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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




2Vibrant, 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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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







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PART A: GENERAL INFORMATION







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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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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







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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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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.







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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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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;







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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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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.







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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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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

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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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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 underdevelopment 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”.







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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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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




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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



2014/2015


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.


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.


2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Regular reviews on implementation of Human Resource Management practices as per Compliance and Accountability Framework.


1.2 Number of reports on auxiliary services produced as per legislative framework to ensure conducive working environment.


1.3 Number of ICT implemented projects in accordance with the ICT Governance Framework to enhance technological effi ciencies.


2.1 Number of transformation and culture change interventions implemented in accordance with the Provincial Transformation Strategy.


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.


None.


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


Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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.


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


Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of projects implemented in accordance with the Communication plan.


1.2 Number of projects implemented in accordance with the Customer Care Plan.


1.3 Number of quality assurance assessments conducted to improve business processes.


Reason for all deviationsNone.









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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


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.


2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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.


1.2 Number of designs with specifi cations for agricultural engineering solutions provided for infrastructure, mechanization and appropriate technology applications.


1.3 Number of fi nal certifi cates issued for infrastructure constructed according to specifi cations.


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.


None.


None.



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Sub-Programme 2.2: Land Care

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



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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.


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.








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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).



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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.


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.


1.5 Number of assessments of land for alternative/diverse agricultural uses to benefi t farmers.


1.6 Number of land use plans developed for sustainable land use management for agricultural land.


1.7 Number of farm plans completed to outline planned farming enterprises based on available resources.


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.




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Sub-Programme 2.4: Disaster Risk ManagementObjective: To provide support service to clients with regards to agricultural disaster risk management.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of early warning advisory reports issued and disseminated for planning for adverse weather conditions.


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


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.



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.


Appropriation

R’000

Actual Expenditure

R’000


R’000

FinalAppropriation

R’000

Actual Expenditure

R’000


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







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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.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of farm assessment reports completed to determine the suitability of a production area for agricultural purposes.


1.2 Number of smallholder farmers supported with infrastructure and/or agricultural inputs to increase sustainable production.


1.3 Number of agricultural infrastructure development projects completed that contribute to increased agricultural production.


1.4 Number of hectares of existing irrigation system revitalized to increase production.


1.5 Number of mechanization units supported to increase productivity of crop and livestock enterprises.


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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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.



Sub-Programme 3.2: Extension and Advisory Services

Objective: To provide extension and advisory services to farmers.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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.


1.4 Number of implemented projects in accordance with the Extension Recovery Plan (ERP).



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







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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).



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of verifi ed food insecure households supported with production inputs to promote household food security.


1.2 Number of food security status reports compiled to assess the contribution of agriculture in ensuring food security.


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.




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


R’000

FinalAppropriation

R’000

Actual Expenditure

R’000


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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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


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


Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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.


1.3 Number of offi cial veterinary movement documents issued to facilitate movement of animals and animal products for disease control purposes.


1.4 Number of animals sampled/ tested for disease surveillance purposes.


1.5 Number of animal inspections for regulatory purposes to assess health status.


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







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SG 2: SO 2.1 Improved livestock production.Performance Indicator Actual


Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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


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.




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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.


2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of veterinary export certifi cates issued for the export of animals or animal products.


1.2 Number of export establishments audited for compliance with export standards.


1.3 Number of samples collected for residue monitoring at export establishments.


1.4 Number of export establishments registered for export purposes.


1.5 Number of reports on the development of a rapid response on adverse agricultural incidences and disasters.


1.6 Number of Controlled disease awareness campaigns and visibility sessions facilitated to capacitate the communities, public and staff.


1.7 Number of reports on early warning advisories issued and disseminated.

- 12 12 - No deviation


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.








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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.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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


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


1.3 Number of inspections to facilities processing animal products and by products.


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


1.5 Number of samples collected to monitor the safety of meat produced at abattoirs as per Meat Safety Act (Act 40 of 2000).



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.





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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.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of control audit reports for compliance monitoring and quality assurance of laboratories to ISO 17025.


1.2 Number of specimen tested for diagnostic purposes.


1.3 Number of tests performed on all samples submitted to establish the diagnosis.



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.



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.


Appropriation

R’000

Actual Expenditure

R’000


R’000

FinalAppropriation

R’000

Actual Expenditure

R’000


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







47

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.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of research projects implemented which address specifi c agriculture production constraints.


1.2 Number of scientifi c papers published on research done on agriculture production addressing production constraints.


1.3 Number of presentations made at scientifi c events done on agriculture production research.


1.4 Number of profi ling reports conducted for promotion of sustainable livelihoods in identifi ed areas.


1.5 Number of socio economic models designed to enhance developmental intervention.


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



47





47



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.8 Number of small stocks enterprises (poultry and piggery) developed to ensure sustainable food security.


1.9 Number of community based custom feeding centres supported for value addition.


1.10 Number of report on aquaculture production in the province.


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).


1.12 A centralised spatial database developed (repository) to make spatial information accessible to the whole Department.


1.13 Number of spatial data produced and distributed to end users for planning purposes.



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.







49


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.


Sub-Programme 5.2: Technology Transfer Services

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



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of presentations made at technology transfer events in order to impart knowledge to stakeholders.


1.2 Number of demonstration trials conducted with farmers in order impart knowledge and skills on farming practices.


1.3 Number of articles in popular media published or broadcasted to disseminate information.


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



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



49





49

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.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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


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


Reasons for all deviationsNone.



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.


Appropriation

R’000

Actual Expenditure

R’000


R’000

FinalAppropriation

R’000

Actual Expenditure

R’000


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)







51

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


2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of Agri-Businesses supported with agricultural economic services to access markets.


1.2 Number of clients supported with agricultural economic advice to improve production effi ciency.


1.3 Number of agricultural economic studies conducted to inform decision-making for business development.



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.





51





51

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.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


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.


1.2 Number of macroeconomic reports developed to assist clients to make informed economic decisions on or beyond farm gate for planning purposes.



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.


The Department will acquire QUANTEC software package, which is an up to date statistical and macro-economic database package.



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


R’000

FinalAppropriation

R’000

Actual Expenditure

R’000


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







53

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 2.2 • 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.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of students registered into a Higher Education and Training(HET) qualifi cations.


1.2 Number of students completing Higher Education and Training (HET) qualifi cations.



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.




53





53

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.



2013/2014

Annual Target

2014/2015

Actual Achievement

2014/2015

Deviation from planned target to

actual achievement for 2014/2015


1.1 Number of learners completing accredited skills programmes towards qualifi cation based on SAQA Standards.


1.2 Number of learners completing non-accredited short courses to improve their skills level.


1.3 Number of infrastructure projects in Agricultural Colleges developed to improve the farmer training capacity.


1.4 Number of Educators capacitated in agricultural science related fi elds to improve their understanding of the sector needs.


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.


1.7 Number of Farm-Workers completing non-accredited training to develop skilled Farm-Workers.


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.







55

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.


Appropriation

R’000

Actual Expenditure

R’000


R’000

FinalAppropriation

R’000

Actual Expenditure

R’000


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



55





55

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


Annual Target

2014/2015

Actual Achievement

2014/2015



2014/2015


1.1 Number of rural development projects supported through the ECRDA.





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


Annual Target

2014/2015

Actual Achievement

2014/2015


target to actual achievement for 2014/2015


1.1 Number of community capacity building sessions in support of rural development.


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







57




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).


Appropriation

R’000

Actual Expenditure

R’000


R’000

FinalAppropriation

R’000

Actual Expenditure

R’000


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



57





57

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.







59

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.



59





59

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







61

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•


Smallholder 104 53 157Subsistence 1,021 300 1,321Commercial 0 0 0Grand total 1,125 353 1,478



61





61

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)•


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







63

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.



63





63

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


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.







65

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


N/A

Amount spent by the Department (R’000)

45 603


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


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


N/A



65





65

Department who transferred the grant Department of Agriculture Forestry and Fisheries (DAFF)


R10 187 000


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.


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.


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


2 937


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.


N/A


Quarterly reporting.







67

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


13 Amazing Grace S Baartman Poultry structure with water and electricity connection, chicks, feed and vaccines


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







69

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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69

PART C: GOVERNANCE







71

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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71

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.







73

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:



73





73

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.







75

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.







77

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.







79

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.







81

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







83

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.







85

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


G Diutlwileng Bachelor of Commerce


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.•







87

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







89

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:-



89





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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.







91

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


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


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







101

Table 3.6.5: Terminations for the period 1 April 2014 and March 2015


Top Management - - - - 1 - - - 1Senior Management 2 - - - 1 - - - 3Professionally qualifi ed and experienced specialists and mid-management

48 - - 3 4 - - - 55


39 1 - 2 24 - - 6 72

Semi-skilled and discretionary decision making

47 - - - 11 - - - 58


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


2 - - - 3 - - - 5

Semi-skilled and discretionary decision making, Permanent

5 - - - - - - - 5


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


% 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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103

Critical Occupations Benefi ciary Profi le CostNumber of


% 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







105

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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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







107

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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107

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







109

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


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 - - - -



109





109

Occupational Categories

Gender Number of employees as at 1 April

2014

Training provided within the reporting period TotalLearnerships Skills

Programmes & other short

courses


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







111

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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111

PART E: FINANCIAL INFORMATION

REPORT OF THE AUDITOR-GENERALFor the year ended 31 March 2015





113

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.



113




113

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






115

(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



115




115

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





117

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DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE APPROPRIATION STATEMENT






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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



149





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






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



151

DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8CASH FLOW STATEMENT




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






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



153





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.







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.



155





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.







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.



157

DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8NOTES TO THE ANNUAL FINANCIAL STATEMENTS




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.







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



159





159

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







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.



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161

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







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

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







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



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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







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



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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







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.



169





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•







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.



171





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







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



173





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.







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.



175





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







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


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)



177





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


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


R’000 R’000 R’000Assets written off 1 988 193 2 181TOTAL MOVABLE ASSETS WRITTEN OFF 1 988 193 2 181







179

Opening balance


R’000 R’000 R’000 R’000

SOFTWARE 4 938 - - 4 938TOTAL INTANGIBLE CAPITAL ASSETS 4 938 - - 4 938

Opening 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


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


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.



179





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)







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.



181





181

31.

STAT

EMEN

T O

F C

ON

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ION

AL

GR

AN

TS R

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t

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nt s

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venu

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15 8

6612

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ks

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2 93

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288

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3 31

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1 72

129

1 72

127

5 52

216

199

285

609

275

597

DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM VOTE 8UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS






183

ANNE

XURE

1A

STAT

EMEN

T O

F TR

ANSF

ERS

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EPAR

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AGEN

CIES

AND

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OUN

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ENT/

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ENCY

/ ACC

OUN

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SFER

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sted

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rs

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ents

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003

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(Mac

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ia)

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A (M

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210

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196

The

curre

nt y

ear t

rans

fer t

o EC

RD

A in

clude

s an

am

ount

of R

7,5

milli

on fo

r the

Mac

adam

ia n

uts

proj

ect a

nd a

n am

ount

of R

2,76

5 m

illion

for M

agw

a Te

a Es

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ANNE

XURE

1B

STAT

EMEN

T O

F TR

ANSF

ERS

TO N

ON-

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IONS

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IONS

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SFER

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82

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ose

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e tra

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to s

ubsid

ies

the

oper

atio

ns o

f the

col

lege

inclu

ding

com

pens

atio

n of

em

ploy

ees.



183





183

ANNE

XURE

1C

STAT

EMEN

T O

F TR

ANSF

ERS

TO H

OUS

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LDS

HOUS

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TRAN

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37

ANNE

XURE

1D

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IFTS

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OF

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t. of

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ets

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t. of

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, Fis

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pute

r equ

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3 76

4-

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t. of

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, Fis

herie

s &

Fore

stry

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er m

achi

nery

and

equ

ipm

ent

400

-TO

TAL

5 33

65

233







185

ANNE

XURE

1E

STAT

EMEN

T O

F G

IFTS

, DO

NATI

ONS

AND

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PS M

ADE

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UR

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ION

OR

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IP

(Gro

up m

ajor

cat

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ies

but l

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tem

s in

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nam

e of

org

anis

atio

n

2014

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2013

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R’0

00R

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e in

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(liv

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2

ANN

EXUR

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STAT

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F FI

NANC

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RANT

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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

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ning

ba

lanc

e1

April

201

4

Gua

rant

ees

draw

dow

nsdu

ring

the

year

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rant

ees

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ts/

canc

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ced/

re

leas

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g th

e ye

ar

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luat

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ing

bala

nce

31 M

arch

20

15

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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

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dard

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nk-

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--

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3-

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bank

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27-

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--

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tRan

d Ba

nk-

120

--

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0-

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-97

6-

254

-72

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nk-

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--

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-62

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--

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0-

1 38

2-

-



185





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







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



187





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

--

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608

Sub-

tota

l-

2 60

8-

--

2 60

8-

-TO

TAL

-2

641

10 2

4211

051

10 2

4213

692

--







189

ANNE

XURE

4IN

TER-

GO

VERN

MEN

T PA

YABL

ES

GO

VER

NM

ENT

ENTI

TY

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fi rm

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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

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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-

--



189





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





PB

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 vote 8 2014 / 15 - south africa · annual report vote 8 2014 / 15 pr 22/2015 isbn:...

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