and Risk Management

The Committee considered and approved the internal audit charter as well as a risk based three year rolling plan and the annual audit plan for the 2012/13 financial year.

A risk management strategy and a fraud prevention plan were considered and approved for the financial year under review.

The Committee is concerned about capacity challenges in internal audit, risk management, anti-fraud and anti-corruption. These concerns have been communicated to management and it has been recommended that every effort is made to strengthen the capacity in these critical areas. Management has expressed their commitment to this process and some progress has been made with the appointment of a Chief Audit Executive (CAE) who was appointed at the beginning of the 2012/13 financial year.

In spite of the concerns in respect of capacity, the internal audit unit adhered to the annual audit plan for the year under review.

Corporate Governance

We are of the opinion that the Department continues to strive towards complying with sound principles of corporate governance as per the PFMA and King 3 recommendations on corporate governance. As per our discussions with management, they confirm that the content and quality of monthly and quarterly reports prepared and issued by the Head of Department during the year under review were properly formulated and have complied with the PFMA and other applicable legislation in this regard. Recommendations to improve and strengthen governance processes were made through the Audit Committee processes as considered appropriate.

Appreciation

The Committee would like to take this opportunity of expressing its sincere appreciation to the Member of Executive Council, Head of Department, the management of the Department, Internal Audit and the AGSA for their support and co-operation during the year under review.

...................................................................................Chairperson of the Audit CommitteeDate: 31/07/2013

85



PART DHUman reSoUrCe manaGement

86



Part D: Human Resource Management1. LEGISLATION THAT GOVERNS HR MANAGEMENT

TheinformationprovidedinthispartisprescribedbythePublicServiceRegulations(Chapter1,PartIIIJ.3andJ.4).

The following legislation guides the governing of HR Management in the Department: • PublicServiceAct1994,asamended• LabourRelationsAct(Act66of1995Updated2007)• BasicConditionsofEmploymentAct(Act75of1997updated2008)• EmploymentEquityAct(Act55of1998)• SkillsDevelopmentAct(Act97of1998)• SkillsDevelopmentLeviesAct((Act9of1999)• OccupationalHealthandSafetyActandRegulations(Act85of1993Updated2000)

2. INTRODUCTION

2.1 Overview of HR matters in the Department

There has been a significant improvement with regard to HR compliance, to the extent that no matters of qualification or emphasis were raised by the Auditor General during the previous audit. There has also been a significant improvement in terms of customer perspective stemming from the “Assessment: Ability of the Departmental Human Resource Component to strategically assist in the achievement of service delivery goals,” as prescribed in the Public Service Regulations 2001, as amended. The assessment resultshaveimprovedfrom64%forthe2011/12financialyearto74%forthe2012/13financialyear.

2.2 Set HR priorities for the year under review and the impact of these priorities

The review of the HR Delegations could not materialize in view of the current restructuring and alignment of Rural Development Strategy.

2.3 Challenges faced by the Department

HR is challenged with skills capacity constraints at a strategic level which makes it difficult for the unit to shift from a mere administrative role to a strategic human capital management role. The majority of HR practitioners are not suitably qualified, equipped and ready for this role. Processes are underway for closing this gap. A number of interventions were undertaken to improve leave management. The main challenge in this regard relates to the late submission and subsequent processing of leave on PERSAL. One of the interventions taken is to decentralise the capturing of leave from district to municipal / satellite level. The project will be rolled out during the 2013/14 financial year.

Due to an ineffective and prolonged recruitment and selection process, a need has been identified to re-engineer recruitment and selection business processes. The six month time-frame for the filling of posts after becoming vacant, including the four month timeframe for the finalization of appointments after the issuing of an advertisement, have not been met.

Future HR plans / goals• ReviewandimplementationoftheHRPlan.• EnsuringcredibleemployeerecordsandreliablePersalinformation.• ImprovedeffectivenessandefficienciesofHRperformanceintermsofkeyHRMfunctions.• ImprovedaccountabilityforHRDperformanceoutcomes.• ImprovedcapabilityoftheHRworkforce.

87



3. HUMAN RESOURCE OVERSIGHT STATISTICS

3.1. Personnel related expenditure

The following tables summarise the final audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following:• Amountspentonpersonnelbyprogramme.• Amountspentonpersonnelbysalaryband.• Amountspentonsalaries,overtime,homeowner’sallowancesandmedicalaid.

Table 3.1.1 Personnel expenditure by programme

ProgrammeTotal

Expenditure (R’000)

Personnel Expenditure

(R’000)

Training Expenditure

(R’000)

Professional and Special Services

Expenditure (R’000)

Personnel Expenditure

as a % of total

expenditure

Average personnel cost per employee

(R’000)

Programme 1 418,049 251,710 0 0 60.2 80Programme 2 141,473 80,270 0 0 56.7 26Programme 3 442,797 25,477 0 0 58 82

Programme 4 230,709 199,877 0 0 86.6 60Programme 5 78,987 68,514 0 0 86.7 22Programme 6 205,478 18,344 0 0 8.9 6Programme 7 99,609 42,074 0 0 42.2 13TOTAL 1,617,094 905,688 0 0 56.0 288

Table 3.1.2 Personnel costs by salary band

Salary bandPersonnel Expenditure

(R’000)% of total

personnel costNo. of employees

Average personnel cost per employee

(R’000)Lower skilled (Levels 1-2) 35 ,667 3.6 303 117 ,713

Skilled (level 3-5) 99,728 10.1 677 147 ,309

Highlyskilledproduction(levels6-8) 382,106 38.61 329 287,514

Highly skilled supervision (levels 9-12) 337,328 34.1751 449 ,172

Senior and top management (levels 13-16)

37,508 3.845 833,511

Contract (Levels 3-5) 912 0.1 5 182,400

Contract(Levels6-8)4 ,611 0.5 22 209 ,591

Contract (Levels 9-12) 10,083 1 18 560 ,167

Contract (Levels 13-16) 4 ,237 0.4 2 2118500

Abnormal appointment 6 ,132 0.6 190 32 274

Total 918 ,312 92.8 3342 274 779

88



Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme

Programme

Salaries Overtime Home Owners

Allowance Medical Aid

Amount (R’000

Salaries as a % of

personnel costs

Amount (R’000)

Overtime as a % of

personnel costs

Amount (R’000)

HOA as a % of

personnel costs

Amount (R’000)

Medical aid as a % of

personnel costs

Programme 1 181,526 67.8 931 0.3 9 ,956 3.7 13 ,121 4.9Programme 2 58,439 65.1 2 0 2 ,544 2.8 3 ,570 4Programme 3 184,524 63.9 28 0 8,356 2.9 12 ,003 4.2Programme 4 137 ,020 66.9 433 0.2 6 ,907 3.4 9 ,197 4.5Programme 5 46 ,732 64.2 1,874 2.6 4 ,101 5.6 4,382 6Programme 6 13 ,449 67.7 0 0 513 2.6 704 3.5Programme 7 28,852 64.2 726 1.6 2 ,131 4.7 2 ,603 5.8TOTAL 650 ,542 65.7 3 ,994 0.4 34 ,508 3.5 45 ,580 4.6

Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band

Salary Bands

Salaries OvertimeHome Owners

AllowanceMedical Aid

Amount (R’000

Salaries as a % of personnel

costs

Amount (R’000)

Overtime as a % of

personnel costs

Amount (R’000)

HOA as a % of

personnel costs

Amount (R’000)

Medical aid as a % of

personnel costs

Skilled (level 1-2) 22 ,273 61.9 1 ,077 3 3 ,190 8.9 3 ,727 10.4Skilled (level 3-5) 67 ,033 66.1 1 ,575 1.6 7 ,109 7 7 ,753 7.6Highly skilled production (levels 6-8)

267,868 66.5 1 ,066 0.3 14 ,211 3.5 21 ,199 5.3

Highly skilled supervision (levels 9-12

246 ,036 65.2 263 0.1 7,846 2.1 12 ,094 3.2

Senior management (level 13-16)

29 ,367 68.4 0 0 1 ,797 4.2 664 1.5

Total 650 ,543 65.8 3 ,994 0.4 34 ,508 3.5 45 ,580 4.6

3.2. Employment and vacancies

The tables in this section summarise the position with regard to employment and vacancies.

The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment.

This information is presented in terms of three key variables:- Programme- Salary band- Critical occupations

Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate re-flects the percentage of posts that are not filled.

89



Table 3.2.1 Employment and vacancies by programme

ProgrammeNumber of funded posts on approved

establishment

Number of posts filled

Vacancy RateNumber of employees

additional to the establishment

Programme 1 953 860 9.8 0

Programme 2 285 249 12.6 5Programme 3 859 793 7.7 1Programme 4 770 681 11.6 0Programme 5 336 328 2.4 0Programme 6 54 43 20.4 0Programme 7 215 198 7.9 0TOTAL 3 472 3 152 9.2% 6

Table 3.2.2 Employment and vacancies by salary band

Salary bandNumber of posts on

approved establishmentNumber of posts

filledVacancy Rate

Number of employees additional to the

establishmentLower skilled (1-2) 339 304 10.3 0Skilled (3-5) 766 677 11.6 2Highly skilled production

(6-8)

1 459 1 330 8.8 3

Highly skilled supervision (9-12) 803 751 6.5 1Senior management

(13-16)

60 45 6.5 0

Contract (3-5) 5 5 0 0Contract(6-8) 22 22 0 0Contract (9-12) 18 18 0 0Total 3 472 3 152 9.2% 6

Table 3.2.3 Employment and vacancies by critical occupations

Critical occupationNumber of posts

on approved establishment


Vacancy Rate


establishmentAdministrative related 137 123 10.2 0Agriculture animal oceanography forestry & other scientists

62 57 8.1 0

Agriculture related 231 205 11.3 0All artisans in the building metal machinery 15 2 86.7 0Auxiliary and related workers 14 13 7.1 0Biochemistry Pharmacology, Zoology & life science technicians

431 357 17.2 0

Building and other property caretakers 25 21 16 0Bus and heavy vehicle drivers, permanent 24 23 4.2 1Cartographic surveying and related technicians 22 20 9.1 1Chemists 1 0 100 0Civil engineering technicians 4 3 25 0Cleaners in offices workshops hospitals etc. 135 127 5.9 0Client inform clerks 16 16 0 0Communication and information related 5 5 0 0Conservation labourers 39 39 0 0Economists 37 29 21.6 0Engineering sciences related 7 7 0 0Engineers and related professionals 2 1 50 0

90



Critical occupationNumber of posts



Vacancy Rate


establishmentFarm hands and labourers 306 289 5.6 0Farming, forestry advisors and farm managers 8 8 0 0Finance and economics related 18 17 5.6 0Financial and related professionals 82 76 7.3 0Financial clerks and credit controllers 92 84 8.7 0Food services aids and waiters 20 13 35 0Head of Department/Chief Executive Officer 4 2 50 0Horticulturists, foresters, agriculture & forestry technicians

689 646 6.2 1

Human resources, organisational development & related professional

47 44 6.4 0

Human resources clerks 76 73 3.9 1Human resources related 28 26 7.1 0Information technology related 13 11 15.4 0Inspectors of apprentices works and vehicles 1 1 0 0Language practitioners interpreters & other communicators

3 3 0 0

Legal related 1 1 0 0Library mail and related clerks 24 22 8.3 0Light vehicle drivers 3 3 0 0Logistical support personnel 14 14 0 0Material-recording and transport clerks 158 149 5.7 0Mechanical engineering technicians 3 3 0 0Messengers porters and deliverers 15 14 6.7 0Meteorologists statistical & related technicians 17 17 0 0Motor vehicle drivers 39 35 10.3 0Motorised farm and forestry plant operators 15 15 0 0National technical examiners 58 58 0 0Other administrative & related clerks and organisers 78 73 6.4 0Other administrative policy and related officers 66 57 13.6 0Other information technology personnel 2 2 0 0Other occupations 63 63 0 2Pharmacists 1 1 0 0Printing management and supervisory personnel 1 1 0 0Production advisers: factories 1 1 0 0Risk management and security services 1 1 0 0Safety health and quality inspector 19 19 0 0Secretaries & other keyboard operating clerks 85 75 11.8 0Security guards 50 50 0 0Security officers 6 6 0 0Senior managers 32 19 40.6 0Statisticians and related professionals 1 0 100 0Trade labourers 67 63 6 0Veterinarians 46 37 19.6 0Veterinary assistants 12 12 0 0TOTAL 3 472 3 152 9.2 6

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3.3. Job evaluation

Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in his or her organisa-tion. In terms of the regulations all vacancies on salary levels nine and higher must be evaluated before they are filled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded.

Table 3.3.1 Job Evaluation by Salary band

Salary bandNumber of posts


Number of Jobs

Evaluated

% of posts evaluated by salary bands

Posts Upgraded Posts downgraded

Number% of posts evaluated

Number% of posts evaluated

Lower skilled (Levels1-2) 339 0 0 0 0 0 0Skilled (Levels 3-5) 766 0 0 1 0 0 0Highly skilled production(Levels6-8)

1 457 0 0 0 0 0 0

Highly skilled supervision (Levels 9-12)

803 0 0 0 0 0 0

Senior Management Service Band A

44 0 0 0 0 0 0

Senior Management Service Band B

11 0 0 0 0 0 0

Senior Management Service Band C

4 0 0 0 0 0 0

Senior Management Service Band D

1 0 0 0 0 0 0

Contract (Levels 1-2) 0 0 0 0 0 0 0Contract (Levels 3-5) 5 0 0 0 0 0 0Contract(Levels6-8) 22 0 0 0 0 0 0Contract (Levels 9-12) 18 0 0 0 0 0 0Contract (Band A) 1 0 0 0 0 0 0Contract (Band B) 0 0 0 0 0 0 0Contract (Band C) 0 0 0 0 0 0 0Contract (Band D) 1 0 0 0 0 0 0Total 3 472 0 0 1 0 0 0

The following table provides a summary of the number of employees whose positions were upgraded due to their post being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.

Table 3.3.2 Profile of employees whose positions were upgraded due to their posts being upgradedBeneficiary African Asian Coloured White Total

Female 1 0 0 0 1Male 0 0 0 0 0Total 1 0 0 0 1Employees with a disability 0

The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviation are provided in each case.

92



Table 3.3.3 Employees with salary levels higher than those determined by job evaluation by occupationOccupation Number of employees Job evaluation level Remuneration level Reason for deviation

None

Percentage of total employed

The following table summarises the beneficiaries of the above in terms of race, gender, and disability.

Table 3.3.4 Profile of employees who have salary levels higher than those determined by job evaluation Beneficiary African Asian Coloured White Total

Female 0 0 0 0 0Male 0 0 0 0 0Total 0 0 0 0 0Employees with a disability 0 0 0 0 0

Total Number of Employees whose remuneration exceeded the grade determined by job evaluation in 2012/13 -

3.4 Employment Changes

This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the Department. The following tables provide a summary of turnover rates by salary band and critical occupations.

Table 3.4.1 Annual turnover rates by salary band

Salary BandNumber of employees

at beginning of period-April 2012

Appointments and transfers into the

Department

Terminations and transfers out of the Department

Turnover rate

Lower skilled ( Levels 1-2) 319 2 13 4.1Skilled (Levels3-5) 699 12 56 8Highlyskilledproduction(Levels6-8) 1 395 9 50 3.6Highly skilled supervision (Levels 9-12) 778 6 39 5Senior Management Service Bands A 34 0 0 0Senior Management Service Bands B 6 0 0 0Senior Management Service Bands C 2 0 0 0Senior Management Service Bands D 1 0 0 0Contracts 47 8 10 4.5Total 3 281 37 168 5.1

Table 3.4.2 Annual turnover rates by critical occupation

Critical OccupationNumber of employees


Appointments and transfers

into the Department

Terminations and transfers

out of the Department

Turnover rate

Administrative related 126 2 3 2.4Agriculture animal oceanography forestry & other scientists 60 0 3 5Agriculture related 212 0 8 3.8All artisans in the building metal machinery etc. 2 0 0 0Auxiliary and related workers 13 0 0 0Biochemistry pharmacology. Zoology & life science technicians 372 7 13 3.5Building and other property caretakers 24 0 3 12.5Bus and heavy vehicle drivers 26 0 3 11.5

93






into the Department



Turnover rate

Cartographic surveying and related technicians 20 0 0 0Civil engineering technicians 3 0 0 0Cleaners in offices workshops hospitals etc. 143 0 15 10.5Client inform clerks 15 0 0 0Communication and information related 5 0 0 0Conservation labourers 41 0 2 4.9Economists 32 0 0 0Engineering sciences related 7 0 0 0Engineers and related professionals 0 1 0 0Farm hands and labourers 317 2 31 9.8Farming, forestry advisors and farm managers 8 0 0 0Finance and economics related 19 0 2 10.5Financial and related professionals 77 0 1 1.3Financial clerks and credit controllers 83 2 3 3.6Food services aids and waiters 13 0 0 0Head of Department/Chief Executive Officer 3 0 1 33.3Horticulturists foresters agriculture & forestry technicians 674 1 25 3.7Human resources & organisational development & related professions 35 3 1 2.9Human resources clerks 75 1 3 4Human resources related 23 1 1 4.3Information technology related 11 0 0 0Inspectors of apprentices works and vehicles 1 0 0 0Language practitioners interpreters & other communicators 3 0 0 0Library mail and related clerks 22 1 2 9.1Light vehicle drivers 3 0 0 0Logistical support personnel 14 0 0 0Material-recording and transport clerks 147 6 5 3.4Mechanical engineering technicians 3 0 0 0Messengers porters and deliverers 14 0 1 7.1Meteorologists statistical & related technicians 18 0 1 5.6Motor vehicle drivers 34 2 1 2.9Motorised farm and forestry plant operators 16 0 1 6.3National technical examiners 66 0 7 10.6Other administrative & related clerks and organisers 77 0 4 5.2Other administrative policy and related officers 61 0 5 8.2Other information technology personnel 2 0 0 0Other occupations 65 0 5 7.7Pharmacists 1 0 0 0Printing management and supervisory personnel 1 0 0 0Production advisers: factories 2 0 1 50Risk management and security services 1 0 0 0Safety health and quality inspectors 19 0 0 0Secretaries & other keyboard operating clerks 80 2 5 6.3Security guards 53 0 2 3.8Security officers 4 2 0 0

94






into the Department



Turnover rate

Senior managers 19 1 1 5.3Trade labourers 65 0 2 3.1Veterinarians 38 3 6 15.8Veterinary assistants 13 0 1 7.7TOTAL 3 281 37 168 5.1

The table below identifies the major reasons why staff left the Department.

Table 3.4.3 Reasons why staff left the Department Termination Type Number % of Total Resignations

Death 48 55.2Resignation 21 24.1Expiry of contract 5 5.7Dismissal due to operational changes 0 0Dismissal due to misconduct 3 3.5Dismissal due to inefficiency 0 0Discharged due to ill-health 0 0Retirement 9 10.4Transfer to other Public Service Departments 1 1.1Other 0 0Total 87 100Totalnumberofemployeeswholeftasa%oftotalemployment 2.7% 100

Table 3.4.4 Promotions by critical occupation

OccupationEmployees 1

April 2012

Promotions to another salary

level

Salary level promotions as a %

of employees by occupation

Progressions to another notch within a salary

level

Notch progression as a % of employees by

occupation

Administrative related 126 3 2.4 91 72.2Agriculture, animal, oceanography, forestry & other science

60 5 8.3 43 71.7

Agriculture related 212 12 5.7 166 78.3All artisans in the building metal machinery etc.

2 0 0 1 50

Auxiliary and related workers 13 0 0 7 53.8Biochemistry, Pharmacology, Zoology & life science technician

372 0 0 246 66.1

Building and other property caretakers

24 0 0 11 45.8

Bus and heavy vehicle drivers 26 0 0 19 73.1Cartographic surveying and related technicians

20 0 0 10 50

Civil engineering technicians 3 0 0 2 66.7Cleaners in offices workshops hospitals etc.

143 0 0 115 80.4

Client inform clerks 15 1 6.7 3 20

95




April 2012


level




level


occupation

Communication and information related

5 0 0 3 60

Conservation labourers 41 0 0 17 41.5Economists 32 0 0 26 81.3Engineering sciences related 7 0 0 4 57.1Farm hands and labourers 317 0 0 249 78.5Farming forestry advisors and farm managers

8 1 12.5 9 112.5

Finance and economics related

19 0 0 13 68.4

Financial and related professionals

77 2 2.6 50 64.9

Financial clerks and credit controllers

83 1 1.2 45 54.2

Food services aids and waiters 13 0 0 12 92.3Head of Department/Chief Executive Officer

3 0 0 0 0

Horticulturists foresters agriculture & forestry technician

674 1 0.1 615 91.2

Human resources, organisational development & related professions

35 5 14.3 24 68.6

Human resources clerks 75 5 6.7 36 48Human resources related 23 1 4.3 16 69.6Information technology related

11 0 0 9 81.8

Inspectors of apprentices works and vehicles

1 0 0 1 100

Language practitioners interpreters & other communicators

3 0 0 1 33.3

Legal related 0 0 0 1 0Library mail and related clerks 22 1 4.5 15 68.2Light vehicle drivers 3 0 0 2 66.7Logistical support personnel 14 0 0 11 78.6Material-recording and transport clerks

147 4 2.7 67 45.6

Mechanical engineering technicians

3 0 0 3 100

Messengers porters and deliverers

14 0 0 7 50

Meteorologists statistical & related technicians

18 0 0 10 55.6

Motor vehicle drivers 34 0 0 22 64.7Motorised farm and forestry plant operators

16 1 6.3 15 93.8

National technical examiners 66 0 0 50 75.8Other administrative & related clerks and organisers

77 2 2.6 30 39

96




April 2012


level




level


occupation

Other administrative policy and related officers

61 0 0 27 44.3

Other information technology personnel.

2 0 0 1 50

Other occupations 65 0 0 48 73.8Pharmacists 1 0 0 1 100Printing management and supervisory personnel

1 0 0 0 0

Production advisers: factories 2 0 0 2

100

Risk management and security services

1 0 0 1 100

Safety health and quality inspectors

19 0 0 13 68.4

Secretaries & other keyboard operating clerks

80 0 0 55 68.8

Security guards 53 0 0 35 66Security officers 4 0 0 4 100Senior managers 19 1 5.3 15 78.9Trade labourers 65 0 0 14 21.5Veterinarians 38 0 0 25 65.8Veterinary assistants 13 0 0 11 84.6TOTAL 3 281 46 1.4 2 329 71

Table 3.4.5 Promotions by salary band

Salary BandEmployees 1

April 2012

Promotions to another salary level

Salary bands promotions as a % of employees by salary

level


level


salary bands

Lower skilled (Levels 1-2) 319 1 0 144 45.1Skilled (Levels3-5) 701 3 0.4 581 83.1Highly skilled production (Levels6-8)

1 417 12 0.9 930 66.7


798 29 3.7 615 79

Senior Management (Level 13-16)

46 1 2.3 33 76.7

Total 3 281 46 7.3 2 303 71.2

3.5 Employment equity

The Department has an approved Employment Equity Policy, the Employment Equity Plan is currently under review and willbefinalisedby30June2013.TherepresentationoffemalesatSMSlevelandattractingemployeeswithdisabilitiesremains a challenge in the Department.

There are programmes that are in place and were implemented in the course of 2012/13 financial year, that were aiming at addressing gaps that existed in the non-achievement of EE targets.The tables below will be analysing and summarising the organisational profile to sustain organisational growth and development.

97



Table 3.5.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2013

Occupational categoryMale Female Total

African Coloured Indian White African Coloured Indian WhiteLegislators, senior officials and managers 13 1 0 3 7 0 1 0 25Professionals 278 2 2 29 194 4 0 16 525Technicians and associate professionals 812 8 1 24 431 4 1 17 1298Clerks 116 3 0 1 351 11 1 15 498Service and sales workers 31 3 0 0 23 0 0 0 57Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0Craft and related trades workers 53 0 0 0 0 0 0 0 63Plant and machine operators and assemblers 76 0 0 0 0 0 0 0 76Elementary occupations 422 9 0 0 150 7 0 0 588Employees with disabilities 15 0 0 0 7 0 0 0 22Total 1 801 26 3 57 1 156 26 3 48 3 152

Table 3.5.2 Total number of employees (including employees with disabilities) in each of the following occupational bands on 31 March 2013

Occupational BandMale Female

African Coloured Indian White African Coloured Indian White Total Top Management (L15-L16)

2 0 0 0 1 0 0 0 3

Senior Management (L13-L14)

19 1 0 7 14 0 1 0 42

Professionally qualified and experienced specialists and mid-management

537 2 3 20 170 4 0 17 753

Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents

631 8 0 9 648 7 1 30 1 334

Semi-skilled and discretionary decision making

469 9 0 1 225 9 0 1 714

Unskilled and defined decision making

169 6 0 0 126 5 0 0 306

Total 1 827 21 3 45 1 181 25 2 48 3 152

98



Table 3.5.3 Recruitment


African Coloured Indian White African Coloured Indian White TotalTop Management 0 0 0 0 0 0 0 0 0Senior Management 1 0 0 0 0 0 0 0 1Professionally qualified and experienced specialists and mid-management

5 0 0 0 4 0 0 0 9

Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents

5 0 0 0 5 0 0 0 10

Semi-skilled and discretionary decision making

8 1 0 0 6 0 0 0 15

Unskilled and defined decision making

2 0 0 0 0 0 0 0 2

Total 21 1 0 0 15 0 0 0 37Employees with disabilities 0 0 0 0 0 0 0 0 0

Table 3.5.4 Promotions

Top Management 0 0 0 0 0 0 0 0 0Senior Management 0 0 0 0 0 0 0 0 0Professionally qualified and experienced specialists and mid-management 5 0 0 0 4 0 0 0 9Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents

0 0 0 0 0 0 0 0 0

Semi-skilled and discretionary decision making 0 0 0 0 4 0 0 0 4Unskilled and defined decision making 0 0 0 0 0 0 0 0 0Total 5 0 0 0 8 0 0 0 13Employees with disabilities 0 0 0 0 0 0 0 0 0

99



Table 3.5.5 Terminations


African Coloured Indian White African Coloured Indian White Total

Top Management 0 0 0 0 1 0 0 0 0Senior Management 1 0 0 0 0 0 0 0 1Professionally qualified and experienced specialists and mid-management 37 1 1 2 3 0 0 0 44Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents 28 0 0 1 19 0 0 3 51Semi-skilled and discretionary decision making 50 0 0 0 8 0 0 0 58Unskilled and defined decision making 9 0 0 0 4 0 0 0 0Total 125 1 1 3 34 0 0 3 168Employees with Disabilities 0 0 0 0 0 0 0 0 0

Table 3.5.6 Disciplinary action

Disciplinary actionMale Female

African Coloured Indian White African Coloured Indian White Total

Misconduct 40 0 0 0 13 0 0 0 53

Table 3.5.7 Skills development

Occupational categoryMale Female

African Coloured Indian White African Coloured Indian White TotalLegislators, senior officials and managers 96 7 1 7 159 7 1 1 279Professionals 9 1 0 2 14 2 0 1 29Technicians and associate professionals 169 0 0 0 293 0 0 0 462Clerks 260 1 0 0 451 11 0 1 725Service and sales workers 0 0 0 0 0 0 0 0 0Skilled agriculture and fishery workers 0 0 0 0 0 0 0 0 0Craft and related trades workers 0 0 0 0 0 0 0 0 0Plant and machine operators and assemblers 0 0 0 0 0 0 0 0 0Elementary occupations 148 2 0 0 362 4 0 0 516Employees with disabilities 0 0 0 0 1 0 0 0 1Total 682 11 1 9 1 280 24 1 3 2 011

100



3.6 Performance Rewards

To encourage good performance, the Department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations.

Table 3.6.1 Performance Rewards by race, gender and disability

DemographicsNumber of

BeneficiariesTotal

Employment

Percentage of Total

EmploymentCost (R’000)

Average Cost per Beneficiary (R)

African, Female 549 1 167 47 5,308 9 ,669

African, Male 659 1803 36.6 6 ,940 10 ,531

Asian, Female 1 2 50 11 11 ,416

Asian, Male 2 3 66.7 64 31,840

Coloured, Female 17 26 65.4 171 10 ,072

Coloured, Male 15 25 60 130 8,657

Total Blacks, Female 567 1 195 47.4 5 ,491 9,684

Total Blacks, Male 676 1831 36.9 7 ,133 10 ,552

White, Female 36 48 75 422 11 ,734

White, Male 26 56 46.4 489 18,818

Employees with a disability 5 22 22.7 40 7,985

TOTAL 1 310 3 152 41.6 13 ,576 10 363

Table 3.6.2 Performance Rewards by salary band for personnel below Senior Management Service,

Salary BandNumber of

BeneficiariesTotal

Employment

Percentage of Total

EmploymentCost (R’000)

Average Cost per Beneficiary (R)

Lower skilled (Levels 1-2) 89 303 29.4 351 3 ,944

Skilled (Levels 3-5) 245 677 36.2 1 ,222 4,988

Highlyskilledproduction(Levels6-8) 630 1 329 47.4 5 ,992 9 ,511

Highly skilled supervision (Levels 9-12) 321 751 42.7 5 ,212 16 ,237

Contract (Levels 3-5) 0 5 0 0 0Contract(Levels6-8) 2 22 9.1 21 10 ,500

Contract (Levels 9-12) 7 18 38.9 146 20,857

Abnormal Appointment 0 190 0 0 0

TOTAL 1 294 3 295 39.3 12 ,944 10 ,003

Table 3.6.3 Performance Rewards by critical occupation

Critical OccupationBeneficiary Profile Cost

Number of beneficiaries

Number of employees

% of total within occupation

Total Cost (R’000)

Average cost per employee

Civil engineering technicians 1 3 33.3 14 14 ,000Economists 21 32 65.6 301 14 ,333Engineering sciences related 4 7 57.1 125 31 ,250Engineers and related professionals

1 1 100 12 12 ,000

Mechanical- engineering technicians

3 3 100 37 12 ,333

Risk management and security services

0 1 0 0 0

Veterinarians 15 38 39.5 330 22 ,000Total 45 85 52,9 819 105 ,916

101



Table 3.6.4 Performance related rewards (cash bonus), by salary band for Senior Management ServiceSalary Band Beneficiary Profile Cost

Number of beneficiaries

Number of employees

% of total within salary

bands

Total Cost (R’000)

Average cost per employee

Total cost as a % of the total personnel

expenditureB and A 12 36 33.3 482 40 ,167 33 ,975B and B 2 7 28.6 66 33 ,000 6,686B and C 1 2 50 51 51 ,000 3 ,440B and D 0 2 0 0 0 0

Total 15 47 31.9 599 39 ,933 44 ,101

3.7. Foreign Workers

The tables below summarise the employment of foreign nationals in the Department in terms of salary band and major occupation.

Table 3.7.1 Foreign workers by salary band

Salary Band01 April 2012 31 March 2013 Change

Number % of total Number % of total Number % ChangeLower skilled 0 0 0 0 0 0

Highly skilled production

(Level6-8)

0 0 0 0 0 0

Highly skilled supervision (Level 9-12)

4 0.1 3 0.1 (1) 0.05

Contract

(Level 9-12)

16 0.5 16 0.5 0 0

Contract

(Level 13-16)

1 0.03 1 0.03 0 0

Total 21 0.63 20 0.63 (1) 0.05

Table 3.7.2 Foreign workers by major occupation

Major Occupation01 April 2012 31 March 2013 Change

Number % of total Number % of total Number % ChangeProfessionals and managers

20 0.6 19 0.6 (1) (0.05)

Technicians and associated professionals

1 0.03 1 0.03 0 0

TOTAL 21 0,63 20 0.63 (1) (0.05)

102



3.8. Leave utilisation

The Public Service Commission identified the need for careful monitoring of sick leave within the public service. The fol-lowing tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.

Table 3.8.1 Sick leave

Salary Band Total days% Days with

Medical certification

Number of Employees using sick

leave

% of total employees using sick

leave

Average days per

employee

Estimated Cost

(R’000)

Lower skills (Level 1-2) 1 765 91 204 11.8 9 465Skilled (Levels 3-5) 2 742 89.1 362 20.9 8 968Highly skilled production (Levels6-8)

5881 86.3 746 43.1 8 4 ,199

Highly skilled supervision (Levels 9 -12)

2 254 86.2 375 21.7 6 2,986

Top and senior management (Levels 13-16)

178 93.3 27 1.6 7 522

Total 12 820 445.9 1 724 99.1 38 9 ,140

Table 3.8.2 Disability leave (temporary and permanent)

Salary Band Total days % Days with

Medical certification

Number of Employees using

disability leave

% of total employees

using disability leave

Average days per

employee

Estimated Cost (R’000)

Lower skilled (Levels 1-2) 129 100 5 13.5 26 34Skilled (Levels 3-5) 123 100 7 18.9 18 45Highly skilled production (Levels6-8)

299 100 17 45.9 18 229


193 100 6 16.2 32 235

Senior management (Levels 13-16)

13 100 2 5.4 7 38

Total 757 100 37 100 20 581

The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.

Table 3.8.3 Annual Leave

Salary Band Total days takenNumber of Employees using

annual leaveAverage per employee

Lower skilled (Levels 1-2) 6846.92 22 310Skilled (Levels 3-5) 15048.24 22 686Highlyskilledproduction(Levels6-8) 28416.09 21 1 345Highly skilled supervision (Levels 9-12) 16 216.16 21 764Senior management (Levels 13-16) 921.92 21 43Total 67 449.33 107 3 148

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Table 3.8.4 Capped leaveSalary Band Total days of capped

leave takenNumber of Employees

using capped leaveAverage number of days taken per

employee

Average capped leave per employee as at 31 March

Lower skilled (Levels 1-2) 24 9 3 36Skilled (Levels 3-5) 103 19 5 96Highly skilled production (Levels6-8)

96 19 5 125


81 20 4 146

Senior management (Levels 13-16)

2 1 2 123

Total 306 68 5 117

The following table summarise payments made to employees as a result of leave that was not taken.

Table 3.8.5 Leave pay-outsReason Total Amount (R’000) Number of

EmployeesAverage per

employee (R’000)Leave pay out for 2011/12 due to non-utilisation of leave for the previous cycle

64 2 32 ,000

Capped leave pay outs on termination of service for 2012/13

1 ,990 212 9,387

Current leave pay out on termination of service for 2012/13

0 13 0

Total 2 ,054 227 41,387

3.9. HIV/AIDS & health promotion programmes

Table 3.9.1 Steps taken to reduce the risk of occupational exposureUnits/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)

Key steps taken to reduce the risk

N/A

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Table 3.9.2 Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)Question Yes No Details, if yes

1. Has the Department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.

YesMrs. N. Mabele - General Manager: Corporate Services

2. Does the Department have a dedicated unit or has it designated specific staff members to promote the health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

YesEleven designated employees with an annual budgetofR980,000(excludingsalaries)

3. Has the Department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of this Programme.

Yes

Counselling, awareness and prevention campaigns, education on psycho-social issues including substance abuse and financial management

4. Has the Department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

YesSix integrated employee wellness programme committees established since 2010

5. Has the Department reviewed its employment policies and practices to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.

YesEmployment Equity Policy and recruitment policies in accordance with legislation

6. Has the Department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures.

Yes

The draft HIV/AIDS and TB management policies protect the rights of infected employees against discrimination in the workplace. Five qualified social workers who are bound by professional ethics attend HIV infected employees to ensure employee confidentiality and protection

7. Does the Department encourage its employees to undergo voluntary counselling and testing? If so, list the results that you have achieved?

Yes

HIV counselling and testing is made available at all wellness activities. A total of 124 employees have been tested, ten tested positive (information supplied by GEMS), no information is available of the tests done by the Department of Health.

8.HastheDepartmentdevelopedmeasures/indicators to monitor and evaluate the impact of its health promotion programme? If so, list these measures/indicators?

Yes

Number of Pillir cases where employees have been reintegrated back to work after long illnesses. Number of employees on the disease management programme (e.g. AFA)

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3.10. Labour Relations

Table 3.10.1 Collective agreementsSubject Matter Date

None

The following table summarises the outcome of disciplinary hearings conducted within the Department for the year under review.

Table 3.10.2 Misconduct and disciplinary hearings finalisedOutcomes of disciplinary hearings Number % of total

Correctional counselling 0 0Verbal warning 0 0Written warning 3 5.6Final written warning 7 13.2Suspended without pay 2 3.7Fine 0 0Demotion 0 0Dismissal 3 1.8Not guilty 4 7.5Case withdrawn 1 7.5Total 20 38

Table 3.10.3 Types of misconduct addressed at disciplinary hearings Type of misconduct (based on annexure A) Number % of total

Insubordination 4 7.5Absenteeism 17 32.1Loss of property 4 7.5Negligence 3 5.6Misuse of property 17 13.1PMDS 1 1.8Violence 3 5.6Fraud 3 5.6Other 1 1.8

Table 3.10.4 Grievances logged Number % of Total

Number of grievances resolved 3 60Number of grievances not resolved 2 40Total number of grievances lodged 5 100

Table 3.10.5 Disputes loggedNumber % of Total

Number of disputes upheld 0 0Number of disputes dismissed 1 5.9Total number of disputes lodged 17 5.9

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Table 3.10.6 Strike actions Total number of persons working days lost 384Total costs working days lost 14,208Amount (R’000) recovered as a result of no work no pay 0

Table 3.10.7 Precautionary suspensionsNumber of people suspended 1Number of people whose suspension exceeded 30 days 1Average number of days suspended More than 60 daysCost (R’000) of suspension R1,076,619

3.11. Skills development

This section highlights the efforts of the Department with regard to skills development.

Table 3.11.1 Training needs identified

Occupational Category GenderNumber of

employees as at 1 April 2012

Training needs identified at start of the reporting period

Learnerships

Skills Programmes & other short

courses

Other forms of training

Total

Legislators, senior officials and managers

Female 8 0 7 0 0Male 17 0 13 0 0

Professionals Female 214 0 261 0 0Male 311 0 264 0 0

Technicians and associate professionals

Female 453 0 524 0 0Male 845 0 784 0 0

Clerks Female 378 0 290 0 0Male 120 0 208 0 0

Service and sales workers Female 23 0 0 0 0Male 34 0 0 0 0

Skilled agriculture and fishery workers

Female 0 0 0 0 0Male 0 0 0 0 0

Craft and related trades workers

Female 0 0 0 0 0Male 53 0 0 0 0

Plant and machine operators and assemblers

Female 10 0 0 0 0Male 76 0 0 0 0

Elementary occupations Female 157 0 520 0 0Male 431 0 113 0 0

Sub Total Female 1 233 0 1 602 0 0Male 1887 0 1382 0 0

Total 3 152 0 2 984 0 0

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Table 3.11.2 Training provided for the period

Occupational Category GenderNumber of

employees as at 1 April 2012

Training provided within the reporting period

Learnerships

Skills Programmes & other short

courses

Other forms of training

Total

Legislators, senior officials and managers

Female 8 0 168 0 0Male 17 0 111 0 0

Professionals Female 214 0 17 0 0Male 311 0 12 0 0

Technicians and associate professionals

Female 453 0 293 0 0Male 845 0 169 0 0

Clerks Female 378 51 632 0 683Male 120 24 261 0 285

Service and sales workers Female 23 0 0 0 0Male 34 0 0 0 0

Skilled agriculture and fishery workers

Female 0 0 0 0 0Male 0 0 0 0 0

Craft and related trades workers Female 0 0 0 0 0Male 53 0 0 0 0

Plant and machine operators and assemblers

Female 10 0 0 0 0Male 76 0 0 0 0

Elementary occupations Female 157 0 367 0 0Male 431 0 150 0 0

Sub Total Female 1 233 51 1308 0 1 359Male 1887 24 703 0 727

Total 3 152 75 2 011 0 2 086

3.12. Injury on duty

The following tables provide basic information on injury on duty.

Table 3.12.1 Injury on dutyNature of injury on duty Number % of total

Required basic medical attention only 0 0Temporary total disablement 0 0Permanent disablement 0 0Fatal 0 0Total 0 0

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3.13. Utilisation of Consultants

Table 3.13.1 Report on consultant appointments using appropriated funds

Project TitleTotal Number of consultants that worked on project

DurationWork days

Contract value inRand

None 0 0 0

Total number of projects Total individual consultantsTotal duration

Work daysTotal contract value in Rand

Table 3.13.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project TitlePercentage ownership by HDI

groupsPercentage management by

HDI groupsNumber of Consultants from HDI groups that work on the project

None 0 0 0

Table 3.13.3 Report on consultant appointments using donor funds

Project TitleTotal Number of consultants that

worked on project

Duration

Work days

Donor and Contract value in Rand

None 0 0 0

Total number of projects Total individual consultantsTotal duration

Work daysTotal contract value in Rand

None 0 0 0

Table 3.13.4 Analysis of consultant appointments using donor funds, in terms of Historically Disadvantaged Individuals (HDIs)

Project TitlePercentage ownership by

HDI groupsPercentage management

by HDI groupsNumber of Consultants from HDI groups that work on the project

None 0 0 0

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PART EfInanCIal InformatIon

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Part E: Financial InformationREPORT BY THE ACCOUNTING OFFICER TO THE EXECUTIVE AUTHORITY AND PARLIAMENT/PROVINCIAL LEGISLATURE OF THE REPUBLIC OF SOUTH AFRICA.

1. General review of the state of financial affairs

1.1 Strategic overview

The core business of the Department is derived from Section 27(1) (b) and 2 of the Constitution which is to achieve the progressive realisation of the right of everyone to have access to sufficient food. The legislative mandate of the Department is to support rural communities with regards to rural development and food security and is responding to Outcome 7: “develop vibrant, equitable and sustainable rural communities that contribute to adequate food supply”. The Department continues to focus on the food security programme through crop and livestock production; providing technical andfinancial support to subsistence, small holder and commercial farmers. There has also been focus on agro-processing industries through supporting value chain initiatives to add value thereby ensuring beneficiation.

1.2 Significant events and major projects undertaken and completed during the year

During the year under review the Department continued to implement its strategic priorities and meaningfully contributed in improving rural livelihood. In its quest to ensure sustainable resource management, the Department continues to use its meagre engineering capacity to provide infrastructure of the best quality. To this effect, 153 designs, and 163 advisory reports were issued in lieu of infrastructure development. Two major infrastructure projects, namely the Xashimba abattoir (R 14 million) and Grahamstown poultry abattoir (R7,6 million) are well underway using the CASP allocations to infrastructure. The mechanisation capacity of the Department was extended to 72 tractor units provided by DAFF. The LandCareProgrammeprovided1826green jobs tocommunitymemberduringtheconstructionofsoilerosionworksand fencing of sensitive areas. Six land use plans were developed to enable sound farming practise. The Eastern Cape was allocated the highest number of renewable energy wind farms and the Resource Planning Directorate was instrumental in providing the necessary support to the five existing land parcels. The allocation of R2 million to disaster mitigation was concluded, leading to the successful management of five disaster relief schemes. The GIS unit created 170 new maps in support of rural development initiatives.

The strategy of providing support to farming focusing on the majority of the resource poor farmers has worked very well wherebyonfoodproduction,supportwasprovidedtosubsistencefarmerstocollectivelyplant8031hectaresofmaizeandothergraincrops.TheprovincialLetsemaallocationofR38millionwassupplementedbyfurtherallocationofanotherR38million from DAFF. The strategies deployed to encourage farmers and business communities, to emulate the strides made by the Honourable MEC to mobilise resources to plant more hectares, was successful. An initiative by business woman, Mrs Gloria Serobe, to plant and fence 200 hectares of maize for rural farmers in Centane in the Amathole District is commended.

The Department sourced superior genetic quality bulls and rams and distributed these to community projects across all six districts. These improved livestock are to provide seed stock towards improvement of the livestock of the communal and small holder farmers as part of the strategy of livestock development.

The Research Directorate presented twenty five scientific papers and posters in five scientific congresses. The dissemination of information on crop and animal production was done successfully through distribution of information packs during technology transfer events. Research collaboration with communal farmers and the simulation of typical rural community farming practise to increase yield and resulting income is bearing fruit.

The Department provided strategic support to the sector by attending to applications for agricultural co-operatives in support of their establishment for collective farming benefits. Eighty percent of all applications for business plans were compiled as planned in order to access funding for various agri-businesses. Agricultural economic advice to enable farmers

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to make informed decisions and loan applications and investment opportunities were facilitated. The Department provided support (R11,5 million) to the Ncera Macadamia Nuts project in Buffalo City Municipality. One hundred and twenty jobs were created and the project is fully prepared for operation.

Furthermore, the Department trained 2,277 farmers in various commodities (livestock production, plant production, home industry) and agricultural business enterprises. The Department trained 145 farm workers and 31 military veterans in agricultural enterprise.Alearnershipprogrammewasconductedfor89outofschoolyouthonanimalandcropproduction.

During the year, Tsolo Agriculture and Rural Development Institute (TARDI) was given a provisional accreditation to offer a National Diploma in Animal Health by the Council of Higher Education, indeed a huge step towards the ideal of sustainable rural and agricultural training entities.

The Rural Development Pilot Programme identified and profited 11 pilot sites. Community profiling enabled the Department to analyse the extent of poverty and under-development for planning and service delivery purposes. Unemployed youths (166) were trained and employed during the profiling. The Eastern Cape Socio Economic Consultative Council (ECSECC) is now commissioned to develop a spatial information system for all provincial rural development planning and reporting. Whilst the need by far exceeds the services offered by the Department, all was done to optimally use the resources available to address this need.

1.3 Spending trends

The total appropriation for the Department of Rural Development and Agrarian Reform (DRDAR) for the year ended 31 March2013wasR1.68billionwithandtotalexpenditureamountingtoR1.62billion.Thebulkoftheunder-expenditureofR61 million is attributed to slow spending on conditional grants.

The spending of R61 million is as follows;2012/13

R’0002011/12

R’000Main appropriation 1,680,654 1,532,976

Less: total expenditure 1,617,094 1,484,433

Underspent 63,559 48,543

Percentage underspent 4% 3%

The following table reflects departmental expenditure per programme and economic classification;

Programme Description

2012/13R’000

2011/12R’000

Main Appropriation

Actual Expenditure Variance Main

AppropriationActual

Expenditure Variance

Administration 433,935 419,734 14,201 440,139 439,783 356

Sustainable Resource Management 157,518 141,473 16,045 132,786 124,450 8,336Farmer Support and Development 462,647 442,797 19,850 438,418 425,269 13,149Veterinary Services 235,087 230,709 4,378 220,584 214,708 5,876Technology Research and Development 79,239 78,987 252 83,037 74,058 8,979Agricultural Economics 207,783 205,478 2,305 105,105 103,913 1,192Structured Agricultural Training 104,444 99,601 4,843 112,907 102,253 10,654TOTALS 1,680,653 1,618,779 61,875 1,532,976 1,484,433 48,543

ECONOMIC CLASSIFICATION

Compensation of Employees 909,001 905,688 3,313 895,083 854,908 40,175Goods and Services 427,520 392,888 34,632 484,212 474,348 9,864Transfers and Subsidies 186,975 187,650 (675) 133,199 136,802 (3,603)Payments for Capital Assets 155,505 130,868 24,637 20,482 14,445 6,037Payments of financial Assets 0 0 0 0 0 3,930SUB-TOTAL 1,679,001 1,617,094 61,907 1,532,976 1,480,5033 56,403

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As part of the budget management framework (in-year-monitoring), monthly budget review meetings were held and chaired by the Accounting Officer. During the first budget review, it became evident that due to the new requirement of capitalisation of infrastructure by National Treasury, the Department was faced with significant under-spending. The Department therefore embarked on a budget reprioritisation process which resulted in infrastructure projects and funding being reallocated to projects which could be finalised within the 2012/13 financial year.

The Department under spent by R61 million mainly due to conditional grants with particular reference to CASP. The under spending was due to the following reasons:

Goods and Services

• Goods&Serviceswasunder-spentbyR35millionduetothecancellationoftheacquisitionofanewfinancialreportingsystem which was planned to be procured during the year under review. The Department was advised against the acquisition of this system by Provincial Treasury, who is in the process of upgrading the current financial system (BAS).

• DelaysinsubmissionoffleetinvoicesbytheDepartmentofTransportresultedinunder-spendingbythisprogramme.The same challenges were experienced with SITA. These delays have resulted in accruals which will have to be catered for in the 2013/14 budget allocation.

Capital Expenditure

• Forconditionalgrantsandinfrastructure,mosttendersareawardedtoHDIcontractorsinaccordancewithBBBEEwhichensures bias towards them. There are challenges of default with these contractors such that the tendering process in some instances had to be repeated for the same projects. This causes huge delays in the finalisation of these projects and hence the payment thereof. This resulted to delays in the completion of the Grahamstown Paultry and Xashimba Abattoirs. As a result of these delays there is a loss of market access for the beneficiaries. Incompletion of infrastructure projects compromised the health of animals, brought about the loss of production and control of animal movement associated with infrastructure provision.

• The fencing for LandCareprojects amounting toR1million, aswell asGISequipmentwerenotdeliveredon timeresulting in these invoices having to be paid in the next financial year. During the contracting time screening of suppliers is strengthened to asses capacity. Defaulting contractors are blacklisted.

• PlanninganddesignofRipplemeadCitrusPackhouseandNkathazuprojectsweredelayedduetoashortageofengineers.TheDepartment is considering outsourcing planning and design of infrastructure projects in order to fast track service delivery.

• Transfersunder thisprogrammerelates topaymentofexitbenefitswhichwereoverspentbyR712,000due to thetermination of employment as a result of natural attrition as well as resignations.

• Savingswererealisedfrompurchasingoftworollbacktrucksinsteadoflowbedtrucksforthetransportationoftractors.

1.4 Virements:

Virements were made between programmes to curb expenditure. All the virements processed were approved by the AccountingOfficerastheyallfallwithinthe8%limit.Belowisthestatusofvirementsperprogramme.

1.4.1Programme1:AdministrationBefore virementsR’000

Virements madeR’000

After virementsR’000

434283 (2 000) 432283

A virement of R2 million was made from programme 1 to curb programme 3 expenditure for compensation of employees.

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1.4.2Programme2:SustainableResourceManagementBefore virementsR’000



158299 (781) 157518

AvirementofR781,000wasmadefromprogramme2tocurbprogramme3expenditureforcompensationofemployees.

1.4.3Programme3:FarmerSupportandDevelopmentBefore virementsR’000



458480 4 167 462 647

ThisprogrammereceivedfundinginaformofVirementfromprogrammes1(R2m),programme2(R781000),and6(R1.39m)inordercurb expenditure on compensation of employees.

1.4.4Programme4:VeterinaryServicesBefore virementsR’000



234873 214 235087

This programme received funding from programme 6 to alleviate budget pressure on Compensation of Employees.

1.4.5Programme6:AgriculturalEconomicsBefore virementsR’000



211283 (3 500) 207783

Thisprogrammereleasedfundingtoprogrammes3(R1.386m)and4(R214000)toalleviatebudgetpressureonCompensationofEmployees, as well as programme 7 (R1.9m) for a bail out of Fort Cox College.

1.4.6Programme7:StructuredAgriculturalTrainingBefore virementsR’000



102 544 1 900 104 444

This programme received funding from programme 6 to bail out Fort Cox College which was facing a cash flow threat for the salaries of the 15th of April 2013..

The Department has incurred irregular expenditure, fruitless and wasteful expenditure during the year under review. The irregular expenditure is mainly due to the cumulative effect of HROPT payments. Late payments to the Auditor General and Telkom has resulted in these organisations charging the Department interest on overdue accounts. Budget constraints have resulted to late payments and the Department has now allocated adequate funding for all contractual obligations. Interest in respect of legal claims against the Department is also disclosed as wasteful expenditure. Traffic fines also form part of fruitless and wasteful expenditure and they are recovered from the employees concerned.

2. Service rendered by the department

The core business of the Department is derived from section 27(1) (b) and 2 of the Constitution which is to achieve the progressive realisation of the right of everyone to have access to sufficient food. The Department supports and promotes agriculture as well as facilitates and co-ordinates rural development in the Province. These services include:• Extensionandadvisoryserviceswhichprovideandfacilitatetraining,mentorship,co-ordinationtocommercialand

emerging farmers, including co-ordination of Rural Development projects.• Facilitate,co-ordinateandpromoteruraldevelopment.• Facilitateruraldevelopmentplanning.• Agrariantransformationoftheagriculturallandscape.• Provisionofagriculturalinfrastructureinordertoenhancetheplantandanimalproductionsystems.• Provisionofveterinaryservices• Investinhighimpactprojectswhichaddvalueintheagricultureasbusiness.

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2.1 Tariff policy

At the onset of the 2012/2013 financial year, the Department conducted a workshop for programmes affected by revenue sources to determine the revenue tariffs per programme. The revenue tariffs were reviewed in line with the budget for the MTEF period and the South African Veterinary Association (SAVA) tariffs guidelines. Through the Office of the Accounting Officer, the tariffs were submitted to Provincial Treasury for review and approval. Whilst waiting for the approval of the new tariffs, the current approved tariffs are used to collect revenue.

At the onset of the 2012/2013 financial year, the Department conducted a workshop for programmes affected by revenue sources to determine the revenue tariffs per programme. The revenue tariffs were reviewed in line with the budget for the MTEF period and the South African Veterinary Association (SAVA) tariffs guidelines. Through the Office of the Accounting Officer, the tariffs were submitted to Provincial Treasury for review and approval. Whilst waiting for the approval of the new tariffs, the current approved tariffs are used to collect revenue.

2.2 Free Services

The Department provides a heavily subsidised veterinary clinical service to the indigent communities of the Province. Use is made of Treasury-approved tariffs to determine cost recovery. The Department also provided free dipping services to the cattle owners of the Province, free vaccinations for rabies, anthrax, contagious abortion and Newcastle disease are provided as part of animal disease control.

2.3 Inventories

The total inventories on hand at year-end will be included in the annexure on inventory.

3. Capacity constraints

Performance management has become a key element in the Department. However the implementation of performance management in the Department has been affected by a number of capacity constraints, inadequate skills, human and financial resources which made it difficult for employees to perform effectively across the board. Vacancy and skills shortages covering a broad spectrum of specialisation in the various branches and regions continued to affect the Department’s operations and have adversely affected the service delivery capacity of the Department. Shortage of key personnel such as Scientists, Artisans, Engineers, Extension Officers, Community Animal Health Workers, Animal Health Technicians, Meat Inspectors, Laboratory Technicians and State Veterinarians remain a challenge. The Department has put more focus on the critical and scarce skills to maintain the human capability and capacity that the organisation needs to operate effectively. Through the Extension Recovery Plan 117 extension officers received training in various technical programmes to enable them to transfer knowledge and skills to newly established smallholder producers in the sector. Thirty seven extension officers have graduated and received Advanced Diplomas in Sustainable Agriculture andRuralDevelopment aspartofupgrading theirqualifications.Currently, 282extensionofficers areupgrading theirqualification.

Recruitment of interns assisted towards achieving objectives of the provincial Growth and development plan. The Department recruited 164 interns, 92 of the interns recruited were from Fort Cox College. The strategy was to combat the rising levels of unemployment amongst the youth and to combat the skills shortages in the core business of the Department. The paramount idea around the implementation of the Internship Programme under ERP is to create opportunitiesforunemployedgraduatestobeself-employed;increasingthevisibilityofExtensionServicesatwardlevel.

Training remains an important element in capacitating and improving employees with skills and competencies that are needed by the Department. In line with the Skills Development Plan, the Department trained 2 011 out of a total of 3 144 employees. More female employees were trained in leadership, project management, mentoring and coaching, computer skills, financial management and report writing. One hundred and twenty internal applicants were awarded bursaries to study at various institutions of higher learning.

The Employee Wellness Programme was enhanced with programmes and initiatives that served as an important health awareness vehicle in the education of employees regarding their health, maintenance and their welfare in general.

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4. Utilisation of donor funds

No donor funds were received during the year under review.

5. Trading entities and public entities

The public entities report to the Member of the Executive Authority. Each entity produces and reports according to its own strategic plan, and this report reflects briefly on the broad approach of each entity and its relevance to the Department’s strategic gaols and business.

To this end, the Department concluded the establishment of the Eastern Cape Rural Development Agency (ECRDA). The major aim to consolidate the Province’s efforts through a focused agency, compliant to general development principles and in line with Executive Committee resolutions has been achieved. The new ECRDA Board is embracing the objectives of Government and it is expected to execute these objectives through planning and implementation of high impact priority projects such as the Magwa Tea, Majola Tea, North-Pondoland Sugar and Kangela Citrus estates. The ECRDA furthermore seeks to extend the subsidised small loans and employment grant opportunities that exist.

The Eastern Cape Appropriate Technology Unit (ECATU) is still listed as a registered entity and the process of integrating it into the Department is underway.

Name of Entity Legislative Mandate

Financial Relationship

Nature of Operations

Eastern Cape Rural Development Agency (ECRDA)

Eastern Cape Rural Finance Cooperation Amendment , Act 2012

R114, 3 million was transferred to the ECRDA.

•TheECRDAisacatalystorganization,withanemphasison planning, research and project packaging, facilitation, project management, and implementation of priority programs.

•OtherfunctionsareInnovationanddevelopmentaswellsas mobilizing resources and capacity.

•Ruralfinanceservicestoruralcommunities,withspecificemphasis on loan finance on farming enterprises.

Eastern Cape Appropriate Technology Unit (ECATU)

Transkei Cooperation’sAct;1976

R14,8millionwastransferred to ECATU.

•Basicandappliedresearch•InnovationandKnowledgemanagement.•Projectmanagement.•Marketingofinnovativeandtestedtechnologies•Enterprisedevelopmentandcapacitybuildingfor

cooperatives.•Creatingandbuildingstrategicpartners.

6. Organisations to whom transfer payments have been made

Name of Organisation

Legislative Mandate

Financial Relationship

Nature of Operations

Fort Cox College Fort Cox College Decree no. 5 of 1991.

R26.029 million was transferred to Fort Cox in terms of its submission of its annual performance plan and associated budgets for the 2012/2013 financial year.

•OfferAgricultureEducationandTraining(AET)trainingon NQF levels 2-6 in compliance with the standard of the council in Higher Education (CHE), Higher Education Quality Framework (HEQF) and South African Quality Authority (SAQA) and in consultation with relevant stakeholders.

•Consult,developandimplementappropriateplanswith the Provincial Department of Rural Development and Agrarian Reform (DRDAR), to ensure that its human resource development programmes are incorporated into the strategic plan of Fort Cox. This include the training an up-skilling of agricultural extension and research personnel of DRDAR.

•Developandmaintainformalprofessionalandservicelevelagreement with DRDAR as part of the technology backup to their extension and research programmes.

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7. Public private partnerships (PPP)

There has been no Public Private Partnership entered into during the year under review.

8. Corporate governance arrangements

8.1 Audit Committee and Internal Audit

The Audit Committee adopted an Audit Committee Charter for the financial year under review. The Audit Committee complied with the Charter and with the requirements of the Public Finance Management Act (PFMA) and the Treasury Regulations for the 2012/13 financial year. The review of the effectiveness of the system of internal controls by the Audit Committee is informed by reports submitted by external audit, internal audit and management. The Audit Committee has drawn the attention of management to significant issues that have been raised in the previous year audit report and management report of the Auditor General. The Audit Committee has also raised matters that were identified in the reports of internal audit in the current financial year and items that emerged during the meetings of the Audit Committee with management. The Internal Audit Unit, provides services with the objective of assisting the Department in achieving its objectives and ensuring a sound system of governance. The scope of the internal audit was in accordance with the Internal Audit Plan as approved by the Audit Committee during the year under review. The Internal Audit Charter which defines the purpose, responsibility and authority of the internal audit function was approved by the Audit Committee.

8.2 Risk Management

Risk management was firmly a standing agenda item on all Top and Executive Management meeting with a view to inculcate the culture of risk management and setting the tone from the top. During the year under review management identified and assessed key risks facing the Department and developed a risk register which was continuously monitored by executive management, Risk Management Committee as well as the Audit Committee. The profile includes strategic, operational and business continuity risks and these form part of the Department’s Internal Audit Plans. The Risk Management Committee was established, and is responsible for monitoring risk management.

9. Discontinued activities/activities to be discontinued

There were no discontinued activities during the year under review.

10. New/proposed activities

The approach to the Comprehensive Agricultural Support Programme is to focus more on food production at the cost of infrastructure and as such the priorities will be adjusted within the same MTEF allocations. The Food Security sub directorate will have to initiate its ploughing programme earlier.

11. Asset management

All Departmental assets are captured on the Asset Register including new acquisitions. Asset movements are also captured as and when they occur.

The Department uses an Excel spreadsheet as an asset register and this system does not meet all minimum requirements of an asset register. In order to comply with the minimum requirements as set out by National Treasury, the Department will be using the Logis Asset Module for 2013/14 and this process has already been started.

The Department complies with all Asset Management Reforms. An approved Asset Management Policy and Implementation Guide is in place and approved and all assets have unique asset numbers (bar codes).

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12. Inventories

All inventory opening and closing balances, together with movements for the year, are reflected in the Annexure on Inventory.

The opening balance for the year ending 31 March 2013 is the same as the closing balance for the year ending 31 March 2012.

Receipts and issues for the year relate to all store items that were received and issued on the LOGIS system except for Dohne store which was maintained on an Excel spread sheet.

At 31 March 2013 a stock count was conducted to determine the amount of all inventories on hand at year end at the main stores. This was multiplied by the unit cost to reflect the amount of stock on hand at year end under closing balance of Annexure for Inventory.

13. Events after the reporting date

Payments amounting to R10 million were processed during April 2013, which relate to the 2012/13 financial yearend. These payments were not included in the financial statements for the 2012/13 financial year, which were prepared on the modified cash basis of accounting.

14. Information on predetermined objectives

The process of developing the annual performance plan is informed by the five year strategic plan, the government priorities such as the national outcomes and the provincial medium term strategic Framework priorities, sector priorities and the policy speech under the guidance and direction of the MEC. Planning was approached using top-down (such as the consideration of government priorities) and bottom-up (taking into account the needs of the local communities and municipal Integrated Development Plans). The guiding principles in the National Treasury Frameworks were considered.

Monthly and quarterly reports were compiled for submission to the MEC under the guidance of the Superintendent-General. These reports include the major achievements against the pre-determined targets. The reasons for major deviations against the targets are also explained in detail. At the end of each quarter, the senior management of the Department conducts a detailed review of the reports before they are submitted to the Executing Authority as well as Audit Committee.

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15. SCOPA resolutions

The Department appeared before the SCOPA on 19 October 2012 to discuss issues raised by the Auditor General on the 2011/12 audited financial statements. The SCOPA issued its findings and recommendations on the Departments audited financial statements and most of the findings are adequately addressed in the Audit Intervention Plan of the Department.

Reference to previous audit report and SCOPA resolutions

Subject Findings on progress

The Accounting Officer must submit a credible audit action plan detailing how the Department will address the audit findings within 30 days of the adoption of the report to the Committee, the Audit Committee and the Provincial Treasury.

Audit Intervention plan

An intervention plan that details how the department will address the audit findings was developed and is being monitored by management and the audit committee as well as the Provincial Treasury.

The Accounting Officer must also submit quarterly progress reports on the implementation of the action plan to the Committee, the Audit Committee and the Provincial Treasury.

Audit Intervention plan

Report on progress on the implementation of the audit implementation plan is submitted to the Provincial Treasury on a monthly basis and to the Audit Committee on a quarterly basis.

The Accounting Officer must ensure that disciplinary action is taken against all the officials responsible for the audit findings intermsofsection38(1)(h)ofthePublicFinancial Management Act read with the Public Service Act. The Accounting Officer must report to the Committee quarterly.

Irregular and fruitless and wasteful expenditure incurred.

Cases were investigated and disciplinary action was taken against the responsible officials.

The Members of the Executive Council (MEC) must ensure that they are hands on in the administration of their departments and that repetitive audit findings are completely eliminated from future audits of their departments.

Qualified audit opinion by AG.

Audi intervention plan was developed and progress on implementation is presented to the MEC on a regular basis by the Accounting Officer.

Accounting Officers must report properly on the indicators and targets set in the performance plans as approved by the Legislature. Should there be any changes during the year, the Legislature and relevant committees must be informed

Predetermined objectives

Predetermined objectives are reviewed monthly by program managers and quarterly by the extended management of the department. In addition, the department has established a system of evidence collection by which all source documents are stated and locations thereof clearly stated.

Accounting Officers must take appropriate steps to ensure that financial statements are quality assured to avoid material changes being effected during the audit process.

Annual Financial Statements

•AdetailedprojectplanforthepreparationofAnnualFinancial Statements, which clearly indicates key deliverables, key dates and responsible official. The plan was monitored by executive management, internal audit unit as well as the audit committee. It was also submitted to both the Provincial Treasury and the Auditor General.

•TheDepartmentalsoembarkedonreorganizationthrough proper placement of officials within the Financial Management Directorate to close the skills gap within the directorate. External support was sourced to provide assistance and transfer skills up to the end of the financial year up the Directorate.

Accounting Officers must give full cooperation with the audit teams assigned to their departments.

Audit process •ThedepartmentputupstructuressuchasAuditOperations and Steering Committees and the meetings have taken place as planned with full attendance by all members. As a result the relations with the Auditor General have improved significantly as a result the current (2012/13) audit process is running smoothly.

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16. Prior modifications to audit reports

The matters raised by the Auditor General with regards to the matters qualified have been prioritised by the Department. The Department has put systems in place to monitor matters raised by the Auditor General with particular reference to qualification issues and matters of emphasis. The Audit Intervention Plan and key control monitoring document have been developed. These are monitored closed by top management as they form part of standing agenda items in all management meetings. The Internal Audit Plan of the Department incorporates monitoring of the audit implementation plan and key control. Predetermined objectives are reviewed monthly by programme managers and quarterly by the extended management of the Department. In addition, the Department has established a system of evidence collection by which all source documents are stated and locations thereof are clearly stated.

The following table reflects all matters that gave rise to a qualification and matters of non-compliance raised by the Auditor General and progress made thus far in resolving them.

Nature of qualification Financial year in which it first arose

Progress made in clearing / resolving the matter

Commitments

The Department did not have adequate systems in place for the identification of and recognition of contracted commitments. Supporting documentation did not agree to individual amounts recorded on the commitment schedule, which resulted in commitments being overstated by R7,5 million.

2010/11 Commitments

1. Management has enhanced processes to ensure the information input to the LOGIS yields the correct output in the RR102 report.

2. Daily Keeping records of supporting documentations (commitment vouchers) to support the commitment schedule/ register by order printing clerk.

3. Monthly Reconciliation of commitments4. High level review by the Senior Manager: Procurement 5. Quarterly Review and sign off of Disclosure notes by

General Manager: SCM

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Nature of qualification Financial year in which it first arose


Lease CommitmentsThe Department did not have adequate systems in place to for the identification and recognition of contracted lease commitments. Lease payments according to the lease agreements did not agree to monthly payment amounts captured on the lease schedule which resulted in lease commitments being overstated by R15,5 million.

2010/111. Vendor contracts stored at head office and regions file all

lease agreements in start date order sequence.

2. The Assistant Managers: Vendors and Contracts reviews the filing system on a quarterly basis to confirm the all leaseagreementsarenumberedfiledsequentially;thatthenumbering sequence on the filing system agrees with the lease register. They identify any missing lease agreements and rectify.

3. A centralised lease register is in place which includes all district offices. It is maintained on an Excel spreadsheet with formulas to ensure the accuracy of the figures for the AFS. All formulas are protected to ensure that it is not tempered with and affect the integrity of the data.

4. Vendor and contract staff capture all details relating to the lease on the lease register.

5. In order to enhance the records of the finance leases, a form containing information on start and end dates and the rental amount has been designed and is completed when a cell phone or 3g card is issued.

6. The assistant manager vendor and contracts reviews the lease register on a monthly basis to confirm that all information is correctly captured and sign of the lease register as confirmation thereof.

7. The manager vendor and contracts consolidates the lease registers from districts and head office and reviews it for any discrepancies.

8.Theseniormanagervendorandcontractsperformsahighlevel review of the lease register and submit for disclosure on the IFS and AFS.

9. The General Manager: SCM will confirm that the figures are correctly captured on the AFS and also perform a high level review of the lease register. The lease register is signed of quarterly as evidence of being reviewed.

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Nature of matters of non-compliance Financial year in which it first arose


1. Annual Financial Statements, performance and annual performance reports

•Thefinancialstatementssubmittedforaudit were not prepared in accordance with the Departmental Financial Reporting Framework prescribed by National Treasury and supported by full and proper records as required by section 40(1)(a) and (b) of the PFMA. Material misstatements of current assets current liabilities and disclosure items identified by the auditors in the submitted financial statements were subsequently corrected and the supporting documents were subsequently provided, but the uncorrected material misstatements and supporting records that could not be provided resulted in financial statements receiving a qualified audit opinion.

•TheAccountingOfficerdidnotensurethatthe Department had and maintained an effective, efficient and transparent system of internal control regarding performance management, which described and represented how the Department’s process of performance planning, monitoring, measurement, review and reporting were conducted, organised and managed as requiredbysection38(1)(a)and(b)ofthePFMA.

2010/11 •AdetailedprojectplanforthepreparationofAnnualFinancial Statements, which clearly indicates key deliverables, key dates and responsible official. The plan was monitored by executive management, internal audit unit as well as the audit committee. It was also submitted to both the Provincial Treasury and the Auditor General.

•TheDepartmentalsoembarkedonreorganizationthrough proper placement of officials within the Financial Management Directorate to close the skills gap within the directorate. External support was sourced to provide assistance and transfer skills up to the end of the financial year up the Directorate.

•Predeterminedobjectivesarereviewedmonthlybyprogram managers and quarterly by the extended management of the department. In addition, the department has established a system of evidence collection by which all source documents are stated and locations thereof clearly stated.

2. Procurement and contract management •Personsintheserviceofthedepartment,

their partners and/or close family members had a private or business interest in contracts awarded by the Department failed disclose such interest as required by TR16A8.4(a).

•EmployeesoftheDepartmentperformedremunerative work outside their employment in the department without written permission from the relevant authority as required by section 30 of the Public Service Act.

•Goodsandserviceswithatransactionvalue between R10,000 and R500,000 were procured without obtaining written quotation from at least three different respective providers as per the requirements of SCM Regulations 17 (a) and (c).

2010/11 •TheDepartmentchecksallbidsforthepurposesofdeclared interest of officials against the companies that are appointed as service providers. To date no officials have been identified as doing business with the department without declaring interest. There are 3 officials whose spouses were found by the AG to be doing business with the Department however according to the Department’s records these officials had declared their interests. The information was forwarded to the AG during the audit process. It is the Department’s assumption that as far as officials doing remunerative work without permission the AG might have inferred to the abovementioned officials whose spouses are doing business with the Department.

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Nature of matters of non-compliance Financial year in which it first arose


3. Human resource management and compensation

•AnorganisationstructurebasedontheDepartment’s strategic plan was not in place as required by PSR 1/III/B2 (a).

•TheAccountingOfficerdidnotensurethatall leave taken employees were recorded accurately and in full as required by PSR 1/V/F(b)

•Employeeswereappointedwithoutfollowing a proper process to verify the claims made in their applications in contraventionofPRS1/VI/D.8.

2010/11 •TheprocessalignmentoftheDepartmentalstructuretothemandate including the strategic plan had been completed. A draft organisational structure which was developed with the assistance of DPSA and Office of the Premier and is in place and undergoing the approval process.

•Thedepartmentisintheprocessofintroducinganelectronic leave management system. Disciplinary measures are taken against supervisors who do not submit approved leave applications to the HRM unit within the prescribed time frame.

•ForfutureappointmentstheDepartmentwillembarkonthe verification of process immediately after short listing to ensure that at the time of appointments all claims by the prospective candidates have been verified.

4 Expenditure management •TheAccountingOfficerdidnottake

effective steps to prevent irregular and fruitless and wasteful expenditure, as per therequirementsofsection38(1)(c)(iii)ofthe PFMA and TR 9.1.1.

•Contractualobligationsandmoneyowedby the Department were not settled within 30 days or an agreed period, as required by section38(1)(f )ofthePFMAandTR8.2.3.

2010/11

2009/10

A committee has been set up to deal with the irregular expenditure. The committee analyses the irregular expenditure related transaction taking into account the motivation put forward and presented by the procuring entity and decide on what action to take. As a solution the Department has appointed an in-house service provider (Travel Agent) to deal with urgent travel and accommodation requirements as these are the main cause of irregular expenditure.

•Onsubmissionoftenderdocumentsbyprospectivesuppliersthe Department developed a check list of all documents required for processing of payments to ensure that there are no delays in payments once the tender has been awarded and invoice is issued. The department also ensures that there is adequate funding for all contractual obligations.

17. Exemptions and deviations received from the National Treasury

There were no exemptions and deviations received for the period under review.

18. Interim Financial Statements

The interim financial statements were issued for different quarters on the financial year that represented fair view of the financial performance, financial position, changes in nest assets and cash flows of the Department at the end of each quarter. The interim financial statements were prepared on a modified cash basis of accounting and the National Treasury determined framework as prescribed in the PFMA and Treasury Regulations and the relevant guidelines issued by the National Treasury. These were also submitted to the Provincial Treasury on a quarterly basis.

19. Other

Cumulative effect of HROPT

The overpayment that resulted from the implementation of HROPT has not been recovered due to the fact that the matter has been taken to court by the Labour Union. The current cumulative amount stands at R199 million as at 31 March 2013.

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Occupational Specific Dispensation (OSD)

The OSD Phase 1 and 2 for Research Technicians has not been implemented as yet due to financial constraints experienced to date, hence it is disclosed as other employee benefits.

20. Approval

TheAnnualFinancialStatementssetoutonpages204to286havebeenapprovedbytheAccountingOfficer(s).

........................................................................L NgadaActing: Superintendent-General31 May 2013

124



REPORT OF THE AUDITOR-GENERAL TO THE EASTERN CAPE PROVINCIAL LEGISLATURE ON VOTE NO. 8: DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM

REPORT ON THE FINANCIAL STATEMENTS

Introduction1. I have audited the financial statements of the Department of Rural Development and Agrarian Reform set out on pages

129to178,whichcomprisetheappropriationstatement,thestatementoffinancialpositionasat31March2013,thestatement of financial performance, and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting officer’s responsibility for the financial statements2. The accounting officer is responsible for the preparation of these financial statements in accordance with the

Departmental financial reporting framework prescribed by National Treasury and the requirements of the Public Finance Management Act, 1999 (Act No.1 of 1999) (PFMA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in

accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the General Notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

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

Basis for qualified opinionCommitments - corresponding figure6. Thecorrespondingfigure forcommitments isstatedatR21,4million innote18totheannualfinancialstatements.

During 2012 I was unable to obtain sufficient appropriate audit evidence of commitments made. I was unable to confirm the commitments by alternative means. Consequently, I was unable to determine whether any adjustment to the prior year commitments was necessary. My audit opinion on the financial statements for the period ended 31 March 2012 was modified accordingly. My opinion on the current period’s financial statements is also modified because of the possible effect of this matter on the comparability of the current period’s figures.

Qualified opinion7. In my opinion, except for the possible effects on the corresponding figures of the matter described in the Basis for

qualified opinion paragraph, the financial statements present fairly, in all material respects, the financial position of the Department of Rural Development and Agrarian Reform as at 31 March 2013, and its financial performance and cash flows for the year then ended in accordance with the Departmental financial reporting framework prescribed by the National Treasury and the requirements of the PFMA.

REPORT OF THE AUDITOR-GENERAL for the year ended 31 March 2013

125



Emphasis of matter8. Idrawattentiontothematterbelow.Myopinionisnotmodifiedinrespectofthismatter.

Material under-spending of the vote9. As disclosed in the appropriation statement, the department has materially underspent its allocated budget by R61,9

million. The underspending mainly relates to the following:• Programme1Administration–underspentbyR14,2million• Programme2Sustainableresourcemanagement–underspentbyR16million• Programme3Farmersupportanddevelopment–underspentbyR19,9million.

10. The underspending is mainly due to delays in the planning, design and implementation of infrastructure projects as well as delays in the filling of vacant posts.

Additional matters11. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Financial reporting framework12. The financial reporting framework prescribed by the National Treasury and applied by the department is a compliance

framework. The wording of our opinion on a compliance framework should reflect that the financial statements have been prepared in accordance with this framework and not that they “present fairly”. Section 20(2)(a) of the PAA, however, requires us to express an opinion on the fair presentation of the financial statements. The wording of our opinion therefore reflects this requirement.

Unaudited supplementary schedules13.Thesupplementaryannexuressetoutonpages179to186donotformpartofthefinancialstatementsandarepresented

as additional information. I have not audited these schedules and accordingly I do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS14. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to

performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives15. I performed procedures to obtain evidence of the usefulness and reliability of the information in the annual performance

report as set out on pages 27 to 72 of the annual report.

16. The reported performance against predetermined objectives was evaluated against the overall criteria of usefulness and reliability. The usefulness of information in the annual performance report relates to whether it is presented in accordance with the National Treasury’s annual reporting principles and whether the reported performance is consistent with the planned objectives. The usefulness of information further relates to whether indicators and targets are measurable (i.e. well defined, verifiable, specific, measurable and time bound) and relevant as required by the National Treasury Framework for managing programme performance information.

The reliability of the information in respect of the selected programmes is assessed to determine whether it adequately reflects the facts (i.e. whether it is valid, accurate and complete).

17. There were no material findings on the annual performance report concerning the usefulness of the information.

18.Thematerialfindingsareasfollows:

Reliability of information

Programme 3: Farmer support development


126



Reported performance not reliable19. The National Treasury FMPPI requires that institutions should have appropriate systems to collect, collate, verify and

store performance information to ensure valid, accurate and complete reporting of actual achievements against planned objectives, indicators and targets.

20. Significantly important targets with respect to Programme 3: Farmer Support Development are materially misstated by37%.

21. This was due to the lack of standard operating procedures for the accurate recording of actual achievements as well as monitoring of the completeness of source documentation in support of actual achievements.

Programme 4: Veterinary services

Reported performance not reliable 22. The National Treasury FMPPI requires that institutions should have appropriate systems to collect, collate, verify and


23.SignificantlyimportanttargetswithrespecttoProgramme4:VeterinaryServicesaremateriallymisstatedby39%.


Programme 7: Structured agricultural education and training

Reported performance not reliable 25. The National Treasury FMPPI requires that institutions should have appropriate systems to collect, collate, verify and


26. The significantly important target relating to the number of rural development vocation trainees benefiting from the rural community skills programme was materially misstated.


Additional matter

I draw attention to the following matter below. This matter does not have an impact on the predetermined objectives audit findings reported above.

Achievement of planned targets28.Only72%oftheplannedtargetswereachievedduringtheyearunderreview.Thiswasmainlyduetounder-spending

of the allocated budget caused by delays relating to the planning, design and implementation of infrastructure projects as well as delays in the filling of vacant posts.

Compliance with laws and regulations29. I performed procedures to obtain evidence that the entity had complied with applicable laws and regulations regarding

financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations, as set out in the General Notice issued in terms of the PAA. are as follows:

Strategic planning and performance management30. The department did not maintain effective, efficient and transparent systems of financial and risk management and

internalcontrolsasrequiredbysection38(1)(a)(i)ofthePFMA.


127



Annual financial statements, performance and annual report31. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting

framework and/or supported by full and proper records as required by section 40(1)(a) of the PFMA. 32. Material misstatements identified by the auditors in the submitted financial statements were not adequately corrected

and/or the supporting records could not be provided subsequently, which resulted in the financial statements receiving a qualified audit opinion.

Expenditure management33. The accounting officer did not take effective steps to prevent irregular and fruitless and wasteful expenditure, as required

bysection38(1)(c)(ii)ofthePFMAandTreasuryRegulation(TR)9.1.1.Asaresult,irregularexpenditureamountingtoR29,4 million was incurred which relates to contravention of laws and regulations for supply chain management and compensation of employees.

Human resource management and compensation34. An organisational structure based on the department’s strategic plan was not in place as required by Public Service

Regulation (PSR) 1/III/B.2 (a).

35.Employeesreceivedovertimecompensationinexcessof30%oftheirmonthlysalaries, incontraventionofPSRI/V/D.2(d).

36. Employees were compensated for overtime work which was not approved in advance as required by PSR 1/V/D.2(c).

37. Employees were appointed without following a proper process to verify the claims made in their applications in contraventionofPSR1/VII/D.8.

Procurement and contract management38.Employeesofthedepartmentperformedremunerativeworkoutsidetheiremploymentinthedepartmentwithout

written permission from the relevant authority, as required by section 30 of the Public Service Act 1994 (Proclamation No.103 of 1994) as amended (PSA).

39. Goods and services with a transaction value below R500 000 were procured without obtaining the required price quotations, as required by Treasury Regulation 16A6.1.

Revenue management40. Interest was not charged on debts at the approved rates determined by the Minister of Finance, as required by TR

11.5.1.

Internal control41. I considered internal control relevant to my audit of the financial statements, the annual performance report and

compliance with laws and regulations. The matters reported below under the fundamentals of internal control are limited to the significant deficiencies that resulted in the basis for the qualified opinion, the findings on the annual performance report and the findings on compliance with laws and regulations included in this report.

Leadership42. The oversight process of leadership was not effective in that it did not monitor the implementation of the actions plans

to address audit findings and implementation of recommendations to prevent repeat audit findings relating to the annual financial statements, annual performance report and compliance with laws and regulations.

43. There is a lack of standard operating procedures for the accurate recording of actual achievements as well as monitoring of the completeness of source documentation in support of actual achievements.

44. Leadership did not implement effective human resource management to ensure that adequate and sufficiently skilled resources are in place and that performance is monitored since critical senior management positions in the finance department remained vacant during the year.


128



45. A number of policies and procedures that were developed during the previous financial year had still not been approved and implemented as at 31 March 2013.

46. User access controls for the transversal IT systems were not approved and as result formal processes were not followed to terminate user accounts and users’ access rights were not monitored.

Financial and performance management47. The financial statements and annual performance report submitted for audit purposes were not appropriately reviewed

for accuracy and completeness, resulting in the identification of numerous audit adjustments. Daily and monthly controls and reconciliations were not adequately performed to prevent or detect errors in a timely manner. A number of the disclosure items within the accounting records are only compiled after year-end and finalised close to the submission date, with the result that an independent review of the financial statements and performance information cannot be performed effectively.

48.Managementdidnotproperlyreviewandmonitortheentity’scompliancewith lawsandregulations.Asaresult,anumber of instances of non-compliance were identified during the audit.

Governance49. The number of investigations into alleged fraudulent activities that has been completed or were still in progress at year-

end, however, cast doubt over the effectiveness and adequate implementation of the fraud prevention plan. The risk assessment process did not include the operational risks relating to key IT areas.

50. Internal audit did not have sufficient staff to carry out its responsibilities effectively throughout the year, including review of the annual financial statements and annual report. The shortfall in capacity was not offset by other means, i.e. contracting in from audit firms or secondment from other internal audit sections.

OTHER REPORTS

Investigations51. During the year under review 23 instances of alleged transgressions requiring investigations were reported to the

department. At the reporting date seven investigations had been concluded, 13 were still in progress and three still had to commence. These allegations related, amongst others, to fraud and corruption, procurement, nepotism, travel claims and the payroll.

East London31 July 2013


129



App

ropr

iati

on p

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rogr

amm

e

2012

/13

2011

/12

APP

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STA

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Adj

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pria

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Shif

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of

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sVi

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Fina

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Vari

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Expe

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as %

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final

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Fina

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ndit

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R’00

0R’

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R’00

0R’

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R’00

0R’

000

%R’

000

R’00

0

1. A

dmin

istr

atio

n

Curr

ent p

aym

ent

418,098

-(2

5,97

6)39

2,12

2378,706

13,0

1696

.642

0,92

742

1,66

1

Tran

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12,5

49-

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,549

13,2

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105.

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13,998

Paym

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3,63

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23,9

7627

,612

26,082

1,53

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.53,

591

2,55

5

2. S

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Man

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Curr

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129,

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-(821)

128,729

119,

326

9,40

392

.7124,628

119,

323

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2,52

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-2,

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2,52

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2,40

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Paym

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26,2

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,264

19,6

226,

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74.7

5,758

2,72

7

3. F

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uppo

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Dev

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men

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Curr

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380,420

-2,481

382,901

373,870

9,03

197

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7,07

541

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Tran

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--

--

--

-9,

516

12,3

16

Paym

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78,060

-1,686

79,7

4668,927

10,819

86.4

1,827

1,94

0

4. V

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es

Curr

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229,

079

-(9

2)228,987

226,548

2,43

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216,

127

206,485

Tran

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--

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7

Paym

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Paym

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-3,

930

APPROPRIATION STATEMENT for the year ended 31 March 2013

130



App

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2012

/13

2011

/12

APP

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as %

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Fina

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R’00

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5. T

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Res

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Curr

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78,035

-(3

7)77,998

77,817

181

99.8

81,697

72,6

17

Tran

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Curr

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Paym

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14,286

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Stat

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1,65

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131



2012

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2011

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133



Stat

utor

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ppro

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2012

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2012

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Prog

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Tota

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9


134



2012

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2011

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11,7

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Paym

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Paym

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232

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135



2012

/13

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--

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136



2012

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2012

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2012

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Paym

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139



2012

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nal

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ropr

iati

onA

ctua

l Ex

pend

itur

eVa

rian

ceEx

pend

itur

e as

% o

f fina

l ap

prop

riat

ion

Fina

l A

ppro

pria

tion

Act

ual

expe

ndit

ure

FARM

ER S

UPP

ORT

AN

D D

EVEL

OPM

ENT

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

Curr

ent p

aym

ents

Com

pens

atio

n of

em

ploy

ees

249,846

-4,

550

254,

396

257,

477

(3,081)

101.

225

2,59

6246,892

Goo

ds a

nd s

ervi

ces

130,

574

-(2,068)

128,506

116,

393

12,1

1390

.617

4,03

916

4,12

1

Inte

rest

and

rent

on

land

--

--

--

--

-

Tran

sfer

s an

d su

bsid

ies

to:

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts-

--

--

--

-2,800

Hou

seho

lds

--

--

--

-9,

516

9,51

6

Paym

ent

for

capi

tal a

sset

s

Build

ings

and

oth

er fi

xed

stru

ctur

es72

,375

--

72,3

7562,587

9,788

86.5

--

Mac

hine

ry a

nd e

quip

men

t5,685

-1,685

7,37

06,

340

1,03

086.0

2,26

71,

940

Tota

l45

8,48

0-

4,16

746

2,64

744

2,79

719

,850

95.7

438,

418

425,

269

140



2012

/13

2011

/12

Det

ail p

er s

ub-p

rogr

amm

e

Adj

uste

d A

ppro

pria

tion

Shif

ting

of

Fu

nds

Vire

men

tFi

nal

App

ropr

iati

onA

ctua

l Ex

pend

itur

eVa

rian

ceEx

pend

itur

e as

% o

f fina

l ap

prop

riat

ion

Fina

l A

ppro

pria

tion

Act

ual

expe

ndit

ure

VET

ERIN

ARY

SER

VIC

ESR’

000

R’00

0R’

000

R’00

0R’

000

R’00

0%

R’00

0R’

000

4.1

Ani

mal

Hea

lth

Curr

ent p

aym

ent

202,

252

-(689)

201,

563

199,877

1,686

99.2

188,963

181,405

Tran

sfer

s an

d su

bsid

ies

--

--

--

-3,

197

3,19

7

Paym

ent f

or c

apita

l ass

ets

5,52

3-

259

5,782

3,983

1,79

968.9

1,04

2887

Pay

men

t for

fina

ncia

l ass

ets

--

--

--

--

3,93

0

Expo

rt C

ontr

ol/D

isea

seSu

rvei

llanc

eCu

rren

t pay

men

t5,

914

-(1

57)

5,75

75,408

349

93.9

6,21

95,

367

Tran

sfer

s an

d su

bsid

ies

--

--

--

--

-

Paym

ent f

or c

apita

l ass

ets

96-

4714

323

120

16.1

9591

4.3

Vet

erin

ary

Publ

ic H

ealth

Curr

ent p

aym

ent

8,824

-62

69,

450

9,20

324

797

.49,

251

8,592

Tran

sfer

s an

d su

bsid

ies

--

--

--

--

-

Paym

ent f

or c

apita

l ass

ets

20-

-20

173

85.0

--

4.4

Vet

erin

ary

Lab

Serv

ices

Curr

ent p

aym

ent

12,089

-128

12,2

1712

,060

157

98.7

11,6

9411

,121

Paym

ent f

or c

apita

l ass

ets

155

--

155

138

1789.0

123

118

234,873

214

235,087

230,

709

4,378

98.1

220,584

214,708


141



2012

/13

2011

/12

Econ

omic

cla

ssifi

cati

onA

djus

ted

App

ropr

iati

onSh

ifti

ng

of

Fund

s

Vire

men

tFi

nal

App

ropr

iati

onA

ctua

l Ex

pend

itur

eVa

rian

ceEx

pend

itur

e as

% o

f fina

l ap

prop

riat

ion

Fina

l A

ppro

pria

tion

Act

ual

expe

ndit

ure

VET

ERIN

ARY

SER

VIC

ESR’

000

R’00

0R’

000

R’00

0R’

000

R’00

0%

R’00

0R’

000

Curr

ent p

aym

ents

Com

pens

atio

n of

em

ploy

ees

187,51

2-

214

187,726

187,693

3310

0.0

185,226

175,783

Goo

ds a

nd s

ervi

ces

41,5

67-

(306

)41

,261

39,2

512,

010

95,1

30,837

30,7

02

Tran

sfer

s an

d su

bsid

ies

to:

Hou

seho

lds

--

--

--

-3,

197

3,19

7

Paym

ent

for

capi

tal a

sset

s

Mac

hine

ry a

nd e

quip

men

t849

-30

61,

155

591

564

51.2

638

591

Biol

ogic

al a

sset

s4,

945

--

4,94

53,

569

1,37

672

.2686

505

Paym

ent f

or fi

nanc

ial a

sset

s-

--

--

--

-3,

930

Tota

l23

4,87

3-

214

235,

087

231,

104

3,98

398

.322

0,58

421

4,70

8


142



2012

/13

2011

/12

Det

ail p

er s

ub-p

rogr

amm

e

Adj

uste

d A

ppro

pria

tion

Shif

ting

of

Fu

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Vire

men

tFi

nal

App

ropr

iati

onA

ctua

l Ex

pend

itur

eVa

rian

ceEx

pend

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e as

% o

f fina

l ap

prop

riat

ion

Fina

l A

ppro

pria

tion

Act

ual

expe

ndit

ure

TECH

NIC

AL

RESE

ARC

H A

ND

D

EVEL

OPM

ENT

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

5.1

Res

earc

h

Curr

ent p

aym

ent

73,7

04-

250

73,9

5474

,296

(342

)10

0.5

78,183

69,1

53

Paym

ent f

or c

apita

l ass

ets

1,20

4-

-1,

204

1,13

470

94.2

200

153

Pay

men

t for

fina

ncia

l ass

ets

--

--

--

--

-

5.2

Info

rmat

ion

Serv

ices

Curr

ent p

aym

ent

3,628

-(287)

3,34

12,830

511

84.7

3,16

22,

735

Paym

ent f

or c

apita

l ass

ets

--

3737

361

97.3

--

5.3

Infra

stru

ctur

e Su

ppor

t

Se

rvic

eCu

rren

t pay

men

t70

3-

-70

369

112

98.3

352

729

Paym

ent f

or c

apita

l ass

ets

--

--

--

-1,

140

1,287

Tota

l79

,239

--

79,2

3978

,987

252

99.7

83,0

3774

,057


143



2012

/13

2011

/12

Econ

omic

cla

ssifi

cati

onA

djus

ted

App

ropr

iati

onSh

ifti

ng

of

Fund

s

Vire

men

tFi

nal

App

ropr

iati

onA

ctua

l Ex

pend

itur

eVa

rian

ceEx

pend

itur

e as

% o

f fina

l ap

prop

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ion

Fina

l A

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tion

Act

ual

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ure

TECH

NIC

AL

RESE

ARC

H A

ND

D

EVEL

OPM

ENT

R’00

0R’

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R’00

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R’00

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000

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000

R’00

0

Curr

ent p

aym

ents

Com

pens

atio

n of

em

ploy

ees

68,967

--

68,967

68,514

453

99.3

73,6

1265

,054

Goo

ds a

nd s

ervi

ces

9,068

-(3

7)9,

031

9,30

4(2

73)

103.

07.895

7,56

3

Tran

sfer

s an

d su

bsid

ies

to:

Hou

seho

lds

--

3737

-37

--

-

Paym

ent

for

capi

tal a

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s

Mac

hine

ry a

nd e

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men

t99

4-

-99

499

7(3

)10

0.3

1,35

01,

299

Biol

ogic

al a

sset

s21

0-

-21

017

238

81.9

180

141

Tota

l79

,239

--

79,2

3978

,987

252

99.7

83,0

3774

,057

2012

/13

2011

/12

Det

ail p

er s

ub-p

rogr

amm

e

Adj

uste

d A

ppro

pria

tion

Shif

ting

of

Fu

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Vire

men

tFi

nal

App

ropr

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onA

ctua

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pend

itur

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rian

ceEx

pend

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e as

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f fina

l ap

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Fina

l A

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Act

ual

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ndit

ure

AG

RICU

LTU

RAL

ECO

NO

MIC

SR’

000

R’00

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000

R’00

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000

R’00

0%

R’00

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000

6.1

M

arke

ting

Serv

ices

Curr

ent p

aym

ent

7,698

-38,640

46,338

45,3

52986

97.9

7,36

16,

431

Tran

sfer

s an

d su

bsid

ies

180,757

-(4

0,69

9)140,058

140,058

-10

078,302

78,302

Paym

ent f

or c

apita

l ass

ets

--

159

159

8673

54.1

4545

6.2

Mac

ro-E

cono

mic

and

S

tatis

tics

Curr

ent p

aym

ent

22,5

35-

(1,4

41)

21,0

9419

,904

1,19

094

.419

,327

19,0

10

Tran

sfer

s an

d su

bsid

ies

--

--

--

--

125

Paym

ent f

or c

apita

l ass

ets

293

-(1

59)

134

7856

58.2

70-

Tota

l21

1,28

3-

(3,5

00)

207,

783

205,

478

2,30

598

.910

5,10

510

3,91

3


144



2012

/13

2011

/12

Econ

omic

cla

ssifi

cati

onA

djus

ted

App

ropr

iati

onSh

ifti

ng

of

Fund

s

Vire

men

tFi

nal

App

ropr

iati

onA

ctua

l Ex

pend

itur

eVa

rian

ceEx

pend

itur

e as

% o

f fina

l ap

prop

riat

ion

Fina

l A

ppro

pria

tion

Act

ual

expe

ndit

ure

AG

RICU

LTU

RAL

ECO

NO

MIC

SR’

000

R’00

0R’

000

R’00

0R’

000

R’00

0%

R’00

0R’

000

Curr

ent p

aym

ents

Com

pens

atio

n of

em

ploy

ees

20,847

-(1

,600

)19

,247

18,344

903

95.3

17,4

1616,868

Goo

ds a

nd s

ervi

ces

9,386

-38,799

48,185

46,9

121,

273

97.4

9,21

28,573

Tran

sfer

s an

d su

bsid

ies

to:

Dep

artm

enta

l Age

ncie

s an

d A

ccou

nts

169,

757

-(4

0,69

9)129,058

129,058

-10

0.0

78,302

78,302

Hou

seho

lds

11,0

00-

-11

,000

11,0

00-

100.

0-

-

Paym

ent

for

capi

tal a

sset

s

Mac

hine

ry a

nd e

quip

men

t29

3-

-29

316

412

956

.017

517

0

Tota

l21

1,28

3-

(3,5

00)

207,

783

205,

478

2,30

598

.910

5,10

510

3,91

3

2012

/13

2011

/12

Det

ail p

er s

ub-p

rogr

amm

e

Adj

uste

d A

ppro

pria

tion

Shif

ting

of

Fu

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men

tFi

nal

App

ropr

iati

onA

ctua

l Ex

pend

itur

eVa

rian

ceEx

pend

itur

e as

% o

f fina

l ap

prop

riat

ion

Fina

l A

ppro

pria

tion

Act

ual

expe

ndit

ure

7.ST

RUCT

URE

D A

GRI

CULT

URA

L TR

AIN

ING

R’00

0R’

000

R’00

0R’

000

R’00

0R’

000

%R’

000

R’00

0

7.1

Ter

tiary

Edu

catio

n

Tran

sfer

s an

d su

bsid

ies

29,9

06-

1,90

031,806

31,806

-10

026

,029

26,0

29

Furt

her E

duca

tion

and

Tr

aini

ng

Curr

ent p

aym

ent

58,352

-(2

)58,350

57,0

501,

300

97.8

81,417

71,1

45

Tran

sfer

s an

d su

bsid

ies

--

--

--

--

750

Paym

ent f

or c

apita

l ass

ets

14,286

-2

14,288

10,7

453,

543

75.2

5,46

14,

329

Tota

l10

2,54

4-

1,90

010

4,44

499

,601

4,84

395

.411

2,90

710

2,25

3


145



2012

/13

2011

/12

Econ

omic

cla

ssifi

cati

onA

djus

ted

App

ropr

iati

onSh

ifti

ng

of

Fund

s

Vire

men

tFi

nal

App

ropr

iati

onA

ctua

l Ex

pend

itur

eVa

rian

ceEx

pend

itur

e as

% o

f fina

l ap

prop

riat

ion

Fina

l A

ppro

pria

tion

Act

ual

expe

ndit

ure

STRU

CTU

RED

AG

RICU

LTU

RAL

TRA

ININ

GR’

000

R’00

0R’

000

R’00

0R’

000

R’00

0%

R’00

0R’

000

Curr

ent p

aym

ents

Com

pens

atio

n of

em

ploy

ees

43,4

59-

-43

,459

42,0

741,385

96.8

44,887

38,451

Goo

ds a

nd s

ervi

ces

14,893

-(2

)14,891

14,9

76(85)

100.

636

,530

32,6

94

Tran

sfer

s an

d su

bsid

ies

to:

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts-

--

--

--

-75

0

Non

-pro

fit in

stitu

tions

29

,906

-1,

900

31,806

31,806

-10

0.0

26,0

2926

,029

Paym

ent

for

capi

tal a

sset

s

Build

ings

and

oth

er fi

xed

stru

ctur

es11,918

-2

11,9

208,919

3,00

174.8

--

Mac

hine

ry a

nd e

quip

men

t2,368

--

2,368

1,826

542

77.1

5,46

14,

329

Tota

l10

2,54

4-

1,90

010

4,44

499

,601

4,84

395

.411

2,90

710

2,25

3


146



1. Explanations of material variances from Amounts Voted (after Virement):

1.1 Per programme Final Appropriation

Actual Expenditure

Variance R’000 Variance as a % of Final Appropriation

1. Administration 432,283 418,049 14,234 3%

The budget of this programme has been underspent by R14.2 million. The bulk of this under expenditure relates to Goods and Services as a result of interventions for the automation of the finance process that could not be carried out as planned as well as delays in invoices from the Department of transport for the fleet expenditure.

2. Sustainable Resource Management 157,518 141,473 16,045 10%

The under-expenditure of R2.7 million in this programme relates to Compensation of Employees due to delays in filling of prioritised posts. Under-expenditure on goods and services of R6 million is as a result of budget for planning and designs for infrastructure projects which could not be implemented as planned. An amount of R4.3 million is attributed to capital expenditure on GIS (Maproom equipment) that was not delivered on time by the supplier.

3. Farmer Support and Development 462,647 442,797 19,850 4%

The budget of this programme has been underspent by R19.9 million. The main causes of this under expenditure are delays in the implentation of infrastructure projects, funded mainly through CASP and Letsema Conditional Grants.

4. Veterinary Services 235,087 230,709 4,378 2%

The budget of this programme has been underspent by R4.0 million. The main cause of this under expenditure is the decline in Avian Influenza and Newcastle disease surveillance as a result of fewer farms registered.

5. Technical Research and Development 79,239 78,987 252 0%

The budget of this programme has been well spent such that the under expenditure registered was not material.

6. Agricultural Economics 207,783 205,478 2,305 1%

The budget of this programme has been under spent by R2.3 million. The bulk of this under expenditure relates mainly to Goods and Services as mega projects, like the Grahamstown Abattoir could not progress to the anticipated levels.

7. Structured Agricultural Training 104,444 99,601 4,843 5%

ThebudgetofthisprogrammehasbeenunderspentbyR4.8million.InthemainthisunderexpenditurerelatestoGoodsandServices due to incomplete projects by contractors at Tsolo and Fort Cox Colleges.

NOTESTOTHEAPPROPRIATIONSTATEMENTfortheyearended31March2013

147



1.2 Per economic classification Final Appropriation

Actual Expenditure

Variance Variance as a % of Final Appropriation

R’000 R’000 R’000

Current payments 1,336,521 1,298,576 74,014

Compensation of employees 909,001 905,688 2,886 0%

Goods and services 427,520 392,886 71,128 17%

Transfers and subsidies 186,975 187,650 (675)

Provinces and municipalities

Departmental agencies and accounts 129,058 129,058 - 0%

Non-profit institutions 31,806 31,806 - 0%

Households 26,111 26,786 (675) (3%)

Gifts and donations - - - -

Payments for capital assets 155,504 130,855 24,649

Buildings and other fixed structures 100,392 84,575 15,817 16%

Machinery and equipment 49,958 42,552 7,406 15%

Biological assets 5,155 3,741 1,414 27%

1.3 Per conditional grant Final Appropriation

Actual Expenditure

Variance Variance as a % of Final Appropriation

R’000 R’000 R’000 R’000

Agriculture, Forestry and Fisheries 263,096 233,432 29,664

Ilima/Letsema Projects 43,980 38,891 5,089 12%

Land Care P Grt:PovRe&Inf 16,823 15,012 1,811 11%

ComprAgricSuppPrGrnt 196,242 173,869 22,373 11%

EPWP 4,000 4,000 - 0%

Disaster Management 2,051 1,660 391 19%

NOTESTOTHEAPPROPRIATIONSTATEMENTfortheyearended31March2013

148



PERFORMANCE Note 2012/13 2011/12

R’000 R’000

REVENUE

Annual appropriation 1 1,679,001 1,531,407

Statutory appropriation 2 1,652 1,569

Departmental revenue 3 83,222 3,166

TOTAL REVENUE 1,763,875 1,536,142

EXPENDITURE

Current expenditure

Compensation of employees 4 905,688 854,908

Goods and services 5 392,888 474,348

Total current expenditure 1,298,576 1,329,256

Transfers and subsidies

Transfers and subsidies 7 187,650 136,802

Total transfers and subsidies 187,650 136,802

Expenditure for capital assets

Tangible capital assets 8 130,868 14,267

Software and other intangible assets 8 - 178

Total expenditure for capital assets 130,868 14,445

Payments for financial assets 6 - 3,930

TOTAL EXPENDITURE 1,617,094 1,484,433

SURPLUS/(DEFICIT) FOR THE YEAR 146,781 51,709

Reconciliation of Net Surplus/(Deficit) for the year

Voted funds 63,559 48,543

Annual appropriation - -

Departmental revenue and NRF Receipts 83,222 3,166

SURPLUS/(DEFICIT) FOR THE YEAR 146,781 51,709

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POSITION Note 2012/13 2011/12

R’000 R’000

ASSETS

Current assets 63,138 101,544

Unauthorised expenditure 9 47,461 83,028

Receivables 10 15,677 18,516

TOTAL ASSETS 63,138 101,544

LIABILITIES

Current liabilities 63,138 101,544

Voted funds to be surrendered to the Revenue Fund 11 59,337 60,321

Departmental revenue to be surrendered to the Revenue Fund 12 1,470 1,454Bank overdraft 13 517 36,808

Payables 14 1,814 2,961

TOTAL LIABILITIES 63,138 101,544

NET ASSETS - -

Represented by:

Capitalisation reserve - -

Recoverable revenue - -

Retained funds - -

Revaluation reserves - -

TOTAL - -

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CASH FLOW Note 2012/13 2011/12

R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 1,704,170 1,489,899

Annual appropriated funds received 1.1 1,614,435 1,480,296

Statutory appropriated funds received 2 1,652 1,569

Departmental revenue received 3 88,083 8,034

Net (increase)/decrease in working capital 37,282 19,562

Surrendered to Revenue Fund (90,171) (9,040)

Current payments (1,298,576) (1,329,256)

Payments for financial assets - (3,930)

Transfers and subsidies paid (187,650) (136,802)

Net cash flow available from operating activities 15 165,055 30,433

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 8 (130,868) (14,445)

Proceeds from sale of capital assets 3.4 2,104 1,765

(Increase)/decrease in other financial assets

Net cash flows from investing activities (128,764) (12,680)

CASH FLOWS FROM FINANCING ACTIVITIES

Distribution/dividend received - -

Increase/(decrease) in net assets - -

Net cash flows from financing activities - -

Net increase/(decrease) in cash and cash equivalents 36,291 17,753

Cash and cash equivalents at beginning of period (36,808) (54,561)

Cash and cash equivalents at end of period 16 (517) (36,808)

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The Financial Statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated. However, where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the Financial Statements and to comply with the statutory requirements of the Public Finance Management Act, Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the Act and the Division of Revenue Act, Act 1 of 2010.

1. Presentation of the Financial Statements

1.2 Basis of preparation

The financial statements have been prepared on a modified cash basis of accounting.

On this basis, the effects of transactions and other events are recognised in the financial records when the resulting cash is received or paid. The “modification” results from the recognition of certain near-cash balances in the financial statements as well as the revaluation of foreign investments and loans and the recognition of resulting revaluation gains and losses.

In addition supplementary information is provided in the disclosure notes to the financial statements where it is deemed to be useful to the users of the financial statements.

1.2 Presentation currency

All amounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the Department.

1.3 Rounding

Unless otherwise stated all financial figures have been rounded to the nearest one thousand Rand (R’000).

1.4 Comparative figures

Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements. However this does not apply to finance and operating leases.

1.5 Comparative figures - Appropriation Statement

A comparison between actual amounts and final appropriation per major classification of expenditure is included in the Appropriation Statement.

2. Revenue

2.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the financial records on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the financial records on the date the adjustments become effective.

Unexpended appropriated funds are surrendered to the Provincial Revenue Fund. Any amounts owing to the Provincial Revenue Fund at the end of the financial year are recognised as payable in the statement of financial position.

Any amount due from the Provincial Revenue Fund at the end of the financial year is recognised as a receivable in the statement of financial position.

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2.2 Departmental revenue

All departmental revenue is recognised in the statement of financial performance when received and is subsequently paid into the Provincial Revenue Fund, unless stated otherwise.

Any amount owing to the Provincial Revenue Fund at the end of the financial year is recognised as a payable in the statement of financial position.

No accrual is made for amounts receivable from the last receipt date to the end of the reporting period. These amounts are however disclosed in the disclosure notes to the annual financial statements.

3. Expenditure

3.1 Compensation of employees

3.1.1Salariesandwages

Salaries and wages are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

Other employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements at its face value and are not recognised in the statement of financial performance or position.

Employeecostsarecapitalisedtothecostofacapitalprojectwhenanemployeespendsmorethan50%ofhis/hertimeonthe project. These payments form part of expenditure for capital assets in the statement of financial performance.

3.1.2Socialcontributions

Employer contributions to post employment benefit plans in respect of current employees are expensed in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). No provision is made for retirement benefits in the financial statements of the Department. Any potential liabilities are disclosed in the financial statements of the National Revenue Fund and not in the financial statements of the employer department. Employer contributions made by the Department for certain of its ex-employees (such as medical benefits) are classified as transfers to households in the statement of financial performance.

3.2 Goods and services

Payments made during the year for goods and/or services are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

The expense is classified as capital if the goods and/or services were acquired for a capital project or if the total purchase price exceeds the capitalisation threshold (currently R5, 000). All other expenditures are classified as current.

Rental paid for the use of buildings or other fixed structures is classified as goods and services and not as rent on land.

3.3 Interest and rent on land

Interest and rental payments are recognised as an expense in the statement of financial performance when the final authorisation for payment is effected on the system (by no later than 31 March of each year). This item excludes rental for the use of buildings or other fixed structures. If it is not possible to distinguish between payment for the use of land and the fixed structures on it, the whole amount should be recorded under goods and services.


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3.4 Payments for financial assets

Debts are written off when identified as irrecoverable. Debts written-off are limited to the amount of savings and/or under-spending of appropriated funds. The write off occurs at year-end or when funds are available. No provision is made for irrecoverable amounts but an estimate is included in the disclosure notes to the financial statements.

All other losses are recognised when authorisation has been granted for the recognition thereof.

3.5 Transfers and subsidies

Transfers and subsidies are recognised as an expense when the final authorisation for payment is effected on the system (by no later than 31 March of each year).

3.6 Unauthorised expenditure

When confirmed unauthorised expenditure is recognised as an asset in the statement of financial position until such time as the expenditure is either approved by the relevant authority, recovered from the responsible person or written off as irrecoverable in the statement of financial performance. Unauthorised expenditure approved with funding is derecognised from the statement of financial position when the unauthorised expenditure is approved and the related funds are received. Where the amount is approved without funding it is recognised as expenditure in the statement of financial performance on the date stipulated in the Act.

3.7 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recognised as expenditure in the statement of financial performance according to the nature of the payment and not as a separate line item on the face of the statement. If the expenditure is recoverable it is treated as an asset until it is recovered from the responsible person or written off as irrecoverable in the statement of financial performance.

3.8 Irregular expenditure

Irregular expenditure is recognised as expenditure in the statement of financial performance. If the expenditure is not condoned by the relevant authority it is treated as an asset until it is recovered or written off as irrecoverable.

4. Assets

4.1 Cash and cash equivalents

Cash and cash equivalents are carried in the statement of financial position at cost. Bank overdrafts are shown separately on the face of the statement of financial position. For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.

4.2 Other financial assets

Other financial assets are carried in the statement of financial position at cost.

4.3 Receivables

Receivables included in the statement of financial position arise from cash payments made that are recoverable from another party (including departmental employees) and are derecognised upon recovery or write-off.

Receivables outstanding at year-end are carried in the statement of financial position at cost plus any accrued interest. Amounts that are potentially irrecoverable are included in the disclosure notes.


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4.4 Inventory

Inventories that qualify for recognition must be initially reflected at cost. Where inventories are acquired at no cost, or for nominal consideration, their cost shall be their fair value at the date of acquisition. All inventory items at year-end are reflected using the weighted average cost or FIFO cost formula.

4.5 Capital assets

4.5.1Moveableassets

InitialrecognitionA capital asset is recorded in the asset register on receipt of the item at cost. Cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the moveable capital asset is stated at fair value. Where fair value cannot be determined, the capital asset is included in the asset register at R1. All assets acquired prior to 1 April 2002 are included in the register at R1. Depreciation is not recognised under the modified cash basis of accounting. Only assets that are controlled by Department are recorded in the asset register. Assets that are transferred to communities and farmers are not recorded in the asset register.

Biological assets purchased are stated at cost. Biological assets created through birth are stated at fair value. The fair value is based on the approved revenue tariff policy which indicates the minimum value of which the biological assets can be sold for on an open market. Biological assests are annually revalued taking into account the physical growth. The revalue amount is calculated as the physical weight multiplied by the rate as per the approved tariff policy. Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

SubsequentrecognitionSubsequent expenditure of a capital nature is recorded in the statement of financial performance as “expenditure for capital assets” and is capitalised in the asset register of the Department on completion of the project. Repairs and maintenance is expensed as current “goods and services” in the statement of financial performance.

4.5.2Immoveableassets

InitialrecognitionA capital asset is recorded on receipt of the item at cost. The cost of an asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the immoveable capital asset is stated at R1 unless the fair value for the asset has been reliably estimated.

SubsequentrecognitionWork-in-progress of a capital nature is recorded in the statement of financial performance as “expenditure for capital assets”. On completion, the total cost of the project is not included in the asset register of the Department that is accountable for the asset because the communities are the beneficiaries of these assets. Repairs and maintenance are expensed as current “goods and services” in the statement of financial performance.

4.5.3Intangibleassets

InitialrecognitionAn intangible asset is recorded in the asset register on receipt of the item at cost. Cost of an intangible asset is defined as the total cost of acquisition. Where the cost cannot be determined accurately, the intangible asset is stated at fair value. Where fair value cannot be determined, the intangible asset is included in the asset register at R1. All intangible assets acquired prior to 1 April 2002 can be included in the asset register at R1.

SubsequentexpenditureSubsequent expenditure of a capital nature is recorded in the statement of financial performance as “expenditure for capital asset” and is capitalised in the asset register of the Department. Maintenance is expensed as current “goods and services” in the statement of financial performance.


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5. Liabilities

5.1 Payables

Recognised payables mainly comprise of amounts owing to other governmental entities. These payables are carried at cost in the statement of financial position.

5.2 Contingent liabilities

Contingent liabilities are included in the disclosure notes to the financial statements when it is possible that economic benefits will flow from the Department, or when an outflow of economic benefits or service potential is probable but cannot be measured reliably.

5.3 Contingent assets

Contingent assets are included in the disclosure notes to the financial statements when it is probable that an inflow of economic benefits will flow to the entity.

5.4 Commitments

Commitments are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

5.5 Accruals

Accruals are not recognised in the statement of financial position as a liability or as expenditure in the statement of financial performance but are included in the disclosure notes.

5.6 Employee benefits

Short-term employee benefits that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the financial statements. These amounts are not recognised in the statement of financial performance or the statement of financial position.

5.7 Lease commitments

FinanceleaseFinance leases are not recognised as assets and liabilities in the statement of financial position. Finance lease payments are recognised as a capital expense in the statement of financial performance. The total finance lease commitment is disclosed in the disclosure notes to the financial statements.

OperatingleaseOperating lease commitments are recognised as an expense in the statement of financial performance. The operating lease commitments are disclosed in the disclosure notes to the financial statement.

In the prior year the lease for vehicles with the Department of Transport was classified as an operating lease and in the current year it is classified as a finance lease.

5.8 Impairment

The Department tests for impairment where there is an indication that a receivable, loan or investment may be impaired. An assessment of whether there is an indication of possible impairment is done at each reporting date. An estimate is made for doubtful loans and receivables based on a review of all outstanding amounts at year-end. Impairments on investments are calculated as being the difference between the carrying amount and the present value of the expected future cash flows/service potential flowing from the instrument.


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5.9 Provisions

Provisions are disclosed when there is a present legal or constructive obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the obligation can be made.

6. Receivables for departmental revenue

Receivables for departmental revenue are disclosed in the disclosure notes to the annual financial statements. These receivables are written off when identified as irrecoverable and are disclosed separately.

7. Net Assets

7.1 Capitalisation reserve

The capitalisation reserve comprises of financial assets and/or liabilities originating in a prior reporting period but which are recognised in the statement of financial position for the first time in the current reporting period. Amounts are recognised in the capitalisation reserves when identified in the current period and are transferred to the Provincial Revenue Fund when the underlying asset is disposed and the related funds are received.

7.2 Recoverable revenue

Amounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

8. Related party transactions

Specific information with regards to related party transactions is included in the disclosure notes.

9. Key management personnel

Compensation paid to key management personnel including their family members where relevant, is included in the disclosure notes.

10. Public private partnerships

A description of the PPP arrangement, the contract fees and current and capital expenditure relating to the PPP arrangement is included in the disclosure notes.


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1. Annual Appropriation

1.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2012/13 2011/12

Final Appropriation

Actual Funds Received

Funds not requested/

not received

Appropriationreceived

R’000 R’000 R’000 R’000

Administration 432,283 412,130 20,153 435,650

Sustainable Resource Management 157,518 142,674 14,844 124,446

Farmer Support and Development 462,647 442,662 19,985 425,269

Veterinary Services 235,087 232,752 2,335 214,708

Technology Research and Development 79,239 78,988 251 74,057

Agricultural Economics 207,783 205,603 2,180 103,913

Structured Agricultural Training 104,444 99,649 4,795 102,253

Total 1,679,001 1,614,458 64,543 1,480,296

1.2 Conditional grants

Note

2012/13 2011/12

R’000 R’000

Total grants received 47 233,750 246,351

Provincial grants included in Total Grants received - 16,125

2. Statutory Appropriation

2012/13 2011/12

R’000 R’000

Member of executive committee/parliamentary officers 1,652 1,569

Total 1,652 1,569

Actual Statutory Appropriation received 1,652 1,569

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3. Departmental revenue

Note 2012/13 2011/12

R’000 R’000

Tax revenue

Sales of goods and services other than capital assets 3.1 2,896 2,765

Fines, penalties and forfeits 3.2 2 -

Interest, dividends and rent on land 3.3 - 2

Sales of capital assets 3.4 2,104 1,765

Transactions in financial assets and liabilities 3.5 1,830 5,267

Transfer received 3.6 83,355 -

Total revenue collected 90,187 9,799

Less: Own revenue included in appropriation 22 6,965 6,633

Departmental revenue collected 83,222 3,166

3.1 Sales of goods and services other than capital assets

Note 2012/13 2011/12

3 R’000 R’000

Sales of goods and services produced by the department 2,788 2,683

Sales by market establishment 879 374

Other sales 1,909 2,309

Sales of scrap, waste and other used current goods 108 82

Total 2,896 2,765

3.2 Fines, penalties and forfeits

Note 2012/13 2011/12

3 R’000 R’000

Fines 2 -

Total 2 -

3.3 Interest, dividends and rent on land

Note 2012/13 2011/12

3 R’000 R’000

Interest - 2

Total - 2

3.4 Sale of capital assets

Note 2012/13 2011/12

3 R’000 R’000

Tangible assets 2,104 1,765

Biological assets 27 2,104 1,765

Total 2,104 1,765


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3.5 Transactions in financial assets and liabilities

Note 2012/13 2011/12

3 R’000 R’000

Other Receipts including Recoverable Revenue 1,830 5,267

Total 1,830 5,267

3.6 Transfers received

Note 2012/13 2011/12

3 R’000 R’000

Other governmental units 83,355 -

Total 83,355 -

4. Compensation of employees

4.1 Salaries and Wages

Note 2012/13 2011/12

R’000 R’000

Basic salary 628,183 593,041

Performance award 13,541 13,337

Service Based 1,992 2,085

Compensative/circumstantial 55,671 53,699

Other non-pensionable allowances 79,919 72,207

Total 779,506 734,369

4.2 Social contributions

Note 2012/13 2011/12

R’000 R’000

Employer contributions

Pension 80,228 75,543

Medical 45,781 44,816

Bargaining council 173 180

Total 126,182 120,539

Total compensation of employees 905,688 854,908

Average number of employees 3 176 3 286


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5. Goods and services

Note 2012/13 2011/12R’000 R’000

Administrative fees 252 79Advertising 5,615 6,689Assets less then R5,000 5.1 5,031 3,767Bursaries (employees) 1,692 2,080Catering 7,346 7,598Communication 29,261 25,795Computer services 5.2 20,678 22,606Consultants, contractors and agency/outsourced services 5.3 61,609 159,709Entertainment 305 493Audit cost – external 5.4 5,560 6,987Fleet services 22,864 -Inventory 5.5 50,553 57,822Operating leases 47,877 71,354Property payments 5.6 16,585 11,217Rental and hiring 1,510 -Transport provided as part of the departmental activities - 97Travel and subsistence 5.7 85,184 71,974Venues and facilities 4,535 2,964Training and staff development 11,625 15,015Other operating expenditure 5.8 14,806 8,102Total 392,888 474,348

5.1 Assets less than R5,000

Note 2012/13 2011/12

5 R’000 R’000

Tangible assets

Biological assets 1,108 83

Machinery and equipment 3,923 3,684

Total 5,031 3,767

5.2 Computer services

Note 2012/13 2011/12

5 R’000 R’000

SITA computer services 13,994 22,076

External computer service providers 6,684 530

Total 20,678 22,606


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5.3 Consultants, contractors and agency/outsourced services

Note 2012/13 2011/12

5 R’000 R’000

Business and advisory services 1,503 1,140

Infrastructure and planning - 73,263

Laboratory services - 1,166

Legal costs 1,409 2,802

Contractors 57,615 80,851

Agency and support/outsourced services 1,082 487

Total 61,609 159,709

5.4 Audit cost – External

Note 2012/13 2011/12

5 R’000 R’000

Regularity audits 5,560 6,987

Total 5,560 6,987

5.5 Inventory

Note 2012/13 2011/12

5 R’000 R’000

Learning and teaching support material 43 -

Food and food supplies 2,156 677

Fuel, oil and gas 506 28,453

Other consumables 21,979 7,162

Materials and supplies 515 212

Stationery and printing 5,689 6,109

Medical supplies 19,665 15,209

Total 50,553 57,822

5.6 Property payments

Note 2012/13 2011/12

5 R’000 R’000

Municipal services 5,090 4,506

Property maintenance and repairs 11,495 6,711

Total 16,585 11,217


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5.7 Travel and subsistence

Note 2012/13 2011/12

5 R’000 R’000

Local 85,077 71,477

Foreign 107 497

Total 85,184 71,9745.8 Other operating expenditure

Note 2012/13 2011/12

5 R’000 R’000

Learnerships 6,146 2,099

Professional bodies, membership and subscription fees 7,875 5,773Resettlement costs 527 -

Gifts 57 -

Other 201 230

Total 14,806 8,102

6. Payments for financial assets

Note 2012/13 2011/12R’000 R’000

Other material losses written off 6.1 - -Debts written off 6.2 - 3,930

Total - 3,930

6.1 Other material losses written off

Note 2012/13 2011/12

6 R’000 R’000

Nature of losses

Surrender of unspent funds without adjustment estimate process being followed. - -Total - -

6.2 Debts written off

Note 2012/13 2011/12

6 R’000 R’000

Nature of debts written off

Staff Debts - 3.930

Total debt written off - 3,930


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7. Transfers and subsidies

2012/13 2011/12

R’000 R’000

Note

Departmental agencies and accounts Annex 2 129,057 81,852

Public corporations and private enterprises Annex 3 31,806 26,029

Households Annex 4 26,787 28,921

Total 187,650 136,802

8. Expenditure for capital assets

Note 2012/13 2011/12

R’000 R’000

Tangible assets 130,868 14,267

Buildings and other fixed structures 29 84,069 -

Machinery and equipment 26.1 43,058 13,621

Biological assets 26.1 3,741 646

Software and other intangible assets - 178

Computer software 27 - 178

-

Total 130,868 14,445

8.1 Analysis of funds utilised to acquire capital assets – 2012/13

Voted funds Aid assistance Total

R’000 R’000 R’000

Tangible assets 130,868 - 130,868

Buildings and other fixed structures 84,069 - 84,069

Machinery and equipment 43,058 - 43,058

Biological assets 3,741 - 3,741

Software and other intangible assets

Computer software - - -

Total 130,868 - 130,868

8.2 Analysis of funds utilised to acquire capital assets – 2011/12

Voted funds Aid assistance TotalR’000 R’000 R’000

Tangible assets 14,267 14,267Machinery and equipment 13,621 - 13,621Biological assets 646 - 646

Software and other intangible assets 178 178Computer software 178 - 178

Total 14,445 14,445


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9. Unauthorised expenditure

9.1 Reconciliation of unauthorised expenditure

Note 2012/13 2011/12

R’000 R’000

Opening balance 83,028 100,958

Unauthorised expenditure – discovered in current year 21

Less: Amounts approved by Parliament/Legislature with funding

Less: Amounts approved by Parliament/Legislature without funding and written off in the Statement of Financial Performance

(35,567) (17,930)

Capital - -

Current - -

Transfers and subsidies - -

Less: Amounts transferred to receivables for recovery

Unauthorised expenditure awaiting authorisation / written off 47,461 83,028

Analysis of awaiting authorisation per economic classification

Capital - -

Current 47,461 83,028

Total 47,461 83,028

9.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification

2012/13 2011/12R’000 R’000

CapitalCurrent 47,461 83,028Transfers and subsidiesTotal 47,461 83,028

9.3 Analysis of unauthorised expenditure awaiting authorisation per type

2012/13 2011/12

R’000 R’000

Unauthorised expenditure relating to overspending of the vote or a main division within a vote

47,461 83,028

Total 47,461 83,028


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10. Receivables

2012/13 2011/12

R’000 R’000 R’000 R’000 R’000

Note Less than one year

One to three years

Older than three years

Total Total

Claims recoverable 10.1Annex 4

1,169 - 1,377 2,546 1,540

Staff debt 10.2 771 477 1,005 2,253 2,041

Other debtors 10.3 - - 10,878 10,878 14,935

Total 1,940 477 13,260 15,677 18,516

10.1 Claims recoverable

Note 2012/13 2011/12

10 R’000 R’000

Dept of Agriculture, Forestry & Fisheries 2,118 1,540

Total 2,118 1,540

10.2 Staff debt

Note 2012/13 2011/12

10 R’000 R’000

Debt Account 2,100 1,920

Salary related debts - 105

Deduction disallowance - 16

Sal: Tax Debt 153 -

Total 2,253 2,041

10.3 Other debtors

Note 2012/13 2011/12

10 R’000 R’000

Rec: Dom: EC Claims Receivable 428 241

DisallowanceMiscellaneous:(JobEvaluationDebts) 3,534 4,293

Rent non recoverable 5 5

Adv: Dom: (Classical Swine Fever) 6,903 10,396

Official Union 5 -

Medical Aid 3 -

Total 10,878 14,935


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11. Voted funds to be surrendered to the Revenue Fund

Note 2012/13 2011/12

R’000 R’000


Transfer from statement of financial performance 63,559 48,543

Add: Unauthorised expenditure for current year 13 - -

Voted funds not requested/not received 1.1 (64,543) (51,111)

Transferred to retained revenue to defray excess expenditure 21.1 - -Paid during the year - -

Closing balance 59,337 60,321

12. Departmental revenue to be surrendered to the Revenue Fund

Note 2012/13 2011/12

R’000 R’000

Opening balance 1,454 695

Transfer from Statement of Financial Performance 83,222 3,166

Own revenue included in appropriation 6,965 6,633

Transfer from aid assistance -

Transfer to voted funds to defray expenditure -

Paid during the year (90,171) (9,040)


13. Bank Overdraft

Note 2012/13 2011/12

R’000 R’000

Consolidated Paymaster General Account 517 36,808

Total 517 36,808

14. Payables - current

Note 2012/13 2011/12

R’000 R’000

Clearing accounts 14.1 1,492 2,521

Other payables 14.2 322 440

Total 1,814 2,961


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14.1 Clearing accounts

Note 2012/13 2011/12

14 R’000 R’000

Motor Finance Deduction 493 327

ACB Recall 966 922

Medical Aid - 84

Insurance - 219

Cancel Cheque Reissue - 1

Garnish Order Deduction 11 79

Pension Fund - 29

Housing 13 38

Income Tax 9 822

Total 1,492 2,521

14.2 Other payables

Note 2012/13 2011/12

13 R’000 R’000

Cancel Cheque/Re-issue 1 -

Receivable Income 321 236

Pension Recoverable - 60

Sal: Reversal Control - 74

Private Telephone - 70

Total 322 440

15. Net cash flow available from operating activities

Note 2012/13 2011/12

R’000 R’000

Net surplus/(deficit) as per Statement of Financial Performance 146,781 51,709

Add back non cash/cash movements not deemed operating activities 18,274 (21,276)

(Increase)/decrease in receivables – current 2,839 5,640

(Increase)/decrease in other current assets 35,567 17,930

Increase/(decrease) in payables – current (1,147) (4,008)

Proceeds from sale of capital assets (2,104) (1,765)

Expenditure on capital assets 130,868 14,445

Surrenders to Revenue Fund (90,171) (9,040)

Voted funds not requested/not received (64,543) (51,111)

Own revenue included in appropriation 6,965 6,633

Net cash flow generated by operating activities 165,055 30,433


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16. Reconciliation of cash and cash equivalents for cash flow purposes

Note 2012/13 2011/12

R’000 R’000

Consolidated Paymaster General account (517) (36,808)

Total (517) (36,808)

These amounts are not recognised in the Annual Financial Statements and are disclosed to enhance the usefulness of the Annual Financial Statements.


169



17. Contingent liabilities and contingent assets

17.1 Contingent liabilities

Note 2012/13 2011/12

R’000 R’000

Liable to Nature

Housing loan guarantees Employees Annexure 5 1,765 2,447

Claims against the department Annexure 6 215,777 215,055

Other departments (interdepartmental unconfirmed balances) Annexure8 - 3,160Other Annexure 6 10,724 12,143

Total 228,266 232,805

17.2 Contingent Asset

Note 2012/13 2011/12

R’000 R’000

Nature of contingent asset

HROPT was a project established to audit employee records, amalgamate the three government administration, to also identify ghost employees through the Head count. Componets were, rank promotion, head count, establishment and HR Admin. Most employees were paid in error and the probability of recovery is close to zero.

Note - -

18. Commitments

Note 2012/13 2011/12

R’000 R’000

Current

Approved and contracted 4,712 3,425

Approved but not yet contracted 1,463 222

6,179 3,647

Capital

Approved and contracted 38,102 17,754

Approved but not yet contracted 1,463 27

39,238 17,781

Total Commitments 45,413 21,428

Included in capital commitments, Approved and contract for the 2012/13 year are three big projects, namely, Xhashimba Abattoir, Grahamstown Abattoir and Aliwal North Farmers Development centre. The total commitment amount for these projects is R26 million at 31 March 2013.

DISCLOSURENOTESTOTHEANNUALFINANCIALSTATEMENTSfortheyearended31March2013

170



19. Accruals

2012/13 2011/12

R’000 R’000

Listed by economic classification

30 Days 30+ Days Total Total

Goods and services 18,628 2,670 21,298 8,291

Interest and rent on land - - - -

Transfers and subsidies - - - -

Capital assets 2,245 56 2,301 -

Other 1,978 4,257 6,235 -

Total 22,851 6,983 29,834 8,291

Note 2012/13 2011/12

R’000 R’000

Listed by programme level

Administration 16,085 6,027

Sustainable Resource Management 522 405

Farmer Support and Development 9,377 1,352

Veterinary Services 513 27

Technical Research and Development Services - 23

Agricultural Economics - 3

Structured Agricultural Training 3,337 454

Total 29,834 8,291

Note 2012/13 2011/12

R’000 R’000

Confirmed balances with other departments Annex 5 - 3,160

Confirmed balances with other government entities Annex 5 1,800 1,800

Total 1,800 4,960

There have been material accruals in Administration because the current year figures include Compensation of Employees accruals for current year. There were delays in some infrastructure related projects which were paid in 2013/14 financial year.

20. Employee benefits

Note 2012/13 2011/12

R’000 R’000

Leave entitlement 55,556 45,990

Service bonus (Thirteenth cheque) 26,941 25,904

Performance awards 14,677 13,775

Capped leave commitments 172,149 174,589

Other – Occupational Specific Dispensation - 5,447

Total 269,323 265,705


171



21. Lease commitments

21.1 Operating leases commitments

2012/13 Buildings and other fixed structures

Machinery and equipment

Total

Not later than 1 year 3,212 2,782 5,994

Later than 1 year and not later than 5 years 3,392 1,640 5,032Later than five years - - -

Total lease commitments 6,604 4,422 11,026

2011/12 Motor Vehicle Buildings and other fixed structures


Total

R’000 R’000 R’000 R’000

Not later than 1 year 26,926 3,577 2,211 32,714

Later than 1 year and not later than 5 years 103,216 1,771 2,889 107,876

Later than five years - - - -

Total lease commitments 130,142 5,348 5,100 140,590

21.2 Finance leases commitments



Total

R’000 R’000 R’000 R’000

Not later than 1 year 22,263 - 11,467 33,730

Later than 1 year and not later than 5 years 64,137 - 5,269 69,406Later than five years - - - -

Total lease commitments 86,400 - 16,736 103,136



Total

R’000 R’000 R’000 R’000

Not later than 1 year - - 5,997 5,997

Later than 1 year and not later than 5 years - - 3,918 3,918

Later than five years - - - -

Total lease commitments 9,915 9,915

LESS: finance costs -- - - -

Total present value of lease liabilities 9,915 9,915

The department has entered into a lease agreement with the Department of Transport on 1 February 2013 for the provision of 230 vehicles for a period of 60 months. The amounts disclosed here is based on the remaining period of the lease at reporting date and an agreed upon tariff for each category of vehicle. When new vehicles are received, the lease term is deemed to be 60 months and the remaining lease term is based on the months elapsed from delivery date to reporting date. The lease was previously classified as an operating lease and is now classified as a finance lease. The reduction from the prior year to the current year is due to the decrease is remaining lease period and a reduction in the tariffs.

All leased photocopiers/fax machines have also been reclassified from operating to finance lease for current year and comparative figures.


172



22. Irregular expenditure

22.1 Reconciliation of irregular expenditure

Note 2012/13 2011/12

R’000 R’000


Add: Irregular expenditure – relating to prior year -

Add: Irregular expenditure – relating to current year 29,384 13,865

Less: Amounts condoned (4,215) (3,820)

Less: Amounts recoverable (not condoned) (14,657) (9,907)

Less: Amounts not recoverable (not condoned) - (138)

Irregular expenditure awaiting condonation 225,938 215,426

2012/13 2011/12R’000 R’000

Analysis of awaiting condonation per age classificationCurrent year 29,384 56,276Prior years 196,554 159,150Total 225,938 215,426

22.2 Details of irregular expenditure - current year

Incident Disciplinary steps taken/criminal proceedings 2012/13R’000

Contravention of procurement procedures 14,727

HROPT Cumulative effect 14,657

Total 29,384

22.3 Details of irregular expenditure condoned Incident Condoned by (condoning authority) 2012/13

R’000Contravention of procurement procedures 4,215

Total 4,215

22.4 Details of irregular expenditure recoverable (not condoned)

Incident 2012/13R’000

HROPT Cumulative effect (Awaiting decision by the Court) 14,657

Total 14,657

22.5 Details of irregular expenditure not recoverable (not condoned)

Incident Not condoned by (condoning authority) 2012/13R’000

Total


173



23. Fruitless and wasteful expenditure

23.1 Reconciliation of fruitless and wasteful expenditure

Note 2012/13 2011/12

R’000 R’000


Fruitless and wasteful expenditure – relating to prior year - -

Fruitless and wasteful expenditure – relating to current year 371 80

Fruitless and wasteful expenditure awaiting resolution 8,742 8,371

23.2 Analysis of awaiting resolution per economic classification

2012/13 2011/12

R’000 R’000

Current 371 80

Capital - -

Transfers and subsidies - -

Total 371 80

23.3 Analysis of Current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/criminal proceedings 2012/13R’000

Interest charged by Humansdorp Cooperative 221

Interest – Auditor General Fees 2

Traffic Fines 14

Interest – Telkom Account 134

Total 371

24. Related party transactions

Related parties

The related parties of the department are all provincial departments in the Eastern Cape and the Eastern Cape Rural DevelopmentAgency(publicentity)includingitssubsidiaries.Thesubsidiariesare;• AgrarianResearchandDevelopmentAgency(Pty)Ltd• SugarBeetRSA(Pty)Ltd• KangelaCitrusFarms(Pty)Ltdand• NorthPondoland(Pty)Ltd

Related party relationship

Provincialdepartments

The Eastern Cape Department of Rural Development and Agrarian Reform is related to other provincial Departments as they are subject to common control (i.e they operate together to achieve common objectives determined by Cabinet / Provincial Legislature).


174



Eastern Cape Rural Development Agency (EC-RDA) and its subsidiaries

The EC-RDA is a public entity of the Eastern Cape Department of Rural Development and Agrarian Reform, the department thus has the ability to control the other party in making financial and operating decisions.

Related party transaction

The Eastern Cape Department of Rural Development and Agrarian Reform currently occupies a building owned by the Department of Roads and Public Works without paying for these services.

REGION BUILDING NAME PHYSICAL ADDRESS

Head Office Business Village Bhisho

Amatole Crown Hotel King William’s Town

Amatole District Office East London

Alfred Nzo Rollete Alfred Nzo

Chris Hani District Office Queenstown

Cacadu Agriland Port Elizabeth

JoeGqabi Riverside Building JoeGqabi

25. Key management personnel

No. of Individuals 2012/13 2011/12

R’000 R’000

Political office bearers 1 1,652 1,569

Officials:

Level 15 to 16 3 3,560 4,614

Level 14 (incl. CFO if at a lower level) 6 5,299 4,339

Family members of key management personnel 2 932 238

Total 11,443 10,760

26. Impairments

Note 2012/13 2011/12

R’000 R’000

Impairment

Other 6,903 10,396

Total 6,903 10,396


175



27. Moveable Tangible Capital Assets

MOVEMENT IN MOVEABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening balance

Curr Year Adjustments to prior year

balances

Additions Disposals Closing Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 89,869 (2,868) 48,190 (2,703) 132,438

Transport assets 3,797 - 1,296 (1,296) 3,797

Computer equipment 39,016 (1,892) 8,274 (996) 44,402

Furniture and office equipment 13,698 (203) 2,441 (31) 15,905

Other machinery and equipment 33,358 (773) 36,179 (380) 68,384

Biological assets 1,748 - 4,597 (4,228) 2,117

TOTAL MOVEABLE TANGIBLE CAPITAL ASSETS 91,617 (2,868) 52,787 (6,931) 134,605

27.1 Additions

ADDITIONS TO MOVEABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Cash Non-cash (Capital Work in

Progress current

costs and finance

lease payments)

Received current, not

paid(Paid

current year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 39,060 32,024 (22 894) - 48,190

Transport assets 24,190 - (22894) - 1,296

Computer equipment 8,274 - - - 8,274

Furniture and office equipment 2,441 - - - 2,441

Other machinery and equipment 4,155 32,024 - - 36,179

BIOLOGICAL ASSETS 3,741 856 - - 4,597

Biological assets 3,741 856 - - 4,597

TOTAL ADDITIONS TO MOVEABLE TANGIBLE CAPITAL ASSETS

42,801 32,880 (22 894) - 52,787

The additions non-cash of R32 million relates to tractors and implements that were donated to the department from the National Department of Agriculture, Fisheries and Forestry.


176



27.2 Disposals

DISPOSALS OF MOVEABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED31 MARCH 2013

Sold for cash Transfer out or destroyed or scrapped

Total disposals

Cash Received Actual

R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 1,356 1,347 2,703 -

Transport assets - 1,296 1,296 -

Computer equipment 961 35 996 -

Furniture and office equipment 31 - 31 -

Other machinery and equipment 364 16 380 -

BIOLOGICAL ASSETS 325 3,903 4,228 2,104

Biological assets 325 3,903 4,228 2,104

TOTAL DISPOSAL OF MOVEABLE TANGIBLE CAPITAL ASSETS

1,681 5,250 6,931 2,104

Losses amounting R35,000 for computer equipment and 16,000 for other machinery and equipment was written off and approved.

27.3 Movement for 2011/12

MOVEMENT IN MOVEABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012

Opening balance

Additions Disposals Closing balance

R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 77,313 13,165 (609) 89,869

Transport assets 2,901 896 - 3,797

Computer equipment 32,997 6,427 (408) 39,016

Furniture and office equipment 13,026 696 (24) 13,698

Other machinery and equipment 28,389 5,146 (177) 33,358

BIOLOGICAL ASSETS 1,458 1,186 (896) 1,748

Biological assets 1,458 1,186 (896) 1,748

TOTAL MOVEABLE TANGIBLE ASSETS 78,771 14,351 (1,505) 91,617


177



27.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013

Intangible assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000

Opening balance 48 24,654 5,119 29,821

Current Year Adjustments to Prior Year balances - 721 41 680

Additions - 3,923 2,358 6,281

Disposals - (231) (2,833) (3,064)

TOTAL MINOR ASSETS 48 27,625 4,685 32,358

Intangible assets

Machinery and

equipment

Biological assets

Total

Number of assets at R1 16 30,348 - 30,364

Number of minor assets at cost 15 22,024 4,826 26,865

TOTAL NUMBER OF MINOR ASSETS 31 52,372 4,826 57,229

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2012

Intangible assets

Machinery and

equipment

Biological assets

Total

R’000 R’000 R’000 R’000

Opening balance 48 24,654 5,119 29,821

Current year adjustment to prior year balance - - - -

Additions - - - -

Disposals - - - -

TOTAL MINOR ASSETS 48 24,654 5,119 29,821

28. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening balance

Current Year Adjust-

ments to prior year

balances


R’000 R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 5,116 - - - 5,116

TOTAL INTANGIBLE CAPITAL ASSETS 5,116 - - - 5,116


178



28.1 Movement for 2011/12

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2012

Opening balance

Additions Disposals Closing balance

R’000 R’000 R’000 R’000

COMPUTER SOFTWARE 4,972 178 (34) 5,116

TOTAL INTANGIBLE CAPITAL ASSETS 4,972 178 (34) 5,116

29. Immoveable Tangible Capital Assets

MOVEMENT IN IMMOVEABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening balance

Curr Year Adjustments to prior year

balances


R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES - - 84,069 - 84,069

Other fixed structures - - 84,069 - 84,069

TOTAL IMMOVEABLE TANGIBLE CAPITAL ASSETS - - 84,069 - 84,069

Additions

ADDITIONS TO IMMOVEABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Cash Non-cash (Capital Work in Progress

current costs and

finance lease payments)

Received current, not

paid(Paid

current year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES 84,575 - (84,575) - -

Other fixed structures 84,575 - (84,575) - -

TOTAL ADDITIONS TO IMMOVEABLE TANGIBLE CAPITAL ASSETS 84,575 - (84,575) - -


179



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ANNEXURE 9INVENTORY

Inventory Note 2012/13 2011/12

R’000 R’000


Add/(Less): Adjustments to prior year balance - -

Add: Additions/Purchases – Cash 28,503 57,822

(Less): Issues (23,721) (58,340)

Add/(Less): Adjustments (1,808) 189



187



NOTES

188



NOTES

PR186/2013 ISBN: 978-0-621-41984-9

Dukumbana Building, Independence Avenue, Bhisho, 5605

Postal Address: Private Bag X0040, Independence Avenue, Bhisho, 5605Tel: 040-6093471/5 | Fax: 040-6350604

Email: [email protected]: www.drdar.gov.za

2012 | 2013 · submission of the annual report by the executing authority to the legislature i am...

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