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CONTENTS

1. Background2. Mandate3. Financial Report 1st Quarter4. Performance Report 1st Quarter5. Projects Report6. Educational Awards7. Human Resources8. Accounting Authority Meetings

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BACKGROUNDThe Ingonyama Trust was established in 1994 by an Act of Parliament – Act No 3 of 1994 with His

Majesty the King as the sole Trustee. An amendment Act in 1997 among other things established a

Board to administer the affairs of the Trust. The Board comprises of eight members plus Isilo or his

nominee as Chairperson. The eight (8) Board members are appointed by the Minister of Rural

Development and Land Reform, after considering National and Provincial interests.

The Trust is the one of the largest landowners in the Province with a total extent of 2,844,903 hectares

held under some 1600 individual titles. The Trust owns land in all of the District Municipalities and

Metro Municipal areas in KwaZulu-Natal.

The Board sees Real Estate as its major activity. The core business of the Trust is to administer the land

for the “material benefit and social wellbeing of the individual members of the tribes”. However, no

alienation or burdening of the land may occur without the written permission of the relevant

traditional or community authority.

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GRAPH ON FUNDING MODEL

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FUNDING MODELThe Ingonyama Trust Board obtains its funding from the following two sources.•Transfer payment received from the Department of Rural Development and Land Reform, •and income from trading and investing activities

The income from trading activities consist mainly of lease income and compensation from servitudes.

The ITB uses the income from trading activities because the Transfer payment received from the department is not sufficient to defray the total expenditure of the Trust.

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1st QUARTER EXPENDITURE 2015/2016

BUDGET FOR THE

YEAR

SPENDING TO THE

END OF 1st QUARTER

BALANCE AVAILABLE FOR THE

YEAR

% OF THE TOTAL

BUDGET SPENT IN

THE 1ST QUARTER

EXPENDITURE PER PROGRAMME

R R R %

ADMINISTRATION 59 289 914 6 540 079 52 749 835 11.03

LAND MANAGEMENT 2 585 901 3 904 2 581 997

0.15

RURAL DEVELOPMENT 9 000 000 6 033 605 2 966 395

67.04 TRADITIONAL COUNCIL AND COMMUNITY SUPPORT 16 766 610 2 042 638 14 723 972

12.18

87 642 425 14 620 226 73 022 199 16.68

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BUDGET FOR THE YEAR

SPENDING TO THE END OF 1st QUARTER

BALANCE AVAILABLE

FOR THE YEAR

% OF THE TOTAL

BUDGET SPENT IN THE FIRST QUARTER

R R R %Economic ClassificationCompensation of employees 18 896 706 3 840 421 15 056 285 20.32 Goods and Services 43 002 114 4 564 112 38 438 002 10.61 Rent – Ulundi Office 210 000 54 450 155 550 25.93 Building and other fixed structures 14 000 000 36 425 13 963 575 0.26 Machinery , equipment, vehicles 11 033 605 6 102 168 4 931 437 55.31 Software and intangible Assets 500 000 22 650 477 350 4.53

87 642 425 14 620 226 72 544 849 16.68

1st QUARTER EXPENDITURE 2015/2016

NOTES ON EXPENDITURE

• The total amount spent including provisions for the 1st quarter amounted to R 14.6m. This represents 16.68 % of the total budget for the year.

• R 3 904 was spent on land management.• R 6 m was utilised on rural development.• R 2 m was spent on traditional council/

community support for the first quarter.• R 6.5 m was utilised on administration costs

(includes staff salaries).

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SCHEDULE OF GOODS AND SERVICES

1 st Quarter Actual

RLegal fees - other 42 733

Advertising and public awareness campaign 189 000

Land Tenure Information System 3 904

Bank Charges 15 735

Cleaning repairs & other expenses 178 837 Payments to traditional council / community support– Administration and Other 1 703 148

Educational Awards 339 490

Projects launches and information sharing meetings 876 347

Motor Vehicle Expenses 35 301

Stationery and Printing 90 144

Travel ,Accomodations ,Meetings 262 384

Board Members’ Remuneration 197 869

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SCHEDULE OF GOODS AND SERVICES (Contd)

1 st Quarter Actual

RExternal Audit Fees 114 106Internal Audit Fees 27 640 Electricity and Water 197 697Telephone 19 194 Computer Software/Licencing Fee 17 870 Security Expenses 149 620 Internal Audit Committee Members’ Remuneration 3 109 Insurance 99 984

4 564 112

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NOTES ON 1ST QUARTER INCOME

• The total revenue generated for the 1ST Quarter amounted to R 23.6 m (Includes transfer payment),

• This represents 26.96 % of the total budget for the year,

• Transfer payment received for the first quarter is R 6.1m.

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SCHEDULE OF REVENUEITEM ACTUAL FOR THE

QUARTERBUDGET FOR THE YEAR

% OF TOTAL YEARLY INCOME

RENTAL INCOME R 14,537,750 R 17,642,621 82,40%

SERVITUDES AND OTHER R 140,446 R 352,650 39,83%

INVESTMENT INCOME R 2,836,495 R 10,647,248 26,64%

RESERVES - R 40,930,905 00.00%

TRANSFER PAYMENT R 6,116,000 R 18,069,000 33,85%

TOTAL INCOME FOR 1ST QUARTER R 23,630,691 R 87,642,424 26,96%

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PERFORMANCE REPORTING1st QUARTER 2015/16

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PROGRAMME : Administration

STRATEGIC GOAL : To administer the affairs of the Trust for the benefit and material wellbeing of the communities living on land under Ingonyama Trust Board

STRATEGIC OBJECTIVE : Efficient resource management to ensure effective internal control systems in order to comply with legislative requirements

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PERFORMANCE REPORTING1st QUARTER 2015/16

PROGRAMME : Land Management

STRATEGIC GOAL : To administer the affairs of the Trust for the benefit and material well being of the communities living on land under Ingonyama Trust Board

STRATEGIC OBJECTIVE : Efficient resource management to ensure effective internal control systems in order to comply with legislative requirements

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PERFORMANCE REPORTING1st QUARTER 2015/16

PROGRAMME : Rural Development

STRATEGIC GOAL : To administer the affairs of the Trust for the benefit and material well being of the communities living on land under Ingonyama Trust Board

STRATEGIC OBJECTIVE : Efficient resource management to ensure effective internal control systems in order to comply with legislative requirements

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PERFORMANCE REPORTING1st QUARTER 2015/16

PROGRAMME : Traditional Council Support

STRATEGIC GOAL : To administer the affairs of the Trust for the benefit and material well being of the communities living on land under Ingonyama Trust Board

STRATEGIC OBJECTIVE : Efficient resource management to ensure effective internal control systems in order to comply with legislative requirements

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HIGH IMPACT PROJECTS IDENTIFIED BY THE BOARD

• The Board initiated engagements with Richards Bay Minerals for the Zulti South mining operation where Richards Bay Minerals will be mining titanium on the land occupied by the Mkhwanazi and the Dube Traditional Councils. It is envisaged that this project will lead to job creation and will be seen as a catalyst for further development. The Traditional Councils have consented to this initiative and progress will be reported in the next quarter.

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EDUCATIONAL AWARDS

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MALES FEMALES TOTAL

17 18 35

FIELDS OF STUDY

Bachelor of Education (10)Bachelor Business Admin (1)Bachelor of Politics (1) Bachelor of Sports (1)Bachelor of Law (1)Bachelor of Arts (3)Bachelor of Commerce (5)Bachelor of Chemistry (3)Bachelor of Pharmacy (1)Bachelor of Agric (1)National Dip Office (2)National Dip Building (1)National Dip Elec (1)National Dip Enviro (1)Town Planning (1)Taxation (1)Public Relations (1)

An amount of R 339,490 was paid on behalf of students from the Ximba TC

HUMAN RESOURCES

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POST NUMBER VACANT FILLEDPermanent 27 3 24

Contract 31 3 28

The vacant positions are

•Chief Executive Officer•Manager Real Estate•Auxiliary Services Assistant – the post will be filled in the next quarter.

Action taken to fill in these posts•CEO – the post has been filled•Manager Real Estate – Short-listing for this post took place on 11 June 2015, however no suitable candidates were found. •The process to recruit for this post is on hand.

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4th QUARTER ACCOUNTING AUTHORITY MEETINGS

EXCO BOARD TENURE COMMITTEE

04 April 2015 22 May 2015 15 May 2015

04 June 2015

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