MTEF Budget:2011/12 – 2013/14

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The presentation will cover the following:

• Budget Allocation• Basis for budget allocation• Budget allocation per programme• 2011/12: Budget per standard item• Professional services

Budget Allocation:2011/12 – 2013/14

• The NAMC has received an MTEF budget allocation letter for the period 2011/12 -2013/14 from DAFF. The budget allocations are as follows:

• 2011/12: R 35 899 000• 2012/13: R 30 115 000• 2013/14: R 32 220 000

Budget Allocation Cont’

• This resulted in the following percentage fluctuation for the period:

• From 2010/11 – 2011/12: 15% increase• From 2011/12 – 2012/13: 16% decrease• From 2012/13 – 2013/14: 7% increase.

• The decrease of R5 million in 2012/13 is due to the following:

• The NAMC has in the previous financial year received additional funding to expand the export promotion programme that will afford 100 emerging agribusinesses the opportunity to participate in international trade.

• This funding was for the MTEF period 2009/10 – 2011/12 only.

Budget Allocation Cont’2011/12 – 2013/14

Other source of Income

• The NAMC is anticipating to generate income from the investment of the grants to be received from DAFF at the beginning of the financial year 2011/12. The following are the projected interest to be generated:

• 2011/12: R 1 350 000• 2012/13: R 1 200 000• 2013/14: R 1 400 000

Total Income for the MTEF period then results in:

• 2011/12: R 37 249 000• 2012/13: R 31 315 000• 2013/14: R 33 620 000

Basis for budget allocation

• The NAMC consist of 7 programmes excluding Council and Audit. The budgets allocated to programs were done in consultation with each respective programme manager.

• The following were the issues considered when allocating the budget to various programmes.

• Baseline assessment• Review of previous years expenditure • Identification of once off payments/ non- recurring expenditure• Contractual obligations e.g. ( rental office space and leased equipments )

Budget Allocation per Programme for MTEF period and Current year ( 2010/11)

2010/11 2011/12 2012/13 2013/14 R’000 R’000 R’000 R’000

Division: Finance & Administration

8 135 8 747 7,605 7,891

Human Resources 3 188 3 083 3,166 3,352Statutory Measures 1 462 1 986 1,992 2,133

Agribusiness Development

3 284 2 932 3,176 3,365

Agricultural Trusts 3 513 4 690 1,418 1,484MERC 10 739 11 382 9,384 10,556

CEO 2 704 3 042 3,187 3,374

Council 1 098 1 227 1,239 1,307Audit 150 160 149 157Total 32 494 37 249 31,315 33,620

2011/12 BUDGET PER STANDARD ITEMS

Expenditure categories

MTEF Budget 2010/11R’000

MTEF budget 2011/12R’000

Increase/(Decrease)R’000

% Change

PersonnelMerit Bonus

16,863 2,041

18,258 2,357

1,395 316

8%

Administration 7,532 7,111 -421 -5%

Professional services 8,507 9,221 713 8%

Assets 242 302 60 24%

Total 35,187 37,249 2,062 6%

Professional services • Included in the professional service budget is the amount of

R3,3 million for Eastern Cape Red meat project, during the past financial years 2009/10 the NAMC has received funding for an amount of R1, 8 million from ComMark, this funding was meant to assist in the development of Eastern Cape Red Meat project, the contract for this project has expired on 31 March 2010, however the NAMC continued to fund this project from its budget during 2010/11 financial year, for the financial year 2011/12 an amount of R3,3 million has been allocated for the Eastern Cape Red Meat which forms part of the Agricultural Trust budget. The NAMC is currently sourcing funds in order to sustain this project in future.

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