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RURAL DEVELOPMENT ANDAGRARIAN REFORM
Annual ReportVote 8
2014 / 15
Annual Report Vote 8 2014 / 15
PR 22/2015 ISBN: 978-0-621-43815-4
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
Vibrant, equitable, sustainable rural communities and food security for all
PBVibrant, equitable, sustainable rural communities and food security for all
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DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM
PROVINCE OF THE EASTERN CAPE
VOTE NO. 8
ANNUAL REPORT
2014 -2015
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
Vibrant, equitable, sustainable rural communities and food security for all
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1. Department’s General Information ---------------------------------------------------------------------------------------52. List Of Abbreviations ---------------------------------------------------------------------------------------------------------73. Foreword By The Mec -------------------------------------------------------------------------------------------------------94. Report Of The Accounting Offi cer ----------------------------------------------------------------------------------------165. Statement Of Responsibility And Confi rmation Of The Accuracy Of The Annual Report -------------------176. Strategic Overview -----------------------------------------------------------------------------------------------------------187. Legislative And Other Mandates ------------------------------------------------------------------------------------------198. Organisational Structure ----------------------------------------------------------------------------------------------------199. Entities Reporting To The MEC -------------------------------------------------------------------------------------------20
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CONT ENTS
1. Introduction ---------------------------------------------------------------------------------------------------------------------702. Risk Management ------------------------------------------------------------------------------------------------------------703. Fraud And Corruption --------------------------------------------------------------------------------------------------------704. Minimising Confl ict Of Interest ---------------------------------------------------------------------------------------------725. Code Of Conduct -------------------------------------------------------------------------------------------------------------726. Health And Safety And Environmental Issues -------------------------------------------------------------------------727. Portfolio Committee ----------------------------------------------------------------------------------------------------------728. Scopa Resolutions -----------------------------------------------------------------------------------------------------------809. Prior Modifi cation To Audit Reports --------------------------------------------------------------------------------------8210. Internal Control Unit (Icu) ---------------------------------------------------------------------------------------------------8311. InterNal Audit And Audit Committee --------------------------------------------------------------------------------------8412. Audit Committee Report ----------------------------------------------------------------------------------------------------85
PART A: GENERAL INFORMATION
1. Auditor General’s Report: Predetermined Objectives ---------------------------------------------------------------222. Overview Of Departmental Performance -------------------------------------------------------------------------------233. Strategic Outcome Oriented Goals ---------------------------------------------------------------------------------------274. Performance Information By Programme -------------------------------------------------------------------------------285 Transfer Payments -----------------------------------------------------------------------------------------------------------576. Conditional Grants ------------------------------------------------------------------------------------------------------------607. Donor Funds -------------------------------------------------------------------------------------------------------------------668. Capital Investment ------------------------------------------------------------------------------------------------------------66
PART B: PERFORMANCE INFORMATION
PART C: GOVERNANCE
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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CONT ENTS
Annual ReportVote 8
1. Introduction ---------------------------------------------------------------------------------------------------------------------882. Overview Of Human Resources ------------------------------------------------------------------------------------------883. Human Resources Oversight Statistics ---------------------------------------------------------------------------------89
PART D: HUMAN RESOURCE MANAGEMENT
1. Report Of The Auditor General --------------------------------------------------------------------------------------------1122. Annual Financial Statements ----------------------------------------------------------------------------------------------1161. Annual Appropriation ---------------------------------------------------------------------------------------------------------1162. Statutory Appropriation ------------------------------------------------------------------------------------------------------1583. Departmental Revenue ------------------------------------------------------------------------------------------------------1584. Compensation Of Employees ---------------------------------------------------------------------------------------------1595. Goods And Services ---------------------------------------------------------------------------------------------------------1606. Transfers And Subsidies ----------------------------------------------------------------------------------------------------1617. Expenditure For Capital Assets -------------------------------------------------------------------------------------------1638. Unauthorised Expenditure --------------------------------------------------------------------------------------------------1639. Cash And Cash Equivalents -----------------------------------------------------------------------------------------------16410. Receivables --------------------------------------------------------------------------------------------------------------------165 11. Voted Funds To Be Surrendered To The Revenue Fund -----------------------------------------------------------16512. Departmental Revenue And Nrf Receipts To Be Surrendered To The Revenue Fund ----------------------16613. Payables – Current -----------------------------------------------------------------------------------------------------------16614. Net Cash Flow Available From Operating Activities ------------------------------------------------------------------16715. Reconciliation Of Cash And Cash Equivalents For Cash Flow Purposes --------------------------------------168
PART E: FINANCIAL INFORMATION
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
Vibrant, equitable, sustainable rural communities and food security for all
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Vibrant, equitable, sustainable rural communities and food security for all
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
Vibrant, equitable, sustainable rural communities and food security for all
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PART A: GENERAL INFORMATION
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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DEPARTMENT’S GENERAL INFORMATION1. PHYSICAL ADDRESS: Department of Rural Development and Agrarian Reform Dukumbana Building, Independence Avenue Bhisho, 5605 POSTAL ADDRESS: Private Bag X0040 Independence Avenue Bhisho, 5605
TELEPHONE NUMBER/S: 040-602 5007
FAX NUMBER: 040-635 0604
EMAIL ADDRESS: [email protected]
WEBSITE ADDRESS: www.drdar.gov.za
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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LIST OF ABBREVIATIONS2.
ABBREVIATIONS DEFINITIONSABSA Amalgamated Banks of South AfricaADMIN AdministrationAFS Annual Financial StatementsAGSA Auditor General of South AfricaAHT Animal Health TechniciansAPP Annual Performance PlanBAS Basic Accounting SystemCA Contagious AbortionCASP Comprehensive Agricultural Support Programme CFO Chief Financial Offi cerCOE Compensation of EmployeesDAFF Department of Agriculture, Forestry and FisheriesDORA Division of Revenue ActDPSA Department of Public Service and AdministrationDRDAR Department of Rural Development and Agrarian ReformEAP Employees Assistance ProgrammeEAPASA Employee Assistance Professionals Associations of South AfricaEC Eastern CapeECATU Eastern Cape Appropriate Technology UnitECDC Eastern Cape Development CorporationECRDA Eastern Cape Rural Development AgencyEE Employment EquityEEP Employment Equity PolicyEHWP Employee Health and Wellness ProgrammeEIA Environmental Impact Assessment EPWP Extended Public Works ProgrammeEXCO Executive CouncilFAS Financial Accounting ServicesFET Further Education and Training GIAMA Government Immovable Asset Management ActGIS Geographic Information SystemGITO Government Information Technology Offi ceHIV Human Immune Defi ciency VirusHR Human ResourcesHROPT Human Resource Operations Plan Task TeamICT Information Communication and TechnologyIFSS Integrated Food Security StrategyIGR Inter-governmental RelationsIOD Injury on DutyKRA Key Results AreaLMF Labour Management ForumsMEC Member of the Executive CouncilMINMEC Ministers and Members of the Executive CouncilMINTEC Ministerial Technical Committee MOU Memorandum of UnderstandingMPAT Management Performance Assessment ToolNQF National Qualifi cations FrameworkOAG Offi ce of the Auditor GeneralOHS Occupational Health SafetyOHSA Occupational Health Safety ActOSD Occupational Specifi c DispensationPAHC Public Animal Health Clinic PFMA Public Finance Management Act
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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ABBREVIATIONS DEFINITIONSPI Performance IndicatorPoA Program of ActionPSA Public Service AssociationPSCBC Public Service Coordinating Bargaining CouncilRED Rural Enterprise DevelopmentSAQA South African Qualifi cations AuthoritySCM Supply Chain ManagementSETA Sector Education Training AuthoritySHERQ Safety, Health, Environment, Risk and QualitySMS Senior Management ServiceTARDI Tsolo Agricultural and Rural Development InstituteTB TuberculosisTNBS TrinitrobenzosulfonateTR Treasury RegulationsVCT Voluntary Counselling and Testing
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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FOREWORD BY THE MEC3.
The National Development Plan vision 2030 has been translated into the Eastern Cape Provincial Development Plan which promotes strategic economic infrastructure as a basis for future development and employment creation. The Department has used the following policy instruments to guide its developmental agenda towards its 2030 Vision.
Agriculture Policy Action Plan (APAP),• Continuation of the implementation of Outcome 7 • and 10 of the Medium Term Strategic Framework priorities (MTSF),Industrial Policy Action Plan,• New Growth Path, and • Eastern Cape Rural Development Strategy (Ilima • Labantu).
In line with the above-mentioned policy directives, the Department has prioritised and implemented the following key rural development and agrarian reform deliverables:
Expanding food production and to ensure that arable
land in communal areas is put into productive use. In this regard, hectares planted with maize were substantially increased compared to the previous fi nancial years. Investment in agricultural infrastructure such as fencing of arable land, renovation of dipping tanks
and provision of stock water systems to smallholder farmers has created a platform for increased food production.Land reform farms have continued to receive post farm settlement support to sustain agricultural
production. Strengthening and supporting agricultural colleges.
Provision of fi nancial support to co-operatives and rural enterprises.
Establishment of rural enterprise development hubs (RED Hubs) at Mqanduli, Mbizana Lady Frere and
Ncora.
In 2014/15 fi nancial year, the Department has implemented the following programmes:
Rural development coordination and the support to the ECRDA.• Cropping Programme targeting subsistence on small holder farmers.• Livestock development programme to improve the genetic quality of provincial herd.• Agricultural Infrastructure.• Animal Health.• Farmer training and development.• Support to Fort Cox and Tsolo Agriculture and Rural Development Institute.•
The Department is committed to strengthen levels of accountability in partnerships in order to improve governance. To this effect the quality assurance systems i.e. Audit Committee, Risk Management Committee (Chaired by an Independent Chairperson) etc., are fully functional.
During the period under review, we have managed to mobilise various stakeholders such as the Commodity Groups, communities, farmer organisations in rural areas, to support the implementation of rural development and agrarian reform agenda.
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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I acknowledge the commitment and support shown by all stakeholders in the implementation of our programmes with greatest sense of gratitude and appreciation.
_________________ MLIBO QOBOSHIYANE (MPL)MEMBER OF THE EXECUTIVE COUNCIL: RURAL DEVELOPMENT AND AGRARIAN REFORM12 September 2015
_________________ MLIBO QOBOSHIYANE (MPL)MLIBO QOBOSHIYANE (MPL)
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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REPORT OF THE ACCOUNTING OFFICER4.
Overview of the Operations of the Department
During 2014/15, fi fth term of government commenced where a new Executing Authority took charge of the Department. The new government introduced provincial MTSF which was informed by the national development plan and provincial development plan to form the provincial program of action. The Department was also mandated to continue with Rural Development, Land Reform and Food Security with specifi c outcomes for the term of government.
In view of the above, the Department implemented its programmes and projects with speed and urgency. The Department has achieved the following outputs in order to achieve the desired outcomes as outlined in the strategic plan and the annual performance plan.
During the year under review, the Department successfully developed the Eastern Cape Rural Development Plan to give effect to outcome 7 which was endorsed by various stakeholders i.e. municipalities, sector departments (both national and provincial), and public entities in the Rural Development Intergovernmental Forum which was spearheaded by the Honourable MEC.
In the 2014/15 fi nancial year, a total of 18 068,5ha against planned 17 000ha of land has been planted with maize with an expected yield of 68 000 tons. Furthermore, a total of 13 634 against a planned 4 703 food insecure households, were supported with production inputs to promote household food security throughout the province.
With regard to livestock development programme, a total of 459 breeding animals were provided to farmers to enhance livestock improvement and food security. To protect animals, a total of 4 171 436 treatments, through dipping were applied to animals for the control of external parasites. In addition, a total of 1 674 354 animals were vaccinated against controlled animal diseases according to the Animal Disease Act of 1984. Lastly, the Department has supported farmers to improve the quality and quantity of the wool clip by treating 7 690 803 of animals against sheep scab across the province
The challenges that have been experienced by the Department in the year under review is the continued dependency on conditional grants for service delivery programs. To address this challenge the Department has developed a credible business plan to source more funding for cropping programmes. The Department has also struggled to recruit scarce skills i.e. state veterinarians, engineers, scientists etc. In response to the challenge the Department has provided bursaries to students in the areas identifi ed as scarce.
ECATU in terms of the Corporations Transitional Provisions Act (Eastern Cape) 12 of 1995 was dissolved in terms of the proclamation effective from 1 April 2014. Such termination was preceded by a process where employees, identifi ed assets and liabilities of ECATU were transferred to the Department. The transfer of employees, assets and liabilities did not involve a going concern transfer or acquisition of a business of ECATU. The intention is for ECATU to be delisted from the Public Institutions listed in the PFMA Schedule 3C as at 30 April 2015. For further information and disclosure, schedules have been attached for employees, assets and liabilities transferred from ECATU. The following information is relevant to note;
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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1. Compensation of Employees
The Compensation of Employee disclosure is inclusive of salaries for ECATU employees that were transferred to the Department.
2. Assets
When the assets were transferred to the Department they were taken at cost using the invoice amount as per departmental policy. Assets with no supporting documentation were fair valued using the Departmental asset register. Assets that were acquired in April 2002 and those that reached 5 years lifespan were valued at R1. All assets that could not be physically verifi ed were recorded as lost and referred to Loss Control Offi cer who has undertaking an investigation.
3. Accruals / Accounts Payable
Accruals amounting to R2 451 million were settled by the Department.
4. Additional information
4.1 Funds surrendered
All unspent funds amounting R2 223 million as at 31 March 2014 were surrendered to Provincial Treasury as required by Treasury Regulation.
4.2 Irregular Expenditure
Irregular expenditure as disclosed as at 31 March 2014 was understated by R642 000. The Department will follow the departmental processes of investigating and condoning the irregular expenditure.
OVERVIEW OF THE FINANCIAL RESULTS OF THE DEPARTMENT
Departmental receipts 2014/2015 2013/2014Estimate Actual
Amount Collected
(Over)/ Under
Collection
Estimate Actual Amount
Collected
(Over)/ Under
CollectionR’000 R’000 R’000 R’000 R’000 R’000
Sale of goods and services other than capital assets
7 406 4 590 2 816 6 315 4 777 1 538
Sale of scrap and waste - 249 -249 - - -Transfers received - 2 223 -2 223 0 16 112 -16 112Fines, penalties and forfeits - 1 -1 - - -Interest, dividends and rent on land 30 14 16 28 2 26Sale of capital assets 36 342 -306 34 244 -210Financial transactions in assets and liabilities
1 007 3 475 -2 468 950 2 185 -1 235
Total 8 479 10 894 -2 415 7 327 23 320 -15 993
The Department over collected its revenue by R2.4 million against the estimated amount of R8.4 million. The over collection is attributable to a transfer from the former departmental entity bank balance, Eastern Cape Appropriate Technology Unit (ECATU), which ceased to exist as at end March 2014 and was integrated into the Department.
The Department has an approved tariff register which follow a variety of principles such as market related rates as determined by legislation. Considerations are also infl uenced by whether a client is a smallholder or subsistence farmer. Revenue received from sale of capital assets is incidental or a spin-off from research (biological assets), obsolete furniture and equipment disposed.
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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Programme Expenditure
Programme Name 2014/15
R’000
2013/14
R’000Final
AppropriationActual
ExpenditureVariance Final
AppropriationActual
ExpenditureVariance
Administration 418 185 417 898 287 388 042 388 698 (656)Sustainable Resource Management 131 538 127 538 4 000 146 142 142 127 4 015
Farmer Support and Development 570 691 564 366 6 325 552 695 553 660 (965)
Veterinary Services 254 696 254 696 - 247 761 245 408 2 353Technology Research and Development 107 190 107 770 (580) 117 826 119 009 (1 183)
Agricultural Economics 45 241 45 073 168 45 386 41 824 3 562Structured Agricultural Training 123 959 117 179 6 780 111 229 107 414 3 815
Rural Development Coordination 218 978 218 248 730 133 700 133 063 637
Total 1 870 478 1 852 768 17 710 1 742 781 1 731 203 11 578
The Department underspent its budget by R17.7 million against the adjusted budget of R1.8 billion which translates to an under expenditure of 0.95%.
Programme 2: R4mThe under expenditure of R0.367 million on Goods and Services is attributed to delays in the payments to Post Offi ce for the payment of wages for Land Care Projects. Under-spending of R3.634 million on capital is due to delays in the construction of Tsolo Vet Clinic which was initially planned to be built in Mthatha. When a decision was made to move it to Tsolo, the plan had to be adjusted. A request has been submitted to Provincial Treasury to rollover the funds to the next fi nancial year.
Programme 3: R6.325mThe under expenditure of R3.740 million on goods and services relates to savings realised from cropping programme as well as fl eet invoices that were submitted late. The under spending of R2.616 million on Capital is as a result of projects retention and contingency budget for projects that were fi nished later than planned resulting in the retention period extending into 2015/16.
Programme 7: R6.780mThe under expenditure in this programme relates to both Goods & Services and Payment for Capital Assets. The programme experienced challenges in the implementation of training projects which resulted in delays and under expenditure of R2.0 million on goods and services. With regard to Capital, the projects amounting to R4.7 million which could not be completed due to delays and capacity issues by the service provider.
Detailed explanation for material under expenditure can also be viewed in notes to the Appropriation Statement.
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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Virements Virements were done to relieve unforeseen cost pressures caused by higher staff turnover in some programmes and commitments realised through the reprioritisation of the available budget. All the Virements were approved by the Accounting Offi cer in terms of section 43(1) of the Public Finance Management Act (PFMA) and were kept within the eight percent in line with section 43 (2) of the PFMA.
Programme 1: R10.449mVirements from Programmes 2 and 4 to Programme 1 were done to relieve cost pressure caused by natural attrition which resulted to shortfall on leave gratuity budget. The remainder of amount was also used to curb shortfall on fl eet budget. Funds to rescue the situation were received from programmes 2 and 4 mainly where savings were realised from Compensation of Employees (COE). These savings accumulated as a result of natural attrition in the course of the year.
Programme 2: (R6.416m)This programme realised savings on COE due to staff attrition. This saving was shifted toProgramme 1 as explained above.
Programme 3: (R0.856m)This programme also realised savings on Compensation of Employees due to staff attrition. This saving was shifted to Programme 5 which was experiencing budget shortfalls on Compensation of Employees.
Programme 4: (R3.555m)This programme, same as the other Programmes above, realised savings on Compensation of Employees due to staff attritions. This saving was shifted to Programme 1 which was experiencing budget shortfalls on leave gratuity and departmental fl eet expenditure.
Programme 5: R1.829mThe Organisational Specifi c Dispensation (OSD) cumulative effect resulted in this programme experiencing budget shortfalls on the Compensation of Expenditure budget. This situation was rescued by programmes 3 and 8 who were realising savings on the same item.
Programme 6: R1.196mThis programme realised minimal shortfalls on both COE and Goods & Services. Funds were received from Program 7 address the shortfalls.
Programme 7: (R1.071m)This programme realised savings on COE due to staff attrition. This saving was shifted to Programme 6 as explained above.
Programme 8: (R1.576m)This programme realised savings from Goods & Services. The savings were partly utilised the budget shortfall on COE with the programme and balance was shifted to programme 5 as under programme 5 above.
Roll-oversThe Department submitted a request to roll over funds for projects that were not completed during the 2013/14 fi nancial year. A roll-over request was submitted and approved as follows;
Grant Name Amount R’000
CASP 10 744Land Care 488EPWP 195TOTAL 11 427
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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Fruitless and Wasteful ExpenditureDuring the 2014/15 fi nancial year the Department incurred fruitless and wasteful expenditure amounting to R563 448.97. This was mainly caused by interest charged on accounts from the Offi ce of the Auditor-General, Telkom, accommodation and car hire. Departmental procedures are put in place to address the occurrence of fruitless and wasteful expenditure.
Irregular ExpenditureThe Department incurred irregular expenditure amounting to R4.9 million during the 2014/15 fi nancial year. A total amount of irregular expenditure, R0.086 million was condoned. The Department is investigating irregular expenditure, amounting to R4.8 million.
The Department has put measures in place to prevent irregular expenditure. All cases are referred to the Irregular Expenditure Committee to analyse each case and advice on action to be taken. Consequence management is being applied.
Public Private PartnershipsNo Public Private Partnerships exist.
Discontinued activities / activities to be discontinuedNo activities were discontinued.
New or Proposed activitiesThere are no new proposed activities.
Supply chain managementThe Department continues to strengthen Supply Chain Management systems by fi lling critical vacancies to ensure segregation of duties and on- going appropriate training of staff in partnership with National Treasury.
Gifts and Donations received in kind from non-related partiesNone.
Exemptions and deviations received from the National TreasuryNone.
Events after the reporting dateNone.
Acknowledgements/AppreciationThe Department acknowledges and appreciates the leadership and the guidance provided by the Hon. MEC M. Qhoboshiyane. The work of the Department would not have been possible without the support of the stakeholders, farmers, communities and dedicated staff.
ConclusionIn the 2014/15 fi nancial year, DRDAR achieved unqualifi ed audit after three consecutive years of qualifi ed audit fi ndings. This demonstrated effective and effi cient utilisation of resources to deliver rural development and agriculture related priority programmes. During the year under review, the Department implemented strategic programme which over time will yield desired impact in the reduction of poverty, underdevelopment and unemployment.
_______________________L.L. NGADAACCOUNTING OFFICER12 September 2015
_______________________
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL 5. REPORT
I hereby submit this report as a true refl ection of the Department’s performance towards achieving the outcome oriented strategic goals. Good progress has been made to ensure that quality services were provided to rural communities in general and farming communities in particular.
To the best of my knowledge and belief, I confi rm that:
All information and amounts disclosed in the annual report is consistent with the annual fi nancial • statements audited by the Auditor General.
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 modifi ed cash • standard and the relevant frameworks and guidelines issued by the National Treasury.
As the Accounting Offi cer, I am responsible for the preparation of the annual fi nancial statements and • for the judgements made accordingly in this information.
I have established and implemented a system of internal control to ensure increased levels of integrity and reliability of performance information, the human resources information and the annual fi nancial statements.
In my opinion, the annual report fairly refl ects the operations, the performance information, the human resources information and the fi nancial affairs of the Department for the fi nancial year ended 31 March 2015.
________________________L. L. NGADA ACCOUNTING OFFICER12 September 2015
________________________
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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STRATEGIC OVERVIEW6.
6.1 Vision Vibrant, equitable, sustainable rural communities and food security for all.
6.2 Mission Promote, support and coordinate rural development and agrarian reform to reduce poverty and under- development through integrated and participatory interventions.
6.3 Values• Innovation: Committed to keep abreast of new developments in relevant fi elds of expertise and be innovative in carrying out the mandate of the Department.
• Excellence: We are committed to exceed our customer’s expectations for quality, responsiveness, effi ciency and service excellence
• Bambisanani: Believe that the sum of our collective efforts will be greater than the total of our individual efforts • Mutual respect: We value each other’s contribution as we seek to realise the vision and goals of the Department.
• Honesty and Integrity: Commitment to be transparent with all stakeholders.
• Inclusiveness: “Bonke abantu esisebenza nabo, siya kusebenzisana nabo ngokufanelekileyo nangokulinganayo”.
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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LEGISLATIVE AND OTHER MANDATES7.
The Department’s mandates are informed by the following Acts:
Constitution of the Republic of South Africa, Act 106 of 1996 Act No 106 of 1996• The Agriculture Development Act, 1999 Act No. 67 of 1999• Conservation of Agricultural Resources Act,1983 Act No. 43 of 1983• Eastern Cape Rural Finance Cooperation, Act 2012 Act No. 9 of 1999 as •
Amended by Act1 of 2012 Veterinary and Para-Veterinary Professions Act,1982 Act No. 19 of 1982• The Animal Health Act, 2002 Act No. 7 of 2002 • The Animal Identifi cation Act, 2002 Act No. 6 of 2002 • The Meat Safety Act, 2000 Act No. 40 of 2000• Animal Disease Act, 1984 Act No. 35 of 1984• Animal Improvement Act, 1998 Act No. 62 of 1998• Animal Protection Act, 1962 Act No. 71 of 1962• Livestock Improvement Act, 1997 Act No. 25 of 1997• Agricultural Pests Act, 1983 Act No. 36 of 1983• Fertilizers, Farm Feeds, Agricultural Remedies and • Stock Remedies Act, 1947 Act No. 36 of 1947Agricultural Research Amendment Act, 2001 Act No. 27 of 2001 • Marketing of Agricultural Products Act, 1996 Act No. 47 of 1996• Fencing Act, 1963 Act No. 31 of 1963• Land Tenure Rights Act, 1991 Act No. 112 of 1991• Intergovernmental Relations Framework Act, 2005 Act No. 13 of 2005• Public Finance Management Act, 1999 Act No.1 of 1999• Basic Conditions of Employment Act,1997 Act No.75 of 1997• Division of Revenue Act, 2009 Act No. 12 of 2009• Preferential Procurement Policy Framework Act, 2000 Act No. 5 of 2000• Public Service Act and Regulations, 1994 Act No. 103 of 1994 • Skills Development Act, 1998 Act No. 97 of 1998• Occupational Health and Safety Act, 1993 Act No. 85 of 1993• Employment Equity Act, 1998 Act No. 55 of 1998• Promotion of Access to Information Act, 2000 Act No. 2 of 2000• Treasury Regulations issued in terms of PFMA Act, 1999 Act No. 29 of 2000 • Promotion of Administrative Justice Act, 2000 Act No. 2 of 2000• Spatial Planning and Land Use Management Act, 2013 Act No 16 of 2013•
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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ECRDA
ORGANISATIONAL STRUCTURE8.
Mr. LL NgadaAccounting Offi cer
Mrs. ZB MakinaDDG: Admin
Mr. B Dayimani Acting COO Rural
Development
Ms. N TungataCFO
Mr. L CoetzeeDDG: Agriculture
Hon M Qhoboshiyane (MPL)MEC
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List of programmes
NO PROGRAMME RESPONSIBLE OFFICIAL
DESIGNATION
1 Administration Mrs Z Makina DDG: Administration 2 Sustainable Resource Management Mr. L Coetzee DDG: Agriculture Development 3 Farmer Support and Development Mr. L Coetzee DDG: Agriculture Development 4 Veterinary Services Mr. L Coetzee DDG: Agriculture Development 5 Research and Technology Development Mr. L Coetzee DDG: Agriculture Development 6 Agricultural Economic Services Mr. L Coetzee DDG: Agriculture Development 7 Structured Agricultural Education and Training Mr. L Coetzee DDG: Agriculture Development 8 Rural Development Mr. B Dayimani DDG: Acting COO Rural Development
ENTITIES REPORTING TO THE MEC9. The Eastern Cape Rural Development Agency (ECRDA) is the sole public entity of the Department of Rural Development & Agrarian Reform. It is mandated to implement rural development initiatives on behalf of the Department. The relationship between DRDAR and ECRDA is regulated by a Shareholder’s Compact with regard to the appointment of the Board and the chairperson, accountability including reporting on key performance indicators/ projects and fi nancial reporting on transferred funds, and in compliance with the Accounting Authority of the Agency review its performance levels in relation to the requirements of the Department. Progress is monitored on a quarterly basis by submission of quarterly performance reports and fi nancial reports to the Department as part of the accountability system.
Table 1: Entities, functions and relations with the MEC.Name of Entity Legislative Mandate Financial Relationship Nature of Operations
Eastern Cape Rural Development Agency (ECRDA)
Eastern Cape Rural Finance Cooperation Amendment, Act 2012
The Department provides funding on an annual basis to support the operations of the entity. The budget allocated to the entity for year under review amounted to R210 779 000.
The ECRDA is a catalyst • organization, with an emphasis on planning, research and project packaging, facilitation, project management, and implementation of priority programs.
Other functions are innovation, • development as well as mobilizing resources and capacity.
Rural fi nance services to rural • communities, with specifi c emphasis on loan fi nance on farming enterprises.
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PART B: PERFORMANCE INFORMATION
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AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES1.
The Auditor General South Africa (AGSA) currently performs the necessary audit procedures on the performance information to provide reasonable assurance in the form of an audit conclusion. The audit conclusion on the performance against predetermined objectives is included in the report to management, with material fi ndings being reported under the Predetermined Objectives heading in the Report on other legal and regulatory requirements section of the auditor’s report.
Refer to page 112 to 115 of the Report of the Auditor General, published as Part E: Financial Information.
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OVERVIEW OF DEPARTMENTAL PERFORMANCE2.
2.1 Service Delivery Environment
The Department has developed and implemented impactful programmes to exploit the competitive advantage of the Province in order to revive rural economy. In this regard, the high rainfalls in the coastal areas presented an opportunity for the cropping programme coupled with support for dairy, subtropical fruit etc. The Provincial herd enabled the Department to implement livestock development programmes which was supported by a strong agricultural infrastructure provision across the Province. It is however important to note that even though the Province did not experience major disasters, it was affected by isolated cases of drought in the Joe Gqabi district and three major runaway veld fi res.
The Department successfully implemented a cropping programme where 18 068,5ha were planted against the target of 17 000ha. The expected tonnage of the planted 18 068,5ha is 72 200 tons which will be higher than the 42 598 tons of the 12 888ha planted in 2013/14 fi nancial year. The Department provided support for storage and access to markets where farmers can sell their produce. Furthermore, the Department provided support to 13 634 food insecure households with agricultural production inputs as a means of fi ghting poverty and malnutrition. In addition, 572 farmer’s days were held to create platforms for the dissemination/exchange of information on agricultural practices, technology and products. These mainly focused on maize cultivation and appropriate livestock management practice.
Through the ECRDA, the Department played a critical role in agro-processing value chain in the Province. In this regard, the Rural Enterprise Development (RED) Hubs were established in Mqanduli, Mbizana, Lady Frere and Ncora for agro-processing and value chain addition. The RED hubs will provide storage facilities for produce, processing and marketing that will contribute to growth of agricultural output and employment. Lastly, the ECRDA has disbursed a total of R12.2 million to support rural enterprises and cooperatives for production purposes.
The Department has unlocked livestock potential through distribution of quality genetic material bulls, rams, heifers and bucks throughout the Province. A total of 459 animals were distributed (i.e 19 Brahman bulls, 27 Nguni bulls, 36 Bonsmara bulls, 2 Beefmaster bulls, 2 Simbra bulls, 1 Brangus bull, 50 Boer goat bucks, 108 Boer goat ewes, 94 Dohne merino rams and 120 Nguni heifers) were allocated to projects across the Province.
In an attempt to improve animal health in the Province, the Department conducted 7.7 million treatments for the control of sheep scab. Furthermore 4.1 million treatments were conducted against external parasites through its dipping programme. The Department supported the exports of animals and animal products through auditing of 25 export establishments to ensure compliance with export standards. In addition, the Department has completed 54 infrastructure projects (stock-water, shearing sheds, dipping tanks, boreholes, irrigation systems) which supported livestock production. The agricultural human capital development is important for the success of the agricultural sector. To this end the Department re-opened the Tsolo College to offer an Animal Health Diploma. In the 2014/15 fi nancial year, a total of 139 Animal Health Diploma students were admitted at the College.
The Department has the responsibility to promote and manage the sustainable use of natural agricultural resources through Land Care programmes. During the 2014/15 fi nancial year the Department has implemented Land Care programmes which resulted in conservation of 3 616 farm hectares and a total of 1 933 green jobs were created. The Department promotes the participation of women in agriculture throughout the agricultural value chain. A number of initiatives specifi c to women empowerment in agriculture has been undertaken where cropping, livestock and infrastructure were the development focus. The top performing female farmers were identifi ed through a transparent screening process for recognition at both provincial and national level. A total of 24 women from the province were recognized and awarded prizes for their contribution in various agricultural enterprises, of which one citrus farmer became the overall winner of the 2014 National Female Entrepreneur of the year.
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2.2 Service Delivery Improvement Plan
Main services provided and standards
Main services Benefi ciariesCurrent /actual
standard of service
Desired standard of service Actual achievement
Provision of effective extension services
Rural communities and other government entities operating in the rural space
The extension offi cer will provide a professional and appropriate technical advice to the farmers’ requests within fi ve (5) working days.
The extension offi cer will provide professional and appropriate technical advice, facilitate and coordinate rural development activities and respond to requests within three (3) working days.
The extension offi cers have provided professional and technical advice, facilitated and coordinated rural development activities and responded to all requests received within three working days.
A total 1193 demonstrations have been facilitated to practically educate farmers, on sustainable agricultural production methods.
Batho Pele arrangements with benefi ciaries (Consultation access)
Current arrangements Desired arrangements Actual achievements
Social mobilisation by Extension offi cers. Rural communities are consulted on services rendered through ward council committees, traditional councils, farmers, unions and sector departments.
Social mobilisation by Extension offi cers. Rural communities are consulted on services rendered through ward council committees, traditional councils, farmers, unions and sector departments.
Extension offi cers have organised social mobilisation by consulting rural communities on services rendered, through ward council committees, traditional councils, farmers, unions and sector departments.
Extension offi cers have in the wards provided access to specialised services in all the municipalities and districts where they operate.
The Department has acknowledged all requests received and solicited feedback from most of the service communities.
The Department has organised on annual basis, open information days and procedures with relevant stakeholders.
A total of 28 functional commodity groups have been supported with technical business advice to enhance farming outputs.
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Service delivery Information tool
Current/Actual information tools Desired information tools Actual achievementRural communities will be informed about rural development initiatives/programs through technologies, media and information sharing sessions.
Rural communities will be informed about rural development initiatives/programs through technologies, media and information sharing sessions.
In the fi nancial year under review, rural communities have been informed about rural development initiatives/programmes through technologies, media, and information sharing sessions.
During information sessions, extension offi cers have provided explanations to all affected benefi ciaries within seven (7) days when unable to provide technical advice.
Rural communities have been informed about rural development initiatives/ programs through technologies, media, and information sharing sessions.
A total of 572 farmer days were held to create a platform for the dissemination and exchange of information on agricultural practices, technology, and products.
Complaints mechanism
Current /actual complaints mechanism
Desired complaints mechanism Actual achievements
Complaints are received personally, through e-mail, through fax, telephone, and written letter.
In addition to the existing arrangement, our vision is to adopt ICT’s as online and social media so as to also attract out of school youth and to ensure easy traceability of each comment.
The Department achieved a 92% response rate to the Presidential Hotline complaints.
The public is catered for at all levels and some complaints that are received personally, through e-mail, through faxes, telephones, and written letters, are resolved within 3 days.
The complaints handling mechanism has been popularized through email for internal stakeholders and quarterly departmental publication Masilime for external stakeholders.
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2.3 Organisational environment
The 2014/15 fi nancial year marked the fi rst year of the 2014-2019 term of government which continues to embrace accelerated rural development, land reform and food security mandate. The Department successfully translated the Provincial Medium Term Strategic Framework (PMTSF) priority number three i.e. stimulating rural development, land reform and food security into specifi c deliverables and targets for the next fi ve years. All departmental programmes and projects are shaped and guided by the PMTSF specifi c deliverables and targets. The coordination of national Outcome 7 was up scaled, a rural development technical Inter Governmental Relations with stakeholders (municipalities, sector departments and public entities) was held leading to the development of the Provincial Integrated Plan and a Programme of Action (POA) based on the six outputs of the outcome. This plan is monitored by MINTECH and MINMEC on a quarterly basis over the term of government.
In order to strengthen the management systems and good governance in the Department, various policies were developed, recommendations of the Audit Committee implemented and an appointment of an independent chairperson of the Risk Management Committee was made.
During the year under review, a total of 568 staff members participated in a culture change programme which assessed the status of the culture and provided interventions to support a good culture that is aligned to the values and strategy of the Department.
The Department has effectively managed the pre-determined objectives in way which has led to the Department not only to being compliant with the legal prescripts and or regulatory requirements, but is currently operating at level 4 in two (2) KRAs (Strategy Management and Governance & Accountability), specifi cally the Service Delivery Improvement Plan and M&E i.e. being fully compliant and working smartly.
In a bid to achieve good governance and to create an enabling Information Communication Technology (ICT) environment, the ICT Steering committee was established, as a result the following documents namely ICT Governance Framework, ICT Governance Charter and ICT Policy were developed in compliance with the DPSA Guidelines and has helped the Department to realize its strategic intent.
In support of TARDI academic programmes, High Speed Wi-Fi connectivity that allows access to internet has been deployed for the benefi t of the students, staff and the surrounding communities. In addition, inter-active whiteboards which has improved effi ciency in lecturing and provides live interaction with the students, were installed. Library access control was also installed to improve security and minimise the loss of academic material.
Improvement of the environmental controls, security of data has been on the top of the ICT agenda and therefore an automated desktop backup solution was deployed across the Department to ensure information capital that is residing on the Departmental computers is recoverable in case of any kind of loss, and this solution had proven to be very effective.
In order to realize the reduction of unemployment in the province and accelerate economic growth the Department managed to appoint 88 unemployed graduates and placed them on an internship program to equip them with required skills. These students were exposed to Extension Services, Engineering and Agricultural Science fi elds.
A total of 21 students were provided with bursaries in scarce skills areas (11 in Veterinary Science, fi ve in Soil Science, two in Plant Pathology, one in Entomology and two in Civil Engineering) targeting young people within the Province.
A total of 41 candidate interns were capacitated in various administrative fi elds as part of experiential training exposure in order for them to obtain their NQF 6 qualifi cation.
In order to build capacity and improve effi ciencies within the Department, 37 employees were trained in the fi nancial management Learnerships and graduated with an NQF3 qualifi cation. This helped the Department to improve the fi nancial management competency when delivering fi nancial services. In the implementation of the Department’s workplace skill plan, the Department trained a total of 1 654 employees. Furthermore the Department was engaged in a Compulsory Induction programme where a total of 98 newly appointed offi cials participated.
The Department is striving to achieve the employment equity targets of 50% female at SMS level, however over the past fi nancial year the Department was not able to achieve the target due to developmental challenges. To address this challenge, the Department has developed empowerment programmes targeting women in leadership positions to capacitate them for future career pathing.
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The well-being of the Departmental employees is critical to the success of the achievement of its goals and objectives. To improve the health of the employees of the Department, the Department has continued to champion the promotion of VCT for early detection and preventive efforts to reduce diseases such as the TB transmission, HIV/AIDS and other chronic disease in the workplace.
To reduce the vacancy rate and address the shortage of critical skills in the Department, 11 Agricultural Advisors for Crop Production and Animal Production, 66 Agricultural Development Technicians, seven State Veterinarians and fi ve Agricultural Economists were appointed.
2.4 Key policy development and legislative changesNo policy and legislative changes were made during the year under review.
STRATEGIC OUTCOME ORIENTED GOALS3. The National Development Plan’s vision 2030 focuses on inclusive growth and equitable economy. In order to achieve the kind of growth, the Eastern Cape Development Plan (2030) offers an economic strategy that focuses on strategic economic infrastructure as the basis for future development and employment creation. The Department has made progress in implementing the outputs outlined in the Medium Term Strategic Framework government priorities especially national Outcomes 7 and 10.
The three strategic goals of the Department are:
A thriving farming sector and access to affordable food.•
Coherent and co-ordinated rural development for improved quality of life.•
Good governance and clean administration.•
These strategic outcome oriented goals, have been identifi ed to refl ect critical service delivery priorities which are intended to:
Ensure that the mission of the Department is achieved;•
Provide a line of sight in the process to achieve the overall mandate of the Department • which is to enhance rural development, land and agrarian reform, and food security;
Inspire a cadre of offi cials and stakeholders to strive to achieve them for the benefi t of the • rural poor and vulnerable.
The Comprehensive Rural Development Medium Term Strategic Framework (MTSF) 2014-2019 endorsed a clear programme of action for the rural development coordination, planning and implementation. Initial progress has been made to implement the Integrated District Rural Development Plan in district municipalities focusing of matters including land administration matters to be resolved, land acquisition, rural spatial planning, rural institutional development programme, food security programme, support for small rural farmers, provision of basic rural infrastructure, rural small enterprise and economic development. These plans improve coordination and integration of rural development planning and implementation.
Lastly, the overall performance of the Department is at 87.7% achievement of the set targets for the 2014/15 fi nancial year. All areas of underperformance are explained and strategies to improve performance are clearly articulated.
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PERFORMANCE INFORMATION BY PROGRAMME4. 4.1 Programme 1: Administration
Objective: To manage and formulate policy directives and priorities and, to ensure there is appropriate support service to all other programmes with regard to fi nance, personnel, information, communication and procurement.
List of Sub-Programmes:
Sub-Programme 1.1: Offi ce of the MEC,• Sub-Programme 1.2: Senior Management,• Sub-Programme 1.3: Corporate Services,• Sub-Programme 1.4: Financial Management,• Sub-Programme 1.5: Communication Services.•
List of Strategic Objectives:
SO 1.1 • Political leadership and strategic direction providedSO 1.2 • Overall accountability, integration and implementation of strategy provided.SO 1.3 • Overall fi nancial, human and technological management support provided.
Sub-Programme: 1.1: Offi ce of the MEC
Objective: To set priorities and political directives in order to meet the needs of clients.
SG 1: SO 1.1 Political leadership and strategic direction provided.Performance Indicator Actual
Achievement 2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of MEC’s engagements with Public Stakeholders (IGR /MinMec /MuniMec) and Private Enterprise conducted to ensure optimal alignment of the Department.
16 10 15 5 Over-performance
1.2 No of statutory compliance documents tabled at the Legislature.
3 4 4 - No deviation
1.3 Number of MEC’s special programmes’ implemented to cater for rural development priorities as outlined in Outcome 7
12 8 8 - No deviation
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Reasons for all deviationsOver performance was caused by additional MinMec, MuniMec and IGR sessions that were more than anticipated 1.1 due to the lengthy process of translating the MTSF in all three spheres of government.
Strategy to overcome areas of under performance
None.
Changes to planned targets
None.
Sub-Programme 1.2: Senior Management
Objective: To translate policies and priorities into strategies and programmes for effective service delivery and to manage, monitor and control performance.
SG 1: SO 1.2 Overall accountability, integration and implementation of strategy provided.SG 1: SO 1.3 Overall fi nancial, human and technological management support provided.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of strategic leadership and management sessions held to enhance effi ciency in the Department.
New PI 12 16 4 Over-performance
1.2 Number of organizational performance review sessions concluded
New PI 4 4 - No deviation
1.3 Number of governance sessions concluded New PI 8 9 1 Over-
performance
Reasons for all deviationsPI 1.1 The Leadership resolved to strengthen high level strategic monitoring of fl agship projects of the Department
through additional site visits and hence the over performance on a number of strategic leadership and management sessions held to enhance effi ciency in the Department.
PI 1.3 The Department introduced Anti-Corruption & Fraud Prevention and Security Management as part of strengthening governance systems and that resulted in more governance sessions being held than anticipated.
Strategy to overcome areas of under performance
None.
Changes to planned targetsNone.
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Sub-Programme 1.3: Corporate ServicesObjective: To provide support service to the other programmes with regard to Human Resources management and
development, Information Technology and Communication service.
SG 1: SO 1.2 Overall accountability, integration and implementation of strategy provided.SG 1: SO 1.3 Overall fi nancial, human and technological management support provided.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Regular reviews on implementation of Human Resource Management practices as per Compliance and Accountability Framework.
New PI 4 4 - No deviation
1.2 Number of reports on auxiliary services produced as per legislative framework to ensure conducive working environment.
New PI 4 4 - No deviation
1.3 Number of ICT implemented projects in accordance with the ICT Governance Framework to enhance technological effi ciencies.
New PI 4 4 - No deviation
2.1 Number of transformation and culture change interventions implemented in accordance with the Provincial Transformation Strategy.
New PI 4 4 - No deviation
2.2 Level of MPAT rating to improve the overall performance of the Department
New PI 3* 3* - No deviation
2.3 Number of evidence based Policies developed/reviewed.
New PI 8 12 4 Over performance
*Management Performance and Assessment Tool (MPAT) rating
Reason for all deviations
PI 2.3 Over performance was caused by the need to strengthen governance in areas where weaknesses were identifi ed resulting in additional policies to be developed and reviewed.
Strategy to overcome areas of under performance
None.
Changes to planned targets
None.
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Sub-Programme 1.4: Financial Management
Objective: To provide effective support services with regard to fi nancial planning and control and supply chain management.
SG 1: SO 1.3 Overall fi nancial, human and technological management support provided.Performance Indicator Actual
Achievement 2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 The level of Financial Management Capability Maturity rating to improve fi nancial management.
New PI 3* 3* - No deviation
*Rating based on the fi nancial management compatibility model
Reason for all deviationsNone.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
Sub-Programme 1.5: Communication Services
Objective: To improve internal and external communications of the Department through written, verbal, visual and electronic media as well as marketing and advertising of the Departmental services.
SG 1: SO 1.2 Overall accountability, integration and implementation of strategy provided.Performance Indicator Actual
Achievement 2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of projects implemented in accordance with the Communication plan.
New PI 4 4 - No deviation
1.2 Number of projects implemented in accordance with the Customer Care Plan.
New PI 2 2 - No deviation
1.3 Number of quality assurance assessments conducted to improve business processes.
New PI 8 8 - No deviation
Reason for all deviationsNone.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
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Linking performance with budgets
The Programme has spent 99.9% of its budget to achieve all its planned performance targets (see the table below).
Sub- Programme Name: 2014/2015 2013/2014Final
Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
FinalAppropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’0001.1 Offi ce of the MEC 12 836 12 681 155 12 443 12 458 (15)1.2 Senior Management 61 991 62 069 (78) 30 726 28 308 2 4191.3 Corporate services 188 071 187 895 176 180 306 184 768 (4 462)1.4 Financial Management 148 391 148 416 (25) 157 875 156 605 1 2701.5 Communication
services 6 896 6 837 59 6 690 6 559 132
TOTAL 418 185 417 898 287 388 042 388 698 (656)
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4.2 Programme 2: Sustainable Resource Management
Objective: To provide agricultural support services to farmers in order to ensure sustainable development and management of agricultural resources.
List of Sub programmes
Sub-Programme 2.1: Engineering Services.•
Sub-Programme 2.2: Land Care. •
Sub-Programme 2.3: Land Use Management.•
Sub-Programme 2.4: Disaster Management.•
List of strategic objectives
SO 2.1 • Improved livestock production.
SO 2.2 • Increased crop production.
Sub-Programme 2.1: Engineering Services
Objective: To provide engineering support (planning, development, monitoring and evaluation) with regard to irrigation technology, on-farm mechanization, value adding, farm structures, resource conservation management, operation and maintenance of farm equipment, machinery, tools and implements solutions.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of agricultural engineering advisory reports prepared to provide information to clients for informed decision making on the most suitable type of infrastructure.
100 65 87 22 Over-performance
1.2 Number of designs with specifi cations for agricultural engineering solutions provided for infrastructure, mechanization and appropriate technology applications.
103 70 101 31 Over-performance
1.3 Number of fi nal certifi cates issued for infrastructure constructed according to specifi cations.
91 60 78 18 Over-performance
1.4 Number of clients provided with engineering advice during offi cial visits to enable clients to operate and maintain infrastructure machinery or equipment.
1 205 695 1 123 428 Over-performance
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Reasons for all deviationsPI 1.1 Over performance was due to requests received from other entities such as local municipalities and other departments.
PI 1.2 Over performance was attributed to additional needs that came from the design of infrastructure projects for 2015/16.
PI 1.3 Over performance was as a result of more infrastructure projects completed earlier than anticipated allowing space for additional projects to be implemented and fi nalised thus triggering issuing of additional certifi cates.
PI 1.4 Over performance was as a result of the additional demand for advice on tractor and implement maintenance and repairs due to increased hectares to be ploughed.
Strategy to overcome areas of under performance
None.
Changes to planned targets
None.
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Sub-Programme 2.2: Land Care
Objective: To promote the sustainable use and management of natural agricultural resources.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of awareness campaigns conducted on Land Care to promote conservation of natural resources.
19 18 17 (1) Under-performance
1.2 Number of capacity building exercises conducted within approved Land Care projects to empower benefi ciaries/ organised structures to implement conservation measures for natural resources.
27 20 21 1 Over-performance
1.3 Number of farm land hectares improved through conservation measures to restore and/increase production capacity.
6 529 5 592 3 616 (1 976) Under-performance
1.4 Number of benefi ciaries adopting practicing sustainable production technologies and practices for improved livelihoods.
1 175 919 872 (47) Under-performance
1.5 Number of green jobs created through Land Care to provide income though green economy initiatives.
4 208 1 425 1 933 508 Over-performance
Reasons for all deviationsPI 1.1 Under-performance was caused by the delay in the approval of provincial land care business plan caused the delay in one awareness campaign which could not be concluded.
PI 1.2 Over-performance was attributed to a special request from a local municipality to conduct one capacity building exercise.
PI 1.3 Under-performance was due to the fact that procurement processes started late because of the late approval of the business plan which led to less number of hectares improved than planned.
PI 1.4 Under performance was caused by fewer benefi ciaries adopting sustainable production technologies because of the delays in commencement which in turn were delays in the approval of the business plan.
PI 1.5 Over-performance was due to the labour intensive nature of projects that were implemented.
Strategy to overcome areas of under performanceApproval of Land Care business plan to access grant funding and implementation of Land Care projects will be facilitated on time.
Changes to planned targetsNone.
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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Sub-Programme 2.3: Land Use Management
Objective: To promote the implementation of sustainable use and management of natural agricultural resources through regulated Land Use (Act 43 of 1983 and Act 70 of 1970).
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of agricultural land hectares verifi ed, (land use for planning and development purposes.
300 247 300 247 302 167 1 920 Over-performance
1.2 Number of agricultural land and boundary disputes resolved.
94 94 72 (22) Under-performance
1.3 Number of requests received for demarcation of sites/arable lands for developmental purposes in rural areas.
New PI 790 1 435 645 Over-performance
1.4 Number of recommendations made for subdivision /rezoning/ change of agricultural land use to protect high value agricultural land.
9 9 9 - No deviation
1.5 Number of assessments of land for alternative/diverse agricultural uses to benefi t farmers.
108 50 115 65 Over-performance
1.6 Number of land use plans developed for sustainable land use management for agricultural land.
6 6 6 - No deviation
1.7 Number of farm plans completed to outline planned farming enterprises based on available resources.
New PI 60 95 35 Over-performance
Reasons for all deviationsPI 1.1 Over-performance was caused by more requests were received for verifi cation of land than what was planned.
PI 1.2 Under-performance was caused by the fact that during the 2014/15 fi nancial year there were fewer boundary disputes as compared to the previous fi nancial years.
PI 1.3 Over-performance was caused by the fact that Department received more requests for rezoning due to the province benefi ting from renewable energy projects such as solar and wind farms.
PI 1.5 Over-performance was caused by the expansion of the cropping programme which resulted in more land assessments than what was planned.
PI 1.7 Over-performance was attributed to more infrastructure projects causing more farm plans to be done.
Strategy to overcome areas of under performanceThe Department will work closely with DRDLR to resolve all boundary disputes in the Province.
Changes to planned targetsNone.
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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Sub-Programme 2.4: Disaster Risk ManagementObjective: To provide support service to clients with regards to agricultural disaster risk management.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of early warning advisory reports issued and disseminated for planning for adverse weather conditions.
12 12 12 - No deviation
1.2 Number of disaster relief schemes managed for assistance to disaster stricken farmers.
4 2 1 (1) Under-performance
Reasons for all deviationsPI 1.2 Disaster schemes depend on the occurrence of natural disaster incidences and approval by the National Government. There were less natural disasters than originally anticipated.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
Linking performance with budgetsThe programme achieved 13 out of the 18 performance targets during the fi nancial year. The under expenditure was due to poor performance by a contractor at the Vet Clinic, leading to less fees payable to the Project Manager on the same structure. Challenges with regards to the Ncera pipeline construction also led to less payment to project managers.
Sub- Programme Name: 2014/2015 2013/2014Final
Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
FinalAppropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’0002.1 Engineering
Services 67 742 63 980 3 762 63 977 62 244 1 733
2.2 Land Care 11 853 10 992 861 16 645 15 177 1 4682.3 Land Use
Management 48 961 49 629 (668) 62 530 61 770 760
2.4 Disaster Risk Management 2 982 2 937 45 2 990 2 936 54
TOTAL 131 538 127 538 4 000 146 142 142 127 4 015
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
Vibrant, equitable, sustainable rural communities and food security for all
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4.3 Programme 3: Farmer Support Development Objective: To provide support to farmers through agricultural development programmes.
List of sub programmes
Sub-Programme 3.1: Farmer Settlement and Development.• Sub-Programme 3.2: Extension and Advisory Services.• Sub-Programme 3.3: Food Security.•
List of strategic objectives
SO 2.1 • Improved livestock production.SO 2.2 • Increased crop production.
Sub-Programme 3.1: Farmer Settlement and Development
Objective: To facilitate, coordinate and provide support to small holder and commercial farmers through sustainable agricultural development within agrarian reform initiatives.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of farm assessment reports completed to determine the suitability of a production area for agricultural purposes.
19 14 25 11 Over-performance
1.2 Number of smallholder farmers supported with infrastructure and/or agricultural inputs to increase sustainable production.
972 660 915 255 Over-performance
1.3 Number of agricultural infrastructure development projects completed that contribute to increased agricultural production.
50 50 54 4 Over-performance
1.4 Number of hectares of existing irrigation system revitalized to increase production.
150 150 150 - No deviation
1.5 Number of mechanization units supported to increase productivity of crop and livestock enterprises.
72 48 52 4 Over-performance
1.6 Number of jobs created. 964 350 456 106 Over-performance
Reasons for all deviations
PI 1.1 Over-performance was due to additional requests for farm assessments. PI 1.2 Over-performance was attributed to more farmers joining the benefi ciary groups that were supported through infrastructural projects. PI 1.3 Over-performance was caused by the cost of some infrastructural projects that were less than anticipated as a result the Department was able to build additional infrastructure projects.
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
Vibrant, equitable, sustainable rural communities and food security for all
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39
PI 1.4 Over-performance was due to four additional mechanisation units were procured due to the need to increase mechanization capacity.PI 1.5 Over-performance was due to the labour intensive nature of projects that were implemented.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
Sub-Programme 3.2: Extension and Advisory Services
Objective: To provide extension and advisory services to farmers.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of agricultural demonstrations facilitated to practically educate farmers on sustainable agricultural production methods.
1 169 851 1 193 342 Over-performance
1.2 Number of functional commodity groups supported with technical business advice to enhance farming outputs.
2 515 28 28 - No deviation
1.3 Number of farmer’s days held to create a platform for the dissemination/exchange of information on agricultural practises, technology and products.
542 535 572 37 Over-performance
1.4 Number of implemented projects in accordance with the Extension Recovery Plan (ERP).
4 4 4 - No deviation
Reasons for all deviations
PI 1.1 Over-performance in agricultural demonstrations was a result of the expansion of area of cropping that has led to increased demand for practical demonstration of agricultural production methods and technologies especially on yield estimation.
PI 1.3 Over-performance was attributed to the expansion of areas of cropping that has led to increased interest and demand from farmers.
Strategy to overcome areas of under performanceNone
Changes to planned targetsNone
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
Vibrant, equitable, sustainable rural communities and food security for all
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Sub-Programme 3.3: Food Security
Objective: To support, advise and coordinate the implementation of pillar one of the Integrated Food Security Strategy of South Africa (IFSS).
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of verifi ed food insecure households supported with production inputs to promote household food security.
11 532 4 703 13 634 8 931 Over-performance
1.2 Number of food security status reports compiled to assess the contribution of agriculture in ensuring food security.
4 4 4 - No deviation
1.3 Number of hectares planted to fi eld crops. 12 888 17 000 18 068.5 1 068.5 Over-
performance
Reasons for all deviationsPI 1.1 Over – performance was due to additional assessments that were required based on identifi ed need.
PI 1.3 Over-performance was due to the fact that some farmers required minimum support from the Department due to the favourable condition of their land for ploughing and released resources for allocation to additional farmers which then increased the area of hectares to be ploughed.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
Linking performance with budgets
The programmes achieved all its performance targets and spent 99 % of its budget.
Sub- Programme Name:
2014/2015 2013/2014Final
AppropriationR’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
FinalAppropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’0003.1 Farmer
Settlement 61 675 54 215 7 460 80 836 77 779 3 057
3.2 Extension and Advisory services 357 090 360 553 (3 463) 351 733 358 127 (6 394)
3.3 Food Security 151 926 149 598 2 328 120 126 117 754 2 372TOTAL 570 691 564 366 6 325 552 695 553 660 (965)
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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4.4 Programme 4: Veterinary ServicesObjective: To provide veterinary services to clients in order to ensure healthy animals, safe animal products and welfare of people of South Africa.
List of Sub-ProgrammeSub-Programme 4.1: Animal Health.• Sub-Programme 4.2: Export Control.• Sub-Programme 4.3: Veterinary Public Health.• Sub-Programme 4.4: Veterinary Laboratory Services.•
List of strategic Objectives
SO 2.1 • Improved livestock production.
Sub-Programme 4.1: Animal HealthObjective: To facilitate and provide animal disease control services in order to protect the animal and human population against identifi ed infectious, zoonotic and/ or economic diseases, through the implementation of the Animal Diseases Act (Act 35 of 1984) and primary animal health programme/projects.
SG 2: SO 2.1 Improved livestock production.Performance Indicator Actual
Achievement 2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of animals vaccinated against controlled animal diseases according to Animal Disease Act (Act 35 of 1984).
1 510 999 1 510 999 1 674 354 163 355 Over-performance
1.2 Number of primary animal health care (PAHC) interactions held to minimize the impact of disease occurrence.
3 229 3 229 3 767 538 Over-performance
1.3 Number of offi cial veterinary movement documents issued to facilitate movement of animals and animal products for disease control purposes.
1 144 1 144 2 394 1 250 Over-performance
1.4 Number of animals sampled/ tested for disease surveillance purposes.
197 673 197 673 279 793 82 120 Over-performance
1.5 Number of animal inspections for regulatory purposes to assess health status.
807 807 124 (683) Under-performance
1.6 Number of treatments applied to sheep for the control of sheep scab in order to improve the quality and quantity of the wool clip.
7 048 841 7 048 841 7 690 803 641 962 Over-performance
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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SG 2: SO 2.1 Improved livestock production.Performance Indicator Actual
Achievement 2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.7 Number of treatments applied to animals for external parasite control.
2 426 707 2 426 707 4 171 436 1 744 729 Over-performance
Reasons for all deviations
PI 1.1 Over-performance was caused by outbreak of rabies experienced during the period under review resulting in more dogs and cats (pets) vaccinated against rabies.
PI 1.2 Over-performance was caused by warm weather conditions and high rainfall conducive for multiplication of disease carriers such as insects and internal parasites which resulted in disease outbreaks thus increasing the demand for clinical intervention.
PI 1.3 Over-performance was due to an increase in the buffalo relocation and pig movements requests thus increasing the movement permits issued.
PI1.4 Over-performance was caused by tuberculosis and brucellosis testing that was intensifi ed in the communal areas and the uptake by farmers increased thus leading to more animals tested.
PI 1.5 The target had to be revised as the past year’s performance baseline included activities that were later defi ned as not regulatory in nature. This is to comply to export requirements and is, therefore, not necessary for ordinary animal diseases surveillance.
PI1.6 Over-performance was due to the improved yields of wool clip and the economic benefi t that accrued to farmers, more farmers encouraged to present their sheep for treatment including the newly born lambs which in the past were not freely presented for treatment.
PI 1.7 Over-performance was caused by high rainfall that has increased the tick activity and thus tick burden on the animals necessitating increased treatments to reduce the incidence of tick-borne diseases.
Strategy to overcome areas of under performanceThe performance indicator has been corrected to refl ect the work that must be done on export establishments.
Changes to planned targetsNone.
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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Sub-Programme 4.2: Export Control Objectives: To provide control measures including risk assessment and health certifi cation, in order to facilitate the exportation of animals and animal products.
SG 2: SO 2.1 Improved livestock production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of veterinary export certifi cates issued for the export of animals or animal products.
733 733 730 (3) Under-performance
1.2 Number of export establishments audited for compliance with export standards.
23 23 25 2 Over-performance
1.3 Number of samples collected for residue monitoring at export establishments.
47 47 51 4 Over-performance
1.4 Number of export establishments registered for export purposes.
30 30 55 25 Over-performance
1.5 Number of reports on the development of a rapid response on adverse agricultural incidences and disasters.
1 12 12 - No deviation
1.6 Number of Controlled disease awareness campaigns and visibility sessions facilitated to capacitate the communities, public and staff.
17 10 27 17 Over-performance
1.7 Number of reports on early warning advisories issued and disseminated.
- 12 12 - No deviation
Reasons for all deviations
PI 1.1 Under-performance was caused by the export embargo of ostrich and cloven hooved animals, including game, has resulted in negative deviation.
PI 1.2 Over-performance was as a result of more requests for export approval as well as inspections for annual re-approval for export status
PI 1.3 Over-performance was caused by more samples that were collected at export establishment than originally targeted.
PI 1.4 Over-performance was as a result of increased requests for export registrations as a result of favourable rand - dollar exchange.
PI 1.6 There were more outreach programmes than anticipated.
Strategy to overcome areas of under performanceContinued surveillance for Avian Infl uenza so that export embargo may be lifted.
Changes to planned targetsNone.
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Sub-Programme 4.3: Veterinary Public Health
Objective: To ensure the safety of meat and meat products through the implementation of the Meat Safety Act (Act 40 of 2000), the Animal Diseases Act (Act 35 of 1984) and other relevant legislation.
SG 2: SO 2.1 Improved livestock production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of abattoirs registered as per Meat Safety Act (Act 40 of 2000)
109 104 111 7 Over-performance
1.2 Number of abattoir inspections conducted as per Meat Safety Act (Act 40 of 2000).
850 850 852 2 Over-performance
1.3 Number of inspections to facilities processing animal products and by products.
231 231 291 60 Over-performance
1.4 Number of interactions and investigations on illegal slaughter to respond to Section 7 of the meat Safety Act (40 of 2000).
1 224 1 224 1 300 76 Over-performance
1.5 Number of samples collected to monitor the safety of meat produced at abattoirs as per Meat Safety Act (Act 40 of 2000).
2 632 2 632 3 040 408 Over-performance
Reasons for all deviations
PI 1.1 Over-performance was as a result of spill-over of abattoir registrations from the last quarter of previous fi nancial year.
PI 1.2 Over-performance was due to the need for a follow up inspections to improve compliance PI 1.3 Over-performance was as a result of increased vigilance on meat cutting plants.PI 1.4 Over-performance was as a result of unplanned outbreaks of suspected food poisoning and monitoring of illegal slaughter activities.PI 1.5 Over-performance was a result of follow up sampling because of unreliable test results on monitoring the safety of the meat produced at abattoirs.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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Sub-Programme 4.4: Veterinary Laboratory Services Objective: To render veterinary diagnostic, laboratory and investigative services that will back the control of animal diseases for adherence to hygienic standards and to generate data.
SG 2: SO 2.1 Improved livestock production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of control audit reports for compliance monitoring and quality assurance of laboratories to ISO 17025.
86 86 104 18 Over-performance
1.2 Number of specimen tested for diagnostic purposes.
123 113 123 113 159 287 36 174 Over-performance
1.3 Number of tests performed on all samples submitted to establish the diagnosis.
186 413 186 482 223 036 36 554 Over-performance
Reasons for all deviations
PI 1.1 The over-performance was due to completion of the pending validation reports for Grahamstown and Queenstown laboratories and due to all labs performing more equipment and inter-personnel comparison audits in preparation for SANAS accreditation.
PI 1.2 The over-performance was due to submission of more samples as a result of the continuing Contagious Abortion (CA) sampling during 2014 which sampling has expanded considerably to communal areas which were not adequately covered in the past.
PI 1.3 The over-performance was due to the increased number of tests done in line with the increased number of samples submitted.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
Link performance indicators with the budgets:Program Veterinary Services has spent 100% of its budget and this expenditure is refl ected in the achievement of 20 out of 22 performance targets. The two performance indicators underperformed had minimal effect on expenditure.
Sub- Programme Name: 2014/2015 2013/2014Final
Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
FinalAppropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’0004.1 Animal Health 223 640 223 581 59 218 626 218 135 4914.2 Export Control 5 899 5 689 210 6 110 4 613 1 4974.3 Veterinary Public
Heath 11 815 11 740 75 11 987 11 960 27
4.4 Veterinary Laboratories 13 342 13 686 (344) 11 038 10 700 338
TOTAL 254 696 254 696 - 247 761 245 408 2 353
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4.5 Programme 5: Research and Technology Development Services
Objective: To render expert and needs based research, development and technology transfer services impacting on development objectives.
List sub programmes
Sub- Programme 5.1: Research.•
Sub-Programme 5.2: Technology Transfer Services.•
Sub-Programme 5.3: Infrastructure Services.•
List Strategic Objectives
SO 2.1: • Improved livestock production.
SO 2.2: • Increased crop production.
Sub Programme 5.1: Research
Objective: To conduct, facilitate and coordinate research and to participate in multi-disciplinary development projects.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of research projects implemented which address specifi c agriculture production constraints.
91 67 75 8 Over-performance
1.2 Number of scientifi c papers published on research done on agriculture production addressing production constraints.
3 8 5 (3) Under-performance
1.3 Number of presentations made at scientifi c events done on agriculture production research.
7 15 22 7 Over-performance
1.4 Number of profi ling reports conducted for promotion of sustainable livelihoods in identifi ed areas.
6 4 4 - No deviation
1.5 Number of socio economic models designed to enhance developmental intervention.
1 1 1 - No deviation
1.6 Number of improved livestock introduced for animal genetic improvement of the herd/ fl ock to ensure sustainable food security.
New PI 600 459 (141) Under-performance
1.7 Number of ostriches raised to slaughter weight (90-110 Kg) for local and export markets.
New PI 1 900 6 701 4 801 Over-performance
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.8 Number of small stocks enterprises (poultry and piggery) developed to ensure sustainable food security.
New PI 6 10 4 Over-performance
1.9 Number of community based custom feeding centres supported for value addition.
New PI 8 4 (4) Under-performance
1.10 Number of report on aquaculture production in the province.
New PI 1 1 - No deviation
1.11 Time taken to analyse plant, soil and water samples and provision of results to the clients to make informed decisions (four weeks per client).
4 4 4 - No deviation
1.12 A centralised spatial database developed (repository) to make spatial information accessible to the whole Department.
New PI 1 1 - No deviation
1.13 Number of spatial data produced and distributed to end users for planning purposes.
New PI 75 183 108 Over-performance
Reasons for all deviations
PI 1.1 Over-performance was due to research projects that had to proceed beyond their project cycle in order to explore research issues that emerged during the implementation in order to get conclusive research outcomes.
PI 1.2 Under-performance was due to the longer turnaround time from journal reviewers than what was expected.
PI 1.3 Over-performance was caused by the more research papers being accepted by congress organisers than planned.
PI 1.6 Under-performance was caused by breeding animal prices escalating from the time of planning to the actual procurement and delivery of animals and this lead to fewer animals being bought.
PI 1.7 Over-performance was caused by an increase in the number of farmers participating in the ostrich project and better mentorship resulted in more effi cient management of the birds.
PI 1.8 Over-performance was due to savings from the cattle custom feeding projects were used to support additional pig and poultry projects with feed.
PI 1.9 Under-performance was caused by the fact that the available infrastructure (feed storage inadequate) at the four custom feeding units was not suffi cient to keep feed.
PI 1.13 Over-performance was due to request for reports from the Geographic information Systems (GIS) unit increased mainly due to increased demand from the Cropping Programme and Early Warning Units.
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Strategy to overcome areas of under performance
PI 1.2 Strengthen collaborations with institutions of higher learning and other research institutions to assist in reviewing research papers.
PI 1.6 Work-in closer collaboration with livestock commodity groups in order to obtain quality livestock earlier in the year at reasonable prices.
PI 1.9 Funds to complete the loading facilities and feed storage have been provided for in the 2015/16 fi nancial year.
Changes to planned targetsNone.
Sub-Programme 5.2: Technology Transfer Services
Objective: To disseminate information on research and technology developed to clients.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of presentations made at technology transfer events in order to impart knowledge to stakeholders.
28 12 30 18 Over-performance
1.2 Number of demonstration trials conducted with farmers in order impart knowledge and skills on farming practices.
4 4 5 1 Over-performance
1.3 Number of articles in popular media published or broadcasted to disseminate information.
5 2 2 - No deviation
1.4 Number of information packs developed and disseminated to farmers and the general public.
10 8 8 - No deviation
Reasons for all deviations
PI 1.1 Over-performance was due to existing long-term and new collaborations with international and national research institutions resulted in more presentation delivered.
PI 1.2 Over-performance was attributed to the demand for demonstrations exceeded the planned target due to additional request for maize demonstration from Engcobo.
Strategy to overcome areas of under performanceNone
Changes to planned targetsNone
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Sub-Programme 5.3: Infrastructure Support Services
Objective: To provide and maintain infrastructure facilities for the line function to perform their research and other functions, i.e. experiment farms.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of research infrastructure provided to enhance the implementation of research projects.
7 7 7 - No deviation
1.2 Number of research infrastructure maintained to enhance the implementation of research projects.
7 7 7 - No deviation
Reasons for all deviationsNone.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
Linking performance with budgetsThe program achieved 16 out of 19 of its performance targets and overspent by R580 000 (0.5%) due to CoE backlogs for OSD. The under expenditure on other items were due to savings and did not affect performance.
Sub- Programme Name: 2014/2015 2013/2014Final
Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
FinalAppropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’0005.1 Research 100 441 99 605 836 111 328 112 903 (1 575)5.2 Technology
Transfer Services
4 999 4 809 190 5 166 5 088 78
5.3 Infrastructure Support Services
1 750 3 356 (1 606) 1 332 1 018 314
TOTAL 107190 107 770 (580) 117 826 119 009 (1 183)
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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4.6 Programme 6: Agricultural Economics Services
Objective: To provide timely and relevant agricultural economic services to the sector in support of sustainable agricultural and agri-business development to increase economic growth.
List of sub programmes
Sub-Programme 6.1: Agri-business support and development.• Sub-Programme 6.2: Macroeconomic support.•
List strategic objectives
SO 2.1 • Improved livestock production.SO 2.2 • Increased crop production.
Sub-Programme 6.1: Agri-Business Support and DevelopmentObjective: To provide Agric-business support through entrepreneurial development, marketing services, value adding, production and resource economics. SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of Agri-Businesses supported with agricultural economic services to access markets.
386 164 378 214 Over-performance
1.2 Number of clients supported with agricultural economic advice to improve production effi ciency.
2 114 1 330 3 180 1 850 Over-performance
1.3 Number of agricultural economic studies conducted to inform decision-making for business development.
469 475 478 3 Over-performance
Reasons for all deviations
PI 1.1 Over-performance is due to many farmers that were assisted with packaging material for market readiness during the harvesting period for the cropping program. The “Farm-Together” training program was done in collaboration with Department of Agriculture, Forestry & Fisheries (DAFF) to capacitate more cooperatives than anticipated. Livestock farmers were assisted to sell their livestock before winter season.
PI 1.2 Over-performance is caused by the collaboration and partnership with Perishable Product Export Control Board and National Agricultural Marketing Council which resulted in more clients supported than anticipated.
PI 1.3 Over-performance is caused by more requests for economic advice than anticipated.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
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Sub-Programme 6.2: Macroeconomics SupportObjective: To provide macroeconomic and statistical information on the performance of the agricultural sector in order to inform planning and decision making.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of requests responded to on macro-economic information, to assist clients to make informed economic planning and decisions on or beyond farm gate.
36 30 46 16 Over-performance
1.2 Number of macroeconomic reports developed to assist clients to make informed economic decisions on or beyond farm gate for planning purposes.
46 40 39 (1) Under-performance
Reasons for all deviations
PI 1.1 Over-performance is attributed to commodity approach that resulted in more interaction and requests from the following commodity groups: horticulture, fi eld crops, aquaculture, industrial crops and apiculture.
PI 1.2 Under-performance is due to one report that was not completed on time due to insuffi cient statistical and macro-economic data.
Strategy to overcome areas of under performance
The Department will acquire QUANTEC software package, which is an up to date statistical and macro-economic database package.
Changes to planned targetsNone.
Linking performance with budgets
The program achieved 4 out of 5 of its performance targets and spent 99.6% of its budget. The output that was not fully achieved had minimal fi nancial impact.
2014/2015 2013/2014Final Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
FinalAppropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’0006.1 Agri-Business
Support and Development
20 207 20 026 181 20 727 18 350 2 377
6.2 Macroeconomics Support
25 034 25 047 (13) 24 659 23 474 1 185
TOTAL 45 241 45 073 168 45 386 41 824 3 562
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4.7 Programme 7: Structured Agricultural Education and TrainingObjective: To facilitate and provide agricultural education and training in line with the Agricultural Education and Training Strategy to all participants in the agricultural sector in order to establish a knowledgeable, prosperous and competitive sector. List Sub-Programmes
Sub-Programme 7.1: Higher Education and Training.•
Sub-Programme 7.2: Further Education and Training (FET)• .
Strategic Objectives
SO 2.1 • Improved livestock production.
SO 2.2 • Increased crop production.
Sub-Programme 7.1: Higher Education and Training
Objective: To provide accredited higher education and training from NQF Levels 5 and above to anybody who desires to study in agriculture and related fi elds.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of students registered into a Higher Education and Training(HET) qualifi cations.
373 373 421 48 Over-performance
1.2 Number of students completing Higher Education and Training (HET) qualifi cations.
86 86 69 (17) Under-performance
Reasons for all deviations
PI1.1 Over-performance was due to the new student intake at Tsolo College for the Animal Health course.PI1.2 Underperformance was due to some students not being able to meet the minimum passing standard at Fort Cox.
Strategy to overcome areas of under performance1.2 Assessing students’ needs and developing them into tutorial materials to reduce the failure rate by students.
Changes to planned targetsNone.
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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Sub-Programme 7.2: Further Education and Training (FET)Objective: To provide formal and non-formal training on NQF levels 1 to 4 through Further Education and Training (FET) structured education and training programmes to all interested agricultural role players.
SG 2: SO 2.1 Improved livestock production.SG 2: SO 2.2 Increased crop production.
Performance Indicator Actual Achievement
2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned target to
actual achievement for 2014/2015
Comment on deviations
1.1 Number of learners completing accredited skills programmes towards qualifi cation based on SAQA Standards.
310 310 424 114 Over-performance
1.2 Number of learners completing non-accredited short courses to improve their skills level.
1 325 1 325 2 168 843 Over-performance
1.3 Number of infrastructure projects in Agricultural Colleges developed to improve the farmer training capacity.
2 4 4 - No deviation
1.4 Number of Educators capacitated in agricultural science related fi elds to improve their understanding of the sector needs.
New PI 80 70 (10) Under-performance
1.5 Number of school going learners exposed to various fi elds in the agriculture and rural development sector in order to attract new entrants to the sectors.
New PI 120 1 045 925 Over-performance
1.6 Number of Farm-Workers attending -accredited training to develop skilled Farm-Workers.
125 70 70 - No deviation
1.7 Number of Farm-Workers completing non-accredited training to develop skilled Farm-Workers.
New PI 100 114 14 Over-performance
Reasons for all deviationsPI1.1 The over-performance was as a result of more trainees being attended to because other departments and municipalities funded additional participants to attend the existing courses.
PI1.2 The over-performance was as a result of more trainees being attended to because other departments and municipalities funded additional participants to attend the existing courses.
PI 1.4 The program planned for 80 educators for the fi nancial year in question but Department of Education released only 70 due unforeseen commitments.
PI 1.5 More learners were able to attend due to specifi c Career Days and an increased effort by the Department to encourage agriculture as a career.
PI 1.7 There was an increased demand for farm-worker training and the Department managed to train more workers than planned.
Strategy to overcome areas of under performanceBilateral discussion with Department of Education will be undertaken to emphasise the opportunity for educators to be trained in agriculture.
Changes to planned targets: None.
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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Linking performance with budgetsThe programme achieved 7 out of 9 of its performance targets. The underexpenditure is due to infrastructure projects that were not completed due to contractors that withdrew and lack of capacity within the Department to deal with residential infrastructure.
Sub- Programme Name: 2014/2015 2013/2014Final
Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
FinalAppropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’0007.1 Higher Education
and Training 39 520 39 520 - 31 282 31 282 -
7.2 Further Education and Training
84 439 77 659 6 780 79 947 76 132 3 815
TOTAL 123 959 117 179 6 780 111 229 107 114 3 815
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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Vibrant, equitable, sustainable rural communities and food security for all
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4.8 Programme 8: Rural Development CoordinationObjective: To develop, plan, and monitor rural development coordination of the various departments and organize social facilitation in relation to community priorities and organizational structures.
Sub-programme 8.1: Development planning and monitoring.• Sub-programme 8.2: Social Facilitation.•
List the strategic objectives
SO 3.1 • Rural development initiatives facilitated and coordinated.
Sub-Programme 8.1: Development Planning and MonitoringObjective: To initiate, plan, and monitor development in specifi c rural areas across the three spheres of government in order to address needs that have been identifi ed.
SG 3: SO 3.1 Rural development initiatives facilitated and coordinated.Performance Indicator Actual
Achievement 2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for
2014/2015
Comment on deviations
1.1 Number of rural development projects supported through the ECRDA.
New PI 6 6 - No deviation
Reasons for all deviationsNone.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
Sub- Programme 8.2 Social FacilitationObjective: To engage communities on priorities and to institutionalize and support community organizational structures.
SG 3: SO 3.1 Rural development initiatives facilitated and coordinated.Performance Indicator Actual
Achievement 2013/2014
Annual Target
2014/2015
Actual Achievement
2014/2015
Deviation from planned
target to actual achievement for 2014/2015
Comment on deviations
1.1 Number of community capacity building sessions in support of rural development.
New PI 4 4 - No deviation
1.2 Number of stakeholders coordinated plans for rural development.
New PI 4 4 -No deviation
1.3 Number of innovations created in support of rural development.
New PI 4 4 -No deviation
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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Reasons for all deviationsNone.
Strategy to overcome areas of under performanceNone.
Changes to planned targetsNone.
Linking performance with budgetsThe Programme has spent 99,7% of its budget to achieve all its planned performance targets for this fi nancial year (see the table below).
Sub- Programme Name: 2014/15 2013/2014Final
Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
FinalAppropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’0008.1 Development
planning and monitoring
200 514 200 514 - 124 003 124 003 -
8.2 Social Facilitation 18 464 17 734 730 9 697 9 060 637TOTAL 218 978 218 248 730 133 700 133 063 637
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
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Programme Expenditure
Programme Description 2014/15
R’000
2013/14
R’000Final
AppropriationActual
ExpenditureVariance Final
AppropriationActual
ExpenditureVariance
Administration 418 185 417 898 287 388 042 388 698 (656)
Sustainable Resource Management 131 538 127 538 4 000 146 142 142 127 4 015
Farmer Support and Development 570 691 564 366 6 325 552 695 553 660 (965)
Veterinary Services 254 696 254 696 - 247 761 245 408 2 353
Technology Research and Development 107 190 107 770 (580) 117 826 119 009 (1 183)
Agricultural Economics 45 241 45 073 168 45 386 41 824 3 562
Structured Agricultural Training 123 959 117 179 6 780 111 229 107 414 3 815
Rural Development Coordination 218 978 218 248 730 133 700 133 063 637
TOTALS 1 870 478 1 852 768 17 710 1 742 781 731 203 78
TRANSFER PAYMENTS5. 5.1 Transfer payments to Public Entities
The strategic plan, annual performance plan and budget documents of the entity are approved by the Department prior submission to the Provincial Treasury. This ensures that the entities activities and operations are in line with the mandate as prescribed by the Department. The entity reports to the department on a quarterly basis against their Annual Performance Plan, which are interrogated in terms of performance indicators and fi nancial projections. The Chief Executive Offi cer attends top management meetings therefore all issues identifi ed in the quarterly report are discussed in these meetings, which are chaired by the Head of Department.
The Department has scheduled the transferring of the subsidy to the entity over four quarters. Before each transfer is a made certain requirements must be confi rmed to have been met by the entity. Before any transfer can be made, the Service Level Agreement (SLA) between the entity and the Department must be signed. This is where the expected deliverables by the entity are defi ned and agreed to by the two parties. Thereafter the request letters for the fi rst and the second quarter tranches must be accompanied by the Compliance Certifi cate wherein the entity commits to adhering to the terms of the SLA in spending the transfer requested, and the draft Annual Financial Statement (AFS). The request letters for the third and fourth quarter tranches are accompanied by the Compliance Certifi cate and audited AFS.
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Name of Public Entity
Services rendered by the public entity
Amount transferred
to the public entity R’000
Amount spent by the public entity
R’000
Achievements of the public entity
ECRDA Effective co-ordination and implementation of Agrarian-driven High Impact Priority Programmes (HIPPs).
Annual Transfer:
210 779
Annual Spent:
210 779
Establishment of four Red Hub Sites.•
Planting of 3800ha of land for feedstock supply to • milling plants.
Mechanisation units established in four sites.•
Construction of infrastructure (Silos, Sheds and • weighbridges).
Employment and Training of employees.•
Marketing infrastructure support of livestock in rural • areas (Auction Pens.
840 ha of new forestry plantation undertaken and • creation of 390 jobs.
Promote • entrepreneurship through rural fi nance and support programmes.
Loans granted by the Agency.•
Legal entities (Co-operatives) established in rural • communities where projects are implemented.
Develop, • institutionalise and sustain an effective, capable and fi t-for-purpose organisation including best-in-class project management, programme/commodity based targeted research and innovation driven Agency.
Staff capacity has been fi lled to almost 80% of the • approved organogram.
Training of employees has been undertaken on • critical areas.
Leverage strategic • partnerships towards implementation and funding of rural
development initiatives.
Strategic partnerships have been achieved with the • public sectors parties, viz
Offi ce of the Premier.−
Indibano Rural development.−
Develop sustainable, • localised and institutionalised framework.
Two clusters have been established in the year • under review.
5.2 Transfer payments to all organisations other than public entitiesThe department also provides funding to support operations of the Fort Cox College. The same procedure applied to public entity when transferring funds is also applied to Fort Cox. The Principal of the institution also attends top management meetings of the Department and assists to ensure that all challenges experienced or issues identifi ed in the quarterly reports are dealt with timeously.
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The table below refl ects the transfer payments made to public entities for the period 1 April 2014 to 31 March 2015
Name of transferee
Type of organisation
Purpose for which the
funds were used
Compliance with s 38 (1) (j)
of the PFMA
Amount transferred
(R’000)
Amount spent by the entity
(R’000)
Reasons for the funds unspent by the entity
Fort Cox College
Agricultural College
Staff salaries Yes 39 520 39 520 Funds all spent.
The table below refl ects the transfer payments which were budgeted for in the period 1 April 2014 to 31 March 2015, but no transfer payments were made.
Name of transferee
Purpose for which the funds were to be used
Amount budgeted for (R’000)
Amount transferred
(R’000)
Reasons why funds were not transferred
N/A
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CONDITIONAL GRANTS6. 6.1 Conditional grants and earmarked funds paid
Conditional Grant Comprehensive Agricultural Support Grant:
Department who transferred the grant
Department of Agriculture, Forestry and Fisheries
Purpose of the grant To provide effective agricultural support services, promote and facilitate agricultural • development by targeting benefi ciaries of land restitution and redistribution, and other previously disadvantaged producers who have acquired land through private means, and are engaged in value-adding enterprises domestically, or involved in export.
To address damage to infrastructure caused by fl oods.• Expected outputs of the grant
Farmer supported per category (subsistence, smallholder and black commercial farmers)•
Category of farmers BreakdownMale Female Total
Smallholder 608 572 1 180Subsistence 2512 1776 4288Commercial 61 93 154Grand total 311 2 441 5 622
Youth, women and farmers with disabilities supported through CASP benefi ciaries planned to • be supported include 2 441 women, 63 youth and 50 disabled persons.
On-and-off farm infrastructure provided and repaired.• Output description/variable
Specifi c activities/deliverable
Planned Output (Number of projects)
Number: Irrigation/water infrastructures
Number: Irrigation systems 4Number: Boreholes 4
Number: Livestock Production Infrastructures
Number: Stock handling facility e.g. Crush Pens structures
6
Number: Dairy structures 1Number: Stock water systems/structures 14Number: Goat/Sheep housing structures 1Number: Dipping tanks (sprayrace dip with handling facility)
12
Number: Piggery structures 2Number: Poultry structures/ system 7
On/off infrastructure (Horticulture and Pasture)
Number: Orchard infrastructure 1Number: Hydroponics infrastructures
2Fencing Number: Fencing material for community
fencing/ trellis11
Marketing/Agro-processing infrastructure
Number: Processing infrastructure ( Abattoir ) 1
Marketing/ Agri-Business processing
Number: Storage houses/facilities 1Business plan development 2Number: Shearing sheds / farm sheds or shelter structures
9
FIELD CROPPING FIELD CROPPING ( 6 Districts + Irrigation scheme)
7
TOTALS 85Benefi ciaries of CASP trained on farming methods•
Category of farmers BreakdownMale Female Total
Smallholder 104 53 157Subsistence 1,021 300 1,321Commercial 0 0 0Grand total 1,125 353 1,478
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Benefi ciaries of CASP accessing markets.• Jobs created : 692 jobs projected to be created.• Extension personnel recruited and maintained in the system : 117 planned to be recruited and • maintained.Extension offi cers upgrading qualifi cations at various institutions: 242 Extension staff planned • to be active in upgrading qualifi cations.Successful partnerships created to support farmers : 4 partnerships to be maintained.• Hectares of land ploughed and planted: CASP funds of R 61 527 000 together with Ilima • Letsema grant & R 46 062 000 and R 38 000 000 equitable share targeted planting of 17 200 ha to fi eld crops.
Actual outputs achieved Farmer supported per category (subsistence, smallholder and black commercial farmers)•
Category of farmers BreakdownMale Female Total
Smallholder 104 53 157Subsistence 1,021 300 1,321Commercial 0 0 0Grand total 1,125 353 1,478
Youth, women and farmers with disabilities supported through CASP: benefi ciaries supported • include 353 women.
On-and-off farm infrastructure provided and repaired.• Output description/
variableSpecifi c activities/
deliverablePlanned Output
(Number of
projects)
project implementation progress
<50 % 50%-99% 100%(completed)
Number: Irrigation/water infrastructures
Number: Irrigation systems 4 - 1 3Number: Boreholes 4 1 2 1
Number: Livestock Production Infrastructures
Number: Stock handling facility e.g. Crush Pens structures 6 1 5Number: Dairy structures 1 1Number: Stock water systems/structures 14 1 13Number: Goat/Sheep housing structures 1 1Number: Dipping tanks (sprayrace dip with handling facility) 12 1 1 10Number: Piggery structures 2 2
Number: Poultry structures/ system 7 4 2 1
On/off infrastructure (Horticulture and Pasture)
Number: Orchard infrastructure 1 1
Number: Hydroponics infrastructures 2 1 1
Fencing Number: Fencing material for community fencing/ trellis
11 2 9
Marketing/Agro-processing infrastructure
Number: Processing infrastructure ( Abattoir )
1 1
Marketing/ Agri-Business processing
Number: Storage houses/facilities 1 1
Business plan development 2 2
Number: Shearing sheds / farm sheds or shelter structures
9 1 8
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Actual outputs achieved Marketing/ Agri-Business processing
Number: Storage houses/facilities 1 1
Business plan development 2 2
Number: Shearing sheds / farm sheds or shelter structures
9 1 8
FIELD CROPPING FIELD CROPPING (6 Districts + Irrigation scheme)
7 1 6
TOTALS 85 11 12 62Benefi ciaries of CASP trained on farming methods•
CategoryNumber of Benefi ciaries per level of training
TOTALSCredit Bearing courses non-credit bearing courses
Farmers 424 2168 2592Farm workers 70 114 184TOTALS 494 2282 2776
Benefi ciaries of CASP accessing markets: 815 benefi ciaries accessed markets.•
Jobs created: 1026 jobs created.•
Extension personnel recruited and maintained in the system: 43 Extension personnel • recruited.
Extension offi cers upgrading qualifi cations at various institutions: Not funded in 2014/15.•
Successful partnerships created to support farmers: 4 partnerships maintained.•
Hectares of land ploughed and planted : An area of 18 069ha ploughed and planted.• Amount per amended DORA
R 229 143 000
Amount transferred R 229 143 000Reasons if amount as per DORA not transferred
N/A
Amount spent by the department
R 214 309 000
Reasons for the funds unspent
Poor capacity of some contractors challenged by cash fl ow and credit worthiness exacerbated • by their use of unreliable suppliers that over-commit and leave contactors without materials.
Administrative disruptions and management changes at Fort Cox which delayed the initiation • of procurements in 2014/15 and resulted in insuffi cient time for work to be completed.
Contractors abandoning site at Tsolo College and poor contract management by Dept Roads • & Public works prevented timeous remedial action.
Under spending within farmer training allocation due to late start of implementation in • November after budget re-appropriated from capital to goods and services. Budget initially loaded under capital infrastructure for completion of farmer training centre which was not approved by national assessment panel.
contingency funds (10%) within project commitments experienced minim use and these • funds were de-committed following fi nal payments and refl ect as unspent. Little use of the committed retention funds (5%) to remain unspent.
Late completion of some projects was caused by 1.) an unusually heavy spring rain period • that caused construction to cease for 2-3 weeks which delayed completion times and 2.) late completion of many projects resulted in poor levels of use of retention funds (5%) that remained un-spent.
Monitoring mechanism by the transferring department
Monthly and quarterly reports.
Site visits.
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Expanded public works programme grant:The table below details the conditional grants and earmarked funds received during the period 1 April 2014 to 31 March 2015
Department who transferred the grant Department of Public Works
Purpose of the grant To incentivize provincial departments to expand work creation efforts through the use of labor intensive delivery methods in the following identifi ed focus areas, in compliance with the EPWP guidelines:
- road maintenance and the maintenance of buildings
- low traffi c volume roads and rural roads
- other economic and social infrastructure
- tourism and cultural industries
- sustainable land based livelihoods
Expected outputs of the grant Improved quality of life of poor people and increased social stability through engaging the previously unemployed in paid and productive activities.
Reduced levels of poverty.
Contribute towards increased levels of employment.
Improved opportunities for sustainable work through experience and learning gained.
Actual outputs achieved 456 Jobs
Amount per amended DORA (R’000) 2 681
Amount received (R’000) 2 681
Reasons if amount as per DORA was not received
N/A
Amount spent by the Department (R’000) 2 486
Reasons for the funds unspent by the entity
The under spending resulted from late processing of fi nal payment of R 195 000 where a misunderstanding in the administrative process, at a time of congested payments, delayed processing of fi nal payment.
Reasons for deviations on performance N/A
Measures taken to improve performance N/A
Monitoring mechanism by the receiving department
Quarterly reports.
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ILIMA / LETSEMA CONDITIONAL GRANT:
Department who transferred the grant Department of Agriculture, Forestry and Fisheries
Purpose of the grant To assist vulnerable South African farming communities achieve an increase in agricultural production and increased income, invest in infrastructure that unlocks agricultural production and supply government markets with agricultural products thus releasing them from the poverty trap.
Expected outputs of the grant Increased production effi ciency.Increased agricultural production at both household and national level Improved farm income.Maximized job opportunities and reduced poverty.Increased number of households assisted to cope with the escalating food prices.
Actual outputs 068.5ha18
Amount per amended DORA (R’000) 46 062
Amount received (R’000) 46 062
Reasons if amount as per DORA was not received
N/A
Amount spent by the Department (R’000)
45 603
Reasons for the funds unspent by the entity
Since the under-spending is less than 1% it is not considered to be a signifi cant portion. The under-spending is due to small amounts of residual unspent funds remaining dispersed across the District cost centres following all invoices being processed for payment.
Reasons for deviations on performance
No deviation on performance.
Measures taken to improve performance
N/A
Monitoring mechanism by the receiving department
Weekly, monthly, quarterly and annual reports.
CONDITIONAL GRANT LAND CARE
Department who transferred the grant Department of Agriculture Forestry and Fisheries (DAFF)
Purpose of the grant To enhance the sustainable use of natural agricultural resources through a community base participatory approach.
Expected outputs of the grant Rehabilitated natural resources.
Actual outputs achieved 17 Awareness campaigns conducted on Land Care.21 capacity building exercises conducted within approved Land Care projects.3 616 of farm land hectares improved through conservation measures.872 number of benefi ciaries adopting practicing sustainable production technologies and practices.1 933 green jobs created through Land Care.
Amount per amended DORA R10 853 000
Amount received (R’000) R10 853 000
Reasons if amount as per DORA was not received
N/A
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Department who transferred the grant Department of Agriculture Forestry and Fisheries (DAFF)
Amount spent by the Department (R’000)
R10 187 000
Reasons for the funds unspent by the entity
Provincial business plan was approved only in July 2014 and the budget made available only in August 2014, this delayed the implementation of the programme.
Reasons for deviations on performance
There were special requests which led to over performance 1. from local municipalities to have awareness campaigns on Land Care.Land-users still need a lot of empowerment in Conservation 2. Agriculture. Exercises to empower them takes longer than was initially planned therefore there was an under performance.Same as 1.2.3. The awareness campaigns converted more land users than was 4. anticipated.Due to EPWP earnings the programme was able to employ more 5. benefi ciaries and was able to catch up.
Measures taken to improve performance
The Department has since established partnership with University of Fort Hare and is mobilizing land-users in a much integrated way that will ensure quicker results.
Monitoring mechanism by the receiving department
Monthly and quarterly reports.
CONDITIONAL GRANT DISASTER RISK MANAGEMENT
Department who transferred the grant Department of Agriculture Forestry and FisheriesPurpose of the grant To provide disaster relief to support with the rehabilitation of
infrastructure and production inputs to mitigate the impact caused by natural disasters using funds allocated for specifi c incidents of disaster.
Expected outputs of the grant 12 Early warning advisory issued and disseminated.
2 Disaster relief schemes managed for assistance to disaster stricken farmers.
Actual outputs achieved 12 Early warning advisory issued and disseminated
1 Disaster relief schemes managed for assistance to disaster stricken farmers
Amount per amended DORA (R’000) 2 982Amount received (R’000) 2 982Reasons if amount as per DORA was not received
N/A
Amount spent by the Department (R’000)
2 937
Reasons for the funds unspent by the entity
The under-spending of 1.5 % is due to small amounts of residual unspent funds remaining following all invoices being processed for payment.
Reasons for deviations on performance Disaster schemes depend on the occurrence of natural disaster incidences and approval by the National Government.
Measures taken to improve performance
N/A
Monitoring mechanism by the receiving department
Quarterly reporting.
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7. DONOR FUNDS None
8. CAPITAL INVESTMENT
8.1 Capital investments, maintenance and asset management plan
. .
Infrastructure projects
2014/2015 2013/2014Final
Appropriation R’000
Actual Expenditure
R’000
(Over)/ Under Expenditure
R’000
Final Appropriation
R’000
Actual Expenditure
R’000
(Over)/ Under Expenditure
R’000New and replacement assets 74 101 61 247 12 854 63 422 63 422 -
Existing infrastructure assets
6 082 5 605 477 15 399 5 081 10 318
Upgrades and − additionsRehabilitation, − renovations and refurbishments
6 082 5 605 477 15 399 5 081 10 318
Maintenance and − repairs
Infrastructure transfer
Current− 7 500 7 500 - 8 500 8 500 -Capital−
Total 87 683 74 352 13 331 87 321 77 003 10 318
The Department’s asset register has a net increase of R38,9m. The net increase is comprised of new acquisitions amounting to R32,1m (major and minor assets), births of new livestock (biological assets) amounting to R281 000 and donations received valued at R6,6m. The asset holding of the Department has not changed for the year under review and the Department had a total of R10,127m disposals, that is inclusive of old and scrapped assets as well as lost assets. The Disposal Committee analyses the disposal requests then make a recommendation on the method of disposal to be followed. The Department conducts quarterly asset verifi cations and discrepancies are updated as and when they are identifi ed. All losses are reported within 48 hours to the asset management unit and South African Police Services. This is followed by investigations and recommendations made for approval of the Accounting Offi cer.65% of capital assets are in a good condition, 25 % of these assets in a fair condition and 10% in a bad condition. The maintenance of the departmental tractors is done by the Trading Entity under the Department of Transport through the management maintenance scheme. There was a backlog in the beginning of the fi nancial year which was caused by the Trading Entity and its service providers and that has since been cleared and there is currently no backlog in maintenance.
The infrastructure projects for 2014/15 includes those carried over from 2003/14 and totalled 105 projects. A total of 69 project were completed that included on-farm infrastructure projects and Land care projects. Thirty six project were not completed. These comprise one project that was cancelled due to changes amongst benefi ciaries that prevented implementation in 2014/15, one project placed on hold as a result of review of the project in terms of current priorities and 34 projects that continue into 2015/16. These projects are listed below.
The projects that continue into 2015/16 are in terms of the following:
Multi- year projects (12) where the implementation spans 2 or more years.1. Projects of 2014/15 that were not completed by year end (22) and most of which carries over into 2. 2015/16 for completion in the fi rst quarter of 2015/16. These project were slow in implementation largely on account of limited capacity of contractors and where they were affected by wet conditions that placed construction on hold for some weeks.
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INFRASTRUCTURE PROJECTS THAT ARE CURRENTLY IN PROGRESS AND WHEN THEY ARE EXPECTED TO BE COMPLETED.
No. Project District Infrastructure Description Expected Completion Time1 Nkuthazo Trading
EnterpriseAmathole Poultry Abattoir facility Quarter 1 of 2015/16
2 Macademia Amathole Irrigation & orchard establishment Quarter 4 of 2016/17 on-going multi -year project
3 Animal Health clinic Amathole Animal health clinic Quarter 3 of 2015/164 Irrigation scheme
DevelopmentAmathole Irrigation scheme Development Quarter 4 of 2017/18 :On-going
multi-year project 5 Revitalisation of
Irrigation SchemesBuffalo city Revitalisation of Irrigation schemes Quarter 4 of 2017/18 :On-going
multi-year project 6 Agricultural Colleges
RevitalisationBuffalo City Departmental facility development Quarter 4 of 2017/18 :On-going
multi-year project 7 Training and
Capacitation of farmersBuffalo city Farmer Training for effective use of
Infrastructure Quarter 4 of 2017/18 :On-going multi-year project
8 Green Hills S Baartman Conservation works Quarter 1 of 2015/169 Vlakplaas S Baartman Fencing Quarter 1 of 2015/1610 Lukhanyo Farm S Baartman Construction of a new poultry structure
with water and electric connection, chicks, feed and vaccines
Quarter 2 of 2015/16- two year project
11 Wittekleibos S Baartman Installation of phase 2 milking parlour Quarter 4 of 2015/16: multi-year project
12 Ithembalethu S Baartman Poultry structure with water and electricity connection, chicks, feed and vaccines, and borehole
Quarter 2 of 2015/16- two year project
13 Amazing Grace S Baartman Poultry structure with water and electricity connection, chicks, feed and vaccines
Quarter 2 of 2015/16- two year project
14 Gletwyn S Baartman Stock water borehole Quarter 1 of 2015/1615 Banzi Chris Hani Shearing shed Quarter 1 of 2015/1616 Lingelihle Chris Hani Dipping Facility Quarter 1 of 2015/1617 Manzimdaka Chris Hani Plunge dip Quarter 1 of 2015/1618 Mbinzana Chris Hani Dip-Tank Renov Quarter 1 of 2015/1619 Xashimba abattoir Chris Hani Processing Facility Quarter 4 of 2015/16: multi-year
project20 Imbumba Chris Hani Fencing Quarter 1 of 2015/1621 Deochandoris Chris Hani Handling facility, spray race, irrigation
10ha, storage shedQuarter 1 of 2015/16
22 Lower Myolo Chris Hani Shearing shed Quarter 1 of 2015/1623 Hala Chris Hani Fencing Quarter 3 of 2015/16- multiyear
project24 Bloem Vlei Handling
facility Chris Hani Handling facility Quarter 1 of 2015/16
25 Emalahleni Dip Tank Chris Hani Dipping Facilities Quarter 1 of 2015/1626 Gwatyu cattle handling
facilityChris Hani Handling facility Quarter 1 of 2015/16
27 Khiba Joe Gqabi Large Stock Handling Facility Quarter 1 of 2015/1628 Ruigtefontein Joe Gqabi Stockwater System Quarter 1 of 2015/1629 Pilgrimsrest Joe Gqabi Stockwater System Quarter 1 of 2015/1630 Lower Kroza O R Tambo Fencing Quarter 1 of 2015/1631 Nkozo O R Tambo Fencing Quarter 1 of 2015/1632 Ngxakolo O.R.Tambo Natural Resource rehabilitation Quarter 3 of 2015/16- multiyear
project33 Ntsimbini Mazie
productionOR Tambo Fencing Quarter 1 of 2015/16
34 Madikwa Farm OR Tambo Hydroponics tunnels Quarter 2 of 2015/16
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Plans to close down or downgrade any current facilitiesTwo projects planned for 2014/15 are closed down /downgraded. These are a piggery project planned for Jamestown commonage on account of changes amongst benefi ciaries that stalled development and the upgrade of the Bhisho showgrounds, kitchen & ablution facilities where the demand for food security funding superseded the priority for the upgrade.
Progress made on the maintenance of infrastructureThe on-farm infrastructure developments are handed over to the benefi ciary farmers and maintenance thereafter is the responsibility of the farmer. The role of the Department in this maintenance is to advise farmers as to an effective maintenance plan. Maintenance of community dipping facilities is supported and in 2014/15 7 dip tanks were renovated. In 2015/16 maintenance of 112 dip tanks is planned
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PART C: GOVERNANCE
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INTRODUCTION1. The Accounting Offi cer is responsible for the governance of the Department and is actively involved in the various governance structures of the department. Considerable efforts are made to decrease the potential risks, with the assistance of Internal Audit and Risk Management under the guidance of the Audit Committee and the Risk Management Committee. The focus has been on ensuring that all senior management and staff become more accountable for minimising risks within their areas of control. The Department also maintains zero tolerance to fraud and as such a dedicated unit that reports directly to the Accounting Offi cer has been beefed up.
To strengthen management oversight, the Department ensures that reporting becomes more integrated, regular management meetings are held to ensure accountability. A system of monthly reporting, review of performance and budget expenditure has been strengthened. The Department is in the process of developing ICT strategy that will assists in identifying management information needs, manage IT more cost effectively, protect and manage information, safeguard IT assets, improve disaster recovery procedures and contribute to operations continuity processes.
The Department has resuscitated the collective bargaining and consultative structures such as Labour Management Forums (LMF) in order to prevent escalation of labour issues and allow for the sustained healthy work environment.
The information below provides brief explanation to highlight measures in place to improve governance.
RISK MANAGEMENT2. The Department has a dedicated risk management unit that is responsible for coordinating implementation and monitoring risk management. The unit is assisted by the Risk Management Committee that is responsible for providing oversight functions over the risk management process. The Committee consists of all Deputy Directors General, Chief Financial Offi cer and some Chief Directors. An external independent Chairperson has been appointed during the course of the year in line with the Public Sector Risk Management Framework. It meets on a quarterly basis where Programme Managers present the programme reports. For the year under review the Committee approved the following Risk Management Strategic documents: Risk Management Policy, Risk Management Strategy, Risk Management Implementation Plan, Risk Management Committee Charter/Terms of Reference, Strategic, Operational and Information Communication and Technology (ICT) Risk Registers. The documents were taken through a process of review within various functional components of the Department. Risk management is integrated into existing decision making structures, taking the following into consideration:
Risk management is included in the performance agreements of senior management and deputy • directors to ensure accountability of risks; and
Risk assessment was applied to identify key risks and mitigate them.•
The risk register is monitored continuously by the Risk Management Committee and the Audit Committee, and updated regularly by the various components. Risk management awareness is continuously being strengthened through the communiques to management and staff and conducting of workshops.
FRAUD AND CORRUPTION3. The Department has developed a fraud prevention policy which has been approved by the Accounting Offi cer.
The Department has conducted awareness campaigns on ethics, fraud and corruption in districts and institutions. The personnel of the unit have been capacitated in forensic investigation training. The Anti-Corruption Unit has been capacitated by contracting a Director who is a Certifi ed Fraud Examiner to Head the unit. All reported incidences of fraud and corruption are investigated internally and also to external law enforcement agencies. The unit also provides support to the disciplinary process after fi nalization of investigation reports.
Employees are encouraged to report suspected fraud and corruption in the national anti-corruption hotline. Employees are also informed during awareness campaigns on the different reporting processes which included protected disclosure and anonymous reporting.
Cases are reported through the national anti-corruption hotline and Offi ce of the Premier would refer those to the Department. However, most cases are reported by employees to the unit and/ or top management. All reported cases are referred to the anti-corruption unit for investigation. The anti-corruption units investigate the cases and then provide a report to the Superintendent General for approval.
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Types of Anti-corruption cases investigated
Type NumberCorruption 11Fraud 7Financial Misconduct 3Maladministration 6Total 27
Nature of offences as per the total number cases reported
Nature of Cases NumberFraud & Corruption 18Forged Signature -Tender Irregularities -Nepotism -Payroll Fraud -Procurement Fraud -Travel Claims -Financial Misconduct 3Maladministration 6
Status of cases:
Type Status NumberCrime Prevention Unit investigation -Special Investigation Unit -Insuffi cient information provided from OTP on hotline cases to be investigated
-
SAPS Anti-corruption unit Still under investigation 2Departmental Anti-corruption unit 11Closed fi les 14Pending cases still need to be fi nalized and closed 13Recommended cases for fi nalization to the Accounting Offi cer
2
Pending cases still not fi nalised:
Type Year NumberFraud and Corruption investigating by the Department, Crime Prevention Unit and Special Investigation Unit
2005 22006 1
2007 22008 22009 02010 02011 32012 42013 12014 62015 6
CHALLENGES FACED REGARDING THE CASES REPORTED (HOTLINE / DEPARTMENT)
Capacity of the Department to investigate reported cases.Inadequate information supplied by reporting sources.
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MINIMISING CONFLICT OF INTEREST4.
Confl ict of interest is managed as follows;
All Senior Management is vetted including key staff at lower levels such as Supply Chain Management • and Finance.
All stall members are required to disclose fi nancial and business interest.•
Application of approved fi nancial, human resource and supply chain management delegations.•
The participants in the tender process of the Department are required to declare their interest when • submitting documents and those who are working for the Department are eliminated from the bidding process. Furthermore the submitted bidding documents are verifi ed using identity documents of directors to check if they are not linked to the departmental offi cials thereby minimising confl ict of interest.
CODE OF CONDUCT5. The Code of Conduct is implemented in the Department to enhance professionalism and to promote high standard of professional ethics in the workplace. The department conducted workshops on Code of Conduct and this endeavour was to promote and encourage Departmental offi cials to think and behave ethically. As part of inducting new employees into the Department, a chapter on code of conduct forms part of educational material that is presented during induction sessions. A disciplinary code is employed for any violation of the code of conduct and as a result the Department has reduced the number of cases on related code violation.
HEALTH AND SAFETY AND ENVIRONMENTAL ISSUES6. The department has a responsibility of ensuring that it deals with the intangible and tangible factors of safety, health environment, risks and quality management for purposes of optimal occupational health and safety of employees. A Safety, Health, Environment, Risk and Quality (SHERQ) policy was developed and the mission of this policy is to enforce commitment of the Department in the provision and promotion of a healthy and safe work environment for employees and clients utilizing government infrastructure.
Based on the OHS Risk Assessment recommendations, the Department was able to develop Occupational Health and Safety risk register which contains all, associated risks as articulated on the recommendations of risk assessment.
The OHS audits were conducted, non-conformances to the OHSA were identifi ed, and recommendations were documented for ease of implementation.
The Department has developed capacity building programmes that are focusing at educating employees on how to manage personal hygiene, training of all cleaners on general housekeeping. The capacity development of cleaners assisted them in applying OHS norms and standards when they are discharging of their responsibilities
As part of the Department’s endeavours of providing and sustaining a risk free total work environment, there has been a slight reduction in the number of Injuries on Duty cases from 6 in 2013/14 to 4 cases in 2014/15.
PORTFOLIO COMMITTEE7. The Committee met with the Department of Rural Development and Agrarian Reform on 13, 18 &19 November 2014. The departmental delegation was led by the MEC, Hon. Qoboshiyane. Each programme manager presented their relevant programmes.
The Committee met on 2nd December 2014 to fi nalise and adopt the report. The Portfolio Committee met with the Department on 3rd and 18th February 2015. Subsequent to that the Portfolio Committee issued written fi ndings and resolutions on the department’s performance for the 2013/14 fi nancial year. The Department responded to the fi ndings and resolutions on 23rd March 2015, as follows:
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Programme 1: Administration
FINDINGS RECOMMENDATIONS RESPONSE FROM DRDARDue to the high number of (a) vacancies in Senior and Financial management posts, there is a repetitive under spending.
The department must come up (a) with a remedial strategic plan, and submit it to the committee within 30 days, on how it will address senior management vacancies and the issue of an ageing SMS.
Vacancies in Senior Management
The total number of Senior Management posts as at 31 March 2014 was 65 with 57 fi lled posts.
During the course of 2014/15, 8 (eight) SMS posts were prioritised, advertised, and 5 (fi ve) fi lled. The current vacancy rate at SMS level is 4,6%.
SMS Age Analysis
As at 01 January 2015, the total number of fi lled Senior Management posts were 61 and of which 13 (21%) Senior Managers are above the age of 55 years. To address the aging workforce the Department will:
Consult the affected staff to establish their 1. consensus as they cannot be forced to retire early.
As soon as the number of offi cials that 2. possibly qualify for early retirement is established, the cost implications will be determined.
A motivation shall be made to Provincial 3. Treasury to cover the penalty barrier which is currently the deterrent on opting for early retirement at 55.
Any employees above the age of 60 shall 4. be consulted to consider retirement with all necessary fi nancial considerations.
Furthermore, work-shadowing and 5. mentoring in the identifi ed critical areas will be implemented.
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FINDINGS RECOMMENDATIONS RESPONSE FROM DRDARThe committee has a (b) serious concern about offi cials conducting business with government and the department
The department must, within 30 (b) days, submit to the committee the list of the offi cials doing business with the department together with copies of approval letters from the Head of the Department. The department must also submit proof of action taken against the relevant offi cials that do not have approval letters as required by section 30 of the Public Service Act 103 of 1994.
The Department acknowledges the concern raised by the committee.
The Department wish to submit that there 1. are only 2 offi cials who have been positively identifi ed to be conducting business with the Department.
Furthermore they never sought approval to 2. do so.
Of the offi cials identifi ed, one has been 3. served with the rules of administrative justice to show cause as to why she cannot be charged for contravening section 30 of the Public Service Act. (Evidence) The other one has resigned on the 3rd December 2014.
Another person initially identifi ed, is an 4. employee of the department who has been appointed by the department to represent it in the Kei Fresh Produce Board. The fi gure indicated (R148 328.50) next to his name represent a transaction where Kei Fresh Produce was awarded a contract by the Department and not to the individual concerned.
Programme 2: Sustainable Resource Management
FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARThe programme has challenges (a) with regard to processing subdivision, change of agricultural land use and rezoning applications/ recommendations resulting in bottle necks that retard economic development.
The department must urgently (a) address this problem as it impacts negatively on land care and land use management.
The Department has developed a working relationship with DRDLR that will improve interaction with relevant stakeholders i.e. Municipalities, National and Provincial Departments and communities to ensure that the processing of subdivision changes for land use and rezoning applications will be processed smoothly to improve the use of land for economic development.
Infrastructure project completion (b) certifi cates could not be issued due to contractors’ incapacity and poor monitoring by the department.
The Department must, within 30 (b) days, submit an action plan to the committee on how it intends to fast-track the completion of infrastructure projects.
The Department is recruiting qualifi ed 1. engineers and also issuing bursaries to young people studying engineering in an effort to improve the organisational capacity to manage infrastructure projects in short, medium and long term.
The Department has adopted a multiyear 2. infrastructure approach where the 1st year focussed on the infrastructure plan i.e. designs and approvals and the following years will focus on the implementation thereof.
During the procurement process the 3. Department will determine the capacity of contractors through proper risk analysis based on the past projects completed.
Successful bidders enter into a service 4. level agreement with a clearly defi ned penalty clause for poor performance.
A multi-disciplinary monitoring system 5. will be put in place to strictly monitor the implementation of projects against the service level agreement.
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FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARThe department has a serious (c) challenge of meeting its target on awareness campaigns that seek to educate rural communities on proper use, management of agricultural land and conservation.
The department must, within 30 (c) days, submit to the committee an awareness campaign strategy on land use management and conservation.
The strategy to improve awareness campaign is informed by the 2015/16 awareness campaign schedule.
District Number of campaigns
Alfred Nzo 2
Amathole 2
Chris Hani 2
Joe Gqabi 1
OR Tambo 3
Sarah Baartman 4
Programme 3: Farmer Support Development
FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARThe department has performed (a) far below its own targets with regard to farm plans, out of 75 planned, 10 were completed.
The Department must provide (a) realistic strategies to turn the situation around.
The turnaround plan is as follows:
The number of farm plans to be 1. implemented is a demand driven service as the farm plans are linked to the number of infrastructure development projects.
The number of farm plans to be projected 2. for completion in future years are to be based on (a) the demand by the clients and (b) the available resources i.e. budget.
The targets for farm plans will take into 3. account the achievement of the previous year and also the infrastructure plan for the 2 outer years of the MTEF Cycle.
For the 2014/15 Financial Year 4. the projection has been adjusted accordingly.
The shortage of skilled Engineers (b) and Extension personnel remains a challenge.
The Department must, within 30 (b) days submit to the committee a comprehensive recruitment strategy to address the problem.
Currently a process of recruiting 49 extension practitioners is underway and will be concluded before the end of this fi nancial year 2014/15. The 44 extension practitioners comprise of 29 extension assistants, 10 controllers, 3 scientists and 10 agricultural advisors. For 2015/16, there is a further plan to recruit 23 extension practitioners.
The Department is recruiting qualifi ed engineers and also issue bursaries to young people studying engineering in an effort to improve the organisational capacity to manage infrastructure projects in the short, medium and long term.
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Programme 4: Veterinary Services
FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARThe target for the control of (a) external parasites could not be met due to poor state of dipping infrastructure and animal handling facilities.
The Department must prioritise the (a) building of the new infrastructure and the revitalisation of existing dipping and animal handling facilities.
The Department takes the renovation of dipping and animal handling facilities very seriously. It takes cognizance of the huge backlog in this area. To this end, an amount of R10 million has been budgeted for this purpose. It will help to renovate 125 dipping tanks that are spread across the province. The Department intends to persuade the affected communities to provide labour during these renovations. An additional amount of R2,5 million has been budgeted for the construction of 3 dipping tanks in the Alfred Nzo District.
The department failed to meet (b) its minimum target for testing of animals for diseases.
The Department must, within (b) 30 days, submit a plan to the committee on how it will address this problem to ensure that testing is conducted to combat and intercept the threat of the uncontrolled spreading of diseases.
The plan to address failure to meet its minimum target is as follows:
Renovate animal handling facilities to 1. ensure that there are facilities to restrain animals for the purposes of testing.
Recruitment of Animal Health Technicians 2. and State Veterinarians who will perform the testing of animals.
Re-opening of TARDIa.
Prioritize bursary awarding to b. the students to study Veterinary Science
Head hunting to speedily appoint c. the limited number of Vets available on the market.
Set a new minimum target for each AHT 3. for number of animals to ensure that the required number of tests are performed.
Ensure availability of testing antigen by 4. activity lobbying DAFF to speed up imports of requested testing material.
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FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARThe shortage of Veterinary (c) Surgeons is a serious challenge for the department.
The Department must, within (c) 30 days, submit a plan to the committee on how it will address this challenge.
We agree with the fi nding and as such the Departments Top Management has adopted strategies to address this short coming.
Strategy 1: For bursaries awarded in the 2015 academic year, 60% was for students who are going to study veterinary science. The Department has managed to send 12 students to the University of Pretoria.
Strategy 2: The Department is looking at enrolling students in SADC Countries, especially Zimbabwe and Zambia, to increase the student base doing Veterinary Science in the Eastern Cape. Negotiations are still at a very early stage.
Strategy 3: The Head of Department allowed Programme 4 to head hunt 6 Veterinarians, of which 2 were SA’s from the Eastern Cape. Unfortunately, only 4 took up the job offer.
We continue to look to address this challenge.
Programme 5: Research and Technology Development Services
FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARThe Department (a) could not meet its target of scientifi c papers meant to be published on animal and crop production.
The Department (a) must, within 30 days, submit to the committee a plan on how it will address the problem to ensure achievement of these targets.
The Department has made strides to address the underperformance on scientifi c output, using the OSD grading of scientists that allows for appointment of Specialist Scientist. This category of scientists allows the department to attract highly skilled and qualifi ed scientists to ranks. These scientists will be crucial in mentoring the junior scientist and also have capacity to attract external research funding that will augment current program budget.
The Department has availed budget to appoint two specialist scientists in the fi eld of crop and animal production sciences. Currently two positions have been advertised and interviews were conducted. The recommended candidates will assume their duties on 1st April 2015.
The Department (b) could not meet the target of 31 presentations on technology transfer events.
The department must, (b) within 30 days, submit to the committee a plan on how it will address the problem
The Program in delivering on this indicator relied more on the information days organised by Extension Offi cers. Currently the Program will organise Information Days that will focus on specifi c production stream whereby experts will present on the topic directly to the farmers and extension offi cers.
Below is the schedule of information days for the fi nancial year 2015/2016. This schedule is in response to the Portfolio committee’s recommendation that a plan must be submitted to ensure that there is no underperformance on the number of presentations made on information days.
Please note that there are four presentations made during the seminar series. This schedule has been made to ensure that there is no underperformance in the presentations made during information transfer events.
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FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARNO Period Place Type of Information Day1 May 2015 Elliot Management of feedlots2 April 2015 Krwakrwa and
DohneRainwater harvesting techniques and its benefi ts
3 April – June 2015
Dohne/ Cradock/ Ngcobo
Maize cultivar evaluation
4 May to June 2015
Ngcobo / Middledrift
Sweet potato cultivar evaluation
5 December 2015
Peddie Box bailing
6 June 2015Sept 2015Dec 2015March 2016
Dohne / Tsolo Seminar series
Programme 6: Agricultural Economics Services
FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARThe over performance and (a) under expenditure in this programme is a matter of concern to the committee as it is a contradiction.
The Department must provide a (a) detailed report explaining this anomaly to the committee within 30 days.
The under-expenditure is due to transfers that were conducted later than planned. Transfers are done via the ECRDA to ensure accountability of the use of the funds. The entities are Magwa, Majola and Macadamia Nuts.
The department’s marketing (b) strategy for maize production is not fully understood by producers and the price fl uctuation compromises effective marketing.
The department must provide a copy (b) of its marketing strategy and a plan, on how it will popularize it to the producers, to the committee within 14 days.
The biggest portion of the maize that is produced is sold on the informal market. This market realized higher prices for grain than in the formal/organized market. Whilst marketing outlets are identifi ed and farmers are linked to these markets, the lower price prevents these linkages to be supported by producers. They rather keep the maize and trade with it locally because they get higher prices.
The Marketing Plan and Strategy is attached and will be communicated to all stakeholders.
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Programme 7: Structured Agricultural Education and Training
FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARAttendance and qualifi cation (a) targets of non-accredited short term courses were not met due to poor planning and budgeting.
The Department must, within 30 days, (a) submit a plan to the committee on how it will address this backlog
The fi nding is acknowledged, however the Department have planned for 2014/15 fi nancial year in such that the backlog of 675 benefi ciaries have been taken note of in the training plan where those project benefi ciaries are colour coded to ensure that they are given the fi rst priority in the training plan. See the attached training plan.
The Department could not meet (b) the target on projects developed in Agricultural Colleges to improve the farmer training capacity due to poor performance of service providers.
The Department must, within 30 days, (b) submit an action plan to the committee on how it will address failed targets. The contracted service providers should be continuously monitored to avoid poor performance.
The fi nding is acknowledged. The Department together with the Department of Roads and Public Works (DRPW) will ensure that:
A Risk Assessment is done before • awarding a contract.
References will be checked for previous • performance of work of the same or more magnitude
The fi nancial capacity of the contractor • will be verifi ed to ensure that they can be able to deliver on the specifi cations of the contract.
A penalty clause will be included on the • contract and will be invoked once the contractor fails to deliver on a project and on time.
For big contracts, surety will be requested • from the contractor at a percentage of the contract amount to ensure that costs are recovered should the contractor fail or abandons the site.
Contract management and monitoring • will be strengthened.
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Programme 8: Rural Development Coordination
FINDINGS RECOMMENDATIONS RESPONSES FROM DRDARThis programme is severely (a) understaffed, out of 24 funded posts only 2 were fi lled.
The Department must, within 30 days, (a) submit a plan to the committee on how it will address the problem of fi lling of the critical vacant posts.
Two Directors have already been appointed in the Rural Development Branch to focus on IGR, Outcome 7 and Rural Development Planning. A Chief Director and an additional 34 Municipal Coordinators will start in the Rural Development Branch on 1st April 2015.
There is visible overlapping of (b) functions in this departmental programme and the Eastern Cape Rural Development Agency.
This programme must address the (b) manner in which it reports its functions to avoid duplication with the functions of the ECRDA.
b) The DRDAR programs are focusing mainly on primary production and household food security. The ECRDA is concentrating on commercial programs including logistics, storage and agro-processing. They also deal with forestry and loan funding.
The lack of interaction of the (c) ECRDA among farmers and entities (Khangela & Agricultural Research and Development Agency) for support is a concern.
The ECRDA must develop a plan (c) and hold awareness campaigns to educate the rural communities about its operations.
The proposal of the committee is accepted and the Agency will augment its communication process by conducting specifi c visits to areas identifi ed by the committee. Besides the ECRDA, through its regional offi ces in all the districts has a borrower education programme through which the farming community is trained on all the key programmes of the Agency linking this to the loans programme.
Regular meetings were held with the Fish River farmers to discuss their concerns which relate to their support from the National Department of Rural Development and Land Reform.
Similarly meetings were subsequently held by the ECRDA with Kangela to discuss the relationship with the Kangela benefi ciaries.
General Findings
GENERAL FINDING GENERAL RECOMMENDATION RESPONSES FROM DRDARThe Department has a serious challenge of not meeting its targets due to poor planning.
The department must, within 30 days, submit to the committee a report on how it will address this problem.
The Department will strengthen its planning to ensure that all targets that are set are realistic and within the budget envelope of the department i.e. the Annual Performance Plan and Operational Plan.
SCOPA RESOLUTIONS8. The Standing Committee on Public Accounts (SCOPA) issued written questions on the Department’s Annual Financial Statements and fi ndings of the Auditor General for the 2013/14 fi nancial year. Subsequently, on the 30th September 2014 the Department submitted comprehensive responses with all the relevant evidence and documents as required by the Committee. On the 23rd October 2014, the Department appeared before SCOPA to discuss the reports. This was followed by issuing of resolutions which were responded to on the 23rd of March 2015 as follows:
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Resolution no.
Subject Details Response by the Department Resolved (Yes/No)
1. Irregular Expenditure
The Department did not comply with section 38(1)(c)(ii) of the PFMA and Treasury Regulation 9.1.1, as irregular expenditure amounting to R12,6 million was incurred during the year under review. No disciplinary action was taken against the offi cers who permitted the irregular expenditure.
The Department has strengthened the internal control systems by capacitating all the pre-audit units in all districts through workshops to correctly interpret the applicable laws and regulations that govern the procurement and expenditure processes.
This has proven successful in that the irregular expenditure for the current year is down from R12.6 million in 2013/14 to R96 000 as at 28 February 2015.
No (Partly resolved)
2. Policies and procedures
The department did not approve and implement all its policies and procedures during the 2013-14 fi nancial year.
The Department has approved the following policies during the fi nancial year 2014/15:
ICT policy1. Food production policy2. Archive and records 3. management policyHealth and productivity policy4. HIV, Aids and TB management 5. policySecurity management policy6. Project Management policy7. Revenue collection policy8. Debt management policy9.
Yes
3. Annual Financial Statements
The department’s fi nancial statements submitted for audit purposes did not comply with section 40(1) of the PFMA, resulting in numerous audit adjustments required.
The Financial Accounting Services (FAS) directorate was experiencing capacity challenges that resulted in the very short lead times between the completion of IFS and AFS and the submission date. This was addressed by sourcing an offi cial with the relevant competences from Provincial Treasury to come and support the director for FAS. The expectation is that with the additional dedicated resource there will be improvement.
The following steps have been taken to address the recurring fi nding on fi nancial statements.
Reshuffl ing to ensure correct 1. placement of offi cials by transferring the deputy director responsible for preparation of fi nancial statements to another unit where he can best perform.
This will improve lead time for the 2. preparation and review of fi nancial statements from a level of a director to that of chief fi nancial offi cer.
All these matters form part 3. of the key result areas of the Performance Agreements in the fi nancial management chief directorate.
Yes
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Resolution no.
Subject Details Response by the Department Resolved (Yes/No)
4. Verifi cation of applicants prior appointment
The department did not verify applicants’ qualifi cations before being appointed. This is in direct contravention of the Public Service Regulations 1/VII/D.8.
Disciplinary action was taken and six verbal warnings were issued.
Yes
5. Filling of critical vacant posts
The department continues to have a number of critical posts vacant, thereby impacting on service delivery.
The Annual Recruitment Plan for 2014/15 which was inclusive of the critical vacant posts in the Department was developed but disapproved by the Provincial Coordinating Management Committee due to the budgetary constraints experienced by the Department.
The Department have prioritized fi lling of most critical vacancies by utilizing “savings” from posts that became vacant due to attrition.
The critical posts were advertised during the course of 2014/15 fi nancial year and 83 appointments were effected.
Yes
PRIOR MODIFICATION TO AUDIT REPORTS 9. The Department has prioritised all matters raised by the Auditor General on the 2013/14 audited fi nancial statements. The Department developed a comprehensive Audit Turnaround Plan including a tracking document to monitor progress made in addressing issues. Management has also strengthened its oversight role by including progress report on the implementation plan as a standing agenda in all management meetings
Matters of non-compliance raisedFinancial in which it fi rst arose
Progress made in clearing / resolving the matter
Annual fi nancial Statements, performance and annual report
The annual fi nancial statements were not prepared in accordance with the prescribed fi nancial reporting framework and or supported by full and proper records as required by section 40(1) (a) of the PFMA.
Material misstatements identifi ed in the submitted fi nancial statements
2010/11
2013/14
The Financial Accounting Services (FAS) directorate was experiencing capacity challenges that resulted in the very short lead times between the completion of IFS and AFS and the submission date. This was addressed by sourcing an offi cial with the relevant competences from Provincial Treasury to come and support the director for FAS. The expectation is that with the additional dedicated resource there will be improvement.
The following steps have been taken to address the recurring fi nding on fi nancial statements.
Reshuffl ing to ensure correct placement of offi cials by transferring the deputy director responsible for preparation of fi nancial statements to another unit where he can best perform.
This will improve lead time for the preparation and review of fi nancial statements from a level of a director to that of chief fi nancial offi cer.
All these matters form part of the key result areas of the Performance Agreements in the fi nancial management chief directorate.
Human resource management and compensation
Suffi cient appropriate audit evidence could not be obtained that a proper process was followed to verify the claims made in the candidate’s applications before appointment as required by Public Service regulation 1(VII/D.8.
2012/13 The Department has put control measures to protect its interest during employment process. A candidate declaration form has been developed and all prospective applicants are required to complete. In addition an indemnity clause has been built into all letters of appointment. This gives the department the right to terminate employee in the event where it becomes evident that misleading evidence was disclosed upon appointment. Furthermore an MOU with SAQA is being explored.
This is done due to delays experienced in South African Qualifi cations Authority (SAQA) qualifi cation verifi cation process
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Matters of non-compliance raisedFinancial in which it fi rst arose
Progress made in clearing / resolving the matter
Procurement and contract management
Goods and services with a transaction value below R500,000 were procured without obtaining the required price quotations, as required by Treasury Regulation 16A8.A.
Persons in the department who had a private or business interest in contracts awarded by the department
2012/13
2010/11
Standard Operating Procedures have been developed that detail the process to be done when procuring goods and services as well as the process to follow when deviating from procurement processes.
A system is in place to check government offi cials who have private or business interest through CIPRO. This information is examined for those holding directorships in multiple companies. All Departmental contracts or bidders where it is found that government offi cials have interest are eliminated from the bid.
Expenditure management
Effective steps were not taken to prevent irregular and fruitless and wasteful expenditure, as required by section 38(c)(ii) of the PFMA and Treasury Regulation 9.1.1.
2010/11 The Department has strengthened the internal control systems by capacitating all the pre-audit units in all districts through workshops to correctly interpret the applicable laws and regulations that govern the procurement and expenditure processes.
Appropriate action or disciplinary action is taken against the offi cers who permit the irregular expenditure.
This has proven successful in that the irregular expenditure for the current year is down from R12.6 million in 2013/14 to R96 000 as at 28 February 2015.
Revenue management
Interest was not charged on debts as required by Treasury Regulations 11.5.1.
2012/13 The Department reviewed its revenue management policy taking into account Treasury Regulations and National Treasury guide on managing debt. This was followed by developing Standard Procedure Manual on debt management. The interest is being charged on debts at the approved rate as determined by the Minister of Finance as required by Treasury Regulations.
INTERNAL CONTROL UNIT (ICU)10. Due to the complexity and adversity of a Chief Financial Offi cer’s fi nancial responsibilities, Internal Control Unit has to rely on sound internal control measures to ensure that state funds are expended in a manner in which they were budgeted for in the delivery of services to the public and also to eliminate/mitigate the irregular, wasteful and fruitless expenditure for the Department. Almost all decisions have fi nancial implications and is therefore of paramount importance that sound internal control measures are observed and enforced.
The afore going is also a requirement of Chapter 2 of the Treasury Regulations whereby the Chief Financial Offi cer is required to ensure that internal controls are in place and are enforced. The Chief Financial Offi cer, who is required to assist the Accounting Offi cer in discharging the duties under Part 2 of Chapter 5 of the PFMA Act, 1999,(Act 1 of 1999) shall do so knowing that there is a component or division, such as the Internal Control Unit, within the Financial Management Sub-Program that enforces compliance with all relevant government.
This component also makes follow-ups on audit fi ndings and ensures that audit recommendations are fully implemented to address all internal control defi ciencies that were identifi ed by both internally and externally. The unit also facilitated and co-ordinated the activities of the external auditors (The Offi ce of Auditor-General). Compliance checks were also conducted on Payments and Journals with the aim of ensuring the completeness of information captured in the BAS Financial System as well as adhering to the Departmental Financial and Supply Chain Management Delegations. The internal audit Unit also monitors implementation of the Audit Intervention Plan monthly and reports to Provincial Treasury.
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INTERNAL AUDIT AND AUDIT COMMITTEE11.
Key activities and objectives of the internal audit
The Internal Audit function has been established to provide independence and objective assurance by evaluating the adequacy and effectiveness of the Department’s existing risk management, control and governance processes to provide reasonable assurance that these processes are functioning as intended and will enable the Department to achieve its objectives and goals.The overall objective of the Internal Audit Function is to assist all levels of management in the effective discharge of their responsibilities by providing independent analyses, advice and recommendations concerning the activities that are subjected to review.
The Internal Audit conducted reviews on the following areas in accordance with the Internal Audit Plan as approved by the Audit Committee, namely: Performance Information, Financial Management, Asset Management – focusing on Tractors, Extension and Advisory Services and Project Management.
The Internal Audit Unit has observed that the overall control environment has continued to improve during the year under review, in line with the trend observed in the previous reporting period. However, there are still some concerns with the level of internal controls where evidence of lapses of effective monitoring and enforcement by management were observed, particularly in the following areas:
Financial reporting – Interim Financial Statements,•
Irregular expenditure.•
During the review follow up to determine the status of implementation of the agreed action plan as reported in the previous internal audit reports, delays were noted with regards to the implementation. The matter was brought to the attention of management and this lead to the Internal Control Unit being tasked with the monitoring of the internal audit fi ndings for implementations.
Attendance of audit committee meetings by audit committee members:
Name Qualifi cations Internal or external
If internal, position in the
DepartmentDate appointed Date
Resigned
No. of Meetings attended
T Cumming Chartered Accountant External N/A 1 August 2014 N/A 5
G Mayende Doctorate of Philosophy External N/A 1 August 2014 N/A 5
G Diutlwileng Bachelor of Commerce External N/A 1 August 2014 N/A 5
Adv Nzuzo LLB External N/A 1 August 2014 N/A 5
Previous members whose contracts expired on 31 July 2014:
Name Qualifi cations Internal or external
If internal, position in the
DepartmentDate appointed Contract
expiry date
No. of Meetings attended
C Sparg Chartered Accountant
External N/A 1 August 2011 N/A 3
G Mayende Doctorate of Philosophy
External N/A 1 August 2011 N/A 3
G Diutlwileng Bachelor of Commerce
External N/A 1 August 2011 N/A 3
L Steele Bachelor of Arts External N/A 1 August 2011 N/A 3
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AUDIT COMMITTEE REPORT12. We are pleased to present our report for the fi nancial year ended 31 March 2015.
Audit Committee Responsibility
The Audit Committee reports that it has complied with the responsibilities arising from Section 38 (1) (a) (ii) of the Public Finance Management Act and Treasury Regulation 3.1.13. The Committee has adopted an appropriate formal terms of reference as its audit committee charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein.
The Effectiveness of Internal Control
The review of the effectiveness of the system of internal controls by the Audit Committee is informed by reports submitted by external audit, internal audit and management. The development and maintenance of an effective internal control system is the responsibility of management.
The Audit Committee has drawn the attention of management to signifi cant issues that have been raised in the management report of the Auditor General, Internal Audit Reports and ECATU integration. Throughout the fi nancial year under review there was constant emphasis, by the Audit Committee, on the poor quality of Financial Reporting and evidenced in the review of Interim Financial Statements. The quality of the Final Annual Statements. Improved greatly and was evidenced by the AGSA. The Committee assessed the system of internal controls that has been put in place by the Department was inadequate throughout the fi nancial year under review.
A Risk Assessment was carried out during the year under review and the internal audit plan was developed based on this risk assessment. The Department appointed the Independent Chairperson of the Risk Management Committee in order to enhance the oversight of existing and emerging risks faced by the Department.
The following internal audit work was completed during the year under review:
During the fi nancial year a total of 22 assurance and consultation sessions were performed by Internal Audit. The areas covered include reviews of Performance Information, Financial Management, Audit Intervention Plan, Asset Management, Project Management – Infrastructure projects, Interim Financial Statements
The following were areas of concern:
Performance information – under performance by Programme 3 and 4.•
Financial management – under spending on Conditional Grants.•
Irregular expenditure.•
ECATU’s integration.•
Asset Management – Tractors.•
Commitments and lease commitments.•
In-Year Management and Monthly/Quarterly Reports
The Department has monthly and quarterly reporting system to the Treasury as required by the Public Finance Management Act (PFMA). Monitoring and reviews of performance and fi nancial information were done periodically in the year under review.
Evaluation of Financial Statements
We have reviewed the annual fi nancial statements prepared by the Department.
Reviewed and discussed the audited annual fi nancial statements to be included in the annual report, • with the Auditor-General South Africa and the Accounting Offi cer;Reviewed the Auditor-General South Africa’s management report and management’s response • thereto;Noted that there were no changes in accounting policies and practices; • Reviewed the department’s compliance with legal and regulatory provisions;• Reviewed the report on the pre-determined objectives to be included in the annual reports; and • Reviewed signifi cant adjustments resulting from the audit.•
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We concur with and accept the Auditor-General South Africa’s report on the annual fi nancial statements, and are of the opinion that the audited annual fi nancial statements should be accepted read together with the report of the Auditor-General South Africa.
Although there has been an improvement since the previous fi nancial year, there are still serious defi ciencies in the controls over compliance with legislation. The audit committee will monitor the consequence management in the Department.
Appreciation
The Committee wishes to acknowledge the commitment from management and staff to improve the audit opinion. The Committee would like to take this opportunity of expressing its sincere appreciation to the Member of Executive Council, Head of Department, the management of the Department, Internal Audit, Provincial Treasury and the AGSA for their support and co-operation during the year under review.
_____________Ms GE DiutlwilengChairperson of the Audit CommitteeEastern Cape Department of Rural Development and Agrarian Reform12 September 2015
_____________Ms GE DiutlwilengChairperson of the Audit Committee
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PART D: HUMAN RESOURCE MANAGEMENT
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INTRODUCTION1.
The information provided in this part is prescribed by the Public Service Regulations (Chapter 1, Part III J.3 and J.4).
The following legislation guides the governing of HR Management in the Department:
Public Service Act 1994, as amended.•
• Labour Relations Act (Act 66 of 1995 Updated 2007).
• Basic Conditions of Employment Act (Act 75 of 1997 updated 2008).
• Employment Equity Act (Act 55 of 1998).
• Skills Development Act (Act 97 of 1998).
• Skills Development Levies Act ((Act 9 of 1999).
• Occupational Health and Safety Act and Regulations (Act 85 of 1993 Updated 2000).
The Department consider its employees as the most valuable assets and are the foremost contributors to the achievement of departmental goals. Human resource management in the Department sought to inculcate goal-oriented human resource management through the application of sound human resource management practices. The human resource management function is steadily transforming from being a transactional and predominantly procedure bound process into a role of being a strategic partner, change agent, an employee champion and an administrative expert. This is demonstrated in terms of customer perspective emanating from the “Assessment: Ability of the Departmental Human Resource Component to strategically assist in the achievement of service delivery goals,” as prescribed in the Public Service Regulations 2001, as amended. The assessment results for 2013/14 were 77% and have improved to 79% for the 2014/15 fi nancial year.
OVERVIEW OF HUMAN RESOURCES2. Employees are critical in the realisation of Department’s current and future goals. Human resource planning is essential in order to ensure that departments’ human resources are capable of meeting its operational objectives. HR planning is currently being utilised to identify optimal strategies for HR management functions, such as recruitment, retention, learning, development, employment relations and employment equity, training and development, amongst others.
It is within this context that the Department’s Strategic Human Resource (HR) plan was developed and implemented for the period 1 April 2012 to 31 March 2016. The HR plan is reviewed annually to determine whether the human resource strategic objectives are still valid and address the human resource priorities in the Department. Biannual progress reports monitored the implementation of the key activities contained within the HR plan.
The Directorate Corporate Administrative Support is responsible for Recruitment and Selection, HR Acquisition, Service Conditions and PERSAL management matters. Senior Management appointments were made to strengthen the strategic leadership capabilities of the Department. SMS appointments which were made included District Directors for the Western, O.R. Tambo and Amathole districts as well as Director: Special Programmes Unit. There has been a signifi cant improvement with regard to HR compliance, to the extent that only the absence of a proper process to verify the claims made in the candidate’s applications before appointment as required by PSR 1 (V11/D.8) was raised by the Auditor-General during the previous audit.
Set HR priorities for the year under review and the impact of these priorities
To ensure that Department’s future human resource needs are met, the following HR priorities were identifi ed and implemented to address the recognised gaps in current and future human resource requirements:-
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No HR Priority Impact1. Implement an effective attraction and retention strategy
in order to attract and retain highly skilled workforce for effective service delivery.
Reduction of vacancy rate and retain skilled employees for continued service delivery.
2. Improve the development of employees through appropriate training interventions to address the critical skills gap in the Department.
Address critical and scarce skills through recruitment of interns, employee development and awarding of bursaries.
3. Address employment equity targets in the Department by reaching 50% representation of women in SMS.
Prioritize implementation of Employment Equity Action Plan which will result in the recruitment of female SMS.
4. Address disability targets by having 1% of the employee population constituting persons with disabilities.
A representative staff complement on all occupational levels.
5. Implementation of Employee Health and Wellness Programmes.
Safe and healthy working environment that allows for high productivity of employees.
6. Enforce compliance on Performance Management System.
Improved organisational performance.
Challenges faced by the Department
The Department is characterized by an aging workforce and high staff turnover, this have a negative effect on productivity within the Department. In the case of staff turnover, smooth transitions should always be planned for. However, this is not always possible as some skills are diffi cult to replace, slow turnaround times in recruitment processes.
The Department experiences critical shortage of identifi ed critical and scarce skills.
Non adherence to set EE goals and targets, as per EEP, as well as national targets of 50% for women in senior management service (SMS) and 2% for people with disabilities.
Future HR plans / goals
The Department is giving effect to its Human Development Plan through internship programmes, bursaries in critical and scarce skills and programmes for young professionals.
Actively implement the affi rmative action measures contained in the Employment Equity Plan of the Department. Improved effectiveness and effi ciencies of HR performance in terms of key HRM functions.
HUMAN RESOURCES OVERSIGHT STATISTICS3. 3.1 Personnel related expenditure
The following tables summarise the fi nal audited personnel related expenditure by programme and by salary bands. In particular, it provides an indication of the following:
amount spent on personnel by programme;•
amount spent by salary band; and •
amount spent on salaries, overtime, home owner’s allowances and medical aid by programme and • salary band.
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Table 3.1.1 Personnel expenditure by programme for the period April 2014 and 31st March 2015
Programme Total Expenditure
(R’000)
Personnel Expenditure
(R’000)
Training Expenditure
(R’000)
Professional and Special
Services Expenditure
(R’000)
Personnel Expenditure
as a % of total expenditure
Average personnel cost per
employee (R’000)
Programme 1 417 898 256 719 4 394 - 65.1 87Programme 2 127 538 79 744 141 - 62.5 27Programme 3 564 366 294 148 4 471 - 52.1 100Programme 4 254 696 201 748 30 - 79.2 69Programme 5 107 770 86 476 - - 80.2 29Programme 6 45 072 21 932 - - 48.7 7Programme 7 117 178 47 816 4 103 - 40.8 16Programme 8 218 247 11 875 - - 5.4 4
TOTAL 1 852 763 1 000 457 13 139 - 54 340
Table 3.1.2 Personnel costs by salary band for the period April 2014 and 31st March 2015
Salary bandPersonnel
Expenditure (R’000)
% of total personnel cost
No. of employees
Average personnel cost per employee (R’000)
Lower skilled (Levels 1-2) R 35 066 3.2 258 R 135 915Skilled (level 3-5) R 107 038 9.8 605 R 176 922Highly skilled production (levels 6-8) R 418 110 38.3 1286 R 325 124Highly skilled supervision (levels 9-12) R 354 100 34.9 688 R 553 355Senior and Top management (levels 13-16) R 56 615 5.2 57 R 993 246Contract (Levels 1-2) R 92 0 1 R 92 000Contract (Levels 3-5) R 1 506 0.1 7 R 215 143Contract (Levels 6-8) R 3 186 0.3 8 R 398 250Contract (Levels 9-12) R 18 356 1.7 30 R 611 800Contract (Levels 13-16) R 3 680 0.3 4 R 920 000Abnormal Appointment R 2 708 0.2 74 R 36 595
Total 1 000 457 94.1 3018 340 312
Table 3.1.3 Salaries, Overtime, Home Owners Allowance and Medical Aid by programme for the period April 2014 and 31st March 2015
Programme Salaries Overtime Home Owners Allowance
Medical Aid
Amount (R’000
Salaries as a % of personnel
costs
Amount (R’000)
Overtime as a % of personnel
costs
Amount (R’000)
HOA as a % of
personnel costs
Amount (R’000)
Medical aid as a % of personnel
costs Programme 1 193348 69.8 766 0.3 9322 3.4 11668 4.2Programme 2 60169 65.1 78 0.1 2339 2.5 3149 3.4Programme 3 215010 66.1 2789 0.9 7828 2.4 11717 3.6Programme 4 149535 67 748 0.3 6228 2.8 8705 3.9Programme 5 57302 67 1594 1.9 4064 4.8 4418 5.2Programme 6 16354 67.3 3 0 655 2.7 703 2.9Programme 7 34521 67.4 631 1.2 2115 4.1 2597 5.1Programme 8 10026 82 0 0 471 3.9 301 2.5TOTAL 736 265 67.5 6 609 0.6 33 022 3 43 258 4
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Table 3.1.4 Salaries, Overtime, Home Owners Allowance and Medical Aid by salary band for the period April 2014 and 31st March 2015
Salary Bands Salaries Overtime Home Owners Allowance
Medical Aid
Amount (R’000
Salaries as a % of personnel
costs
Amount (R’000)
Overtime as a % of personnel
costs
Amount (R’000)
HOA as a % of
personnel costs
Amount (R’000)
Medical aid as a % of personnel
costsSkilled (level 1-2) 22313 63.2 875 2.5 2842 8 3253 9.2Skilled (level 3-5) 71268 66.2 1198 1.1 6514 6.1 7468 6.9Highly skilled production (levels 6-8) 292456 66.8 2946 0.7 13497 3.1 20075 4.6
Highly skilled supervision (levels 9-12 277928 66.8 1584 0.4 7516 1.8 11513 2.8
Senior management (level 13-16) 44737 71.6 1 - 2551 4.1 840 1.3
Contract (Levels 1-2) 92 100 - - - - - -Contract (Levels 3-5) 1397 92.2 - - 9 0.6 27 1.8Contract (Levels 6-8) 2988 93.7 4 0.1 30 0.9 39 1.2Contract (Levels 9-12) 17421 82.6 - - - - 43 0.2Contract (Levels 13-16) 2957 76 - - 63 1.6 - -Abnormal Appointment 2707 98.7 - - - - - -Total 736264 67.5 6608 0.6 33022 3 43258 4
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3.2 Employment and Vacancies
The tables in this section summarise the position with regard to employment and vacancies.
The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment. This information is presented in terms of three key variables:
programme.•
salary band; and•
critical occupations.•
Departments have identifi ed critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate refl ects the percentage of posts that are not fi lled.
Table 3.2.1 Employment and vacancies by programme as on 31st March 2015
Programme Number of funded posts on approved
establishment
Number of posts fi lled
Vacancy Rate Number of employees additional to the establishment
Programme 1 887 784 11.6 1Programme 2 242 212 12.4 4Programme 3 853 764 10.4 -Programme 4 673 595 11.6 -Programme 5 353 326 7.6 -Programme 6 50 45 10 -Programme 7 201 177 11.9 -Programme 8 43 41 4.7 -TOTAL 3302 2944 10.8 5
Table 3.2.2 Employment and vacancies by salary band as on 31st March 2015
Salary band Number of posts on approved
establishment
Number of posts fi lled
Vacancy Rate Number of employees additional to the establishment
Lower skilled (1-2) 339 263 22.4 -Skilled (3-5) 672 604 10.1 -Highly skilled production (6-8) 1424 1284 9.8 4Highly skilled supervision (9-12) 746 686 8 -Senior management (13-16) 71 57 19.7 -Contract (1-2) 1 1 - -Contract (3-5) 7 7 - -Contract (6-8) 8 8 - -Contract (9-12) 30 30 - -Contract (13-16) 4 4 - 1Total 3302 2944 10.8 5
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Table 3.2.3 Employment and vacancies by critical occupations as on 31st March 2015
Critical Occupations Number of Posts
Number of Posts
Filled
Vacancy Rate
Number of Posts Filled
Additional to the Establishment
Agriculture animal oceanography forestry & other science 55 53 3.6 0Agriculture related 224 185 17.4 0Economists 31 27 12.9 0Engineering sciences related 7 7 0 0Engineers and related professionals 1 1 0 0Veterinarians 48 42 12.5 0Veterinary assistants 15 12 20 0TOTAL 381 327 14.1 0
3.3 Filling of SMS PostsThe tables in this section provide information on employment and vacancies as it relates to members of the Senior Management Service by salary level. It also provides information on advertising and fi lling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken.
Table 3.3.1 SMS post information as on 31 March 2015
SMS Level
Total number of funded SMS Posts
Total number of SMS posts fi lled
% of SMS posts fi lled
Total number of SMS posts vacant
% of SMS posts vacant
Executive Authority 1 1 100 - -Head of Department 1 1 100 - -Salary Level 15 3 3 100 - -Salary Level 14 14 14 100 - -Salary Level 13 50 38 76 12 24Total 69 57 83 12 17
Table 3.3.2 SMS post information as on 30 September 2014
SMS LevelTotal number of funded SMS Posts
Total number of SMS posts fi lled
% of SMS posts fi lled
Total number of SMS posts vacant
% of SMS posts vacant
Director-General / Head of Department 1 1 100 - -
Salary Level 16 1 1 100 - -Salary Level 15 3 3 100 - -Salary Level 14 14 14 100 - -Salary Level 13 48 38 80 12 20Total 67 57 85 12 15
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Table 3.3.3: Advertising and fi lling of SMS posts for the period 1 April 2014 and 31 March 2015
SMS Level Advertising Filling of postsNumber of vacancies per level advertised in 6 months of becoming
vacant
Number of vacancies per level fi lled in 6 months of
becoming vacant
Number of vacancies per level not fi lled in 6 months
but fi lled in 12 months
Director-General / Head of Department
- - -
Salary Level 16 - - -Salary Level 15 - - -Salary Level 14 - - -Salary Level 13 5 3 1Total 5 3 1
Table 3.3.4: Reasons for not having complied with the fi lling of funded vacant SMS - Advertised posts within six months and fi lled within 12 months after becoming vacant for the period 1 April 2014 and 31 March 2015
Reasons for vacancies not advertised within twelve months Post of Director: SPU was a new post and together with the post of Principal: Tsolo Agricultural Development Institute (TARDI), only funded in the 2014/15 fi nancial year due to budgetary constraints.
Reasons for vacancies not fi lled within six months No suitable candidates were found for the posts of Director: GITO and Director: Crop Production and the posts were re-advertised.
Table 3.3.5: Disciplinary steps taken for not complying with the prescribed timeframes for fi lling SMS posts within 12 months for the period 1 April 104 and 31 March 2015
Reasons for vacancies not advertised within six months The Department experienced budgetary constraints in respect of Compensation of Employees.
Reasons for vacancies not fi lled within six months The Department experienced budgetary constraints in respect of Compensation of Employees.
3.4 Job Evaluation
Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in their organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are fi lled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.
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Table 3.4.1: Job Evaluations by Salary band for the period 1 April 2014 and 31 March 2015
Salary Band Number of Posts
Number of Jobs
Evaluated
% of Posts Evaluated
Posts upgraded Posts downgradedNumber % of posts
EvaluatedNumber % of posts
Evaluated
Lower skilled (Levels 1-2) 339 - - - - - -Contract (Levels 1-2) 1 - - - - - -Contract (Levels 3-5) 7 - - - - - -Contract (Levels 6-8) 8 - - - - - -Contract (Levels 9-12) 30 - - - - - -Contract (Band A) 3 - - - - - -Contract (Band B) 1 - - - - - -Skilled (Levels 3-5) 672 - - - - - -Highly skilled production (Levels 6-8) 1424 - - - - - -Highly skilled supervision (Levels 9-12) 746 - - - - - -Senior Management Service Band A 51 - - - - - -Senior Management Service Band B 14 - - - - - -Senior Management Service Band C 3 - - - - - -Senior Management Service Band D 3 - - - - - -TOTAL 3302 - - - - - -
The following table provides a summary of the number of employees whose positions were upgraded due to their posts being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.
Table 3.4.2: Profi le of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2014 and 31 March 2015
Gender African Asian Coloured White TotalFemale - - - - -Male - - - - -Total - - - - -
Employees with a disability None
The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviations are provided in each case.
Table 3.4.3: Employees with salary levels higher than those determined by job evaluation by occupation for the period 1 April 2014 and 31 March 2015
Occupation Number of employees
Job evaluation level
Remuneration level
Reason for deviation
- - - - -- - - - -- - - - -
Total number of employees whose salaries exceeded the level determined by job evaluation
-
Percentage of total employed -
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The following table summarises the benefi ciaries of the above in terms of race, gender, and disability.
Table 3.4.4 Profi le of employees who have salary levels higher that those determined by job evaluation for the period 1 April 2014 and 31 March 2015
Total number of Employees whose salaries exceeded the grades determined by job evaluation None
3.5 Employment Changes This section provides information on changes in employment over the fi nancial year. Turnover rates provide an indication of trends in the employment profi le of the Department. The following tables provide a summary of turnover rates by salary band and critical occupations.
Table 3.5.1: Annual turnover rates by salary band for the period 1 April 2014 and 31 March 2015
Salary Band Number of employees at beginning of
period (1 April 2014)
Appointments and transfers
into the Department
Terminations and transfers out of the Department
Turnover rate
Lower skilled (Levels 1-2) 274 30 17 6.2Skilled (Levels 3-5) 643 12 58 9Highly skilled production (Levels 6-8) 1312 50 72 5.5Highly skilled supervision (Levels 9-12) 742 7 55 7.4Senior Management Service Band A 38 - 3 7.9Senior Management Service Band B 14 - - -Senior Management Service Band C 3 - - -Senior Management Service Band D 2 - 1 50Contract (Levels 1-2) 0 1 - -Contract (Levels 3-5) 6 5 5 83.3Contract (Levels 6-8) 17 2 12 70.6Contract (Levels 9-12) 29 14 5 17.2Contract (Band A) 2 2 - -Contract (Band B) - - 1 -TOTAL 3082 123 229 7.4
Table 3.5.2: Annual turnover rates by critical occupation for the period 1 April 2014 and 31 March 2015
Occupation Number of employees at
beginning of period (1 April 2014)
Appointments and transfers into the
department
Terminations and transfers out of the
department
Turnover rate
Agriculture animal oceanography forestry & other scientists 58 0 3 5.2Agriculture related 191 19 18 9.4Economists 29 0 2 6.9Engineering sciences related 7 0 0 0Engineers and related professionals 1 0 0 0Veterinarians 38 5 1 2.6Veterinary assistants 12 0 0 0TOTAL 336 24 24 7.1
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The table below identifi es the major reasons why staff left the Department.Table 3.5.3: Reasons why staff left the Department for the period 1 April 2014 and 31 March 2015
Termination Type Number % of Total ResignationsDeath 29 12.7Resignation 54 23.6Expiry of contract 20 8.7Dismissal – operational changes - -Dismissal - misconduct 5 2.2Dismissal - ineffi ciency - -Discharged due to ill health 2 0.9Retirement 118 51.5Transfers to other Public Service DepartmentsOther 1 0.4TOTAL 229 100Total number of employees who left as a % of total employment
7.4
The following tables provide a summary of promotions by critical occupation and salary band.
Table 3.5.4: Promotions by critical occupation for the period 1 April 2014 and 31 March 2015
Occupation Employees
(1 April 2014)
Promotions to another salary
level
Salary level promotions as a % of employees by occupation
Progressions to another
notch within a salary level
Notch progression
as a % of employees by
occupationAgriculture animal oceanography forestry & other scientists 58 0 0 42 72.4Agriculture related 191 9 4.7 127 66.5Economists 29 0 0 25 86.2Engineering sciences related 7 0 0 4 57.1Engineers and related professionals 1 0 0 1 100Veterinarians 38 1 2.6 26 68.4Veterinary assistants 12 0 0 11 91.7TOTAL 336 10 2.9 236 70.2
Table 3.5.5: Promotions by salary band for the period 1 April 2014 and 31 March 2015
Salary Band Employees (1 April 2014)
Promotions to another salary
level
Salary bands promotions as a % of employees by salary level
Progressions to another notch within a salary
level
Notch progression as a % of employees by salary band
Lower skilled (Levels 1-2) 274 - - 120 43.8Skilled (Levels 3-5) 643 3 0.5 501 77.9Highly skilled production (Levels 6-8) 1312 36 2.7 941 71.7Highly skilled supervision (Levels 9-12) 742 17 2.3 525 70.8Senior management (Levels 13-16) 57 5 8.8 25 43.9Contract (Levels 3-5) 6 - - 1 16.7Contract (Levels 6-8) 17 - - 1 5.9Contract (Levels 9-12) 29 1 3.4 10 34.5Contract (Levels 13-16) 2 3 150 0 0TOTAL 3082 65 2.1 2124 68.9
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3.6 Employment Equity Table 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as on 31 March 2015
Occupational Categories Male Female Total
African Coloured Indian White African Coloured Indian WhiteLegislators, senior offi cials and managers 19 - - 3 13 - - - 35Professionals 251 2 2 23 190 4 - 15 487Technicians and associate professionals 730 7 1 22 427 4 1 14 1206Clerks 113 3 - 1 345 11 1 10 484Service and sales workers 32 3 - - 25 - - - 60Craft and related trades workers 54 - - - - - - - 54Plant and machine operators and assemblers 49 - - - - - - - 49Elementary occupations 374 9 - - 175 6 - - 564Other 2 0 - - 3 - - - 5TOTAL 1624 24 3 49 1178 25 2 39 2944
Table 3.6.2: Total number of employees (including employees with disabilities) in each of the following occupational bands as on 31 March 2015
Occupational Band Male Female TotalAfrican Coloured Indian White African Coloured Indian White
Top Management 2 - - 1 2 - - - 5Senior Management 27 2 1 6 15 - 1 - 52Professionally qualifi ed and experienced specialists and mid-management 453 1 2 35 174 4 - 17 686Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen 606 6 - 6 636 8 1 21 1284Semi-skilled and discretionary decision making 369 10 - 1 214 9 - 1 604Unskilled and defi ned decision making 135 5 - 0 119 4 - - 263Contract (Senior Management) 3 - - - 1 - - - 4Contract (Professionally qualifi ed) 25
- - -5
- - -30
Contract (Skilled technical) 1 - - - 7 - - - 8Contract (Semi-skilled) 3 - - - 4 - - - 7Contract (Unskilled) 0 - - - 1 - - - 1TOTAL 1624 24 3 49 1178 25 2 39 2944
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Table 3.6.3: Recruitment for the period 1 April 2014 to 31 March 2015
Occupational Band
Male Female
TotalAfrican Coloured Indian White African Coloured Indian WhiteProfessionally qualifi ed and experienced specialists and mid-management
3 - - - 3 - - 1 7
Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen
19 - - - 31 - - - 50
Semi-skilled and discretionary decision making
6 - - - 6 - - - 12
Unskilled and defi ned decision making 17 - - - 13 - - - 30
Contract (Senior Management) 2 - - - 0 - - - 2
Contract (Professionally qualifi ed) 9 - - - 5 - - - 14
Contract (Skilled technical) 0 - - - 2 - - - 2Contract (Semi-skilled) 1 - - - 4 - - - 5Contract (Unskilled) 0 - - - 1 - - - 1TOTAL 57 - - - 65 - - 1 123Employees with disabilities 0 - - - 1 - - - 1
Table 3.6.4: Promotions for the period 1 April 2014 and 31 March 2015
Occupational Band Male Female TotalAfrican Coloured Indian White African Coloured Indian White
Top Management - - - - 1 - - - 1Senior Management 16 1 1 3 7 - 1 - 29Professionally qualifi ed and experienced specialists and mid-management
379 1 2 15 127 3 - 15 542
Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen
467 5 - 1 478 8 1 17 977
Semi-skilled and discretionary decision making, Permanent
312 9 - - 175 7 - 1 504
Unskilled and defi ned decision making 48 2 - - 67 3 - - 120
Contract (Top Management) 1 - - - - - - - 1Contract (Senior Management) 1 - - - 1 - - - 2
Contract (Professionally qualifi ed) 9 - - - 2 - - - 11
Contract (Skilled technical) 1 - - - 0 - - - 1Contract (Semi-skilled) 1 - - - 0 - - - 1TOTAL 1235 18 3 19 858 21 2 33 2189Employees with disabilities 10 - - - 2 - - - 12
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Table 3.6.5: Terminations for the period 1 April 2014 and March 2015
Occupational Band Male Female TotalAfrican Coloured Indian White African Coloured Indian White
Top Management - - - - 1 - - - 1Senior Management 2 - - - 1 - - - 3Professionally qualifi ed and experienced specialists and mid-management
48 - - 3 4 - - - 55
Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen
39 1 - 2 24 - - 6 72
Semi-skilled and discretionary decision making
47 - - - 11 - - - 58
Unskilled and defi ned decision making 12 - - - 5 - - - 17
Contract (Senior Management) 1 - - - 0 - - - 1
Contract (Professionally qualifi ed) 2 - - - 2 - - 1 5
Contract (Skilled technical) 5 - - - 7 - - - 12Contract (Semi-skilled) 1 - - - 4 - - - 5TOTAL 157 1 - 5 59 - - 7 229Employees with disabilities 3 - - - 1 - - - 4
Table 3.6.6: Disciplinary action for the period 1 April 2014 and 31 March 2015
Disciplinary Action Male Female TotalAfrican Coloured Indian White African Coloured Indian White
Top Management - - - 1 - - - - 1Senior Management 3 - - - 1 - - - 4Professionally qualifi ed and experienced specialists and mid-management
4 - - - 3 - - - 7
Skilled technical and academically qualifi ed workers, junior management, supervisors, foremen
2 - - - 3 - - - 5
Semi-skilled and discretionary decision making, Permanent
5 - - - - - - - 5
Unskilled and defi ned decision making 2 - - - 1 - - - 3
Contract (Professionally qualifi ed) - - - - - - - - -
Contract (Skilled technical) - - - - - - - - -Contract (Semi-skilled) - - - - - - - - -TOTAL 16 - - 1 8 - - - 25Employees with disabilities - - - - - - - - -
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Table 3.6.7: Skills development for the period 1 April 2014 to 31 March 2015
Occupational Categories Male Female TotalAfrican Coloured Indian White African Coloured Indian White
Legislators, senior offi cials and managers 34 5 1 - 51 1 1 - 93
Professionals 8 2 - 7 4 2 - 23Technicians and associate professionals 118 10 - - 44 - 172
Clerks 394 7 - 3 811 18 - 1234Service and sales workers - - - - - - - - -Skilled agriculture and fi shery workers - - - - - - - - -
Craft and related trades workers - - - - - - - - -
Plant and machine operators and assemblers - - - - - - - - -
Elementary occupations 35 - - - 96 1 - - 132Employees with disabilities - - - 1 - - -Total 589 24 1 10 1006 23 1 - 1654
3.7 Signing of Performance Agreements by SMS Members All members of the SMS must conclude and sign performance agreements within specifi c timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here.
Table 3.7.1: Signing of Performance Agreements by SMS members as on 31 March 2015
SMS Level Total number of funded SMS posts
Total number of SMS members
Signed agreements
Signed performance agreements as a %
Head of Department 1 1 1 100%Salary level 16 - - - -Salary level 15 3 3 3 100%Salary level 14 13 13 13 100%Salary level 13 35 35 32 91%Total 52 52 49 94%
Table 3.7.2: Reasons for not having concluded Performance agreements for all SMS members as on 31 March 2015
Reasons Reasons : One on Sick leave and others are new appointments
Table 3.7.3: Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2014
Reasons None
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3.8 Performance Rewards To encourage good performance, the Department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations.
Table 3.8.1: Performance Rewards by race, gender and disability for the period 1 April 2014 to 31 March 2015
Race and Gender
Benefi ciary Profi le CostNumber of
Benefi ciariesNumber of employees
% of total within groups
Cost (R'000)
Average Cost per employee (R)
AfricanMale 583 1171 49.8 5 831 10 002Female 618 1612 38.3 6 762 10 941
AsianMale 1 2 50 7 7 360Female 2 3 66.7 58 28 765
Coloured Male 17 25 68 158 9 310Female 12 24 50 83 6 902
WhiteMale 30 39 76.9 447 14 911Female 27 49 55.1 556 20 584
TOTAL 1300 2944 44.2 14 024 10 788
Table 3.8.2: Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2014 to 31 March 2015
Salary Band Benefi ciary Profi le Costs Total cost as a % of the total
personnel expenditure
Number of Benefi ciaries
Number of employees
% of Total within salary
bands
Cost (R'000)
Average Cost per
employees (R)
Lower skilled (Levels 1-2) 72 258 27.9 326 4 528Skilled (Levels 3-5) 274 605 45.3 1 518 5 540Highly skilled production (Levels 6-8) 641 1286 49.8 6 478 10 106Highly skilled supervision (Levels 9-12) 278 688 40.4 4 275 15 378Contract (Levels 1-2) 0 1 0 0 0Contract (Levels 3-5) 1 7 14.3 7 7 000Contract (Levels 6-8) 1 8 12.5 12 12 000Contract (Levels 9-12) 8 30 26.7 195 24 375Abnormal Appointment 0 74 0 0 0TOTAL 1275 2957 43.1 12811 10048
Table 3.8.3: Performance Rewards by critical occupation for the period 1 April 2014 to 31 March 2015
Critical Occupations Benefi ciary Profi le CostNumber of
Benefi ciariesNumber of employees
% of Total within
occupation
Cost (R'000)
Average Cost per employee
(R)Agriculture animal oceanography forestry & other science 29 53 54.7 513 17 690Agriculture related 86 185 46.5 1 425 16 570Economists 14 27 51.9 173 12 357
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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Critical Occupations Benefi ciary Profi le CostNumber of
Benefi ciariesNumber of employees
% of Total within
occupation
Cost (R'000)
Average Cost per employee
(R)
Engineering sciences related 3 7 42.9 91 30 333Engineers and related professionals 1 1 100 20 20 000Veterinarians 16 42 38.1 402 25 125Veterinary assistants 4 12 33.3 54 13 500
TOTAL 153 327 46.8 2 678 17503
Table 3.8.4: Performance related rewards (cash bonus), by salary band for Senior Management Service for the period 1 April 2014 to 31 March 2015
Salary Band
Benefi ciary Profi le Cost Total cost as a % of the total
personnel expenditure
Number of Benefi ciaries
Number of employees
% of total within salary
bands
Total cost (R'000)
Average Cost per
employee (R)
Band A 20 41 48.8 910 45 500 2.2
Band B 5 15 33.3 304 60 800 1.7
Band C - 3 - - - -
Band D - 2 - - - -
TOTAL 25 61 41 1214 48560 2.1
3.9 Foreign Workers
The tables below summarise the employment of foreign nationals in the Department in terms of salary band and major occupation.
Table 3.9.1: Foreign workers by salary band for the period 1 April 2014 and 31 March 2015
Salary Band 1 April 2014 31 March 2015 ChangeNumber % of total Number % of total Number % Change
Lower skilled - - - - - -Highly skilled production (Level 6-8) Highly skilled supervision (Levels 9-12) 4 18.2 3 13 -1 -100Senior management (Levels 13-16) 1 4.5 1 4.3 - -Contract (Levels 6-8) 1 4.5 1 4.3 - -Contract (Levels 9-12) 16 72.7 18 78.3 2 200TOTAL 22 100 23 100 1 100
Table 3.9.2: Foreign workers by major occupation for the period 1 April 2014 and 31 March 2015
Major Occupation 01 April 2014 31 March 2015 ChangeNumber % of total Number % of total Number % Change
Professionals and managers 21 95.5 22 95.7 1 100Technicians and associated professionals 1 4.5 1 4.3 - -
TOTAL 22 100 23 100 1 100
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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3.10 Leave utilisation
The Public Service Commission has identifi ed the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.
Table 3.10.1: Sick leave for the period 1 January 2014 to 31 December 2014Salary Band Total
Days% Days with
Medical certifi cation
Number of employees using sick
leave
% of total employees using sick
leave
Average days per employee
Estimated Cost (R'000)
Lower skilled (Levels 1-2) 1623 86.8 182 10.9 9 685Skilled (Levels 3-5) 2842 87 353 21 8 1 633Highly skilled production (Levels 6-8) 5710 87.7 723 43.1 8 6 399Highly skilled supervision (Levels 9-12) 2726 86.8 369 22 7 5 210Senior management (Levels 13-16) 244 88.9 34 2 7 890Contract (Levels 3-5) 1 0 1 0.1 1 1Contract (Levels 6-8) 64 93.8 6 0.4 11 71Contract (Levels 9-12) 21 61.9 8 0.5 3 45Contract (Levels 13-16) 5 100 1 0.1 5 16TOTAL 13236 87.2 1677 100 8 14950
Table 3.10.2: Disability leave (temporary and permanent) for the period 1 January 2014 to 31 December 2014
Salary Band Total days
% Days with Medical
certifi cation
Number of employees
using disability
leave
% of total employees
using disability
leave
Average days per employee
Estimated Cost
(R'000)
Lower skilled (Levels 1-2) 73 100 4 13.8 18 31Skilled (Levels 3-5) 162 100 7 24.1 23 88Highly skilled production (Levels 6-8) 354 100 15 51.7 24 414Highly skilled supervision (Levels 9-12) 152 100 3 10.3 51 345Senior Management (Level 13-16)TOTAL 741 100 29 100 26 878
The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.
Table 3.10.3: Annual Leave for the period 1 January 2014 to 31 December 2014
Salary Band Total days taken
Average Days of Employees using annual
leave
Average per employee
Lower skilled (Levels 1-2) 5303 21 252Skilled (Levels 3-5) 15691.25 25 638Highly skilled production (Levels 6-8) 29393 23 1278Highly skilled supervision (Levels 9-12) 17109 24 721Senior management (Levels 13-16) 1209 22 56Contract (Levels 3-5) 51 9 6Contract (Levels 6-8) 88 7 12Contract (Levels 9-12) 258 9 29Contract (Levels 13-16) 16 8 2TOTAL 69118.25 23 2994
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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Table 3.10.4: Capped leave for the period 1 January 2014 to 31 December 2014
Salary band Total days of capped leave
taken
Number of employees
using capped leave
Average number of days taken per employee
Average capped leave per
employee as on (31 December
2014)
Lower skilled (Levels 1-2) - - - -Skilled (Levels 3-5) 115 12 10 84Highly skilled production (Levels 6-8) 159 22 7 121Highly skilled supervision (Levels 9-12) 93 7 13 134Senior management (Levels 13-16) 1 1 1 119TOTAL 368 42 9 113
The following table summarise payments made to employees as a result of leave that was not taken.
Table 3.10.5: Leave pay-outs for the period 1 April 2014 and 31 March 2015
Reason Total Amount (R'000)
Number of Employees
Average per Employee
(R’000)
Leave pay out for 2014/15 due to non-utilisation of leave for the previous cycle 17 1 17000Capped leave pay out on termination of service for 2014/15 16 976 148 114703Current leave pay out on termination of service for 2014/15 840 40 21000TOTAL 17833 189 94354
3.11 HIV/AIDS & Health Promotion Programmes
Table 3.11.1: Steps taken to reduce the risk of occupational exposure
Units/categories of employees identifi ed to be at high risk of contracting HIV-related diseases (if any)
Key steps taken to reduce the risk
The nature of services that are provided by the Department does not expose employees to increased risk of contracting HIV/Aids.
The Department managed to conduct prevention programs for the employees addressing modes of transmission on HIV/AIDS and TB.
HIV/Aids counselling and Voluntary testing (VCT) and wellness screening sessions were conducted in general.
Despite the very low occupational risk, a total of 504 employees were reached.
Table 3.11.2: Details of Health Promotion and HIV/AIDS Programmes (tick the applicable boxes and provide the required information)
Question Yes No Details, if yes1. Has the Department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.
Yes Mrs Shitlhelani who is Director Corporate Advisory Services she fulfi ls this role.
2. Does the Department have a dedicated unit or have you designated specifi c staff members to promote health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.
Yes A designated Employee Health and Wellness Unit within the Chief Directorate Corporate Services which has a responsibility to promote the health and well-being of employees in the departments. The unit consists of a Deputy Director, two Assistant Directors and seven wellness practitioners.
Budget: R323 895.00
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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Question Yes No Details, if yes3. Has the Department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of the programme.
Yes The following interventions were implemented by the department: employee induction, stress management, work life balance, personal fi nance, managerial referral, substance abuse and fi nancial well-being. These interventions were planned based on the analysis of sick leave trends due to life style diseases and stress related prognosis. The targeted interventions were aimed at assisting employees to effectively balanced their lives and work responsibilities resulting in reduction in absenteeism.
4. Has the Department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.
Yes Six employee health and wellness committees were established.
5. Has the Department reviewed the employment policies and practices of your department to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.
Yes Employment Equity Policy and Recruitment policies in accordance with legislation.
6. Has the Department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures.
Yes The Department has the HIV/AIDS and TB Management policy and the Health and Productivity management policy in place which promotes protection of the rights of employees living with HIV/AIDS and TB. The EAP practitioners are bound by the professional ethics and Employee Assistance Professionals Associations (EAPASA) standards which enforce adherence to confi dentiality.
7. Does the Department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have achieved.
Yes The Department is committed in the promotion of VCT for early detection and preventive efforts to reduce the TB transmission in the workplace, this has resulted in 81 employees tested for HIV&AIDS and 29 screened for TB.
8. Has the Department developed measures/indicators to monitor & evaluate the impact of your health promotion programme? If so, list these measures/indicators.
Yes The EHWP is monitored through quarterly and annual reporting.
Knowledge, Attitude, Behaviour and Prevalence (KABP) Survey was conducted in order to develop interventions that are more targeting HIV & AIDS and Wellness Workplace Programme.
Evaluation of the Retirement Preparation Programme was done with employees.
3.12 Labour Relations
Table 3.12.1: Collective agreements for the period 1 April 2014 and 31 March 2015
Total number of Collective agreements None
The following table summarises the outcome of disciplinary hearings conducted within the Department for the year under review.
Table 3.12.2: Misconduct and disciplinary hearings fi nalised for the period 1 April 2014 and 31 March2015
Outcomes of disciplinary hearings Number Percentage of TotalCorrectional counselling 1 12%Verbal warning 0 0Written warning 0 0Final written warning 3 33%Suspended without pay 3 33%
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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Fine 0 0Demotion 0 0Dismissal 2 22%Not guilty 0 0Case withdrawn 0 0Total 9 100%
Total number of Disciplinary hearings fi nalised 5
Table 3.12.3: Types of misconduct addressed at disciplinary hearings for the period 1 April 2014 and 31 March 2015
Type of misconduct Number Percentage of Total
Alleged Fraud 2 20%Absence Without Authority 2 20%Alleged poor work performance 0 0Misuse of Govt. vehicles 0 0Wilful damage or negligence of government property 0 0Alleged Financial Mismanagement 1 10%Alleged Assault 1 10%Alleged Insubordination 4 40%Alleged under infl uence of alcohol 0 0TOTAL 10 100%
Table 3.12.4: Grievances logged for the period 1 April 2014 and 31 March 2015
Grievances Number Percentage of TotalNumber of grievances resolved 6 55%Number of grievances not resolved 5 45%Total number of grievances lodged 11 100%
Table 3.12.5: Disputes logged with Councils for the period 1 April 2014 and 31 March 2015
Disputes Number % of totalNumber of disputes upheld 6 86%Number of disputes dismissed 1 14%Total number of disputes lodged 7 100%
Table 3.12.6: Strike actions for the period 1 April 2014 and 31 March 2015
No strike took place.
Table 3.12.7: Precautionary suspensions for the period 1 April 2014 and 31 March 2015
Number of people suspended 2Number of people whose suspension exceeded 60 days 2Average number of days suspended 450Cost (R'000) of suspensions R384 540.76
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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3.13 Skills development
This section highlights the efforts of the Department with regard to skills development.
Table 3.13.1: Training needs identifi ed for the period 1 April 2014 and the 31 March 2015
Occupational Categories Gender Number of employees as at 1 April
2014
Training needs identifi ed at the start of the reporting period
Total
Learnerships
Skills Programmes & other short
courses
Other forms of training
Legislators, senior offi cials and managers
Female 13 41 69 110Male 22 20 83 103
Professionals Female 209 - -Male 278 - -
Technicians and associate professionals
Female 446 - -Male 760 - -
Clerks
Female 367 50 50
Male 117 50 50Service and sales workers
Female 25 - -
Male 35 - -Skilled agriculture and fi shery workers
Female 0 - -Male 0 - -
Craft and related trades workers Female 0 - -Male 54 - -
Plant and machine operators and assemblers
Female 0 - -Male 49 - -
Elementary occupations
Female 184 225 225
Male 385 75 75Gender sub totals
Female 1244 41 344 385
Male 1700 20 208 228Total 2944 61 552 613
Table 3.13.2: Training provided for the period 1 April 2014 and 31 March 2015
Occupational Categories
Gender Number of employees as at 1 April
2014
Training provided within the reporting period TotalLearnerships Skills
Programmes & other short
courses
Other forms of training
Legislators, senior offi cials and managers
Female 13 41 53 - 94Male 22 20 40 - 60
Professionals Female 209 - 6 - 6Male 278 - 17 - 17
Technicians and associate professionals
Female 446 - 44 - 44Male 760 - 128 - 128
Clerks Female 367 - 830 - 830Male 117 - 404 - 404
Service and sales workers Female 25 - - - -Male 35 - - - -
Skilled agriculture and fi shery workers
Female 0 - - - -Male 0 - - - -
Craft and related trades workers
Female 0 - - - -Male 54 - - - -
Plant and machine operators and assemblers
Female 0 - - - -Male 49 - - - -
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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108Vibrant, equitable, sustainable rural communities and food security for all
109
Occupational Categories
Gender Number of employees as at 1 April
2014
Training provided within the reporting period TotalLearnerships Skills
Programmes & other short
courses
Other forms of training
Elementary occupations Female 184 - 97 - 97Male 385 - 35 - 35
Gender sub totals Female 1244 41 1030 - 1071Male 1700 20 624 - 644
Total 2944 61 1654 -
3.14 Injury on duty
The following tables provide basic information on injury on duty.
Table 3.14.1: Injury on duty for the period 1 April 2014 and March 2015
Nature of injury on duty Number % of totalRequired basic medical attention only 4 100Temporary Total Disablement - -Permanent Disablement - -Fatal - -Total 4 100
3.15 Utilisation of Consultants
The following tables relate information on the utilisation of consultants in the Department.
In terms of the Public Service Regulations “consultant‟ means a natural or juristic person or a partnership who or which provides in terms of a specifi c contract on an ad hoc basis any of the following professional services to a department against remuneration received from any source:
The rendering of expert advice; •
The drafting of proposals for the execution of specifi c tasks; and •
The execution of a specifi c task which is of a technical or intellectual nature, but excludes an employee • of a department.
Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2014 and 31 March 2015
Project tittle Total number of consultants that worked on project
Duration (work days) Contract value in Rand
None 0 0 R0
Total number of projects
Total individual consultants Total duration work days Total contract value in Rands
None 0 0 R0
Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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3.16 Severance Packages
Table 3.16.1: Granting of employee initiated severance packages for the period 1 April 2014 and 31 March 2015
Salary Band No of applications
received
No of applications referred to the MPSA
No of applications supported by
MPSA
No of Packages approved by department
Lower Skilled (Salary Level 1-2) 0 0 0 0Skilled (Salary Level 3-5) 0 0 0 0Highly Skilled Production (Salary Level 6-8) 0 0 0 0Highly Skilled Production (Salary Level 9-12) 0 0 0 0Senior Management (Salary Level 13 and higher) 0 0 0 0Total 0 0 0 0
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Annual Report Financial Year 2014/2015Vote 8: Department of Rural Development and Agrarian Reform
Province of the Eastern Cape
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PART E: FINANCIAL INFORMATION
REPORT OF THE AUDITOR-GENERALFor the year ended 31 March 2015
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Report of the auditor-general for the year ended 31st March 2015Report on the fi nancial statements
Introduction
1. I have audited the fi nancial statements of the Eastern Cape Department of Rural Development and Agrarian Reform set out on pages 116 to 189 which comprise the appropriation statement, the statement of fi nancial position as at 31 march 2015, the statement of fi nancial performance, and cash fl ow statement for the year then ended, as well as the notes, comprising a summary of signifi cant accounting policies and other explanatory information.
Accounting Offi cer’s responsibility for the fi nancial statements2. The account offi cer is responsible for the preparation and fair presentation of these fi nancial statements in
accordance with the Modifi ed Cash Standard 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, 2013 (Act No. 10 of 2014) (DoRA), and for such internal control as the accounting offi cer determines is necessary to enable the preparation of fi nancial statements that are free from material misstatement, whether due to fraud or error.
Auditor-general’s responsibility3. My responsibility is to express an opinion on these fi nancial statements based on my audit. I conducted
my audit in accordance with 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 fi nancial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi nancial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the fi nancial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the fi nancial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the fi nancial statements.
5. I believe that the audit evidence I have obtained is suffi cient and appropriate to provide a basis for my audit opinion.
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REPORT OF THE AUDITOR-GENERALFor the year ended 31 March 2015
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Opinion6. In my opinion, the fi nancial statements present fairly, in all material respects, the fi nancial position of the
Eastern Cape Department of Rural Development and Agrarian Reform as at 31 March 2015 and its fi nancial performance and cash fl ows for the year then ended, in accordance with the Modifi ed Cash Standards prescribed by the National Treasury and the requirements of the PFMA and DoRA.
Emphasis of matter7. I draw attention to the matter below. My opinion is not modifi ed in respect of this matter
Irregular expenditure8. As disclosed in note 21 to the fi nancial statements, irregular expenditure amounting to R5 million (2014; R12.6
million) was incurred by the department during the year ended 31 March 2015 for which goods and services were received. The irregular expenditure relates to non-compliance with the supply chain regulations.
Report on other legal and regulatory requirements9. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) and the general notice
issued in terms thereof, I have a responsibility to report fi ndings on the reported performance information against predetermined objectives for selected programmes presented in the annual performance report, non-compliance with legislation and internal control. The objective of my tests was to identify reportable fi ndings 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 objectives10. I performed procedures to obtain evidence about the usefulness and reliability of the reported performance
information for the following selected programmes presented in the annual performance report of the Department for the year ended 31 March 2015.
* Programme 3: Farmer Support and Development
* Programme 4: Veterinary Services
* Programme 8: Rural Development Coordination
11. I evaluated the reported performance information against the overall criteria of usefulness and reliability.
12. 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 defi ned, verifi able, specifi c, measurable, time bound and relevant, as required by the National Treasury’s Framework for managing programme performance information
REPORT OF THE AUDITOR-GENERALFor the year ended 31 March 2015
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(FMPPI).
13. I assessed the reliability of the reported performance information to determine whether it was valid, accurate and complete.
14. I did not raise any material fi ndings on the usefulness and reliability of the reported performance information for the selected programmes.
Additional matter15. Although I identifi ed no material fi ndings on the usefulness and reliability of the reported performance
information for the selected programmes, I draw attention to the following matter:
Achievement of planned targets16. Refer to the annual performance report on pages x to x for information on the achievement of the planned
targets for the year
Compliance with legislation17. I performed procedures to obtain evidence that the department had complied with applicable legislation
regarding fi nancial matters, fi nancial management and other related matters. My fi ndings on material non-compliance with specifi c matters in key legislation, as set out in the general notice issued in terms of the PAA, are as follows:
Procurement and contract management
18. Persons in service of the department whose close family members, partners or associates had a private or business interest in contracts awarded by the Department failed to disclose such interest, as required by Treasury Regulation 16A8.4.
19. Suffi cient appropriate audit evidence could not be obtained that quotations were awarded only to bidders who submitted a declaration on whether they are employed by the state or connected to any person employed by the state, which is prescribed in order to comply with Treasury Regulation 16A8.3.
Expenditure Management
20. Effective steps were not always taken to [prevent irregular and fruitless as well as wasteful expenditure, as required by section 38(1)(c)(ii) of the Public Finance Management Act and Treasury Regulation 9.1.1
HR Management
21. Funded vacant posts were not fi lled within 12 months as required by Public Service Regulation 1/VII/C.1A.2.
Internal Control22. I considered internal control relevant to my audit of the fi nancial statements, annual performance report and compliance with legislation. The matters reported below are limited to the signifi cant internal control defi ciencies that resulted in the fi ndings on non-compliance with legislation included in this report
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REPORT OF THE AUDITOR-GENERALFor the year ended 31 March 2015
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Leadership23. Leadership did not adequately implement their action plan to address prior year audit fi ndings in respect of
compliance with laws and regulations. As a result the internal control defi ciencies were not addressed and resulted in repeat audit fi ndings
Financial and performance management24. Management did not have adequate internal controls in place to prevent irregular expenditure. Furthermore,
management did not properly review and monitor the department’s compliance with laws and regulations in respect of fi ling vacant funded posts.
Governance25. The audit committee and internal audit department fulfi lled their legislative responsibilities within the
department, but leadership did not take appropriate action on all recommendations made by these governance structures.
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
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2.
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-1
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656
1 85
0 95
917
697
99.1
%1
740
951
1 72
9 46
8St
atut
ory A
ppro
pria
tion
--
P
rovin
cial e
quita
ble
shar
e 1
822
--
1 82
21
809
1399
.3%
1 83
01
735
TOTA
L1
870
478
--
1 87
0 47
81
852
768
17 7
1099
.1.0
%1
742
781
1 73
1 20
3
2014
/15
2013
/14
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
TOTA
L (b
roug
ht fo
rwar
d)1
870
478
1 74
2 78
1R
econ
cilia
tion
with
sta
tem
ent o
f fi n
ancia
l per
form
ance
ADD
Depa
rtmen
tal r
ecei
pts
2 41
415
993
Actu
al a
mou
nts
per s
tate
men
t of fi
nan
cial p
erfo
rman
ce (t
otal
reve
nue)
1 87
2 89
21
758
774
Actu
al a
mou
nts
per s
tate
men
t of fi
nan
cial p
erfo
rman
ce (t
otal
exp
endi
ture
)1
852
768
1 73
1 20
3
Vibrant, equitable, sustainable rural communities and food security for all
116Vibrant, equitable, sustainable rural communities and food security for all
117
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
116Vibrant, equitable, sustainable rural communities and food security for all
117
Appr
opria
tion
per e
cono
mic
cla
ssifi
catio
n20
14/1
520
13/1
4Ad
just
edAp
prop
riatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR'
000
R'00
0R'
000
R'00
0R'
000
R'00
0%
R'00
0R'
000
Cur
rent
pay
men
ts1
465
601
-(4
250
)1
461
351
1 45
6 17
95
172
99.6
1 36
2 91
91
357
802
Com
pens
atio
n of
em
ploy
ees
1 01
1 46
6-
(11
005)
1 00
0 46
11
000
458
310
096
2 12
895
9 58
8
Sala
ries
and
wag
es87
8 06
1(2
794
)(1
0 11
3)86
5 15
486
7 86
2(2
708
)10
0.3
831
173
829
254
Socia
l con
tribu
tions
133
405
2 79
4(8
92)
135
307
132
596
2 71
198
.0 1
30 9
5513
0 33
4G
oods
and
ser
vices
454
135
-6
755
460
890
455
721
5 16
998
.940
0 79
139
8 21
4Ad
min
istra
tive
fees
3 66
41
419
(1 6
35)
3 44
82
304
1 14
466
.82
475
1 97
5Ad
verti
sing
5 28
21
879
(1 3
42)
5 81
95
184
635
89.1
5 99
54
192
Min
or a
sset
s4
150
2 16
3(2
918
)3
395
3 44
9(5
4)10
1.6
7 17
65
269
Audi
t cos
ts: E
xter
nal
5 87
5(3
4)24
5 86
55
863
210
0.0
6 00
05
598
Burs
arie
s: E
mpl
oyee
s1
579
(303
)38
01
656
1 58
076
95.4
1 11
195
4C
ater
ing:
Dep
artm
enta
l ac
tivitie
s6
872
(651
)13
26
353
5 42
293
185
.39
000
8 14
2
Com
mun
icatio
n13
190
(1 8
78)
5 52
916
841
15 5
371
304
92.3
20 7
3520
586
Com
pute
r ser
vices
15 3
3365
92
701
18 6
9317
197
1 49
692
.014
184
13 5
96C
onsu
ltant
s: B
usin
ess
and
advis
ory
serv
ices
2 77
03
204
(1 6
37)
4 33
72
673
1 66
461
.63
019
2 06
3
Infra
stru
ctur
e an
d pl
anni
ng
serv
ices
16 6
95(9
999
)6
834
13 5
3010
057
3 47
374
.313
149
162
Labo
rato
ry s
ervic
es19
810
7(1
67)
138
2511
318
.160
025
Lega
l ser
vices
3 54
4(5
33)
978
3 98
93
990
(1)
100
1 64
61
779
Con
tract
ors
27 3
5496
9(3
321
)25
002
26 5
69(1
567
)10
6.3
25 4
4034
856
Agen
cy a
nd s
uppo
rt /
outs
ourc
ed s
ervic
es73
(29)
(6)
3830
878
.940
518
Ente
rtain
men
t32
8(3
27)
243
244
150
9461
.566
246
4Fl
eet s
ervic
es23
959
2 33
71
639
27 9
3527
471
464
98.3
32 8
3532
596
Inve
ntor
y: C
loth
ing
mat
eria
l an
d su
pplie
s42
435
(175
)28
427
77
97.5
785
643
Inve
ntor
y: F
arm
ing
supp
lies
145
830
(2 4
47)
166
143
549
142
551
998
99.3
87 7
7683
977
Inve
ntor
y: F
ood
and
food
su
pplie
s1
303
257
160
1 72
01
640
8095
.31
757
1 26
4
Inve
ntor
y: F
uel,
oil a
nd g
as2
011
1 32
8(1
370
)1
969
1 89
277
96.1
483
-In
vent
ory:
Lea
rner
and
teac
her
supp
ort m
ater
ial
137
(521
)48
298
-98
-41
1-
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
118Vibrant, equitable, sustainable rural communities and food security for all
119Vibrant, equitable, sustainable rural communities and food security for all
118Vibrant, equitable, sustainable rural communities and food security for all
119
Appr
opria
tion
per e
cono
mic
cla
ssifi
catio
n20
14/1
520
13/1
4Ad
just
edAp
prop
riatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR'
000
R'00
0R'
000
R'00
0R'
000
R'00
0%
R'00
0R'
000
Inve
ntor
y: M
ater
ials
and
supp
lies
1 80
922
6(8
23)
1 21
21
241
(29)
92.6
955
Inve
ntor
y: M
edica
l sup
plie
s15
147
(70)
128
611
(483
)47
7.3
370
18 2
58In
vent
ory:
Med
icine
20 1
18(7
997
)8
565
20 6
8620
380
306
98.5
18 4
29-
Inve
ntor
y: O
ther
sup
plie
s1
383
(78)
(517
)78
8-
788
-90
6-
Con
sum
able
sup
plie
s7
953
3 12
0(2
953
)8
120
8 05
466
99.2
8 31
010
073
Con
sum
able
: Sta
tione
ry,
prin
ting
and
offi c
e su
pplie
s7
026
1 68
2(2
440
)6
268
5 40
985
986
.36
967
4 95
4
Ope
ratin
g le
ases
12 5
951
870
(2 0
29)
12 4
3610
774
1 66
286
.611
067
10 0
05Pr
oper
ty p
aym
ents
12 5
55(6
14)
1 30
313
244
15 8
18(2
574
)11
9.4
12 2
0313
530
Tran
spor
t pro
vided
: D
epar
tmen
tal a
ctivi
ty
-
--
--
--
9534
Trav
el a
nd s
ubsis
tenc
e76
270
10 2
51(4
844
)81
677
89 3
69(7
692
)10
9.4
79 4
3490
157
Trai
ning
and
dev
elop
men
t17
798
(3 1
74)
2 80
417
428
13 1
394
289
75.4
11 7
2511
062
Ope
ratin
g pa
ymen
ts8
461
(4 9
16)
3 55
37
098
10 8
31(3
733
)15
2.6
6 06
613
078
Venu
es a
nd fa
cilitie
s4
388
1 34
6(2
300
)3
434
3 21
122
393
.55
362
4 71
4R
enta
l and
hiri
ng3
057
602
(191
)3
468
3 02
344
587
.33
623
3 68
9Tr
ansf
ers
and
subs
idie
s 27
0 04
0-
3 99
527
4 03
527
4 07
2(3
7)10
024
4 57
324
9 51
5D
epar
tmen
tal a
genc
ies
and
acco
unts
210
779
--
210
779
210
779
-10
019
4 19
619
4 19
6
Dep
artm
enta
l age
ncie
s an
d ac
coun
ts21
0 77
9-
-21
0 77
921
0 77
9-
100
194
196
194
196
Non
-pro
fi t in
stitu
tions
39
520
--
39 5
2039
520
-10
031
282
31 2
82H
ouse
hold
s19
741
-3
995
23 7
3623
773
(37)
100.
219
095
24 0
37So
cial b
enefi
tsO
ther
tran
sfer
s to
hou
seho
lds
19 7
41-
3 99
523
736
23 7
73(3
7)10
0.2
19 0
9524
037
Paym
ents
for c
apita
l ass
ets
114
837
-25
511
5 09
210
2 51
712
575
89.1
135
289
123
886
Build
ings
and
oth
er fi
xed
stru
ctur
es49
887
(6 8
04)
-43
083
36 4
806
603
84.7
54 2
7750
745
Build
ings
--
--
--
-54
277
50 7
45O
ther
fi xe
d st
ruct
ures
49 8
87(6
804
)-
43 0
8336
480
6 60
384
.7-
-M
achi
nery
and
equ
ipm
ent
59 2
416
714
(140
)65
815
59 9
425
873
91.1
75 9
8169
005
Tran
spor
t equ
ipm
ent
17 2
51(1
8)2
852
20 0
8519
969
116
99.4
26 1
8029
555
Oth
er m
achi
nery
and
eq
uipm
ent
41 9
906
732
(2 9
92)
45 7
3039
973
5 75
787
.449
801
39 4
50
Vibrant, equitable, sustainable rural communities and food security for all
118Vibrant, equitable, sustainable rural communities and food security for all
119
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
118Vibrant, equitable, sustainable rural communities and food security for all
119
Appr
opria
tion
per e
cono
mic
cla
ssifi
catio
n20
14/1
520
13/1
4Ad
just
edAp
prop
riatio
nSh
iftin
g of
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nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
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Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR'
000
R'00
0R'
000
R'00
0R'
000
R'00
0%
R'00
0R'
000
Biol
ogica
l ass
ets
5 70
990
395
6 19
46
095
9998
.45
031
4 13
6
Paym
ents
for fi
nan
cial a
sset
s20
000
--
20 0
0020
000
20 0
0010
0-
-TO
TAL
1 87
0 47
8-
-1
870
478
1 85
2 76
817
710
99.1
1 74
2 78
11
731
203
Stat
utor
y Ap
prop
riatio
n pe
r eco
nom
ic c
lass
ifi ca
tion
2014
/15
2013
/14
Adju
sted
Appr
opria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR'
000
R'00
0R'
000
R'00
0R'
000
R'00
0%
R'00
0R'
000
Cur
rent
pay
men
ts1
822
1 82
21
809
1310
01
830
1 73
5C
ompe
nsat
ion
of e
mpl
oyee
s1
822
--
1 82
21
809
1310
01
830
1 73
5TO
TAL
1 82
2-
-1
822
1 80
913
99.3
1 83
01
735
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
120Vibrant, equitable, sustainable rural communities and food security for all
121Vibrant, equitable, sustainable rural communities and food security for all
120Vibrant, equitable, sustainable rural communities and food security for all
121
Prog
ram
me
1: A
DMIN
ISTR
ATIO
N20
14/1
520
13/1
4Ad
just
edAp
prop
riatio
nSh
iftin
g of
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nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
Sub
prog
ram
me
R'00
0R'
000
R'00
0R'
000
R'00
0R'
000
%R'
000
R'00
01.
1. O
ffi ce
of t
he M
EC10
902
-11
211
014
10 8
7214
298
.710
615
10 7
231.
2. S
enio
r Man
agem
ent
56 4
44-
5 54
761
991
62 0
69(7
8)10
0.1
30 7
2728
308
1.3.
Cor
pora
te S
ervic
es18
0 84
7-
7 22
418
8 07
118
7 89
517
699
.918
0 30
518
4 76
91.
4. F
inan
cial M
anag
emen
t15
0 87
2-
(2 4
81)
148
391
148
416
(25)
100
157
876
156
604
1.5.
Com
mun
icatio
n Se
rvice
s6
849
-47
6 89
66
837
5999
.16
689
6 55
9To
tal f
or s
ub p
rogr
amm
es40
5 91
4-
10 4
4941
6 36
341
6 08
9 2
7499
.938
6 21
238
6 96
3
Econ
omic
class
ifi cat
ion
Cur
rent
pay
men
ts35
5 05
4-
6 45
436
1 50
836
1 86
3(3
55)
100
348
246
345
287
Com
pens
atio
n of
em
ploy
ees
256
846
-(1
948
)25
4 89
825
4 91
0(1
2)10
023
6 26
923
4 92
8Sa
larie
s an
d w
ages
224
999
(533
)(2
245
)22
2 22
122
0 47
51
746
99.2
203
482
202
142
Socia
l con
tribu
tions
31 8
4753
329
732
677
34 4
35(1
758
)10
5.4
32 7
8732
787
Goo
ds a
nd s
ervic
es98
208
-8
402
106
610
106
953
(343
)10
011
1 97
711
0 35
9Ad
min
istra
tive
fees
565
230
(283
)51
250
84
99.2
554
324
Adve
rtisin
g3
538
1 10
3(7
44)
3 89
73
514
383
90.2
3 70
82
714
Min
or a
sset
s59
282
8(9
55)
465
706
(241
)15
1.7
777
453
Audi
t cos
ts: E
xter
nal
4 12
5(1
737
)1
775
4 16
34
162
110
06
000
5 59
8Bu
rsar
ies:
Em
ploy
ees
1 57
9(3
03)
380
1 65
61
580
7695
.41
030
936
Cat
erin
g: D
epar
tmen
tal
activ
ities
451
(323
)26
038
826
212
667
.51
433
1 12
6
Com
mun
icatio
n7
476
(572
)3
894
10 7
9810
065
733
93.2
18 8
5118
751
Com
pute
r ser
vices
12 4
6487
5(2
45)
13 0
9412
937
157
98.8
12 1
3511
723
Con
sulta
nts:
Bus
ines
s an
d ad
visor
y se
rvice
s1
960
899
(827
)2
032
1 87
515
792
.32
769
2 06
3
Infra
stru
ctur
e an
d pl
anni
ng
serv
ices
2(3
28)
328
2-
2-
50-
Labo
rato
ry s
ervic
es14
211
3(1
42)
113
-11
3-
--
Lega
l ser
vices
3 54
4(8
53)
978
3 66
93
669
-10
01
646
1 77
9C
ontra
ctor
s1
391
(65)
(100
)1
226
1 21
610
99.2
394
359
Agen
cy a
nd s
uppo
rt /
outs
ourc
ed s
ervic
es33
33(3
3)33
303
90.9
4011
Ente
rtain
men
t15
5(1
62)
140
133
8845
66.2
332
260
Flee
t ser
vices
6 46
7(1
162
)5
231
10 5
3610
072
464
95.6
9 81
19
777
Inve
ntor
y: C
loth
ing
mat
eria
l an
d su
pplie
s33
2(2
)33
33-
100
148
131
Vibrant, equitable, sustainable rural communities and food security for all
120Vibrant, equitable, sustainable rural communities and food security for all
121
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
120Vibrant, equitable, sustainable rural communities and food security for all
121
Prog
ram
me
1: A
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ISTR
ATIO
N20
14/1
520
13/1
4Ad
just
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riatio
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% o
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Fina
lAp
prop
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nditu
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Sub
prog
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me
R'00
0R'
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R'00
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000
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000
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ory:
Far
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s28
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468
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396
299
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287
1 24
8In
vent
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Foo
d an
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lies
679
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)45
768
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34
99.4
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639
Inve
ntor
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uel,
oil a
nd g
as24
(9)
1530
-30
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vent
ory:
Lea
rner
and
te
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r sup
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mat
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l-
--
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79-
Inve
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y: M
ater
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and
supp
lies
6549
(46)
6811
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3)16
3.2
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ntor
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edica
l sup
plie
s1
1(1
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100
4656
Inve
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sup
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s-
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uppl
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981
847
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)97
81
126
(148
)11
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0 2
413
Con
sum
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: Sta
tione
ry,
prin
ting
and
offi c
e su
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s2
429
686
(444
)2
671
2 41
525
690
.42
789
1 65
3
Ope
ratin
g le
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10 4
652
175
(1 7
94)
10 8
469
452
1 39
487
.18
853
8 27
2Pr
oper
ty p
aym
ents
9 26
159
426
610
121
13 1
00(2
979
)12
9.4
8 14
610
252
Trav
el a
nd s
ubsis
tenc
e21
257
(883
)55
220
926
22 0
84(1
158
)10
5.5
19 1
5620
582
Trai
ning
and
dev
elop
men
t5
274
(289
)11
55
100
4 39
470
686
.23
960
3 48
1O
pera
ting
paym
ents
1 65
2(7
96)
207
1 06
31
568
(505
)14
7.5
2 79
03
815
Venu
es a
nd fa
cilitie
s1
167
208
(519
)85
679
066
92.2
949
900
Ren
tal a
nd h
iring
148
(321
)28
811
511
6(1
)10
0.9
776
1 04
3
Tran
sfer
s an
d su
bsid
ies
19 7
41-
3 99
523
736
23 7
73(3
7)10
0.2
19 0
9524
037
Hou
seho
lds
19 7
41-
3 99
523
736
23 7
73(3
7)10
0.2
19 0
9524
037
Socia
l ben
efi ts
Oth
er tr
ansf
ers
to
hous
ehol
ds19
741
-3
995
23 7
3623
773
(37)
100.
219
095
24 0
37
--
Paym
ents
for c
apita
l ass
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11 1
19-
-11
119
10 4
5366
694
18 8
7117
639
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achi
nery
and
equ
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11 1
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-11
119
10 4
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spor
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2 24
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nery
and
eq
uipm
ent
8 87
2-
-8
872
8 21
565
792
.610
864
9 63
2
--
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
122Vibrant, equitable, sustainable rural communities and food security for all
123Vibrant, equitable, sustainable rural communities and food security for all
122Vibrant, equitable, sustainable rural communities and food security for all
123
Prog
ram
me
1: A
DMIN
ISTR
ATIO
N20
14/1
520
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riatio
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tual
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nditu
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5 91
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927
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3
1.1
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ce o
f the
MEC
2014
/15
2013
/14
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sted
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opria
tion
Shift
ing
of
Fund
sVi
rem
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lAp
prop
riatio
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tual
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nditu
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rianc
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pend
iture
as %
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nal
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nditu
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cla
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rent
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men
ts10
722
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210
834
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7262
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10 2
8210
393
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pens
atio
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ploy
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5 61
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5 09
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4 70
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796
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5 68
273
98.7
5 58
15
597
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for c
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180
--
180
100
8055
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333
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achi
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180
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10 9
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11 0
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872
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24 2
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56 4
44-
5 54
761
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62 0
69(7
8)10
0.1
30 7
2728
308
Vibrant, equitable, sustainable rural communities and food security for all
122Vibrant, equitable, sustainable rural communities and food security for all
123
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
122Vibrant, equitable, sustainable rural communities and food security for all
123
1.3
Corp
orat
e Se
rvic
es20
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ts15
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167
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219
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s6
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6 09
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0 84
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118
7 89
517
699
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9
1.4
Fina
ncia
l Man
agem
ent
2014
/15
2013
/14
Adju
sted
Appr
opria
-tio
n
Shift
ing
of
Fund
sVi
rem
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Fina
lAp
prop
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nAc
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Expe
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pend
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cla
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rent
pay
men
ts14
6 95
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(2 5
33)
144
418
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648
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014
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914
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mpl
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5 13
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605
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605
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8 10
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7 77
1G
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and
ser
vices
21 8
14-
(1)
21 8
1322
043
(230
)10
0.1
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1029
913
Paym
ents
for c
apita
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3 92
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523
973
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594
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966
8 92
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achi
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3 92
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L15
0 87
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416
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88.6
157
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1.5
Com
mun
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Serv
ices
2014
/15
2013
/14
Adju
sted
Appr
opria
-tio
n
Shift
ing
of
Fund
sVi
rem
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Fina
lAp
prop
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cla
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000
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pay
men
ts6
647
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6 74
66
732
1499
.86
499
6 37
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s4
346
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4 44
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04
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4 18
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2 30
1-
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301
2 28
714
99.4
2 31
32
191
Paym
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for c
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ets
202
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010
545
7019
218
4M
achi
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and
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202
-(5
2)15
010
545
7019
218
4TO
TAL
6 84
9-
476
896
6 83
759
99.1
6 68
96
559
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
124Vibrant, equitable, sustainable rural communities and food security for all
125Vibrant, equitable, sustainable rural communities and food security for all
124Vibrant, equitable, sustainable rural communities and food security for all
125
Prog
ram
me
2: S
USTA
INAB
LE R
ESO
URCE
MAN
AGEM
ENT
2014
/15
2013
/14
Adju
sted
Appr
opria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
Sub
prog
ram
me
R'00
0R'
000
R'00
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000
R'00
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000
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000
R'00
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1 En
gine
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g Se
rvice
70 0
44-
(2 3
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67 7
4263
980
3 76
294
.463
978
62 2
432.
2 La
nd C
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11 8
53-
-11
853
10 9
9286
192
.716
645
15 1
772.
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nd u
se m
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075
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49 6
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101.
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529
61 7
712.
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2 93
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ub p
rogr
amm
es13
7 95
4-
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131
538
127
538
4 00
097
.014
6 14
214
2 12
7
Econ
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cla
ssifi
catio
nC
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nt p
aym
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122
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(6
252
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6 69
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6 32
936
699
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4 76
313
1 81
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mpe
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s85
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743
79 7
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854
85 9
96Sa
larie
s an
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75 2
21(2
22)
(5 4
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69 5
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335
223
99.7
72 4
0072
193
Socia
l con
tribu
tions
10 4
6322
2(5
00)
10 1
8510
409
(224
)10
2.2
13 4
5413
803
Goo
ds a
nd s
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37 2
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(311
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952
36 5
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0945
821
Adm
inist
rativ
e fe
es46
295
(94)
463
425
3891
.853
438
4Ad
verti
sing
538
(10)
293
821
585
236
71.3
1 09
374
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inor
ass
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371
(28)
333
676
359
317
53.1
1 08
486
0C
ater
ing:
Dep
artm
enta
l ac
tivitie
s65
2(5
0)96
698
558
140
79.9
1 40
11
330
Com
mun
icatio
n15
(245
)24
515
--15
-86
52C
ompu
ter s
ervic
es86
214
1(2
23)
780
775
599
.489
288
8In
frast
ruct
ure
and
plan
ning
se
rvice
s6
832
100
(100
)6
832
6 67
615
697
.78
296
-
Con
tract
ors
9 86
3(1
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7 28
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(1 8
75)
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713
522
19 8
32En
terta
inm
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7(3
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25Fl
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es3
793
--
3 79
33
783
1099
.72
962
2 93
6In
vent
ory:
Far
min
g su
pplie
s58
455
062
71
761
590
1 17
133
.51
431
1 01
6In
vent
ory:
fuel
, oil a
nd g
as-
--
--
--
5-
Inve
ntor
y: L
earn
er a
nd te
ache
r su
ppor
t mat
eria
l-
(50)
50-
--
-30
-
Inve
ntor
y: M
ater
ials
and
supp
lies
3-
-3
21
66.7
404
-
Inve
ntor
y: O
ther
sup
plie
s20
(315
)30
813
-13
--
6C
onsu
mab
le s
uppl
ies
798
189
363
1 35
082
752
361
.393
275
3C
onsu
mab
les:
Sta
tione
ry,
prin
ting
and
offi c
e su
pplie
s78
616
0(1
57)
789
735
5493
.21
328
959
Ope
ratin
g le
ases
211
31(7
0)17
214
923
86.6
326
182
Vibrant, equitable, sustainable rural communities and food security for all
124Vibrant, equitable, sustainable rural communities and food security for all
125
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
124Vibrant, equitable, sustainable rural communities and food security for all
125
Prog
ram
me
2: S
USTA
INAB
LE R
ESO
URCE
MAN
AGEM
ENT
2014
/15
2013
/14
Adju
sted
Appr
opria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
Sub
prog
ram
me
R'00
0R'
000
R'00
0R'
000
R'00
0R'
000
%R'
000
R'00
0Pr
oper
ty p
aym
ents
5532
(35)
5242
1080
.818
914
0Tr
ansp
ort p
rovid
ed:
Dep
artm
enta
l act
ivity
--
--
--
-35
34
Trav
el a
nd s
ubsis
tenc
e9
858
2 26
0(2
041
)10
077
10 5
47(4
70)
104.
711
951
12 4
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aini
ng a
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ent
290
153
(201
)24
214
110
158
.310
711
8O
pera
ting
paym
ents
839
(1 0
54)
972
757
879
(122
)11
6.1
862
1 81
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nues
and
facil
ities
365
29(8
8)30
629
313
95.8
1 31
71
184
Ren
tal a
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591
(1)
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493
.284
69Pa
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r cap
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s15
007
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14 8
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475
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379
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6 77
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3 57
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201
52.8
5 41
95
255
Build
ings
5 41
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er fi
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es6
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--
6 77
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574
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)8
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2 20
51
603
Tota
l13
7 95
4-
(6 4
16)
131
538
127
538
4 00
097
146
142
142
127
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
126Vibrant, equitable, sustainable rural communities and food security for all
127Vibrant, equitable, sustainable rural communities and food security for all
126Vibrant, equitable, sustainable rural communities and food security for all
127
SUB
-PR
OG
RA
MM
E 2.
1: E
NG
INEE
RIN
G S
ERVI
CE
2014
/15
2013
/14
Adj
uste
dA
ppro
pria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lA
ppro
pria
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Act
ual
Expe
nditu
reVa
rianc
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pend
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as %
of fi
nal
ap
prop
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Fina
lA
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nditu
re
Econ
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cla
ssifi
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'000
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ts57
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247
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6837
999
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993
53 7
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s42
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100
43 8
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15 1
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14 5
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.511
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12 4
959
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984
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Build
ings
and
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xed
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ctur
es6
775
--
6 67
53
574
3 20
152
.85
232
5 06
9
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quip
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t5
884
-(1
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5 72
05
538
182
96.8
3 75
23
452
Tota
l70
044
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302
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742
63 9
803
762
94.4
63 9
7862
243
SUB
-PR
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MM
E 2.
2: L
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14/1
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ted
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11 8
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pens
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--
--
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-G
oods
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ser
vice
s11
853
--
11 8
5310
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861
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16 4
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Paym
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for c
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--
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--
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Tota
l11
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--
11 8
5310
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15
177
SUB
-PR
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MM
E 2.
3: L
AN
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T20
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App
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s7
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14Pa
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s2
348
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81
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Mac
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men
t2
348
--
2 34
82
097
251
89.3
2 20
81
603
Vibrant, equitable, sustainable rural communities and food security for all
126Vibrant, equitable, sustainable rural communities and food security for all
127
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
126Vibrant, equitable, sustainable rural communities and food security for all
127
SUB
-PR
OG
RA
MM
E 2.
3: L
AN
D U
SE M
AN
AG
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T20
14/1
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101.
462
529
61 7
71
SUB
-PR
OG
RA
MM
E 2.
4: D
ISA
STER
RIS
K M
AN
AG
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T20
14/1
520
13/1
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ted
App
ropr
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tion
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sVi
rem
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Fina
lA
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pend
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as %
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'000
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Cur
rent
pay
men
ts2
982
--
2 98
22
937
4598
.52
990
2 93
6G
oods
and
ser
vice
s2
982
--
2 98
22
937
4598
.52
990
2 93
6To
tal
2 98
2-
-2
982
2 93
745
98.5
2 99
02
936
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
128Vibrant, equitable, sustainable rural communities and food security for all
129Vibrant, equitable, sustainable rural communities and food security for all
128Vibrant, equitable, sustainable rural communities and food security for all
129
Prog
ram
me
3: F
ARM
ER S
UPPO
RT A
ND D
EVEL
OPM
ENT
2014
/15
2013
/14
Adju
sted
Appr
opria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
Sub
prog
ram
me
R'00
0R'
000
R'00
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000
R'00
0R'
000
%R'
000
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03.
1 Fa
rmer
Set
tlem
ent
60 3
55-
1 32
061
675
54 2
157
460
87.9
85 2
7177
779
3.2
Exte
nsio
n an
d Ad
visor
y Se
rvice
359
066
-(1
976
)35
7 09
036
0 55
3(3
463
)10
134
7 29
835
8 12
83.
3 Fo
od S
ecur
ity15
2 12
6-
(200
)15
1 92
614
9 59
82
328
98.5
120
126
117
753
Tota
l for
sub
pro
gram
mes
571
547
-(8
56)
570
691
564
366
6 32
598
.955
2 69
555
3 66
0
Econ
omic
cla
ssifi
catio
nC
urre
nt p
aym
ents
514
339
-(8
06)
513
533
509
824
3 70
999
.345
1 56
645
5 42
7Co
mpe
nsat
ion
of e
mpl
oyee
s29
4 92
0-
(768
)29
4 15
229
4 14
75
100
286
471
286
420
Sala
ries
and
wag
es24
1 54
14
141
(850
)24
4 83
225
5 71
7(1
0 88
5)10
4.4
249
828
249
778
Socia
l con
tribu
tions
53 3
79(4
141
)82
49 3
2038
430
10 8
9077
.936
643
36 6
42G
oods
and
ser
vice
s21
9 41
9-
(83)
219
381
215
677
3 70
498
.316
5 09
516
9 00
7Ad
min
istra
tive
fees
1 63
61
100
(1 1
66)
1 57
060
097
038
.240
236
1Ad
verti
sing
456
(65)
(120
)27
126
56
97.8
573
557
Min
or a
sset
s1
597
551
(1 2
74)
874
1 28
2(4
08)
146.
72
225
1 54
2C
ater
ing:
Dep
artm
enta
l ac
tivitie
s2
490
(826
)41
32
077
2 06
512
99.4
3 41
13
353
Com
mun
icatio
n4
742
(2 0
82)
1 98
34
643
4 64
12
100
1 52
01
511
Com
pute
r ser
vices
1 54
4(2
688
)3
375
2 23
191
31
318
40.9
697
697
Con
sulta
nts:
Bus
ines
s an
d ad
visor
y se
rvice
s-
--
--
--
--
Infra
stru
ctur
e an
d pl
anni
ng
serv
ices
1 80
5(2
211
)4
880
4 47
41
527
2 94
734
.12
407
-
Labo
rato
ry s
ervic
es31
(31)
--
--
-55
0-
Con
tract
ors
12 3
552
192
(2 8
95)
11 6
5211
571
8199
.311
091
12 5
60Ag
ency
and
sup
port/
ou
tsou
rced
ser
vices
--
--
--
--
507
Ente
rtain
men
t64
(59)
2227
216
77.8
9153
Flee
t ser
vices
8 26
44
062
(4 1
05)
8 22
15
628
2 59
368
.517
062
16 8
93H
ousin
g-
-In
vent
ory:
Clo
thin
g m
ater
ial
and
supp
lies
296
83(2
25)
154
155
(1)
100.
613
111
5
Inve
ntor
y: F
arm
ing
supp
lies
139
173
(873
)(1
428
)13
6 87
213
7 62
1(7
49)
100.
582
358
79 2
14In
vent
ory:
Foo
d an
d fo
od
supp
lies
268
98(5
3)31
331
21
99.7
589
575
Inve
ntor
y: F
uel,
oil a
nd g
as1
413
1 38
6(1
407
)1
392
1 39
11
99.9
54-
Vibrant, equitable, sustainable rural communities and food security for all
128Vibrant, equitable, sustainable rural communities and food security for all
129
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
128Vibrant, equitable, sustainable rural communities and food security for all
129
Prog
ram
me
3: F
ARM
ER S
UPPO
RT A
ND D
EVEL
OPM
ENT
2014
/15
2013
/14
Adju
sted
Appr
opria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
lAp
prop
riatio
nAc
tual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lAp
prop
riatio
nAc
tual
expe
nditu
re
Sub
prog
ram
me
R'00
0R'
000
R'00
0R'
000
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0R'
000
%R'
000
R'00
0In
vent
ory:
Lea
rner
and
teac
her
supp
ort m
ater
ial
--
Inve
ntor
y: M
ater
ials
and
supp
lies
1 14
874
6(1
146
)74
874
53
99.6
41-
Inve
ntor
y: M
edica
l sup
plie
s13
-
(13)
-47
(47)
--
314
Inve
ntor
y: M
edici
ne91
108
(151
)48
48-
100.
05
-In
vent
ory:
Oth
er s
uppl
ies
4747
(47)
47-
47-
--
Con
sum
able
sup
plie
s4
556
2 16
3(2
346
)4
373
4 30
370
98.4
2 94
04
085
Con
sum
able
: Sta
tione
ry,
prin
ting
and
offi c
e su
pplie
s1
842
294
(949
)1
187
1 09
196
91.9
1 21
21
092
Ope
ratin
g le
ases
734
(588
)52
867
460
272
89.3
1 38
91
275
Prop
erty
pay
men
ts1
350
(1 6
84)
1 64
71
313
1 31
21
99.9
1 99
71
917
Trav
el a
nd s
ubsis
tenc
e21
313
1 45
11
662
24 4
2626
480
(2 0
54)
108.
423
818
28 1
02Tr
aini
ng a
nd d
evel
opm
ent
4 64
6(2
802
)2
854
4 69
84
471
227
95.2
4 71
85
927
Ope
ratin
g pa
ymen
ts3
529
(1 6
04)
1 27
43
199
4 77
4(1
575
)14
9.2
1 18
34
166
Venu
es a
nd fa
cilitie
s1
955
843
(1 1
20)
1 67
81
641
3797
.82
541
2 23
9R
enta
l and
hiri
ng2
061
389
(231
)2
219
2 17
148
97.8
2 03
01
952
Tran
sfer
s an
d su
bsid
ies
--
--
--
-38
000
38 0
00D
epar
tmen
tal a
genc
ies
and
acco
unts
--
--
--
-38
000
38 0
00
Dep
artm
enta
l age
ncie
s-
--
--
--
38 0
0038
000
Paym
ents
for c
apita
l ass
ets
57 2
08-
(50)
57 1
5854
542
2 61
695
.463
129
60 2
33Bu
ildin
gs a
nd o
ther
fi xe
d st
ruct
ures
29 6
04-
-29
604
27 8
421
762
9432
465
26 9
07
Build
ings
--
--
--
-32
465
26 9
07O
ther
fi xe
d st
ruct
ures
29 6
04-
-29
604
27 8
421
762
94-
-M
achi
nery
and
equ
ipm
ent
27 6
04-
(50)
27 5
5426
700
854
96.9
30 6
6433
326
Tran
spor
t equ
ipm
ent
9 88
8(1
)1
9 88
89
877
1199
.913
500
17 9
36O
ther
mac
hine
ry a
nd
equi
pmen
t17
716
1(5
1)17
666
16 8
2384
395
.217
164
15 3
90
Tota
l57
1 54
7-
(856
)57
0 69
156
4 36
66
325
98.9
552
695
553
660
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
130Vibrant, equitable, sustainable rural communities and food security for all
131Vibrant, equitable, sustainable rural communities and food security for all
130Vibrant, equitable, sustainable rural communities and food security for all
131
SUB
-PR
OG
RA
MM
E 3.
1: F
AR
MER
SET
TLEM
ENT
2014
/15
2013
/14
Adj
uste
dA
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
lA
ppro
pria
tion
Act
ual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lA
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00%
R'0
00R
'000
Cur
rent
pay
men
ts28
0 05
4-
1 37
029
424
23 8
195
605
81.0
46 5
5545
665
Com
pens
atio
n of
em
ploy
ees
12 0
97-
408
12 5
0512
504
110
017
726
17 6
76G
oods
and
ser
vice
s15
957
-96
216
919
11 3
155
604
66.9
28 8
2927
989
Paym
ents
for c
apita
l ass
ets
32 3
01-
(50)
32 2
5130
396
1 85
594
.438
716
32 1
14Bu
ildin
gs a
nd o
ther
fi xe
d st
ruct
ures
27 3
50-
-27
350
25 6
741
676
93.9
29 9
4524
653
Mac
hine
ry a
nd e
quip
men
t4
951
-(5
0)4
901
4 72
217
997
.38
771
7 46
1To
tal
60 3
55-
1 32
061
675
54 2
157
460
87.9
85 2
7177
779
SUB
-PR
OG
RA
MM
E 3.
2: E
XTEN
SIO
N A
ND
AD
VISO
RY S
ERVI
CES
2014
/15
2013
/14
Adj
uste
dA
ppro
pria
-tio
n
Shift
ing
of
Fund
sVi
rem
ent
Fina
lA
ppro
pria
tion
Act
ual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lA
ppro
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tion
Act
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expe
nditu
re
Econ
omic
cla
ssifi
catio
nR
'000
R'0
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'000
R'0
00R
'000
R'0
00%
R'0
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'000
Cur
rent
pay
men
ts33
7 24
0-
(1 9
76)
335
264
338
229
(3 9
65)
101.
032
4 31
433
1 17
1C
ompe
nsat
ion
of e
mpl
oyee
s28
0 02
5-
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76)
278
049
278
045
410
026
6 37
326
6 37
3G
oods
and
ser
vice
s57
215
--
57 2
1561
184
(3 9
69)
106.
957
941
64 7
98Pa
ymen
ts fo
r cap
ital a
sset
s21
826
--
21 8
2621
324
502
99.7
22 9
8326
956
Build
ings
and
oth
er fi
xed
stru
ctur
es-
--
--
--
1 23
11
122
Mac
hine
ry a
nd e
quip
men
t21
826
--
21 8
2621
324
502
99.7
21 7
5225
834
Tota
l35
9 06
6-
(1 9
76)
357
090
360
553
(3 4
63)
101
347
298
358
128
Vibrant, equitable, sustainable rural communities and food security for all
130Vibrant, equitable, sustainable rural communities and food security for all
131
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
130Vibrant, equitable, sustainable rural communities and food security for all
131
SUB
-PR
OG
RA
MM
E 3.
3: F
OO
D S
ECU
RIT
Y20
14/1
520
13/1
4A
djus
ted
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tion
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rem
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lA
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pend
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as %
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nal
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Fina
lA
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nditu
re
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Cur
rent
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men
ts14
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5-
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514
6 77
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069
98.6
80 6
9678
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Com
pens
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ploy
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2 79
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3 59
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598
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02
371
2 37
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ser
vice
s14
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247
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--
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38 0
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l age
ncie
s an
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coun
ts-
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38 0
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Paym
ents
for c
apita
l ass
ets
3 08
1-
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081
2 82
225
991
.61
430
1 16
3Bu
ildin
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fi xe
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2 25
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254
2 16
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Mac
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131
Tota
l15
2 12
6-
(200
)15
1 92
614
9 59
82
328
98.5
120
126
117
753
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
132Vibrant, equitable, sustainable rural communities and food security for all
133Vibrant, equitable, sustainable rural communities and food security for all
132Vibrant, equitable, sustainable rural communities and food security for all
133
Prog
ram
me
4: V
ETER
INAR
Y SE
RVIC
ES20
14/1
520
13/1
4Su
b pr
ogra
mm
eAd
just
edAp
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nds
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men
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nal
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opria
tion
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alEx
pend
iture
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nce
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nditu
reas
% o
f fi n
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appr
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tion
Fina
lAc
tual
expe
nditu
re
R'00
0R'
000
R'00
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000
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000
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000
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mal
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lth22
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223
640
223
581
5910
021
8 62
74
218
4.2
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rt C
ontro
l6
298
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99)
5 89
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689
210
96.4
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4.3
Vete
rinar
y Pu
blic
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lth11
738
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11 8
1511
740
7599
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987
6111
4.
4 Ve
terin
ary
Labo
rato
ry S
ervic
es14
308
-(9
66)
13 3
4213
686
(344
)10
2.6
11 0
3610
700
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l for
sub
pro
gram
mes
258
251
-(3
555
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4 69
625
4 69
6-
100
247
761
245
408
Econ
omic
cla
ssifi
catio
nC
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nt p
aym
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253
200
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555
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524
9 79
0(1
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124
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3Co
mpe
nsat
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of e
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oyee
s20
6 91
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94)
202
117
201
749
368
99.8
194
249
193
693
Sala
ries
and
wag
es18
7 60
3(5
457
)(4
023
)17
8 12
317
5 22
02
903
98.4
168
616
168
245
Socia
l con
tribu
tions
19 3
085
457
(771
)23
994
26 5
29(2
535
)11
0.6
25 6
3325
448
Goo
ds a
nd s
ervi
ces
46 2
89-
1 23
947
528
48 0
41(5
13)
101.
145
792
45 1
40Ad
min
istra
tive
fees
383
(156
)76
303
260
4385
.853
750
3Ad
verti
sing
538
418
(489
)46
746
16
98.7
449
122
Min
or a
sset
s91
049
0(5
34)
866
778
8889
.81
689
1 54
2C
ater
ing:
Dep
artm
enta
l ac
tivitie
s51
240
(95)
457
434
2395
.068
257
7C
omm
unica
tion
416
349
(358
)40
736
371
8.8
111
226
Com
pute
r ser
vices
39(1
4)14
3939
010
033
32In
frast
ruct
ure
and
plan
ning
se
rvice
s9
(9)
--
--
-3
2
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rato
ry s
ervic
es25
25(2
5)25
25-
100
5025
Lega
l ser
vices
Con
tract
ors
966
635
(639
)96
291
844
95.4
151
57Ag
ency
and
sup
port
/ ou
tsou
rced
ser
vices
-(2
1)21
--
--
--
Ente
rtain
men
t12
(21)
189
10(1
)11
1.1
4235
Flee
t ser
vices
3 65
4-
-3
654
3 63
024
99.3
2 99
02
983
Inve
ntor
y: F
arm
ing
supp
lies
(193
)19
375
273
1In
vent
ory:
Foo
d an
d fo
od
supp
lies
18(1
4)-
44
-10
060
2
Inve
ntor
y: F
uel,
oil a
nd g
as20
413
2(2
02)
134
123
1191
.896
Inve
ntor
y: L
earn
er a
nd te
ache
r su
ppor
t mat
eria
l5
(434
)42
9-
--
-9
-
Vibrant, equitable, sustainable rural communities and food security for all
132Vibrant, equitable, sustainable rural communities and food security for all
133
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
132Vibrant, equitable, sustainable rural communities and food security for all
133
Prog
ram
me
4: V
ETER
INAR
Y SE
RVIC
ES20
14/1
520
13/1
4Su
b pr
ogra
mm
eAd
just
edAp
prop
riatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
Appr
opria
tion
Actu
alEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lAc
tual
expe
nditu
re
R'00
0R'
000
R'00
0R'
000
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000
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000
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0In
vent
ory:
Mat
eria
ls an
d su
pplie
s16
6(1
20)
1763
4320
68.3
206
-
Inve
ntor
y: M
edica
l sup
plie
s13
727
(37)
127
549
(422
)43
2.3
324
17 3
89In
vent
ory:
Med
icine
19 8
88(8
005
)8
474
20 3
5720
062
295
98.6
18 1
48-
Inve
ntor
y: O
ther
sup
plie
s1
204
352
(931
)62
5-
625
-77
4-
Con
sum
able
sup
plie
s63
3(1
02)
553
655
6(2
0)10
3.8
1 13
31
578
Con
sum
able
: Sta
tione
ry,
prin
ting
and
offi c
e su
pplie
s94
643
0(5
00)
876
854
2297
.582
168
4
Ope
ratin
g le
ases
547
385
(430
)50
244
161
87.8
372
217
Prop
erty
pay
men
ts23
(3)
(3)
1717
-10
053
896
Trav
el a
nd s
ubsis
tenc
e13
252
6 05
0(4
023
)15
279
16 3
21(1
042
)10
6.8
14 6
4715
988
Trai
ning
and
dev
elop
men
t40
(68)
5830
30-
100
1-
Ope
ratin
g pa
ymen
ts1
508
(185
)20
51
528
2 37
2(8
44)
155.
283
7 2
105
Venu
es a
nd fa
cilitie
s10
14
(6)
9970
2970
.715
674
Ren
tal a
nd h
iring
162
8(8
)16
28
154
4.9
181
172
Paym
ents
for c
apita
l ass
ets
5 05
1-
-5
051
4 90
614
597
.17
720
6 57
5M
achi
nery
and
equ
ipm
ent
5 05
1-
-5
051
4 90
614
597
.12
908
2 55
5Tr
ansp
ort e
quip
men
t3
654
--
3 65
43
589
6598
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-O
ther
mac
hine
ry a
nd
equi
pmen
t1
397
--
1 39
71
317
8094
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908
2 55
5
Biol
ogic
al a
sset
s-
--
--
--
4 81
24
020
Tota
l25
8 25
1-
(3 5
55)
254
696
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696
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024
7 76
124
5 40
8
SUB
-PR
OG
RA
MM
E 4.
1: A
NIM
AL
HEA
LTH
2014
/15
2013
/14
Adj
uste
dA
ppro
pria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lA
ppro
pria
tion
Act
ual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lA
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00%
R'0
00R
'000
Cur
rent
pay
men
ts22
1 33
4-
(2 2
67)
219
067
219
105
(38)
100
211
682
211
872
Com
pens
atio
n of
em
ploy
ees
180
253
-(3
507
)17
6 74
617
6 37
836
899
.817
1 31
017
1 31
0G
oods
and
ser
vice
s41
081
-1
240
42 3
2142
727
(406
)10
140
372
40 5
62Pa
ymen
ts fo
r cap
ital a
sset
s4
573
--
4 57
34
476
106
97.
6 94
56
262
Mac
hine
ry a
nd e
quip
men
t4
573
--
4 57
34
476
106
97.7
2 13
32
242
Biol
ogic
al a
sset
--
--
--
-4
812
4 02
0
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
134Vibrant, equitable, sustainable rural communities and food security for all
135Vibrant, equitable, sustainable rural communities and food security for all
134Vibrant, equitable, sustainable rural communities and food security for all
135
SUB
-PR
OG
RA
MM
E 4.
1: A
NIM
AL
HEA
LTH
2014
/15
2013
/14
Adj
uste
dA
ppro
pria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lA
ppro
pria
tion
Act
ual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lA
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00%
R'0
00R
'000
Tota
l22
5 90
7-
(2 2
67)
223
640
223
581
5910
021
8 62
721
8 13
4
SUB
-PR
OG
RA
MM
E 4.
2: E
XPO
RT
CO
NTR
OL
2014
/15
2013
/14
Adj
uste
dA
ppro
pria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lA
ppro
pria
tion
Act
ual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lA
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00%
R'0
00R
'000
Cur
rent
pay
men
ts5
869
-(3
99)
5 47
05
303
167
96.9
5 65
74
547
Com
pens
atio
n of
em
ploy
ees
4 13
5-
(399
)3
736
3 73
6-
100
4 10
63
759
Goo
ds a
nd s
ervi
ces
1 73
4-
-1
734
1 56
716
790
.31
551
788
Paym
ents
for c
apita
l ass
ets
429
--
429
386
4390
.445
466
Mac
hine
ry a
nd e
quip
men
t42
9-
-42
938
643
90.4
454
66To
tal
6 29
8-
(399
)5
899
5 68
921
096
.46
111
4 61
3
SUB
-PR
OG
RA
MM
E 4.
3: V
ETER
INA
RY P
UB
LIC
HEA
LTH
2014
/15
2013
/14
Adj
uste
dA
ppro
pria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lA
ppro
pria
tion
Act
ual
Expe
nditu
reVa
rianc
eEx
pend
iture
as %
of fi
nal
ap
prop
riatio
n
Fina
lA
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00%
R'0
00R
'000
Cur
rent
pay
men
ts11
726
-77
11 8
0311
729
7499
.411
937
11 9
47C
ompe
nsat
ion
of e
mpl
oyee
s9
568
-77
9 64
59
645
-10
09
928
9 92
8G
oods
and
ser
vice
s2
158
--
2 15
82
084
7496
.62
009
2 01
9Pa
ymen
ts fo
r cap
ital a
sset
s12
--
1211
191
.750
14M
achi
nery
and
equ
ipm
ent
12-
-12
111
91.7
5014
Tota
l11
738
-77
11 8
1511
740
7599
.411
987
11 9
61
Vibrant, equitable, sustainable rural communities and food security for all
134Vibrant, equitable, sustainable rural communities and food security for all
135
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
134Vibrant, equitable, sustainable rural communities and food security for all
135
SUB
-PR
OG
RA
MM
E 4.
4: V
ETER
INA
RY L
AB
SER
VIC
E20
14/1
520
13/1
4A
djus
ted
App
ropr
iatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
App
ropr
iatio
nA
ctua
lEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lA
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00%
R'0
00R
'000
Cur
rent
pay
men
ts14
271
-(9
66)
13 3
0513
653
(348
)10
2.6
10 7
6710
467
Com
pens
atio
n of
em
ploy
ees
12 9
55-
(965
)11
990
11 9
90-
100
8 90
78
696
Goo
ds a
nd s
ervi
ces
1 31
6-
(1)
1 31
51
663
(348
)12
6.5
1 86
01
771
Paym
ents
for c
apita
l ass
ets
37
--
3733
489
.227
123
3M
achi
nery
and
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DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
136Vibrant, equitable, sustainable rural communities and food security for all
137Vibrant, equitable, sustainable rural communities and food security for all
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136Vibrant, equitable, sustainable rural communities and food security for all
137
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
136Vibrant, equitable, sustainable rural communities and food security for all
137
PRO
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5: R
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DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
138Vibrant, equitable, sustainable rural communities and food security for all
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Vibrant, equitable, sustainable rural communities and food security for all
138Vibrant, equitable, sustainable rural communities and food security for all
139
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
138Vibrant, equitable, sustainable rural communities and food security for all
139
PRO
GR
AM
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6: A
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413
393
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
140Vibrant, equitable, sustainable rural communities and food security for all
141Vibrant, equitable, sustainable rural communities and food security for all
140Vibrant, equitable, sustainable rural communities and food security for all
141
PRO
GR
AM
ME
6: A
GR
ICU
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ON
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2014
/15
2013
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Adj
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nal
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209
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-23
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4624
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10 2
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SUB
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1: A
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2 43
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14 1
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Paym
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964
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964
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19 9
26-
281
20 2
0720
026
181
99.1
20 7
2618
350
Vibrant, equitable, sustainable rural communities and food security for all
140Vibrant, equitable, sustainable rural communities and food security for all
141
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
140Vibrant, equitable, sustainable rural communities and food security for all
141
SUB
-PR
OG
RA
MM
E 6.
2: M
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tal
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19-
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25 0
3425
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100.
124
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23 4
74
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
142Vibrant, equitable, sustainable rural communities and food security for all
143Vibrant, equitable, sustainable rural communities and food security for all
142Vibrant, equitable, sustainable rural communities and food security for all
143
PRO
GR
AM
ME
7: S
TRU
CTU
RED
AG
RIC
UTU
RA
L TR
AIN
ING
2014
/15
2013
/14
Adj
uste
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pria
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lA
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nditu
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rther
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)84
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9279
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ub p
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094
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69 0
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48 9
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17(1
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9M
inor
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126
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ater
ing:
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tiviti
es2
190
257
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)2
176
1 57
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115
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1 50
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2 88
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144
249
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cy a
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20(2
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t25
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1015
40.0
50
18
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t ser
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s1
405
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s-
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133
32
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ntor
y: F
arm
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1 07
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973
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332
65.9
240
244
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y: F
ood
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su
pplie
s19
319
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88)
195
154
4179
8519
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ntor
y: F
uel,
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as29
358
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2565
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-In
vent
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rner
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eria
l59
(23)
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--
Vibrant, equitable, sustainable rural communities and food security for all
142Vibrant, equitable, sustainable rural communities and food security for all
143
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
142Vibrant, equitable, sustainable rural communities and food security for all
143
PRO
GR
AM
ME
7: S
TRU
CTU
RED
AG
RIC
UTU
RA
L TR
AIN
ING
2014
/15
2013
/14
Adj
uste
dA
ppro
pria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lA
ppro
pria
tion
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ual
Expe
nditu
reVa
rianc
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pend
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as %
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nal
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prop
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tion
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vent
ory:
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eria
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nd
supp
lies
65(2
1)(4
4)-
--
-64
-
Inve
ntor
y: M
edic
al s
uppl
ies
-19
(19)
--
--
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ntor
y: M
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41-
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2626
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-In
vent
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142
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90.3
306
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tatio
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supp
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243
15(6
7)19
125
3(6
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2.5
385
227
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ratin
g le
ases
134
69(6
9)13
420
114
14.9
123
59Pr
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ty p
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1 02
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2)(4
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864
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766
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sten
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459
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53
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and
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t7
358
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587
358
4 10
33
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55.8
1 48
11
345
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ratin
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ymen
ts14
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60)
418
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8(3
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515
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43(1
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43-
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Ren
tal a
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iring
-11
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11-
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--
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sfer
s an
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39 5
20-
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520
39 5
20-
100
31 2
8231
282
Non
-pro
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39
520
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39 5
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031
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31 2
82Pa
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r cap
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s16
485
--
16 4
8511
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4 77
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23 0
0519
328
Build
ings
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stru
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508
(6 8
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-6
704
5 06
41
640
75.5
16 3
9318
503
Build
ings
--
--
--
-16
393
18 5
03O
ther
fi xe
d st
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13 5
08(6
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45
064
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2 97
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6 64
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6 61
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t-
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6 61
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Tota
l12
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(1 0
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123
959
117
179
6 78
094
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1 22
910
7 41
4
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
144Vibrant, equitable, sustainable rural communities and food security for all
145Vibrant, equitable, sustainable rural communities and food security for all
144Vibrant, equitable, sustainable rural communities and food security for all
145
SUB
-PR
OG
RA
MM
E 7.
1: H
IGH
ER E
DU
CAT
ION
AN
D T
RA
ININ
G20
14/1
520
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4A
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tions
39
520
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39 5
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tal
39 5
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-39
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82
SUB
-PR
OG
RA
MM
E 7.
2: F
UR
THER
ED
UC
ATIO
N A
ND
TR
AIN
ING
2014
/15
2013
/14
Adj
uste
dA
ppro
pria
tion
Shift
ing
of
Fund
sVi
rem
ent
Fina
lA
ppro
pria
tion
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ual
Expe
nditu
reVa
rianc
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pend
iture
as %
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nal
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prop
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n
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lA
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tion
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ual
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nditu
re
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cla
ssifi
catio
nR
'000
R'0
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'000
R'0
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'000
R'0
00%
R'0
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'000
Cur
rent
pay
men
ts69
025
-(1
071
)67
954
65 9
482
006
9756
942
56 8
04C
ompe
nsat
ion
of e
mpl
oyee
s48
947
-(1
131
)47
816
47 8
16-
100
47 2
7147
170
Goo
ds a
nd s
ervi
ces
20 0
78-
6020
138
18 1
322
006
909
671
9 63
4Pa
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r cap
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s16
485
--
16 4
8511
711
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471
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0519
328
Build
ings
and
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ctur
es13
508
(6 8
04)
-6
704
5 06
41
640
75.5
16 3
9318
503
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hine
ry a
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men
t2
977
6 80
4-
9 78
16
647
3 13
468
6 61
282
5To
tal
85 5
10-
(1 0
71)
84 4
3977
659
6 78
092
79 9
4776
132
Vibrant, equitable, sustainable rural communities and food security for all
144Vibrant, equitable, sustainable rural communities and food security for all
145
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
144Vibrant, equitable, sustainable rural communities and food security for all
145
PRO
GR
AM
ME
8: R
UR
AL
DEV
ELO
PMEN
T20
14/1
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13/1
4A
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124
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730
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133
063
Econ
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19 3
51-
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17 6
8517
272
413
97.7
2 41
71
968
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11 0
39-
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11 8
7611
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1
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1 40
01
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872
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1 16
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1 00
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312
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017
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e fe
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45(8
0)45
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-Ad
verti
sing
3523
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-M
inor
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129
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3016
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: Ext
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l1
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1 70
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11
99.9
--
Cat
erin
g: D
epar
tmen
tal
activ
ities
6217
(57)
2222
-10
040
6
Com
mun
icat
ion
360
850
(324
)88
678
510
188
.6-
-C
ompu
ter s
ervi
ces
190
159
(190
)15
915
27
95.6
--
Con
sulta
nts:
Bus
ines
s an
d ad
viso
ry s
ervi
ces
329
325
(329
)32
532
5-
100
--
Infra
stru
ctur
e an
d pl
anni
ng
serv
ices
490
80(1
40)
430
8035
018
.615
115
1
Lega
l ser
vice
s-
320
-32
032
1(1
)10
0.3
--
Con
tract
ors
1 47
9(1
346
)(1
29)
4-
4-
--
Ente
rtain
men
t13
(13)
77
7-
100
1818
Flee
t ser
vice
s17
2(1
7)2
2-
100
--
Inve
ntor
y: F
arm
ing
supp
lies
453
(2 0
62)
1 75
014
114
1-
100
60-
Con
sum
able
sup
plie
s85
126
(85)
126
7254
57.1
3626
Con
sum
able
: Sta
tione
ry,
prin
ting
and
offi c
e su
pplie
s17
5(1
23)
4597
97-
100
7022
Ope
ratin
g le
ases
244
7(2
44)
765
(58)
928.
6-
-Pr
oper
ty p
aym
ents
388
358
(406
)34
031
921
93.8
2020
Trav
el a
nd s
ubsi
sten
ce1
329
133
(576
)88
61
046
(160
)11
8.1
538
257
Trai
ning
and
dev
elop
men
t19
0(1
10)
(80)
--
--
--
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
146Vibrant, equitable, sustainable rural communities and food security for all
147Vibrant, equitable, sustainable rural communities and food security for all
146Vibrant, equitable, sustainable rural communities and food security for all
147
PRO
GR
AM
ME
8: R
UR
AL
DEV
ELO
PMEN
T20
14/1
520
13/1
4A
djus
ted
App
ropr
iatio
nSh
iftin
g of
Fu
nds
Vire
men
tFi
nal
App
ropr
iatio
nA
ctua
lEx
pend
iture
Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lA
ppro
pria
tion
Act
ual
expe
nditu
re
Sub
prog
ram
me
R'0
00R
'000
R'0
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'000
R'0
00R
'000
%R
'000
R'0
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pera
ting
paym
ents
92(5
00)
408
--
--
--
Venu
es a
nd fa
cilit
ies
372
183
(402
)15
315
4(1
)10
0.7
7468
Ren
tal a
nd h
iring
50(4
6)10
010
424
8023
.1-
-
Tran
sfer
s an
d su
bsid
ies
200
514
--
200
514
200
514
-10
012
4 00
312
4 00
3D
epar
tmen
tal a
genc
ies
and
acco
unts
200
514
--
200
514
200
514
-10
012
4 00
312
4 00
3
Dep
artm
enta
l age
ncie
s20
0 51
4-
-20
0 51
420
0 51
4-
100
124
003
124
003
Paym
ents
for c
apita
l ass
ets
689
-90
779
462
317
59.3
7 28
07
092
Build
ings
--
--
--
-7
280
7 09
2O
ther
fi xe
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ures
--
--
--
-7
280
7 09
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achi
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689
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779
462
317
59.3
--
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er m
achi
nery
and
eq
uipm
ent
689
-90
779
462
317
59.3
7 28
07
092
Tota
l22
0 55
4-
(1 5
76)
218
978
218
248
730
99.7
133
700
133
063
SUB
-PR
OG
RA
MM
E 8.
1: D
EVEL
OPM
ENT
PLA
NN
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AN
D M
ON
ITO
RIN
G20
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nds
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men
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nal
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iatio
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pend
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Varia
nce
Expe
nditu
reas
% o
f fi n
al
appr
opria
tion
Fina
lA
ppro
pria
tion
Act
ual
expe
nditu
re
Econ
omic
cla
ssifi
catio
nR
'000
R'0
00R
'000
R'0
00R
'000
R'0
00%
R'0
00R
'000
Tran
sfer
s an
d su
bsid
ies
200
514
--
200
514
200
514
-10
012
4 00
312
4 00
3D
epar
tmen
tal a
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ies
and
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200
514
--
200
514
200
514
-10
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4 00
312
4 00
3
Tota
l20
0 51
4-
-20
0 51
420
0 51
4-
100
124
003
124
003
Vibrant, equitable, sustainable rural communities and food security for all
146Vibrant, equitable, sustainable rural communities and food security for all
147
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
146Vibrant, equitable, sustainable rural communities and food security for all
147
SUB
-PR
OG
RA
MM
E 8.
2: S
OC
IAL
FAC
ILIT
ATIO
N20
14/1
520
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men
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iatio
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nce
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nditu
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% o
f fi n
al
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opria
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Fina
lA
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nditu
re
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omic
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ssifi
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nR
'000
R'0
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'000
R'0
00R
'000
R'0
00%
R'0
00R
'000
Cur
rent
pay
men
ts19
351
-(1
666
)17
685
17 2
7241
397
.72
416
1 96
8C
ompe
nsat
ion
of e
mpl
oyee
s11
039
-83
711
876
11 8
751
100
1 40
01
400
Goo
ds a
nd s
ervi
ces
8 31
2-
(2 5
03)
5 80
95
397
412
92.6
1 01
656
8Pa
ymen
ts fo
r cap
ital a
sset
s68
9-
9077
946
231
759
.37
280
7 09
2M
achi
nery
and
equ
ipm
ent
689
-90
779
462
317
59.3
7 28
07
092
Tota
l20
040
-(1
576
)18
464
17 7
3473
096
.09
697
9 06
0
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
148Vibrant, equitable, sustainable rural communities and food security for all
149Vibrant, equitable, sustainable rural communities and food security for all
148Vibrant, equitable, sustainable rural communities and food security for all
149
Detail of transfers and subsidies as per Appropriation Act (after Virement):1.
Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-E) to the Annual Financial Statements.
Detail of specifi cally and exclusively appropriated amounts voted (after Virement):2.
Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.
Detail on payments for fi nancial assets3.
Detail of these transactions per programme can be viewed in the note on Payments for fi nancial assets to the Annual Financial Statements.
Material variances4.
An explanation will be provided for all variances above the threshold of R1 million. All variances below R1 million will be considered immaterial.
Explanations of material variances from Amounts Voted (after Virement):5.
5.1 Per programme Final Appropriation
Actual Expenditure
Variance R’000
Variance as a % of Final
AppropriationAdministration 418 185 417 898 287 0%Sustainable Resource 131 538 127 538 4 000 3%Farmer Support and Development 570 691 564 366 6 325 1%Veterinary Service 254 696 254 696 - 0%Research and Technology 107 190 107 770 (580) (0%)Agricultural Economics Services 45 241 45 073 168 0%Structure Education and Training 123 959 117 179 6 780 5%Rural Development 218 978 218 248 730 0%
Explanations for variances: Programme 1: R287 000The variance is considered immaterialProgramme 2: R4 millionThe service level agreement between the Department and Post Offi ce was concluded late which delayed the payment of wage for the Land Care project. For capital, the initial plan for the clinic was to be erected in Mthatha, however, due to the re-opening of Tsolo Agricultural Research and Development Institution (TARDI) which caused the delays as the clinic plan had to be adjusted to suit TARDIProgramme 3: R6.325 millionFleet invoices were received by the Department after the closing date of payment. For capital, the underspending was as a result of delays on the completion of projects due to weather condition and the Department had to extend the retention periodProgramme 4: R NilThe variance is considered immaterialProgramme 5: (R580 000)The variance is considered immaterialProgramme 6: R168 000The variance is considered immaterialProgramme 7: R6.780 000The training programme could not be implemented as planned due to low confi rmation of attendance by farmers. The programme had to be re-scheduled which led to delays in implementation and spending.The delays in the implementation by the service provider resulted to funds not being spent as planned for the Revitalisation of Fort Cox College and TARDI.Programme 8: R730 000The variance is considered immaterial
Vibrant, equitable, sustainable rural communities and food security for all
148Vibrant, equitable, sustainable rural communities and food security for all
149
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE APPROPRIATION STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
148Vibrant, equitable, sustainable rural communities and food security for all
149
5.2 Per economic classifi cation Final Appropriation
Actual Expenditure
Variance Variance as a % of Final
AppropriationR’000 R’000 R’000 R’000
Current paymentsCompensation of employees 1 002 283 1 002 267 16 0%Goods and services 460 890 455 721 5 169 1%
Transfers and subsidiesDepartmental agencies and accounts 210 779 210 779 - -Non-profi t institutions 39 250 39 250 - -Households 23 736 23 773 (37) 0%
Payments for capital assetsBuildings and other fi xed structures 43 083 36 480 6 603 15%Machinery and equipment 65 815 59 942 5 873 7%Biological assets 6 194 6 095 99 0%
Payments for fi nancial assets 20 000 20 000 - -
5.3. Conditional Grants Final Appropriation
Actual Expenditure
Variance Variance as a % of Final Appropriation
R’000 R’000 R’000 R’000
Comprehensive Agricultural Support Grant
229 143 214 309 14 834 6%
Ilima/ Lestema 46 062 45 603 459 1%Land Care 10 853 10 187 666 6%Extended Public Works Programme 2 681 2 486 195 7%Disaster Risk Management 2 982 2 937 45 2%
The under-expenditure of the Department pertains mainly to conditional grants. Therefore, the explanations given in 5.1 above is applicable to conditional grant spending
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8STATEMENT OF FINANCIAL PERFORMANCE
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
150Vibrant, equitable, sustainable rural communities and food security for all
151Vibrant, equitable, sustainable rural communities and food security for all
150Vibrant, equitable, sustainable rural communities and food security for all
151
Note 2014/15 2013/14R'000 R'000
REVENUE
Annual appropriation 1 1 868 656 1 740 951Statutory appropriation 2 1 822 1 830Departmental revenue 3 2 414 15 993
TOTAL REVENUE 1 872 892 1 758 774
EXPENDITURE
Current expenditureCompensation of employees 4 1 000 458 959 591Goods and services 5 455 721 398 213Total current expenditure 1 456 179 1 357 804
Transfers and subsidiesTransfers and subsidies 6 274 072 249 515
Total transfers and subsidies 274 072 249 515
Expenditure for capital assetsTangible assets 7 102 517 123 884
Total expenditure for capital assets 102 517 123 884
Unauthorised expenditure approved without funding 8 20 000 -
TOTAL EXPENDITURE 1 852 768 1 731 203
SURPLUS/(DEFICIT) FOR THE YEAR 20 124 27 571
Reconciliation of Net Surplus/(Defi cit) for the year
Voted funds 17 710 11 578Annual appropriation 1 511 1 566Conditional grants 32 16 199 10 012Departmental revenue and NRF Receipts 3 2 414 15 993SURPLUS/(DEFICIT) FOR THE YEAR 20 124 27 571
Vibrant, equitable, sustainable rural communities and food security for all
150Vibrant, equitable, sustainable rural communities and food security for all
151
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
150Vibrant, equitable, sustainable rural communities and food security for all
151
Note 2014/15 2013/14R'000 R'000
ASSETS
Current assets 48 622 50 432Unauthorised expenditure 8 27 461 47 461Cash and cash equivalents 9 18 089 340Receivables 10 3 072 2 631 Non-current assets 13 676 14 515
Receivables 10 13 676 14 515 TOTAL ASSETS 62 298 64 947
LIABILITIES
Current liabilities Voted funds to be surrendered to the Revenue Fund 11 59 574 61 864
Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
12 466 174
Payables 13 2 258 2 909 TOTAL LIABILITIES 62 298 64 947
NET ASSETS - -
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
152Vibrant, equitable, sustainable rural communities and food security for all
153Vibrant, equitable, sustainable rural communities and food security for all
152Vibrant, equitable, sustainable rural communities and food security for all
153
Note 2014/15 2013/14R'000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 1 881 029 1 757 257Annual appropriated funds received 1.1 1 868 656 1 732 351Statutory appropriated funds received 2 1 822 1 830Departmental revenue received 3 10 536 23 074Interest received 3.2 15 2
Net (increase)/decrease in working capital 19 747 (825)Surrendered to Revenue Fund (30 601) (24 616)Current payments (1 476 179) (1 357 804)Transfers and subsidies paid (274 072) (249 515)Net cash fl ow available from operating activities 14 119 924 124 497
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 7 (102 517) (123 884)Proceeds from sale of capital assets 3.3 342 244Net cash fl ows from investing activities (102 175) (123 640)
CASH FLOWS FROM FINANCING ACTIVITIESNet cash fl ows from fi nancing activities - -
Net increase/(decrease) in cash and cash equivalents 17 749 857
Cash and cash equivalents at beginning of period 340 (517)
Cash and cash equivalents at end of period 15 18 089 340
Vibrant, equitable, sustainable rural communities and food security for all
152Vibrant, equitable, sustainable rural communities and food security for all
153
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
152Vibrant, equitable, sustainable rural communities and food security for all
153
Summary of signifi cant accounting policies The fi nancial 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 fi nancial 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 fi nancial 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 fi nancial statements have been prepared in accordance with the Modifi ed Cash Standard. 2 Going concern
The fi nancial 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 fi nancial fi gures have been rounded to the nearest one thousand Rand (R’000).5 Foreign currency translation
Cash fl ows arising from foreign currency transactions are translated into South African Rands using the exchange rates prevailing at the date of payment / receipt.
6 Comparative information6.1 Prior period comparative information
Prior period comparative information has been presented in the current year’s fi nancial statements. Where necessary fi gures included in the prior period fi nancial statements have been reclassifi ed to ensure that the format in which the information is presented is consistent with the format of the current year’s fi nancial statements.
6.2 Current year comparison with budget
A comparison between the approved, fi nal budget and actual amounts for each programme and economic classifi cation is included in the appropriation statement.
7 Revenue7.1 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 fi nancial performance on the date the appropriation becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the statement of fi nancial performance on the date the
adjustments become effective.
The net amount of any appropriated funds due to / from the Provincial revenue fund at the reporting date. 7.2 Departmental revenue
Departmental revenue is recognised in the statement of fi nancial 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 fi nancial position.
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
154Vibrant, equitable, sustainable rural communities and food security for all
155Vibrant, equitable, sustainable rural communities and food security for all
154Vibrant, equitable, sustainable rural communities and food security for all
155
7.3 Accrued departmental revenue
Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the fi nancial statements when:
it is probable that the economic benefi ts or service potential associated with the transaction will fl ow • 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.
8 Expenditure8.1 Compensation of employees8.1.1 Salaries and wages
Salaries and wages are recognised in the statement of fi nancial performance on the date of payment. 8.1.2 Social contributions
Social contributions made by the Department in respect of current employees are recognised in the statement of fi nancial performance on the date of payment.
Social contributions made by the Department in respect of ex-employees are classifi ed as transfers to households in the statement of fi nancial performance on the date of payment.
8.2 Other expenditure
Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets) is recognised in the statement of fi nancial performance on the date of payment. The expense is classifi ed as a capital expense if the total consideration paid is more than the capitalisation threshold.
8.3 Accrued expenditure payable
Accrued expenditure payable is recorded in the notes to the fi nancial 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.8.4 Leases8.4.1 Operating leases
Operating lease payments made during the reporting period are recognised as current expenditure in the statement of fi nancial performance on the date of payment.
The operating lease commitments are recorded in the notes to the fi nancial statements. 8.4.2 Finance leases
Finance lease payments made during the reporting period are recognised as capital expenditure in the statement of fi nancial performance on the date of payment.
The fi nance lease commitments are recorded in the notes to the fi nancial 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.
Vibrant, equitable, sustainable rural communities and food security for all
154Vibrant, equitable, sustainable rural communities and food security for all
155
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
154Vibrant, equitable, sustainable rural communities and food security for all
155
9 Cash and cash equivalents
Cash and cash equivalents are stated at cost in the statement of fi nancial position.
Bank overdrafts are shown separately on the face of the statement of fi nancial position.
For the purposes of the cash fl ow statement, cash and cash equivalents comprise cash on hand, deposits held, other short-term highly liquid investments and bank overdrafts.
10 Loans and receivables
Loans and receivables are recognised in the statement of fi nancial position at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.
11 Impairment of fi nancial assets
Where there is an indication of impairment of a fi nancial asset, an estimation of the reduction in the recorded carrying value, to refl ect the best estimate of the amount of the future economic benefi ts expected to be received from that asset, is recorded in the notes to the fi nancial statements.
12 Payables
Loans and payables are recognised in the statement of fi nancial position at cost.13 Capital Assets13.1 Immovable capital assets
Immovable capital assets are initially recorded in the notes to the fi nancial 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 R1.
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.
13.2 Movable capital assets
Movable capital assets are initially recorded in the notes to the fi nancial 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 R1.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.
Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.
Biological assets are subsequently carried at fair value
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 movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8ACCOUNTING POLICIES
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
156Vibrant, equitable, sustainable rural communities and food security for all
157Vibrant, equitable, sustainable rural communities and food security for all
156Vibrant, equitable, sustainable rural communities and food security for all
157
13.3 Intangible assets
Intangible assets are initially recorded in the notes to the fi nancial 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 fi nancial 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 R1.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Intangible 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 intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.
14 Provisions and Contingents14.1 Provisions
Provisions are recorded in the notes to the fi nancial statements when there is a present legal or constructive obligation to forfeit economic benefi ts as a result of events in the past and it is probable that an outfl ow of resources embodying economic benefi ts 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.
14.2 Contingent liabilities
Contingent liabilities are recorded in the notes to the fi nancial statements when there is a possible obligation that arises from past events, and whose existence will be confi rmed 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 outfl ow of resources will be required to settle the obligation or the amount of the obligation cannot be measured reliably
14.3 Contingent assets
Contingent assets are recorded in the notes to the fi nancial statements when a possible asset arises from past events, and whose existence will be confi rmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the department
14.4 Commitments
Commitments are recorded at cost in the notes to the fi nancial 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 outfl ow of cash
15 Unauthorised expenditure
Unauthorised expenditure is recognised in the statement of fi nancial position until such time as the expenditure is either:
approved by Parliament or the Provincial Legislature with funding and the related funds are received; • or
approved by Parliament or the Provincial Legislature without funding and is written off against the • appropriation in the statement of fi nancial performance; or
transferred to receivables for recovery.•
Unauthorised expenditure is measured at the amount of the confi rmed unauthorised expenditure.16 Fruitless and wasteful expenditure
Fruitless and wasteful expenditure is recorded in the notes to the fi nancial statements when confi rmed. 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 fi nancial 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.
Vibrant, equitable, sustainable rural communities and food security for all
156Vibrant, equitable, sustainable rural communities and food security for all
157
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
156Vibrant, equitable, sustainable rural communities and food security for all
157
17 Irregular expenditure
Irregular expenditure is recorded in the notes to the fi nancial statements when confi rmed. 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.
18 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-specifi c 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 applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specifi c 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.
19 Recoverable revenue
Amounts are recognised as recoverable revenue when a payment made in a previous fi nancial year becomes recoverable from a debtor in the current fi nancial year. Amounts are either transferred to the National/Provincial Revenue Fund when recovered or are transferred to the statement of fi nancial performance when written-off.
20 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 fi nancial statements when the transaction is not at arm’s length.
21 Inventories
At the date of acquisition, inventories are recorded at cost price in the notes to the fi nancial 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.
22 Key management personnel
Compensation paid to key management personnel including their family members where relevant, in the disclosure notes.
23 Employee benefi ts
Short-term employee benefi ts that give rise to a present legal or constructive obligation are disclosed in the disclosure notes to the fi nancial statements. These amounts are not recognised in the statement of fi nancial performance or statement of fi nancial position.
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
158Vibrant, equitable, sustainable rural communities and food security for all
159Vibrant, equitable, sustainable rural communities and food security for all
158Vibrant, equitable, sustainable rural communities and food security for all
159
Annual Appropriation 1.
1.1 Annual Appropriation Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:
2014/15 2013/14Final
AppropriationActual Funds
Received Funds notrequested/
not received
Appropriationreceived
R’000 R’000 R’000 R’000Administration 416 363 416 363 - 389 846Sustainable Resource Mgt. 131 538 131 538 - 142 127Farmer Support & Development
570 691 570 691 - 553 660
Veterinary Services 254 696 254 696 - 245 408Research & Technology 107 190 107 190 - 119 009Agricultural Economics Service 45 241 45 241 - 41 824Structured Agricultural Education & Training
123 959 123 959 - 107 414
Rural Development Coordination
218 978 218 978 - 133 063
Total 1 868 656 1 868 656 - 1 732 351
All remaining voted funds for the fi nancial year were transferred to the department towards the end of the year. Therefore, the fi nal appropriation is equal to the actual funds received.
1.2 Conditional grants Note
2014/15 2013/14R’000 R’000
Total grants received 31 291 721 275 597
Statutory Appropriation 2. 2014/15 2013/14
R’000 R’000Members’ remuneration 1 822 1 830Total 1 822 1 830
Actual Statutory Appropriation received 1 822 1 830
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DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
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Departmental revenue 3. Note 2014/15 2013/14
R’000 R’000Sales of goods and services other than capital assets
3.1 4 838 4 777
Interest, dividends and rent on land 3.2 15 2Sales of capital assets 3.3 342 244Transactions in fi nancial assets and liabilities 3.4 3 475 2 185Transfer received 3.5 2 223 16 112Total revenue collected 10 893 23 320Less: Own revenue included in appropriation 12 8 479 7 327Departmental revenue collected 2 414 15 993
Transfer received1) The transfers received relates to unspent funds surrendered by departmental entities (ECATU: R2 223 000) to the department. In the current year, the decrease is due to improved spending by ECRDA.
3.1 Sales of goods and services other than capital assetsNote 2014/15 2013/14
3 R’000 R’000Sales of goods and services produced by the department
4 589 4 470
Sales by market establishment 4 589 4 470Sales of scrap, waste and other used current goods
249 307
Total 4 838 4 777
3.2 Interest, dividends and rent on land Note 2014/15 2013/14
3 R’000 R’000Interest 15 2Total 15 2
3.3 Sale of capital assetsNote 2014/15 2013/14
3 R’000 R’000Tangible assets 342 244Biological assets 27 342 244Total 342 244
3.4 Transactions in fi nancial assets and liabilitiesNote 2014/15 2013/14
3 R’000 R’000Other Receipts including Recoverable Revenue 3 475 2 185Total 3 475 2 185
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
160Vibrant, equitable, sustainable rural communities and food security for all
161Vibrant, equitable, sustainable rural communities and food security for all
160Vibrant, equitable, sustainable rural communities and food security for all
161
3.5 Transfers receivedNote 2014/15 2013/14
3 R’000 R’000Other governmental units 2 223 16 112Total 2 223 16 112Transfer received1) The transfers received relates to unexpended amounts surrendered by departmental entities to the department. In the current year, the decrease is due to improved spending by the departmental entities.
Compensation of employees4.
4.1. Salaries and Wages2014/15 2013/14
R’000 R’000Basic salary 702 541 662 320Performance award 14 119 14 551Service Based 1 699 7 164Compensative/circumstantial 67 590 63 315Other non-pensionable allowances 81 913 81 905Total 867 862 829 255
4.2. Social contributionsNote 2014/15 2013/14
R’000 R’000Employer contributionsPension 89 162 85 514Medical 43 236 44 635UIF 1 -Bargaining council 197 187Total 132 596 130 336
Total compensation of employees 1 000 458 959 591
Average number of employees 3 115 3 048
Compensation of employees1)
The compensation of employees includes salaries of former ECATU employees that were transferred to the Department following proclamation by the Premier to dissolve ECATU with effect from 1 April 2014.
The staffs complement of ECATU which consisted of 46 employees of which 14 were contracted, 7 interns and 25 permanently employed were transferred to the department. The compensation of ECATU employees amounted to R9,3 million as at 31 March 2014. The post establishment of ECATU was analysed and a person-to-post matching exercise was conducted. This implies that employees were placed in similar positions in the Department which would provide for effective use of their skills within the appropriate level of remuneration within the government employee remuneration system which is underpinned by Public Service Act. That means the comparable service benefi ts within the government employees system (Public Service Regulations) was applied.
The leave credits due to ECATU employees were utilised and/or paid out to employees before the transfer to the Department. All pensions of the employees were paid out before the transfer to the Department. When the employees joined the Department they had zero balance on both leave and pensions credits.
Services Based2)
The number of employees who qualify for recognition of long service awards varies from year to year. Therefore, the decrease is a result of a number of employees paid in the current year as compared to the prior year.
Vibrant, equitable, sustainable rural communities and food security for all
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DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
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Goods and services 5.
Note 2014/15 2013/14R’000 R’000
Administrative fees 2 304 1 975Advertising 5 184 4 192Minor assets 5.1 3 449 5 269Bursaries (employees) 1 580 954Catering 5 422 8 142 Communication 15 537 20 586Computer services 5.2 17 197 13 596Consultants: Business and advisory services 2 673 2 063Infrastructure and planning services 10 057 162Laboratory services 25 25Legal services 3 990 1 779Contractors 26 569 34 856Agency and support / outsourced services 30 518Entertainment 150 464Audit cost – external 5.3 5 863 5 598Fleet services 27 471 32 596Inventory 5.4 168 592 104 142Consumables 5.5 13 463 15 027Housing - -Operating leases 10 774 10 005Property payments 5.6 15 818 13 530Rental and hiring 3 023 3 689Transport provided as part of the departmental activities - 34Travel and subsistence 5.7 89 369 90 157Venues and facilities 3 211 4 714Training and development 13 139 11 062Other operating expenditure 5.8 10 831 13 078Total 455 721 398 213
The Department verifi ed and paid accounts payables (accruals) amounting to R2,4 million during 2014/15 relating to former ECATU.
5.1. Minor assets
Note 2014/15 2013/145 R’000 R’000
Tangible assetsBiological assets 86 919Machinery and equipment 3 363 4 350
Total 3 449 5 269
5.2. Computer servicesNote 2014/15 2013/14
5 R’000 R’000SITA computer servicesExternal computer service providers 7 254
17 190 13 342Total 17 197 13 596
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
162Vibrant, equitable, sustainable rural communities and food security for all
163Vibrant, equitable, sustainable rural communities and food security for all
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163
5.3. Audit cost – External Note 2014/15 2013/14
5 R’000 R’000Regularity audits 5 863 5 598Total 5 863 5 598
5.4. InventoryNote 2014/15 2013/14
5 R’000 R’000Clothing material and accessories 277 643Farming supplies 142 551 83 977 Food and food supplies 1 640 1 264Fuel, oil and gas 1 892 -Materials and supplies 1 241 -Medical supplies 611 18 258Medicine 20 380 -Total 168 592 104 142
1) Farming suppliesThe increase in inventory: farming supplies is a result of increased budget for cropping programme (procurement of agricultural inputs)
2) Medical suppliesThe decrease and increase in both medical supplies and medicine is a result of re-classifi cation of items.
5.5. ConsumablesNote 2014/15 2013/14
5 R’000 R’000Consumable supplies 8 054 10 073Uniform and clothing 2 642 2 351Household supplies 1 602 3 110Building material and supplies - 1 807Communication accessories 529 -IT consumables 489 929Other consumables 2 792 1 876
Stationery, printing and offi ce supplies 5 409 4 954Total 13 463 15 027
5.6. Property paymentsNote 2014/15 2013/14
5 R’000 R’000Municipal services 6 861 5 909Property management fees 7 276 -Property maintenance and repairs 1 679 7 621Other 2 - Total 15 818 13 530
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163
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
162Vibrant, equitable, sustainable rural communities and food security for all
163
5.7. Travel and subsistenceNote 2014/15 2013/14
5 R’000 R’000Local 87 785 89 930Foreign 1 584 227Total 89 369 90 157
5.8. Other operating expenditureNote 2014/15 2013/14
5 R’000 R’000Professional bodies, membership and subscription fees
18 -
Resettlement costs 480 5 271Other 10 333 7 807Total 10 831 13 078
Transfers and subsidies6. 2014/15 2013/14R’000 R’000
Note
Departmental agencies and accounts Annex 1A 210 779 194 196Non-profi t institutions Annex 1B 39 520 31 282Households Annex 1C 23 773 24 037Total 274 072 249 515
The prior year balance has been restated and the amount pertaining to gifts, donations and sponsorships made in kind amounting to R5,252 million has been disclosed in unaudited annexure 1E.
7. Expenditure for capital assets Note 2014/15 2013/14
R’000 R’000Tangible assetsBuildings and other fi xed structures 29 36 480 50 745Machinery and equipment 27 59 942 69 003Biological assets 27 6 095 4 136
Total 102 517 123 884
7.1. Analysis of funds utilised to acquire capital assets – 2014/15Voted funds Total
R’000 R’000Tangible assetsBuildings and other fi xed structures 36 480 36 480Machinery and equipment 59 942 59 942Biological assets 6 095 6 095
Total 102 517 102 517
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
164Vibrant, equitable, sustainable rural communities and food security for all
165Vibrant, equitable, sustainable rural communities and food security for all
164Vibrant, equitable, sustainable rural communities and food security for all
165
7.2. Analysis of funds utilised to acquire capital assets – 2013/2014
Voted funds TotalR’000 R’000
Tangible assets 123 884 123 884Buildings and other fi xed structures 50 745 50 745Machinery and equipment 69 003 69 003Biological assets 4 136 4 136
Total 123 884 123 884
7.3. Finance lease expenditure included in Expenditure for capital assets2014/15 2013/14
R’000 R’000Tangible assetsMachinery and equipment 37 895 40 438
Total 37 895 40 438
8. Unauthorised expenditure
8.1. Reconciliation of unauthorised expenditure2014/15 2013/14
R’000 R’000Opening balance 47 461 47 461Less: Amounts approved by Parliament/Legislature without funding
(20 000) -
Current (20 000) -Unauthorised expenditure awaiting authorisation / written off 27 461 47 461
Analysis of awaiting authorisation per economic classifi cationCurrent 27 461 47 461Total 27 461 47 461
8.2. Analysis of unauthorised expenditure awaiting authorisation per economic classifi cation2014/15 2013/14
R’000 R’000Current 27 461 47 461Total 27 461 47 461
8.3. Analysis of unauthorised expenditure awaiting authorisation per type2014/15 2013/14
R’000 R’000Unauthorised expenditure relating to overspending of the vote or a main division within a vote
27 461 47 461
Total 27 461 47 461
Vibrant, equitable, sustainable rural communities and food security for all
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165
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
164Vibrant, equitable, sustainable rural communities and food security for all
165
9. Cash and cash equivalentsNote 2014/15 2013/14
R’000 R’000Consolidated Paymaster General Account 18 283 -Cash receipts - 1Disbursements (194) -Cash on hand - 339Total 18 089 340
The signifi cant cash and cash equivalent balance held by the Department is a result of unspent funds transferred to the Department by Provincial Treasury. These funds will be surrendered to the Provincial Revenue Fund.
10. Receivables
2014/15 2013/14
Note
Less than one
year
One to three years
Older than three
yearsTotal Total
R’000 R’000 R’000 R’000 R’000Claims recoverable
10.1Annex 3
1 221 9 021 - 10 242 11 052
Staff debt 10.2 1 851 - - 1 851 1 770Other debtors 10.3 - - 4 655 4 655 4 324Total 3 072 9 021 4 655 16 748 17 146
Note 2014/15 2013/1410 R’000 R’000
Current assets 3 072 2 631Claims recoverable 1 221 2 031Staff debt 1 851 574Other debtors - 26
Non-current assets 13 676 14 515Claims recoverable 9 021 11 052Staff debt - 1 196Other debtor 4 655 2 267Total 16 748 17 146
10.1. Claims recoverableNote 2014/15 2013/1410 R’000 R’000
National departments Annex 3 10 242 11 052Total 10 242 11 052
The prior year balance has been restated to include the claims recoverable amounting to R11 052 million which was disclosed in annexure 6 as per 2013/14 annual report.
10.2. Staff debtNote 2014/15 2013/1410 R’000 R’000
Debt Account 1 822 1 615Salary related debts 29 155Total 1 851 1 770
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
166Vibrant, equitable, sustainable rural communities and food security for all
167Vibrant, equitable, sustainable rural communities and food security for all
166Vibrant, equitable, sustainable rural communities and food security for all
167
10.3. Other debtorsNote 2014/15 2013/1410 R’000 R’000
Rent non-recoverable - 5Disallowance miscellaneous 4 655 4 285Offi cial union - 5Medical aid - 3Garnishee order - 19Insurance deduction - 7Total 4 655 4 324
The amount of R6 903 million pertaining to Classical swine fever which was disclosed in the 2013/14 annual report, was reclassifi ed to Claims recoverable in note 10.1 above.
11. Voted funds to be surrendered to the Revenue Fund
Note 2014/15 2013/14R’000 R’000
Opening balance 61 864 58 886Transfer from statement of fi nancial performance (as restated)
17 710 11 578
Voted funds not requested/not received 1.1 - (8 600)Paid during the year (20 000) -Closing balance 59 574 61 864
12. Departmental revenue and NRF Receipts to be surrendered to the Revenue FundNote 2014/15 2013/14
R’000 R’000Opening balance 174 1 470Transfer from Statement of Financial Performance (as restated)
3 2 414 15 993
Own revenue included in appropriation 3 8 479 7 327Paid during the year (10 601) (24 616)Closing balance 466 174
13. Payables – currentNote 2014/15 2013/14
R’000 R’000Amounts owing to other entities Annex 4 504 -Clearing accounts 13.1 1 754 2 627Other payables 13.2 - 282Total 2 258 2 909
Vibrant, equitable, sustainable rural communities and food security for all
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167
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
166Vibrant, equitable, sustainable rural communities and food security for all
167
13.1. Clearing accounts
Note 2014/15 2013/1413 R’000 R’000
DescriptionSal: Motor fi nance deductions 96 710Sal: ACB recall 25 1 635Sal: Pension fund 250 3Sal: Housing 2 17Sal: Income tax 984 262Sal: Bargaining council 1 -Debt receivable income 395 -Debt receivable interest 1 -Total 1 754 2 627
13.2. Other payablesNote 2014/15 2013/1413 R’000 R’000
Receivable income - 282Total - 282
14. Net cash fl ow available from operating activities
Note 2014/15 2013/14R’000 R’000
Net surplus/(defi cit) as per Statement of Financial Performance 20 124 27 571Add back non cash/cash movements not deemed operating activities 99 800 96 926(Increase)/decrease in receivables – current 398 (1 897)(Increase)/decrease in other current assets 20 000 -Increase/(decrease) in payables – current (651) 1 072Proceeds from sale of capital assets (342) (244)Expenditure on capital assets 102 517 123 884Surrenders to Revenue Fund (30 601) (24 616)Voted funds not requested/not received - (8 600)Own revenue included in appropriation 8 479 7 327Net cash fl ow generated by operating activities 119 924 124 497
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
168Vibrant, equitable, sustainable rural communities and food security for all
169Vibrant, equitable, sustainable rural communities and food security for all
168Vibrant, equitable, sustainable rural communities and food security for all
169
15. Reconciliation of cash and cash equivalents for cash fl ow purposes
Note 2014/15 2013/14R’000 R’000
Consolidated Paymaster General account 9 18 283 -Cash receipts - 1Disbursements 9 (194) -Cash on hand - 339Total 18 089 340
16. Contingent liabilities and contingent assets
16.1. Contingent liabilitiesNote 2014/15 2013/14
R’000 R’000Liable to NatureHousing loan guarantees Employees Annex 2A 1 382 1 712Claims against the department Annex 2B 25 774 20 870Other Annex 2B 9 224 10 724Total 36 380 33 306
1) Uncertainties relating to amount or timing of outfl ow:
The Department is uncertain as to the clearance of HROPT pending negotiations between the Department and labour. The settlement agreement reached on HROPT does not include all affected employees hence the pending negotiations.
2) Prior year balance
The housing loan guarantees were restated to correct the balances as per Persal records.The opening balances pertaining to claims against the Department were adjusted based on the estimates obtained from the State Attorneys.
17. Commitments2014/15 2013/14
R’000 R’000Current expenditureApproved and contracted 14 902 4 954Approved but not yet contracted 3 376 4 321
18 278 9 275Capital expenditureApproved and contracted 11 774 14 544Approved but not yet contracted 12 4 462
11 786 19 006Total Commitments 30 064 28 281
1) Commitments longer than one year:
Multi-year and overlapping commitments is for infrastructure projects including Tsolo Vet Clinic amounting to R6,9 million, shearing shed, piggery structures, stock waters, security services etc.
2) Approved but not yet contracted
The prior year there was an approved contract for ICT infrastructure which was a once-off contract. The contract has been disclosed as part of approved and contracted.
Vibrant, equitable, sustainable rural communities and food security for all
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DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
168Vibrant, equitable, sustainable rural communities and food security for all
169
18. Accruals and payables not recognised
2014/15 2013/14R’000 R’000
Listed by economic classifi cation30 Days 30+ Days Total Total
Compensation of employees 8 329 - 8 329 5 460Goods and services 17 405 432 17 837 13 851Capital assets 516 - 516 -Total 26 250 432 26 682 19 311
2014/15 2013/14R’000 R’000
Listed by programme levelAdministration 15 400 9 654Sustainable resource management 1 457 548Farmer support and development 2 864 5 225Veterinary service 2 724 2 064Research and development service 1 032 217Agricultural economics 165 315Structured agricultural training 2 755 1 222Rural development coordination 285 66Total 26 682 19 311
Reasons for material accruals:The increase in Administration relates to leave gratuities and Telkom invoices that were received 1) after year end
Note 2014/15 2013/14R’000 R’000
Confi rmed balances with other government entities Annex 4 504 -Total 504 -
19. Employee benefi ts2014/15 2013/14
R’000 R’000Leave entitlement 62 414 60 230Service bonus 29 296 28 177Other 2 073 -Total 93 783 88 407
Other employee benefi ts includes the following;One month HROPT payment based on the terms of the settlement agreement which • amounts to R61 094.33Arrear salaries for artisans in OR Tambo which amounts to R1,463,123.50•
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
170Vibrant, equitable, sustainable rural communities and food security for all
171Vibrant, equitable, sustainable rural communities and food security for all
170Vibrant, equitable, sustainable rural communities and food security for all
171
20 Lease commitments
20.1. Operating leases expenditure
2014/15 Buildings and other fi xed structures Total
Not later than 1 year 6 275 6 275Later than 1 year and not later than 5 years 4 884 4 884
Later than fi ve years 910 910Total lease commitments 12 069 12 069
2013/14Buildings and other
fi xed structures Total
Not later than 1 year 5 010 5 010Later than 1 year and not later than 5 years 4 486 4 486
Later than fi ve years - -Total lease commitments 9 496 9 496
20.2. Finance leases expenditure**
2014/15 Motor Vehicles Machinery and equipment Total
Not later than 1 year 21 666 11 485 33 151Later than 1 year and not later than 5 years
17 508 6 822 24 330
Later than fi ve years - - -Total lease commitments 39 174 18 307 57 481
2013/14 Motor Vehicles Machinery and equipment Total
Not later than 1 year 24 017 12 362 36 379Later than 1 year and not later than 5 years
24 793 5 247 30 040
Later than fi ve years - - -Total lease commitments 48 810 17 609 66 419
General description of material leasing arrangement:The Department has entered into a lease agreement with the Department of Transport on 1 February 2012 for the provision of passenger vehicles for a period of 48 months for and for trucks for a period of 60 months. The amount disclosed here is based on the remaining period of the lease at reporting date and an agreed upon tariff for each category of vehicle. When new vehicles are received, the lease term is deemed to be 60 months and the remaining lease term is based on the months lapsed from delivery date to reporting date.
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DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
170Vibrant, equitable, sustainable rural communities and food security for all
171
21. Irregular expenditure
21.1. Reconciliation of irregular expenditureNote 2014/15 2013/14
R’000 R’000Opening balance 221 859 225 938Prior period error 21.5 (14 308)As restated 221 859 211 630Add: Irregular expenditure – relating to current year 21.2 4 958 12 638Less: Prior year amounts condoned 21.3 (86) (2 366)Less: Current year amounts condoned - (43)Irregular expenditure awaiting condonation 226 731 221 859
Analysis of awaiting condonation per age classifi cationCurrent year 4 872 12 595Prior years 221 859 209 264Total 226 731 221 859
The amount of R226 731 000 is divided between HROPT (R62 900 000) and the contravention of procurement procedures (R163 831 000). Although there has been contravention of the procurement procedures for the current year, goods and services has been received.
21.2. Details of irregular expenditure – current year
Incident Disciplinary steps taken/criminal proceedings
2014/15
R’000Goods procured with two quotations instead of three Under investigation 10Non-compliance with cost containment measures Under investigation 16Services rendered without approved order Under investigation 2 372Variation above threshold Under investigation 325Tender process not followed Under investigation 1 641Non-compliance with procurement process (ECATU) Under investigation 508Goods procured without an order Under investigation 86Total 4 958
21.3. Details of irregular expenditure condoned
Incident Condoned by (condoning authority)
2014/15
R’000Goods procured without an order Accounting Offi cer 86Total 86
21.4. Details of irregular expenditures under investigationIncident 2014/15
R’000Goods procured with two quotations instead of three 10Non-compliance with cost containment measures 16Services rendered without approved order 2 372Variation above threshold 325Tender process not followed 1 641Non-compliance with procurement process (ECATU) 508Total 4 872
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
172Vibrant, equitable, sustainable rural communities and food security for all
173Vibrant, equitable, sustainable rural communities and food security for all
172Vibrant, equitable, sustainable rural communities and food security for all
173
21.5. Prior period errorNote 2014/15
21 R’000Nature of prior period errorRelating to 2014/15Over-exp. in COE recorded as unauthorised expenditure and Irregular in 2007/08
(9 548)
Over-exp. in COE recorded as unauthorised expenditure and Irregular in 2008/09
(4 760)
Total (14 308)
The prior period error relates to prior amount incorrectly disclosed as both unauthorised expenditure and irregular expenditure. In terms of the guide on irregular expenditure, the unauthorised expenditure takes precedence. As a result, the prior year opening balance has been restated accordingly.
22. Fruitless and wasteful expenditure
22.1. Reconciliation of fruitless and wasteful expenditure 2014/15 2013/14
R’000 R’000Opening balance 9 210 8 742Fruitless and wasteful expenditure – relating to current year
564 468
Less: Amounts resolved (262) -Fruitless and wasteful expenditure awaiting resolution 9 512 9 210
22.2. Analysis of awaiting resolution per economic classifi cation2014/15 2013/14
Current: Goods and services 564 468Total 564 468
22.3. Analysis of Current year’s fruitless and wasteful expenditure Incident Disciplinary steps
taken/criminal proceedings
2013/14
R’000Accident repairs Under investigation 22Interest paid Under investigation 379No show charge for accommodation Under investigation 22Traffi c fi nes Under investigation 11Services/goods paid but not delivered Under investigation 130Total 564
Vibrant, equitable, sustainable rural communities and food security for all
172Vibrant, equitable, sustainable rural communities and food security for all
173
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
172Vibrant, equitable, sustainable rural communities and food security for all
173
23. Related party transactions
List related party relationships:Related parties of the Department are all the departments and entities in the Eastern Cape. The following ECRDA subsidiaries are included:
Sugar Beet RSA (Pty) Ltd;•
Kangela Citrus Farm (Pty) Ltd;•
North Pondoland (Pty) Ltd•
Fort Cox College•
All Provincial Departments•
The Agrarian Research and Development Agency has been integrated into ECRDA.All transactions between the Department and ECRDA and Fort Cox College were at arms-length. The transfer made during the year are disclosed in unaudited annexure 1A and 1BThe Department rents properties from the Department of Public Works free of charge.
24. Key management personnel
No. of Individuals
2014/15 2013/14
R’000 R’000Political offi ce bearers (provide detail below)Offi cials: 1 1 822 1 734
Level 15 to 16 5 5 175 4 897Level 14 (incl. CFO if at a lower level) 14 14 447 10 680
Family members of key management personnel
92 251 1 025
Total 23 695 18 336
25. Impairment: otherNote 2014/15 2013/14
R’000 R’000Other 13 676 6 903Total 13 676 6 903
The impairment relates to claims recoverable as a result of a dispute between Department of Agriculture, Forestry and Fisheries and the Department. Subsequent to the prior year, the Department has undertaken to investigate the validity of the dispute with the debtor hence the amount has been reclassifi ed as claims recoverable.
The impairment also relates to amounts owed by employees as a result of a Job evaluation that was performed by the Department. There is a case pending on this matter.These relates to amounts disclosed in receivables, note 10.
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
174Vibrant, equitable, sustainable rural communities and food security for all
175Vibrant, equitable, sustainable rural communities and food security for all
174Vibrant, equitable, sustainable rural communities and food security for all
175
26. Provisions
Note 2014/15 2013/14R’000 R’000
Performance awards 15 006 14 503Capped leave commitment 159 920 167 079Total 174 926 181 582
26.1. Reconciliation of movement in provisions – 2014/15Provision 1 Provision 2 Total provisions
R’000 R’000 R’000Provisions raised 15 006 159 920 174 926Closing balance 15 006 159 920 174 926
26.2. Reconciliation of movement in provisions –2013/14Provision 1 Provision 2 Total provisions
R’000 R’000 R’000Provisions raised 14 503 167 079 181 582Closing balance 14 503 167 079 181 582
The prior year amounts relating to performance awards and capped leave commitments were restated for completeness of disclosure notes.
Performance awards:1)
The timing pertaining to performance awards for 2014/2015 was uncertain at year end as the performance assessments were yet to be performed.
Capped leave commitments:2)
The timing of capped leave commitments was uncertain as the timing depends on when the capped leave will be taken by the employees.
Vibrant, equitable, sustainable rural communities and food security for all
174Vibrant, equitable, sustainable rural communities and food security for all
175
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
174Vibrant, equitable, sustainable rural communities and food security for all
175
27. Movable Tangible Capital Assets
Opening balance
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 137 547 28 111 (2 364) 163 294Transport assets 9 577 1 172 (579) 10 170Computer equipment 37 370 10 831 (933) 47 268Furniture and offi ce equipment 17 581 3 253 (5) 20 829Other machinery and equipment 73 019 12 855 (847) 85 027
BIOLOGICAL ASSETS 2 438 7 708 (6 628) 3 518Biological assets 2 438 7 708 (6 628) 3 518
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 139 985 35 819 (8 992) 166 812
The movable tangible capital assets includes assets from former ECATU amounting to R802,000 that were transferred to the Department following proclamation by the Premier to integrate ECATU into the Department with effect from 1 April 2014.
When the assets were transferred to the Department they were taken at cost using the invoices amount as per departmental policy. Assets with no supporting documentation were fair valued using the departmental asset register. Assets that were acquired prior to April 2002 and those that reached 5 years lifespan were valued at R1. All assets that could not be physically verifi ed were recorded as lost and referred to Loss Control Offi cer who is undertaking an investigation.
27.1. Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015
CashNon-cash
items
(Capital Work in Progress
current costs and
fi nance lease payments)
Received current, not paid( paid
current year, received prior
year TotalR’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 59 942 6 064 (37 895) - 28 111Transport assets 19 720 1 172 (19 720) - 1 172Computer equipment 6 790 4 041 - - 10 831Furniture and offi ce equipment 3 162 91 - - 3 253Other machinery and equipment 30 270 760 (18 175) - 12 855
BIOLOGICAL ASSETS 6 095 1 613 - - 7 708Biological assets 6 095 1 613 - - 7 708
TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS 66 037 7 677 (37 895) - 35 819
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
176Vibrant, equitable, sustainable rural communities and food security for all
177Vibrant, equitable, sustainable rural communities and food security for all
176Vibrant, equitable, sustainable rural communities and food security for all
177
27.2. Disposals
DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015
Sold for cash
Transfer out or destroyed or scrapped
Total disposals
Cash Received
ActualR’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT (731) (1 633) (2 364) 249Transport assets - (579) (579) -Computer equipment (475) (458) (933) 249Furniture and offi ce equipment (5) - (5) -Other machinery and equipment (251) (596) (847) -
BIOLOGICAL ASSETSBiological assets (229) (6 399) (6 628) 342
TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS (960) (8 032) (8 992) 591
27.3. MOVEMENT FOR 2013/14
MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Opening balance
Prior period error
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 132 488 (8 803) 33 798 19 936 137 547Transport assets 3 797 3 462 3 214 896 9 577Computer equipment 44 402 (10 704) 7 683 4 011 37 370Furniture and offi ce equipment 15 905 (783) 2 855 396 17 581Other machinery and equipment 68 384 (778) 20 046 14 633 73 019
BIOLOGICAL ASSETS 2 117 52 5 013 4 744 2 438Biological assets 2 117 52 5 013 4 744 2 438
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS 134 605 (8 751) 38 811 24 680 139 985
27.4. Prior period error
Note 2013/1427.3 R’000
Nature of prior period errorRelating to 2013/14Machinery and equipment (11 605)Biological assets 36Unverifi ed movable tangible assets and biological assets
2 818
Total (8 751)
Vibrant, equitable, sustainable rural communities and food security for all
176Vibrant, equitable, sustainable rural communities and food security for all
177
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
176Vibrant, equitable, sustainable rural communities and food security for all
177
The prior year adjustment relates to audit adjustment as per 2013/14 annual report. An amount of R2 818 million relates to unverifi ed assets which were identifi ed and verifi ed during the current year (2014/15).
27.5. Minor assets
Intangible assets Machinery and equipment
Biological assets
Total
R’000 R’000 R’000 R’000
Opening balance
48 31 505 4 483 36 036
Additions - 3 453 934 4 387Disposals - (257) (1 135) (1 392)TOTAL MINOR ASSETS 48 34 701 4 282 39 031
Intangible assets Machinery and equipment
Biological assets Total
Number of R1 minor assets 16 33 320 - 33 336Number of minor assets at cost 15 33712 4 102 37 829TOTAL NUMBER OF MINOR ASSETS 31 67 032 4 102 71 165
27.5.1 Prior period errorNote 2013/1427.3 R’000
Nature of prior period errorRelating to 2013/14Machinery and equipment 86Biological assets 2Total 88
Prior period error relates to audit adjustments as per 2013/14 annual report.
27.6 Movable assets written off
Machinery and equipment
Biological assets Total
R’000 R’000 R’000Assets written off 1 103 39 1 142TOTAL MOVABLE ASSETS WRITTEN OFF 1 103 39 1 142
Machinery and equipment
Biological assets Total
R’000 R’000 R’000Assets written off 1 988 193 2 181TOTAL MOVABLE ASSETS WRITTEN OFF 1 988 193 2 181
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
178Vibrant, equitable, sustainable rural communities and food security for all
179Vibrant, equitable, sustainable rural communities and food security for all
178Vibrant, equitable, sustainable rural communities and food security for all
179
Opening balance
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000
SOFTWARE 4 938 - - 4 938TOTAL INTANGIBLE CAPITAL ASSETS 4 938 - - 4 938
Opening balance
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000
SOFTWARE 4 938 - - 4 938TOTAL INTANGIBLE CAPITAL ASSETS 4 938 - - 4 938
28. Intangible Capital Assets
28.1. Movement for 2013/14MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Opening balance
Prior period error
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000 R’000
SOFTWARE 5 116 (178) - - 4 938TOTAL INTANGIBLE CAPITAL ASSETS 5 116 (178) - - 4938
28.3.1 Prior period error
Note 2013/1428.3 R’000
Nature of prior period errorRelating to 2013/14Software (178)Total (178)
29. Immovable Tangible Capital Assets
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015
Opening balance
Additions Disposals Closing Balance
R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES - 15 200 (15 200) -
TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS - 15 200 (15 200) -
The immovable tangible asset includes assets from former ECATU that were transferred to the Department following proclamation by the Premier to integrate ECATU into the department with effect from 1 April 2014.
Vibrant, equitable, sustainable rural communities and food security for all
178Vibrant, equitable, sustainable rural communities and food security for all
179
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
178Vibrant, equitable, sustainable rural communities and food security for all
179
29.1. AdditionsADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2015
Cash Non-cash (Capital Work in Progress
current costs and
fi nance lease payments)
Received current, not
paid(Paid current year, received
prior year)
Total
R’000 R’000 R’000 R’000 R’000
BUILDING AND OTHER FIXED STRUCTURES 36 480 15 200 (36 480) - 15 200Non-residential building - 15 200 - - 15 200Other fi xed structures 36 480 - (36 480) - -
TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS 36 480 15 200 (36 480) - 15 200
Immovable asset: None cash additions relate to buildings transferred from ECATU (R15 200 000) to the Department and were transferred out to Department of Roads and Public Works as custodians of immovable assets as prescribed by GIAMA.
The buildings were transferred and recognised into DRDAR’s books and immediately transferred to Department of Public Works in line with Section 42 of the PFMA. The buildings were recognised at fair value using an independent valour.
29.2. DISPOSALSold for cash Transfer out or
destroyed or scrapped
Total disposals
R’000 R’000 R’000BUILDINGS AND OTHER FIXED STRUCTURESNon-residential building - (15 200) (15 200)
TOTAL DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS - (15 200) (15 200)
30. Prior period errors
30.1. Correction of prior period errors Note 2014/15
R’000Assets: Movable tangible assets 27.4 (11 605)Intangible asset 28.3.1 (178)Unverifi ed movable tangible assets and biological assets
27.4 2 818
Inventory (4 228)Net effect (13 193)
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
180Vibrant, equitable, sustainable rural communities and food security for all
181Vibrant, equitable, sustainable rural communities and food security for all
180Vibrant, equitable, sustainable rural communities and food security for all
181
Note 2014/15R’000
Expenditure: Irregular expenditure 21.5 (14 308)Net effect (14 308)
Description of the nature of prior period errors:
The prior period error pertaining to movable tangible assets and intangible assets relates to prior 1) year audit adjustments
Unverifi ed movable tangible assets and biological assets relates to assets identifi ed during asset 2) verifi cation that were not recorded in the asset register
The irregular expenditure pertains to transactions that were incorrectly disclosed as both unauthorised 3) expenditure and irregular expenditure. The unauthorised expenditure amounted to R9 548 million and R4 760 million.
All unspent funds amounting R2 223 million as at 31 March 2014 were surrendered to Provincial Treasury as required by Treasury Regulation
Irregular expenditure
3.1 Irregular expenditure as disclosed as at 31 March 2014 was understated by R642 000. The Department will follow the departmental processes of investigating and condoning the irregular expenditure.
Vibrant, equitable, sustainable rural communities and food security for all
180Vibrant, equitable, sustainable rural communities and food security for all
181
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
180Vibrant, equitable, sustainable rural communities and food security for all
181
31.
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DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
182Vibrant, equitable, sustainable rural communities and food security for all
183Vibrant, equitable, sustainable rural communities and food security for all
182Vibrant, equitable, sustainable rural communities and food security for all
183
ANNE
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Vibrant, equitable, sustainable rural communities and food security for all
182Vibrant, equitable, sustainable rural communities and food security for all
183
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
182Vibrant, equitable, sustainable rural communities and food security for all
183
ANNE
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65
233
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
184Vibrant, equitable, sustainable rural communities and food security for all
185Vibrant, equitable, sustainable rural communities and food security for all
184Vibrant, equitable, sustainable rural communities and food security for all
185
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00R
’000
Mad
e in
kin
dD
onat
ions
(liv
esto
ck) f
or n
umer
ous
even
ts a
nd b
enefi
cia
ries
312
340
Live
stoc
k im
prov
emen
t sch
eme
6 24
04
912
TOTA
L6
552
5 25
2
ANN
EXUR
E 2A
STAT
EMEN
T O
F FI
NANC
IAL
GUA
RANT
EES
ISSU
ED A
S AT
31
MAR
CH 2
015
– LO
CAL
Gua
rant
orin
stitu
tion
Gua
rant
ee in
resp
ect o
f
Orig
inal
guar
ante
edca
pita
lam
ount
Ope
ning
ba
lanc
e1
April
201
4
Gua
rant
ees
draw
dow
nsdu
ring
the
year
Gua
rant
ees
repa
ymen
ts/
canc
elle
d/
redu
ced/
re
leas
ed d
urin
g th
e ye
ar
Reva
luat
ions
Clos
ing
bala
nce
31 M
arch
20
15
Gua
rant
eed
inte
rest
for
year
end
ed 3
1 M
arch
201
5
Real
ised
loss
es n
ot
reco
vera
ble
i.e. c
laim
s pa
id
out
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
R’00
0R’
000
Hous
ing
Stan
dard
Ba
nk-
233
--
-23
3-
-
Ned
bank
-20
2-
27-
175
--
Firs
tRan
d Ba
nk-
120
--
-12
0-
-
ABSA
-97
6-
254
-72
2-
-U
niqu
e Ba
nk-
15-
--
15-
-
TNBS
-62
-27
-35
--
Old
Mut
ual
-71
-22
-49
--
Ithal
a Li
mite
d-
28-
--
28-
-
ECD
C-
5-
--
5-
-TO
TAL
-1
712
-33
0-
1 38
2-
-
Vibrant, equitable, sustainable rural communities and food security for all
184Vibrant, equitable, sustainable rural communities and food security for all
185
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
184Vibrant, equitable, sustainable rural communities and food security for all
185
ANNEXURE 2BSTATEMENT OF CONTINGENT LIABILITIES AS AT 31 MARCH 2015
Nature of LiabilityOpeningBalance
1 April 2014
Liabilities incurred during
the year
Liabilities paid/cancelled/
reduced during the year
Liabilities recoverable
(Provide details
hereunder)
ClosingBalance
31 March 2015
R’000 R’000 R’000 R’000 R’000Claims against the department JM Ngxiya 102 - - - 102Gungqwana Notyhanga 5 - - - 5Zimasile Ncamiso 50 - - - 50Thomas Construction 95 - - - 95Ntuli Flora Novusile 50 - - - 50Ntuli Mphakamisi 5 - - - 5Mntambo & 107 others/Fort Cox College 500
- - -500
Ethesian Fozzie & 4 others/Ndlambe Municipality 500
- - -500
Nehawu on behalf of Gotshane & 55 others 750
- - -750
Ukhahlamba district municipality 1 - - - 1Nolwazi Aviator Cenge 48 - - - 48Monwabisi Yako 50 - - - 50WM Chagi & 29 others 16 500 - - - 16 500N Matiso 12 - - - 12DFM Securities 540 - - - 540Willards Travel Services 121 - - - 121EN Mpikeleli 361 - - - 361S Mayekiso & 4 others 50 - - - 50L. Sibanyoni 50 - - - 50Thando Sibabalwe Ndziweni 50 - - - 50Ntsasa Velesazi 28 - - - 28Aspidus 370cc 499 - - - 499Ntsokolo D. Sandi 100 - - - 100Eagles multi-purpose Primary Co-operative - 4 983 - - 4 983Dr TT Silwana (PSA) - 50 - - 50N Stemele - 100 - - 100Zimele Sandi & 3 others - 50 - - 50XPlosive Investments 902cc - 50 - - 50Zandisile M. Gwayana - 10 - - 10Bluden Coach Tours - 14 - - 14Winkie Nela - 50 - - 50Nkosinathi Miso 100 - 100 - -Mncedi N Bontsi 112 - 112 - -HT Hintso 10 - 10 - -Dabuthenge Mawonga 16 - 16 - -Acquilina Trading 22cc 55 - 55 - -Xolane Qanqane 39 - 39 - -ZC Holster 21 - 21 - -Adhip Singh 50 - 50 - -
Subtotal 20 870 5 307 (403) -- 25 774
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
186Vibrant, equitable, sustainable rural communities and food security for all
187Vibrant, equitable, sustainable rural communities and food security for all
186Vibrant, equitable, sustainable rural communities and food security for all
187
Nature of LiabilityOpeningBalance
1 April 2014
Liabilities incurred during
the year
Liabilities paid/cancelled/
reduced during the year
Liabilities recoverable
(Provide details
hereunder)
ClosingBalance
31 March 2015
R’000 R’000 R’000 R’000 R’000
Other
Occupational Specifi c Dispensation
1 500 - (1 500) - -
HROPT 9 224 - (9 224) - -Subtotal 10 724 - (10 724) - 25 774TOTAL 31 594 5 307 (11 127) - 25 774
Vibrant, equitable, sustainable rural communities and food security for all
186Vibrant, equitable, sustainable rural communities and food security for all
187
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
186Vibrant, equitable, sustainable rural communities and food security for all
187
ANNE
XURE
3CL
AIM
S RE
COVE
RABL
E
Gov
ernm
ent E
ntity
Con
fi rm
ed b
alan
ce o
utst
andi
ngU
ncon
fi rm
ed b
alan
ce
outs
tand
ing
Tota
lC
ash
in tr
ansi
t at y
ear e
nd
2014
/15
31/0
3/20
1531
/03/
2014
31/0
3/20
1531
/03/
2014
31/0
3/20
1531
/03/
2014
Rec
eipt
dat
e up
to s
ix (6
) w
orki
ng d
ays
afte
r yea
r end
Am
ount
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
R’0
00D
epar
tmen
t D
epar
tmen
t of A
gric
ultu
re &
En
viro
nmen
tal A
ffairs
(KZN
)-
--
395
-39
5-
-
Dep
artm
ent o
f Agr
icul
ture
, For
estry
&
Fish
erie
s: T
solo
--
1 22
11
635
1 22
11
635
--
Dep
artm
ent o
f Agr
icul
ture
, For
estry
&
Fish
erie
s: S
win
e Fe
ver
--
9 02
19
021
9 02
19
021
--
Offi
ce o
f the
Pre
mie
r-
33-
--
33-
-Su
b-to
tal
-33
10 2
4211
051
10 2
4211
084
--
Oth
er G
over
nmen
t Ent
ities
EC
ATU
-2
608
--
-2
608
Sub-
tota
l-
2 60
8-
--
2 60
8-
-TO
TAL
-2
641
10 2
4211
051
10 2
4213
692
--
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
188Vibrant, equitable, sustainable rural communities and food security for all
189Vibrant, equitable, sustainable rural communities and food security for all
188Vibrant, equitable, sustainable rural communities and food security for all
189
ANNE
XURE
4IN
TER-
GO
VERN
MEN
T PA
YABL
ES
GO
VER
NM
ENT
ENTI
TY
Con
fi rm
ed b
alan
ce
outs
tand
ing
Unc
onfi r
med
bal
ance
ou
tsta
ndin
gTO
TAL
Cas
h in
tran
sit a
t yea
r end
20
14/1
5 *
31/0
3/20
1531
/03/
2014
31/0
3/20
1531
/03/
2014
31/0
3/20
1531
/03/
2014
Paym
ent d
ate
up to
six
(6)
wor
king
day
s be
fore
yea
r en
dA
mou
ntR
’000
R’0
00R
’000
R’0
00R
’000
R’0
00R
’000
DEP
AR
TMEN
TSC
urre
ntD
epar
tmen
t of S
ocia
l D
evel
opm
ent
-38
--
-
38
--
Dep
artm
ent o
f Pub
lic W
ork-
EC-
32-
--
32-
-Su
btot
al-
70-
--
70-
-
OTH
ER G
OVE
RN
MEN
T EN
TITI
ES
Cur
rent
Chr
is H
ani D
istri
ct M
unic
ipal
ity38
5-
--
385
--
-Ts
olo:
SET
A11
9-
--
119
--
-To
tal
504
--
-50
4-
--
Vibrant, equitable, sustainable rural communities and food security for all
188Vibrant, equitable, sustainable rural communities and food security for all
189
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
188Vibrant, equitable, sustainable rural communities and food security for all
189
ANNEXURE 5INVENTORIES
InventoryNote
2014/15 2013/14R’000 R’000
Opening balance 959 7 955Add/(Less): Adjustments to prior year balance - (3 985)Add: Additions/Purchases - Cash 5.4 168 592 104 142Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (161 587) (80 558)Add/(Less): Adjustments (4 228) (26 595)Closing balance 3 736 959
DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2015
Vibrant, equitable, sustainable rural communities and food security for all
190Vibrant, equitable, sustainable rural communities and food security for all
PB