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agriculture & rural development Department:

Agriculture and Rural Development

PROVINCE OF KWAZULU-NATAL

�

y� Annual Report 2015/16

Publish in the Republic of South Africa

Department of Agriculture & Rural Development KwaZulu-Natal

Compiled by the Directorate: Monitoring and Evaluation

PHYSICAL ADDRESS: 1 Cedara Road, Cedara, Pietermaritzburg, 3200

POSTAL ADDRESS: Private Bag X9059, Pietermaritzburg, 3200

TELEPHONE NUMBER/S: (+27) 33 355-9100

FAX NUMBER: (+27 33 355 9122

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.kzndard.gov.za

PR308/2016 ISBN: 978-0-621-44901-3

03 Annual Report_2015/16

TABLE OF CONTENTS

PART A: PERFORMANCE INFORMATIONDEPARTMENT 5 4 CONDITIONAL GRANTS 51

GENERAL INFORMATION 4.1 Conditional grants and earmarked funds received 51

2, LIST OF ABBREVIATIONS/ACRONYMS 6 4.1.1 Land Care 51

3. FOREWORD BY THE MINISTER/MEC 7 4.1.2 Comprehensive Agriculture Support Programme 52

4, REPORT OF THE ACCOUNTING OFFICER 8 4.1.3 Lima/Letsema Project grant 54

5. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY 5 DONOR FUNDS 56

FOR THE ANNUAL REPORT 9 5.1.1 Donor Funds Received 56

6. STRATEGIC OVERVIEW 10 5.1.2 Rabies Programme 56

a. Vision 10 PART C: GOVERNANCE 57

b. Mission 10 1. INTRODUCTION 58

c. Values 10 2, RISK MANAGEMENT 58

z ENTITIES REPORTING TD THE MINISTER/MEC 11 3. FRAUD AND CORRUPTION 58

4, MINIMISING CONFLICT OF INTEREST 58

PART B: PERFORMANCE INFORMATION 13 5. CODE OF CONDUCT 58

1. OVERVIEW OF DEPARTMENTAL PERFORMANCE 14 6. HEALTH SAFETY AND ENVIRONMENTAL ISSUES 58

1.1 Service Delivery Environment 14 z PORTFOLIO COMMITTEES 59

8. SCOPA RESOLUTIONS 59 1.2 Organizational environment 15

9. PRIOR MODIFICATIONS TD AUDIT REPORTS 63 1.3 Key policy developments and legislative changes 16

10. INTERNAL CONTROL UNIT 63 1.4 Departmental Revenue, Expenditure, and Other Specific Topics 16

11. AUDIT COMMITTEE REPORT 64

2. PERFORMANCE INFORMATION BY PROGRAMME 19 PART D: HUMAN RESOURCE MANAGEMENT 70

2.1 Programme 1: Administration 19 1. OVERVIEW OF HUMAN RESOURCES 70

2.2 Programme 2: Agricultural Development Services 25 2, HUMAN RESOURCES OVERSIGHT STATISTICS 71

2.3 Programme 3: Rural Development 30

3 TRANSFER PAYMENTS 48 PART E: FINANCIAL INFORMATION 125

3.1 Transfer payments to public entities 48 1. REPORT OF THE AUDITOR GENERAL 126

3.2 Transfer payments to all organisations other than public entities 48 2. ANNUAL FINANCIAL STATEMENTS 131


PART A: GENERAL INFORMATION

I LIST OF ABBREVIATIONS/ ACRONYMS

AGSA Auditor General of South Africa

AO Accounting Officer

BBBEE Broad Based Black Economic Empowerment

CFO Chief Financial Officer

MEC Member of Executive Council

HOD Head of Department

PFMA Public Finance Management Act

TR Treasury Regulations

MTEF Medium Term Expenditure Framework

SMME Small Medium and Micro Enterprises

SCM Supply Chain Management

EU European Union

SITA State Information Technology Agency

SDIP Service Delivery Improvement Plan


I FOREWORD BY THE MEC

It is with great honour and privilege that I table the Annual Report of the Department of

Agriculture and Rural Development for 2015/16 financial year, as required by the Public

Finance Management Act (PFMA) 1 of 1999, as amended.

The Department is tasked with the critical mandate of executing both agricultural and

rural development of our province. At the apex priority of this Department has been to

help reduce poverty, inequality and unemployment in the province as envisioned in the

National Development Plan (NDP), Agricultural Policy Action Plan (APAP), and Provincial

Growth and Development Plan (PGDP) among others.

The 2015/16 Annual Report of the Department of Agriculture and Rural Development,

gives a detailed account of the progress made by the department in delivering on its

mandate. The Report also highlights the challenges faced by the Department and the

steps it will be taking to deal effectively with those challenges.

During the 2015/16 financial year, KwaZulu-Natal, had continued to experience the

serious impact of drought and its accumulated effect on agricultural production and food

security. Despite this, the Department had in period review led interventions to help boost

the agricultural sector. These interventions included, the provision of input support to

farmers across the province, fast-tracking agricultural infrastructure development,

agricultural relief schemes, supporting the growth and further development of the sector.

The Department has introduced several major programmes which serve as a catalyst for

sustained agricultural reform and development. The Strategy for Agrarian Transformation

served as the guide for implementation of Departmental programmes. The strategy is

supported by four pillars which include land reform, agri-village, communal estate and

river valley which will ensure holistic agriculture production both in communal and

commercial areas.

The Department had strengthened its partnerships with organised agriculture, commod

ity associations and our communities working together for us to meet our development

goals. The Department will continue to strengthen these and other partnership as we

advance in developing a thriving agricultural sector.

MrThemba Mthembu

MEC: Agriculture and Rural Development

Date: 31 August 2016


I REPORT OF THE ACCOUNTING OFFICER

It is with pleasure to present the 2015/16 Annual Report for the Department of Agriculture

and Rural Development as required. The highlights of performance in 2015/16 of critical

implementation programs, agriculture and Rural Development are here on expressed.

The country and the province in 2015/16 were under constraints of extreme drought

agriculturally and as such performance was adversely affected and influenced. In the

implementation of the approved, current Strategic Plan, the Department was compelled

to channel a considerable portion of its resource to drought relief support initiatives

introduced during the dry season. Despite the natural disaster, significant gains have been

made in delivering services for farmers, and rural communities of KZN.

Through Management Performance Assessment Tool the Department continued to focus

on the improved administrative process and establishment of effective and efficient

management control systems. The ideal is a functional administration system institution

alised and updated as and when is required by good governance principles.

The Rural Development of the Department continued in its endeavours and plans to make

agri-parks a reality in identified districts of the Province and the establishment of such will

be pursued to completion. Stakeholder engagement has demonstrated successful in

making cooperative governance required to deliver on this mandate smooth working

relations.

Agriculture still remains one of the key economic drivers and as such forms an important

part for economic development, rural development and ultimately poverty alleviation.

The sector has huge potential for job creation and ensuring food security. The department

in the year in question has been able to create seasonal paid part-time jobs in communi

ties where projects were rolled out. The ultimate outcome pursued is the agrarian transfor

mation of the sector in the province of KZN to ensure unlocked full agriculture potential.

Rehabilitation of degraded agricultural land remained the centre of support and initiatives

in great effort of preventing and eradication of land degradation to ensure optimal land

use. This has been achieved through the commitment of the internal departmental

professional service units. Heartfelt gratitude is expressed to all stakeholders in the form of

other government departments, entities, oversight institutions, and Chapter 9 institutions

for contribution in improved operations and success in delivering on the mandates.

Dr Siphiwe Mkhize

Head of Department

Date: 31 August 2016


I STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF ACCURACY FOR THE ANNUAL REPORT

To the best of my knowledge and belief, I confirm the following:

All information and amounts disclosed throughout the annual report are consistent.

The annual report is complete, accurate and is free from any omissions.

The annual report has been prepared in accordance with the guidelines on the annual

report as issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the

modified cash standard and the relevant frameworks and guidelines issued by the

National Treasury.

The Accounting Officer is responsible for the preparation of the annual financial

statements and for the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of

internal control that has been designed to provide reasonable assurance as to the

integrity and reliability of the performance information, the human resources informa

tion and the annual financial statements.

The external auditors are engaged to express an independent opinion on the annual

financial statements.

In my opinion, the annual report fairly reflects the operations, the performance informa

tion, the human resources information and the financial affairs of the Department for the

financial year ended 31 March 2016.

Yours faithfully

Accounting Officer

Dr SF Mkhize

31 August2016


I STRATEGIC OVERVIEW

VISION

A united, sustainable and vibrant agricultural sector with thriving rural communities in

balance with nature.

MISSION

To promote, through partnerships, sound agricultural practices that stimulate economic

growth, food security and advancement of rural communities in KwaZulu-Natal.

VALUES

In order to fulfill its mission, the endeavors of the Department are underpinned by the

following values:

• Batho Pele Principles and service orientation - Departmental officials will conduct

themselves in a manner befitting a government that is caring, dedicated and

pro-poor, influenced by the spirit of ubuntu.

• Co-Operative Governance and Strategic Partnerships - the Department commits

itself to the principles of cordial inter-governmental relations and strategic partner

ships across all spheres of society, with particular focus on business and civil society

organizations as delivery partners.

• Self-sufficiency and independence - the Department commits itself to the

promotion of self-sufficiency in all its interventions and focuses on the empowerment

of people to be more independent and entrepreneurial.

• Transformation - Department is an agent of state transformation agenda to change

the historical uneven development of the South African and KwaZulu Natal society

and its policies must reflect this character at all times.

• Financial Prudence and Resource Limitations - Department is the custodian of

public funds and its policies must promote economic use of such limited funds

to achieve efficient and effective delivery of public services. Government will always

be faced with a challenge of growing public demands and limited resources to fulfil

every obligation.

• Accountability and Transparency - Department is obligated to promote good

governance by accounting and being transparent to the public, legislature and

oversight institutions for its performance and use of public resources.

• Development and recognition - The Department's employees are recognized

as its most valuable asset and therefore it aspires to ensure the on-going

development and recognition of an effective, professional team.


ORGANISATIONAL STRUCTURE

Mr. E. Habermann Acting CFO

Hon. T. Mthembu MEC: Department of Agriculture

& Rural Development

Dr. S. Mkhize Head of Department Accounting Officer

Mr. M.J. Mfusi Acting DOG: ADS

I ENTITIES REPORTING TO THE MEC

The table below indicates the entities that report to the MEC.

Mr. c. Boldogh DOG: Operations

Ms. J.G. Majola DOG: Corporate Service

Name of Entity Legislative Mandate Financial Relationship Nature of Operations

Mjindi Farming (Pty) Mjindi Farming (Pty) In terms of section 38

(l)(j) of the Public

Mjindi is responsible for

agricultural

development in the

northern estates of the

LTD Ltd was established

under the Companies Finance Management

Act 61 of 1973 (as Act 1 of 1999 province.

(as

amended), as a amended), Mjindi must

private company with provide written

the share capital.

11

assurance to

Department that the

entity implements good

financial management

and internal control

system before the

Department transfers

funds to the Entity.

Annual Report_2015/16

Agribusiness ADA was established

Development Agency in terms of cabinet

In terms of section 38 The agency provides

(ADA)

{l)(j) of the Public

resolution No. 79 of Finance Management

29 July 2009. The Act 1 of 1999 (as

agency draws its amended), ADA must

operational mandate provide written

from: assurance to the

i)The national policy Department that the

for Comprehensive entity implements good

Agricultural Support financial management

Programme {CASP). and internal control

ii) Land Reform policy system before the

guidelines. Department transfers

iii) Amended Trust funds to the Entity.

Deed for agribusiness

Development Agency.


holistic agricultural

support services to

entrant farmers,

focusing mainly on

previously

disadvantaged farmers.

ADA.

PART B: PERFORMANCE INFORMATION

1. OVERVIEW OF DEPARTMENTAL PERFORMANCE

1.1 Service Delivery Environment

During the year under review, the Department pursued mandates over two critical sectors in the

province, namely, Agriculture and Rural Development. The 2015/16 year marked the end of the

strategic cycle, where priorities and outcomes pursued for the corresponding administration

were concluded. Through various priority projects, the Department provided critical services

communities across the province.

Table 1: Core Services and Products of the Department

SERVICES PRODUCTS

Agriculture Crop production, livestock farming, aquaculture, natural resources use and

management and land reform (a national competency but supported by the

Department at provincial level), extension, and care, and agricultural research.

Veterinary Animal disease control, prevention of zoonotic diseases, inspection services and

Services primary health care services.

Agriculture remains one of the most important sectors through which government has

committed to change the social and economic outlook of South Africa. In KwaZulu-Natal,

farming is one of the major contributors to the provincial economy.

Agriculture in its basic form is a business where the farmer buys inputs, uses these inputs with

her/his skills, knowledge and abilities to produce a product that he/she then sells to a market

place. Due a lack in some of these skills, knowledge and abilities including other very important

issues such as availability of finances and decision models farming is failing in the rural areas.

The lack of success in the rural areas can thus be accounted to among other factors to such as

the lack of adapted business models and principles for commercial agricultural production.


This is further exacerbated by the fact that farmers duties relate to "farm employees" which are

not clearly defined, resulting in the lack of accountability.

Farmers lack farming skills to utilize the existing land to fullest capacity that lead to incorrect

farm usage has caused vast farm areas to experience soil erosion, thus significantly reducing

yields and profitability. Furthermore, cultural and generational beliefs result in a lack of

commitment and willingness to farm, which have resulted in the under-utilization of farming

land.

Many farmers do not keep basic accounting and farming records of farm operations. This makes

it very difficult for farmers to apply for funding to expand or improve farm operations through

investment. This further leads to farmers not being able to afford to pay for services to

successfully operate a commercial agricultural business (electricity, water, maintenance of

irrigation etc.), due to financial constraints. Cultural and generational beliefs result in a lack of

commitment and willingness to farm, which have resulted in the under-utilization of farming

land. Some farmers prefer to obtain employment in other sectors of the economy, which may

result in the abandonment of farms.

The implementation of the Occupational Specific Dispensation in respect of Legal Officers has

proven to be prejudicial in relation to the appointment of skilled and experienced legal officers

within the component. The commencing salary levels are not commensurate with the years of

experience of legal practitioners who are attempting to be employed in the public service.

Accordingly it becomes difficult to appoint experienced individuals as they are not willing to

accept the salaries being offered to them.

1.2 Organisational environment

During the reporting period the department has undergone a restructuring process of the

department so as to ensure optimal service delivery to the external clients. The structuring

process was spearheaded by the development of the Strategic Plan which set the scene for a

revised line functionary strategy. Emanating there from, was the development of Line

Functionary policies which the developed organization structure was aligned to.


The organization structure was to provide a 5 year plan for a sustainable and vibrant agricultural

sector with the added Rural Development portfolio to ensure thriving rural communities within

the province. The structure was approved by the MEC on 23 July 2015.

The structure made provision for improved service delivery models which resulted in the

following major benefits:

• It was ensured that a single specialist competent authority would be provided for each

discipline or accountability, eliminating duplication and fragmentation of services.

• A rigid reporting line directly from Districts (where all implementation take place) to the

Head Office, where policy, co-ordination, planning, control and monitoring will take place.

• Shorter decision making processes by removing Regional Services.

The structure is in the process of being implemented.

1.3 Key policy developments and legislative changes

The Agricultural Development Policy has influenced operations in agricultural development

services. This Policy brought about major changes to the Mechanisation Programme which was

adopted by the Department a few years ago. Previously the Department owned a fleet of

tractors and implements; and provided free ploughing and planting services to farmers.

According to this Policy, the department no longer owns the fleet of tractors but the

mechanization equipment is being transferred to Communal Estates. The farmers are

encouraged to farm for themselves in order to grow in the agricultural sector. However, the

Department will repair, service and maintain the mechanization for a period of 3 years as from

2015/16. This has positively influenced the operations since the farmers are now in charge.

The Corporate Governance of ICT Framework and Charter were reviewed and approved by the

Head of Department. The Business Continuity Plan was reviewed and approved by the Head of

Department. The Information Security Management System was developed in line with ISO

27000 standards.


A new criterion was introduced in terms of the Management Performance Assessment Tool

(MPAT) relating to the implementation of the Promotion of Administrative Justice Act within the

Department. The implementation of this criteria placed additional obligations on the

Department generally and the directorate in particular. The Department was had to nominate/

assign a PAJA coordinator, amongst others, to keep a register of its administrative decision

making areas and applicable decisions and coordinate the promotion, monitoring and evaluation

of its implementation of the PAJA. This necessitated the formation of a steering committee with

the relevant officials who are exercising legislative powers in terms of delegations given to them

in terms of certain national laws. The said officials had to also be sensitised to the requirements

of PAJA and their decisions had to be reviewed to ensure the alignment thereof with the

requirements of the Acts that they were administering as well as the requirements of PAJA.

The introduction of the Strategy for Agrarian Transformation in KwaZulu-Natal has also

necessitated the drafting of new agreements and the review of existing agreements to ensure

that they are aligned to the requirements of the policy provisions.

1.4 Departmental Revenue, Expenditure, and Other Specific Topics

1.4.1 Collection of Departmental Revenue

The table below provides the summary of the departmental receipts for 2014/15 and 2015/16

financial years by type of receipt. The total actual revenue for 2015/16 exceeded the estimated

revenue by R420 OOO or 1.8 per cent. Departmental revenue decreased from R32.267 million in

2014/15 to R23.712 million in 2015/16.

This decrease is mainly due to high proceeds under the sale of capital assets in 2014/15 due to

the proceeds for sale that took place in 2013/14 were only receipted in the 2014/15 financial

year. The department undertakes an auction of redundant assets at least annually. In essence,

this means that the 2014/15 revenue reflects the proceeds from the sale of redundant assets for

two financial years. The revenue collected for 2015/16 was over collected by R420 thousand.

Reasons for this over collection are provided by category as follows:

• Sale of goods and services other than capital assets under-collected by Rl.051 million. This

category comprises mainly of receipts relating to the laboratory samples, rendering of

academic services such as registration, tuition fees and accommodation at the department's


agricultural colleges. The under collection is largely attributable to the drought as farmers

are sending fewer soil samples to the department's laboratories for analysis prior to planting

season.

• Interest, dividends and rent on land collected R27 OOO against the budget of R21 OOO

relating to staff debts. The budget was based on previous years' trend.

• Sale of capital assets collected an amount of R3.322 million against the budget of R3 million,

due to higher than anticipated proceeds from the sale of redundant assets.

• Transactions in financial assets and liabilities exceeded projections substantially by Rl.142

million. This relates mainly to the recovery of over payments made in previous financial

years for instance, repayment from staff debts such as salary overpayments, bursary

breached contracts, etc. It is difficult to project for this category due to its uncertain nature.

Departmental Own Receipts by main revenue category

Sale of goods and services other

than capital assets 16 981 19 520 (2 539) 19 771 18 720

Fines, penalties and forfeits

Interest, dividends and rent on

land 20 369 (349) 21 27

Sale of capital assets 3 801 10 594 (6 793) 3 OOO 3 323

Financial transactions in assets

1 051

(6)

(323)

and liabilities 500 1 784 (1 284) 500 1 642 (1 142)

TOTAL 21 302 32 267 (10 965) 23 292 23 712 (420)


Tariff policy

The Department reviewed the fees charged for services rendered and where possible aligned

the fees with national and provincial norms. The review was done in consultation with all

relevant role players and submitted to the Provincial Treasury for approval. The approved fees

for the 2015/16 financial year was circulated for implementation with effect from 1 April

2015.The tariffs will be reviewed on an annual basis as part of the budget process and the

revised tariffs will be implemented on 1 April of every year.

Free Services

The Department does not provide free services, except extension services.

2. PERFORMANCE INFORMATION BY PROGRAMME

2.1 Programme 1: Administration

The main role of the service renders by Programme 1 is to provide support to the line function

components of the Department in achieving their goals. The focus for Programme 1 is the

provision of Finance, Corporate and Strategic Support Services to the Department.

MEASURABLE OBJECTIVES

• To provide efficient and effective advisory and support services to the MEC.

• To establish and implement policy development and strategic management system within

the Department.

• To establish a fully integrated corporate service function that delivers effective and efficient

services.

• To ensure that the Department complies with its legal mandate and is effetively protected

from legal risk exposure.


• To provide quality human resources management and development services to the

Department.

• To ensure effective financial resources management that complies with the PFMA.

• Development and maintenance of effective, efficient and transparent financial management

systems.

• To ensure effective management of Departmental assets.

• To provide effective management and advisory services.

• To provide an effective monitoring and evaluation system for the Department.

• To ensure that the Department is effectively integrated and positioned through corporate

communications.

OVERVIEW OF PROGRAMME PERFORMANCE

OFFICE OF THE MEC

The Office of the MEC provides ministerial support functions to the MEC for Agriculture and

Rural Development. The Department continued to forge links with the community of KwaZulu

Natal, including organized agriculture, Amakhosi, farming communities and various other

institutions. This was very critical as the Department prepared to launch its transformation

strategy, which set to redefine agricultural activity in the province.

OFFICE OF THE HEAD OF DEPARTMENT

The purpose of the Office of the Head of Department is to provide strategic and supportive

leadership, ensure compliance to legislative imperatives and good governance, guide the policy

direction of the Department and oversee the use of state resources. The Head of Department

was appointed in June 2015.


CORPORATE SERVICES

Organizational Structure

As indicated under organization environment above, the department has undergone a major

restructuring process to ensure improved service delivery to the external clients. Since the

approval of the structure, 95% of newly created or redefined posts were job profiled and job

evaluated to determine the correct salary level. To ensure smooth transition from the old to the

new structure process mapping is provided a high priority, while the Human Resource, SCM and

Financial delegations have been reviewed.

Legal Services

Notable achievements of the directorate in this reporting period has been the scoring of 4 that

the section has achieved in terms of the Management Performance Assessment Tool (MPAT)

with regard to the implementation and adherence to the provisions of the Promotion of Access

to Information Act and the Promotion of Administrative Justice Act within the Department.

Notwithstanding the fact that the implementation of the requirements of PAJA was newly

introduced in all Departments at short notice, the directorate was able to successfully initiate

various interventions to ensure adherence to all the requirements as prescribed in terms of

MPAT.

Information Communications Technology

The Department undertook to implement the new ICT structure thereby appointing the Senior

Manager: ICT, the purpose being to provide strategic leadership with regards to ICT Governance,

Systems and Operational support. The governance sub-component was activated to improve the

implementation of the Corporate Governance of ICT framework and effectively manage ICT

Governance. This has enabled the unit to improve MPAT scores and AG audits. In terms of the

implementation of the ICT Charter, the relevant committees were constituted to effectively

manage ICT in the Department.

Integrated Human Resource Management

The new organizational structure was successfully implemented. Placement Models which

guided the placement for employees at all salary levels were developed and approved during

November 2015 and the matching and placing process subsequently commenced.


All staff was successfully migrated from the old structure to the new structure as at 31 March

2016 and to date 2103 staff members have been appropriately placed.

Monitoring and Evaluation

Compliance was maintained for all planning and reporting activities as required in terms of

Treasury Regulations and the PFMA. Quarterly reviews were held with the Portfolio

Committees, sector Departments and Treasury (including the Audit and risk Committee).

The Department maintained its systems to ensure accurate planning, implementation and

reporting is achieved by the Department in 2015/16.

A policy register was introduced which tracked the status of all Departmental policies. Updates

are made when policies are formulated and/ scheduled for review.

FINANCIAL MANAGEMENT

The Finance Branch has a mission to support the Department to improve and ensure compliance

with PFMA, Treasury Regulations, SCM policies and any other relevant prescripts which will

results in clean administration and give public confidence that the public funds are utilized in an

appropriate and transparent manner that will improve service delivery.

The revised organisational structure provides for the Finance Chief Directorate and comprises of

the Office of the Chief Financial Officer, four Directorates and one Sub-directorate as follows:

a) The Office of the Chief Financial Officer: responsible for providing financial, technical,

strategic and leadership support to the entire Department.

b) Directorate Management Accounting Services: Manage budget and revenue planning,

control and reporting.

c) Directorate Financial Accounting and Administration Services: Provides expenditure and

creditor management, bookkeeping, loss control, banking, financial systems development

services as well as salary administration, financial administration and reporting services.

d) Directorate Asset Management: responsible for fleet management, infrastructure

management and moveable asset management services.

e) Directorate Acquisition, Demand, Supply and Logistic Management: Provides contract

development, bids administration, demand, supply and logistic services to the department.

'll. Annual Report_2015/16

f) Sub-directorate Internal Control: This sub-directorate is responsible to ensure adequate

internal controls are in place and implementation of corrective measures in terms of financial

risks and audit findings.

Highlights for 2015/16 Financial Year:

Compliance was maintained for all planning and reporting activities as required in terms of

Treasury Regulations and the PFMA. Quarterly reviews were held with the Portfolio Committees,

sector Departments and Treasury (including the Audit and Risk Committee). The finance branch

implemented an audit action plan to address the findings of the Auditor-General and Internal

Audit findings in its commitment towards a clean audit. The Assets and Fleet Management unit

ensured that the Department's fleet is well maintained and that the asset register accurately

reflects the Department's movable assets. Despite numerous challenges, the Supply Chain

Management unit was committed in providing the support and services to create an enabling

environment for service delivery particularly during the procurement for the drought relief

interventions provided by the department.

Expenditure by sub-programme: Administration

OfficeofMEC 20,756 17,968 2,788 14,144 14,129

Senior Mana ement 28,386 27,492 894 31,238 31,238

15

Co rate Services 168,429 167,271 1,158 225,495 201,514 23,981

Fi nancial Mana ement 84,515 64,957 19,558 75,454 69,089 6,365

Com munication s 32,125 24,153 7.972 25,793 25,791 2

TOTAL 334,211 301,841 32,370 372,124 341,761 30,363

The under expenditure of R30.363 million is due to the following:


• R1 ,646 million as a result of the moratorium on filling posts until the matching and placing of existing

staff into the new organisational structure is finalised.

• R12, 168 million in respect of the migration from Novell to Microsoft not being finalised as anticipated.

• R955, OOO relates to the fact that the payment to Public Service SETA did not materialise as this

payment is now managed at a national level.

• R15,594 million relates to Machinery and equipment, mainly as a result of vehicles ordered but not

delivered of RS.023 million, as well as the delay in the migration from Novell to Microsoft resulting in the

server not being acquired as planned, amounting to R10,571 million.


PROGRAMME 2: AGRICULTURAL DEVELOPMENT SERVICES

PURPOSE AND OVERVIEW

The main purpose of the Agricultural Development Services branch is to engage,

empower and transform farmers at all levels to participate in sustainable agricultural

and environmental practices in order to realize economic development and food

security in the Province.

The branch also played a pivotal role on the implementation, monitoring and evaluation

of departmental programmes/ projects in line with departmental policies and strategic

objectives.

The year 2015/16 exposed the province to severe drought, with most areas having less

than 7000mm of rainfall per year.

This report articulates progress and achievements of the programme. Challenges and

lessons learned are also highlighted. Most importantly, this report presents a way

forward of this programme in line with the new agricultural development approach

recently adopted by the Department.

Communal Estates Programme

During 2015/16 financial year the Department of Agriculture and Rural Development

has established 122 Communal Estates across the Province of KwaZulu-Natal. 198

Tractors have already been transferred to these communal estates. Maize and bean

production in the province was severely affected by drought in 2015/16. Fewer hectares

were planted than anticipated. The Department planted 4 258 ha of beans and 5 608 ha

of maize during 2015/16 .

River Valley Programme

During the 2015/16 financial year, the department did not meet its targets on the

implementation of irrigations schemes due to the drought situation in the province. The

department managed to plant 159 ha of vegetables.


Infrastructure Projects

The Department implemented various infrastructure projects comprising dams, diptanks

and boreholes across the Province. The detailed Close-Out Report is available from the

Office of SGM: ADS. During 2015/16, the department has implemented 75 dams at a

cost of R26 million. Out of 75 dams, 12 dams are already completed. The Department

also established diptanks and boreholes across the Province. A total of 6 piggery and 8

poultry projects were completed.

Foot and Mouth Disease

Consulting Engineers were appointed through IDT and 4 contractors are on site.

The R76, 019 million FMD Redline fencing project is nearing completion with 96 kms of fence

line erected, together with associated vehicle and pedestrian gates. An adjacent gravel patrol

road is nearing completion with 98 kms completed and 30 guard houses are completed.

Rabies

Unlike in other provinces, in KZN the animal species which is a rabies vector has always

been domesticated dog. However, since January 2015 well into March 2016, 36 positive

rabies cases were reported and half of that have been outbreaks amongst jackal

population in the midlands. This is being monitored and measures to confine it in the

affected areas have been put in place with the hope that the disease fizzles out without

it spilling over to other animals. The insurgence of rabies amongst wild animals is of

concern in that unlike domesticated ones, they are difficu It to vaccinate.

Veterinary Diagnostic Services

During the report period the two laboratories i.e. Allerton and Vryheid generated

revenue in excess of Rl,5 million despite the glitches of procurement of reagents earlier


in the year. The problem earlier in the year was that the reagents used at the laboratory

are supplied by sole suppliers.

Makhathini Development Projects

The Department implemented the following projects as a part of Makhathini

Development:

• Irrigation Canal - R2 million

• Surface Drainage Scheme - R24 million

• Rehabilitation of Balamhlanga Pan - Rll.5 million

• Expansion of Makhathini Irrigation Scheme - R2 million

• Development of Nondabuya/Kwela Irrigation - R2 million

• Development of Skhakha irrigation - R5 milllion

• Development of Mbangweni - Rl million

Research & Technology Development

The Department targeted 72 research and technology development projects to improve

agricultural production in the Province but has performed above the target by achieving

92 projects which were implemented during 2015/16.

Agriculture Skill Development Training

The Department has established a Departmental coordination forum in order to have a

comprehensive Departmental Training Plan for a more coordinated training approach.

The update report is based on the training that was only conducted through ASD and

excludes the sessions that are conducted by other sections through outsourced service

providers:

(ii) 352 farmers trained by OSCA

(iii) 327 farmers trained by Cedara


Revitalisation of Agricultural Schools Programme

The MOU between Department of Agriculture and Rural Development and Department

of Education was entered into. The funding agreement with Zakhe Agricultural College

is in place. The first tranche payments effected for 5 schools (Weston, James Nxumalo,

Shakaskraal, Vryheid Landbou and Zakhe Agric College).

Drought Intervention Programme

The Province of KwaZulu-Natal has been affected by a severe drought in the 2015/16

financial year where the department of Agriculture and Rural Development had to

intervene with measures including animal feed, deworming and hay(7 454 tons of

Lucerne and Teff).

Expenditure by sub-programme: Agriculture

Sustainable Resource Management 79,655 77,460 2,195 75,492 75,492

Farmer Support and Development 1,253,807 1,167,294 86,513 1,381,999 1,326,626 55,373

Veterina Services 183,047 182,517 530 169,450 163,086 6,364

Research& Technology Development 171,693 169,990 1,703 182,490 181,914 576

Agricultural Economic Services 6,561 6,262 299 6,070 5,699 371

Structured Agricultural Education and Trainin 102,072 97,680 4,392 102,859 102,718 141

TOTAL 1,796,835 1,701,203 95,632 1,918,360 1,855,535 62,825


The under expenditure of R62.825 million can largely be attributed to the following:

• R1, 877 million as a result of the moratorium on filling posts until the matching and placing of

existing staff into the new organisational structure is finalised.

• R10, 276 million in respect of animal feed and medicines ordered but not delivered and paid for by

31 March 2016. This includes additional fodder for drought relief to small scale and subsistence

farmers.

• R19.873 million in respect of lower than planned transfers to Communal Estates that were

established by the consolidation of adjacent parcels of land into viable farming units and the

establishment of commercial farming operations by the land owners in partnership with government

due to limited farming activities, as a result of the drought as well as slower that anticipated

progress on a hatchery project supported by the department.

• R30.799 million under Payment for capital assets as a result of slower than anticipated

implementation of drought relief interventions such as boreholes, stock watering dams and dip

tanks due to high demand and short supply for service providers due to drought amounting to

R27.733 million as well as vehicles ordered but not delivered amounting to R3.066 million.


PROGRAMME 3: RURAL DEVELOPMENT

The programme seeks to ensure the coordination of vibrant, equitable and sustainable

government services to rural communities in KwaZulu-Natal. It is made up of two sub

programmes namely Rural Coordination and Social Facilitation

PROGRAMME PRIORITIES

The Rural Development programme has six main priorities which respond directly to the

intended outcome of the mandate, which seeks to achieve "vibrant, equitable, sustainable rural

communities contributing towards food security for all". These priorities will be the focus of the

coming MTSF period:

1. Improved land administration and spatial planning for integrated development in rural

areas.

2. Sustainable land reform (agrarian transformation).

3. Improved food security.

4. Smallholder farmer development and support (technical, financial, infrastructure) for

agrarian transformation

5. Increased access to quality basic infrastructure and services, particularly in education,

healthcare and public transport in rural areas.

6. Growth of sustainable rural enterprises and industries characterised by strong rural-urban

linkages, increased investment in agro-processing, trade development and access to markets

and financial services - resulting in rural job creation.

The Department seeks to make significant strides towards achieving the long-term objective of

government, where rural areas will be spatially, socially and economically integrated across the

three spheres of government. The objective further aims for a state where rural communities

will be economically active, have access to basic services, health care, quality education, food

security and jobs as a result of agrarian transformation and infrastructure development

programs.

The branch was consistent in providing all monthly, quarterly and annual reports as required by

the various planning processes. This has been supported and complemented by the established

KZN Interdepartmental Task team. In this regard the department hosted two (2) task teams

during the year and held meetings with relevant departments and the PGDP Action Working

Groups to share the Outcome 7 strategies. This has resulted in a comprehensively consulted and

aligned KZN Outcome 7 plan for 2016/17 financial year.


The branch was tasked the provincial responsibility for co-ordinating the provinces Agrivillage

initiative in Emadlangeni. It successfully took on this task and managed the involvement of all

local and government stakeholders. This has resulted in a co-ordinated and integrated human

and agricultural settlement planning approach which will see fruition in 2016/17.

The branch together with the national DRDLR launched the national agriparks strategy in KZN at

provincial and district level. All districts are participating effectively in the roll -out with

established task teams and integrated strategy plans. The interdepartmental structure at

provincial level has met, planned and reviewed progress monthly. Wide scale consultations with

smallholder farmers in the districts has occurred.

The Department supported the Provincial champion of the Comprehensive Rural Development

Programme will all the relevant reporting, monitoring and evaluation reports.

In transition from the old to the new structure, the branch remained responsible for supporting

youth and women development programmes and events. The branch supported the successful

hosting of the National Female Entrepreneur Awards, Youth Summit for unemployed

agricultural graduates and provided a Skills Programme for Entrepreneurial Development of

women.

Expenditure by sub-programme : Rural Development

Rural Development Coordination Social Facilttation TOTAL

1,173 1,089 822 802

1,995 1,891

The under-expenditure of R104 OOO is in respect of Compensation of employees and related costs in

respect of vacant posts.


84

20 104

Annual

Output I Strategic Objective Actual

I Output2014/15

Legal Services I I

ITC I Provide effective I and corporate and strategic support

IIntegrated Human I services to MEC,Resource Management HOD and the

Department

�I

Monitoring and 1 Evaluation

Management Advisory N/A

Services

Acquisition, Demand and Logistics 1

Asset Management

Provide effective, 1 efficient and

Financial Accounting I transparent financial 85%and risk Management Accounting I management

systems. 12

Internal Control and Risk I 11

ANNUAL Performance Measures TARGET

2015/16

CORPORATE SERVICES

Number of Legal 85 I Contracts and opinions

finalized

0 I Approved knowledge Management Strategy

21 No. of HR policiesdeveloped

4 No. of performance reports compiled

Approved HR Plan

FINANCIAL MANAGEMENT

Approved procurement -

plan.

Approved Infrastructure Project Management Plan (IPMP). Number of invoices paid within 30 days.

Number of In year Monitoring reports submitted

I Approved Risk Register

ACTUAL OUTPUT

2015/16

Variance between planned targets and actual I Comments on deviationsperformance achieved

Clients demanded more legal contracts and opinions than planned

Identified gaps necessitated development of policies

More invoices were processed and paid.

�I I

PROGRAMME 2: Agriculture Development Services

Output

Engineering Services

Infrastructure

Annual

I Strategic Objective Actual

I Output 2014/15

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

I

Performance Measures

SUSTAINABLE RESOURCE

Number of agricultural 12 I engineering advisory

reports prepared

Number of designs with

75 specification foragricultural engineering solutions provided

100 I Number of agricultural infrastructure established

40 No. of diptanksrehabilitated.

so Number of boreholes established

50 I No. of Irrigation schemesrehabilitated

ANNUAL TARGET 2015/16

ACTUAL OUTPUT

2015/16

Variance between planned targets and actual I Comments on deviationsperformance achieved

Demand driven

Demand driven

Delayed award of infrastructure projects contracts. Delayed award of infrastructure projects contracts. Delayed award of infrastructure projects contracts.

Project design stage was extended due to technical requirements.

new Land Use I I

indicator

il I I new indicator

new indicator

n/a I I

Disaster Risk

Management I I New indicator

30 I No. of Irrigation schemesdeveloped

85 I No. km of fencingerected

Number of hectares of agricultural land

200 I protected throughguiding subdivision / rezoning / change of agricultural land use

Number of Natural I resource assessmentcompleted

I No of hectares surveyed for soil classification

No of hectares surveyed

I for vegetation management.

1

Number of disaster relief schemes managed

I Number of disaster riskreduction programmes managed

Most of the projects were still at design stage.

Delayed award of fencing contracts.

Few applications required subdivision and change of land use.

There was a need for additional assessments to be conducted following drought incidents in the province.

Underachieved due to directive to undertake drought assessments for 8 weeks. Hectares assessed for grazing capacity Nambiti and hectares assesssed for biomass only - drought mitigation

-Demand-driven

SWAS and ARDM had additional Workshops on climate and weather.

Land Care I

Outputs I Strategic Objective

�I I I

To provide support to farmers through agricultural development programmes

Specialist Agricultural

Advisory Services

Annual

Actual

I Output

2293 No of green jobs createdthrough Land Care.

Number of hectares

6500 I protected/ rehabilitatedto improve agricultural production


2014/15

I

FARMER SUPPORT AND

I Number of smallholder

100 producers receiving support

22 Number of commercialfarmers supported

Number of scientific 90 evaluation reports on

commodity based project

Number of on farm22 research report

Number of scientific

60 I value adding reports ondiversified agricultural products

ACTUAL

ANNUAL OUTPUT

TARGET

201S/16 I 2015/16

Variance between

planned targets

There was an increase in the number of project beneficiaries, which resulted in more jobs being created.

A total of 26 additional projects were approved. This increased the number of hectares rehabilitated.

and actual I Comments on deviations

performance

achieved

due to prevailing draught conditions

due to prevailing draught conditions

Fewer projects evaluated due to prevailing drought conditions

Limited personnel capacity led to under-achievement of target

Limited personnel capacity led to under-achievement of target.

Mentorship

N/A

N/A

I I

�IExtension Services and

I advisory I I

N/A

N/A

Crop Production I I

110

30

Number of agricultural

business plans supported

No of projects mentored

(constant)

Number of smallholder

producers supported

with agricultural advice

Number of hectares

I under irrigation used by

smallholder farmers I

I

I Number of jobs created

Number of communal I estates established.

Number of hectares of

14375 I maize established under

the Mechanisation

Programme

Indicator

demand.

is based on

Fewer projects were

implemented in 2015/16.

Target exceeded due to

drought relief programme.

Target could not be met

due to severe drought.

Drought prevalence

delayed the communal

estate programme.

Funds available could

accommodate the

establishment of 122

communal estates. The

remainder would be held

in reserve for 2016/17.


due to severe drought

5:::3

Food Security

5850

New

indicator

New

indicator

New

indicator

300000

New

indicator

100


beans established under

the mechanisation

Programme


vegetable established


chicory established under

mechanization

programme


ground nuts established

under mechanization

programme

Number of households

benefiting from

agricultural food security

initiatives

Number of hectares

cultivated for food

production in communal

areas and land reform

projects

No. of community

gardens established

Because of the drought,

commodity was changed

from maize to dry beans in

some districts




due to severe drought .

Underachievement was

due to severe drought

. Seed has been kept for the

coming season.







80 000

350

212

Annual

I Outputs I Strategic Objective I Actual�I Output

2014/15

To provide New Animal Health I veterinary services indicator

to clients in order to ensure healthy animals, safe animal

Export Control products and

I wellfare of people of n/a

South Africa

No. of household gardens established

No. of tunnels established

I No. of institutional gardens supported


ANNUAL

TARGET

2015/16

Veterinary Services

Number of epidemiological units visited for veterinary interventions

Number of clients serviced for animal and animal products export control

ACTUAL

OUTPUT

I 2015/16

Variance between

planned targets

Target could not be met due to severe drought.

Projects were reprioritized and funds initially allocated for tunnels were used towards the establishment of communal estates.

Target could not be met due to severe drought.


performance

achieved

Large contribution from Rabies vaccinations

More clients required services.

Policies, norms and

% level of abattoir standards are still being

n/a I compliance to meat negotiated with the industry; but facilities do

safety legislation meet the minimum standards.

Veterinary Public health I I I Number of inspections to There were fewer

450 facilities processing registered abattoirs. This animal products and by resulted in a reduction in products. the number of inspections.

Number of inspections to Fewer facilities complied

500 I further processing with legislated

facilities requirements to allow

� I INumber of veterinary

n/a laboratory quality control Shortage of relevant

Veterinary Laboratory audits which meets the reagents.

services ISO 17025 standard.

170000 No of tests performed Demand driven

�

Outputs

Research services and

technical development

Infrastructure and

Support Services

Technology Transfer

Services

Strategic Objective

To provide experts

and needs based

research,

development and

technology transfer

services impacting

on development

objectives

To provide and

maintain

infrastructure

facilities for the line

function to perform

their research and

other functions

To disseminate

information on

research and

technology

Annual

Actual

Output

2014/15

69

34 200

New

indicator

22


ANNUAL

TARGET

2015/16

ACTUAL

OUTPUT

2015/16

Technology Research and Development Services

Number of research and

technology development

projects implemented to

improve agricultural

production

Number of samples

analysed.

Number of research

infrastructure managed

Number of scientific

papers published

nationally or

internationally

Variance between

planned targets


performance

achieved

More projects were

completed and

implemented than

anticipated.

Indicator is mainly demand

driven. Target for the year

was under-set and

reconsidered later.

Target for the year was

reconsidered.

�

Outputs

Agri-business Support

and Development.

development to

clients, peers and

scientific community

Strategic 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.

Annual

Actual

Output

2014/15

8

20

2000

new

indicator

Number of research

presentations made

nationally or

internationally


ANNUAL

TARGET

2015/16

Agricultural Economics

Number of Agri

Businesses supported

with agricultural

economics advice

towards accessing

markets

Number of clients who

have benefttted from

agricultural economic

advice provided.

Number of functional

agro-processing facilities.

ACTUAL

OUTPUT

2015/16

Variance between

planned targets

The output is based on

demand. More

presentations were

requested during the

reporting period.


performance

achieved

There were fewer requests

for advice received.

The shortfall is due to

delayed rainfall.

this is still work in progress

;!;;

Macro-economic

Support

Outputs

HET

Further Education and

Training

Strategic Objective

To provide tertiary

agricultural

education and

training from NQF

levels 5 to anybody

who meets the

minimum

requirements to

study in agricultural

and related fields.

To provide formal

and non-formal

training on NQF

levels 1 to 4 through

FET Structured

n/a

Annual

Actual

Output

2014/15

New

indicator

New

indicator

102 Number of enterprise

budgets published


200 I economic information

responses provided.

Number of economic

reports compiled.

ANNUAL

Performance Measures I TARGET

2015/16

Structured Agricultural training


Higher Education and

Training graduates

Number of participants

trained in agricultural

skills development

programmes.

ACTUAL

OUTPUT

2015/16

Variance between

planned targets

Demand driven

Demand driven


performance

achieved

One student did not meet

the requirements

Demand driven

Outputs

e;

Education

programmes to all

interested

agricultural role

players.

Strategic Objective

Monitoring of rural

development

interventions.

New

indicator

New

indicator

Annual

Actual

I Output

2014/15

New

indicator

I

I New

indicator

New

indicator

Number of interventions

in revitalization of

agricultural schools

programme.

Number of interventions

in schools programs.


ANNUAL

TARGET

2015/16

Rural Development

Provincially agreed Rural

IDevelopment plan with

annual targets for each of

the 6 priorities

I

I Integrated stakeholder

management strategy

finalised.

Quarterly KZN

Interdepartmental Task

Team (KITI) meetings

overseeing CROP.

ACTUAL

OUTPUT

2015/16

Variance between

planned targets

and actual

performance

achieved

Most of work in schools

was done through food

security program and land

care

Comments on deviations

Process commenced in

2014 but still draft.

Two were postponed due

to non-availability of key

members and OARD co

ordinator.

�

RURAL COORDINATION Improved Land

Administration And

Spatial Planning For

Integrated

Development Of

Rural Areas

New

indicator

New

indicator

New

indicator

New

indicator

New

indicator

Effective functioning

I nterdepa rtmenta I

Technical Team

supporting KITI (monthly

meetings).

% of external and internal

stakeholder contributing

to Rural development

plan implemented.

Number of

Development

produced

Rural

reports

Provincial SDF reviewed

District

produce

Municipalities

Rural

Development plans

aligned to SDFs and

PGDP's

Meeting with national

DRDLR held but

establishment of technical

team delayed due to non

availability of DARD co

ordinator.

Contributions from AWG

8, 1, 18, 6, and from DoH,

and EDTEA ICT, and DHS,

and DRDLR, and COGTA.

Reporting system still being

developed.

Indicator is on track

This is driven by Planning

Commission and is

currently underway. To be

completed by August 2016

Lekgotla.

�

Rural Development

Sustainable Land

Reform

Rural infrastructure

development

New

indicator

New

indicator

New

indicator

New

indicator

New

indicator

Number of Municipalities

implementing Spatial

Planning and Land

Management

(SPLUMA).

District Land

Agricultural

established

functioning

% of agricultural land

identified for

redistribution per district.


land purchased for

agricultural for

agricultural development

Agreed provincial and

district rural

infrastructure APP

More were done due to

cooperation of district

officials

This was to be done

through the DLRC which

were only formally

established in Dec 2015.

Not available from DRDLR

Sip 11 has been compiled

for KZN. Further

engagement is required

with OTP with regards

provincial co-ordination

around rural infrastructure

plans is required.

� Rural enterprise

development for job

creation

New

indicator

New

indicator

New

indicator

New

indicator

New

indicator

Consistent and accurate

reporting on rural

development

infrastructure

implementation

Rural Enterprises and

Industrial Development

Strategy developed and

agreed to

Support DMs to host

Rural Development

partnership investment

affairs

Number of Agri-

Parks/ Agri-Villages

established

Number of River Valley

projects sites identified

and planned

Only includes Sip 11 to

date.

Currently engaging

stakeholders. Slow

progress affected by

capacity of team.

Concept document

drafted and approved by

HOD.% to take place in last

quarter.

Agrivillage affected by

enviro issues and buy in

from farm dwellers,

Agriparks - all 10 districts

have basic plans ready for

construction

implementation to

commence.

Co-ordination with ADS

branch required to avoid

overlap/ duplication in

reporting and planning.

:!::;

New

indicator

New

indicator

Number of enterprises

and indu�ries supported

in rural development

initiatives (agriculture

and other sectors) by

government

stakeholders.

Number of jobs created

through rural enterprises

The branch is only able to

review its own support

given to various initiatives

at present: Marula,

Aquaculture lmbizo,

lntshelenhlahla Project

This target requires

improved system of

monitoring and reporting.

3. TRANSFER PAYMENTS

3.1 Transfer payments to public entities

The Department had one public entity and one government business entity reporting to the Department during 2015/16 financial year. The entities produce their own separate annual reports that provide details of their mandates, outputs and achievements. The purpose of the entities is as follows:

Agri-business Development Agency (ADA) is the public entity providing the vehicle to grow the agricultural sector and improving access for black commercial farmers and agribusiness entrepreneurs through partnership and knowledge. During the year, the mandate of the entity was defined to focus on secondary agricultural interventions whilst the department will focus on primary agriculture, thereby ensuring that there is no duplication of functions between the department and agency.

Mjindi Farming (Pty) Ltd (Mjindi), a government business entity assists in the management and implementation of the Makhathini Integrated Master Development Plan which includes: • Repair and upgrading of the existing 3 500ha currently under irrigation;• To sustain the Makhathini Irrigation Scheme as a viable and sustainable Farmer Settlement

Project;• To transform Mjindi Farming (Pty) Ltd into a land user/ landowner/ farmer driven entity;• To assist with the planned and approved expansion of the Irrigation Scheme to for the settlement

of additional farmers;• To assist and support the Shareholder with the planning and implementation of the Makhathini

Integrated Master Development Plan; and• Explore and facilitate new agri-business opportunities on the irrigation scheme.

The Department monitors the progress and performance of these entities through quarterly reviews of financial and non-financial performance by the steering committee established and chaired by the Head of Department. The Department also has representation at board meetings.

Transfers to Public and Government Business Entities

Agri-Business Development A enc ADA

Mjindi Farming (Pty) Ltd

Agricultural 50,506 development and management of irri ation scheme

41,373 9,133

TOT AL 150,006 119,496 30,510

The under expenditure by ADA and Mjindi is in respect of outstanding commitments where the goods/services had not been rendered and paid for by 31 March 2016 . The entities have requested that the funds be rolled over to the 2016/17 financial year to meet these commitments.


Reasons for the funds unspent by the entity

3.2 Transfer payments to all organisations other than public entities

The Department made transfers to various organisations and private enterprises as listed in the table below. The Department enters into Service Level Agreements (SLA) with all entities that receive funds with the exception of farmers that received soil conservation subsidy. The subsidy is only given if the specific criteria have been met and it is therefore not necessary to enter into any form of agreement. The requirements of S38(1)U) of the Public Finance Management Act is included in these SLA's. The reporting requirements and monitoring mechanism as well as payment schedule is also included in the SLA. The table below reflects the transfer payments made for the period 1 April 2015 to 31 March 2016, excluding transfers for motor vehicle licence, radio licence and payments to SETA.

Mvushini Estate Private Soil 402 402 Pty Ltd conservation

subsid Aquason Private Soil 789 789 Construction conservation

subsid

RadleyJH Private Soil 309 309 conservation subsid

Nyonende Private Infrastructure 4 200 3,290 Slower than Hatchery and inputs anticipated

progress sin im lementation.

lnqanawe Tunnel Private Infrastructure 4,450 4,450 Project

SA Sugar Private Agricultural 2,544 2,544 Research Institute Research

SA Sugar Private Project 27,053 Nil Procurement of Association implementation goods and services

commenced but no payments made by 31 March 2016.

Communal Private Operational 9,640 889 Prevailing drought Estates costs for conditions.

tractors used for crop

roduction

lthala Public Wages 12,193 11,807 The actual shortfall Development Corporation on operational cost Finance of Ntingwe Tea

was slightly less than antici ated.

Zakhe Agricultural Private Infrastructure 3,089 Nil Late finalisation of College business plan and

transfers

Agricultural Public Infrastructure 10,681 Nil Late finalisation of Schools schools business plan and

transfers

Households Private Various 18,488 18,488 employee benefits

Donations Private Cash 5 5 donations


The table below provides details of transfers that were budgeted for in the period 1 April 2015 to 31 March 2016 but no transfer payments were not made.

Skills Greenest 2,760 1,805 Payment to Public Development Municipality Service Sector is now Levy awards consolidated and paid

at national lev

Nyonende Infrastructure 8,300 4,200 Slower than Hatchery and inputs anticipated progress

in im lementation Communal Operational 25,392 9,640 The prevalent drought Estates Costs for condition resulted in

tractors for less hectares crop cultivated during production 2015/16 planting

season resulting in lower operational costs than bud eted.


1. CONDITIONAL GRANTS

4.1 Conditional grants and earmarked funds received

Conditional grants and earmarked funds received The tables below details the four conditional grants received for the period 1 April 2014 to 31 March 2016.

411L dC . . an are p rogramme G t ran -

Department who transferred the grant

Purpose of the grant

Expected outputs of the grant

Actual outputs achieved

Amount per amended DORA (R'OOO)

Amount received (R'OOO)

Department of Agriculture, Forestry and Fisheries

To promote sustainable use and management of natural resources by engaging in the initiatives that supports the pillars of sustainability (social, economic and environmental) leading to greater productivity, food security, job creation and better well-beinq for all • Community benefiting from the programme

through job creation - 816 people• Projects beneficiaries benefiting from skills

transfer - 4 73 people• Making productive land available for

agricultural production (grazing) - 4127ha• Number of awareness events hosted -10• Number of youths successfully attending

organized Junior Land Care initiatives - 120• Km of fence constructed - 131 km's• Improved social economic status - 895• Beneficiaries with improved skills - 615• Increased grazing areas - 3054ha• Number of events were to increase

awareness amongst communities anstakeholders - 11

• Number of youths successfully attendingorganized Junior Land Care initiatives - 120

• Km of fence erected - 47.92km's10,666

10,666Reasons if amount as per DORA was not -

received

Amount spent by the department (R'OOO) 10,666 Reasons for the funds unspent by the department -

Rqeasons for deviation on performance Late delivery of fencing material has resulted in projects not being completed by 31 March 2014 which affected the number of kilometers fenced and hectares of grazing land established. However, this has been offset by the over achievement of improved economic status, improved skills and awareness events.

Measures taken to improve performance Earlier procurement.

Monitoring mechanism by the receiving Monthly and quarterly monitoring. department

4.1.2 Comprehensive Agriculture Support Programme

Department to whom the grant has been transferred: Kwa-Zulu Natal Department of Agriculture and Rural Development

Purpose of the grant. To provide universal and corn prehensive agricultural support (products and services) to individual farmers, land

reform beneficiaries and farminq communities.


Expected outputs of the grant

Actual outputs achieved

• Hectares of Grain planted: 6250 (11 clusters)• Broiler units established: 1 project with 2 * 1500• Layer units established: 1 * 24 OOO unit• Number of irrigation systems developed: 3• Citrus projects developed: 1 (30ha)• Number of Sugarcane clusters: 9• Number of beef projects supported: 3• Number of Aquaculture projects supported: 1• Number of clusters erected fencing: 11• Revitalization of Agricultural Colleges infrastructure:

o OSCA:- FET Building- Library and Media Centre- Dormitories and Staff Houses- Fencing of the college Poultry and Piggery

enterprises.

o CEDARA:Student Residence Convert Outbuilding at Piggery into Office/Ablution. Refurbishment and renovation of student farm buildings.

• Training and Mentorshipo Number of farmers who attended credit bearing

courses: 700o Number of farmers who attended non-credit

bearing courses: 1300o Number of farmers mentored: 169

• Extension Recovery Plano Registration with professional bodies

(SACNASP/SASAE): 1200 extension personnel.o Qualification and upgradingo Provision of uniforms for front line extension

personnelo Communication and Brandingo Provision of Extension Tools

• Hectares of Grain planted: 6155 (11 clusters)• Broiler units established: 2 projects with 2 * 1500• Layer units established: 2 * 4 OOO and 2000 unit• Number of irrigation systems developed: 3• Citrus projects developed: 1 (30ha)• Number of Sugarcane clusters: 9 (Ratoon

management and re-planting etc) • Number of beef projects supported: 3• Number of Aquaculture projects supported: 1 (removal

of alien species and installation of 3 irrigation pumps)• Number of clusters erected fencing: 11 (35km)• Drought relief programme for 10 Districts in KZN.• Revitalization of Agricultural Colleges infrastructure:

o OSCA:- FET Building (Continuation)- Library, Lecture theatre and Media Centre

(Continuation)


- Dormitories and Staff Houses (Continuation)- Fencing of the college Poultry and Piggery

enterprises (Order issued and fundscommitted)

o CEDARA:- Investigate new hostel for FET (First draft of

drawings)- Convert Outbuilding at Piggery into

Office/Ablution (tender stage)- Refurbishment and renovation of student farm

buildings (80% complete)

• Training and Mentorshipo Number of farmers who attended credit bearing

courses: 1253o Number of farmers who attended non-credit

bearing courses: 1575o Number of farmers mentored: 30

• Extension Recovery Plano Registration with professional bodies

(SACNASP/SASAE): 1200 extension personnel. o Qualification and upgrading 11 (8 ND: agricultural

management; 1 B-Tech agricultural management;1 ND Animal science and 1 BSC Agriculturalscience)

o Provision of uniforms for front line extensionpersonnel.

o Improve image and professionalism (PAHCtraining in Quarter 4, and 2 papers presented inQuarter 2)

o Provision of Extension Tools: 764 Digi-pensissued to extension personnel.

o Recruitment ( 116: 59 agricultural advisors; 49senior agricultural advisors; 4 agriculturaldevelopment officers and 4 senior agriculturaleconomists recruited)

Amount per amended DORA R 226 161 000.00

Amount transferred R 226 161 000.00

Reasons if amount as per DORA not N/A transferred

Amount spent by the department R 226 161 000.00

Reasons for the funds unspent N/A

Monitoring mechanism transferring department

by the The transferring Department is DAFF and Monitoring is done through: • Quarterly reports by the province (Financial and Non

financial performance)• Physical project site visits by province and DAFF team.• Annual report by the province (Financial and Non

Financial performance)


4.1.3 llima/Letsema Project grant

Department to whom the grant has been transferred: Kwa-Zulu Natal Department of Agriculture and Rural Development

Purpose of the grant. To contribute towards the implementation of Departmental objectives which are to increase food production, reduce poverty, unemployment and equalities in rural farminq communities.

Expected outputs of the grant • Grain Production Land preparation i.e. Ploughingand Discing (1500ha)

• Supply of production inputs .• Cotton production supply and deliver production

inputs.• Irrigation Development.• Mechanisation programme (Land preparation

including Ploughing, Discing and Planting).• Food security supply mechanization services,

inputs and infrastructure (Fetsa Tlala programme).• Drought relief programme in all eleven districts .

Actual outputs achieved • Grain Production Land preparation i.e. Ploughingand Discing (1869ha)

• Supply of inputs: Insecticides, Fertilizer and Seedfor Vegetable production.

• Cotton production: land preparation, supply anddeliver production inputs for Makhathini cottonproject.

• Irrigation Development: irrigation repairs andcannels and installation of new irrigation pumps forNdumo A and Makhathini irrigation scheme.

• Mechanisation programme: Tractor repairs, Landpreparation including Ploughing, Discing andPlanting for Maize and Dry Beans.

• Food security: Supply mechanization services,inputs and infrastructure (Fetsa Tlala programme).

• Drought relief programme: Support for livestockfarmers through supplying of feed supplements,scoopinq of dams and boreholes.

Amount per amended DORA R69 401 000.00

Amount transferred R69 401 000.00

Reasons if amount as per DORA not N/A

transferred

Amount spent by the department R69 401 000.00

Reasons for the funds unspent N/A

Monitoring mechanism by the transferring The transferring Department is DAFF and Monitoring is department done through:

• Quarterly reports by the province (Financial andNon-financial performance)

• Physical project site visits by province and DAFF .• Annual report by the province (Financial and Non-

Financial performance)


4.1.4 EPWP incentive grant for Provinces -

Department who transferred the grant Public Works Purpose of the grant Increase work opportunites for unemployed

persons Expected outputs of the grant 4 projects funded

135.65 FTE's 130 Job opportunities 12 .4 km Km of fencing constructed 531 Ha rehabilitated

Actual outputs achieved 4 projects funded 135.65 FTE's 130 Job opportunities 12 .4 km Km of fencing constructed 531 Ha rehabilitated

Amount per amended DORA (R'OOO) R2,296,000

Amount received (R'OOO} R2,296,000

Reasons if amount as per DORA was not n/a received Amount spent by the Department (R'OOO} R2,296,000

Reasons for the funds unspent by the n/a Department Reasons for deviation on performance n/a Measures taken to improve performance None Monitoring mechanism by the receiving Monthly and quarterly monitoring and annual Department evaluation


2. DONOR FUNDS

5.1 Donor Funds Received

The Department received foreign aid for the Rabies Programmes during the 2015/16 financial year.

5.2 Rabies Programme

The Department signed an agreement with the Bill Gates Foundation for funding of the rabies programme to the value of $2,179,371 over five year period. This funding will be received through the World Health Organisation.

Name of donor Bill Gates Foundation through World Health Orqanisation

Full amount of the funding $2,179,371

Purpose of the funding Prevention of human rabies through the control of doq rabies

Expected outputs • Sustaining and supplementing theDepartment's control measure againstrabies through the acquisition ofadditional supplies such as vaccinations;

• Promoting public awareness which filtersinto all aspects of rabies control;

• Promoting primary health care ofcompanion animals through clinics in keyareas; and

Actual outputs achieved • Sustaining and supplementing theDepartment's control measure againstrabies through the acquisition ofadditional supplies such as vaccinations;

• Promoting public awareness which filtersinto all aspects of rabies control;

• Promoting primary health care ofcompanion animals

Amount received in current period (R'OOO) 2,895

Amount spent by the department (R'OOO) 2,895

Reasons for the funds unspent The funds received were fully utilised. Monitoring mechanism by the donor Regular financial and performance report from

the department


PART C: GOVERNANCE

1. INTRODUCTION

The Department has an obligation to maintain the highest standards of governance in the

management of public finances and resources. The Department applies a number of

measures to ensure that the taxpayers and communities at large receive efficient services,

with reduced incidence of fraud and corruption, at best value for money.

2. RISK MANAGEMENT

The Department has a risk management policy and conducts regular risk assessments to

determine the effectiveness of its risk management strategy and to identify new and emerging

risks. There is a Risk Management Committee that advises management on the overall

system of risk management, especially the mitigation of unacceptable levels of risk. The Audit

Committee (Provincial Treasury) advises the Department on risk management and

independently monitors the effectiveness of the system of risk management. There has been

significant progress in the management of risks, particularly in the area of Information

Technology.

3. FRAUD AND CORRUPTION

The Department's has a fraud prevention plan which is closely monitored by the Internal

control and Risk Management unit. The Department has a Hotline managed through the

Office of the MEC, where activities of fraud and corruption may be reported.

4. MINIMISING CONFLICT OF INTEREST

All employees are made aware to declare any activities that may be in conflict with the work

for which they are officially remunerated. Senior Managers declare their financial interests on

an annual basis. Furthermore, members in all committees of the Department declare their

interest prior to participating in official meetings.

5. CODE OF CONDUCT

The code of conduct /ethics document is distributed to all staff on an annual basis. Posters

are also displayed on all entrance halls of Departmental offices. This ensures that all

employees are aware of the expected conduct while on duty, as well as the channels of

recourse that may be followed in the event of violation of these.

6. HEAL TH SAFETY AND ENVIRONMENTAL ISSUES

The Department prioritizes issues of Health Safety and Environmental and has a fully

functional committee which convenes on a quarterly basis.


7. PORTFOLIO COMMITTEES

The Department has regular engagements with the Agriculture and Rural Development

Portfolio committee. Most matters raised by the Portfolio Committee have been addressed by

the Department during the year. The ongoing concerns such as the filling of critical posts and

finalizing the implementation of the forensic investigations will be continuing in 2015/16.

8. SCOPA RESOLUTIONS

The Public Accounts Standing Committee met with the department on 14 October 2015 todeliberate on the Auditor-General report for the 2014/15 financial year. The table below areresolutions that emanated from the hearing that pertain specifically to the department. Theresponses, as submitted to the committee, are also provided.

107/2015 Compliance with laws and regulations

Findings that funded vacant posts were not filled within 12 months and Loss Control Committee not fully functional.

During July 2015 the Department received Yes, ooncurrence from DPSA on the Filling of critical implementation of the new structure. During posts is the implementation of a new structure the ongoing and advertising and filling of posts should be limited monttored by to critical posts only to prevent staff from being the Agriculture rendered redundant. Engagements with and Rural Organised Labour on the appropriate Development implementation ensued and were resolved Portfolio during December 2015. Committee This new structure which was aligned to the new strategic direction of the department resulted in the creation of new senior positions. The placement of top management was then rearranged based on their skills and qualifications which thereafter resulted in oore critical posts being vacant. In light of the Provincial Directive on the Cost Cutting Measures, the department identified critical posts and approval was sought from the MEG: Finance. Approval was then received in January 2016 which resulted in 34 critical posts being advertised, inclusive of 5 key management posts viz: SGM: Agricultural Development Services SGM: Rural Development GM : Veterinary Services GM: Agricultural Research, Development and Training Institutes SM: Office of the HOD The recruitment processes were underway with an envisaged finalisation date of 31 March 2016 but has since been wa aid b the


108/2015

109/2015

Irregular expenditure

Mjindi Farming, Investigation on misappropriation of entity's assets

Effective steps were not taken to prevent irregular expenditure

(a) That the Department of Agriculture and Rural Development

announcement of the freezing of all vacant posts on Persal. The new structure will only be effective as at 1 April 2016 and only then will posts be available for filling after obtaining relevant approval.

The Loss Control Committee has been appointed and is fully functional with effect from September 2015. The Tenns of Reference for the committee were reviewed and approved by the Head of Department in August 2015. The department has created a policy register Yes that lists all the relevant laws and regulations affecting the department as well as all the approved policies with date of approval and when it's due to be reviewed. The Standard Operating Procedures developed are based on these Acts, Regulations and approved policies. With regard to the SCM environment, the SCM Policy and Delegations was reviewed and approved during the Provincial Treasury intervention at the department's SCM unit in 2014. The department developed an SCM Checklist which lists all the controls that must be followed during the procurement process and forms part of the source documentation to the payment voucher. The contract management section of the department has been expanded in the new organizational structure that will contribute to better management of contracts, including timeous renewal where necessary. This will eliminate the need for month-to-month contracts which eventually constitute irregular expenditure. Further to the above, the department's Internal Control and Risk Management Unit will be undertaking a comprehensive review of the risk and controls in SCM during the first quarter of the 2016/17 financial year. Finally, an analysis of the irregular expenditure over the past few years shows a decline in the amount of irregular expenditure incurred by the department from a high of R117.829 million in 2012/13 to R22.335 million in 2013/14 and R17.360 million in 2014/15. This is a positive trend in the right direction as the department is committed to eliminate the occurrence of irregular expenditure. Disciplinary action has resulted in one official being dismissed and one suspended without pay for a period of three months due to SCM irregularities. A further twenty seven officials have received written warnings for remunerative work outside public services.

The Board of Mjindi Farming (Ply) Ltd and CEO analyzed the report. Two officials are mentioned in the report with alleged to have committed supply chain management irregularities and misappropriation of the assets of the entity. The


Yes

110/2015 Reports on review of public entities: Mjindi Farming and AgriBusiness Development Agency

requested an independent consulting firm to perform an investigation based on misappropriation of entity's assets and supply chain management irregularities.

(b) That the entity received the final reports and in the process of analyzing the recommendations and evidence provided.

The MEC for Agriculture and Rural Development is in the process of reviewing the following aspects of the public entities (Mjindi Farming and the Agri Business Development Agency) which were funded by the Department:

The continued operation of Mjindi Farming as a public entity in view of recent developments around land claims in the Makhathini Flats, the question of the sustainability of the development of the farming operations at Makhathini Flats which was presenHy being independenHy investigated.

The review of the mandate of the AgriBusiness Development Agency so as to avoid duplication or takeover of functions that should be carried out by the Department and whether the provincial government is receiving value for money from

forensic report recommended that the 2 employees be subjected to a disciplinary process.

Subsequentiy, the Mjindi sought expert opinion from Mjindi Lawyers who undertook representations from the 2 employees. The firm of lawyers carried out further investigation on both employees to obtain more information on the allegations raised in the forensic report.

Allegations against one official could not be substantiated and no further disciplinary action instituted.

The second official was found guilty of misconduct and suspended without pay for one and half months coupled with written warning.

The Department is in the process of mechanical review of Mjindi (PTY) Ltd through the services of the consultants. The mandate of Mjindi is to provide water, services and the maintenance of the canal and the irrigation network, roads and other infrastructure. In addition it provides extension support to farmers, mechanization services and administering the lease agreement for the farmers in the irrigation scheme.

Despite years of providing this service, the agricultural potential of the farmers remains poor due to poor and lower quantities of produce. This has not improved the viability of farmers operations and neither has it lifted their socio-economic status.

Mjindi as an organization itself has not been able to effectively collect the revenue efficiently. This said in the background of the annual capital injection by the state of R50 million as against R4 million revenue collected. The farmers perpetually rely on government support.

As of 2015/2016, the Department has undertaken a review of its strategy and policies which guide the implementation of the projects. A decision was reached for the department to concentrate efforts on primary agriculture with farmers. In the past, Agriculture Development Agency (ADA) also operated in the same space. ADA was tasked to concentrate more on secondary and tertiary agriculture.

The settlement of land claims does not have a direct impact on the revenue that can be generated by Mjindi Farming Ply Ltd. The entity collects revenue only from the irrigation scheme. The new mandate of Mjindi includes;

(i) Repair, upgrading and maintenance of the


No, the mechanical review of Mjindi not finalised. Also, the Provincial Treasury is undertaking a review of all public entities in the Province

the continued existence of this entity ..

(ii)

infrastructure on the land under irrigation.

To sustain the Makhathini irrigation scheme as a viable and sustainable Farmer Settlement Project.

(iii) To collect water tariffs from farmers to sustainthe irrigation scheme and in tum to supply ter.

(iv) To assist with the planned and approvedexpansion of the irrigation scheme toapproximately 15 OOOha for the settlement ofadditional farmers.

(v) To assist and support the Department with theplanning and implementation of the MakhathiniIntegrated Master Development Plan.

(vi) Explore and facilitate new agri-businessopportunities on the irrigation scheme.

(vii) And at a particular point, transform/hand overits responsibilities to an establishedfarmer-land owner driven entity.

The erroneous transfer of the land and the buildings under the control of Mjindi has not been corrected. Some of the transferred assets are now being utilized by the Trust. Negotiations for Mjindi to lease some properties from the Trust have been concluded. The sustainability of the development of the farming operations at Makhathini flats is part of the mechanical review which is yet to be undertaken that aims at reviewing the viability of the farming operations and the upliftment of socio-economic conditions for the farmers in the area.

The outcome of the review exercise for ADA was the change in focus. ADA now concentrates on agroprocessing and industrial crops, whilst OARD continues with primary production. In this regard ADA exists as a catalytic commercial vehicle to facilitate the growth of a robust, transformed, diversified, competitive and sustainable agroprocessing/agribusiness in collaboration with DARO. A five year plan has been submitted to OARD for comments and to be tabled to Legislature.

ADA strives to promote, establish, facilitate and support the growth of black owned and managed agribusiness enterprises along agricultural value chains in KwaZulu-Natal through partnerships with individuals, communities, private sector and other public sector institutions in order to achieve a transformed Agribusiness Sector in KZN.

Its services include the following amongst others;

(i) Commercialization of production.

(ii) Provision of infrastructure for orocessina


(machinery, automation, dairies, etc.)

(iii) Induce diversification the agricultural sectorthrough focusing on industrial crops e.g. Wine,coffee, castor etc.

(iv) Building new agricultural industries like cocoa.

(v) Forging partnerships with commodityassociations and agro-processingassociations.

(vi) Attraction and unlocking of investment, throughfor example private-public-partnerships andjoint ventures (increasing the role of the privatesector).

(vii) Capacity building to support and developentrepreneurship and business acumen.

(viii) Linking farmers and agribusinesses to market.

(ix) Supporting quality & standards (adherenceto).

(x) Leveraging of funds.

(xi) Warehousing shares for clients/beneficiaries.

This will ensure continuous existence of ADA and will slowly remove it from depending on the government fiscus. ADA recently applied and received R40 million Jobs Fund funding and has put together business plans for more funding from the Jobs Fund. Ada has also started charging project management fees when implementing projects for other organizations either than DARD. In line with the DARD approach the ADA is also seeking partnerships and alignment with the private sector and commodity organizations. It is key that these partners are harnessed to build capacity and build networks for primary producers and agro-processing companies

9. PRIOR MODIFICATIONS TO AUDIT REPORTS

The Department received an unqualified audit opinion for 2014/15 financial year.

10. INTERNAL CONTROL UNIT

g) The Internal Control unit monitored the implementation of action plans emanating from all audits,

such as Auditor General, Provincial Treasury Internal Audit and audits conducted internally. The

internal control environment is subsequently strengthened.


REPORT OF THE AUDIT & RISK COMMITTEE ON

VOTE 3 -AGRICULTUREAND RURAL DEVELOPMENT

1. Objective and responsibility of the Audit and Risk Committee

The Provincial Audit and Risk Committee (PARC) is the shared audit and risk committee for the provincial

departments and is further sub-divided into three Cluster Audit and Risk Committees (CARC's) that

provide oversight of key functions to the KZN Provincial Government Departments. The Department of

Agriculture and Rural Development is served by the Economic Cluster Audit & Risk Committee.

The PARC is primarily responsible for reviewing the following:

(a) the effectiveness of the internal control systems;

(b) the effectiveness of the internal audit function including its annual work programme, co-ordination

with external auditors, the reports of significant investigations and responses of management to

specific recommendations;

( c) the risks associated with the Department's operations covered in the scope of internal and external

audits;

( d) the adequacy, reliability and accuracy of the financial and performance information provided to

management and other users of such information;

(e) any accounting and auditing concerns identified as a result of internal and external audits;

(f) the effectiveness of strategies, policies and procedures to prevent and detect fraud and corruption

and

(g) the institution's compliance with legal and regulatory provisions.

The Committee reports that it has discharged all of its responsibilities in compliance with the Public

Finance Management Act, No.I of 1999 (PFMA), Treasury Regulations 3.1, including all other related

prescripts, that it has adopted appropriate formal terms of reference contained in its Audit and Risk

Committee Charter. The Committee is pleased to present its report for the financial year ended 31 March

2016.


2. Audit Committee Members and Attendance

The PARC was appointed on 23 February 2015. During the financial year under review, certain terms and

conditions of the members' conditions of appointment were amended and the contracts of five members

were renewed effective from the 30th of October 2015.

The table below also outlines the PARC and Economic CARC meetings held and attendance thereof by

members during the reporting period.

# Name of Member

1. Mr S Simelane(Acting Chairman ofPARC and Economic CARC)

2. MrVRamphal

3. Mr P Christianson

4. Mr D O'Connor

5. Ms TNjozela

3. The Effectiveness of Internal Control

PARC Meetings

Attended

3

3

3

3

2

Economic Special Meetings Meetings

Attended

4 2

4 2

2 2

NIA 2

NIA 2

The Committee has reviewed the reports of the Internal Auditors, the Audit Report on the Annual Financial

Statements and Management Report of the Auditor General of South Africa (AGSA) and has noted with

concern, the weaknesses in controls around the following areas:

Isikhowe Juncao Mushroom Project with specific concerns being the production database and

awareness campaigns

Expenditure Management, with specific concern being Irregular Expenditure

Asset Management - Moveable Assets

Subsistence & Travel Expenditure

Performance Information

Supply Chain Management


4. Risk Management

The Committee has, as defined in its Charter, adequately provided oversight on management's processes of

identifying and monitoring business risks. For the period under review, the committee's responsibilities

have been focused, among other things, on the quarterly review of the department's risk register and

progress made by the department with regard to implementation of risk mitigation plans. The Department

has constantly been advised about best practices to consider to improve the management of key business

risks and opportunities.

As at the end of this financial year, the department's risk register status was as follows:

Risk Grouping Total

Critic Major Moderate Minor Insignif

al icant

Number of risks identified 0 6 22 4 0 32

Number action Plans Identified 0 12 56 4 0 72

Number of action plans 0 2 41 2 0 45

completed

The Committee is concerned about the slow progress made by the department in addressing risks classified

as Major. The Committee has also been concerned about the department's failure to review and update its

risk register on a regular basis. The department is, therefore, urged to treat the risk register as a dynamic

document which should be reviewed and updated continuously to include emerging risks, and risk that has

materialized. Furthermore, the department was urged to improve it risk management systems and

procedures to ensure the linkage to department's business strategy (encompassing its vision, mission and

objectives), its operational imperatives and philosophies, policies plans and initiatives with positive impact

on service delivery.

5. Forensics Investigations

During the period under review, the Committee noted that there were nine (9) forensic investigations, all

relating to alleged procurement irregularities and mismanagement of funds, which the department has

referred to the Provincial Internal Audit Services for investigation. Three (3) of these investigations were


completed and six (6) are in-progress. The department and the Provincial Internal Audit Service are urged

to promptly finalize the outstanding investigations, and work together to implement recommendations on

the finalised investigation.

The Committee is unable to comment on the completeness of the investigations conducted during the year

under review as the department failed to respond to the request to furnish the Provincial Internal Audit

Services (PIAS) with a list of any other in-house or outsourced investigations to other service providers by

the Department. As a result, the committee is unable to further comment on the completeness of the

department's fraud risk profile.

6. Quality of in year management and monthly/quarterly reports

The Committee was satisfied with the content and quality of quarterly reports in respect of in year

management and quarterly performance reports submitted in terms of the PFMA and the Division of

Revenue Act prepared and issued by the Accounting Officer of the Department during the year under view.

7. Evaluation of Financial Statements

The Committee has:

Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report,

with the Auditor General and the Accounting Officer; concerns have been noted around restatement of

corresponding figures as disclosed in note 32 to the financial statement. It should be noted that the

Department is a defendant in various claims and no provision for any liability that may result has been

made in the financial statements;

Reviewed the Auditor General's Management Report;

Reviewed the Department's processes for compliance with legal and regulatory provisions,concerns

have been noted around procurement and contract management; failure to prevent irregular expenditure

amounting to R47,7 million as a result of non-compliance to supply chain management prescripts;

financial statements submitted for auditing were not prepared in accordance with prescribed financial

reporting framework and material misstatements of commitments; transfer payments and expenditure

were identified.


8. Internal Audit

In line with the PFMA and the King III Report on Corporate Governance, the Internal Audit Function is

required to provide the Audit & Risk Committee, as well as Management, with reasonable assurance on the

adequacy and effectiveness of internal controls. This is primarily achieved through the implementation of a

risk based Internal Audit plan. The Committee has, through the CARC monitoring processes, considered

internal audit reports at its quarterly meetings detailing the assessment of the adequacy and effectiveness of

controls designed to mitigate the risks associated with operational and strategic activities of the

department. The Committee also considered the appropriateness of the corrective actions proposed by

management to improve the control environment.

The Committee has noted with concern, imposed financial and other limitations place upon Internal Audit

during the year under review. During the forthcoming financial year, the Committee will monitor the

progress made by the Internal Audit Function in resolving any potential budgetary or operational

difficulties in order to ensure that it fulfills its mandate and continues to add value to the department.

9. Auditor-General's Report

The Committee has monitored the implementation of corrective action plans to address the audit issues

raised by the Auditor General in the prior financial year. Furthermore, the Committee has met with the

Auditor General of South Africa to discuss and evaluate the major issues that emanated from the current

regulatory audit.

The Committee will ensure that corrective actions in respect of detailed findings emanating from the

current regulatory audit continued to be monitored on a quarterly basis through the CARC processes.

The Committee notes the Auditor General's unqualified opinion regarding the Annual Financial

Statements, and proposes that the Audited Annual Financial Statements be accepted and read together with

the report of the Auditor General.


10. Appreciation

The Committee wishes to express its appreciation to the Management of the Department, the Auditor

General of South Africa, and the Provincial Internal Audit Services for the co-operation and support they

have provided to enable us to compile this report.

Mr S Simelane

Acting Chairman: Provincial Audit and Risk Committee

05 August 2016


PART D: HUMAN RESOURCE MANAGEMENT

1. OVERVIEW OF HUMAN RESOURCES

The Department had challenges in filling critical, vacant posts during 2014/15. This was

related to the finalization of the organizational structure.

TABLE 1.1 - Main Service for Service Delivery Improvement and Standards

Main Services

To aid farmers to a level of self-

sustainability through integrated

agricultural support/development

services through:

• Training & Development

• Scientific Support Services

• Development support models

Actual Customers

Emerging & Commercial Farmers

Organised Agriculture

Members of the Public

Potential Customers

N/A

Standard of Service

Annual Research coordination committees forums

2500 farmers to be trained in agricultural techniques Establish 2 training agreements with tertiary institutions - UKZN & UNIZULU

50% of Agric Advisors to attend Customer care and diversity training

Actual Achievement against Standards

4 meetings took place in June & July, September, and December 2015.

Chief Directorate co-ordination forums now include the Scientific Managers from Crop, Livestock production, natural resources, analytical services and Farming Systems research ensuring a more holistic and integrated approach to planning and problem solving.

3258 farmers trained on agricultural techniques.

2 x training agreement has been signed with UNIZULU & UKZN

Partnership with UNIZULU approved on 18/12/2014. Development of funding agreement in process.

MOA with UKZN approved 29/05/2015. The WSP was approved and submitted to PSETA on the 30 April 2015. Customer care training included in the WSP.

Annual agricultural best practise Extension Advisory Summit conference was held in March 2016 at

Centenary Hall. Staff presented papers on extension work done

Finalise 1 x MOU between DARD MOA approved on 01/02/2016. and Dept. of Education on the recapitalisation of agricultural Steering Committee has been schools appointed and approved. Fund 4 x agricultural schools on Implementation Plan approved infrastructure - 01/02/2016

5 x user schools have received their first tranche of funding and will be submitting evidence of expenditure in July 2016.

TABLE 1.2 - Consultation Arrangements for Customers

Type of Arrangement Actual Customer Actual Achievements

Monthly Project planning (PPC) meetings with Communities communities Project planninq meetinqs were held at District level (132) Quarterly Consultation with IDP, DLC District offices 11 x District land reform committees established and launched by the MEC

11 X District rural development plans in draft.

10 x District Municipalities and Ethekwini have IDP's including sector and rural development plans incorporated and aooroved.

Quarterly Consultation meeting with DRDLR OARD Departmental structure including rural development has been approved by MEC.

Liaison is still in operation in the drafting of operating framework between OARD and DRDLR.

Monthly agri park co-ordination meetings held.

Establish 11 District Project steering committees District Offices Terms of Reference for District Project steering committees are part of by 30 Sept 2015 approved Agrarian Transformation Strategy. All eleven districts are already

presenting their projects before the District Project Steering Committee and recommendations generated there are presented to the Provincial Project Steering Committee.

Annual Research coordination OARD 4 meetings took place in June & July, September, and December 2015. committees forums

Chief Directorate co-ordination forums now include the Scientific Managers from Crop, Livestock production, natural resources, analytical services and Farming Systems research ensuring a more holistic and integrated approach to planning and problem solving.

4 x Quarterly Animal Health Forum meetings hosted (including external Monthly Livestock / (Annual) wildlife Association Livestock farmers stakeholders). Meetinqs

1 x Annual Client Satisfaction Survey conducted. Annual Client satisfactory survey OARD

Twice a year- Provincial Agriculture Education Agricultural schools The focus was changed towards the MEC Special Projects for the

and Training forum revitalisation of agricultural schools.

Implementation Plan approved - 01/02/2016

5 x user schools have received their first tranche of funding and will be submittinq evidence of expenditure in July 2016

12 KITT- KZN Interdepartmental technical task DARD The monthly meetings were changed to quarterly and 4 x KITT meetings team meetings were held

Letters were issued to the aooointed persons by the HOD. Participate in 10 District land agricultural District Offices committees 10 District Committee formed and Appointed by National Minister of DRDLR

TABLE 1.3 - Service Delivery Access Strategy

Access Strategy Actual Achievements

Increase KZN fleet by 40 vehicles & subsidized Additional 46 vehicles were ordered in 2015/2016. Delivery date expected to be in 2016/17 financial vehicles by 5% per annum year. 1 x Integrated Technology Systems framework

Data architecture (framework) developed and approved. 4 x Consultations undertaken with necessary stakeholder to identify business data and creation of data warehouse framework.

22 Offices be provided with internal & external Communication strategy approved in 2014. Reviewed and presented to EXCO in January 2015. signage Approved on 16/10/2015.

18 x Workshops conducted to create awareness of the communication strategy.

Spee had to be reviewed in light of cost reduction. Tender was re- advertised in February 2016 and BEC is scheduled to meet in the 2016/2017 financial year.

Translation of 8 brochures/ booklets in predominant lanquaqes 8 x brochures translated and distributed Develop policy on the recapitalisation of agricultural schools Policy approved on 1/4/2015.

Finalise 1 x MOU between OARD and Dept. of -MOA approved on 01/02/2016.Education on the recapitalisation of agricultural -Steering Committee has been appointed and approved.schools

Fund 4 x agricultural schools on infrastructure Implementation Plan approved - 01/02/2016

5 x user schools have received their first tranche of funding and will be submitting evidence of expenditure in July 2016.

Develop policy on identifying Department still in discussion regarding the development of a baseline for the classification of and classifying farmers farmers. Database is in the process of being developed by DAFF. Departmental input and

participation in this process has been rendered.

Agrarian transformation strategy/policy developed and approved on how to support to farmers i.e. household support/community investment /commercialisation.

4 x Workshops conducted with Districts to create awareness. 2500 farmers to be trained in agricultural 3258 farmers trained on agricultural techniques. techniques Establish 4 MOU's with commodity groups- 3 x MOU's developed & approved as follows: CITRUS Citrus approved on 20/8/15, NWGA approved on 25/11/15, Sugar Agency agreement approved on Banks 03/16; and Sugar Cane MOU for Sugar approved on 13/01/2016 NWGA

Agreement with Old Mutual Masisizane with focus on Harry Gwala Communal Estates pillar developed.

In the 2015/16 financial year, preparatory work was undertaken and the additional MOU's were prepared: MOU with Milk SA approved on 05/04/16, Milk producers organisation of KZN approved on 21/4/16, FAO approved on 02/02/16, SA Pork Producers on 15/3/16 and NEF approved 28/4/16.

2 x training agreement has been signed with UNIZULU & UKZN Establish 2 training agreements with tertiary institutions - UKZN & UNIZULU Partnership with UNIZULU approved on 18/12/2014. Development of funding agreement in process.

MOA with UKZN approved 29/05/2015. 10 Agri Parks Established Reports to MINMEC conducted.

10 District Agri Park plans approved

20 Industries supported in rural development 17 industries suooorted in the development of rural development in Quarter 4

TABLE 1.4 - Service Information Tool

Type of Information Tool

32 Radio slots

Produce 50 pamphlets

Produce 8 brochures per annum

Publish 12 publications

Actual Achievements

23 talk shows on mainstream radio

14 x pamphlets produced (7 x English, 7 x Zulu)

11 brochures

3 internal newsletters

2 x documents on electronic media

30 x research information packs

1 x goat production manual

3 x Research information days: Information day held at Bartlow on 19/09/2015, Livestock research information day on 9/3/2016, Research Information day at the Dundee Research Station on 16/3/2016

Participate in annual agricultural show(Royal I Participated in one agricultural show. show event)

Annual career Exhibition

Participated in one women in agriculture exhibition. Participated in 21 Career exhibitions

MEC Youth Summit hosted- Youth Portal launched on the Departmental website to assist unemployed graduates.

TABLE 1.5 • Com_e_laint Mechanism Complaint Mechanism Actual Achievements

Progress on Dependent on the implementation of a standardised complaints management system. complaints within 10 working days

Six (6) consultation meetings held with districts/local offices to institute a standardised complaints management system.

Complaints policy reviewed and analysis undertaken

Departmental Complaint boxes in all 35 boxes distributed to District and Local Offices. Departmental offices (70)

An interim appointment has been made to serve as the Departmental Complaints. The appointment Provision of a Departmental Ombudsperson hereof is pendinq the implementation of the new orqanisational structure.

TABLE 2.1 - Personnel costs by Programme

Programme Total Voted Compensation Training Professional Compensation Average Employment Expenditure of Employees Expenditure and Special of Employees Compensation (R'OOO) Expenditure (R'OOO) Services as percent of of Employees

(R'OOO) (R'OOO) Total Cost per Expenditure Employee

(R'OOO)

Administration 352 595 139 622 0 0 39 .6 49 2852

Aqriculture 1847 054 770 259 0 0 41.7 270 2852

Conservation 0 0 0 0 0 0 2852

Environmental management 0 0 0 0 0 0 2852

Rural development 1 891 1 542 0 0 81.5 1 2852

Z=Total as on Financial Systems (BAS) 2 201541 911 42 3 0 0 41.4 320 2852

TABLE 2.2 - Personnel cost by salary band

Salary Bands Compensation of Percentage of Average Total Personnel Number of Employees Cost Total Personnel Compensation Cost for Employees including Cost for Cost per Department Transfers (R'OOO) Department Employee (R) including Goods

and Services (R'OOO)

Lower skilled (Levels 1-2) 8 950 0.9 101 705 976 326 88

Skilled (Levels 3-5) 219 494 22.5 185 227 976 326 1185

Highly skilled production (Levels 6-8) 283 848 29.1 340 345 976 326 834

Highly skilled supervision (Levels 9-12) 335 779 34.4 537 246 976 326 625

Senior management (Levels 13-16) 46 430 4.8 1 055 227 976 326 44

Contract (Levels 1-2) 2 447 0.3 152 938 976 326 16

Contract (Levels 3-5) 4 960 0.5 215 652 976 326 23

Contract (Levels 6-8) 6 115 0.6 509 583 976 326 12

Contract (Levels 9-12) 12 529 1.3 569 500 976 326 22

Contract (Levels 13-16) 3 718 0.4 1 239 333 976 326 3

Periodical Remuneration 795 0.1 6 023 976 326 132

TOTAL 925065 94.7 310008 976326 2984

TABLE 2.3 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Programme

Programme Salaries Salaries Overtime Overtime HOA HOA as% Medical Medical Total (R'OOO) as %of (R'OOO) aso/oof (R'OOO) of Ass. Ass. as% Personnel

Personnel Personnel Personnel (R'OOO) of Cost per Cost Cost Cost Personnel Programme

Cost (R'OOO)

Administration 104320 71.6 796 0.5 3308 2.3 4948 3.4 145696

Aqriculture develop services 560480 67.6 3853 0.5 26629 3.2 34907 4.2 829368

Environmental management 84 93.3 0 0 1 1.1 1 1.1 90

Proq 1 :administration. 796 68 0 0 110 9.4 47 4 1171

TOTAL 665680 68.2 4649 0.5 30048 3.1 39903 4.1 976325

TABLE 2.4 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Band

Salary bands Salaries Salaries Overtime Overtime HOA HOA as% Medical Medical Total (R'OOO) as% of (R'OOO) aso/oof (R'OOO) of Ass. Ass. as% Personnel

Personnel Personnel Personnel (R'OOO) of Cost per Cost Cost Cost Personnel Salary

Cost Band (R'OOO)

Lower skilled (Levels 1-2) 6311 70.2 296 3.3 587 6.5 491 5.5 8993

Skilled (Levels 3-5) 145715 66.2 2893 1.3 14288 6.5 16719 7.6 220019 Highly skilled production (Levels 6-8) 202829 69.1 688 0.2 9328 3.2 12702 4.3 293692 Highly skilled supervision (Levels 9-12) 245603 66.4 716 0.2 5406 1.5 9374 2.5 369682 Senior management (Levels 13-16) 38431 74.7 0 0 330 0.6 524 1 51444

Contract (Levels 1-2) 2420 97.2 6 0.2 0 0 0 0 2490

Contract (Levels 3-5) 4591 92.4 4 0.1 16 0.3 27 0.5 4967

Contract (Levels 6-8) 5628 91.4 0 0 21 0.3 9 0.1 6157

Contract (Levels 9-12) 10918 78.4 46 0.3 72 0.5 58 0.4 13920

Contract (Levels 13-16) 3235 77.7 0 0 0 0 0 0 4166

Periodical Remuneration 0 0 0 0 0 0 0 0 795

TOTAL 665681 68.2 4649 0.5 30048 3.1 39904 4.1 976325

TABLE 3.1 - Employment and Vacancies by Programme at end of period

Programme Number of Posts Number of Posts Filled Vacancy Rate Number of Posts Filled Additional to the Establishment

402 349 13.2 0

Administration, Permanent

2839 2443 13.9 0

Aariculture develoo services, Permanent

58 58 0 0

Aariculture develoo services, Temoorarv

0 0 0 0

Environmental manaqement, Permanent

2 2 0 0

Proq 1 :administration., Permanent

0 0 0 0

Rural development, Permanent

3301 2852 13.6 0 TOTAL

TABLE 3.2 - Employment and Vacancies by Salary Band at end of period

Salary Band Number of Number of Vacancy Number of Posts Posts Posts Filled Rate Filled Additional to

the Establishment

100 88 12 0 Lower skilled (Levels 1-2), Permanent

1332 1185 11 0 Skilled (Levels 3-5), Permanent

992 829 16.4 0 Hiqhly skilled production (Levels 6-8), Permanent

745 626 16 0 Highly skilled supervision (Levels 9-12), Permanent

4 4 0 0 Highly skilled supervision (Levels 9-12), Temporary

52 44 15.4 0 Senior management (Levels 13-16), Permanent

16 16 0 0 Contract (Levels 1-2), Permanent





3301 2852 13.6 0 TOTAL

TABLE 3.3 - Employment and Vacancies by Critical Occupation at end of period

Critical Occupations Number of Number of Vacancy Number of Posts

Posts Posts Filled Rate Filled Additional to

the Establishment

Administrative related, Permanent 97 43 55.7 0

Agricul animal oceanography forestry & other scien, Permanent 85 61 28.2 0

Agriculture related, Permanent 1519 338 77.7 0

Agriculture related, Temporary 1 1 0 0

All artisans in the building metal machinery etc., Permanent 30 4 86.7 0

Archivists curators and related professionals, Permanent 1 1 0 0

Artisan project and related superintendents, Permanent 10 2 80 0

Auxiliary and related workers, Permanent 93 41 55.9 0

Biochemistry pharmacol. zoology & life scie.techni, Permanent 510 136 73.3 0

Biologists botanists zoologists & rel professional, Permanent 4 4 0 0

Bookbinding and related machine operators, Permanent 2 2 0 0

Building and other property caretakers, Permanent 44 39 11.4 0

Bus and heavy vehicle drivers, Permanent 60 16 73.3 0

Civil engineering technicians, Permanent 11 10 9.1 0

Cleaners in offices workshops hospitals etc., Permanent 259 103 60.2 0

Client inform clerks(switchb recept inform clerks), Permanent 26 4 84.6 0

Communication and information related, Permanent 13 9 30.8 0

Community development workers, Permanent 1 1 0 0

Computer programmers., Permanent 2 1 50 0

Computer system designers and analysts., Permanent 20 2 90 0

Conservation labourers, Permanent 1 1 0 0

Economists, Permanent 39 14 64.1 0

Electrical and electronics engineering technicians, Permanent 1 1 0 0

Engineering sciences related, Permanent 21 11 47.6 0

Engineers and related professionals, Permanent 76 12 84.2 0

Farm hands and labourers, Permanent 1124 540 52 0

Farming forestry advisers and farm managers, Permanent 15 5 66.7 0

Finance and economics related, Permanent 29 15 48.3 0

Financial and related professionals, Permanent 49 24 51 0

Financial clerks and credit controllers, Permanent 130 57 56.2 0

Food services aids and waiters, Permanent 7 1 85.7 0

Forestry labourers, Permanent 7 6 14.3 0

General legal administration & rel. professionals, Permanent 16 3 81.3 0

Geologists geophysicists hydrologists & relat prof, Permanent 4 0 100 0

Health sciences related, Permanent 1 1 0 0

Horticulturists foresters agricul.& forestry techn, Permanent 499 424 15 0

Household and laundry workers, Permanent 25 9 64 0

Household food and laundry services related, Permanent 5 5 0 0

Housekeepers laundry and related workers, Permanent 24 9 62.5 0

Human resources & organisat developm & relate prof, Permanent 76 23 69.7 0

Human resources clerks, Permanent 191 86 55 0

Human resources related, Permanent 162 28 82.7 0

Information technology related, Permanent 1 1 0 0

Language practitioners interpreters & other commun, Permanent 39 9 76.9 0

Legal related, Permanent 1 1 0 0

Librarians and related professionals, Permanent 10 3 70 0

Library mail and related clerks, Permanent 4 2 50 0

Life sciences related, Permanent 1 0 100 0

Light vehicle drivers, Permanent 32 26 18.8 0

Logistical support personnel, Permanent 26 25 3.8 0

Material-recording and transport clerks, Permanent 2 1 so 0

Mechanical engineering thechnicians, Permanent 9 8 11.1 0

Messengers porters and deliverers, Permanent 28 23 17.9 0

Motor vehicle drivers, Permanent 74 49 33.8 0

Motorised farm and forestry plant operators, Permanent 56 5 91.1 0

Natural sciences related, Permanent 15 5 66.7 0

Nature conservation and oceanographical rel.techni, Permanent 1 1 0 0

Other administrat & related clerks and organisers, Permanent 555 200 64 0

Other administrative policy and related officers, Permanent 95 22 76.8 0

Other information technology personnel., Permanent 6 2 66.7 0

Other machine operators, Permanent 65 4 93.8 0

Other occupations, Permanent 218 71 67.4 0

Photographic lithographic and related workers, Permanent 1 0 100 0

Production advisers: factories, Permanent 2 2 0 0

Risk management and security services, Permanent 26 3 88.5 0

Safety health and quality inspectors, Permanent 6 5 16.7 0

Saps, Permanent 1 1 0 0

Secretaries & other keyboard operating clerks, Permanent 105 43 59 0

Security guards, Permanent 253 149 41.1 0

Security officers, Permanent 9 3 66.7 0

Senior managers, Permanent 102 30 70.6 0

Social sciences related, Permanent 11 0 100 0

Statisticians and related professionals, Permanent 4 1 75 0

Trade labourers, Permanent 10 2 80 0

Veterinarians, Permanent 78 42 46.2 0

Veterinary assistants, Permanent 34 19 44.1 0

Water plant and related operators, Permanent 1 1 0 0

TOTAL 3301 2852 13.6 0

4. JOB EVALUATION

TABLE 4.1 · Job Evaluation

Salary Band Number Number of Jobs % of Posts Number of %of Number of %of of Posts Evaluated Evaluated Posts Upgraded Posts Downgraded

Upgraded Posts Downgraded Posts Evaluated Evaluated

100 Lower skilled (Levels 1-2) 0 0 0 0 0 0

16

Contract (Levels 1-2) 0 0 0 0 0 0 23

Contract (Levels 3-5) 0 0 0 0 0 0 12

Contract (Levels 6-8) 0 0 0 0 0 0 22

Contract (Levels 9-12) 0 0 0 0 0 0 1

Contract (Band A) 0 0 0 0 0 0 1

Contract (Band B) 0 0 0 0 0 0 1

Contract (Band D) 0 0 0 0 0 0 1332

Skilled (Levels 3-5) 0 0 0 0 1 0 992 no of posts = 61

Highly skilled production (Levels 6-8) evaluations = 17 2.98% 0 0 3 4.91%

745 No of posts= 147 Highly skilled supervision (Levels 9-12) evaluations = 48 7.93% 0 0 0 0

41 No of posts = 22 Senior Management Service Band A Evaluations = 08 22% 0 0 0 0

9 No of posts = 05 Senior Manaaement Service Band B Evaluations = 05 31.25% 0 0 0 0

4 Senior Manaaement Service Band C 0 0 0 0 0 0

2 Senior Management Service Band D 0 0 0 0 0 0

3301 TOTAL 3,277% 0 0 0 4 0

TABLE 4.2 - Profile of employees whose positions were upgraded due to their posts being upgraded

Beneficiaries African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a Disability 0 0 0 0 0

TABLE 4.3 - Employees whose salary level exceed the grade determined by Job Evaluation [i.t.o PSR 1.V.C.3]

Occupation Number of Job Evaluation Remuneration Reason for No of Employees Employees Level Level Deviation in Dept

XXX 0 XXX XXX XXX

XXX 0 XXX XXX XXX

Total 0

Percentage of Total Employment 0 0

TABLE 4.4 -Profile of employees whose salary level exceeded the grade determined by job evaluation [i.t.o. PSR 1.V.C.3]

Beneficiaries African Asian Coloured White Total

Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

Employees with a Disability 0 0 0 0 0

TABLE 5.1 -Annual Turnover Rates by Salary Band

Salary Band Employment Appointments Terminations Turnover at Rate Beginning of Period (April 2015)

Lower skilled (Levels 1-2), Permanent 51 30 1 2

Skilled (Levels 3-5), Permanent 1249 22 82 6.6

Highly skilled production (Levels 6-8), Permanent 828 73 27 3.3

Highly skilled supervision (Levels 9-12), Permanent 585 11 33 5.6

Highly skilled supervision (Levels 9-12), Temporary 1 0 0 0

Senior Management Service Band A, Permanent 36 0 1 2.8

Senior Management Service Band B, Permanent 4 0 0 0

Senior Management Service Band C, Permanent 3 0 0 0

Senior Manaqement Service Band D, Permanent 1 0 0 0

Contract (Levels 1-2), Permanent 47 18 29 61.7


Contract (Levels 6-8), Permanent 23 1 3 13


Contract (Band A), Permanent 2 1 1 50

Contract (Band B), Permanent 1 1 0 0

TOTAL 2880 165 186 6.5

TABLE 5.2 -Annual Turnover Rates by Critical Occupation

Occupation Employment at Appointments Terminations Turnover Rate Beginning of Period (April 2015)

Administrative related, Permanent 49 4 7 14.3

Agricul animal oceanography forestry & other scien, Permanent 62 3 1 1.6

Agriculture related, Permanent 241 50 10 4.1

Agriculture related, Temporary 1 0 0 0

All artisans in the building metal machinery etc., Permanent 4 0 0 0

Archivists curators and related professionals, Permanent 1 0 0 0

Artisan project and related superintendents, Permanent 3 0 1 33.3

Auxiliary and related workers, Permanent 44 0 1 2.3

Biochemistry pharmacol. zooloov & life scie.techni, Permanent 143 4 4 2.8

Biologists botanists zoologists & rel professional, Permanent 3 0 0 0

Bookbinding and related machine operators, Permanent 2 0 0 0

Building and other property caretakers, Permanent 42 0 4 9.5

Bus and heavy vehicle drivers, Permanent 18 1 4 22.2

Civil engineering technicians, Permanent 10 0 0 0

Cleaners in offices workshops hospitals etc., Permanent 101 6 6 5.9

Client inform clerks(switchb recept inform clerks), Permanent 4 0 0 0

Communication and information related, Permanent 10 0 1 10

Community development workers, Permanent 1 0 0 0

Computer programmers., Permanent 1 0 0 0

Computer system designers and analysts., Permanent 3 0 1 33.3

Conservation labourers, Permanent 1 0 0 0

Economists, Permanent 12 2 2 16.7

Electrical and electronics engineering technicians, Permanent 2 0 1 50

Engineering sciences related, Permanent 11 0 0 0

Engineers and related professionals, Permanent 13 0 2 15.4

Farm hands and labourers, Permanent 576 25 39 6.8

Farminq forestry advisors and farm manaqers, Permanent 5 0 0 0

Finance and economics related, Permanent 16 0 0 0

Financial and related professionals, Permanent 26 1 2 7.7

Financial clerks and credit controllers, Permanent 73 1 13 17.8

Food services aids and waiters, Permanent 1 0 0 0

Forestry labourers, Permanent 6 0 0 0

General legal administration & rel. professionals, Permanent 2 1 1 50

Health sciences related, Permanent 1 0 0 0

Horticulturists foresters agricul.& forestry techn, Permanent 456 14 11 2.4

Household and laundry workers, Permanent 9 0 0 0

Household food and laundry services related, Permanent 3 1 0 0

Housekeepers laundry and related workers, Permanent 9 0 0 0

Human resources & organisat developm & relate prof, Permanent 25 1 3 12

Human resources clerks, Permanent 80 5 2 2.5

Human resources related, Permanent 28 1 1 3.6

Information technology related, Permanent 1 0 0 0

Lanquaqe practitioners interpreters & other commun, Permanent 10 0 1 10

Legal related, Permanent 1 0 0 0

Librarians and related professionals, Permanent 3 0 0 0

Library mail and related clerks, Permanent 2 0 0 0

Light vehicle drivers, Permanent 30 0 3 10

Logistical support personnel, Permanent 27 0 1 3.7

Material-recording and transport clerks, Permanent 1 0 0 0

Mechanical engineering thechnicians, Permanent 8 0 0 0

Messengers porters and deliverers, Permanent 24 0 1 4.2

Motor vehicle drivers, Permanent 50 3 5 10

Motorised farm and forestry plant operators, Permanent 11 0 0 0

Natural sciences related, Permanent 5 3 0 0

Nature conservation and oceanographical rel.techni, Permanent 1 0 0 0

Other administrat & related clerks and orqanisers, Permanent 190 32 28 14.7

Other administrative policy and related officers, Permanent 22 0 3 13.6

Other information technology personnel., Permanent 2 0 0 0

Other machine operators, Permanent 4 0 0 0

Other occupations, Permanent 72 0 6 8.3

Production advisers : factories, Permanent 2 0 0 0

Risk management and security services, Permanent 3 0 0 0

Safety health and quality inspectors, Permanent 5 0 0 0

Saps, Permanent 1 0 0 0

Secretaries & other keyboard operating clerks, Permanent 44 1 1 2.3

Security quards, Permanent 162 2 18 11.1

Security officers, Permanent 3 0 0 0

Senior managers, Permanent 30 2 1 3.3

Statisticians and related professionals, Permanent 1 0 0 0

Trade labourers, Permanent 2 0 0 0

Veterinarians, Permanent 43 2 1 2.3

Veterinary assistants, Permanent 19 0 0 0

Water plant and related operators, Permanent 3 0 0 0

TOTAL 2880 165 186 6.5

TABLE 5.3 - Reasons why staff are leaving the Department

Termination Type Number Percentage of Total Percentage of Total Total Total Employment

Resignations Employment

Death, Permanent 25 13.4 0.9 186 2880

Resignation, Permanent 41 22 1.4 186 2880

Expiry of contract, Permanent 36 19.4 1.3 186 2880

Dismissal-misconduct, Permanent 2 1.1 0.1 186 2880

Retirement, Permanent 82 44.1 2.8 186 2880

TOTAL 186 100 6.5 186 2880

TABLE 5.4 - Granting of Employee Initiated Severance Packages

Category No of No of No of No of applications applications applications Packages received referred to supported approved by

the MPSA byMPSA department

Lower Skilled (Salary Level 1-2) 0 0 0 0

Skilled (Salary Level 3-5) 0 0 0 0

Hiqhly Skilled Production (Salary Level 6-8) 0 0 0 0

Hiqhly Skilled Production (Salary Level 9-12) 0 0 0 0

Senior Management (Salary Level 13 and higher) 0 0 0 0

Total 0 0 0 0

TABLE 5.5 - Promotions by Critical Occupation

Occupation Employment Promotions to Salary Level Progressions to Notch at Beginning another Salary Promotions as a another Notch progressions as a of Period Level %of within Salary % of Employment (April 2015) Employment Level

Administrative related 49 0 0 34 69.4

Agricul animal oceanography forestry & other scien 62 0 0 32 51.6

Agriculture related 242 51 21.1 159 65.7

All artisans in the building metal machinery etc. 4 1 25 1 25

Archivists curators and related professionals 1 0 0 1 100

Artisan project and related superintendents 3 0 0 0 0

Auxiliary and related workers 44 1 2.3 29 65.9

Biochemistry pharmacol. zooloav & life scie.techni 143 1 0.7 99 69.2

Biologists botanists zoologists & rel professional 3 0 0 2 66.7

Bookbindinq and related machine operators 2 0 0 0 0

Building and other property caretakers 42 1 2.4 18 42.9

Bus and heavy vehicle drivers 18 0 0 10 55.6

Civil enqineerinq technicians 10 0 0 7 70

Cleaners in offices workshops hospitals etc. 101 0 0 1 1

Client inform clerks(switchb recept inform clerks) 4 0 0 4 100

Communication and information related 10 0 0 5 50

Community development workers 1 0 0 1 100

Computer programmers. 1 0 0 0 0

Computer system desiqners and analysts. 3 0 0 1 33.3

Conservation labourers 1 0 0 0 0

Economists 12 1 8.3 8 66.7

Electrical and electronics enqineerinq technicians 2 0 0 0 0

Engineering sciences related 11 0 0 0 0

Enqineers and related professionals 13 0 0 9 69.2

Farm hands and labourers 576 1 0.2 235 40.8

Farming forestry advisors and farm managers 5 0 0 3 60

Finance and economics related 16 1 6.3 12 75

Financial and related professionals 26 3 11.5 21 80.8

Financial clerks and credit controllers 73 0 0 42 57.5

Food services aids and waiters 1 0 0 0 0

Forestry labourers 6 0 0 2 33.3

General legal administration & rel. professionals 2 0 0 1 50

Health sciences related 1 0 0 0 0

Horticulturists foresters agricul.& forestry techn 456 0 0 246 53.9

Household and laundry workers 9 0 0 3 33.3

Household food and laundry services related 3 0 0 1 33.3

Housekeepers laundry and related workers 9 0 0 2 22.2

Human resources & organisat developm & relate prof 25 0 0 20 80

Human resources clerks 80 1 1.3 62 77.5

Human resources related 28 1 3.6 18 64.3

Information technoloqy related 1 0 0 0 0

Language practitioners interpreters & other commun 10 0 0 8 80

Legal related 1 0 0 1 100

Librarians and related professionals 3 0 0 2 66.7

Library mail and related clerks 2 0 0 2 100

Light vehicle drivers 30 0 0 14 46.7

Loqistical support personnel 27 0 0 0 0

Material-recording and transport clerks 1 0 0 1 100

Mechanical engineering thechnicians 8 0 0 7 87.5

Messenqers porters and deliverers 24 0 0 0 0

Motor vehicle drivers 50 0 0 37 74

Motorised farm and forestry plant operators 11 0 0 1 9.1

Natural sciences related 5 0 0 1 20

Nature conservation and oceanographical rel.techni 1 0 0 0 0

Other administrat & related clerks and organisers 190 2 1.1 127 66.8

Other administrative policy and related officers 22 1 4.5 15 68.2

Other information technoloqv personnel. 2 0 0 2 100

Other machine operators 4 0 0 3 75

Other occupations 72 0 0 9 12.5

Production advisers : factories 2 0 0 2 100

Risk manaqement and security services 3 0 0 2 66.7

Safety health and quality inspectors 5 0 0 3 60

Saps 1 0 0 0 0

Secretaries & other keyboard operatinq clerks 44 0 0 22 50

Security guards 162 0 0 2 1.2

Security officers 3 0 0 2 66.7

Senior manaqers 30 0 0 16 53.3

Statisticians and related professionals 1 0 0 1 100

Trade labourers 2 0 0 0 0

Veterinarians 43 0 0 30 69.8

Veterinary assistants 19 0 0 15 78.9

Water plant and related operators 3 0 0 0 0

TOTAL 2880 66 2.3 1414 49.1

TABLE 5.6 - Promotions by Salary Band

Salary Band Employment Promotions to Salary Level Progressions to Notch at Beginning another Salary Promotions as a another Notch progressions as of Period Level %of within Salary ao/oof (April 2015) Employment Level Employment

Lower skilled (Levels 1-2), Permanent 51 0 0 0 0 Skilled (Levels 3-5), Permanent 1249 3 0.2 439 35.1

Highly skilled production (Levels 6-8), Permanent 828 7 0.8 629 76

Highly skilled supervision (Levels 9-12), Permanent 585 56 9.6 290 49.6

Hiqhly skilled supervision (Levels 9-12), Temporary 1 0 0 1 100

Senior management (Levels 13-16), Permanent 44 0 0 20 45.5

Contract (Levels 1-2), Permanent 47 0 0 0 0

Contract (Levels 3-5), Permanent 27 0 0 14 51.9



Contract (Levels 13-16), Permanent 3 0 0 2 66.7 TOTAL 2880 66 2.3 1414 49.1

TABLE 6.1 - Total number of Employees (incl. Employees with disabilities) per Occupational Category (SASCO)

Occupational Categories Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total

African Colour Indian Total White African Coloured Indian Total White

ed Blacks Blacks

Legislators, senior officials and managers, 13 0 1 14 2 11 0 1 12 3 31

Permanent

Professionals, Permanent 249 4 15 268 45 238 2 27 267 27 607

Professionals, Temporary 0 0 0 0 0 0 0 0 0 1 1

Technicians and associate professionals, 371 2 7 380 25 313 2 13 328 12 745

Permanent

Clerks, Permanent 114 0 2 116 0 235 8 21 264 13 393

Service and sales workers, Permanent 144 0 0 144 0 26 0 0 26 0 170

Craft and related trades workers, 7 0 1 8 0 0 0 0 0 0 8

Permanent

Plant and machine operators and 100 0 0 100 0 3 0 0 3 0 103

assemblers, Permanent

Elementary occupations, Permanent 457 1 1 459 2 330 0 3 333 0 794

TOTAL 1455 7 27 1489 74 1156 12 65 1233 56 2852

Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total

African Colour Indian Total White African Coloured Indian Total White

ed Blacks Blacks

Employees with disabilities 11 0 0 11 1 5 0 0 5 1 18

TABLE 6.2 -Total number of Employees (incl. Employees with disabilities) per Occupational Bands

Occupational Bands Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total

African Coloured Indian Total White African Coloured Indian Total White

Blacks Blacks

Top Management, Permanent 1 0 0 1 1 2 0 0 2 0 4

Senior Management, Permanent 16 0 1 17 7 11 1 1 13 3 40

Professionally qualified and experienced 294 5 19 318 57 197 1 24 222 26 623

specialists and mid-management,

Permanent



Temporary

Skilled technical and academically 313 1 4 318 7 448 6 34 488 21 834

qualified workers, junior management,

supervisors, foremen, Permanent

Semi-skilled and discretionary decision 748 1 3 752 2 419 4 6 429 2 1185

making, Permanent

Unskilled and defined decision making, 51 0 0 51 0 38 0 0 38 0 89

Permanent

Contract (Top Management), Permanent 1 0 0 1 0 0 0 0 0 0 1

Contract (Senior Management), 0 0 0 0 0 1 0 0 1 1 2

Permanent

Contract {Professionally qualified), 11 0 0 11 0 9 0 0 9 2 22

Permanent

Contract (Skilled technical), Permanent 5 0 0 5 0 7 0 0 7 0 12

Contract (Semi-skilled), Permanent 8 0 0 8 0 15 0 0 15 0 23

Contract (Unskilled), Permanent 7 0 0 7 0 9 0 0 9 0 16

TOTAL 1455 7 27 1489 74 1156 12 65 1233 56 2852

TABLE 6.3 - Recruitment



Blacks Blacks



Permanent





making, Permanent


Permanent

Contract {Senior Management), 0 0 0 0 0 1 0 0 1 1 2

Permanent

Contract (Professionally qualified), 0 0 0 0 0 2 0 0 2 1 3

Permanent




TOTAL 77 0 1 78 1 83 0 0 83 3 165



Blacks Blacks

TABLE 6.4 - Promotions



Blacks Blacks


Professionally qualified and 150 5 12 167 30 109 1 20 130 19 346

experienced specialists and mid-

management, Permanent

Professionally qualified and 0 0 0 0 0 0 0 0 0 1 1

experienced specialists and mid-

management, Temporary





making, Permanent

Contract {Senior Management), 0 0 0 0 0 2 0 0 2 0 2

Permanent


Permanent


Contract {Semi-skilled), Permanent 4 0 0 4 0 10 0 0 10 0 14

TOTAL 624 6 15 645 41 687 10 56 753 41 1480



Blacks Blacks


TABLE 6.5 -Terminations



Blacks Blacks




Permanent





making, Permanent


Permanent

Contract (Senior Management), 1 0 0 1 0 0 0 0 0 0 1

Permanent


Permanent

Contract {Skilled technical), Permanent 1 0 0 1 0 1 0 0 1 1 3



TOTAL 106 0 1 107 4 70 0 1 71 4 186



Blacks Blacks


TABLE 6.6 - Disciplinary Action

Disciplinary action Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total


Blacks Blacks

TOTAL 59 0 1 59 03 40 0 02 40 00 105

TABLE 6.7 - Skills Development

Occupational Categories Male, Male, Male, Male, Male, Female, Female, Female, Female, Female, Total


Blacks Blacks

Legislators, Senior Officials and 0 0 0 0 0 0 0 0 0 0 0

Managers

Professionals 0 0 0 0 0 0 0 0 0 0 0

Technicians and Associate 0 0 0 0 0 0 0 0 0 0 0

Professionals

Clerks 0 0 0 0 0 0 0 0 0 0 0

Service and Sales Workers 0 0 0 0 0 0 0 0 0 0 0

Skilled Agriculture and Fishery 0 0 0 0 0 0 0 0 0 0 0

Workers

Craft and related Trades Workers 0 0 0 0 0 0 0 0 0 0 0

Plant and Machine Operators and 0 0 0 0 0 0 0 0 0 0 0

Assemblers

Elementary Occupations 0 0 0 0 0 0 0 0 0 0 0

TOTAL 0 0 0 0 0 0 0 0 0 0 0


TABLE 7.1 • Performance Rewards by Race, Gender and Disability

Demographics Number of Total Percentage of Cost Average Cost Beneficiaries Employment Total (R'OOO) per Beneficiary

Employment (R)

African, Female 228 1151 19.8 2 923 12 820

African, Male 269 1444 18.6 3 729 13 864

Asian, Female 34 65 52.3 655 19 256

Asian, Male 14 27 51.9 351 25 059

Coloured, Female 6 12 50 116 19 309

Coloured, Male 5 7 71.4 105 20 984

Total Blacks, Female 268 1228 21.8 3 693 13 782

Total Blacks, Male 288 1478 19.5 4 185 14 531

White, Female 26 55 47.3 543 20 868

White, Male 30 73 41.1 824 27 469

Employees with a disability 4 18 22.2 46 11 437

TOTAL 616 2852 21.6 9 291 15 083

TABLE 7.2 - Performance Rewards by Salary Band for Personnel below Senior Management Service

Salary Band Number of Total Percentage of Cost Average Cost Beneficiaries Employment Total (R'OOO) per Beneficiary

Employment (R)

Lower skilled (Levels 1-2) 3 88 3.4 19 6 333

Skilled (Levels 3-5) 220 1185 18.6 1 607 7 305

Highly skilled production (Levels 6-8) 195 834 23.4 2 820 14 462

Highly skilled supervision (Levels 9-12) 192 625 30.7 4 669 24 318

Contract (Levels 1-2) 0 16 0 0 0

Contract (Levels 3-5) 0 23 0 0 0

Contract (Levels 6-8) 1 12 8.3 19 19 OOO

Contract (Levels 9-12) 4 22 18.2 114 28 500

Periodical Remuneration 0 132 0 0 0

TOTAL 615 2937 20.9 9248 15037

TABLE 7.3 - Performance Rewards by Critical Occupation

Critical Occupations Number of Total Percentage of Cost Average Cost Beneficiaries Employment Total (R'OOO) per Beneficiary

Employment (R)

Administrative related 14 43 32.6 264 18 857

Aqricul animal oceanoqraphy forestry & other scien 14 61 23 290 20 714

Aqriculture related 88 338 26 1 759 19 989

All artisans in the building metal machinery etc. 1 4 25 16 16 OOO

Archivists curators and related professionals 0 1 0 0 0

Artisan project and related superintendents 1 2 50 10 10 OOO

Auxiliary and related workers 16 41 39 149 9 313

Biochemistry pharmacol. zoology & life scie.techni 46 136 33.8 840 18 261

Biologists botanists zoologists & rel professional 1 4 25 7 7 OOO

Bookbinding and related machine operators 0 2 0 0 0

Building and other property caretakers 3 39 7.7 20 6 667

Bus and heavy vehicle drivers 5 16 31.3 41 8 200

Civil engineering technicians 3 10 30 74 24 667

Cleaners in offices workshops hospitals etc. 18 103 17.5 129 7 167

Client inform clerks(switchb recept inform clerks) 0 4 0 0 0

Communication and information related 0 9 0 0 0

Community development workers 0 1 0 0 0

Computer programmers. 1 1 100 11 11 OOO

Computer system designers and analysts. 2 2 100 51 25 500

Conservation labourers 0 1 0 0 0

Economists 2 14 14.3 63 31 500

Electrical and electronics engineering technicians 0 1 0 0 0

Enqineerinq sciences related 1 11 9.1 43 43 OOO

Enoineers and related professionals 6 12 50 187 31 167

Farm hands and labourers 96 540 17.8 708 7 375

Farminq forestry advisors and farm manaoers 1 5 20 15 15 OOO

Finance and economics related 12 15 80 333 27 750

Financial and related professionals 9 24 37.5 192 21 333

Financial clerks and credit controllers 16 57 28.1 212 13 250

Food services aids and waiters 0 1 0 0 0

Forestry labourers 3 6 50 20 6 667

General legal administration & rel. professionals 2 3 66.7 68 34 OOO

Health sciences related 0 1 0 0 0

Horticulturists foresters aqricul.& forestry techn 77 424 18.2 1 430 18 571

Household and laundry workers 4 9 44.4 28 7 OOO

Household food and laundry services related 1 5 20 5 5 OOO

Housekeepers laundry and related workers 4 9 44.4 28 7 OOO

Human resources & organisat developm & relate prof 5 23 21.7 77 15 400

Human resources clerks 20 86 23.3 233 11 650

Human resources related 12 28 42.9 314 26 167

Information technoloqv related 0 1 0 0 0

Language practitioners interpreters & other commun 0 9 0 0 0

Legal related 1 1 100 40 40 OOO

Librarians and related professionals 1 3 33.3 17 17 OOO

Library mail and related clerks 0 2 0 0 0

Light vehicle drivers 8 26 30.8 65 8 125

Loqistical suooort personnel 0 25 0 0 0

Material-recordinq and transport clerks 0 1 0 0 0

Mechanical enqineerinq thechnicians 1 8 12.5 14 14 OOO

Messenqers porters and deliverers 5 23 21.7 57 11 400

Motor vehicle drivers 10 49 20.4 72 7 200

Motorised farm and forestry plant operators 0 5 0 0 0

Natural sciences related 1 5 20 24 24 OOO

Nature conservation and oceanographical rel.techni 0 1 0 0 0

Other administrat & related clerks and organisers 41 200 20.5 508 12 390

Other administrative policy and related officers 11 22 50 194 17 636

Other information technoloqy personnel. 0 2 0 0 0

Other machine operators 3 4 75 16 5 333

Other occupations 9 71 12.7 85 9 444

Production advisers : factories 1 2 50 10 10 OOO

Rank: Unknown 0 1 0 0 0

Risk management and security services 0 3 0 0 0

Safety health and quality inspectors 0 5 0 0 0

Saps 0 1 0 0 0

Secretaries & other keyboard operating clerks 17 43 39.5 204 12 OOO

Security guards 9 149 6 67 7 444

Security officers 1 3 33.3 14 14 OOO

Senior manaqers 0 30 0 0 0

Statisticians and related professionals 0 1 0 0 0

Trade labourers 0 2 0 0 0

Veterinarians 11 42 26.2 246 22 364

Veterinary assistants 2 19 10.5 41 20 500

Water plant and related operators 0 1 0 0 0

TOTAL 616 2852 21.6 9291 15083

TABLE 7.4 - Performance Related Rewards {Cash Bonus) by Salary Band for Senior Management Service

SMS Band Number of Total Percentage of Cost (R'OOO) Average Cost %ofSMS Personnel

Beneficiaries Employment Total per Wage Bill CostSMS

Employment Beneficiary (R'OOO)

(R)

Band A 1 37 2.7 43 43 OOO 0.1 40935

Band B 0 5 0 0 0 0 0

Band C 0 3 0 0 0 0 0

Band D 0 2 0 0 0 0 0

TOTAL 1 47 2.1 43 43000 0.1 40935

TABLE 8.1 - Foreign Workers by Salary Band

Salary Band Employme Percentag Employme Percentag Change in Percentag Total Total Total

nt at e of Total nt at End e of Total Employme e of Total Employme Employme Change in

Beginning of Period nt nt at nt at End Employme

Period Beginning of Period nt

of Period

Skilled (Levels 3-5) 1 9.1 1 8.3 0 0 11 12 1

Highly skilled production 0 0 1 8.3 1 100 11 12 1

(Levels 6-8)

Highly skilled supervision 7 63.6 6 50 -1 -100 11 12 1

(Levels 9-12)

Contract (Levels 9-12) 3 27.3 4 33.3 1 100 11 12 1

TOTAL 11 100 12 100 1 100 11 12 1

TABLE 8.2 - Foreign Workers by Major Occupation

Major Occupation Employme Percentag Employme Percentag Change in Percentag Total Total Total

nt at e of Total nt at End e of Total Employme e of Total Employme Employme Change in

Beginning of Period nt nt at nt at End Employme

Period Beginning of Period nt

of Period

Administrative office workers 1 9.1 1 8.3 0 0 11 12 1

Professionals and managers 8 72.7 9 75 1 100 11 12 1

Technicians and associated 2 18.2 2 16.7 0 0 11 12 1

professionals

TOTAL 11 100 12 100 1 100 11 12 1

TABLE 9.1- Sick Leave for Jan 2015 to Dec 2015

Salary Band Total Days % Days with Number of % of Total Average Estimated Total Total

Medical Employees Employees Days per Cost (R'OOO) number of number of

Certification using Sick using Sick Employee Employees days with

Leave Leave using Sick medical

Leave certification

Lower skilled (Levels 1-2) 182 95.1 27 1.9 7 84 1396 173

Skilled (Levels 3-5) 3897 90.4 547 39.2 7 2 388 1396 3523

Highly skilled production (Levels 6- 3271 84.8 443 31.7 7 3 937 1396 2775

8)

Highly skilled supervision (Levels 9- 2024 88.7 310 22.2 7 3 682 1396 1796

12)

Senior management (Levels 13-16) 158 89.2 23 1.6 7 560 1396 141

Contract (Levels 1-2) 58 63.8 12 0.9 5 17 1396 37

Contract (Levels 3-5) 85 89.4 15 1.1 6 53 1396 76

Contract (Levels 6-8) 54 92.6 11 0.8 5 58 1396 50

TABLE 9.2 - Disability Leave (Temporary and Permanent) for Jan 2015 to Dec 2015

Salary Band Total Days %Days with Number of % of Total Average Estimated Total Total

Medical Employees Employees Days per Cost (R'OOO) number of number of

Certification using using Employee days with Employees

Disability Disability medical using

Leave Leave certification Disability

Leave

Lower skilled (Levels 1-2) 18 100 4 3.6 5 9 18 111

Skilled (Levels 3-5) 1305 99.9 40 36 33 775 1304 111

Highly skilled production (Levels 6- 1198 100 41 36.9 29 1 379 1198 111

8)

Highly skilled supervision (Levels 9- 519 100 22 19.8 24 925 519 111

12)

Senior management (Levels 13-16) 33 100 2 1.8 17 105 33 111

Contract (Levels 3-5) 22 100 1 0.9 22 14 22 111

Contract (Levels 6-8) 39 100 1 0.9 39 40 39 111

TOTAL 3134 100 111 100 28 3247 3133 111

TABLE 9.3 -Annual Leave for Jan 2015 to Dec 2015

Salary Band Total Days Taken Average days per Number of Employees who took

Employee leave

Lower skilled {Levels 1-2) 978 15 65

Skilled {Levels 3-5) 27550.75 24 1148

Highly skilled production {Levels 6-8) 18869.92 23 823

Highly skilled supervision {Levels 9-12) 14321 23 632

Senior management {Levels 13-16) 859 21 41

Contract {Levels 1-2) 226 8 30


Contract (Levels 6-8) 131 10 13


Contract (Levels 13-16) 16 8 2

TOTAL 63352.67 23 2801

TABLE 9.4 - Capped Leave for Jan 2015 to Dec 2015

Salary Band Total days of Average number Average capped

capped leave of days taken per leave per

taken employee employee as at 31

December 2015

Skilled {Levels 3-5) 95 5 101

Highly skilled production {Levels 6-8) 98 8 79

Highly skilled supervision (Levels 9-12) 51 5 138

Senior management (Levels 13-16) 3 2 123

TOTAL 247 6 105

TABLE 9.5 - Leave Payouts

Reason Total Amount Number of Average Payment

(R'OOO) Employees per Employee (R)

Leave payout for 2015/16 due to non-utilisation of leave for the 218 1 218000

previous cycle

Capped leave payouts on termination of service for 2015/16 15 236 208 73250

Current leave payout on termination of service for 2015/16 2 135 72 29653

TOTAL 17589 281 62594

TABLE 10 - Details of Health Promotion and HIV/AIDS Programmes [tick Yes/No and provide required information]

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to implement the The CH: HRM is the designated SMS member

provisions contained in Part VI E of Chapter 1 of the Public Service Regulations,

2001? If so, provide her/his name and position. X

2. Does the department have a dedicated unit or have you designated specific Employee Health and Wellness Component

staff members to promote health and well being of your employees? If so, consisting of 6 employees including Service

indicate the number of employees who are involved in this task and the annual Centers

budget that is available for this purpose. X

3. Has the department introduced an Employee Assistance or Health Promotion HIV/AIDS, STI and TB Management, Health and

Programme for your employees? If so, indicate the key elements/services of Productivity, Wellness Management and SHERQ

the programme. Management, participation in sporting activities X as part of the Work and Play Policy

4. Has the department established (a) committee(s) as contemplated in Part VI X No

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.

5. Has the department reviewed the employment policies and practices of your I Xdepartment to ensure that these do not unfairly discriminate againstemployees on the basis of their HIV status? If so, list the employmentpolicies/practices so reviewed.6. Has the department introduced measures to protect HIV-positive employees I Xor those perceived to be HIV-positive from discrimination? If so, list the keyelements of these measures.

7. Does the department encourage its employees to undergo Voluntary I XCounselling and Testing? If so, list the results that you have achieved.

8. Has the department developed measures/indicators to monitor & evaluate I Xthe impact of your health promotion programme? If so, list thesemeasures/indicators.

Recruitment and selection policy, affirmative action policy, HIV/Aid and TB Management in the workplace.

Through the implementation of the HIV/AIDS and TB management policy, HIV Counselling and Testing is offered in the workplace for early detection. Those that are diagnosed, they are encouraged to consult their family doctors so that they could be initiated on treatment. As from the 1st of September 2016, DC4 count is no longer a prerequisite to access ARV treatment. Information is shared with employees during Integrated Policy workshops. The Department encourages employees on salary level one - five to enrol with GEMS under Sapphire option which offers 100% subsidy in order to promote access to quality health care and improve the quality of life for employees and their families. Yes,533 employees participated on HCT, 16 new infections were recorded

Heath risk Manager report, persal normal sick leave report, GEMS Health trend report, quarterly monitoring report which is submitted to OTP and DPSA

TABLE 11.1- Misconduct and Disciplinary Hearings Finalised

Outcomes of disciplinary hearings Number Percentage of Total Total

TOTAL 96 91 105

TABLE 11.2- Types of Misconduct Addressed and Disciplinary Hearings

Type of misconduct Number Percentage of Total Total

TOTAL 105 100 105

Cases pending as at 31/03/2016 09 8.6 09

TABLE 11.3 - Grievances Lodged Number of grievances addressed Number Percentage of Total Total

Not resolved / not finalized 04 6.8 59

Resolved/ finalized 55 93.2 59

TOTAL 59 100 59

TABLE 11.5 - D" Lodged Number of disputes addressed Number % of total

Upheld 0 0

Dismissed 0 0

Total 0 0

TABLE 11.6 - Strike Actions

Strike Actions NIL

Total number of person workinq days lost 0

Total cost(R'OOO) of working days lost 0

Amount (R'OOO) recovered as a result of no work no pay 0

TABLE 11.7 - P f s

Precautionary Suspensions 03

Number of people suspended 03

Number of people whose suspension exceeded 30 days 03

Average number of days suspended 152

Cost (R'OOO) of suspensions 2,248,718,7

TABLE 12.1 - Training Needs identified

Occupational Categories Gender Employment Learnerships Skills Other forms of Total Programmes & training other short courses

Legislators, senior officials and managers Female 0 0 0 0 0

Male 0 0 0 0 0

Professionals Female 0 0 0 0 0

Male 0 0 0 0 0

Technicians and associate professionals Female 0 0 0 0 0

Male 0 0 0 0 0

Clerks Female 0 0 0 0 0

Male 0 0 0 0 0

Service and sales workers Female 0 0 0 0 0

Male 0 0 0 0 0

Skilled aQriculture and fishery workers Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and related trades workers Female 0 0 0 0 0

Male 0 0 0 0 0

Plant and machine operators and assemblers Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupations Female 0 0 0 0 0

Male 0 0 0 0 0

Gender sub totals Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

TABLE 12.2 -Training Provided

Occupational Categories Gender Employment Learnerships Skills Other forms of Total Programmes & training other short courses

Leqislators, senior officials and manaqers Female 0 0 0 0 0

Male 0 0 0 0 0

Professionals Female 0 0 0 0 0

Male 0 0 0 0 0

Technicians and associate professionals Female 0 0 0 0 0

Male 0 0 0 0 0

Clerks Female 0 0 0 0 0

Male 0 0 0 0 0

Service and sales workers Female 0 0 0 0 0

Male 0 0 0 0 0

Skilled agriculture and fishery workers Female 0 0 0 0 0

Male 0 0 0 0 0

Craft and related trades workers Female 0 0 0 0 0

Male 0 0 0 0 0

Plant and machine operators and assemblers Female 0 0 0 0 0

Male 0 0 0 0 0

Elementary occupations Female 0 0 0 0 0

Male 0 0 0 0 0

Gender sub totals Female 0 0 0 0 0

Male 0 0 0 0 0

Total 0 0 0 0 0

TABLE 13.1 - Injury on Duty

Nature of injury on duty Number % of total

Required basic medical attention only 0 0

Temporary Total Disablement 0 0

Permanent Disablement 0 0

Fatal 0 0

Total 0

• +tiilii·itil;!!#·)&i+i�fii·i •


PART E: FINANCIAL INFORMATION

1. REPORT OF THE AUDITOR GENERAL

This is the auditor's report as issued by AGSA

2. ANNUAL FINCIAL STATEMENTS

Department's word version of the audited annual finacial statements.


AUDITOR'S REPORT FOR THE YEAR ENDED 31 MARCH 2016

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT


Report of the auditor-general to the KwaZulu-Natal Provincial Legislature on vote no. 3: Department of Agriculture and Rural Development Report on the financial statements

Introduction 1. I have audited the financial statements of the Department of Agriculture and Rural Develop

ment set out on pages 133 to 220, which comprise the appropriation statement, the statement

of financial position as at 3 1 March 2016, the statement of financial performance, statement of

changes in net assets, and cash flow statement for the year then ended, as well as the notes,

comprising a summary of significant accounting policies and other explanatory information.

Accounting officer's responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these finan

cial statements in accordance with the Modified Cash Standard (MCS) prescribed by the National

Treasury and the requirements of the Public Finance Management Act of South Africa, 1999 (Act

No. 1 of 1999) (PFMA) and the Division of Revenue Act of South Africa, 2015 (Act No. 1 of 2015)

(DoRA), 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 responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audit in accordance with the 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 department's preparation and fair presentation 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

department'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.


Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the

financial position of the Department of Agriculture and Rural Development as at 31

March 2016 and its financial performance and cash flows for the year then ended, in

accordance with the MCS and the requirements of the PFMA and DoRA.

Emphasis of matter

7. I draw attention to the matter below. My opinion is not modified in respect of this

matter.

Material underspending of the vote

8. As disclosed in the appropriation statement, the department materially underspent

the budget of the overall vote by R93,29 million. This can be attributed to a moratorium

on filling of vacant posts, late rains and slower than anticipated implementation of

drought relief interventions.

Additional matter

9. I draw attention to the matter below. My opinion is not modified in respect of this

matter.

Unaudited supplementary schedules

10. The supplementary information set out on pages 204 to 220 does not form part of

the financial statements and is presented as additional information. I have not audited

these schedules and, accordingly, I do not express an opinion thereon.

Report on other legal and regulatory requirements

11. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004)

(PAA) and the general notice issued in terms thereof, I have a responsibility to report

findings on the reported performance information against predetermined objectives for

selected programmes presented in the annual performance report, compliance with

legislation and internal control. The objective of my tests was to identify reportable

findings as described under each subheading but not to gather evidence to express

assurance on these matters. Accordingly, I do not express an opinion or conclusion on

these matters.

Predetermined objectives

12. I performed procedures to obtain evidence about the usefulness and reliability of the

reported performance information for programme 2 - agricultural development services

on pages 32 to 47 presented in the annual performance report of the department for the

year ended 31 March 2016.


13. I evaluated the usefulness of the reported performance information to determine

whether it was presented in accordance with the National Treasury's annual reporting

principles and whether the reported performance was consistent with the planned

programmes. I further performed tests to determine whether indicators and targets

were well defined, verifiable, specific, measurable, time bound and relevant, as required

by the National Treasury's Framework for managing programme performance

information (FMPPI).

14. I assessed the reliability of the reported performance information to determine

whether it was valid, accurate and complete.

15. I did not raise any material findings on the usefulness and reliability of the reported

performance information for the selected programme.

Additional matters

16. Although I did not raise any material findings on the usefulness and reliability of the

reported performance information for the selected programme, I draw attention to the

following matters:

Achievement of planned targets 17. Refer to the annual performance report on pages 32 to 47 for information on the

achievement of the planned targets for the year.

Adjustment of material misstatements

18. I identified material misstatements in the annual performance report submitted for

auditing on the reported performance information for the agricultural development

services programme. As management subsequently corrected the misstatements, I did

not raise any material findings on the usefulness and reliability of the reported perfor

mance information.

Compliance with legislation

19. I performed procedures to obtain evidence that the department had complied with

applicable legislation regarding financial matters, financial management and other

related matters. My material findings on compliance with specific matters in key

legislation, as set out in the general notice issued in terms of the PAA, are as follows:

Expenditure management 20. Effective steps were not taken to prevent irregular expenditure of R34, 17 million, as

disclosed in note 31 to the annual financial statements, in contravention of section

38(1 )(c)(ii) of the PFMA and treasury regulation 9.1.1.

Internal control

21. I considered internal control relevant to my audit of the financial statements, annual

performance report and compliance with legislation. The matters reported below are

limited to the significant internal control deficiencies that resulted in the findings on the

compliance with legislation included in this report.


Leadership 22. Vacancies in key positions and the use of acting positions affected leadership's ability

to implement effective action plans and internal control policies to create an effective

internal control environment in respect of compliance with legislation.

Financial and performance management 23. Monitoring and contract management processes did not prevent non-compliance

with laws and regulations.

Other reports 24. I draw attention to the following engagements that could potentially have an impact

on the department's financial, performance and compliance related matters. My opinion

is not modified in respect of these engagements that are either in progress or have been

completed.

Investigations 25. Three independent consulting firms performed an investigation at the request of the

department, which covered the period 2011 to 2012. The investigation was initiated

based on an allegation of possible misappropriation of the department's assets. The

investigation resulted in disciplinary actions being instituted against 12 employees, of

which seven have been finalised. At the time of this report, disciplinary proceedings for

five employees were in progress.

26. The provincial treasury's internal audit unit performed nine investigations on

possible supply chain management irregularities covering the period April 2009 to

March 2015.

Five of the investigations were completed and four were still in progress. In addition, one internal investigation was in progress relating to alleged fraudulent activity with regards

to delivery of fencing material.

Pietermaritzburg

29 July 2016

,·-.

_, -·- '' L ·',;)

AU DI TOR - GE N E RAL

SOUT H AF RICA

Auditing to build public confidence


ANNUAL FINANCIAL STATEMENTS

FOR DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

C.if3

For the year ended 31 March 2016



VOTE3

ANNUAL FINANCIAL STATEMENTS

for the year ended 31 March 2016

Table of Contents

Appropriation Statement

Notes to the Appropriation Statement

Statement of Financial Performance

Statement of Financial Position

Statement of Changes in Net Assets

Cash Flow Statement

Notes to the Annual Financial Statements (including Accounting policies)

Annexures


3

34

37

38

39

40

41

74

ffi


VOTE3

Adjusted Shifting of

Appropriation Funds

R'OOO R'OOO

Programme

1. Administration 383 090 -

2. Agriculture 1 907 395 -

3 . Rural Development 1 995 -

Subtotal 2 292 480 -

Statutory Appropriation - -

TOTAL 2 292 480 -

ADD

Departmental receipts

NRF Receipts

Aid assistance

Actual amounts per statement of financial performance (total revenue)

ADD

Aid assistance

Prior year unauthorised expenditure approved without funding

Actual amounts per statement of financial performance (total expenditure)

APPROPRIATION STATEMENT


Appropriation per programme

2015/16

Virement Final Actual

Appropriation Expenditure

R'OOO R'OOO R'OOO

(10 966) 372 124 341 761

10 965 1 918 360 1 855 535

- 1 995 1 891

(1) 2 292 479 2199187

- - -

(1) 2 292 479 2199187

23 712

-

2 482

2 318 673

2 894

2 20 2 0 81

Variance

R'OOO

30 363

62 825

104

93 292

-

93 292

2014/15

Expenditure Final Actual

aso/oof Appropriation Expenditure

final

aooropriation

% R'OOO R'OOO

91.8% 334 211 301 841

96.7% 1 796 835 1 701 203

94.8% - -

95.9% 2131 046 2 0 0 3 044

- - -

95.9% 2131 046 2 0 0 3 044

32 267

-

-

2163 313

1 410

2 0 04 454

Appropriation per economic classification

Adjusted

Appropriation

R'OOO

Economic classification

Current payments 1 828 833

�

Compensation of employees 919 190

Salaries and wages 789 848

Social contributions 129 342

Goods and services 909 643

Administrative fees 1 959

Advertising 6 992

Minor assets 12 097

Audit costs: External 6 833

Bursaries: Employees 7 011

Catering: Departmental activities 2 450

Communication 30 623

Computer services 66 552

Consultants: Business and 1 390 advisory services

Infrastructure and planning 38 843 services

Laboratory services 250

Scientific and technological -

services

Legal services 2 071

Contractors 58 762


VOTE3

Shifting of

Funds

R'OOO

(34 6 02)

-

(2 995)

2 995

(34 602)

214

-

-

-

(3 099)

-

-

-

-

-

-

-

-

(7 541)



2015/16



R'OOO R'OOO R'OOO

(29 737 ) 17 644 94 173 8423

(4 191) 914 999 911 392

(2 679) 784 174 781 300

(1 512) 130 825 130 092

(25 773) 849 268 826 804

(103) 2 070 2 070

(1 148) 5 844 5 844

(6 291) 5 806 5 806

(1 068) 5 765 5 765

(2 461) 1 451 1 451

(1 114) 1 336 1 336

4 372 34 995 34 983

3 978 70 530 58 362

132 1 522 1 522

36 630 75 473 75 473

(197) 53 53

- - -

(434) 1 637 1 637

(6 549) 44 672 44 672

Variance

R'OOO

26 071

3 607

2 874

733

22464

-

-

-

-

-

-

12

12 168

-

-

-

-

-

-

2014/15


as% of flnal Appropriation expenditure

appropriation

% R'OOO R'OOO

9 8.5% 1 642 648 1 56 5342

99.6% 852 364 851 046

99.6% 735 543 734 304

99.4% 116 821 116 742

97.4% 790 113 714 125

100.0% 116 116

100.0% 9 442 9 442

100.0% 4 363 4 307

100.0% 5 517 5 502

100.0% 1 889 1 889

100.0% 2 812 2 812

100.0% 42 294 39 442

82.7% 41 040 40 996

100.0% 1 789 1 789

100.0% 112 269 74 731

100.0% 54 54

- - -

100.0% 2 502 1 986

100.0% 47 843 47 843


Adjusted

Appropriation

R'OOO

Agency and support/ outsourced 11 673 services

Entertainment -

Fleet services 34 041

� Housing

-

Inventory: Clothing material and 8 488 supplies

Inventory: Farming supplies 304 636

Inventory: Food and food supplies -

Inventory: Fuel, oil and gas 3 098

Inventory: Learner and teacher 2 031 support material

Inventory: Materials and supplies 22 015

Inventory: Medical supplies 1 306

Inventory: Medicine 9 952

Medsas Inventory Interface -

Inventory: Other supplies 4 803

Consumable supplies 64 381

Consumable: Stationery, printing 9 250 and office supplies

Operating leases 25 605

Property payments 65 193

Transport provided: Departmental 450 activity

Travel and subsistence 80 002


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

(9 462)

-

-

-

-

(14 500)

-

-

-

-

(214)



2015/16



R'OOO R'OOO R'OOO

2 642 14 315 14 315

- - -

674 34 715 34 715

- - -

(2 698) 5 790 5 790

(47 735) 256 901 251 256

2 2 2

(365) 2 733 2 733

(238) 1 793 1 793

(8 289) 4 264 4 264

(711) 595 595

24 715 34 667 30 036

- - -

(920) 3 883 3 883

(2 935) 46 946 46 946

(1 218) 8 032 8 032

3 679 29 284 29 284

(940) 64 253 64 253

(169) 281 281

(8 006) 71 782 71 774

Variance

R'OOO

-

-

-

-

-

5 645

-

-

-

-

-

4 631

-

-

-

-

-

-

-

8

2014/15


as% of final Appropriation expenditure

appropriation

% R'OOO R'OOO

100.0% 26 262 25 975

- - -

100.0% 35 507 35 507

- - -

100.0% 4 863 4 863

97.8% 168 254 139 717

100.0% 19 -

100.0% 6 077 6 077

100.0% 1 619 1 619

100.0% 5 500 5 500

100.0% 523 523

86.6% 17 895 17 859

- - -

100.0% 3 599 3 599

100.0% 48 115 44 875

100.0% 8 607 8 119

100.0% 25 647 25 647

100.0% 61 046 61 046

100.0% 282 282

100.0% 80 322 78 054


Adjusted

Appropriation

R'OOO

Training and development 11 200

Operating payments 12 848

Venues and facilities 2 758

Rental and hiring 80

Interest and rent on land -

Interest -

Rent on land -

Transfers and subsidies 229 125

Provinces and municipalities 1 273

Provinces 1 260

Provincial Revenue Funds -

Provincial agencies and 1 260 funds

Municipalities 13

Municipal bank accounts -

Municipal agencies and 13 funds

Departmental agencies and accounts 102 309

Social security funds -

Departmental agencies and 102 309 accounts

Higher education institutions -

Foreign governments and international -

organisations


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

34 602

-

-

-

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(4 039) 7 161 7 161

(3 064) 9 784 9 784

(1 885) 873 873

(20) 60 60

227 227 227

157 157 157

70 70 70

4 069 267 796 246 968

40 1 313 1 313

40 1 300 1 300

- - -

40 1 300 1 300

- 13 13

- - -

- 13 13

(40) 102 269 101 306

- - -

(40) 102 269 101 306

- - -

- - -

Variance

R'OOO

-

-

-

-

-

-

-

20 828

-

-

-

-

-

-

-

963

-

963

-

-

2014/15



appropriation

% R'OOO R'OOO

100.0% 8 040 8 040

100.0% 8 874 8 874

100.0% 6 778 6 686

100.0% 354 354

100.0% 171 171

100.0% 108 108

100.0% 63 63

92.2% 224 158 219 116

100.0% 1 237 1 237

100.0% 1 203 1 203

- - -

100.0% 1 203 1 203

100.0% 34 34

- - -

100.0% 34 34

99.1% 108 351 108 351

- 1 1

99.1% 108 350 108 350

- - -

- - -


Adjusted

Appropriation

R'OOO

Public corporations and private 100 453 enterprises

Public corporations 54 563

Subsidies on products and -

production

� Other transfers to public 54 563 corporations

Private enterprises 45 890


production

Other transfers to private 45 890 enterprises

Non-profit institutions 13 770

Households 11 320

Social benefits 11 309

Other transfers to households 11

Payments for capital assets 234 522

Buildings and other fixed structures 159 375

Buildings 15 657

Other fixed structures 143 718

Machinery and equipment 75 105

Transport equipment 25 985

Other machinery and equipment 49 120


VOTE3

Shifting of

Funds

R'OOO

31 503

9 636

-

9 636

21 867

-

21 867

-

3 099

-

3 099

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

- 131 956 112 091

- 64 199 64 199

- - -

- 64 199 64 199

- 67 757 47 892

- - -

- 67 757 47 892

- 13 770 13 770

4 069 18 488 18 488

4 069 15 378 15 378

- 3 110 3 110

25 0 48 25 9 570 213177

41 046 200 421 172 688

(7 109) 8 548 8 548

48 155 191 873 164 140

(16 306) 58 799 40 139

- 25 985 17 896

(16 306) 32 814 22 243

Variance

R'OOO

19 865

-

-

-

19 865

-

19 865

-

-

-

-

46393

27 733

-

27 733

18 660

8 089

10 571

2014/15



appropriation

% R'OOO R'OOO

84.9% 96 254 91 962

100.0% 74 853 73 165

- - -

100.0% 74 853 73 165

70.7% 21 401 18 797

- - -

70.7% 21 401 18 797

100.0% 6 050 5 300

100.0% 12 266 12 266

100.0% 12 132 12 132

100.0% 134 134

82.1% 260 832 215 178

86.2% 217 324 182 814

100.0% 19 393 3 654

85.5% 197 931 179 160

68.3% 43 134 32 180

68.9% 21 383 20 481

67.8% 21 751 11 699


Adjusted

Appropriation

R'OOO

Heritage assets -

Specialised military assets -

Biological assets 42

Land and subsoil assets -

g Intangible assets -

Payments for financial assets -

Total 2 292 480


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

- - -

- - -

308 350 350

- - -

- - -

619 619 619

Variance

R'OOO

-

-

-

-

-

-

- (1) 2 292 479 2 199 187 93 292

2014/15



appropriation

% R'OOO R'OOO

- - -

- - -

100.0% 258 145

- - -

- 116 39

100.0% 3 408 3 408

95.9% 2 131 046 2 003 044

Programme 1: ADMINISTRATION

Adjusted

Appropriation

R'OOO

Sub programme

1.1 Office of the MEC 16 941

1.2 Senior Management 30 402

1.3 Corporate Support Services 221 753

� 1.4 Financial Management 82 675

1.5 Communication Services 31 319

Total for sub programmes 383 090


Current payments 325 651





Administrative fees 854

Advertising 6 786

Minor assets 2 048

Audit costs: External 6 833

Bursaries: Employees 6 451

Catering: Departmental activities 526




VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

(3 099)

-

(7)

7

(3 099)

66

-

-

-

(3 099)

-

-

-



2015/16



R'OOO R'OOO R'OOO

(2 797) 14 144 14 129

836 31 238 31 238

3 742 225 495 201 514

(7 221) 75 454 69 089

(5 526) 25 793 25 791

(10 966) 372 124 341 761

(4 637) 317 915 304 101

(332) 141 240 139 594

612 122 432 121 335

(944) 18 808 18 259

(4 355) 176 625 164 457

(18) 902 902

(994) 5 792 5 792

155 2 203 2 203

(1 068) 5 765 5 765

(2 092) 1 260 1 260

14 540 540

5 886 19 911 19 911

(3 796) 59 473 47 305

Variance

R'OOO

15

-

23 981

6 365

2

30 363

13 814

1 646

1 097

549

12 168

-

-

-

-

-

-

-

12 168

2014/15



appropriation

% R'OOO R'OOO

99.9% 20 756 17 968

100.0% 28 386 27 492

89.4% 168 429 167 271

91.6% 84 515 64 957

100.0% 32 125 24 153

91.8% 334 211 301 841

95.7% 282 058 274 813

98.8% 124 814 124 146

99.1% 109 107 108 518

97.1% 15 707 15 628

93.1% 157 170 150 593

100.0% 1 1

100.0% 9 273 9 273

100.0% 1 434 1 378

100.0% 5 517 5 502

100.0% 1 300 1 300

100.0% 383 383

100.0% 20 795 17 943

79.5% 39 995 39 951


Adjusted

Appropriation

R'OOO

Consultants: Business and 1 093 advisory services

Infrastructure and planning 602 services

�

Laboratory services -

Scientific and technological -

services

Legal services 2 071

Contractors 9 019

Agency and support/ outsourced -

services

Entertainment -


Housing -

Inventory: Clothing material and 558 supplies

Inventory: Farming supplies -


Inventory: Fuel, oil and gas 17

Inventory: Learner and teacher 80 support material


Inventory: Medical supplies -

Inventory: Medicine -



VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

379 1 472 1 472

1 049 1 651 1 651

- - -

- - -

(434) 1 637 1 637

2 710 11 729 11 729

242 242 242

- - -

(53) 5 310 5 310

- - -

1 259 1 817 1 817

- - -

- - -

(13) 4 4

(80) - -

(4 732) 591 591

- - -

- - -

- - -

Variance

R'OOO

2014/15



appropriation

% R'OOO R'OOO

- 100.0% 1 789 1 789

- 100.0% 744 744

- - - -

- - - -

- 100.0% 2 502 1 986

- 100.0% 10 460 10 460

- 100.0% 633 442

- - - -

- 100.0% 6 411 6 411

- - - -

- 100.0% 413 413

- - - -

- - 19 -

- 100.0% 2 2

- - 172 172

- 100.0% 502 502

- - 78 78

- - - -

- - - -


Adjusted

Appropriation

R'OOO

Inventory: Other supplies -

Consumable supplies 1 925


:E Operating leases 1 590


Transport provided: Departmental -activity





Rental and hiring -


Interest -

Rent on land -


Provinces and municipalities 980

Provinces 980

Provincial Revenue Funds -

Provincial agencies and 980 funds


VOTE3



2015/16

Shifting of Virement Final Actual Variance

Funds Appropriation Expenditure

R'OOO R'OOO R'OOO R'OOO R'OOO

- - - - -

- (759) 1 166 1 166 -

- 652 4 149 4 149 -

- 228 1 818 1 818 -

- 1 822 28 743 28 743 -

- - - - -

(66) (1 950) 14 287 14 287 -

- 11 3 893 3 893 -

- (2 004) 1 468 1 468 -

- (769) 802 802 -

- - - - -

- 50 50 50 -

- 50 50 50 -

- - - - -

3 099 459 7 637 6 682 955

- 167 1 147 1 147 -

- 167 1 147 1 147 -

- - - - -

- 167 1 147 1 147 -

2014/15



appropriation

% R'OOO R'OOO

- - -

100.0% 1 259 1 210

100.0% 5 132 4 644

100.0% 1 676 1 676

100.0% 24 858 24 858

- 15 15

100.0% 16 749 14 481

100.0% 3 509 3 509

100.0% 1 187 1 187

100.0% 356 277

- 6 6

100.0% 74 74

100.0% 74 74

- - -

87.5% 4 219 4 219

100.0% 619 619

100.0% 619 619

- - -

100.0% 619 619

Adjusted

Appropriation

R'OOO

Municipalities -


Municipal agencies and -

funds

i5 Departmental agencies and accounts 2 800

Social security funds -

Departmental agencies 2 800 Higher education institutions

-


organisations

Public corporations and private 5 enterprises

Public corporations -


production

Other transfers to public -

corporations

Private enterprises 5 Subsidies on products and

-

production

Other transfers to private 5 enterprises

Non-profit institutions -

Households 294 Social benefits 283 Other transfers to households 11


VOTE3




2015/16




- - - - -

- - - - -

- - - - -

- (40) 2 760 1 805 955

- - - - -

- (40) 2 760 1 805 955

- - - - -

- - - - -

- - 5 5 -

- - - - -

- - - - -

- - - - -

- - 5 5 -

- - - - -

- - 5 5 -

- - - - -

3 099 332 3 725 3 725 -

- 332 615 615 -

3 099 - 3 110 3 110 -

2014/15



appropriation

% R'OOO R'OOO

- - -

- - -

- - -

65.4% 1 938 1 938

- - -

65.4% 1 938 1 938

- - -

- - -

100.0% - -

- - -

- - -

- - -

100.0% - -

- - -

100.0% - -

- - -

100.0% 1 662 1 662

100.0% 1 588 1 588

100.0% 74 74


Adjusted

Appropriation

R'OOO



Buildings 15 657

i5 Other fixed structures

-




Heritage assets -


Biological assets -


Intangible assets -


Total 383 090


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(7 407) 45 953 30 359

(7 109 ) 8548 8 548

(7 109 ) 8548 8 548

- - -

(298) 37 405 21 811

- 18 981 13 958

(298) 18424 7 853

- - -

- - -

- - -

- - -

- - -

619 619 619

(10 966) 372 124 341 761

Variance

R'OOO

15 594

-

-

-

15 594

5 023

10 571

-

-

-

-

-

-

30 363

2014/15



appropriation

% R'OOO R'OOO

66.1% 44 526 19 401

100.0% 19 393 3 654

100.0% 19 393 3 654

- - -

58.3% 25 056 15 747

73.5% 13 935 13 033

42.6% 11 121 2 714

- - -

- - -

- - -

- - -

- 77 -

100.0% 3 408 3 408

91.8% 334 211 301 841

1.1 Office of the MEC


Current payments

Compensation of employees

Goods and services

Interest and rent on land

:E Transfers and subsidies

Provinces and municipalities

Departmental agencies and accounts

Higher education institutions

Foreign governments and international organisations

Public corporations and private enterprises

Non-profit institutions

Households

Payments for capital assets

Buildings and other fixed structures

Machinery and equipment

Heritage assets

Specialised military assets

Biological assets

Land and subsoil assets

Intangible assets

Payments for financial assets

Total


VOTE3


Appropriation Funds

R'OOO R'OOO

16 722 -

8 634 -

8 088 -

- -

115 -

- -

- -

- -

- -

- -

- -

115 -

104 -

- -

104 -

- -

- -

- -

- -

- -

- -

16 941 -



2015/16



R'OOO R'OOO R'OOO

(2 761) 13 961 13 946

(6) 8 628 8 613

(2 755) 5 333 5 333

- - -

6 121 121

- - -

- - -

- - -

- - -

- - -

- - -

6 121 121

(42) 62 62

- - -

(42) 62 62

- - -

- - -

- - -

- - -

- - -

- - -

(2 797) 14 144 14 129

Variance

R'OOO

2014/15



appropriation

% R'OOO R'OOO

15 99.9% 20 479 17 691

15 99.8% 10 334 10 196

- 100.0% 10 145 7 495

- - - -

- 100.0% 74 74

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- 100.0% 74 74

- 100.0% 203 203

- - - -

- 100.0% 203 203

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

15 99.9% 20 756 17 968

1.2 Senior Management


Current payments


Goods and services


C; Transfers and subsidies







Households




Heritage assets

Specialised military assets

Biological assets

Land and subsoil assets

Intangible assets


Total


VOTE3


Appropriation Funds

R'OOO R'OOO

29 638 -

17 251 -

12 387 -

- -

38 -

- -

- -

- -

- -

5 -

- -

33 -

726 -

156 -

570 -

- -

- -

- -

- -

- -

- -

30 402 -



2015/16



R'OOO R'OOO R'OOO

1 177 30 815 30 815

861 18 112 18 112

316 12 703 12 703

- - -

59 97 97

- - -

- - -

- - -

- - -

- 5 5

- - -

59 92 92

(400) 326 326

(156) - -

(244) 326 326

- - -

- - -

- - -

- - -

- - -

- - -

836 31 238 31 238

Variance

R'OOO

2014/15



appropriation

% R'OOO R'OOO

- 100.0% 27 202 26 308

- 100.0% 15 799 15 741

- 100.0% 11 403 10 567

- - - -

- 100.0% 98 98

- - - -

- - - -

- - - -

- - - -

- 100.0% - -

- - - -

- 100.0% 98 98

- 100.0% 153 153

- - - -

- 100.0% 153 153

- - - -

- - - -

- - - -

- - - -

- - - -

- - 933 933

- 100.0% 28 386 27 492

1.3 Coroorate Sunnort Services

Adjusted

Appropriation

Economic classification R'OOO





� Transfers and subsidies 2 836

Provinces and municipalities -



Foreign governments and -

international organisations

Public corporations and private -

enterprises


Households 36


Buildings and other fixed structures 271


Heritage assets -

Biological assets -

Intangible assets -


Total 221 753


VOTE3

Shifting of

Funds

R'OOO

(3 099)

-

(3 099)

-

3 099

-

-

-

-

-

-

3 099

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

2 750 201 173 188 718

(1 062) 64 022 63 735

3 765 137 104 124 936

47 47 47

102 6 037 5 082

- - -

(40) 2 760 1 805

- - -

- - -

- - -

- - -

142 3 277 3 277

271 17 666 7 095

67 338 338

204 17 328 6 757

- - -

- - -

- - -

619 619 619

3 742 225 495 201 514

Variance

R'OOO

12 455

287

12 168

-

955

-

955

-

-

-

-

-

10 571

-

10 571

-

-

-

-

23 981

2014/15



appropriation

% R'OOO R'OOO

93.8% 162 952 162 252

99.6% 54 176 53 756

91.1% 108 709 108 429

100.0% 67 67

84.2% 2 838 2 838

- - -

65.4% 1 938 1 938

- - -

- - -

- - -

- - -

100.0% 900 900

40.2% 2 639 2 181

100.0% 424 424

39.0% 2 211 1 757

- - -

- - -

- 4 -

100.0% - -

89.4% 168 429 167 271

1.4 Financial Manaaement

Adjusted

Appropriation








Departmental agencies and accounts -




Public corporations and private .

enterprises


Households 70




Heritage assets -

Biological assets -

Intangible assets


Total 82 675


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

.

-

-

-

-

.

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(693) 46 347 45 005

(46) 38 919 37 577

(650) 7 425 7 425

3 3 3

213 1 263 1 263

167 1 147 1 147

- - -

- - -

- - -

. . .

- - -

46 116 116

(6 741) 27 844 22 821

(7 020) 8 210 8 210

279 19 634 14 611

- - -

- - -

-

- - -

(7 221) 75 454 69 089

Variance

R'OOO

1 342

1 342

-

-

-

-

-

-

-

.

-

-

5 023

-

5 023

-

-

-

-

6 365

2014/15



appropriation

% R'OOO R'OOO

97.1% 44 831 44 671

96.6% 34 081 34 029

100.0% 10 743 10 635

100.0% 7 7

100.0% 1 203 1 203

100.0% 619 619

- - -

- - -

- - -

- . .

- - -

100.0% 584 584

82.0% 36 006 16 608

100.0% 18 969 3 230

74.4% 16 964 13 378

- - -

- - -

- 73 -

- 2 475 2 475

91.6% 84 515 64 957

1.5 Communication Services

Adjusted

Appropriation






� Transfers and subsidies 40






Public corporations and private .

enterprises


Households 40

Payments for capital assets 550

Buildings and other fixed structures -

Machinery and equipment 550

Heritage assets -

Biological assets -

Intangible assets .


Total 31 319


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

.

-

-

-

-

.

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(5 110) 25 619 25 617

(79) 11 559 11 557

(5 031) 14 060 14 060

- - -

79 119 119

- - -

- - -

- - -

- - -

. . .

- - -

79 119 119

(495) 55 55

- - -

(495) 55 55

- - -

- - -

- - -

- - -

(5 526) 25 793 25 791

Variance

R'OOO

2014/15



appropriation

% R'OOO R'OOO

2 100.0% 26 594 23 891

2 100.0% 10 424 10 424

- 100.0% 16 170 13 467

- - - -

- 100.0% 6 6

- - - -

- - - -

- - - -

- - - -

. - . .

- - - -

- 100.0% 6 6

- 100.0% 5 525 256

- - - -

- 100.0% 5 525 256

- - - -

- - - -

- - - -

- - - -

2 100.0% 32 125 24 153

Programme 2: Aariculture

Adjusted

Appropriation

R'OOO

Sub programme

2.1 Sustainable Resource Management 86 461

2.2 Farmer Support and Development 1 314 231

� 2.3 Veterinary Services 185 389

2.4 Research and Technology 204 807

Development

2.5 Agricultural Economic Services 6 397

2.6 Structured Agricultural Education and 110 110

Traininq

Total for sub programmes 1 907 395


Current payments 1 501 187





Administrative fees 1 105

Advertising 206

Minor assets 10 049

Audit costs: External -

Bursaries: Employees 560


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

(31 503)

-

(3 094)

3 094

(31 503)

146

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(10 969) 75 492 75 492

67 768 1 381 999 1 326 626

(15 939) 169 450 163 086

(22 317) 182 490 181 914

(327) 6 070 5 699

(7 251) 102 859 102 718

10 965 1 918 360 1 855 535

(25 100) 1444 584 1432431

(3 737) 772 133 770 256

(3 169) 660 305 658 554

(568) 111 828 111 702

(21 540) 672 274 661 998

(92) 1 159 1 159

(154) 52 52

(6 446) 3 603 3 603

- - -

(369) 191 191

Variance

R'OOO

-

55 373

6 364

576

371

141

62 825

12 153

1 877

1 751

126

10 276

-

-

-

-

-

2014/15



appropriation

% R'OOO R'OOO

100.0% 79 655 77 460

96.0% 1 253 807 1 167 294

96.2% 183 047 182 517

99.7% 171 693 169 990

93.9% 6 561 6 262

99.9% 102 072 97 680

96.7% 1 796 835 1 701 203

99.2% 1 360 590 1 290 529

99.8% 727 550 726 900

99.7% 626 436 625 786

99.9% 101 114 101 114

98.5% 632 943 563 532

100.0% 115 115

100.0% 169 169

100.0% 2 929 2 929

- - -

100.0% 589 589


Adjusted

Appropriation

R'OOO

Catering: Departmental activities 1 924



Consultants: Business and 297

gj advisory services

Infrastructure and planning 38 241 services

Laboratory services 250

Scientific and technological -services

Legal services -

Contractors 49 743

Agency and support/ outsourced 11 673 services

Entertainment -


Housing -

Inventory: Clothing material and 7 930 supplies

Inventory: Farming supplies 304 636


Inventory: Fuel, oil and gas 3 081

Inventory: Learner and teacher 1 951 support material



VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

(7 541)

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(1 128) 796 796

(1 499) 15 072 15 072

7 774 11 057 11 057

(247) 50 50

35 581 73 822 73 822

(197) 53 53

- - -

- - -

(9 259) 32 943 32 943

2 400 14 073 14 073

- - -

727 29 405 29 405

- - -

(3 957) 3 973 3 973

Variance

R'OOO

-

-

-

-

-

-

-

-

-

-

-

-

-

-

- (47 735) 256 901 251 256 5 645

- 2 2 2 -

- (352) 2 729 2 729 -

- (158) 1 793 1 793 -

(9 462) (3 557) 3 673 3 673 -

2014/15



appropriation

% R'OOO R'OOO

100.0% 2 429 2 429

100.0% 21 499 21 499

100.0% 1 045 1 045

100.0% - -

100.0% 111 525 73 987

100.0% 54 54

- - -

- - -

100.0% 37 383 37 383

100.0% 25 629 25 533

- - -

100.0% 29 096 29 096

- - -

100.0% 4 450 4 450

97.8% 168 254 139 717

100.0% - -

100.0% 6 075 6 075

100.0% 1 447 1 447

100.0% 4 998 4 998


Adjusted

Appropriation

R'OOO

Inventory: Medical supplies 1 306

Inventory: Medicine 9 952


Inventory: Other supplies 4 803

� Consumable supplies 62 456


Operating leases 24 015


Transport provided: Departmental 450 activity





Rental and hiring 80


Interest -

Rent on land -



Provinces 280

Provincial agencies & funds 280


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

(14 500)

-

-

-

-

(146)

-

-

-

-

-

-

-

31 503

-

-

-



2015/16



R'OOO R'OOO R'OOO

(711) 595 595

24 715 34 667 30 036

- - -

(920) 3 883 3 883

(2 176) 45 780 45 780

(1 870) 3 883 3 883

3 451 27 466 27 466

(2 762) 35 510 35 510

(169) 281 281

(6 186) 57 147 57 147

(4 050) 3 268 3 268

(1 060) 8 316 8 316

(1 116) 71 71

(20) 60 60

177 177 177

107 107 107

70 70 70

3 610 260 159 240 286

(127) 166 166

(127) 153 153

(127) 153 153

Variance

R'OOO

-

4 631

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

19 873

-

-

-

2014/15



appropriation

% R'OOO R'OOO

100.0% 445 445

86.6% 17 895 17 859

- - -

100.0% 3 599 3 599

100.0% 46 856 43 665

100.0% 3 475 3 475

100.0% 23 971 23 971

100.0% 36 188 36 188

100.0% 267 267

100.0% 63 573 63 573

100.0% 4 531 4 531

100.0% 7 687 7 687

100.0% 6 422 6 409

100.0% 348 348

100.0% 97 97

100.0% 34 34

100.0% 63 63

92.4% 219 939 214 897

100.0% 618 618

100.0% 584 584

100.0% 584 584


Adjusted

Appropriation

R'OOO

Municipalities 13


Municipal agencies and 13 funds


� Social security funds

-

Departmental agencies and 99 509 accounts



organisations


Public corporations 54 563


production

Other transfers to public 54 563 corporations

Private enterprises 45 885


production

Other transfers to private 45 885 enterprises


Households 11 026

Social benefits 11 026

Other transfers to households -


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

31 503

9 636

-

9 636

21 867

-

21 867

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

- 13 13

- - -

- 13 13

- 99 509 99 501

- - -

- 99 509 99 501

- - -

- - -

- 131 951 112 086

- 64199 64199

- - -

- 64199 64199

- 67 752 47 887

- - -

- 67 752 47 887

- 13 770 13 770

3 737 14 763 14 763

3 737 14 763 14 763

- - -

Variance

R'OOO

-

-

-

8

-

8

-

-

19 865

-

-

-

19 865

-

19 865

-

-

-

-

2014/15



appropriation

% R'OOO R'OOO

100.0% 34 34

- - -

100.0% 34 34

100.0% 106 413 106 413

- 1 1

100.0% 106 412 106 412

- - -

- - -

84.9% 96 254 91 962

100.0% 74 853 73 165

- - -

100.0% 74 853 73 165

70.7% 21 401 18 797

- - -

70.7% 21 401 18 797

100.0% 6 050 5 300

100.0% 10 604 10 604

100.0% 10 544 10 544

- 60 60

Aoorooriation oer economic classification

Adjusted

Appropriation

R'OOO



Buildings -

Other fixed structures 143 718

� Machinery and equipment 37 402



Heritage assets -




Intangible assets -


Total 1907 395


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

32455 213 617 182 818

48 155 191 873 164 140

- - -

48 155 191 873 164 140

(16 008) 21 394 18 328

- 7 004 3 938

(16 008) 14 390 14 390

- - -

- - -

308 350 350

- - -

- - -

- - -

10 965 1918 360 1 855 535

Variance

R'OOO

30 799

27 733

-

27 733

3 066

3 066

-

-

-

-

-

-

-

62 825

2014/15



appropriation

% R'OOO R'OOO

85.6% 216 306 195 7 7 7

85.5% 197 931 179 160

- - -

85.5% 197 931 179 160

85.7% 18 078 16 433

56.2% 7 448 7 448

100.0% 10 630 8 985

- - -

- - -

100.0% 258 145

- - -

- 39 39

- - -

96.7 % 1 796 835 1 7 01 203

2.1 Sustainable Resource Manaaement

Adjusted

Appropriation






f Transfers and subsidies 2 260








Households 760




Heritage assets -

Biological assets -

Intangible assets -


Total 86 461


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(9 934) 72 837 72 837

305 29 390 29 390

(10 239) 43 447 43 447

- - -

(329) 1 931 1 931

- - -

- - -

- - -

- - -

- 1 500 1 500

- - -

(329) 431 431

(706) 724 724

- - -

(706) 724 724

- - -

- - -

- - -

- - -

(10 969) 75 492 75 492

Variance

R'OOO

2014/15



appropriation

% R'OOO R'OOO

- 100.0% 72 293 70 594

- 100.0% 24 503 24 503

- 100.0% 47 790 46 091

- - - -

- 100.0% 2 189 1 702

- - - -

- - - -

- - - -

- - - -

- 100.0% 1 756 1 269

- - - -

- 100.0% 433 433

- 100.0% 5173 5164

- - 3 977 3 968

- 100.0% 1 196 1 196

- - - -

- - - -

- - - -

- - - -

- 100.0% 79 655 77 460

2.2 Farmer Sunnort and Develooment

Adjusted

Appropriation






81 Transfers and subsidies 205 593








Households 6 865




Heritage assets -

Biological assets

Intangible assets -


Total 1 314 231


VOTE3

Shifting of

Funds

R'OOO

(31 503)

-

(31 503)

-

31 503

-

-

-

-

31 503

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(2 278) 959 051 948 207

(2 405) 446 473 445 905

27 512 478 502 202

100 100 100

1 973 239 069 219 204

(127) 153 153

- 99 500 99 500

- - -

- - -

- 130 451 110 586

- - -

2 100 8 965 8 965

68 073 183 879 159 215

68 346 165 729 144 131

(273) 18 150 15 084

- - -

-

- - -

- - -

67 768 1 381 999 1 326 626

Variance

R'OOO

10 844

568

10 276

-

19 865

-

-

-

-

19 865

-

-

24664

21 598

3 066

-

-

-

-

55 373

2014/15



appropriation

% R'OOO R'OOO

98.9% 859 574 795 628

99.9% 417 115 417 096

98.0% 442 431 378 504

100.0% 28 28

91.7% 209 703 205 898

100.0% 584 584

100.0% 106 412 106 412

- - -

- - -

84.8% 94 498 90 693

- - -

100.0% 8 209 8 209

86.6% 184 530 165 768

87.0% 176 860 158 098

83.1% 7 525 7 525

- - -

- 145 145

- - -

- - -

96.0% 1 253 807 1 167 294

<ri c:n

2.3 Veterinarv Services


Current payments


Goods and services


Transfers and subsidies







Households




Heritage assets

Biological assets

Intangible assets


Total

Adjusted

Appropriation

R'OOO

152 234

112 347

39 887

-

1 192

-

9

-

-

-

1 183

31 963

28 954

3 009

-

-

-

-

185 389


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

591 152 825 152 604

(909) 111 438 111 217

1 500 41 387 41 387

- - -

909 2 101 2 093

- - -

- 9 1

- - -

- - -

- - -

-

909 2 092 2 092

(17 439) 14 524 8 389

(15 366) 13 588 7 453

(2 073) 936 936

- - -

- - -

- - -

- - -

(15 939) 169 450 163 086

Variance

R'OOO

221

221

-

-

8

-

8

-

-

-

-

-

6 135

6 135

-

-

-

-

-

6 364

2014/15



appropriation

% R'OOO R'OOO

99.9% 170 897 170 367

99.8% 101 537 101 537

100.0% 69 360 68 830

- - -

99.6% 5 865 5 865

- - -

11.1% 1 1

- - -

- - -

- - -

- 5 300 5 300

100.0% 564 564

57.8% 6 285 6 285

54.8% 5 277 5 277

100.0% 1 008 1 008

- - -

- - -

- - -

- - -

96.2% 183 047 182 517

2.4 Research and Technoloav Develooment

Adjusted

Appropriation






gj Transfers and subsidies 1 759




Foreign governments and international -organisations


enterprises


Households 1 759




Heritage assets -


Intangible assets -


Total 204 807


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(9 849) 172 542 171 966

(639) 133 965 133 389

(9 281) 38 506 38 506

71 71 71

639 2 398 2 398

- - -

- - -

- - -

- - -

- - -

- - -

639 2 398 2 398

(13 107) 7 550 7 550

(773) 5 627 5 627

(12 642) 1 573 1 573

- - -

308 350 350

- - -

- - -

(22 317) 182 490 181 914

Variance

R'OOO

576

576

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

576

2014/15



appropriation

% R'OOO R'OOO

99.7% 163 619 163 619

99.6% 124 665 124 665

100.0% 38 890 38 890

100.0% 64 64

100.0% 1 010 1 010

- - -

- - -

- - -

- - -

- - -

- - -

100.0% 1 010 1 010

100.0% 7 064 5 361

100.0% 2 144 2 144

100.0% 4 807 3 217

- - -

100.0% 113 -

- - -

- - -

99.7% 171 693 169 990

2.5 Aaricultural Economic Services

Adjusted

Appropriation




Goods and services 744


gi Transfers and subsidies

-




Foreign governments and international -organisations


enterprises


Households -

Payments for capital assets 40



Heritage assets -

Biological assets -

Intangible assets -


Total 6 397


VOTE3



2015/16




- (326) 6 031 5 660 371

- (39) 5 574 5 203 371

- (287) 457 457 -

- - - - -

- 39 39 39 -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- 39 39 39 -

- (40) - - -

- - - - -

- (40) - - -

- - - - -

- - - - -

- - - - -

- - - - -

- (327) 6 070 5 699 371

2014/15



appropriation

% R'OOO R'OOO

93.8% 6 506 6 262

93.3% 5 558 5 491

100.0% 948 771

- - -

100.0% - -

- - -

- - -

- - -

- - -

- - -

- - -

100.0% - -

- 55 -

- - -

- 55 -

- - -

- - -

- - -

- - -

93.9% 6 561 6 262

2.6 Structured Aaricultural Education and Trainina

Adjusted

Appropriation











organisations


enterprises


Households 459




Heritage assets -

Biological assets -

Intangible assets


Total 110 110


VOTE3



2015/16




- (3 304) 81 298 81 157 141

- (50) 45 293 45 152 141

- (3 260) 35 999 35 999 -

- 6 6 6 -

- 379 14 621 14 621 -

- - 13 13 -

- - - - -

- - - - -

- - - - -

- - - - -

- - 13 770 13 770 -

- 379 838 838 -

- (4 326) 6 940 6 940 -

- (4 052) 6 929 6 929 -

- (274) 11 11 -

- - - - -

- - - - -

- -

- - - - -

- (7 251) 102 859 102 718 141

2014/15



appropriation

% R'OOO R'OOO

99.8% 87 701 84 059

99.7% 54 172 53 608

100.0% 33 524 30 446

100.0% 5 5

100.0% 1 172 422

100.0% 34 34

- - -

- - -

- - -

- - -

100.0% 750 -

100.0% 388 388

100.0% 13 199 13 199

100.0% 9 673 9 673

100.0% 3 487 3 487

- - -

- - -

- 39 39

- - -

99.9% 102 072 97 680

Programme 3: RURAL DEVELOPMENT

Adjusted

Appropriation

R'OOO

Sub programme

3.1 Rural Development Co-Ordination 1 190

3.2 Social Facilitation 805

Total for sub programmes 1 995





Social contributions 295


Administrative fees -

Advertising -

Minor assets -

Audit costs: External -

Bursaries: Employees -

Catering: Departmental activities -

Communication 27

Computer services -

Consultants: Business and -

advisory services

Infrastructure and planning -

services

Laboratory services -


VOTE3



2015/16




- (17) 1 173 1 089 84

- 17 822 802 20

- - 1 995 1 891 104

- - 1 995 1 891 104

- (122) 1 626 1 542 84

106 (122) 1 437 1 411 26

(106) - 189 131 58

- 122 369 349 20

2 7 9 9 -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- (15) 12 - 12

- - - - -

- - - - -

- - - - -

- - - - -

2014/15



appropriation

% R'OOO R'OOO

92.8% - -

97.6% - -

94.8% - -

94.8% - -

94.8% - -

98.2% - -

69.3% - -

94.6% - -

100.0% - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -


Adjusted

Appropriation

R'OOO

Transport provided: Departmental -

activity

Travel and subsistence 220

Rental and hiring -


§:i Transfers and subsidies

-





organisations


enterprises


Households -

Payments for capital assets -


Machinery and equipment -

Heritage assets -

Biological assets -

Intangible assets -


Total 1 995


VOTE3



2015/16




- - - - -

(2) 130 348 340 8

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - - - -

- - 1 995 1 891 104

2014/15



appropriation

% R'OOO R'OOO

- - -

97.7% - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

94.8% - -

3.1 Rural Development Co-Ordination

Adjusted

Appropriation

Economic classlflcatlon R'OOO

Current payments 1190




� Transfers and subsidies -





organisations


enterprises


Households -




Heritage assets -

Biological assets -

Intangible assets -


Total 1190


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

(17) 1173 1 089

(139) 916 832

122 257 257

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

(17) 1173 1 089

Variance

R'OOO

2014/15



appropriation

% R'OOO R'OOO

84 92.8% - -

84 90.8% - -

- 100.0% - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

84 92.8% - -

3.2 Social Facilitation

Adjusted

Appropriation


Current payments 805

Compensation of employees 693



ffi Transfers and subsidies -





organisations


enterprises


Households -




Heritage assets -

Biological assets -

Intangible assets -


Total 805


VOTE3

Shifting of

Funds

R'OOO

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-



2015/16



R'OOO R'OOO R'OOO

17 822 802

17 710 710

- 112 92

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

17 822 802

Variance

R'OOO

2014/15



appropriation

% R'OOO R'OOO

20 97.6% - -

- 100.0% - -

20 82.1% - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

20 97.6% - -


VOTE3

NOTES TO THE APPROPRIATION STATEMENT


1. Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure

notes and Annexure 1 (A-H) to the Annual Financial Statements.

2. Detail of specifically and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual

Financial Statements.

3. Detail on payments for financial assets

Detail of these transactions per programme can be viewed in the note on Payments for

financial assets to the Annual Financial Statements.

4. Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme

Final Actual Variance

Programme Appropriation Expenditure R'OOO

R'OOO R'OOO R'OOO

Programme 1: Administration 372 124 341 761 30 363

Programme 2: Agriculture 1 918 360 1 855 535 62 825

Programme 3: Rural

Development 1 995 1 891 104

Variance as a

% of Final

Aooropriation

R'OOO

8.16

3.27

5.21

This under-spending for Programme 1: Administration is mainly due to the following:

R1 .646 million under Compensation of employees as a result of the moratorium on

filling posts until the matching and placing of existing staff into the new organisational

structure is finalised.

R 12.168 million under Goods and services, in respect of the migration from Novell to

Microsoft not being finalised as anticipated.

R955 OOO under Transfers and subsidies relates to the fact that the payment to Public

Service SETA did not materialise as this payment is now managed at a national level.

R15.594 million relates to Machinery and equipment, mainly as a result of vehicles

ordered but not delivered of R5.023 million, as well as the delay in the migration from

Novell to Microsoft resulting in the server not being acquired as planned, amounting to

R10.571 million."

This under-spending for Programme 2: Agriculture can largely be attributed to the following:

R1 .877 million under Compensation of employees as a result of the moratorium on filling

posts until the matching and placing of existing staff into the new organisational structure

is finalised.



VOTE3



R10.276 million under Goods and services in respect of animal feed and medicines

ordered but not delivered and paid for by 31 March 2016. This includes additional fodder

for drought relief to small scale and subsistence farmers.

R19.873 million under Transfers and subsidies is mainly against Transfers and subsidies

to: Public corporations and private enterprises in respect of Communal Estates which is

the consolidation of adjacent parcels of land into viable farming units and the

establishment of commercial farming operations by the land owners in partnership with

government and possibly investors or neighbouring commercial farmers due to limited

farming activities, as a result of the drought, as well as slow progress on the Nyonende

Hatchery project. The department only transfers funds based on progress made and

previous tranches being fully utilised and accounted for.

R30.799 million under Payment for capital assets, mainly relates to Buildings and other

fixed structures as a result of slower than anticipated implementation of drought relief

interventions such as boreholes, stock watering dams and dip tanks due to high demand

and short supply for service providers due to drought amounting to R27.733 million. The

funds were fully committed by year-end and service providers are on site. Also as a

result of vehicles ordered but not delivered of R3.066 million.

This under-expenditure for Programme 3: Rural Development is largely in respect of

Compensation of employees and related costs in respect of vacant posts

4.2 Per economic classification


Current payments


Goods and services




Departmental agencies and

accounts

Public corporations and private

enterprises


Households




Heritage assets

Biological assets

Intangible assets


Final Actual


R'OOO R'OOO

914 999 911 392

849 268 826 804

227 227

1 313 1 313

102 269 101 306

131 956 112 091

13 770 13 770

18 488 18 488

200 421 172 688

58 799 40 139 - -

350 350 - -

619 619


Variance Variance

as a% of

Final

Appropriat

ion

R'OOO R'OOO

3 607 0.39

22 464 2.65 - -

- -

963 0.94

19 865 15.05

- -

- -

27 733 13.84

18 660 31.74 - -

- -

- -

- -


VOTE3



Compensation of employees was marginally under-spent by R3.604 million of the

Final Appropriation, due to the moratorium on filling posts until the migration to the

new organisational structure has been completed.

Goods and services reflects under-expenditure of R22.479 million of the Final

Appropriation, mainly as a result of the following:

• Migration from Novell to Microsoft not being finalised.

• Farming supplies for livestock fodder not delivered so not paid for by year

end.

• Animal medicine that was ordered but not delivered or paid for by year-end.

Transfers and subsidies reflects under-expenditure of R20.828 million of the Final


Departmental agencies and accounts reflects under-spending of R963 OOO of the

Final Appropriation. This relates to the fact that the payment to Public Service SETA

did not materialise as this payment is now managed at a national level.

Public corporations and private enterprises was under-spent by R19.865 million of

Final Appropriation, due to limited farming activities by the Communal Estates as a

result of the drought, as well as slow progress of the Nyonende Hatchery project. The

department only transfers funds based on progress made and previous tranches

being fully utilised and accounted for.

Payments for capital assets reflects under-expenditure of R46.397 million of the Final


• Buildings and other fixed structures reflects under-spending of R27.733

million of the Final Appropriation. This under-spending relates to the dip

tanks, boreholes and stock watering dams, which progressed slower than

anticipated, as already mentioned above.

• Machinery and equipment shows under-spending of R18.660 million relating

to the IT server and vehicles ordered but not delivered.

4.3 Per conditional grant Final Actual Variance Variance as a

Appropriation Expenditure % of Final

Aooropriation

R'OOO R'OOO R'OOO R'OOO

Comp Agricultural Support Programme 226 161 226 161 - -

llima/ Letsema Project 69 401 69 401 - -

Land Care 10 666 10 666 - -

EPWP Incentive qrant for Provinces 2 296 2 296 - -

Conditional Grants 100% spent



VOTE3 STATEMENT OF FINANCIAL PERFORMANCE


REVENUE

Annual appropriation Departmental revenue Aid assistance

TOTAL REVENUE

EXPENDITURE

Current expenditure

Compensation of employees Goods and services Interest and rent on land Aid assistance Total current expenditure



Total transfers and subsidies

Expenditure for capital assets

Tangible assets Intangible assets Total expenditure for capital assets


TOTAL EXPENDITURE

SURPLUS/(DEFICIT) FOR THE YEAR

Reconciliation of Net Surplus/(Deficit) for the year

Voted funds Annual appropriation

Departmental revenue and NRF Receipts Aid assistance SURPLUS/(DEFICIT) FOR THE YEAR

Note

1

2

3

4

5

6

3

8

9

9

7

13

3


2015/16

R'OOO

2 292 479 23 712

2 482

2 318 673

911 393 826 800

227 2 768

1 741 188

246 9691

246 969

213 3051

213 305

619 2 202 081

116 592

93 292 93 292 I

23 712 (412)

116 592

2014/15

R'OOO

2 131 046 32 267

2 163 313

851 046 714 125

171 1 410

1 566 752

219 1161

219 116

215 178

3 408 2 004 454

158 859

128 002 128 002 I

32 267 (1 410)

158 859


VOTE3

ASSETS

Current assets

Cash and cash equivalents Receivables

Non-current assets

Receivables

TOT AL ASSETS

LIABILITIES

Current liabilities

STATEMENT OF FINANCIAL POSITION


Note

10

11

11

Voted funds to be surrendered to the Revenue Fund 12

Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 13

Payables 14

Aid assistance repayable

TOTAL LIABILITIES

NET ASSETS

Represented by:

Recoverable revenue

TOTAL


2015/16

R'OOO

132 454

127 460 14 994

2 101

2 101 I

134 555

133 509

132 192

1 092 225

133 509

1 046

1 046 I

1 046

I

2014/15

R'OOO

90 907

71 254119 653

2 075

2 075 I

92 982

92 468

88 002

3 492 562 412

92 468

514

514 I

514


VOTE3

Recoverable revenue

Opening balance

Transfers:

STATEMENT OF CHANGES IN NET ASSETS


Note 2015/16

R'OOO

514

532

Debts recovered (included in departmental

receipts) (696)

1 228 Debts raised

Closing balance 1 046

TOTAL 1 046


2014/15

R'OOO

1 289

(775)

(1 652)

877

514

514


VOTE3

CASH FLOW STATEMENT


CASH FLOWS FROM OPERATING ACTIVITIES

Receipts

Annual appropriated funds received

Departmental revenue received

Interest received

Aid assistance received

Net (increase )/decrease in working capital

Surrendered to Revenue Fund

Current payments

Interest paid


Transfers and subsidies paid

Net cash flow available from operating activities

CASH FLOWS FROM INVESTING ACTIVITIES


Proceeds from sale of capital assets

Net cash flows from investing activities

CASH FLOWS FROM FINANCING ACTIVITIES

lncrease/(decrease) in net assets

Net cash flows from financing activities

Net increase/(decrease) in cash and cash

equivalents

Cash and cash equivalents at beginning of period

Cash and cash equivalents at end of period

Note

1.1

2

2.3

3

6

15

9

2.4

10


2015/16 R'OOO

2 354 250 2 331 379

20 362

27

2 482

14 296

(114 114)

(1 741 031)

(157)

(619)

(246 969)

265 656

(213 305)

3 323

(209 982)

532

532

56 206

71 254

127 460

2014/15 R'OOO

2 112 719 2 091 046

21 304

369

(17 902)

(68 573)

(1 566 644)

(108)

(3 408)

(219 116)

236 968

(215 178)

10 594

(204 584)

(775)

(775)

31 609

39 645

71 254


VOTE3

ACCOUNTING POLICIES


Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have been applied consistently in all material aspects, unless otherwise indicated.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments and estimates in preparing the annual financial statements. These are based on the best information available at the time of preparation.

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 (PFMA), Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury

Regulations issued in terms of the PFMA and the annual Division of Revenue Act.

1 Basis of preparation

The financial statements have been prepared in accordance with the Modified Cash

Standard.

2 Going concern

The financial statements have been prepared on a going concern basis.

3 Presentation currency

Amounts have been presented in the currency of the South African Rand (R) which is also

the functional currency of the department.

4 Rounding

Unless otherwise stated financial figures have been rounded to the nearest one thousand

Rand (R'OOO).

5 Foreign currency translation

Cash flows arising from foreign currency transactions are translated into South African

Rands using the exchange rates prevailing at the date of payment I receipt.

6 Comparative information

6.1 Prior period comparative information

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.

6.2 Current year comparison with budget

A comparison between the approved, final budget and actual amounts for each programme

and economic classification is included in the appropriation statement.


7

7.1

7.2

7.3

8

8.1

8.1.1

8.1.2

8.2


VOTE3

ACCOUNTING POLICIES


Revenue

Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against

the revenue fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of financial performance on the date the

appropriation becomes effective. Adjustments made in terms of the adjustments budget

process are recognised in the statement of financial performance on the date the

adjustments become effective.

The net amount of any appropriated funds due to / from the relevant revenue fund at the

reporting date is recognised as a payable/ receivable in the statement of financial position.

Departmental revenue

Departmental revenue is recognised in the statement of financial performance when received

and is subsequently paid into the relevant revenue fund, unless stated otherwise.

Any amount owing to the relevant revenue fund at the reporting date is recognised as a

payable in the statement of financial position.

Accrued departmental revenue

Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the

notes to the financial statements when:

• it is probable that the economic benefits or service potential associated with thetransaction will flow to the department; and

• the amount of revenue can be measured reliably .

The accrued revenue is measured at the fair value of the consideration receivable.

Accrued tax revenue (and related interest and / penalties) is measured at amounts

receivable from collecting agents.

Expenditure


Salaries and wages

Salaries and wages are recognised in the statement of financial performance on the date of

payment.

Social contributions

Social contributions made by the department in respect of current employees are recognised

in the statement of financial performance on the date of payment.

Social contributions made by the department in respect of ex-employees are classified as

transfers to households in the statement of financial performance on the date of payment.

Other expenditure

Other expenditure (such as goods and services, transfers and subsidies and payments for

capital assets) is recognised in the statement of financial performance on the date of

payment. The expense is classified as a capital expense if the total consideration paid is

more than the capitalisation threshold.


8.3

8.4

8.4.1

8.4.2

9

9.1

9.2

10


VOTE3

ACCOUNTING POLICIES


Accrued expenditure payable

Accrued expenditure payable is recorded in the notes to the financial statements when the

goods are received or, in the case of services, when they are rendered to the department.

Accrued expenditure payable is measured at cost.

Leases

Operating leases

Operating lease payments made during the reporting period are recognised as current

expenditure in the statement of financial performance on the date of payment.

The operating lease commitments are recorded in the notes to the financial statements.

Finance leases

Finance lease payments made during the reporting period are recognised as capital

expenditure in the statement of financial performance on the date of payment.

The finance lease commitments are recorded in the notes to the financial statements and are

not apportioned between the capital and interest portions.

Finance lease assets acquired at the end of the lease term are recorded and measured at

the lower of:

• cost, being the fair value of the asset; or

• the sum of the minimum lease payments made, including any payments made to acquire

ownership at the end of the lease term, excluding interest.

Aid Assistance

Aid assistance received

Aid assistance received in cash is recognised in the statement of financial performance when

received. In-kind aid assistance is recorded in the notes to the financial statements on the

date of receipt and is measured at fair value.

Aid assistance not spent for the intended purpose and any unutilised funds from aid

assistance that are required to be refunded to the donor are recognised as a payable in the

statement of financial position.

Aid assistance paid

Aid assistance paid is recognised in the statement of financial performance on the date of

payment. Aid assistance payments made prior to the receipt of funds are recognised as a

receivable in the statement of financial position.

Cash and cash equivalents

Cash and cash equivalents are stated at cost in the statement of financial position.

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.


11

12

13

14

15

16

16.1

16.2


VOTE3

ACCOUNTING POLICIES


Prepayments and advances

Prepayments and advances are recognised in the statement of financial position when the

department receives or disburses the cash.

Prepayments and advances are initially and subsequently measured at cost.

Prepayments are expensed when expenditure has been incurred.

Loans and receivables

Loans and receivables are recognised in the statement of financial position at cost plus

accrued interest, where interest is charged, less amounts already settled or written-off.

Investments

Investments are recognised in the statement of financial position at cost.

Impairment of financial assets

Where there is an indication of impairment of a financial asset, an estimation of the reduction

in the recorded carrying value, to reflect the best estimate of the amount of the future

economic benefits expected to be received from that asset, is recorded in the notes to the

financial statements.

Payables

Loans and payables are recognised in the statement of financial position at cost.

Capital Assets

Immovable capital asset

Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of immovable capital assets cannot be determined accurately, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R 1 .

Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end

of the capital project unless the immovable asset is recorded by another department in which

case the completed project costs are transferred to that department.

Movable capital assets

Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable capital assets acquired through a non-exchange transaction is measured at fair value as at the date of acquisition.

Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R 1.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R 1 .


16.3

17

17.1

17.2

17.3


VOTE3

ACCOUNTING POLICIES


Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.


of the capital project unless the movable asset is recorded by another departmenUentity in

which case the completed project costs are transferred to that department.

Intangible assets

Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.

Internally generated intangible assets are recorded in the notes to the financial statements when the department commences the development phase of the project.

Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R 1 .

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R 1.

Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.


of the capital project unless the intangible asset is recorded by another department/entity in

which case the completed project costs are transferred to that department.

Provisions and Contingents

Provisions

Provisions are recorded in the notes to the financial statements 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 or service potential will

be required to settle the obligation and a reliable estimate of the obligation can be made. The

provision is measured as the best estimate of the funds required to settle the present

obligation at the reporting date.

Contingent liabilities

Contingent liabilities are recorded in the notes to the financial statements when there is a

possible obligation that arises from past events, and whose existence will be confirmed only

by the occurrence or non-occurrence of one or more uncertain future events not within the

control of the department or when there is a present obligation that is not recognised

because it is not probable that an outflow of resources will be required to settle the obligation

or the amount of the obligation cannot be measured reliably

Contingent assets

Contingent assets are recorded in the notes to the financial statements when a possible

asset arises from past events, and whose existence will be confirmed by the occurrence or

non-occurrence of one or more uncertain future events not within the control of the

department


17.4

18

19

20

21


VOTE3

ACCOUNTING POLICIES


Commitments

Commitments are recorded at cost in the notes to the financial statements when there is a

contractual arrangement or an approval by management in a manner that raises a valid

expectation that the department will discharge its responsibilities thereby incurring future

expenditure that will result in the outflow of cash

Unauthorised expenditure

Unauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:

• approved by Parliament or the Provincial Legislature with funding and the related fundsare received; or

• approved by Parliament or the Provincial Legislature without funding and is written offagainst the appropriation in the statement of financial performance; or

• transferred to receivables for recovery.

Unauthorised expenditure is measured at the amount of the confirmed unauthorised

expenditure.

Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred.

Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved or transferred to receivables for recovery.

Fruitless and wasteful expenditure receivables are measured at the amount that is expected

to be recoverable and are de-recognised when settled or subsequently written-off as

irrecoverable.

Irregular expenditure

Irregular expenditure is recorded in the notes to the financial statements when confirmed.

The amount recorded is equal to the value of the irregular expenditure incurred unless it is

impracticable to determine, in which case reasons therefor are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant

authority, transferred to receivables for recovery or not condoned and is not recoverable.

Irregular expenditure receivables are measured at the amount that is expected to be

recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

Changes in accounting policies, accounting estimates and errors

Changes in accounting policies that are effected by management have been applied

retrospectively in accordance with MCS requirements, except to the extent that it is

impracticable to determine the period-specific effects or the cumulative effect of the change

in policy. In such instances the department shall restate the opening balances of assets,

liabilities and net assets for the earliest period for which retrospective restatement is

practicable.

Changes in accounting estimates are applied prospectively in accordance with MCS

requirements.

Correction of errors is aoolied retrospectively in the period in which the error has occurred in


22

23

24

25

26

27


VOTE3

ACCOUNTING POLICIES


accordance with MCS requirements, except to the extent that it is impracticable to determine

the period-specific effects or the cumulative effect of the error. In such cases the department

shall restate the opening balances of assets, liabilities and net assets for the earliest period

for which retrospective restatement is practicable.

Events after the reporting date

Events after the reporting date that are classified as adjusting events have been accounted

for in the financial statements. The events after the reporting date that are classified as non

adjusting events after the reporting date have been disclosed in the notes to the financial

statements.

Departures from the MCS requirements

Management has concluded that the financial statements present fairly the department's

primary and secondary information; that the department has complied with the Standard.

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 National/Provincial Revenue

Fund when the underlying asset is disposed and the related funds are received

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.

Related party transactions

A related party transaction is a transfer of resources, services or obligations between the

reporting entity and a related party. Related party transactions are recorded in the notes to

the financial statements when the transaction is not at arm's length.

Inventories (Effective from 1 April 2017)

At the date of acquisition, inventories are recorded at cost price in the notes to the financial

statements

Where inventories are acquired as part of a non-exchange transaction, the cost of inventory

is its fair value at the date of acquisition.

Inventories are subsequently measured at the lower of cost and net realisable value or the

lower of cost and replacement value.


1.

DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT VOTE3

NOTES TO THE ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2016

Annual Appropriation

1.1 Annual Appropriation

2015/16 2014/15

Final Actual Funds not Final Appropriation

Appropriation fund requested Appropriation received

received I not

received

Programmes R'OOO R'OOO R'OOO R'OOO R'OOO Administration 372 124 372 124 334 211 334 211 Agriculture 1 918 360 1 957 260 (38 900) 1 796 835 1 756 835 Rural Development 1 995 1 995 Total 2 292 �z9 2 331 319 (38 900) 2 131 0�6 2 091 0�6

The excess of R38.9 million is equitable share received from Provincial Treasury in error. This amount relates to the suspension made in the second adjustments estimate in 2014/15 and re-allocated in 2015/16 during the Adjustments Estimate. The amount was transferred twice by Provincial Treasury.

1.2 Conditional grants

2.

Total grants received Provincial grants included in total grants received

All conditional grants were received

Departmental revenue

Tax revenue Sales of goods and services other than capital assets Interest, dividends and rent on land Sales of capital assets Transactions in financial assets and liabilities

Total revenue collected Less: Own revenue included in appropriation Departmental revenue collected

Note

30

Note

2.1

2.3

2.4

2.5

13

2015/16

R'OOO 308 524

2015/16

R'OOO

18 720 27

3 323 1 642

23 712

23 712

2014/15

R'OOO 319 760

2014/15

R'OOO

19 520 369

10 594 1 784

32 267

32 267

The significant reduction in departmental revenue is mainly in respect of Sale of capital assets. The decrease under this category is due to the fact that the 2014/15 amount of R10.594 million comprises the proceeds from the auction of redundant assets for 2013/14 and 2014/15 financial years due to the 2013/14 proceeds only being received in 2014/15.


2.1


VOTE3

NOTES TO THE ANNUAL FINANCIAL STATEMENTS


Sales of goods and services other than capital assets

Note 2015/16

2 R'OOO

Sales of goods and services produced by the department 18 717

Sales by market establishment 3 312 Administrative fees 26 Other sales 15 379

Sales of scrap, waste and other used current goods 3 Total 18 720

2014/15

R'OOO

19 518

3 325 5

16 188

2 19 520

The reduction in 2015/16 is attributable to fewer soil samples submitted for analysis by farmers due to the severe drou ht conditions.

2.2 Interest, dividends and rent on land Note

2

2015/16

R'OOO

27

2014/15

R'OOO

369 Interest

Total

2.3 Sale of capital assets

Tangible assets


Biological assets

Total

Note

2

27.2127.2

27 369

2015/16 2014/15

R'OOO R'OOO

3 323 10 594

31931130

10 3661228

3 323 10 594

The 2014/15 amount of R10.366 million includes the proceeds from the auction held at end of 2013/14 but only received by the department in 2014/15, as well as proceeds of auction held in 2014/15.

2.4 Transactions in financial assets and liabilities

Receivables Other Receipts including Recoverable Revenue Total

179

Note

2


2015/16

R'OOO 592

1 050 1 642

2014/15

R'OOO 737

1 047 1 784

3.


VOTE3



Aid assistance

Note 2015/16

R'OOO

Opening Balance 412 Prior period error As restated 412 Transferred from statement of financial performance (412) Closing Balance

2014/15

R'OOO

1 822

1 822

(1 410) 412

The department received funding from the World Health Organisation for funding of the rabies elimination programme in the province.

3.1 Analysis of balance by source

Aid assistance from RDP Closing balance

3.2 Analysis of balance

Aid assistance repayable Closing balance

4. Compensation of employees

4.1 Salaries and Wages

Basic salary Performance award Service Based Compensative/circumstantial Periodic payments Other non-pensionable allowances Total

Note

3

Note

2015/16

R'OOO

2015/16

R'OOO

2015/16

R'OOO

635 094 9 332 1 571 9 472

795 125 036 781 300

14.1 The increase in expenditure relates to the annual cost of living wage adjustment.


2014/15

R'OOO

412 412

2014/15

R'OOO

412 412

2014/15

R'OOO

597 091 8 727 1 808

11 435 4 961

110 282 734 304


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4.2 Social contributions

Note 2015/16 2014/15

R'OOO R'OOO

Employer contributions

Pension 80 917 75 670

Medical 48 975 40 866

UIF

Bargaining council 201 206

Total 130 393 116 742

Total compensation of employees 911 393 851 046

Average number of employees 2 902 2 901

I 4.2 The increase to medical aid is in line with the wage agreement

5. Goods and services Note 2015/16 2014/15

R'OOO R'OOO

Administrative fees 2 070 77

Advertising 5 846 9 440

Minor assets 5.1 5 804 4 350

Bursaries (employees) 1 451 793

Catering 1 336 2 990

Communication 34 984 40 538

Computer services 5.2 58 362 40 996

Consultants: Business & adv. services 2 042 2 724

Infrastructure and planning services 75 474 74 728

Laboratory services 53 54

Legal services 1 668 1 987

Contractors 44 672 72 742

Agency & supporVoutsourced services 14 315 1 076

Audit cost- external 5.3 5 245 4 389

Fleet services 34 716 35 507

Inventory 5.4 296 467 176 157

Consumables 5.5 58 860 56 595

Operating leases 29 283 25 647

Property payments 5.6 64 253 61 045

Rental and hiring 60 355

Transport provided as part of dept. activities 281 282

Travel and subsistence 5.7 71 771 78 053

Venues and facilities 873 6 686

Training and development 7 162 8 040

Other operating expenditure 5.8 9 752 8 874

Total 826 800 714 125


5. 1

5.2


VOTE3



The increase is mainly under the Inventory item and relates to the farming supplies such as

livestock fodder and water harvesting equipment acquired to combat the effect of the severe

drought.

Minor assets Note 2015/16 2014/15

5 R'OOO R'OOO

Tangible assets 5 840 4 350

Biological assets 2 043 569

Machinery and equipment 3 761 3 781

Total 5 804 4 350

The biological assets are acquired on a needs basis and hence the fluctuations from year to

year.

Computer services Note 2015/16 2014/15

5 R'OOO R'OOO

SITA computer services 47 930 39 951

External computer service providers 10 432 1 045

Total 58 362 40 996

External computer services relate to provision of IT support for Extension Recovery

Services

5.3 Audit cost - External Note 2015/16

R'OOO

2014/15

R'OOO

Regularity audits

Total

5 5 245

5245

I The audit costs are in line with the audit fees agreed to with the Auditor-General


4 389

4389


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5.4 Inventory

Clothing material and accessories

Farming supplies

Food and food supplies

Fuel, oil and gas

Learning, teaching and support material

Materials and supplies

Medical supplies

Medicine

Total

Note

5

2015/16

R'OOO

5 790

251 255

2

2 733

1 792

4 264

595

30 036

296 467

2014/15

R'OOO

4 863

139 717

6 076

1 619

5 501

523

17 858

176 157

Department's drought relief intervention is evident against the item Farming supplies in

2015/16 and relates to animal feed and fodder acquired.

5.5 Consumables

Consumable supplies

Uniform and clothing

Household supplies

Building material and supplies

IT consumables

Other consumables

Stationery, printing and office supplies

Total

5.6 Property payments

Municipal services

Property maintenance and repairs

Other

Total

5.7 Travel and subsistence

Local

Foreign

Total

Note

5

Note

5

Note

5

2015/16

R'OOO 50 828

14

3 150

38 027

9 637

8 032

58 860

2015/16

R'OOO

26 774

36 839

640

64253

2015/16

R'OOO

70 863

908

71 771

2014/15

R'OOO

48 475

16

2 388

38 994

94

6 983

8 120

56 595

2014/15

R'OOO

23 490

36 818

737

61 045

2014/15

R'OOO

77 638

415

78 053

Decrease in 2015/16 can be ascribed to the continued implementation of cost cutting

measures.



VOTE3



5.8 Other operating expenditure Note

5

2015/16

R'OOO

2014/15

R'OOO

6.

7.

7.1

7. 2

Professional bodies,

subscription fees

Resettlement costs

Other

Total


Interest paid

Rent on land

Total

membership


Other material losses written off

Debts written off

Total

Other material losses written off

Nature of losses

Salary related deductions

&

Irrecoverable Fruitless and Wasteful Expenditure

Total

Debts written off

Nature of debts written off Irrecoverable staff debts written off

Total

Note

Note

7

Note

7

Note

7

9 752

9 75 2

2015/16

R'OOO

157

70

227

2015/16

R'OOO

208

411

619

2015/16

R'OOO

208

208

2015/16

R'OOO

411

411

640

649

7 585

8 874

2014/15

R'OOO

108

63

171

2014/15

R'OOO

933

2 475

3 4 08

2014/15

R'OOO

933

933

2014/15

R'OOO

2 475

2475

In terms of Section 6.3.5 of the Debt Management Policy; possible write-offs should firstly be

identified. All reason-able steps should have been taken to recover the debt. A submission

should be prepared with recommendation and supporting documentation to the accounting

officer who will approve that the debt be removed from BAS. Funds to write-off the debt

against must be identified.



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8. Transfers and subsidies 2015116

R'OOO

Note

Provinces and municipalities 30, 31 1 313

Departmental agencies and accounts Annex 18 101 306

Public corporations and private enterprises Annex 10 112 091

Non-profit institutions Annex 1F 13 770

Households Annex 1G 18 488

Total 246 968

9. Expenditure for capital assets Note 2015116

R'OOO

Tangible assets 213 305

Buildings and other fixed structures 9.1 172 689

Machinery and equipment 9.1 40 266

Biological assets 9.1

350

Intangible assets

Software

Total 213 305

9.1 Analysis of funds utilised to acquire capital assets - 2015116

Voted funds Aid

assistance

R'OOO R'OOO

Tangible assets 213 179 126

Buildings and other fixed

Dstructures 172 689



Total 213 179 126

2014115

R'OOO

1 237

108 351

91 962

5 300

12 267

219 117

2014115

R'OOO 215 139

182 814

32 181

144

39

39 I

215 178

Total

R'OOO

213 305

172 689

40 266

350

213 305

The slight decrease in 2015/16 under buildings and other fixed structures is as a result of the planned number of

stock watering dams and new dip tanks not being completed and paid for by 31 March 2016.



VOTE3



9.2 Analysis of funds utilised to acquire capital assets - 2014/15

Voted funds Aid

assistance

R'OOO R'OOO

Tangible assets 215 139


Machinery and equipment 32 181 Biological assets 144

Intangible assets 39

Software 39 I Total 215 178

10. Cash and cash equivalents Note 2015/16

R'OOO

Consolidated Paymaster General Account 127 700 Cash receipts 1 Disbursements (277) Cash on hand 36 Total 127 460

11. Receivables

Note Current Non- Total Current Non-

Current Current


Claims recoverable 11.1 4 043 118 4 161 19 072 Recoverable 11.2 203 expenditure Staff debt 11.3 445 1 116 1 559 325 1 293 Other debtors 11.4 506 867 1 375 53 782 Total 4 994 2 101 7 095 19 653 2 075

Note 2015/16

11.1 Claims recoverable

11 R'OOO

National departments 1 619 Provincial departments 2 542 Total 4 161


Total

R'OOO 215 139

182 814

32 181

144

39

39 I 215 178

2014/15

R'OOO

71 568 2

(352) 36

71 254

Total

R'OOO

19 072 203

1 618 835

21 728

2014/15

R'OOO

190 18 882 19 072


VOTE3



11.2 Recoverable expenditure (disallowance accounts)

Note 2015/16

11 R'OOO

Salary Tax Debt

Total

11.3 Staff debt Note 2015/16

11 R'OOO

Staff overpayments and Salary Tax Debts 1 284

T&S Debts 267

Bursary Debts 8

Total 1 559

11.4 Other debtors

Note 2015/16

11 R'OOO

Salary Income Tax 3 Salary Insurance Deductions

Salary Pension Fund 6

Supplier Debts 1 366

Total 1 375

11.5 Impairment of receivables

Note 2015/16

11 R'OOO

Estimate of impairment of receivables 302

Total 302

12. Voted funds to be surrendered to the Revenue Fund

Note 2015/16

R'OOO

Opening balance 88 002

As restated 88 002

Transfer from statement of financial performance

(as restated) 93 292 Voted funds not requested/not received 1.1 38 900

Paid during the year {88 002}

Closing balance 132 192

2014/15

R'OOO

203

203

2014/15

R'OOO

1 321

272

25

1 618

2014/15

R'OOO

5

33

797

835

2014/15

R'OOO

646

646

2014/15

R'OOO

39 647

39 647

128 002

(40 OOO)

{39 647}

88 002

The amount to be surrendered has increased due to the department receiving R38. 9

million more than scheduled due to Provincial Treasury transferring the amount

suspended in 2014/15 twice in 2015/16 as well as department not receiving all the

conditional grant funds aooropriated in 2014/15.



VOTE3



13. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

Opening balance

As restated

Transfer from Statement of Financial

Performance (as restated)

Paid during the year

Closing balance

14. Payables - current

Clearing accounts

Other payables

Total

14.1 Clearing accounts

Salary ACB Recalls

Disallowance Dishonoured Cheques

Salary Reversal Control

Disallowance Miscellaneous

Revenue payable to EDTEA

Total

14.2 Other payables

Salary Motor Finance

Salary Income Tax

Salary Medical Aid

Total

Note 2015/16 2014/15

Note

14.1

14.2

Note

14

Note

14

R'OOO

3 492

3 492

23 712

(26 112)

1 092

2015/16

R'OOO

225

225

2015/16

R'OOO

180

12

1

32

225

2015/16

R'OOO

R'OOO

151

151

32 267

(28 926)

3 492

2014/15

R'OOO

121

441

562

2014/15

R'OOO

62

12

19

28

121

2014/15

R'OOO

74

258

109

441



VOTE3



15. Net cash flow available from operating activities

16.

17.

17.1

Net surplus/(deficit) as per Statement of

Financial Performance

Add back non cash/cash movements not

deemed operating activities

(lncrease)/decrease in receivables - current

(Increase )/decrease in prepayments and advances

lncrease/(decrease) in payables - current

Proceeds from sale of capital assets

Expenditure on capital assets

Surrenders to Revenue Fund

Voted funds not requested/not received

Net cash flow generated by operating

activities

Note 2015/16

R'OOO

116 592

149 064

14 633

(337)

(3 323)

213 305

(114 114) 38 900

265 656

Reconciliation of cash and cash equivalents for cash flow purposes

Note 2015/16

R'OOO

Consolidated Paymaster General account 127 700

Cash receipts 1

Disbursements (277)

Cash on hand 36

Total 127 460

Contingent liabilities and contingent assets

Contingent liabilities

Note 2015/16

R'OOO

Liable to Nature

Housing loan guarantees Employees Annex 3A 34

Claims against the department Annex 38 45 246

Intergovernmental payables

(unconfirmed balances) Annex 5 441

Total 45 721

2014/15

R'OOO

158 859

78 109

(15 541)

37

(2 398)

(10 594)

215 178

(68 573) (40 OOO)

236 968

2014/15

R'OOO

71 568 2

(352)

36

71 254

2014/15

R'OOO

349

13 516

1 103

14 968

Housing loan guarantees are being phased out and no new guarantees are being issued.


18.

19.

19.1

19.2


VOTE3



Commitments Note 2015/16

R'OOO

Current expenditure

Approved and contracted 181 798

181 798

Capital expenditure

Approved and contracted 99 311

99 311

Total Commitments 281 109

2014/15

R'OOO

37 583

37 583

160 638

160 638

198 221

Included in Current commitments Approved and contracted are commitments longer than

one year.

Accruals and payables not recognised

Accruals 2015/16 2014/15

R'OOO R'OOO

Listed by economic classification

30 Days 30+ Days Total Total

Goods and services 28 765 3 836 32 601 28 311

Capital assets 496 264 760 189

Total 29 261 4 100 33 361 28 500

Note 2015/16 2014/15

R'OOO R'OOO

Listed by programme level

Administration 8 277 8 081

Agricultural Development Service 25 016 20 419

Rural Development 68

Total 33 361 28 500

Payables not recognised

Listed by economic classification

2015/16 2014/15

R'OOO R'OOO

30 Days 30+ Days Total Total



Capital assets 61 61

Total 293 293

Listed by programme level

Agriculture 293

Total 293


20.


VOTE3



Included in the above totals are the Note 2015/16

following: R'OOO

Confirmed balances with departments 34

Confirmed balances with other

government entities

Total 34

Employee benefits

Note 2015/16

R'OOO

Leave entitlement 65 207

Service bonus (Thirteenth cheque) 26 517

Performance awards 14 759

Capped leave commitments 135 859

Other

Total 242 342

I Included in leave entitlement is negative leave of R225k

21. Lease commitments

21.1 Operating leases expenditure

2015/16

Not later than 1 year

Later than 1 year and not

later than 5 years

Total lease commitments

2014/15



later than 5 years


Specialise

d military

equipment

Specialise

d military

equipment

Land

Land

Buildings

and other Machinery

fixed and

structures equipment

13 272 2 734

28 824 2 027

42 096 4 761

Buildings Machinery

and other and

fixed equipment

structures

11 471 2 381

28 192 1 384

39 663 3 765

2014/15

R'OOO

39

39

2014/15

R'OOO

62 508

24 483

14 474

139 863

241 328

Total

16 006

30 851

46 857

Total

13 852

29 576

43 428

Buildings and other fixed structures relates to Office accommodation leased through

Public Works.



VOTE3



21.2 Finance leases expenditure**

Specialise Land

2015/16 d military

equipment



later than 5 years


Specialise

2014/15 d military

equipment



later than 5 years


Land

Buildings

and other

fixed

structures

Buildings

and other

fixed

structures

Machinery

and

equipment

3 285

2 004

5289

Machinery

and

equipment

2 088

343

2 431

Total

3 285

2 004

5289

Total

2 088

343

2 431

Machinery and equipment relates to Cell phone contracts entered into for 2 year periods

22. Accrued departmental revenue

Sales of goods and services other than capital

assets

Total

22.1 Analysis of accrued departmental revenue

Opening balance

Less: amounts received

Add: amounts recognised

Less: amounts written-off/reversed as

irrecoverable

Closing balance

Note

Note


2015/16

R'OOO

8 180

8180

2015/16

R'OOO

5 784

10 037

12 632

199

8180

2014/15

R'OOO

5 784

5 784

2014/15

R'OOO

8 208

12 181

9 796

39

5 784


VOTE3



22.2 Accrued department revenue written off

Nature of losses Outstanding Laboratories fees Total

23. Irregular expenditure

23.1 Reconciliation of irregular expenditure

Opening balance Prior period error As restated Add: Irregular expenditure - relating to current year Less: Prior year amounts condoned Less: Amounts not condoned and recoverable Less:Amounts not condoned and not recoverable Closing balance

Analysis of awaiting condonation per age

classification

Current year Prior years Total

Note

Note

2015/16

R'OOO

199 199

2015/16

R'OOO

42 041

42041

34 167

9 856 66 352

34 167132 185 66 352

2014/15

R'OOO

39 39

2014/15

R'OOO

151 764 {2 024}

149 740

17 544 124 020

18 1 205

42 041

17 360 24 681 42 041

Provincial Treasury continued the exercise of reconciling the disclosures in the departments

register and investigating each case with the department. Provincial Treasury reviewed each

case individually by inspecting payment documents where information was insufficient to

make recommendations the case was referred back to the department for further

investigation. Cases where the recommendation was not to condone, were consolidated as a first charge against the departments.



VOTE3



23.2 Details of irregular expenditure - current year

Incident

Single source

Sole service provider

3 quotes not received, more than 3 requested

Month to month contracts

Non-compliance with delegations

Price variation

Total

Disciplinary steps

taken/criminal

proceedings

2015/16

2 278

23

755

28 878

2149

84 34167

The largest portion of irregular expenditure identified related to expired security services

contracts.

23.3 Details of irregular expenditure not recoverable (not condoned)

Incident Not condoned by (condoning

authority)

Competitive bidding

process not followed

Total

23.4 Details of irregular expenditures under investigation (not included

on main note)

Incident

Quotes not received(3 or more requested)

Quotes not requested

Month to Month Contracts

No Contracts

Single source

Use of prohibited suppliers

Competitive bidding process not followed

No order

Supplier restricted

No supporting docs

Splitting of orders

Delegations not adhered to

Fraudulent payment

Overpayment to supplier

Preferred supplier unable to deliver

Conflict of interest

Variations in terms of Reference

Total


2015/16

9 856

9 856

2015/16

R'OOO

646

2 527

18 655

502

99

372

4 232

15

1 654

447

643

969

500

296

183

13

432

32185


VOTE3



23.5 Prior period error Note

23

Nature of prior period error

Misclassification 2013/14 and prior

Relating to 2013/14Month to month lease contract 2014/15Total

24. Fruitless and wasteful expenditure

24.1 Reconciliation of fruitless and wasteful expenditure

Opening balancePrior period errorAs restatedFruitless and wasteful expenditure - relating toprior yearFruitless and wasteful expenditure - relating tocurrent yearLess: Amounts resolvedFruitless and wasteful expenditure awaiting

resolution

Note 2015/16 R'OOO

1 455

1 455

17

166208

1 430

24.2 Analysis of awaiting resolution per economic classification 2015/16

R'OOO

CurrentTotal

24.3 Analysis of Current year's fruitless and wasteful expenditure

1 4301 430

Incident Disciplinary steps taken/criminal

proceedings

Interest on Overdue AccountsLate Registration Fee No show: Accommodation FeesTotal

Investigations are currently being undertaken into each transaction and officialsrequested to provide explanations for each case


2014/15

R'OOO

�2 024� 2 024 I

(1 840)

2014/15

R'OOO 1 121

1 121

334

1 455

2014/15

R'OOO 1 4551 455

2015/16

R'OOO

15718

166


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24.4 Details of fruitless and wasteful expenditure under investigation (not in the main note)

Incident

Interest on overdue account Service fees no show2 Cancelation fees Late Registration fees Damages to hired vehicles No show: accommodation fees Late cancellation of fees Used building lease Late booking surcharge Total

25. Related Party Transactions

In kind goods and services provided/received

The following are related parties to the Department:

Mjindi Farming (Pty) Ltd

Agricultural Development Agency

Ntingwe Tea (Pty)Ltd

Note

2015/16 R'OOO

247

2 109

1 103

57 651

17 77

1 264

2015/16

R'OOO

Refer to Annexure 1 B, 1 D,2A and 28 for details of transactions with the above entities

26. Key management personnel

No. of

Individuals

2015/16 2014/15

R'OOO R'OOO

Political office bearers (provide detail below) 1 1 902 1 928

Officials:

Level 15 to 16 6 8 074 5 580

Level 14 (incl. CFO if at a lower level) 9 7 446 5 718

Total 17 422 13 226



VOTE3



27. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE

YEAR ENDED 31 MARCH 2016

Opening Value and Additions Disposals Closing

balance Adjustments Balance


MACHINERY AND

EQUIPMENT 508 023 46 847 9 203 545 667

Transport assets 140 320 19 492 8 990 150 822

Computer equipment 96 555 13 846 213 110 188

Furniture and office

equipment 18 399 1 439 19 838

Other machinery and

equipment 252 749 12 070 264 819

BIOLOGICAL

ASSETS 1 171 1 393 623 268 2 919

Biological assets 1 171 1 393 623 268 2 919 I

TOTAL MOVABLE

TANGIBLE CAPITAL

ASSETS 509194 1 393 47 470 9 471 5 48 586



VOTE3

27 .1 Additions



ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER

FOR THE YEAR ENDED 31 MARCH 2016

Cash* Non- {Capital Work Received

cash** in Progress current,

current costs not paid

and finance {Paid

lease current

payments) year,

received

prior

year)


MACHINERY AND

EQUIPMENT 36 801 10 046

Transport assets 17 896 1 596

Computer equipment 12 877 969

Furniture and office 614

equipment 825

Other machinery and 6 867

equipment 5 203

BIOLOGICAL ASSETS

350 273

Biological assets 350 273

TOTAL ADDITIONS TO

MOVABLE TANGIBLE

CAPITAL ASSETS 37151 10 319


Total

R'OOO

46 847

19 492

13 846

1 439

12 070

62 3

623 I

47 470


VOTE3

27 .2 Disposals



DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

MACHINERY AND

EQUIPMENT

Transport assets Computer equipment

BIOLOGICAL ASSETS

Biological assets

TOT AL DISPOSAL OF

MOVABLE TANGIBLE

CAPITAL ASSETS

27.3 Movement for 2014/15

Sold for Non Total cash Cash disposals

disposal

R'OOO R'OOO R'OOO

8 990 213 9 203 8 990 8 990

213 213

268 268 268 268

9 258 213 9 471

Cash

Received

Actual

R'OOO

3 193 3 19

� I

130 130 I

3 323

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER


Opening Prior Additions Disposals Closing

balance period Balance

error


MACHINERY AND

EQUIPMENT 502 072 (1 548) 42 387 34 888 508 023

Transport assets 145 670 335 25 789 31 474 140 320 Computer equipment 93 587 (495) 5 977 2 514 96 555 Furniture & office equipment 17 235 337 1 182 355 18 399 Other machinery & equipment 245 580 (1 725) 9 439 545 252 749 BIOLOGICAL ASSETS 1 476 305 1 171

Biological assets 1 476 305 1 171

TOT AL MOVABLE

TANGIBLE CAPITAL

ASSETS 503 548 (1 548) 42 387 35 193 509 194


I


VOTE3



27.3.1 Prior period error Note

Nature of prior period error

Machinery and Equipment adj

TOTAL

27.4 Minor assets

2014/15

R'OOO

(1 548)

(1 548)

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2016

Specialised Intangible Heritage Machinery Biological Total

military assets assets and assets assets equipment

R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO

Opening bal 56 24 989 6 706 31 751

Value adj. 121 1 682 1 803

Additions 1 265 49 1 314

Disposals 21 2 377 2 398

TOTAL

MINOR ASSETS 56 26 354 6 060 32 470


military assets assets and assets assets equipment


Number of R1 minor assets 25 888 25 888

Number of

minor assets at cost 18 758 3 617 22 375 TOTAL NUMBER OF MINOR 44 646 3 617 48 263 ASSETS



VOTE3



MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED

AS AT 31 MARCH 20 15


military assets assets and assets

assets equipment


Opening

balance 56 24 415 8 182 3 2 653

Additions 1 645 1 645

Disposals 1 071 1 47 6 2547

TOTAL

MINOR

ASSETS 56 2 49 89 6 706 31 75 1


military assets assets and assets

assets equipment


Number of

R1 minor

assets 26 338 26 338

Number of

minor assets

at cost 18 217 4 1 41 22 358

TOTAL NUMBER OF MINOR ASSETS 44555 4 1 41 48 696


DEPARTMENT OF A GR/CULTURE AND RURAL DEVELOPMENT

VOTE3



28. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR

ENDED 31 MARCH 2016

SOFTWARE

TOTAL INTANGIBLE CAPITAL ASSETS

28.1 Movement for 2014/15

Opening

balance

R'OOO

2 803

2 803

Value Additions Disposals

Adjustment

R'OOO R'OOO R'OOO

Closing

Balance

R'OOO

2 803

2 803

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR

ENDED 31 MARCH 2015

SOFTWARE

TOTAL INTANGIBLE

CAPITAL ASSETS

Opening

balance

R'OOO

2 764

2764

202

Prior

period

error

R'OOO

Additions Disposals


R'OOO

39

39

R'OOO

Closing

Balance

R'OOO

2 803

2 803


VOTE3

28.2 Additions



ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER


Cash

R'OOO

BUILDING & OTHER FIXED 172 688 STRUCTURES

Dwellings Non-residential buildings 172 688 Other fixed structures

TOTAL ADDITIONS TO

IMMOVABLE TANGIBLE

CAPITAL ASSETS 172 688

29. Prior period errors

29.1 Correction of prior period errors

Expenditure: Nature of prior year

Misclassification 2013/14 and prior year

Relating to 2014/15

Month to month lease contract 2014/15

Net effect

Non-cash

R'OOO

(Capital Work in

Progress

current

costs and

finance

lease

payments)

R'OOO

(172688)

(172688)

(172 688)

Received current,

not paid

(Paid

current

year,

received

prior

year)

R'OOO

Total

R'OOO

: I

R'OOO

(2 024)

184

(1 840)

Expenditure: R-2024 - Provincial Treasury recommendation was that this was incorrectly classified. R 184 - Month to month rental payment in 2014/15.

Assets: Nature of prior year error: Machinery and Equipment adjustment

Net effect

Note 2014/15

R'OOO

(1 548)

(1 548)

Assets: The Adjustment to the Movable Capital Assets as a result of errors identified on the Asset Register that were corrected during the 2015/16 financial year.


(DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT)

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ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS


30. STATEMENT OF CONDITIONAL GRANTS RECEIVED

GRANT ALLOCATION SPENT

Division of Roll Overs DORA Other Total Amount Amount spent Under /

Revenue Adjustments Adjustments Available received by by department (overspending)

Act/Provincial department NAME OF GRANT Grants

R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO R'OOO

Land Care 10 666 10 666 10 666 10 666 -

Comp Agricultural Support Programme 226 161 226 161 226 161 226 161 -

llima/ Letsema Project 69 402 (1) 69 401 69 401 69 401 -

EPWP Incentive grant for Provinces 2 296 2 296 2 296 2 296 -

- -

308 525 - - (1) 308 524 308 524 308 524 -

Department has received all funding through Provincial Treasury. All funds were deposited into the department's PMG account.

2014/15

% of available Division of Amount spent

funds spent Revenue Act by department

by dept

% R'OOO R'OOO

100% 10 854 10 854 100% 212 632 212 632 100% 69 093 92 093 100% 4 181 4 181

100% 296 760 319 760

(DEPARTMENT OF A GR/CULTURE AND RURAL DEVELOPMENT)

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31. STATEMENT OF CONDITIONAL GRANTS PAID TO MUNICIPALITIES

GRANT ALLOCATION

Division

of

Revenue Roll Total

Act Overs Adjustments Available NAME OF MUNICIPALITY

R'OOO R'OOO R'OOO PD: Vehicles Licences 1 260 - 40 1 300 Mun 8/Acc: Mun Rates & Taxes - - 13 13

1 260 - 53 1 313

The transfers made by the department include only payments for licencing of departmental KZN vehicles and payment for rates for Osca College

TRANSFER

Re-allocations by

National Treasury

or National

Actual Funds Department

Transfer Withheld

R'OOO R'OOO % 1 300 .

13 -

1 313 -

ANNEXURE1B


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STATEMENT OF TRANSFERS TO DEPARTMENTAL AGENCIES AND ACCOUNTS

TRANSFER ALLOCATION

Adjusted

Appropriation Roll Adjustments Total Actual

Overs Available Transfer DEPARTMENT/AGENCY/ACCOUNT


Agri Business Development Agency 99 500 - - 99 500

Com: Licences (Radio & TV) 9 - - 9

Skills Development Levv 2 800 - (40) 2 760

Total 102 309 - (40) 102 269

TRANSFER 2014/15

%of

Available funds

Transferred Appropriation Act

R'OOO % R'OOO

99 500 100% 106 410

1 11% 3

1 805 65% 1 938

101 306 99% 108 351

�

ANNEXURE1D


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STATEMENT OF TRANSFERS/SUBSIDIES TO PUBLIC CORPORATIONS AND PRIVA

TE ENTERPRISES

TRANSFER ALLOCATION EXPENDITURE

Adjusted Roll Overs Adjustments Total Actual % of Available Capital NAME OF PUBLIC appropriation Available Transfer funds CORPORATION/PRIVATE Act transfer

r

ed ENTERPRISE

R'OOO R'OOO R'OOO R'OOO R'OOO % R'OOO

Public corporations

Transfers 62 699 . . 62 699 62 699 100.0%

Mjindi Farming 50 506 . . 50 506 50 506 100.0%

lthala Development Finance 12 193 . . 12 193 12 193 100.0%

Sub total: Public corporations 62 699 . . 62 699 62 699 100.0%

Private enterprises

Transfers 37 754 . 31 503 69 257 49 392 71.3%

SA Sugar Research Institute 2 557 . . 2 557 2 544 99.5%

SA Sugar Association - - 27 053 27 053 27 053 100.0%

Donations & Gifts Private Ent 5 - - 5 5 100.0%

Soil Conservation subsidy: - -

Aquason Construction 789 - - 789 789 100.0%

Mvuthshini Estate PTY (LTD) 402 - - 402 402 100.0%

Radley,JH 309 - - 309 309 100.0%

Nyonende Hatchery 8 300 - - 8 300 4 200 50.6%

Communual Estates 25 392 - - 25 392 9 640 38.0%

lnqanawe Tunnel Project - - 4 450 4 450 4 450 100.0%

Sub total: Provate enterprises 37 754 . 31 503 69 257 49 392 71.3%

TOTAL 100 453 . 31 503 131 956 112 091 84.9%

2014/15

Current Appropriation

Act

R'OOO R'OOO

. 62 699 46 607

50 506 46 607

12 193

. 62 699 46 607

. 49 387 7 470

2 544 6 OOO

27 053 1 395

75

789

402

309

4 200

9 640

4 450

. 49 387 7 470

. 112 086 54 077

ANNEXURE1F


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STATEMENT OF TRANSFERS TO NON-PROFIT INSTITUTIONS

TRANSFER ALLOCATION

Adjusted Roll Adjustments Total

Appropriation overs Available

Act

NON-PROFIT INSTITUTIONS R'OOO R'OOO R'OOO R'OOO

Transfers

Zakhe Agricultural College 3 089 - - 3 089

Agricultural schools 10 681 - - 10 681

Total 13770 - - 13 770

EXPENDITURE 2014/15

Actual %of Appropriation

Transfer Available Act

funds

transferred

R'OOO % R'OOO

3 089 100% 750

10 681 100% 5 300

13770 100% 6 050

�

ANNEXURE1G


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STATEMENT OF TRANSFERS TO HOUSEHOLDS

TRANSFER ALLOCATION

Adjusted

Appropriation

Act Roll Adjustments Total

HOUSEHOLDS Overs Available


Transfers

Injury on Duty 126 - - 126

Severance Package - - - -

Leave Gratuity 11 183 - 4 069 15 252

Claims Against State 11 - - 11

Bursaries non-employees - - 3 099 3 099

Total 11 320 - 7168 18 488

EXPENDITURE 2014/15

%of

Available Appropriation

Actual funds Act

Transfer Transferred

R'OOO % R'OOO

126 100% 256 - - 588

15 252 100% 11 363

11 100% 60

3 099 100% -

18 488 100% 12 267


VOTE3

ANNEXURE 1H



STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS RECEIVED

NATURE OF GIFT, DONATION OR

NAME OF ORGANISATION SPONSORSHIP

Received in kind

Department of Agriculture, Forestry & Fisheries Computers and other equipment, library books

Department of Agriculture, Forestry & Fisheries Vehicles, Tractors and implements

Department of Agriculture, Forestry & Fisheries Parkhome clinics, cottages

Total

2015/16 2014/15

R'OOO R'OOO

3 407 7 004

1 937 5453

5 693 -

11 037 12 457

�

ANNEXURE 11


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STATEMENT OF AID ASSISTANCE RECEIVED

NAME OF DONOR PURPOSE OPENING

BALANCE REVENUE

R'OOO R'OOO

Received in cash

World Health Organisation (Rabies project) Project Implementation 413 2 482

Total 413 2 482

CLOSING

EXPENDITURE BALANCE

R'OOO R'OOO

2 895 -

2 895 -

�

ANNEXURE1J


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STATEMENT OF GIFTS, DONATIONS AND SPONSORSHIPS MADE AS AN ACT OF GRACE

NATURE OF GIFT, DONATION OR SPONSORSHIP

(Group major cateaories but list material items includina name of oraanisation

Made in kind

Token of appreciation at Service Excellence Awards - Mesrrs Brian and Siphumelel

10 Cattle - Nxamalala Event in lmpendle

2 Sheep - Israel Spiritual Church

3 Cattle - Maphumulo Traditional Council

2 Cattle - Willowfontein Rural horse Riding Club

1 Bull - Sakhubunye Livestock Co-Operative

10 Cattle - lsimahla Traditional Council

1 Cow - Departmental Sports Day

Goats - king at Expo Msinga

Livestock for Community Project meeting at lnanda

Livestock for Stakeholder's meeting at Chesterville

Sheep for Fire victims, 3 families in Kokstad

6 Cattle for President's visit to lmpendle

5 Cattle for the Kings Wedding

Made in Cash

50th Anniversary fundraising dinner - Edendale Lay Ecumenical centre

Summerhill Zulu dancers International trip

Sponsorship for lndoni Cultural Festival - lndoni S.A.

TOTAL

2015/16 2014/15

R'OOO R'OOO

2

50

1

9

8

5

27

4

50

4

5

3

18

23

5 - 75 - 100

161 228

ANNEXURE2A


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STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO NATIONAL/PROVINCIAL PUBLIC ENTITIES

Number of shares Net Asset value of held Cost of investment investment

R'OOO R'OOO State Entity's % %

Name of Public PFMA Held Held Entity Schedule type YY/ZZ XX/YY 2015/16 2014/15 2015/16 2014/15 2015/16 2014/15

National/Provincial Public Entity

Mjindi Farming Schedule 3D 100 100 100 100 8 757 8 757 54 249 50 295

(Proorietorv) Limited

Total 100 100 100 100 8 757 8 757 54249 50 295

Profit/(Loss) for Losses

the year guarantee

R'OOO d

2015/16 2014/15 Yes/No

(8 933) 16 530 No

(8 933) 16 530

ANNEXURE 2B


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STATEMENT OF INVESTMENTS IN AND AMOUNTS OWING BY/TO ENTITIES (CONTINUED)

Net Asset value of Cost of investment Investment

R'OOO R'OOO

Name of Public

Amounts owing to Entities

R'OOO

Entity Nature of business 31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015 Controlled entities

Ntingwe Tea (Pty)Ltd This is the joint venture 1 1 (85 026) (71 546) - -

between the Department

of Agriculture and lthala

Development Finance

Corporation Ltd, whose

main purpose is to

provide funding investing

and establishing a viable

commercial tea business

in Northern KwaZulu

Natal. The company is the

holding company of

Ntingwe Farming (Pty) Ltd

- the operating company.

Department of Agriculture

owns 62% of the shares

in Ntingwe Tea (Pty)Ltd

and lthala owns 38%Totall 1 1 (85 026) (71 546) - -

Amounts owing by Entities

R'OOO

31/03/2016 31/03/2015

- -

- -

ANNEXURE3A


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STATEMENT OF FINANCIAL GUARANTEES ISSUED AS AT 31 MARCH 2016- LOCAL

Original Opening Guarantees Guarantees Revaluations

guaranteed balance draw repayments/

capital 1 April downs cancelled/

Guarantee amount 2015 during the reduced/

in year released

respect of during the

Guarantor Housing year

institution R'OOO R'OOO R'OOO R'OOO R'OOO

Standard Bank 92 92 - 92 -

Firstrand Bank Pty Ltd 35 35 - 35 -

ABSA 145 145 - 111 -

Nedbank Limited 29 29 - 29 -

Old Mutual 48 48 - 48 -

Total 349 349 - 315 -

Closing Guaranteed Realised

balance interest for losses not

31 March year ended recoverable

2016 31 March i.e. claims

2016 paid out

R'OOO R'OOO R'OOO

- - -

- - -

34 - -

- - -

- - -

34 - -

ANNEXURE3B


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STATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2016

Opening Liabilities

Nature of Liability Balance incurred

during the 1 April 2015 year

R'OOO R'OOO

Claims against the department

Accidental Claims 1 157 897

Damage to property 8 496 -

Goods and Services 3 568 33 823

Lease Agreement Dispute 3

General Claims 291 165

TOTAL 13 515 34 885

Liabilities Liabilities Closing

paid/cancell recoverable ed/reduced (Provide Balance

during the details 31 March year hereunder) 2016

R'OOO R'OOO R'OOO

537 - 1 157

69 - 8 427

2 532 - 34 859

3 -

-

13 - 443

3 154 - 45 246

Matters carried over from previous financial years are as a result of pending issues such as awaiting further instruction/and or pleadings/or supporting

documentation and/or trial dates. Reductions to the values are due to settlement being reached/matters withdrawn/matters prescribed. The increase from 2014/15

is due to a substantial claim instituted against the department in relation to an alleged contractual dispute.

ANNEXURE4

CLAIMS RECOVERABLE

Government Entity

Department

National Dept Agriculture, Forestry

and Fisheries

Economic Development

Dept of Arts and Culture

KZN: Human Settlement

KZN: Public Works

COGTA

TOTAL


VOTE3



Confirmed balance Unconfirmed balance outstanding outstanding Total

31/03/2016 31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015


715 - 904 190 1 619 190

2 396 13 093 - 5 638 2 396 18 731 - - 118 - 118 -

22 135 - - 22 135

6 - - - 6 -

- 16 - - - 16

3 139 13 244 1 022 5 828 4 161 19 072

Cash in transit at year end 2015/16 *

Receipt date up to

six (6) working

days after year end Amount

R'OOO

- -

05/04/2016 249 - -

- -

- -

- -

249

ANNEXURE5

INTER-GOVERNMENT PAYABLES

Confirmed balance

outstanding

GOVERNMENT ENTITY

31/03/2016

R'OOO DEPARTMENTS

Current

Dept. of Transport

Dept. of Works

Mineral Resources

Premier

KZN Health

Government Printing

Works Subtotal

Non-current KZN: Arts & Culture National School of Government National Agricultural, Land and Rural Development

Subtotal

Total


VOTE3



Unconfirmed balance outstanding TOTAL

31/03/2015 31/03/2016 31/03/2015 31/03/2016 31/03/2015


31 - 38 1 099 69 1 099 - - 113 - 113 -

- 24 - - - 24 - 7 - - - 7

3 8 - 4 3 12 - - 11 - 11 -

34 39 162 1 103 196 1 142

- - 75 - 75 -

- - 143 - 143 -

- - 61 - 61 -

- - 279 - 279 -

34 39 441 1 103 475 1 142

Cash in transit at year end 2015/16 *

Payment date up to six (6) working days

before year end Amount R'OOO

31/03/2016 32

31/03/2016 6,979 -

-

-

31/03/2016 15

7 026

-

-

-

-

7 026

ANNEXURE 6

INVENTORIES

Inventory

Opening balance

Add/(Less): Adjustments to prior year balance

Add: Additions/Purchases - Cash

Add: Additions - Non-cash

(Less): Disposals

(Less): Issues

Add/(Less): Adjustments

Closing balance


VOTE3



Note Quantity

-

-

-

-

-

-

-

-

2015/16

R'OOO

11 354 -

1 679 -

-

(11 354) -

1 679

Quantity 2014/15

R'OOO - 10 184 -

- 11 354 -

-

- (10 184)

- 11 354

ANNEXURE 7

MOVEMENT IN CAPITAL WORK IN PROGRESS

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2016

Opening Current Completed Closing

balance Year Assets balance

Capital

WIP


BUILDINGS AND OTHER FIXED STRUCTURES 315 150 172 688 487 838

Dwellings

487 8381 Non-residential buildings 315 150 172 688

Other fixed structures

TOTAL 315150 172 688 487 838

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2015

Opening Current Completed Closing

balance Year Assets balance

Capital

WIP


BUILDINGS AND OTHER FIXED STRUCTURES 132 336 182 814 315 150

Dwellings

315 150 I Non-residential buildings 132 336 182 814

Other fixed structures

TOTAL 132 336 182 814 315 150


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