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1Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ContentsPart A:GENERAL INFORMATION ..................................................................................................................... 2
1. Name of Department: ................................................................................................................................................................... 3
2. List of Abbreviations/Acronyms ............................................................................................................................................. 4
3. Strategic Overview ........................................................................................................................................................................... 8
4. Legislative and other Mandates ............................................................................................................................................... 9
5. Organisational Structure .............................................................................................................................................................. 12
6. Foreword by the MEC .................................................................................................................................................................... 14
PART B: PERFORMANCE INFORMATION ................................................................................................... 21
1. Statement of Responsibility for Performance Information for the year ended 31 March 2014 ..... 22
2. Auditor General’s Report: Predetermined Objectives ............................................................................................... 23
3. Overview of Departmental Performance .......................................................................................................................... 24
4. Strategic Outcome Oriented Goals ....................................................................................................................................... 35
5. Performance Information by Programme ........................................................................................................................ 35
6. Summary of Financial Information .................................................................................................................................... 73
PART C: GOVERNANCE ..............................................................................................851. Introduction .......................................................................................................................................................................................... 86
2. Risk Management ............................................................................................................................................................................ 86
3. Fraud and Corruption .................................................................................................................................................................. 88
4. Minimising Conflict of Interest ................................................................................................................................................. 89
5. Code of Conduct ............................................................................................................................................................................. 89
6. Occupational Health and Safety (HOS) .............................................................................................................................. 90
7. Portfolio Committees ..................................................................................................................................................................... 90
8. Internal Control Unit ....................................................................................................................................................................... 90
Part D: HUMAN RESOURCE MANAGEMENT ............................................................................................ 95
1. Legislature that Governs HR Management .................................................................................................................... 96
2. Introduction ........................................................................................................................................................................................ 96
3. Human Resource Oversight Statistics ................................................................................................................................ 99
Part E: FINANCIAL INFORMATION .................................................................................................................. 138
1. Report of the Accounting Officer ........................................................................................................................................... 140
2. General Review of the State of Financial Affairs ........................................................................................................... 140
3. Report of the Auditor-General ................................................................................................................................................ 160
4. Annual Financial Statements ..................................................................................................................................................... 164
2 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Part A: GENERAL INFORMATION
3Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1. NAME OF DEPARTMENT:
Gauteng Department of Agriculture, and Rural Development
PHYSICAL ADDRESS OF HEAD OFFICE: 11 Diagonal Street
Diamond Building
Newtown
Johannesburg 2000
POSTAL ADDRESS OF HEAD OFFICE: PO Box 8169 Johannesburg 2001
CONTACT TELEPHONE NUMBER/S: 011 240 2500
FAX NUMBER: 086 420 1000
EMAIL ADDRESS: [email protected]
WEBSITE ADDRESS: www.gdard.gpg.gov.za
4 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
2. LIST OF ABBREVIATIONS/ACRONYMS
ABET: Adult Basic Education and Training
ABNR: Abey Bailey Nature Reserve
AFASA: African Farmers Association of South Africa
AG: Auditor General
AgriBEE: Agricultural Black Economic Empowerment
AGRISA: Agriculture South Africa
AO: Accounting Officer
ARC: Agricultural Research Council
BAS: Basic Accounting System
BBBEE: Broad-Based Black Economic Empowerment
BkB: Bontle ke Botho
CARA: Conservation of Agricultural Resources Act, 1983 (Act 43 of 1983)
CAPEX: Capital Expenditure
CASP: Comprehensive Agricultural Support Programme
CBNRM: Community-Based Natural Resources Management
CDM: Clean Development Mechanism
CEO: Chief Executive Officer
CITES: Convention on International Trade in Endangered Species of Fauna and
Flora
COJ: City of Johannesburg
COH: Cradle of Humankind
CRDP: Comprehensive Rural Development Programme
CSIR: Council for Scientific and Industrial Research
DAC: Departmental Acquisition Council
DCS: Department of Community Safety
DDG: Deputy Director General
DEA: Department of Environmental Affairs
DED: Department of Economic Development
DFA: Development Facilitation Act
DOH: Department of Health
DID: Department of Infrastructure Development
DSD Department of Social Development
DLGH: Department of Local Government and Housing
DME: Department of Minerals and Energy
DOA: Department of Agriculture
DOL: Department of Labour
DPLG: Department of Planning and Local Government
DRT: Department of Roads and Transport
DSACR: Department of Sports, Arts, Culture and Recreation
DTI: Department of Trade and Industry
DWA: Department of Water Affairs
EAP: Employee Assistance Programme
ECA: Environment Conservation Act
EE: Employment Equity
EIA: Environmental Impact Assessment
EIP: Environmental Implementation Plan
EMC: Environmental Monitoring Committee
5Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
List of Abbreviations /Acronyms continued
EMI: Environmental Management Inspectorate/Inspector
EMF: Environmental Management Framework
EMP: Environmental Management Plan
EMPR: Environmental Management Performance Report
EPIA: Environmental Planning and Impact Assessment
EPM: Enterprise Project Management
EPWP: Expanded Public Works Programme
EXCO: Executive Council
FBO: Faith-Based Organisation
FAWU: Food and Allied Workers Union
FSD: Farmer Support and Development
GABP: Gauteng Biodiversity Analysis Project
GADS: Gauteng Agricultural Development Strategy
GAPA: Gauteng Agriculture Potential Atlas
GAPROFU: Gauteng Province Farmers’ Union
GCRDS: Gauteng Comprehensive Rural Development Strategy
GDARD: Gauteng Department of Agriculture and Rural Development
GDLG: Gauteng Department of Local Government
GDS: Growth and Development Strategy
GEDA: Gauteng Economic Development Agency
GDSHD: Gauteng Department of Health
GDSD Gauteng Department of Social Development
GDP: Gross Domestic Product
GEIP: Gauteng Environmental Implementation Plan
GEP: Gauteng Enterprise Propeller
GG: Government Garage
GIED: Gauteng Institute for Education Development
GIS: Geographic Information System
GPG: Gauteng Provincial Government
GSSC: Gauteng Shared Service Centre
GTA: Gauteng Tourism Authority
GTRW: Gauteng Transport and Road Works
GVS: Government Veterinary Service
HFS: Household Food Security
HOD: Head of Department
HRC: Human Rights Commission
HRD: Human Resource Development
HRM: Human Resource Management
ICT: Information Communication Technology
IDP: Integrated Development Plan
IEM: Integrated Environmental Management
IGR: Intergovernmental Relations
IPGA: Indigenous Plant Growers Association
ISO: International Standards Organisation
ITCA: Intergovernmental Technical Committee on Agriculture
IUCN: International Union for Conservation of Nature
LS: Legal Services
LPG: Liquid Petroleum Gas
6 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
List of Abbreviations /Acronyms continued
LRAD: Land Redistribution and Agricultural Development Programme
MA: Management Authority
MAC: Management Advisory Committee
MAFISA: Micro Agricultural Financial Institutions of South Africa
MEC: Member of the Executive Council
MMC: Member of the Mayoral Committee
MINTECH: Ministers’ Technical Committee
MINMEC: Minister and MEC Meeting
MIS: Management Information System
MOU: Memorandum of Understanding
MPC: Management Plan Committee
MPCC: Multipurpose Community Centre
MPNE: Magaliesburg Protected Natural Environment
NAFU: National African Farmers Union
NAMC: National Agricultural Marketing Council
NARYSEC: National Rural Youth Service Corps
NDRDLR: National Department of Rural Development and Land Reform
NEMA: National Environmental Management Act, 1998 (Act 107 of 1998) as amended
NEF: National Empowerment Fund
NGO: Non-Governmental Organisation
NRM: Natural Resources Management
NERPO: National Emerging Red Meat Producers Organisation
NPO: Not for Profit Organisation
OOP: Office of the Premier
OVI: Onderstepoort Veterinary Institute
PAM: Protected Areas Management
PFMA: Public Finance Management Act (Act 1 of 1999) as amended
PAIA: Promotion of Access to Information Act (Act 2 of 2000)
PMISA: Programme Information Management System for Agriculture
PIPS: Priority Inorganic Pollutants
PLAS: Pro-active Land Acquisition Strategy
POPS: Priority Organic Pollutants
PPP: Private Public Partnership
PSC: Project Steering Committee
PSD: Production Support and Development
PWD: People with Disability
RAMSAR: The Convention on Wetlands, named after Ramsar, a city in Iran
RMDEC: Regional Mining Development and Environmental Committee
ROD: Record of Decision
RPU: Resource Planning and Utilisation
SAFEC: South African Flower Export Association
SAMIC: South African Meat Industry Company
SANAS: South Africa National Accrediting Service
SAHRA: South African Heritage Resource Authority
SANAS: South African National Accreditation System
SANBI: South African National Botanic Institute
SANDF: South African National Defence Force
SANEL: South Africa National Epilepsy League
7Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
List of Abbreviations /Acronyms continued
SAPPO: South African Pig Producers Organisation
SAPS: South African Police Service
SAQA: South African Qualifications Authority
SAVLSF: South Africa Veterinary Laboratory Scientific Forum
SASVEPM: Southern African Veterinary Society for Epidemiology and Preventive Medicine
SBNR: Suikerbosrand Nature Reserve
SBR: Suikerbosrand
SDIP: Service Delivery Improvement Plan
SDP: Spatial Development Plan
SEA: Strategic Environmental Assessment
SEDA: Small Enterprise Development Agency
SETA: Service and Education Training Authority
SLA: Service Level Agreement
SMME: Small, Medium and Micro Enterprise(s)
SRM: Sustainable Resource Management (Directorate)
SUE: Sustainable Use of Environment (Chief Directorate)
TACQA: Technology Advisory Committee on Quality Assurance
TDAC: Training and Development Advisory Committee
TDS: Technology Development and Support
TAU: Transvaal Agricultural Union
TOR: Terms of Reference
UCT: University of Cape Town
R & D: Research and Development
UNESCO: United Nations Educational, Scientific and Cultural Organisation
VSNRM: Veterinary Services and Natural Resource Management
WARD: Women in Agriculture and Rural Development
WESSA: Wildlife and Environment Society of South Africa
WoF: Working on Fire
YARD: Youth in Agriculture and Rural Development
8 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3. STRATEGIC OVERVIEW
3.1. Vision
Vibrant, equitable and sustainable communities, food security for all, protected and
enhanced environmental assets and natural resources.
3.2. Mission
Unlocking the full potential of environment, agriculture and rural development to enhance
the economic, ecological and social wealth of all the people of Gauteng through:
• Improved access to affordable, diverse and nutritious food;
• Accelerated sustainable agrarian reform;
• Championing of animal health and welfare in a cost sharing/recovery model;
• Improved rural services and infrastructure to support sustainable livelihoods with
respect to agriculture, environment, education, health, transport and other forms of
infrastructure and services;
• Rural job creation linked to skills development and promoting economic livelihoods;
• Sustainable management of natural resources by promoting conservation, better
management of waste, reduced greenhouse emissions;
• Efficient and effective governance, quality service delivery and access for an
empowered, active and responsible citizenship.
3.3. Values
The Department subscribes to and is committed to demonstrate the following values:
• Integrity
• Commitment
• Accountability
• Respectfulness
• Empowerment
• Team orientation
• Trend setting
• Responsiveness
9Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
4. LEGISLATIVE AND OTHER MANDATES
4.1. Constitutional Mandate
The department derives its mandate from Section 24 and Section 27 of the Constitution of the
Republic of South Africa, 1996.
Section 24 of the Bill of Rights in the Constitution
states that
“24. Everyone has the right -
(a) to an environment that is not harmful to their health or well-being and
(b) to have the environment protected for the benefit of present and future generations through
reasonable legislative and other measures that —
I. prevent pollution and ecological degradation;
II. promote conservation; and
III. secure ecologically sustainable development and use of natural resources while promoting
justifiable economic and social development.”
Section 27 of the Bill of Rights in the Constitution states that
“27. (1) Everyone has the right to have access to-
(a) health care services, including reproductive health care;
(b) (sufficient food and water; and
(c) social security, including, if they are unable to support themselves and their dependents,
appropriate social assistance.
(2) The state must take reasonable legislative and other measures within its available resources, to
achieve the progressive realisation of each of these rights.”
Schedule 4 of the Constitution defines the following areas of concurrent national and provincial
legislative competence:
PART A PART B (these are local government matters)
• Animal control and diseases • Water and sanitation services limited
to potable water supply systems
and domestic waste-water disposal
systems
• Environment
• Nature conservation, excluding national parks, national botanic gardens and marine resources
• Pollution control
• Soil conservation
10 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Schedule 5 of the Constitution defines the following area of exclusive provincial legislative competence:
PART A PART B (these are local government matters)
• Abattoirs • Control of public nuisances
• Veterinary services, excluding regulation of the
profession
• Fencing and fences
• Markets
• Municipal abattoirs
• Municipal parks and recreation
• Noise pollution
• Pounds
• Refuse removal, refuse dumps and
solid waste disposal
4.2. Legislative Mandates
The legislative mandate of the Department is mainly derived from national legislation, which provides
for the functional responsibilities of the Department. The approach of the Department is to utilize
national legislation and provincial laws to address specific provincial variations only if the national
legislative framework does not suffice.
The Department’s responsibilities are carried out in terms of the following major national laws:
• Abattoir Hygiene Act, 1992 (Act 121 of 1992)
• Animal Diseases Act, 1992 (Act 35 of 1992)
• Atmospheric Pollution Prevention Act, 1965 (Act 45 of 1965)
• Conservation of Agricultural Resources Act, 1983 (Act 43 of 1983)
• Environment Conservation Act, 1989 (Act 73 of 1989), as amended
• Environmental Impact Assessment Regulations (Regulations 1182 and 1183), 1997 as amended
• Environmental Impact Assessment Regulations 2006
• Hazardous Substances Act, 1973 (Act 15 of 1973)
• Meat Safety Act, 2000 (Act 20 of 2000)
• National Environment Management Act, 1998 (Act 107 of 1998), as amended
• National Environment Management: Biodiversity Act (Act 57 of 2003)
• National Environment Management: Protected Areas Act (Act 10 of 2004)
• National Environmental Management: Waste Act, 2008 (Act 59 of 2008)
• National Environmental Management: Air Quality Act, 2004 (Act 39 of 2004)
• National Water Act, 1998 (Act 36 of 1998)
• World Heritage Convention Act, 1999 (Act 49 of 1999)
• National Veld and Forest Fire Act (Act 101 1998).
• Basic Conditions of Employment Act, 1997 (Act 75 of 1997)
• Broad Based Black Economic Empowerment Act, 2003 (Act 53 of 2003)
• Employment Equity Act, 1998 (Act 5 of 1998)
• Labour Relations Act, 1995 (Act 66 of 1995)
• Preferential Procurement Policy Framework Act, 2000 (Act 5 of 2000)
• Prevention and Combating of Corrupt Activities Act, 2004 (Act 12 of 2004)
• Promotion of Access to Information Act, 2000 (Act 2 of 2000)
11Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Promotion of Administrative Justice Act, 2000 (Act 3 of 2000)
• Promotion of Equality and Elimination of Unfair Discrimination Act, 2000 (Act 4 of 2000)
• Protection of Information Act, 1982 (Act 84 of 1982)
• Public Finance Management Act, 1999
• Public Service Act, 1994 (Act 103 of 1994) and Amendment Act of 1999
• Skills Development Act, 1998
The Department’s responsibilities are further carried out in terms of the following provincial laws and subordinate legislation:
• Nature Conservation Ordinance, 1983
• Noise Control Regulations, 1999
4.3. Policy Mandates
In addition to the legislation, the mandate of the
Department derives from the following policies:• The Gauteng Growth and Development Strategy
• The Gauteng Spatial Development Perspective
• The Gauteng Spatial Development Framework
• The Gauteng Strategy for Sustainable Development
• The Gauteng Agricultural Strategy
• The Gauteng Rural Development Strategy
• The Gauteng Clean and Green Strategy
• The Gauteng Agricultural Potential Atlas
• The Gauteng Communication Network Strategy, March 2002 (as amended)
• The GPG Preferential Procurement Policy
• The GPG Gender Policy Framework
• Environmental Implementation Plan
• National Biodiversity Strategy and Action Plan
• National Waste Management Strategy
• South African Air Quality Information System
• Ridges Policy Guideline for Gauteng, September 2001 (as amended)
• Buffer zones Guideline, March 2002
• Red Data Species Policy
• National Biodiversity Framework
• Convention on International Trade of Endangered Species
• National Protected Area Expansion Strategy
• South Africa’s Economic Transformation: A Strategy for Broad-Based Black Economic
Empowerment.
• South Africa’s National Policy Framework for Women’s Empowerment and Gender
Equality
• Gauteng Provincial Government Broad-Based Black Economic Empowerment Strategy
• The Codes of Good Practice on Broad-Based Black Economic Empowerment
• National Strategic Plan (NSP) on HIV and AIDS
• Sexual Harassment Policy
12 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
5. ORGANISATIONAL STRUCTURE
13Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ENTITIES REPORTING TO THE MECThe following entity reports to the MEC for Agriculture and Rural Development:
Name of Entity Legislative Mandate
Financial Relationship
Nature of Operations
Gauteng Department of Agriculture and Rural Development (GDARD) Cost Recovery Trading Entity
Governed by Regulation 19 of the Treasury Regulations
The Department Charges a 5% Management Fee form the Trading Entity to manage Revenue collection.
The Department’s Cost Recovery Trading Entity recovers costs in the following areas:• Veterinary Services and
Conservation – CITES, export certification and post-import control revenue and associated costs.
• Conservation – Visitor services collections and associated costs.
• Compliance and Enforcement – Section 24G NEMA Administrative fines as stated above.
14 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
6. FOREWORD BY THE MEC
I am happy to present our fifth Annual Report of the
department of Agriculture and Rural Development to the
citizens of Gauteng for the financial year 2013-14.
Let me start by introducing our new Head of Department,
Ms Thandeka Mbassa, who joined the department in
March 2014. She has come in place of Ms Simangele
Sekgobela who served the department with determination
for the past two years.
Once again the department has made significant strides
towards fulfilling our mandate on Agriculture, Rural
Development, Environment and Conservation towards
our vision of building “Vibrant, equitable and sustainable
communities that contribute to Food Security for all,
protected and enhanced environmental assets and
natural resources.”
The state of Agriculture in Gauteng revealed that
agriculture in Gauteng is thriving and a big contributor to the economy of Gauteng. This was because we
committed ourselves to Sustainable Agrarian Reform inclusive with thriving small holder and commercial
farmers. We are pleased to report that we have promoted and supported a number of agricultural cooperatives,
small holder and commercial farmers throughout the value chain. This included agro-processing facilities,
skills development, business development, access to finance and markets, farming equipment, and on and
off-farm infrastructure programs.
According to Stats SA, 2013c, even though the Share of Primary Agriculture contributes less than 1% to
Gauteng’s GDP, the sector has impacted positively on employment creation. More investment in the sector in
future will have a multiplier effect on employment creation. It is also important to note that the true value of the
sector is in forward and backward linkages of Manufacturing which contributes 14,2% to Gauteng’s GDP. This
includes Agro-processing of food, beverages, tobacco, textiles clothing, leather, etc.
It is during this financial year that we managed to make considerable strides in improving rural services to
support livelihoods. Guided by our Comprehensive Rural Development Program (CRDP) and the social
compact signed with all roleplayers, including the Councils of Stakeholders, we provided the Comprehensive
Agricultural Support Program to rural farmers.
A number of rural roads were surfaced, a number of rural houses were built and some rural schools were
renovated. About 1800 youth from our four rural nodes were recruited to the NARYSEC program, skilled and
placed in various infrastructure development projects. The outcome of this work is improved rural household
and community livelihoods. More work still needs to be done to de-racialize the rural economy and to provide
basic services and infrastructure.
We’ve also trained farmers on water saving technologies and through the implementation of our Wetlands
management plans, we engaged youth to rehabilitate ten wetlands including the Colbyn valley in Tshwane and
Pan Cluster in Ekurhuleni.
15Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Our work towards reducing impacts of climate change and improving air quality, resulted in the development of
the Greenhouse Gases Inventory and air management plan implementation, including a Basa Njengo Magogo
project or making fire upside down. The implementation of our Climate Change Strategy on mitigation and
adaptation must be upscaled.
To contribute to sustainable use and management of land and waste, we have been 80% effective in responding
to the Environmental Impact Assessment applications for various land developments. We facilitated the
Clean and Green campaigns including Bontle Ke Botho which resulted in planting of over 666 252 trees and
rehabilitating illegal dumps into mini parks and food gardens.
A lot of work has been done together with the National Department of Water and Environment Affairs to address
the Acid Mine Drainage challenges in the Western basin such that acid mine water has stopped decanting. A
new pumping plant was installed at the Eastern basin and work is in progress in the Central basin. The situation
is under control as a result of the Intervention of the Inter Ministerial Committee. We also developed a 5-year
plan on acid mine drainage in line with the national long-term plan. Going forward this plan will be implemented
to address this risk to the environment.
To protect our Biodiversity, we manage six nature reserves with many plant and animal species. These are
used for educational and Landcare programs with school children and youth. We have developed the Nature
Conservation Bill aimed at sound management of our Biodiversity. We were the first Province to Designate
Environmental Inspectors who ensured that all those who transgress environmental laws are successfully
prosecuted.
My sincere gratitude goes to the HOD: Ms Thandeka Mbassa for steering GDARD in the right direction,
the Premier of Gauteng, my MEC colleagues for their leadership and guidance, the Legislature led by the
Speaker, the Portfolio Committee led by Hon. Sikhakhane for their oversight work, MMCs and officials from
local government, all departments and sector partners, and many diverse role players in the sectors and other
stakeholders and my family for their support.
Thank you .
Ms Nandi Mayathula-Khoza
Member of the Executive Council: Agriculture, Rural and Social Development
16 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
MESSAGE FROM THE HOD
This is the Executive Summary of the Annual Report
of the Gauteng Department of Agriculture and Rural
Development for the 2013/14 financial year. The
2013/14 financial year is significant as it brings to
a close the 4th five-year term of government. The
report outlines significant services that were rendered
by the Department to the citizens of Gauteng, the
Department’s governance structures, the Department’s
human resources, the annual financial statement of
the Department and the Department’s Cost Recovery
entity. Challenges faced by the Department in each of
these areas are also highlighted.
The expenditure for the 2013/14 financial year was
R550,741,000 of the appropriated budget of R554,
177, 000, representing an expenditure of 99.4%.
Expenditure trends are consistently improving, an
illustration of the Department’s improved ability to
spend on its conditional grants and Equitable Share allocation. The main reason for the under spending of
0.6% was a result of vacancies which remained unfilled for a greater part of the financial year due to difficulty in
obtaining suitably qualified individuals. The Accounting Officer’s Report and Human Resource Management
section outlines this challenge in greater detail and the plans to address this challenge in the coming financial
year.
• The approval of two major Plans: the Gauteng 20-Year Food Security Plan and the Gauteng 5-Year Acid
Mine Drainage (AMD) Plan. The Gauteng 20 Year Food Security Plan sets out a portfolio of targeted
strategic programmes to address food insecurity in the Province in a comprehensive way, reducing the
2011 levels of hunger and inadequate access to food by half by 2030. Plans are in place to develop a
strategy that will focus on urban agriculture that will deal with food insecurity in large cities like Tshwane
and Johannesburg Metros.
• The Gauteng 5-Year Acid Mine Drainage Plan gives effect to the provincial response to the mine water
contamination challenge in the Province. The Plan outlines various passive treatment and piloting options
and institutional and financial models to address the challenge. It also supports and complements
national initiatives by the Department of Water Affairs to address this challenge.
In real terms, the contribution of the agriculture sector to the Gauteng economy is estimated to be at a low of
0,4% and this can lead to the conclusion that agriculture is not important in Gauteng. However, according to
a report by OABS Development, the value of the agricultural contribution should be looked at in the context of
backwards and forward linkages. According to this study that was commissioned by GDARD, “ the contribution
of agriculture based on gross operating surplus of sectors like food, beverages, tobacco, textiles, clothing,
leather, wood and wood products, could be as high as 38% in the case of the national economy and as high
as a 33.5% in the case of Gauteng.” Efforts to transform and grow the agricultural sector should therefore focus
on secondary agriculture, not ignoring the importance of primary agriculture in food security, poverty alleviation
and job creation.
17Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Gauteng falls mainly within the highly intensive, diversified commercial and subsistence agricultural zones
of South Africa and is known for grain cropping, ranching and dairy, poultry and piggery farms. A significant
component of the agricultural sector is maize production, with Sedibeng, West Rand and Greater Tshwane the
major maize producing areas in the province. Ground-nuts, sunflowers, cotton and sorghum are grown in the
Bronkhorstspruit, Heidelberg and Cullinan areas.
Gauteng Province commands the greatest share of South Africa’s maize exports, followed by the Kwazulu-
Natal and Western Cape Provinces. Most exporters of maize are situated in Gauteng Province and the greatest
proportion of maize trading occurs through the Randfontein grain market. Maize is also exported through two
major harbours in Durban and Cape Town. Maize is the most important grain crop in South Africa, and is both
the major feed grain and the staple food for the majority of South Africa’s population.
The Maize Triangle is a mitigation strategy to curb the impact of high food prices on poor households of
Gauteng. The Maize Triangle Programme is aimed at supporting the maize producers of Gauteng Province in
order to:
• Unleash their potential to create and develop income-generating activities and sustainable decent
employment;
• Reduce poverty, develop human resource capacities and knowledge;
• Strengthen competitiveness and sustainability and improve social and economic well-being; and,
• Contribute to sustainable human development.
The Department achieved 83% of the targets set for the 2013/14 financial year. The following specific
achievements are worthy of mention:
The Maize Triangle Programme which has been running in Gauteng Province from 2009 with one of the pillars of
the Programme being to establish domestic and international markets for maize farmers. Zivuseni Agricultural
Cooperative comprised of 35 local small producers exported 72 tons of maize whilst Siyibane Farming Project
exported 164.14 ton to Lesotho. This was in partnership with the WFP, which is an internationally recognized
agency of the United Nations (UN). More farmers are expected to export maize and dry beans after the harvest
for the current planting season.
To date, through partnership with the Rand Water Foundation, 276 farmers within the Maize Triangle (Tshwane,
Ekurhuleni, Sedibeng, and West Rand) have been supplied with production inputs (maize seeds, fertilizers,
herbicides and fuel), training and capacity building. In addition, 31 maize-producing farms have been settled
within the Maize Triangle through the Land Reform Farm Programme (DRDLR) and supported with infrastructure
such as boreholes, storage facilities, fencing, irrigation systems, farm implements and production stock. The
operational sustainability of support infrastructure has been identified as an area that requires attention. Plans
are in place to develop a strategy that will address sustainability of infrastructure and ensuring that it is well
maximum utilization of this infrastructure
The Maize Triangle Revitalization project has so far created 765 jobs during the planting and harvest seasons
and the farmers are assisted with various interventions such as on- and-off-farm infrastructure, mechanization
and production inputs.
18 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Aligned to the approved Agricultural Co-operative Plan, 135 co-operatives from Tshwane, Sedibeng, West
Rand, Ekurhuleni and City of Johannesburg received support in the form of on- and off-farm infrastructure,
production inputs such as chickens, feed, maize, seedlings, herbicides, etc., and training and capacity
building; 23 co-operatives received contracts from government and successfully supply produce to hospitals
and orphanages. However, it is acknowledged that more support to co-operatives is needed to promote
sustainability. The department is particularly proud of the most successful agricultural cooperatives in Gauteng,
i.e. the Winterveldt Citrus Cooperative, Ikhwezi Cooperative (overall winner of the Agribusinesswoman of the
Year 2013 - Tshwane), Maponya Farming Project (Tshwane), Bantu Bonke Agricultural Co-operative (Midvaal),
Konke Sinako Co-operative (Emfuleni) and Yase Chaba Co-operative (West Rand).
The agro-processing programme assisted farmers within the Maize Triangle with packaging facilities, grain
silos and abattoirs. Agro-processing projects numbering 28 were supported with infrastructure such as citrus/
vegetable pack houses, egg grading machines; vegetable packaging machines linked to Gauteng Economic
growth and development Strategy (GEGDS). This is aligned to the Maize Triangle Strategy to intervene along
the value chain and in related industries like animal production.
As part of the farmer support programme in the Province, a total of 143 smallholder farmers were assisted with
production inputs: 30 farmers were provided with piggery production inputs, 30 smallholders were provided
with poultry production inputs and a total of 83 smallholder farmers were supported with maize production
inputs.
During the year 2013/14, in collaboration with five universities in Gauteng (University of Johannesburg, Wits
University, University of Pretoria, Tshwane University of Technology and Vaal University of Technology), 50
biotechnology bursaries were awarded and 25 internship opportunities created.
GDARD’s performance in processing development applications (through the Environmental Impact Assessment
system) remain the best the country, and that accounts for more than 40% of the development applications
in the country. The Department has further improved efficiencies in this important regulatory area, resulting in
314 Environmental Impact Assessment applications processed in 2013/14. To further improve efficiency of
administration and provide a reliable service in this area of work, the Department finalized the development
of the Environmental Impact Assessment Review System. The system will improve review turnaround, ensure
consistent decision making and improve quality of decision making, thereby providing a reliable investment
climate/regime for developers. Furthermore, the Department has formed a strategic alliance with the recently
launched Gauteng Investment Centre, providing investor consultation services on the Environmental Impact
Assessment process in order to effect reduced turnaround time for development applications by domestic and
foreign investors. These interventions are aimed at reducing red tape and creating a conducive environment
for business development in the Province. Ensuring effective compliance and enforcement still remains a
challenge and through the organizational re-engineering process that is underway, the capacity of this unit will
further be improved.
The designation of Environmental Management Inspectors (EMI) at local authority level is a key national
indicator forming part of the delivery agreement between the President and the Minister of Environmental
Affairs. GDARD was the first province in the country to designate 3 officials as EMIs at Emfuleni Municipality.
During the year the MEC designated a total of 27 municipal officials as EMIs.
19Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
In order to respond to the global challenge of climate change, it is important that Parties to the United Nations
Framework Convention on Climate Change take measures to measure, report and verify greenhouse gas
(GHG) emissions. In this regard, the Department in support of the National Climate Change Response
Strategy undertook the development of the Gauteng Greenhouse Inventory. Phase 1 of the GHG Inventory was
completed in this year, proving a framework for the measurement and reporting of GHG emissions from the
agriculture, transport, energy, waste and built sectors. Phase 2, which will be undertaken in 2014-15, will entail
the collection of emission data and uploading into the GHG Inventory.
An award was conferred on the Rust de Winter livestock project (under the auspices of the Animal Health
programme), by the World Veterinary Association in conjunction with the OIE (World Animal Health Organisation)
for effective public-private partnerships towards the delivery of services during the World Veterinary Congress.
The project went further to win the CPSI’s (Centre for Public Service Innovation) overall award for innovative
partnerships under the ‘Innovator of the year’ category and was a third award during the Premier’s Service
Excellence Awards under the ‘Best project’ category.
The department continued with its coordination function across the province with regards to development in the
rural areas. In November 2013, The Minister of Rural Development and Reform, Minister Gugile Nkwinti, and
the MEC of Agriculture and Rural Development, MEC Nandi Mayathula-Khoza, jointly launched the Akwande
Food Project, one of the biggest community food gardens projects ever to be established in Kwa-Sokhulumi.
As part of the implementation of the Gauteng Rural Social Compact, GDARD assisted two stakeholders,
namely NAFU and WARD. NAFU members received first aid, fire-fighting and mentoring training and WARD
members received sewing machines and over-lockers to assist them in improving the livelihoods of members
of sewing cooperatives.
GDARD continued with the facilitation of Equity Schemes which resulted in successfully reaching an agreement
with one of the flower processing companies in Mogale City. The agreement will see the employees having an
equity stake in the company as part of the transformation of the agribusiness sector. The company is also an
exporter of processed flower products.
Other achievements not mentioned here can be found under the Accounting Officer’s report and in the
Performance Information section.
The high rate of turnover amongst beneficiaries of our programmes is of concern. Focus in the 2014/15
financial year will be on improving and strengthening monitoring and evaluation and improving extension
support services.
The contribution of primary agriculture to the Gauteng economy is minimal; however, primary agriculture has
a crucial role to play in alleviating food insecurity and job creation. The department is putting mechanisms
in place to strengthen emerging farmer support structures that will ensure sustainability of projects. Such
support will address challenges like access to markets and finance and supply chain dynamics and risks.
It is envisaged that intervention in this sub-sector will contribute to the transformation more black farmers
graduation to commercial agriculture. of emerging
The fact that Gauteng houses the largest agricultural companies in South Africa and is often referred to as
the “gateway to Africa” highlights the importance of agri-business and agro-processing in Gauteng. The
Department will embark on a more aggressive implementation plan of the Agro-Processing Strategy. The role
of strong partnerships with government departments, organized agriculture, and the private sector, tertiary and
research institutes is a critical success factor of this plan.
20 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
We continue to improve working relations with our stakeholders in the agriculture, environmental, veterinary
services and rural development sectors. The various projects we have collaborated on with our partners (within
and outside government) have assisted in further strengthening these partnerships. The Department formed
a strategic alliance with the recently launched Gauteng Investment Centre, providing investor consultation
services on the Environmental Impact Assessment process in order to effect reduced turnaround time for
development applications by domestic and foreign investors. This is to reduce bureaucracy and improve the
ease of doing business in the province.
In conclusion, I wish to express my appreciation to MEC Nandi Mayathula-Khoza for her leadership and
contributions made to the Department during the financial year and the five-year term of government. I would
also like to thank the Department’s senior management, in particular Ms Priscilla Pietersen, who held the fort
as Acting Head of Department and the staff of GDARD who are a team of professional and highly dedicated
individuals. Our achievements in the 4th five-year term of government have positioned us well for even
greater advances in our strategic initiatives as we enter into the 5th five-year term of government. We remain
committed to ensuring Guateng is a food secure province and that agriculture remains one of the important
drivers to economic growth in Gauteng.
Ms Thandeka Mbassa
Head: Agriculture and Rural Development
21Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
PART B: PERFORMANCE INFORMATION
22 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1. Statement of Responsibility for Performance Information for the year ended 31 March 2014
The Accounting Officer is responsible for the preparation of the Department’s performance information and for
the judgements made in this information.
The Accounting Officer is responsible for establishing, and implementing a system of internal control designed
to provide reasonable assurance as to the integrity and reliability of performance information.
In my opinion, the performance information fairly reflects the performance information of the Department for
the financial year ended 31 March 2014.
-------------------------------Ms Thandeka Mbassa
Accounting Officer
23Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES
Please see paragraphs 14 – 18 on the Auditor-General’s report on Pages 161 to 162 under Part E.
24 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3. OVERVIEW OF DEPARTMENTAL PERFORMANCE
3.1. Service delivery environment
The 2013/14 Annual Performance Plan (APP) of the Department of Agriculture and Rural Development
(GDARD) continues to be informed by the department’s Five Year Strategy as contained in the Medium Term
Strategic Framework (MTSF) 2009/14. The introduction of the Outcomes Based Approach to planning in 2010
has resulted in the amendment of the 2009/14 Strategic Plan.
The Annual performance of GDARD is thus guided by the 2010/14 Strategic Plan that is linked to the mandate
period of the current administration with particular emphasis on:
a) An outcome based performance approach to planning and monitoring based on eight identified provincials Outcomes that derived from and are aligned to national Outcomes and;
b) Agriculture, food security, protecting the environment, rural development and service delivery.
In 2010, the new provincial administration, in line with national government, introduced the eight priority areas
of delivery which the Department of Agriculture and Rural Development (GDARD) is responsible to implement:
• Outcome 5a: Vibrant, equitable and sustainable and rural communities and food security for all
• Outcome 5b: Protected and enhanced environmental assets and natural resources
• Outcome 8: An efficient, effective and development oriented public service and empowered, fair and inclusive citizenship.
Other than the changes in focus as per the new Outcomes-based approach the external and internal
environment of performance by GDARD remains unchanged.
25Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.2. Service Delivery Improvement Plan
The Department has completed a service delivery improvement plan. The tables below highlight the
service delivery plan and the achievements to date.
KEY DEPARTMENTAL SERVICES AND ASSOCIATED STANDARDS
KEY SERVICE SERVICE BENEFICIARY
CURRENT STANDARD DESIRED STANDARD
Establishment of individual homestead or backyard gardens.
Farmer Support and Development
-Food security
To serve mainly the resource -poor communities in Gauteng. The target group includes the elderly, the unemployed, women, youth, the people with disabilities and HIV/AIDS affected/infected households.
Quantity: 11004 Homestead or backyard gardens established
Quantity: 12 000 homesteads or backyard gardens
Quality: Number of complaints received
Quality: Number of complaints received
• Consultation Initial meeting with ward councillors ,ward committees ,community development workers-CBOs or NGOs
and
Feedback through field staff (Agricultural Extension officers)
• Consultation Initial meeting with ward councillors ,ward committees, community development workers-CBOs or NGOs
and
Feedback through field staff (Agricultural Extension officers)
• Access By approaching their ward councillor, ward committees, community development workers, CBOs or NGOs
Or
By approaching the Agricultural staff at GDARD: at 11 Diagonal Building, Diagonal Street, Newtown or contact them on 011 240 2500
• Access By approaching their ward councillor, ward committees, community development workers, CBOs or NGOs
Or
By approaching the Agricultural staff at GDARD: at 11 Diagonal Building, Diagonal Street, Newtown or contact them on 011 240 2500
• Courtesy We will respect you and assure you of quality services
• Courtesy We will respect you and assure you of quality services
26 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Open & Transparency
Information on participants and areas that have received tools, seeds, materials and equipment is available and can be viewed on request. Please contact 011 240 2500 for further information.
• Open & Transparency
Information on participants and areas that have received tools, seeds, materials and equipment is available and can be viewed on request. Please contact 011 240 2500 for further information.
• Information Monthly feedback as to the status of participant identification, training and delivery,
• Information Monthly feedback as to the status of participant identification, training and delivery,
• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email the departmental complaints management line on: [email protected]
• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email the departmental complaints management line on: [email protected].
• Value for Money
There will be no costs involved to the beneficiaries
• Value for Money
There will be no costs involved to the beneficiaries
Time: Commencement of the implementation of gardens as soon as tools, seeds, materials and equipment are delivered at the warehouse and training has been completed.
Time: Commencement of the implementation of gardens as soon as tools, seeds, materials and equipment are delivered at the warehouse and training has been completed.
Cost: (budget) Not specified Cost: Source (budget)
CASP Grant Budget
R 12,000,000Human Resources: 60 Extension
OfficersHuman Resources:
85 including Extension officers and other agriculture technical staff
27Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
KEY SERVICE SERVICE BENEFICIARY
CURRENT STANDARD DESIRED STANDARD
Biodiversity permits issues
Livestock traders, hunters and the general public
Quantity: 6546 permits Quantity: 5000 permits
Quality: Number of complaints received regarding the above
Quality: Number of complaints received regarding the above
• Consultation There will be an annual workshop with stakeholders.
• Consultation There will be an annual workshop with stakeholders.
• Access You can apply for a live game permit by approaching the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500
• Access You can apply for a live game permit by approaching the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500
• Courtesy We will respect you and assure you of quality services
• Courtesy We will respect you and assure you of quality services
• Open & Transparency
There are set guidelines for the approval of live game permits which will be used to evaluate the applications. For a copy please contact 011 240 2500.
• Open & Transparency
There are set guidelines for the approval of live game permits which will be used to evaluate the applications. For a copy please contact 011 240 2500.
• Information Information as to the status of your application will be provided within 4 working days
• Information Information as to the status of your application will be provided within 4 working days
28 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email the departmental complaints management line on: [email protected].
• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email the departmental complaints management line on: [email protected].
• Value for Money
Price is variable depending on nature of application- cost range from R 50 to R 2000.
A list of application fees is available from the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500
• Value for Money
Price is variable depending on nature of application- cost range from R 50 to R 2000.
A list of application fees is available from the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500
Time: Permits for live game will be issued or refused on correct application within 4 working days
Time: Permits for live game will be issued or refused on correct application within 4 working days
Cost: (budget) R 5,350, 000 Cost: (budget) No direct costs except for HR
Human Resources: 35 Human Resources: 42
Issuing of nature conservation permits –all other permits excluding live game
Livestock traders, hunters and the general public
Quantity: 2000 permits Quantity: 3800 permits
Quality: Number of complaints received regarding the above
Quality: Number of complaints received regarding the above
• Consultation There will be an annual workshop with stakeholders.
• Consultation There will be an annual workshop with stakeholders.
29Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Access You can apply for a permit by approaching the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500
• Access You can apply for a permit by approaching the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500
• Courtesy We will respect you and assure you of quality services
• Courtesy We will respect you and assure you of quality services
• Open & Transparency
There are set guidelines for the approval of permits which will be used to evaluate the applications. For a copy please contact 011 240 2500.
• Open & Transparency
There are set guidelines for the approval of permits which will be used to evaluate the applications. For a copy please contact 011 240 2500.
• Information Information as to the status of your application will be provided within 15 working days
• Information Information as to the status of your application will be provided within 15 working days
• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email the departmental complaints management line on: [email protected]
• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email the departmental complaints management line on: [email protected]
• Value for Money
Price is variable depending on nature of application cost range from R 50 to R 2000.
A list of application fees is available from the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500.
• Value for Money
Price is variable depending on nature of application cost range from R 50 to R 2000.
A list of application fees is available from the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500.
Time: Permits will be issued or refused on correct application within 15 working days
Time: Permits will be issued or refused on correct application within 15 working days
Cost: (budget) R 5,200,000 Cost: (budget) R 5,200,000
Human Resources:
30 Human Resources:
30
30 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
KEY SERVICE SERVICE BENEFICIARY
CURRENT STANDARD DESIRED STANDARD
Issuing of environmental authorisations in terms of the National Environmental Management Act(NEMA)
Developers Quantity: Percentage of RODs issued within legislated timeframe (80%)
Quantity: Percentage of RODs issued within legislated timeframe (80%)
• Consultation • Free consultation on each application submitted allowed
• Monthly meetings with local authorities
• Quarterly meetings with developers
• MEC EIA Open Day/stakeholder workshops
• Consultation • Free consultation on each application submitted allowed
• Monthly meetings with local authorities
• Quarterly meetings with developers
• MEC EIA Open Day/stakeholder workshops
• Access You can apply for an authorisation by approaching the EIA administration unit at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500.
• Access You can apply for an authorisation by approaching the EIA administration unit at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500.
• Courtesy We will respect you and assure you of quality services
• Courtesy We will respect you and assure you of quality services
31Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Open & Transparency
There are set guidelines for the issuing of Records of Decisions (RODs) which will be used to evaluate the applications are available at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500
• Open & Transparency
There are set guidelines for the issuing of Records of Decisions (RODs) which will be used to evaluate the applications are available at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500
• Information Your application will be acknowledged within 14 days. GDARD will review and respond to your initial application within 30 days for all Basic Assessment applications.
• Information Your application will be acknowledged within 14 days. GDARD will review and respond to your initial application within 30 days for all Basic Assessment applications.
• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email: EIA [email protected] or the departmental complaints management line on: [email protected]
• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email: EIA [email protected] or the departmental complaints management line on: [email protected]
• Value for Money
Submission of EIAs is free. However an Independent consultant needs to be appointed for each application
• Value for Money
Submission of EIAs is free. However an Independent consultant needs to be appointed for each application
32 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Time: • The issuing of a decision within 30 days of the date of submission of the complete basic assessment report.
• The issuing of a decision within 45 days of assessing of the EIA report.
Time: • The issuing of a decision within 30 days of the date of submission of the complete basic assessment report.
• The issuing of a decision within 45 days of assessing of the EIA report.
Cost: (budget) Not specific – based on number of applications received
Cost: (budget) Not specific – based on number of applications received
KEY SERVICE SERVICE BENEFICIARY
CURRENT STANDARD DESIRED STANDARD 2013/14
Issuing of veterinary certificates
(exports)
Exporters (and agents) of animal and animal products
Quantity: 14079 certificates Quantity: 10,0000 certificates
Quality: Certificates will contain accurate and relevant information
OR
Number of complaints received regarding the above
Quality: Certificates will contain accurate and relevant information
OR
Number of complaints received regarding the above
• Consultation We will host quarterly stakeholder meetings with exporters
• Consultation We will host quarterly stakeholder meetings with exporters
33Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Access You can obtain an export certificate by providing the relevant documentation at GDARD regional offices:
Germiston Office, C/o Victoria & Odendaal Streets;
Randfontein office at No 7 C/o Main & Maugham Streets; or
Pretoria office at 592 Vermeulen Street, Arcadia. Or contact 011 240 2500
• Access You can obtain an export certificate by providing the relevant documentation at GDARD regional offices:
Germiston Office, C/o Victoria & Odendaal Streets;
Randfontein office at No 7 C/o Main & Maugham Streets; or
Pretoria office at 592 Vermeulen Street, Arcadia. Or contact 011 240 2500
• Courtesy We will respect you and assure you of quality services
• Courtesy We will respect you and assure you of quality services
• Open & Transparency
The prescribed National and provincial guidelines will be followed in the issuing of this permit. For a copy please contact 011 240 2500
• Open & Transparency
The prescribed National and provincial guidelines will be followed in the issuing of this permit. For a copy please contact 011 240 2500
• Information Provision of correct information regarding export permits requirements within 48 hours in a friendly and efficient manner.
• Information Provision of correct information regarding export permits requirements within 48 hours in a friendly and efficient manner.
34 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Redress Please approach the officer who assisted you or their supervisor who will guide you with the Vet Services Complaints Procedure. Alternatively you can email the departmental complaints management line on: [email protected]
• Redress Please approach the officer who assisted you or their supervisor who will guide you with the Vet Services Complaints Procedure. Alternatively you can email the departmental complaints management line on: [email protected]
• Value for Money
Costing of Service is done at a cost as determined by GDARD (transport time included)
• Value for Money
Costing of Service is done at a cost as determined by GDARD (transport time included)
Time: The issuing of correct permits within 48 hours after the receipt of the complete applications.
Time: The issuing of correct permits within 48 hours after the receipt of the complete applications.
Cost: (budget) R 1, 500,000+ R 4, 000, 000 (from cost recovery)
Cost: (budget) Funds generated to cost recovery
Human Resources:
15 staff members Human Resources:
18 staff members
Sign off:
Ms. Kgari Manotwane SDIP Champion
Ms. Abimbola Olowa Acting DDG: TS
Ms. Priscilla Pietersen Acting HOD
Ms. Nandi Mayathula- Khoza MEC
35Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
STRATEGIC OUTCOME ORIENTED GOALSOutcome 7: Vibrant, equitable and sustainable and rural communities and food security for all
Outcome 10: Protected and enhanced environmental assets and natural resources
4. PERFORMANCE INFORMATION BY PROGRAMME
PROGRAMME 1: AdministrationPurpose:
To provide leadership, management, efficient and effective financial management, human resource
management and development, facilities management services, professional legal services and enforcement
services, communication and awareness as well as knowledge and project management services to the
department in response to Outcome 8 (An efficient, effective and development oriented public service and
empowered, fair and inclusive citizenship); through the following strategic objectives, in line with the 5 Year
Strategic Plan of the Department.
Sub-programme
1. Senior Management
2. Office of the MEC
3. Financial Management
4. Corporate Services
Strategic outcomes (as per 2010/14 strategic Plan)
Output 1: Service delivery quality and access
Output 2: Human resource management and development
Output 3.1: Efficient and effective governance
Output 3.2: Business process, systems, decision rights and accountability
Output 8: Promotion of active and responsible citizenship
36 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Strategic objectives, performance indicators planned targets and actual achievementsStrategic objectives
Legal Services
Legal Services provides an integrated corporate legal service and litigation management support to assist
the department to meet its objectives. The branch ensures that the department is protected from legal risks
by offering legal advisory service to the various branches within the department; vetting legal documents
and appeals administration to ensure legal defensibility and compliance with the Promotion of Administrative
Justice Act and the Promotion of Access to Information Act; commenting on draft legislations and regulations
that have a direct or indirect impact on the operations of the Department; and, management of cases instituted
by or against the department.
Financial Management
The Finance Branch is headed by the Chief Financial Officer (CFO) and ensures efficient, effective and
transparent financial management to the Department, in line with the Public Finance Management Act (PFMA,
1999 as amended) and other applicable laws and regulations. The Branch’s strategic objectives are to ensure
sound Financial Management, Financial Accounting and Supply Chain Management support which includes
Asset Management.
The partnership with the Gauteng Audit Section (GAS) was strengthened during the year and greater cooperation
between the Department and GAS was achieved. This resulted in audits being executed as planned for the
financial year. This assisted the Branch to improve on its controls.
During the course of the financial year, the Branch improved on the payment of invoices within 30 days,
clearing of suspense account, reducing debtors and the overall quality of the financial issues. Issues of risk
assessment and fraud prevention interventions were addressed timeously during the year under review and
mitigating controls to reduce the impact thereof were implemented.
The department is busy recruiting a CFO as previous efforts were unsuccessful. Currently the Director: Supply
Chain Management is acting as CFO.
Transformation
The strategic objective of the Transformation Branch is to promote and facilitate the transformation in internal
and external departmental programmes. The Transformation Branch ensures that processes and projects
are underpinned by transformation fundamentals and contribute to the Broad-Based Black Economic
Empowerment (BBBEE).
37Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
The branch prioritises the following areas:
• The mainstreaming of designated groups (women, youth, black people and people with disabilities) in
relevant internal and external departmental projects and processes;
• The introduction of projects and processes that facilitate and promote the development of black
enterprises, in particular Small Medium and Micro Enterprises, and the transformation of the provincial
agriculture sector through the implementation of the AgriBEE Charter, and codes of good practice;
• The enhancement of various social development and empowerment programmes such as HIV and AIDS
and employee health and wellness in line with Outcome 2 of the province;
• Capacity building and awareness programmes that aim at improving social cohesion and building vibrant
sustainable communities; and,
• Outreach programmes targeting the designated groups.
Some of the main achievements for the 2013/2014 financial year include but are not limited to the following:
Cell C Take a Girl Child to Work Day - Transformation Branch hosted 58 Learners and 5 educators from Usizo
Lwethu Special School, Daveyton, on 30 May 2013, as part of mainstreaming.
An event to celebrate Women’s Month was held in Vanderbijlpark on 30 August 2013 for 211 women at a farm
owned by Ms Elsie Motloung, a WARD member. Starter packs and farming equipment were distributed on site.
As part of advocacy around Gender Mainstreaming, the branch coordinated the attendance of 8 WARD
members to the Women Empowerment Gender Bill (WEGE) Workshop held in Klerksdorp. WARD members
also attended International Women’s Day.
Commitment to youth development continued with Transformation and Communication Branches partnering
with Meadowlands Youth Social Development (MYSD) to host the June 16 commemoration, a cleaning campaign
in Dorothy Nyembe Park and the Zone 10 Meadowlands dumping site. A total of 180 youth participated.
The Agri-Business & Young Farmer of the Year Awards 2013 was attended by approximately 470 youth at St
George Hotel in Pretoria. Monetary prizes were won by youth to further expand their agri-farming businesses.
A career expo was held at BraamFischerville Multi-purpose Centre on 14 June 2013. Transformation, HRD staff
and staff from Department of Education attended; 66 learners (2 with disabilities) attended.
The branch participated in the Earth Science Week from 16 to 20 September 2013 organized by Sci-Bono
Science Centre in Newtown. The event was attended by 226 learners from different GPG schools. The GDARD
2013 Workers Day was held 10 May 2013. Approximately 664 workers attended the event.
Engagements with the military veterans continued throughout the year to track progress on the support
provided by the department.
The Overall Winner of the Agri-Business Winner of the Year Awards (ABWYA) 2013 was Ikhwezi Project, led by a
disabled woman and with 60% of its members as PWDs. Furthermore, GDARD donated seedlings to a project
owned by people with disabilities in Soweto Association for People with Disabilities. The branch attended the
16 Days of Activism event at Isipho Sethu Special School at Vosloorus.
In terms of Employment Equity, the representation of women at Senior Management level is 46% and
departmental overall is 47%. People with disabilities (PWDs) are 2.6% and black people constitute 91% of
GDARD staff complement
38 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Knowledge Management
The Knowledge Management Branch supports the delivery of GDARD Outcomes 5a, 5b and 8 by providing services,
information technology (IT) and information systems to enable business processes for sustainable agriculture, rural
development, use of natural resources and related support functions.
The services provided by the Knowledge Management branch include:
• Acquisition, development and implementation of IT and information systems
• Ensuring that required GDARD IT systems are available to users
• Resolution of IT incidents and problems that arise in the course of GDARD’s service delivery
• Storage and retrieval of both hard and soft copy information.
During the period under review, the Knowledge Management Branch achieved the following, amongst others:
• Implemented new wired and wireless IT network connectivity at GDARD’s new head office within budget and on
time
• Ensured that continuous availability of IT systems was maintained 95% of the time required against a target of 87%
• Resolved 93% of IT incidents and problems within 8 hours against a target of 87%
• Relocated information systems and IT equipment from the former Head Office to new Head Office with minimal
system downtime
• Upgraded Telkom data lines at GDARD regional offices to improve IT system effectiveness
• Implemented 88% of the Auditor General’s recommendations, on IT governance, user account management,
facilities and environmental controls, and IT disaster recovery planning.
In the year ahead, the Branch looks forward to continue contributing to GDARD’s service delivery through implementation
of an IT system to improve efficiency of document management.
Communications
The Communication Branch ensures an increased perception of institutional ownership in the Gauteng citizenship
through a programme of outreach, education, capacity building, information sharing campaigns and key messages
conveyed through appropriate channels and languages.
The main achievements for the Branch in the period under review have been the successful management of a number
of GDARD events, including the Agri-businesswoman of the Year in August, and the coordination of the province-wide
Clean and Green and Bontle ke Botho campaigns that focus on cleaning, greening and developing and nurturing best
environmental practice throughout the year. The Branch also maintained its programme of stakeholder engagement,
media monitoring and media liaison.
39Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Performance Indicators planned targets and actual outputs
Programme 1
Strategic objective/Output
Actual Achievement
2012/2013
Planned Target2013/2014
Actual Achievement
2013/2014
Deviation from
planned target to Actual
Achievement 2013/2014
Comment on deviations
1 Human Resource management and development
1 Human Resource Plan approved
Annual review, approve and implementation of human resource plan in accordance with per prescribed DPSA deadlines
The HR Plan was reviewed and approved, submitted to DPSA.The two HR implementation plans were also approved namely; 6 months implementation report and the annual implementation report
None None
2 Efficient and effective governance
- All received parliamentary matters tracked and resolved as per Provincial Legislature’s timeframes
28 Received parliamentary matters tracked and resolved as per Provincial Legislature’s timeframes
None None
- All public queries received resolved within 3 days (presidential and/or premiers hotline timeframes)
12 Public queries received and resolved within 3 days (presidential and/or premiers hotline timeframes)
None None
- Develop, approve and submit annual performance plan to Provincial Treasury and Legislature according to the National Treasury framework
Approved APP 2014/15 submitted to Provincial Treasury and Legislature
None None
- Develop, approve and implementation of risk management framework as per agreed timeframes
Implemented Risk Management Framework as per the Risk Management Framework
None None
- Prepare and submit 4 quarterly performance reports to Provincial Treasury as per stipulated timeframes
Prepared and submitted 4 quarterly performance reports to Provincial Treasury as per stipulated timeframes
None None
- 4 quarterly Legislature reports prepared and submitted to the Provincial Legislature as per stipulated timeframes
4 quarterly Legislature reports prepared and submitted to the Provincial Legislature as per stipulated timeframes
None None
1 Annual Report published
Prepare and submit annual report by 31 May annually
Annual report submitted by 31 May 2013
None None
- Prepare and submit 12 Programme of Action reports to the Office of the Premier by 7th of each month
12 POA’s submitted to the Office of the Premier by 7th of each month
None None
40 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
- Develop, approve and implement GEYODI advocacy and compliance monitoring plan annually
GEYODI Advocacy and Compliance Monitoring Plan developed and approved for 2013/14
None None
Annual Service delivery improvement plans reviewed
Review and submit MTEF SDIP to the Office of the Premier
SDIP submitted to Office of the Premier
None None
1 Citizens Report submitted
Citizens Report submitted to the Office of the Premier
Citizens’ Report 2011/12 submitted to the Office of the Premier
None None
3 - 90% appeals finalised (based on the number received) within legislated timeframe
97.8% of appeals were finalised within legislated timeframe (Annualised amount of appeals received for Q1, Q2, Q3 and Q4 due for finalisation as prescribed by NEMA Regulations)
+9% As a result of good management and organization the target was achieved and exceeded.
- Nature Conservation Bill promulgated
Third Draft of the Nature Conservation Bill has been withdrawn from the pre-certification process with State Law Advisors
-40% The Bill was withdrawn from the pre-certification process to allow for further comments and amendments to the Bill by Stakeholders.
GIAMA U-AMP compiled and submitted to the Provincial Treasury by 30 June 2012
GIAMA U-AMP compiled and submitted to the Provincial Treasury by 30 June 2013
GIAMA U-AMP
compiled and
submitted to the
Provincial Treasury
None None
Budget statement (BS3) submitted to DID and Provincial Treasury
Budget statement (BS3) submitted to DID and Provincial Treasury
BS3 submitted to
Provincial Treasury and
DID
None None
Prepare and submit main departmental budget in February and adjustment budget in November to the Provincial Treasury
Prepare and submit main departmental budget in February and adjustment budget in November to the Provincial Treasury
Main Departmental Budget 2014/15 submitted to Provincial Treasury on 22 February 2014
Adjustment Budget 2013/14 submitted to Provincial Treasury on 15 October 2013
None None
Prepared and submitted 1 audited Annual Financial Statement to Provincial Treasury within 2 months after the end of the financial year
Prepare and submit 1 audited Annual Financial Statement to Provincial Treasury within 2 months after the end of the financial year
Audited Final Annual Financial Statements (AFS) was submitted to Provincial Treasury and Auditor General 31 July 2013
None None
- Prepare and submit 3 Interim Financial Statements (IFS) to Provincial Treasury within 30 days after the end of quarter
1st, 2nd and 3rd Quarter Interim Financial Statements (IFS) were submitted to Provincial Treasury and Auditor General on due dates
None None
- Prepare, approve and submit departmental demand plan to Provincial Treasury by end April
Demand Plan was submitted to Treasury on 30 April 2013
None None
41Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
84% of invoices received per month, paid within 30 days (from date of receipt of invoice/claim
92% of invoices received per month, paid within 30 days (% of total received from date of receipt of invoice/claim)
79% of invoices received this year were paid within 30 days
-14% The target was not achieved as a result of changes in the provincial procurement system (SAP) at the beginning of the financial year (April 2013). Delays in the release of the conditional grant due to changes in the business plans also contributed to late payment of invoices.
4 Promotion of Active and responsible citizenship
- Review, approve and implement communication/ media strategy according to the agreed timelines
GDARD Communication/ Media Strategy was reviewed, approved (by HOD) and implemented.
None None
Performance Indicators
Programme 1
Performance Indicator
Actual Achievement
2012/2013
Planned Target2013/2014
Actual Achievement2013/2014
Deviation from planned
target to Actual
Achievement 2013/2014
Comment on deviations
1.1 Reviewed, approved and implemented Human Resource Management plans in accordance with the prescribed deadlines
1 Human Resource Plan approved
Review, approve (by the HOD), implement human resource plan in accordance with the prescribed DPSA deadlines
The HR Plan was approved and submitted to DPSA The two HR implementation plans were also approved namely; 6 months implementation report and the annual implementation report
None None
2.1 Number of parliamentary matters tracked and resolved as per agreed timeframes
- All received parliamentary matters tracked and resolved as per Provincial Legislature’s timeframes
28 Received parliamentary matters tracked and resolved as per Provincial Legislature’s timeframes
None None
2.2 Number of public queries tracked and resolved as per agreed timeframes
- All public queries received must be resolved within 3 days (presidential and/or premiers hotline timeframes)
12 Public queries received resolved within 3 days (presidential and/or premiers hotline timeframes)
None None
2.3 Develop, approve and submit annual performance plan with Provincial Treasury and Legislature according to the National Treasury Framework
- Develop, approve and submit annual performance plan to the Provincial Treasury and Legislature according to the National Treasury framework
Approved APP 2014/15 submitted to Provincial Treasury
None None
42 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
2.4 Develop, approved and implemented risk management framework according to the agreed timeframes
1 Global risk assessment register produced, 4 risk assessment reports compile and submitted
Develop, approve (by the HOD) and implementation of risk management framework as per agreed timeframes
Implemented approved Risk Management Framework as per the agreed timeframes
None None
2.5 Number quarterly performance reports prepared, and submitted to Provincial Treasury
- Prepare and submit 4 quarterly performance reports to Provincial Treasury as per stipulated timeframes
Prepared and submitted 4 quarterly performance reports to Provincial Treasury as per stipulated timeframes
None None
2.6 Number of quarterly Legislature reports prepared and submitted to Provincial Legislature as per stipulated timeframes
- Prepare and submit 4 quarterly Legislature reports within 30 days after the end of the quarter.
4 quarterly Legislature reports prepared and submitted to the Provincial Legislature as per stipulated timeframes
None None
2.7 Annual report prepared and submitted by 31 May annually
1 Annual Report published
Annual report prepared and submitted by 31 May annually
GDARD Annual report submitted
None None
2.8 Number of Programme of Action reports prepared and submitted to the Office of the Premier by 7th of each month
- Prepared and submitted 12 programme of action reports to the Office of the Premier by 7th of each month
12 POA’s submitted to the Office of the Premier by 7th of each month
None None
2.9 Developed, approved and implemented GEYODI advocacy and compliance monitoring plan by 31 March 2014
- Develop, approve and implement GEYODI advocacy and compliance monitoring plan according to the agreed timeframes
The approved GEYODI advocacy and compliance monitoring plan was implemented during the financial year.
None None
2.10 Reviewed MTEF SDIP submitted to the Office of the Premier
1 Service Delivery Improvement Plan developed
Reviewed MTEF SDIP submitted to the Office of the Premier
SDIP submitted to Office of the Premier
None None
2.11 Annual Citizens Report submitted to the Office of the Premier
1 Citizens Report submitted
Annual Citizens’ Report submitted to the Office of the Premier
Citizens’ Report 2011/12 was submitted to the Office of the Premier
None None
3.1 Percentage of appeals finalized within legislated timeframe
- 90% appeals finalised (based on the number received) within legislated timeframe
97.8% of appeals were finalised within legislated timeframe (Annualised amount of appeals received for Q1, Q2, Q3 and Q4 due for finalisation as prescribed by NEMA Regulations)
+9% As a result of good management and organization the target was achieved and exceeded.
43Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.2 Promulgation of Nature Conservation Bill
- Nature Conservation Bill promulgated
Third Draft of the Nature Conservation Bill has been withdrawn from the pre-certification process with State Law Advisors
-40% The Bill was withdrawn from the pre-certification process to allow for further comments and amendments to the Bill by Stakeholders.
3.3 GIAMA User Asset Management Plans (U-AMP) submitted to the Provincial Treasury annually
1 GIAMA U-AMP compiled and submitted
GIAMA U-AMP compiled and submitted to the Provincial Treasury by 30 June 2013
GIAMA U-AMP com-piled and submitted to the Provincial Treasury
None None
3.4 Budget statement (BS3) submitted to DID and Provincial Treasury annually
1 Budget statement (BS3) submitted
Budget statement (BS3) submitted to DID and Provincial Treasury
BS3 submitted to Provincial Treasury and DID
None None
3.5 Prepare and submit main departmental budget in February and adjustment budget in November to Provincial Treasury
1 Annual Budget compiled
Approved main departmental and adjustment budgets submitted to Provincial Treasury in February and November respectively.
Adjustment Budget 2013/14 (EPRE and APP) submitted to Provincial Treasury on 15 October 2013 and Main Departmental Budget 2014/15 (EPRE and APP) submitted to Provincial Treasury on 22 February 2014
None None
3.6 Prepare and submit 1 audited Annual Financial Statement to Provincial Treasury within 2 months after the end of the financial year
1 Annual Financial Statement submitted
Annual Financial Statement to Provincial Treasury and Auditor General 2 months after the end of the financial year
Audited Final Annual Financial Statements (AFS) was submitted to Provincial Treasury and Auditor General 31 July 2013
None None
3.7 Prepare and submit 3 Interim Financial Statements (IFS) to Provincial Treasury within 30 days after the end of quarter
- Prepare and submit 3 Interim Financial Statements (IFS) to Provincial Treasury
1st, 2nd and 3rd Quarter Interim Financial Statements (IFS) were submitted to Provincial Treasury and Auditor General on due dates
None None
3.8 Departmental approved demand plan submitted within prescribed timeframes to Provincial Treasury
- Approved departmental demand plan submitted to Provincial Treasury by end April
Demand Plan was submitted to Treasury on 30 April 2013
None None
44 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.9 Percentage of invoices received per month, paid within 30 days (from date of receipt of invoice/claim)
84% invoices paid within 30 days
92% of invoices received per month, paid within 30 days (% of total received from date of receipt of invoice/claim)
79% of invoices received this year were paid within 30 days
-14% The target was not achieved as a result of changes in the provincial procurement system (SAP) at the beginning of the financial year (April 2013). Delays in the release of the conditional grant due to changes in the business plans also contributed to late payment of invoices.
4.1 Approved communication/ media strategy prepared and implemented within agreed timeframes
- Reviewed, approved (by HOD) and implemented communication/ media strategy according to the agreed timelines
GDARD Communication/ Media Strategy was reviewed, approved (by HOD) and implemented.
None None
PROGRAMME 2: Agriculture and Rural Development
Purpose
The programme aims to optimise the contribution of sustainable agriculture to the equitable development of all communities in
the province, by enhancing food security, income, employment and the quality of life; and to control and manage health risks of
animal origin by ensuring healthy livestock production and the availability and affordability of healthy high quality food and animal
products, thus stimulating economic growth and contributing to poverty alleviation and international trade. It responds to the
provincial Outcome 5a: Vibrant, equitable and sustainable rural communities and food security for all.
Sub-programme
1. Farmer Support and Development
2. Research and Technology and Development Services
3. Agricultural Economics Services
4. Sustainable Resource Management
5. Veterinary Services
6. Rural Development Coordination
Strategic objectives/Outputs (as per the 2010/14 Strategic Plan)
Output 1: Sustainable agrarian reform with a thriving small and large farming sector
Output 2: Improved access to affordable, safe and diverse food
Output 3: To improve rural services in order to support improve the livelihoods
Output 4: To ensure improved employment opportunities and economic livelihoods
Output 5: Enabling institutional environment for sustainable and inclusive growth
45Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Strategic objectives, performance indicators planned targets and actual achievements
Strategic objectivesAgriculture
The Agriculture Branch provides an integrated provincial agricultural management system to optimise the contribution
of sustainable agriculture and veterinary services to the economy towards quality of life for all. It provides for the
equitable development of all communities in the Gauteng Province with the aim of enhancing food security, income and
employment through agricultural development. Farmer Support Services provides information and advisory services,
facilitates training of commercial and emerging farmers, as well as organisational development and capacity building
of rural farmer groups, and co-ordinates rural agricultural projects and food security in the Province. Agricultural
Economics and Marketing‘s renders an effective agricultural economic support service to role-players and stakeholders
in agriculture. Technology Development and Support promotes effective agricultural technological development and
support to role-players in the agriculture sector.
A few of the main achievements of the branch in 2013/2014 are listed below:
• Some 143 smallholder farmers were assisted with production inputs; 30 farmers were provided with piggery
production inputs, 30 smallholders were provided with poultry production inputs and a total of 83 smallholder
farmers were supported with maize production inputs.
• Some 28 smallholder farmers were supported with on-farm infrastructure through CASP. These smallholder farmers
were provided with 3 piggery, 6 poultry and 14 hydroponics infrastructures.
• The permanent appointment of 51 agricultural extension officers was a great step in providing extension and
advisory services to farmers. The appointment improved the ratio of officers to farmers to ensure better services
to farmers. The additional extension officers will help the department to reach more farmers and improve service
delivery in the province.
• A total of 1 471 farmers were trained through study groups. The training provided is non-accredited and only 46
farmers received accredited training. The department is in the process of establishing a farmer training institute
in the West Rand that will focus mainly on accredited training in collaboration with the Potchefstroom Agricultural
College, North-West Province. The process of the establishing the institute has been slow to ensure conformity
with accreditation regulations. For this reason, few farmers received accredited training.
• Farmers’ days are an extension methodology whereby farmers are brought together to learn from one another
(farmer-to-farmer) and to interact with service providers; 5 farmers’ days were held.
• Support to establish 12015 homestead food gardens was given to community members in various areas of
Gauteng. Community members in all municipal areas were provided with vegetable seeds, tools, compost and
watering cans.
• Support was also given to 44 community food projects. These were developed by using resources available from
the departmental warehouse, such as seeds and compost.
• Some 50 school food gardens were developed by providing a few garden tools, seeds, compost and watering
cans. The gardens were established in order to complement the Department of Education’s school nutrition
feeding program.
• World Food Day was held 04 October 2013 in Duduza, Nigel. Approximately 951 people attended the event hosted
in conjunction with Ekurhuleni Metropolitan Municipality.
• Through the Maize Triangle Programme, Zivuseni Agricultural Cooperative comprised of 35 local small producers
exported 72 tons of maize whilst Siyibane Farming Project has also exported 164.14 ton to Lesotho. This was in
partnership with the WFP, which is an internationally recognized agency of the United Nations (UN).
• To date, through partnership with the Rand Water Foundation, 276 farmers within the Maize Triangle have been
supplied with production inputs, training and capacity building. In addition, 31 maize-producing farms have
been settled within the Maize Triangle through the Land Reform Farm Programme (DRDLR) and supported with
infrastructure such as boreholes, storage facilities, fencing, irrigation systems, farm implements and production
stock.
• Some 28 agro-processing projects were supported with infrastructure such as citrus/vegetable pack houses, egg
grading machines; vegetable packaging machines.
46 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• The Maize Triangle Revitalization project has so far created 765 jobs during the planting and harvest seasons and
the farmers are assisted with various interventions such as on- and-off-farm infrastructure, mechanization and
production inputs.
• Aligned to the approved Agricultural Co-operative Plan, 135 co-operatives received support in the form of on- and
off-farm infrastructure, production inputs and training and capacity building; 23 co-operatives received contracts
from government and successfully supply produce to hospitals and orphanages. GDARD is particularly proud
of the most successful agricultural cooperatives in Gauteng, i.e. the Winterveldt Citrus Cooperative, Ikhwezi
Cooperative (overall winner of the Agribusiness woman of the Year 2013 - Tshwane), Maponya Farming Project
(Tshwane), Bantu Bonke Agricultural Co-operative (Midvaal), Konke Sinako Co-operative (Emfuleni) and Yase
Chaba Co-operative (West Rand).
• The Department has successfully accelerated the implementation of the Gauteng Biotechnology Strategy, the
highlight of which was the near completion of the Gauteng Biotech Science Park at The Innovation Hub (TIH).
• In collaboration with five universities in Gauteng (University of Johannesburg, Wits University, University of Pretoria,
Tshwane university of Technology and Vaal University of Technology), 50 biotechnology bursaries were awarded, 25
internship opportunities created and 12 students participated in the Gauteng Biotech fundi Awards; 2 students were
awarded travelling scholarships to attend the Agricultural Biotechnology International Congress in Canada and 1
student from ARC was also funded to attend the congress through ABIC Foundation.
• GDARD commissioned 12 research projects in collaboration with universities and research institutions.
• In an effort to deliver on the Agri-Parks, GDARD partnered with the City of Tshwane to accelerate development of
the Soshanguve Agriparks and Rooiwal Agripark.
Rural Development
The Rural Development Branch of GDARD manages the Department’s coordination function across the Province in
regard to development in the rural areas. GDARD coordinates the work of all GPG departments in the designated rural
nodes of Gauteng Province. Some of the main achievements of the department through the branch’s work are outlined
below.
In November 2013, Minister of Rural Development and Reform Gugile Nkwinti and MEC of Agriculture and Rural
Development Nandi Mayathula-Khoza jointly launched Akwande Food Project, one of the biggest community food
gardens projects ever to be established in Kwa-Sokhulumi.
As part of the implementation of the Gauteng Rural Social Compact, GDARD assisted NAFU members with first-aid,
fire-fighting and mentoring training and WARD members with sewing machines, including over-lockers to improve the
livelihoods of members of sewing cooperatives.
GDARD continued facilitating equity schemes as part of transformation in the agribusiness sector in an agreement with
a flower processing and exporting company in Mogale City. The agreement gives employees an equity stake in the
company.
GDARD facilitated training in Conflict Management for Council of Stakeholder (COS) members from all four of Gauteng’s
rural nodes.
GDARD produced and distributed to key stakeholders over 500 copies of the first Gauteng television documentary on
rural development. A Petit-based businessman who watched the documentary in March 2014 is interested in investing
in a rural area. Rural development projects were showcased on AgriTV, working with OneWorld Media.
47Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GDARD conceptualised, implemented and completed the Department Agriculture, Forestry and Fisheries
funded (DAFF) Sokhulumi Community Wetland Rotational Grazing Project that promotes sustainable wetland
and cattle production. The Sokhulumi Cattle Producers Association and Sokhulumi Community Wetland
Rotational Grazing Project Steering Committee were established to ensure sustainable management of the
project.
NARYSEC learners numbering 24 were recruited, bringing the total number of NARYSEC beneficiaries to date
to 2020. About 400 learners, educators and parents attended the Open Days at the University of Pretoria,
Tshwane University of Technology, and Vaal University of Technology. About 52 learners from Mahlenga,
Rusoord and Kudung High Schools visited Agriculture Research Council as part of career exposure.
GPG Departments continued to contribute positively to rural development in the province:
• Department of Community Safety - continued to roll-out the Safety Patrollers Project to cover all the rural
nodes.
• Department of Social Development - funded the Midvaal Youth Development Forum to implement
outreach programmes at Bantu Bonke and Devon Impumelelo Development Centre which support
sustainable livelihoods projects.
• Department of Infrastructure Development - continued constructing the Magaliesburg Boarding facility
which will house 240 underprivileged and orphaned local community learners.
• Department of Education - reported an upward trend in the passing rate of matriculants attributed to,
amongst other factors, the Secondary School Improvement Programme.
• Department of Sport, Arts, Culture and Recreation - the Gauteng Carnival was attended by participants
from all rural nodes. Two library infrastructure programmes were completed in Tarlton and Wedela. The
department also hosted a rural Club Development Tournament which took place at the Bronkhorstspruit
Sport Complex.
• Department of Housing and Human Settlement - worked with Midvaal Local Municipality to obtain
approval to build 500 RDP houses for local residents.
• Department of Rural Development and Land Reform - installed fencing for livestock in Rust de Winter,
Animal Handling facilities in Kwa-Sokhulumi, profiled land reform farms, supported rural enterprises, and
allocated R8.4 million for bulk services for the Mamello Housing project, to be done in partnership with
Gauteng Department of Human Settlements.
Veterinary Services & Sustainable Resource Management
The Veterinary Services and Sustainable Resource Management Branch of the department, which contributes
to the realization of Outcome 5A, has the following strategic objectives:
• Manage the control of animal, zoonotic diseases and animal welfare in Gauteng
• Provide primary animal health care and veterinary awareness to emerging farmers and previously
disadvantaged communities
• Provide a quality assurance service for the state veterinary service
• Provide export certification services
• Manage the provision of safe, wholesome and nutritious food of animal origin.
48 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
The Branch’s main achievements during the 2013/2014 financial year include but are not limited to those listed
below.
The lifting of the ban of trade in ruminants and their products by the OIE (World Animal Health Organization),
due to the recent FMD (Foot-and-Mouth Disease) outbreak, resulted in an increase in the number of Veterinary
Export Certificates processed. An inspection team from the OIE visited the country in November 2013 in order
to establish whether the necessary control measures were in place in both the infected and protection zone.
The OIE team was satisfied with the measures taken by Gauteng to control the disease in Karan Beef, which
thus required no further action. A contributing factor, among others, to the rise in demand for export certification
services was the weakening of the Rand which has facilitated the export trade.
The Branch won first prize both locally and internationally for a livestock project which took place in the Rust de
Winter area. The first award was conferred by the World Veterinary Association in conjunction with the OIE for
effective public-private partnerships towards the delivery of services. This award was received at Prague by the
Branch’s executive management, and representatives from the offices of the HOD and MEC, during the World
Veterinary Congress. The team received a trophy and cash to the value of $1000.
The project also won the CPSI’s (Centre for Public Service Innovation) overall award for innovative partnerships
under the ‘Innovator of the year’ category. This was accompanied by a cash prize in the region of R70, 000.00.
The prize money was subsequently used to acquire a mobile livestock handling facility.
The project also won a Premier’s Service Excellence Award under the ‘Best project’ category.
This level of recognition is an indication of acknowledgement of the excellent work which was done by the
branch.
49Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Strategic objectives
Programme 2
Strategic objective/Output
Actual Achievement
2012/2013
Planned Target2013/2014
Actual Achievement
2013/2014
Deviation from planned target to Actual Achievement 2013/2014
Comment on deviations
1.Sustainable Agriculture Reform with a Thriving Small and Large Farming Sector
168 smallholder farmers supported annually (with production inputs - Letsema/Illima Programme
140 smallholder farmers supported annually (with production inputs - Letsema/Illima Programme
143 smallholder farmers supported annually (with production inputs - Letsema/Illima Programme
+3(+2%)
An additional 3 farmers were assisted with piggery production inputs after requests were received.
3 Agri-Expos organised
3 Agri-Expos organised by GDARD
3 Agri-Expos organised by GDARD
None None
1,095 smallholder farmers attending Agri-Expos
800 farmers assisted to attend Agri-Expos
1,165 smallholder farmers attending Agri-Expos
+365(+46%)
More farmers showed interest in the expos and some used their own transport instead of GDARD procured transport. GDARD assisted with entry tickets as well.
- 60 existing agricultural cooperatives supported
74 existing agricultural cooperatives supported
+14(+23%)
Additional requests were received from the cooperatives which lead to the target being exceeded.
- 40 new agricultural cooperatives assisted
40 new agricultural cooperatives were assisted
None None
- 3 farmers assisted to access flower markets
6 farmers were assisted to access flower markets
+3(+100%)
More farmers were assisted than planned, due to an increased demand for flowers.
2,968 hectares ploughed by allocated tractors
6,000 hectares ploughed
6,928 hectares ploughed by allocated tractors
+928(+15%)
More tractors were operational leading to more hectares being ploughed.
4 farmers days held
5 farmers days held 5 farmers days held
None None
51 commodity groups supported
24 commodity groups supported
24 commodity groups supported
None None
76 farm plans completed
80 farm plans completed
81 farm plans completed
+1(1.25%)
More requests received for the year than planned. Service is demand driven.
50 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
81 farm assessment completed
80 farm assessment completed
43 farm assessment completed
-37(-46%)
The service is demand driven. Fewer requests than planned were received from individual farmers and from the DRDLR. Only requests received are processed.
5 agricultural demonstration trials conducted
5 agricultural demonstration trials conducted
5 agricultural demonstration trials conducted
None None
1 disaster relief scheme managed
1 disaster relief scheme managed
1 disaster relief scheme managed
None None
10 early warning reports issued
12 early warning reports issued
15 early warning reports issued
+3(+25%)
Warnings are climate dependent, and there were more warnings received than anticipated.
49 designs with specifications for agricultural engineering solutions provided
40 designs with specifications for agricultural engineering solutions provided
46 designs with specifications for agricultural engineering solutions provided
+6(+15%)
Demand driven, more requests were received and attended to than expected.
57 clients provided with engineering advice during official visits
40 clients provided with engineering advice during official visits
78 clients provided with engineering advice during official visits
+38(+95%)
Demand driven, more requests were received and attended to than expected.
140,745 animal vaccinations against controlled animal diseases (anthrax, brucellosis, rabies, NCD)
97,000 animal vaccinations against controlled animal diseases (anthrax, brucellosis, rabies, NCD)
117,004 animal vaccinations against controlled animal diseases (anthrax, brucellosis, rabies, NCD)
+20,004(+21%)
Owing to unavailability of S19 vaccine from suppliers in the country, it was decided to rather continue with CA vaccinations as a way of boosting herd immunity towards the disease. S19 is only done in heifer calves but greater coverage which includes older animals is achieved through the use of RB51.
85 primary animal health (PAHC) interactions held
80 primary animal health (PAHC) interactions held
88 primary animal health (PAHC) interactions held
+8(+10%)
The reason for exceeding the annual target is because Zoetis Animal Health provided human and other resources which enabled the department to schedule additional study group meeting.
51Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
995 official veterinary movement documents issued
500 official veterinary movement documents issued
3,248 official veterinary movement documents issued
+2,748(+550%)
Demand driven target. More requests were received than expected.
6,065 animal inspections for regulatory purposes
1,550 animal inspections for regulatory purposes
1,565 animal inspections for regulatory purposes
+15(+1%)
As a result of some compartmental registrations expiring, additional inspections had to be done.
53,161 animals sampled/tested for diseases surveillance purposes
50,000 animals sampled/tested for diseases surveillance purposes
57,161 animals sampled/ tested for diseases surveillance purposes
+7,161(+14%)
Re-testing of positive herds contributed to the increased output. The CA testing scheme dictates that all positive herds should be retested twice. Once detected in a herd, activities move towards controlling the disease.
57 inspections to facilities processing animal products and by- product
124 inspections to facilities processing animal products and by- product
408 inspections to facilities processing animal products and by-product
+284(+229%)
The scope of inspections was revised by DAFF with effect 1 April 2013, to include all other facilities processing animal and animal-by products and not only rendering plants, which led to more inspections conducted.
53,161 specimens tested (for animal diseases)
55,000 specimens tested (for animal diseases)
52,917 specimens tested (for animal diseases)
-2,083(-4%)
The target of 55,000 was based on previous years’ specimens tested. Due to a favourable disease situation in Gauteng, with no major disease outbreaks, the number of samples received was less than anticipated.
52 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
104,894 tests performed
60,000 tests performed
106,050 tests performed
+46,050(+77%)
The number of tests that are conducted on any single or batch of samples from cases of sick animals in the field is guided by the number of possible diseases which the field veterinarian would like to rule out, i.e. the differential diagnosis. There were more tests done to verify that the disease situation was favourable, and to rule out all possible diseases.
1,845 abattoir inspections conducted (Food related facility inspections)
2,200 abattoir inspections conducted (Food related facility inspections)
2,006 abattoir inspections conducted (Food related facility inspections)
-194(-9%)
The main reason for underperformance is the fact that 17 (22.7 %) of the abattoirs were dormant and did not slaughter. This means that fewer visits were carried out than planned to these abattoirs.
42 abattoirs registered
32 abattoirs registered 39 abattoirs registered
+7(+22%)
The predicted level was exceeded due to 3 new abattoirs registered, 1 abattoir had a change of ownership was reregistered and 3 abattoirs were issued with new certificates due to changes in throughput.
14,079 veterinary export certificates issued
10,000 veterinary export certificates issued
16,510 veterinary export certificates issued
+6,510(+65%)
The service is a demand driven activity which is influenced by international monetary and trade trends.
132 export facilities/ establishments registered
60 export facilities/ establishments registered
143 export facilities/ establishments were registered
+83(+138%)
The service is a demand driven activity which is influenced by international monetary and trade trends.
521 requests responded to on macroeconomic
500 requests responded to on macroeconomic
513 requests were responded to on macroeconomic
+13(+3%)
Demand driven. Additional request were received.
5 Macroeconomicreports developed
5 Macroeconomicreports developed
5 Macroeconomic reports were developed
None None
53Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
0 EIAs with no agriculture component on high potential agricultural land approved, using GAPA version 4
0 EIAs with no agriculture component on high potential agricultural land approved, using GAPA version 4
0 EIAs with no agriculture component on high potential agricultural land approved, using GAPA version 4
None None
37 recommendations made on subdivision/rezoning change of agricultural land use
20 recommendations made on subdivision/rezoning change of agricultural land use
17 recommendations made on subdivision/rezoning change of agricultural land use
-3(-15%)
Demand driven fewer applications received. Reliant on DEA and DAFF to make recommendations and only 17 were received and responded to.
0 farmers who attended accredited training courses
400 farmers who attended accredited training courses
316 farmers who attended accredited training courses
-84(-21%)
Less farmers than anticipated received accredited training.
1,523 farmers who attended non-accredited training courses
1,150 farmers who attended non-accredited training courses
1,446 farmers who attended non-accredited training courses
+296(+26%)
Additional farmers attended non accredited training courses even when they were only aspiring to be farmers thus increasing the targeted number of farmers.
12 presentations made at technology transfer events
8 presentations made at technology transfer events
16 presentations made at technology transfer events
+8(+100%)
Target was exceeded as there were more events coordinated. Farmers requested for more presentations on different topics
44 presentations made at scientific events
43 presentations made at scientific events
43 presentations made at scientific events
None None
5 articles in popular media published
12 articles in popular media published
8 articles in popular media published
-4(-33%)
Fewer articles were published because they are dependent on the completion of some of the projects. They are also dependent on the acceptance by the media.
4 scientific papers published
5 scientific papers published
5 scientific papers published
None None
46,080 information packs developed/ disseminated
5 information packs developed
6 information packs developed
+1(+20%)
The extra manual is the irrigation manual which was developed for training farmers on water saving technologies.
54 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
2 Improved access to affordable and diverse food
11,004 homestead food gardens supported
12,000 homestead food gardens supported
12,014 homestead food gardens supported
+14(+0.11%)
14 Additional homestead food gardens were supported due to the demand emanating from the stakeholder engagements.
144 school food gardens established
60 school food gardens established
45 school food gardens established
-15(-25%)
A request by DAFF to review the business plans and focus on maize and dry beans delayed the process. (School Food gardens are funded through conditional grants.)
57 community food gardens supported
60 community food gardens supported
46 community food gardens supported
-14(-23%)
A request by DAFF to review the business plans and focus on maize and dry beans delayed the process. (Community Food gardens are funded through conditional grants as a result the decision taken by DAFF and affected the deliverable directly.)
4 food security status reports compiled
4 food security status reports compiled
4 food security status reports compiled
None None
11,859 verified food insecure households supported
11,825 verified food insecure households supported
12,014 verified food insecure households supported
+14(+0.11%)
Additional verified households were supported as result of increased support to the homestead food garden programme.
The Food Security Plan is in the process of approval by Exco
20 Year Food Security Plan approved by Gauteng Executive Council
20 Year Food Security Plan approved by Gauteng Executive Council
None None
3 Improved rural services to support livelihoods
105 farmers and cooperatives supported with on- and off farm infrastructure through Comprehensive Agricultural Support Programme
50 farmers and cooperatives supported with on- and off farm infrastructure through Comprehensive Agricultural Support Programme
28 farmers and cooperatives supported with on- and off farm infrastructure through Comprehensive Agricultural Support Programme
-22(-44%)
DAFF has issued an instruction that provinces should focus on Maize and Dry beans. As a result support to co-operatives with on- and off farm infrastructure could not continue as planned.
4 Council of Stakeholders supported through training
4 Council of Stakeholders supported through training
4 Council of Stakeholders supported through training
None None
55Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
4 Improved employment opportunities and economic livelihoods
13 research projects implemented which address specific productionconstraints
12 research projects implemented which address specific productionconstraints
12 research projects implemented which address specific productionconstraints
None None
0 vegetable Agri-Parks established(multi-year projects)
4 vegetable Agri-Parks established(multi-year projects)
3 vegetable Agri-Parks established (multi-year projects)
-1(-25%)
The projects were to be funded from the LandBank, however, the funds were not released on time to the Department for implementation of the projects.
1,000 youths participating in National Rural Youth Service Corps
1,883 youths participating in National Rural Youth Service Corps
2,020 youths participating in National Rural Youth Service Corps
+137(7%)
Additional Youth were appointed by DRDLR from Walmansthal.
- 400 rural learners attending Open Days at Tertiary Institutions
403 rural learners attending Open Days at Tertiary Institutions
+3(+0.75%)
Additional learners attended the open days, which were not anticipated.
56 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1 agro-processing infrastructure projects implemented in the Maize Triangle areas
2 agro-processing infrastructure projects implemented in the Maize Triangle areas
0 agro-processing infrastructure projects implemented in the Maize Triangle areas
-2(-200%)
Service Level Agreement with all the role players (GDARD, Rand Water & FABCOS) was not approved due to the public private partnership processes.
69 farmers in the Maize Triangle supported through production inputs such as mechanization services (harvester, access to tractors and supply with fuel)
45 farmers in the Maize Triangle supported through production inputs such as mechanization services (harvester, access to tractors and supply with fuel)
90 farmers in the Maize Triangle supported through production inputs such as mechanization services (harvester, access to tractors and supply with fuel)
+45(+100%)
Demand driven and additional resources were received through CASP.
2 agro-processing infrastructure projects that are linked to the GEGDS implemented
3 agro-processing infrastructure projects that are linked to the GEGDS implemented
2 completed (Sedibeng and Tshwane) and the 3rd (warehouse at the Ekurhuleni Hub) is in progress
-1(-33%)
The 3rd project will commence in 2014/15 due to the delays in the signing of the SLA. This is due to delays in the public private partnership process.
32 emerging farmers assisted to access funding from Development Financial Institutions
20 Agri-Business supported with agricultural economic services towards accessing markets
26 Agri-Business supported with agricultural economic services towards accessing markets
+6(+30%)
Demand driven, more requests were received than anticipated.
22 Agri-Business supported with agricultural economic services towards accessing markets
20 Agri-Business supported with agricultural economic services towards accessing markets
26 Agri-Business supported with agricultural economic services towards accessing markets
+6(+30%)
Demand driven, more requests were received than anticipated.
- 86 students/interns or companies supported annually
50 bursaries funds, 22 internships, 12 Biotech awards recipient and 1 Biotech fundi award event and 1 Agriculture Biotechnology International Conference 2013, Calgary, Canada)
None None
12 Enterprise Developments (SMMEs) linked to funders supported
10 Enterprise Developments (SMMEs) linked to funders supported
24 Enterprise Developments (SMMEs) linked to funders supported
+14(+140%)
An influx of requests to assist the entrants for the Young Farmer Awards to register as vendors on GPG Centralised Vendor Database.
57Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1 AgriBEE /FWES project facilitated
2 AgriBEE /FWES project facilitated
1 AgriBEE/ FWES project facilitated
-1(-50%)
One application for AgriBEE fund was declined (Green Oak CC in Heidelberg and the other (Neltropica) withdrew. AFASA pulled out of negotiations with Nestle as Nestle indicated that they already have contracts. An abattoir project in Westrand still need a due diligence and further assessment.
49 agricultural economic studies conducted
80 agricultural economic studies conducted
60 agricultural economic studies conducted
-20(-25%)
Demand driven as fewer request were received.
105 clients supported with agricultural economic advice
90 clients supported with agricultural economic advice
107 clients supported with agricultural economic advice
+17(+19%)
Demand driven due to additional requests from farmers.
5
Establish institutional arrangements to support rural development
3 stakeholders supported to implement Social Compact Plan
2 stakeholders supported to implement Social Compact Plan
2 stakeholders supported to implement Social Compact Plan
None None
- 4 Rural Development Steering Committee forums held
4 Rural Development Steering Committee forums held
None None
Performance indicators
Programme 2
Performance Indicator Actual Achievement
2012/2013
Planned Target2013/2014
Actual Achievement
2013/2014
Deviation from planned
target to Actual Achievement
2013/2014
Comment on deviations
1.1 Number of smallholder farmers supported annually (with production inputs - Letsema/Illima Programme)
168 140 143 +3(-2%)
An additional 3 farmers were assisted with piggery production inputs after requests were received.
1.2 Number of Agri-Expos organised (Linking smallholder producers to mainstream national and international markets through agri-expos)
3 3 3 None None
1.3 Number of smallholder farmers attending Agri-Expos
1,095 800 1,165 +365(+46%)
More farmers showed interest in the expos and some used their own transport instead of GDARD procured transport. GDARD assisted with entry tickets as well.
58 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1.4 Number of existing agricultural cooperatives supported
- 60 74 +14(+23%)
Additional requests were received from the cooperatives which lead to the target being exceeded.
1.5 Number of new agricultural cooperatives assisted (Organise communities and producers into cooperatives as contract growers for private and public institutions)
- 40 40 None None
1.6 Number of farmers assisted to access flower markets
- 3 6 +3(+100%)
More farmers were assisted than planned, due to an increased demand for flowers.
1.7 Number of hectares ploughed by allocated tractors
2,968 6,000 6,928 +928(+15%)
More tractors were operational leading to more hectares being ploughed
1.8 Number of farmers days held
4 5 5 None None
1.9 Number of commodity groups supported
51 24 24 None None
1.10 Number of farm plans completed
76 80 81 +1(1.25%)
More requests received for the year than planned. Service is demand driven.
1.11 Number of farm assessments completed
81 80 43 -37(-46%)
The service is demand driven. Fewer requests than planned were received from individual farmers and from the DRDLR. Only requests received are processed.
1.12 Number of agricultural demonstration trials conducted
5 5 5 None None
1.13 Number of disaster relief schemes managed
1 1 1 None None
1.14 Number of early warning reports issued
10 12 15 +3(+25%)
Warnings are climate dependent, and there were more warnings received than anticipated.
1.15 Number of designs with specifications for agricultural engineering solutions provided
49 40 46 +6(+15%)
Demand driven, more requests were received and attended to than expected.
1.16 Number of clients provided with engineering advice during official visits
57 40 78 +38(+95%)
Demand driven, more requests were received and attended to than expected.
59Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1.17 Number of animal vaccinations against controlled animal diseases (anthrax, brucellosis, rabies, NCD)
140,745 97,000 117,004 +20,004(+21%)
Owing to unavailability of S19 vaccine from suppliers in the country, it was decided to rather continue with CA vaccinations as a way of boosting herd immunity towards the disease. S19 is only done in heifer calves but greater coverage which includes older animals is achieved through the use of RB51.
1.18 Number of primary animal health (PAHC) interactions held
85 80 88 +8(+10%)
The reason for exceeding the annual target is because Zoetis Animal Health provided human and other resources which enabled the department to schedule additional study group meeting.
1.19 Number of official veterinary movement documents issued
995 500 3,248 +2,748(+550%)
Demand driven target. More requests were received than expected.
1.20 Number of animal inspections for regulatory purposes
6,065 1,550 1,565 +15(+1%)
As a result of some compartmental registrations expiring, additional inspections had to be done.
1.21 Number of animals sampled/tested for diseases surveillance purposes
53,161 50,000 57,161 +7,161(+14%)
Re-testing of positive herds contributed to the increased output. The CA testing scheme dictates that all positive herds should be retested twice. Once detected in a herd, activities move towards controlling the disease.
1.22 Number of inspections to facilities processing animal products and by- product
57 124 408 +284(+229%)
The scope of inspections was revised by DAFF with effect 1 April 2013, to include all other facilities processing animal and animal-by products and not only rendering plants, which led to more inspections conducted.
1.23 Number of specimens tested (for animal diseases)
53,161 55,000 52,917 -2,083(-4%)
The target of 55,000 was based on previous years’ specimens tested. Due to a favourable disease situation in Gauteng, with no major disease outbreaks, the number of samples received was less than anticipated.
60 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1.24 Number of tests performed
104,894 60,000 106,050 +46,050(+77%)
The number of tests that are conducted on any single or batch of samples from cases of sick animals in the field is guided by the number of possible diseases which the field veterinarian would like to rule out, i.e. the differential diagnosis. There were more tests done to verify that the disease situation was favourable, and to rule out all possible diseases.
1.25 Number of abattoir inspections conducted (Food related facility inspections)
1,845 2,200 2,006 -194(-9%)
The main reason for underperformance is the fact that 17 (22.7 %) of the abattoirs were dormant and did not slaughter. This means that fewer visits were carried out than planned to these abattoirs.
1.26 Number of abattoirs registered
42 32 39 +7(+22%)
The predicted level was exceeded due to 3 new abattoirs registered, 1 abattoir had a change of ownership was reregistered and 3 abattoirs were issued with new certificates due to changes in throughput.
1.27 Number of veterinary export certificates issued
14,079 10,000 16,510 +6,510(+65%)
The service is a demand driven activity which is influenced by international monetary and trade trends.
1.28 Number of export facilities/ establishments registered
132 60 143 +83(+138%)
The service is a demand driven activity which is influenced by international monetary and trade trends.
1.29 Number of requests responded to on macroeconomic information
521 500 513 +13(+3%)
Demand driven. Additional request were received.
1.30 Number of macroeconomicreports developed
5 5 5 None None
1.31 Number of EIAs with no agriculture component on high potential agricultural land approved, using GAPA version 4
0 0 0 None None
1.32 Number of recommendations made on subdivision/rezoning change of agricultural land use
37 20 17 -3(-15%)
Demand driven fewer applications received. Reliant on DEA and DAFF to make recommendations and only 17 were received and responded to.
1.33 Number of farmers who attended accredited training courses
- 400 316 -84(-21%)
Less farmers than anticipated received accredited training.
61Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1.34 Number of farmers who attended non-accredited training courses
1,523 1,150 1,446 +296(+26%)
Additional farmers attended non accredited training courses even when they were only aspiring to be farmers thus increasing the targeted number of farmers.
1.35 Number of presentations made at technology transfer events
12 8 16 +8(+100%)
Target was exceeded as there were more events coordinated. Farmers requested for more presentations on different topics.
1.36 Number of presentations made at scientific events
44 43 43 None None
1.37 Number of articles in popular media published
5 12 8 -4(-33%)
Fewer articles were published because they are dependent on the completion of some of the projects. They are also dependent on the acceptance by the media.
1.38 Number of scientific papers published
4 5 5 None None
1.39 Number of information packs developed
46,080 5 6 +1(+20%)
The extra manual is the irrigation manual which was developed for training farmers on water saving technologies.
2.1 Number of homestead food gardens supported(Training and facilitation of homestead food production)
11,004 12,000 12,014 +14(+0.11%)
14 Additional homestead food gardens were supported due to the demand emanating from the stakeholder engagements.
2. 2 Number of school food gardens established
144 60 49 -15(-25%)
A request by DAFF to review the business plans and focus on maize and dry beans delayed the process. (School Food gardens are funded through conditional grants.)
2. 3 Number of community food gardens supported (Food production within school yards to augment school feeding scheme)
57 60 44 -14(-23%)
A request by DAFF to review the business plans and focus on maize and dry beans delayed the process. (Community Food gardens are funded through conditional grants as a result the decision taken by DAFF and affected the deliverable directly.)
2.4 Number of food security status reports compiled
4 4 4 None None
2.5 Number of verified food insecure households supported
11,859 11,825 12,014 +14(+0.11%)
Additional verified households were supported as part of the homestead garden program.
62 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
2.6 Gauteng 20 Year Food Security Plan approved by Gauteng Executive Council
The Food Security Plan is in the process of approval by Exco
20 Year Food Security Plan approved by Gauteng Executive Council
20 Year Food Security Plan approved by Gauteng Executive Council
None None
3.1 Number of farmers and cooperatives supported with on- and off farm infrastructure through Comprehensive Agricultural Support Programme (CASP)
105 50 28 -22(-44%)
DAFF has issued an instruction that provinces should focus on Maize and Dry beans. No new infrastructure projects will be developed and the business plan has been adjusted accordingly.
3.2 Number of Council of Stakeholders supported through training (leadership and conflict management) and logistical support
4 4 4 None None
4.1 Number of research projects implemented which address specific production constraints
13 12 12 None None
4. 2 Number of vegetable Agri-Parks established (multi-year projects)
0 4 3 vegetable Agri-Parks established
(multi-year projects)
-1(-25%)
The projects were to be funded from the LandBank, however, the transfer of funds was not approved.
4.3 Number of youths participating in National Rural Youth Service Corps (NARYSEC)
1,000 1,883 2,020 +137(7%)
Additional youth were appointed by DRDLR from Walmansthal.
4.4 Number of rural learners attending Open Days at Tertiary Institutions
- 400 403 +3(+0.75%)
Additional learners attended the open days, which were not anticipated.
4.5 Number of agro-processing infrastructure projects implemented in the Maize Triangle areas
1 2 0 -2(-200%)
Service Level Agreement with all the role players (GDARD, Rand Water & FABCOS) was not approved due to the public private partnership processes.
4.6 Number of farmers in the Maize Triangle supported through production inputs such as mechanization services (harvester, access to tractors and supply with fuel)
69 45 90 +45(+100%)
Demand driven and additional resources were received through CASP.
4.7 Number of agro-processing infrastructure projects that are linked to the GEGDS implemented
2 3 2 completed (Sedibeng and Tshwane) and the 3rd (warehouse at the Ekurhuleni Hub) is in progress
-1(-33%)
The 3rd project will commence in 2014/15 due to the delays in the signing of the SLA. This is due to delays in the public private partnership process.
4.8 Number of emerging farmers assisted to access funding from Development Financial Institutions
32 25 30 +5(+20%)
The target is demand driven, more emerging farmers requested assistance than anticipated.
4.9 Number of Agri-Business supported with agricultural economic services towards accessing markets
22 20 26 +6(+30%)
Demand driven, more requests were received than anticipated.
63Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
4.10 Number of students/interns or companies supported annually
- 86 50 bursaries funds, 22 internships, 12 Biotech awards recipient and 1 Biotech fundi award event and 1 Agriculture Biotechnology International Conference 2013, Calgary, Canada)
None None
4.11 Number of Enterprise Developments (SMMEs) linked to funders supported
12 10 24 +14(+140%)
An influx of requests to assist the entrants for the Young Farmer Awards to register as vendors on GPG Centralised Vendor Database.
4.12 Number of AgriBEE /FWES project facilitated
1 2 1 -1(-50%)
One application for AgriBEE fund was declined (Green Oak CC in Heidelberg and the other (Neltropica) withdrew. AFASA pulled out of negotiations with Nestle as Nestle indicated that they already have contracts. An abattoir project in Westrand still need a due diligence and further assessment.
4.13 Number of agricultural economic studies conducted
49 80 60 -20(-25%)
Demand driven as fewer request were received.
4.14 Number of clients supported with agricultural economic advice
105 90 107 +17(+19%)
Demand driven due to additional requests from farmers.
5.1 Number of stakeholders supported to implement Social Compact Plan
3 2 2 None None
5.2 Number of Rural Development Steering Committee forums held
- 4 4 None None
PROGRAMME 3: Environmental Affairs
Purpose
To ensure that the province implements the principles of integrated waste management; promotes sustainable development and
quality of life by ensuring acceptable ambient air quality and sustainable mining practices; and manages industrial related activities.
It also promotes equitable and sustainable use of ecosystem goods and services to contribute to economic development, by
managing biodiversity, and its components, processes, habitats and functions and effectively mitigates threats to biodiversity.
The programme responds to Outcome 5b in the province: Protected and enhanced environmental assets and natural resources
Sub-programme
1. Biodiversity Management
2. Environmental Empowerment Service
Strategic objectives/Outputs (as defined in the 2010/14 Strategic Plan)
Output 1: Enhanced quality and quantity of water resources
Output 3: Sustainable Environmental Management
Output 4: Protected Biodiversity
64 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Strategic objectives, performance indicators planned targets and actual achievements
Strategic objectives
Programme 3
Strategic objective/Output
Actual Achievement
2012/2013
Planned Target
2013/2014
Actual Achievement
2013/2014
Deviation from planned
target to Actual Achievement
2013/2014
Comment on deviations
1
Enhanced quality and quantity of water resources
- 80 farmers trained in water saving technologies
158 farmers trained in water saving technologies
+78 (+98%)
More farmers than anticipated attended the training during November 2013, and there were no financial implications.
4 Priority wetlands identified, mapped and management plans developed across GP
4 Priority wetlands identified, mapped and management plans developed across GP
4 Priority wetlands identified, mapped and management plans developed across GP
None None
1 wetlands rehabilitated through EPWP
1 wetlands rehabilitated through EPWP
3 wetlands rehabilitated through EPWP
+2(+200%)
Additional funding was received from DAFF to allow the Tswaing wetland rehabilitation project to extend into 2013/14. The available budget for 2013/14 wetland rehabilitation was used efficiently allowing two wetlands to be rehabilitated according to the revised rehabilitation plan.
237 Tonnes of waste removed from rivers through EPWP projects
300 Tonnes of waste removed from rivers through EPWP projects
939 Tonnes of waste removed from rivers through EPWP projects
+639 (+213%)
High level of solid waste in the rivers due to a lack of proper urban planning and domestic waste collection.
- 1 River system assessed to determine ecosystem health
Based on the assessment of the Crocodile west Marico Catchment river system to determine its ecosystem health, a Management plan was developed for the Crocodile West Marico Catchment.
None None
65Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
2
Reducing atmospheric pollutants/ carbon emissions and adapting to the impacts of climate change
Draft inventory (GHG Framework) were developed and submitted.
GHG Inventory completed and approved
Greenhouse gases (GHG) inventory has been developed and approved.
None None
- 2 BNM projects Implemented
2 BNM projects Implemented
None None
Bioclimatic layers in Bioregional and Biodiversity Conservation plan incorporated
1 climate change response tool developed
1 bioclimatic layer included in C-Plan 3
None None
- 1 air emission licences applications finalised within legislated timeframes
3 air emission licences applications finalised within legislated timeframes
+2(+200%)
The service is demand driven. More applications were received and finalised than planned
- 5(cumulative) designated organs of state with approved and implemented Air Quality Management Plans (AQMP’s
6 designated organs of state with approved and implemented Air Quality Management Plans (AQMPs)
+1(+20%)
An additional municipality had an approved and implemented Air Quality Management Plan
3 Sustainable environmental management
9 LandCare community based natural resource management projects implemented
11 LandCare community based natural resource management projects implemented
11 LandCare community based natural resource management projects implemented
None None
32.36 Kilometres of waterways and contours surveyed on farms
30 Kilometres of waterways and contours surveyed on farms
30.18 Kilometres of waterways and contours surveyed on farms
+0.18km(+0.6%)
The farm land was larger than expected.
17km of fencing implemented for the LandCare
14km of fencing implemented for the LandCare
12.945km of fencing implemented for the LandCare
-1.055Km(-8%)
Initial desktop study/estimation indicated 14km to be erected. Actual length required on site according to the terrain and erected was 12.945 km.
9 awareness campaigns
11 awareness campaigns conducted
11 awareness campaigns conducted
None None
5 Junior LandCare youth camps undertaken from April 2013 to March 2014 for schools from Gauteng priority townships
6 Junior LandCare youth camps undertaken from April 2013 to March 2014 for schools from Gauteng priority townships
6 Junior LandCare youth camps undertaken from April 2013 to March 2014 for schools from Gauteng priority townships
None None
66 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
6 capacity building exercises conducted within approved land care (Junior LandCare Schools projects)
6 capacity building exercises conducted within approved land care (Junior LandCare Schools projects)
6 capacity building exercises conducted within approved land care (Junior LandCare Schools projects)
None None
800 ha of farm land improved through conservation measures
800 ha of farm land improved through conservation measures
2,264.16 ha of farm land improved through conservation measures
+1,464.16(+183%)
The target was exceeded as more land was improved through soil conservation measures and removal of alien plants than planned.
626 EPWP green jobs 356 EPWP green jobs (175 FTE)
648 EPWP jobs +292(+82%)
Work opportunities were created for planned 2013/14 projects as well as some projects still funded from the 2012/13 funded municipal projects. An integrated EPWP Grant was received. GDARD has to wait for the final verified annual number of WO from the DPW national MIS Web based reporting system before providing the final FTE.
Evaluation process has been concluded. Research project (EIA Review system) initiated.
1 Environmental research projects finalised (EIA Review, GSSD)
1 Environmental research projects finalised (EIA Review, GSSD)
None None
AMD passive treatment pilot not implemented
Conduct research AMD passive treatment pilot
AMD Passive Treatment Research conducted
None None
- 2 legislative tools developed
0 legislative tools developed
-2(-200%)
Legislative tools were not developed as a result of changes in legislations which required changes in the draft regulations and EMFs developed.
- 12 inter-governmental sector tools reviewed
12 inter-governmental sector tools reviewed
None None
3 functional environmental information management databases maintained (GIS, WIS, NEAS)
3 functional environmental information management databases maintained (GIS, WIS, NEAS)
3 functional environmental information management databases maintained (GIS, WIS, NEAS)
None None
53 criminal enforcement actions finalized for non-compliance with environmental legislation
28 criminal enforcement actions finalized for non-compliance with environmental legislation
79 criminal enforcement actions finalized for non-compliance with environmental legislation
+51(+182%)
This is a demand driven indicator and is dependent on non-compliances referred to and finalised by the National Prosecuting Authority
67Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
319 compliance inspections conducted
200 compliance inspections conducted
221 compliance inspections conducted
+21(+11%)
Target exceeded because more complaints were received which required to be followed up. Some industries and developments which were inspected in this financial year had more than one Environmental Authorisations.
148 S24G applications finalized
25 S24G applications finalized
33 S24G applications finalized
+8(+32%)
This is a demand driven output which depends on submission of requested information and payment of admin fines by the applicants and also on the outcome of the site inspections upon receipt of the application
123 administrative enforcement actions taken for non-compliance with environmental legislation
80 administrative enforcement actions taken for non-compliance with environmental legislation
132 administrative enforcement actions taken for non-compliance with environmental legislation
+52(+65%)
This is a demand driven output which is dependent on the number of transgression reported and found upon investigation.
248 EIA applications finalised within legislated timeframes
340 EIA applications finalised within legislated timeframes
314 EIA applications finalised within legislated timeframes
-26(-8%)
Demand driven, less applications were finalised than planned.
- 8 Waste Licenses applications finalised within legislated timeframes
10 Waste Licenses applications finalised within legislated timeframes
+2(+25%)
Demand driven. More applications were received to process.
40 awareness campaigns conducted
2 awareness campaigns conducted
2 awareness campaigns conducted
None None
- 11 environmental capacity building activities conducted
84 environmental capacity building activities conducted
+73(+664%)
Due to Gauteng Province being part of the Environmental Education Alliance Programme and actively supporting the Presidential Special Project, the quarterly target was exceeded.
1,615.6 Hectares of alien vegetation removed through EPWP projects
1,266 Hectares of alien vegetation removed through EPWP projects
1,769.9 Hectares of alien vegetation removed through EPWP projects
+503.9(+40%)
The target was exceeded due to the unaligned financial years with the Municipalities (Emfuleni, Merafong City, Mogale City, Zuurbekom and Lesedi).
156.8 Kilometers of firebreaks burned as working on fire EPWP project
100 Kilometers of firebreaks burned as working on fire EPWP project
188.8 Kilometers of firebreaks burned as working on fire EPWP project
+88.8km(+89%)
The grass was drier in the fire season this year allowing for speedy burning of fire breaks and there was support from the two Dinokeng Teams hence the target was exceeded.
68 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
4 Protected biodiversity
1 Biodiversity Spatial Plan published
1 Biodiversity Spatial Plans published
- -100% 5 Draft Biodiversity spatial plans are available. The target was not reached due to challenges in the interpretation of NEMBA
26,109 hectares of land under conservation
26,109 hectares of land under conservation
26,109 hectares of land under conservation
None None
6 provincial protected areas with management plans
6 provincial protected areas with management plans
6 provincial protected areas with management plans
None None
110 job opportunities
created through environmental programmes
136 job opportunities created through environmental programmes
144 job opportunities created through environmental programmes
+8(+6%)
Approval was obtained to appoint 8 additional contract workers as handymen in order to prevent the further deterioration of the closed overnight facilities and Kareekloof. A total of 144 instead of the planned 136 jobs were thus created.
Performance indicators
Programme 3
Performance Indicator Actual Achievement
2012/2013
Planned Target2013/2014
Actual Achievement2013/2014
Deviation from planned
target to Actual Achievement
2013/2014
Comment on deviations
1.1. Number of farmers trained in water saving technologies
- 80 158 +78 (+98%)
More farmers than anticipated attended the training during November 2013, and there were no financial implications.
1.2. Priority wetlands identified, mapped and management plans developed across GP
4 4 4 None None
1.3 Number of wetlands rehabilitated through EPWP
1 1 3 +2(+200%)
Additional funding was received from DAFF to allow the Tswaing wetland rehabilitation project to extend into 2013/14. The available budget for 2013/14 wetland rehabilitation was used efficiently allowing two wetlands to be rehabilitated according to the revised rehabilitation plan.
69Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1.4 Number of Tonnes of waste removed from rivers through EPWP projects
237 300 939 +639 (+213%)
High level of solid waste in the rivers due to a lack of proper urban planning and domestic waste collection.
1.5 Number of river systems assessed to determine ecosystem health
- 1 River system assessed to determine ecosystem health
Based on the assessment of the Crocodile west Marico Catchment river system to determine its ecosystem health, a Management plan was developed for the Crocodile West Marico Catchment.
None None
2.1. Greenhouse Gases (GHG) Inventory completed and approved
Draft inventory (GHG Framework) were developed and submitted.
GHG Inventory completed and approved
Greenhouse gases (GHG) inventory has been developed and approved.
None None
2.2 Number of Basa nje ngo Magogo (BNM) projects Implemented
- 2 BNM projects Implemented
2 BNM projects Implemented
None None
2.3 Number of climate change response tools developed
Bioclimatic layers in Bioregional and Biodiversity Conservation plan incorporated
1 1 Bioclimatic layer included in C-Plan 3
None None
2.4 Number of air emission licences applications finalised within legislated timeframes
- 1 3 +2(+200%)
The service is demand driven. More applications were received and finalised than planned
2.5 Number of designated organs of state with approved and implemented Air Quality Management Plans (AQMPs)
- 5(cumulative)
6 +1 (+20%)
An additional municipality had an approved and implemented Air Quality Management Plan
3.1. Number of LandCare community based natural resource management projects implemented
9 11 11 None None
3.2 Number of Kilometres of waterways and contours surveyed on farms
32.36 30 30.18 +0.18(+0.6%)
The farm land was larger than expected.
3.3 Number of kilometres of fencing implemented for the LandCare
- 14 12.945 -1.055(-8%)
Initial desktop study/estimation indicated 14km to be erected. Actual length required on site according to the terrain and erected was 12.945 km.
3.4 Number of awareness campaigns conducted on LandCare
9 11 11 None None
3.5 Number of Junior LandCare youth camps undertaken from April 2013 to March 2014 for schools from Gauteng priority townships
5 6 6 None None
70 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.6 Number of capacity building exercises conducted within approved land care (Junior LandCare Schools projects)
6 6 6 None None
3.7 Number of farm land hectares improved through conservation measures
800 800 2,264.16 +1,464.16(+183%)
The target was exceeded as more land was improved through soil conservation measures and removal of alien plants than planned.
3.8 Number of green jobs created through LandCare
626 EPWP green jobs
356 EPWP green jobs (175 FTE)
648 EPWP jobs +292(+82%)
Work opportunities were created for planned 2013/14 projects as well as some projects still funded from the 2012/13 funded municipal projects. An integrated EPWP Grant was received. GDARD has to wait for the final verified annual number of WO from the DPW national MIS Web based reporting system before providing the final FTE.
3.9 Number of environmental research projects undertaken
Evaluation process has been concluded. Research project (EIA Review system) initiated.
1 Environmental research projects finalised (EIA Review, GSSD)
1 Environmental research projects finalised (EIA Review, GSSD)
None None
3.10 Pilot on AMD Passive treatment conducted
AMD passive treatment pilot not implemented
Conduct research AMD passive treatment pilot
AMD Passive Treatment Research conducted
None None
3.11 Number of legislative tools developed
- 2 0 -2(-200%)
Legislative tools were not developed as a result of changes in legislations which required changes in the draft regulations and EMFs developed.
3.12 Number of inter-governmental sector tools reviewed
- 12 12 None None
3.13 Number of functional environmental information management databases (GIS, NEAS, WIS) maintained
3 3 functional environmental information management databases maintained (GIS, NEAS, WIS)
3 functional environmental information management databases maintained (GIS, NEAS, WIS)
None None
3.14 Number of criminal enforcement actions finalized for non-compliance with environmental legislation
53 28 79 +51(+182%)
This is a demand driven indicator and is dependent on non-compliances referred to and finalised by the National Prosecuting Authority
71Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.15 Number of compliance inspections conducted
319 200 221 +21(+11%)
Target exceeded because more complaints were received which required to be followed up. Some industries and developments which were inspected in this financial year had more than one Environmental Authorisations.
3.16 Number of S24G applications finalized
148 25 33 +8(+32%)
This is a demand driven output which depends on submission of requested information and payment of admin fines by the applicants and also on the outcome of the site inspections upon receipt of the application
3.17 Number of administrative enforcement actions taken for non-compliance with environmental legislation
123 80 132 +52(+65%)
This is a demand driven output which is dependent on the number of transgression reported and found upon investigation.
3.18 Number of EIA applications finalised within legislated timeframes
248 340 314 -26(-8%)
Demand driven, less applications were finalised than planned.
3.19 Number of Waste Licenses applications finalised within legislated timeframes
- 8 10 +2(+25%)
Demand driven. More applications were received to process.
3.20 Number of environmental awareness activities conducted
40 2 2 None None
3.21 Number of environmental capacity building activities conducted
- 11 84 +73(+664%)
Due to Gauteng Province being part of the Environmental Education Alliance Programme and actively supporting the Presidential Special Project, the quarterly target was exceeded.
3.22 Number of Hectares of alien vegetation removed through EPWP projects
1,615.6 1,266 1,769.9 +503.9(+40%)
The target was exceeded due to the unaligned financial years with the Municipalities (Emfuleni, Merafong City, Mogale City, Zuurbekom and Lesedi).
72 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.23 Number of Kilometers of firebreaks burned as working on fire EPWP project
156.8 100 188.8 +88.8(+89%)
The grass was drier in the fire season this year allowing for speedy burning of fire breaks and there was support from the two Dinokeng Teams hence the target was exceeded.
4.1 Number of Biodiversity Spatial Plans published
1 1 - -100% 5 Draft Biodiversity spatial plans are available. The target was not reached due to challenges in the interpretation of NEMBA
4.2 Number of hectares of land under conservation
26,109 26,109 26,109 None None
4.3 Number of provincial protected areas with management plans
6 6 6 None None
4.4 Number of job opportunities created through environmental programmes
110 136 144 +8(+6%)
Approval was obtained to appoint 8 additional contract workers as handymen in order to prevent the further deterioration of the closed overnight facilities and Kareekloof. A total of 144 instead of the planned 136 jobs were thus created.
2013/2014 2012/2013
Sub- Programme Name
Final Appropriation
Actual Expenditure
(Over)/Under Expenditure
Final Appropriation
Actual Expenditure
(Over)/Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Administration 156 592 155 626 966 143 531 143 517 14
Agriculture and Rural Development
253 440 253 151 289 245 257 243 637 1 620
Environmental Affairs 144 145 141 964 2 181 128 871 128 734 137
Total 554 177 550 741 3 436 517 659 515 888 1 771
73Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
5. SUMMARY OF FINANCIAL INFORMATION
5.1. Departmental receipts
2013/2014 2012/2013
Departmental receipts
Estimate Actual Amount Collected
(Over)/Under Collection
Estimate Actual Amount Collected
(Over)/Under Collection
R’000 R’000 R’000 R’000 R’000 R’000
Sale of goods and services other than capital assets
850 743 107 620 671 (51)
Interest, dividends and rent on land
40 1 39 6 80 (74)
Financial transactions in assets and liabilities
500 285 215 940 1 355 (415)
Total 1 390 1 029 361 1 566 2 106 (540)
The Department collected R 1 million of its R1,3 million projected to be collected as at end of March 2014. The
main reason for the under collection can be attributed to the following:
Sale of goods and services other than capital assets
The saving is due to the decline in collection of revenue for replacement of access cards as the Department
moved to New Building 11 Diagonal Street. Access cards are not being used currently. The revenue item relate
also to Commission charges on insurance and Garnishee orders which decreased in the 2013/2014 financial
year and, thus, impacted on Revenue Collection.
Interest, dividends and rent on land
The under collection in this revenue item can be attributed to the fact that the Department wrote off a huge
amount of supplier debts, which was done at the end of March 2013. These were supplier debts which had no
prospect of being recovered as all avenues to collect had been exhausted. Interest charges are less than R1
000.00 for the 2013/2014 financial year.
Financial transactions in assets and liabilities
This revenue item relates to the recovery of previous year expenditure which is lower than what was originally
projected to be collected.
74 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
5.2. Programme Expenditure
2013/2014 2012/2013
Programme Name
Final Appropriation
Actual Expenditure
(Over)/Under Expenditure
Final Appropriation
Actual Expenditure
(Over)/Under Expenditure
R’000 R’000 R’000 R’000 R’000 R’000
Administration 156 592 155 626 966 143 531 143 517 14
Agriculture and Rural Development
253 440 253 151 289 245 257 243 637 1 620
Environmental Affairs
144 145 141 964 2 181 128 871 128 734 137
Total 554 177 550 741 3 436 517 659 515 888 1 771
The Department was able to spend 99.4% of its total allocation. This includes 99.9% expenditure on Conditional Grants.
This is a continuation of the trend of good spending as even in the previous financial year we spent 99.7%. The main
underspending is under Compensation of Employees. The inability to fill the Head of Department (HOD), Chief Financial
Officer and the Chief Director Sustainable Use of Environment led to the underspending. It must however be mentioned
that the HOD post has since been filled.
Programme 1 - Administration: R966 thousandThis Programme spent 99.4% of its allocated budget for the 2012/2013 financial year. The main underspending was
under Compensation of Employees because of the late filling of the posts of the HOD. The post of the CFO was also
vacant for the financial year.
Programme 2 - Agriculture and Rural Development: R289 thousand This Programme spent 99.9% of its allocated budget. An amount of R281 thousand was not spent on payment for
Capital Assets. The money was committed but the expenditure could not be realised at the end of the financial year. Programme 3 - Environmental Affairs: R2, 1 millionThis Programme spent 98.5% of its allocated budget. An amount of R2,1 million was not spent under the Compensation
of Employees budget. The under-spending can be attributed to vacancies not filled during the financial year.
75Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
5.3. Transfer payments to all organisations other than public entities
Name of transferee
Type of organisation
Purpose for which the funds were
used
Did the dept.
comply with s 38 (1) (j) of
the PFMA
Amount transferred
(R’000)
Amount spent by the entity
Reasons for the funds unspent by
the entity
SANBI Departmental Agencies and Accounts
Wetlands rehabilitation
yes R1 600 R1 300 Delays due to heavy rains. Completed in April 2014
ARC Departmental Agencies and Accounts
Research Agenda projects
yes R1 360 R1360 The funds are transferred upfront for research and the projects resume after they have received the funds. All funds have therefore been committed
ARC Departmental Agencies and Accounts
Farmer training
yes R2 200
RAND WATER Public Corporations Alien plants removal & MTK awards
yes R5 689 R5 689 Project completed
RAND WATER Public Corporations Agro processing
yes R5 700 R5700 Project completed
RAND WATER
Public Corporations Production inputs
yes R10 485 R2,500 Agroprocessing projects partly completed and implementation of multi-year agro processing infrastra-structure is in progress partnership with Municipalities. Delays due to Public Private Partnerships
UJ Universities and Technikon
Research agenda & bursaries
yes R730 R730 Research funds have been committed and bursary funds allocated to students
VUT Universities and Technikon
Research agenda & bursaries
yes R250 R250 Research funds have been committed and bursary funds allocated to students
UP Universities and Technikon
Research agenda & bursaries
yes R700 R700 Funds have been utilised and allocated to students
UNISA Universities and Technikon
Research agenda & bursaries
yes R200 R250 Funds have been utilised and allocated to students
WITS Universities and Technikon
Research agenda & bursaries
yes R450 R450 Funds have been utilised and allocated to students
76 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TUT Universities and Technikon
Research agenda & bursaries
yes R826 R826 Funds have been utilised and allocated to students
Lesedi Municipality
Municipality Alien vegetation Eradication
yes R1 300 R251 Contractual delays resulted in a late start. Project currently being implemented
Merafong Municipality
Municipality Alien vegetation Eradication
yes R750 R750 Spent
City of Johannesburg
Municipality River clean -up project.
yes R2600 R569 Contractual delays resulted in a late start. Project currently being implemented
Emfuleni Municipality
Municipality Alien vegetation Eradication
yes R750 R243 Municipal deviation to contract – GPG Treasury intervention underway
Ekurhuleni Municipality
Municipality Tembisa urban Renewal
yes R1 425 R1 425 Spent
Lesedi Municipality
Municipality Devon Tannery Yes R500 R0 The Service Provider has not invoiced the Municipality for the portion of work already done
Conditional grants and earmarked funds received
The table/s below details the conditional grants and earmarked funds received during period 1 April 2013 to
31 March 2014.
77Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
COMPREHENSIVE AGRICULTURE SUPPORT PROGRAMME GRANT
Department that
transferred the grant
Department of Agriculture, Forestry and Fisheries
Purpose of the grant To provide effective agricultural support services services, promote and facilitate agricultural development by targetting beneficiries of land restitution and redistribution, and other previously disadvantaged producers who acquired land though private means, and are engaged in value-adding enterprises domestically, or involved in export.To adress damage to infrastructure caused by floods.
Expected outputs of
the grant
• Number of food procuction units (land reform projects)• Number of economically viable projects• Increased quality and quantity of yield in projects• Number of profitable food security projects• 1% increase in food security (food security projects)• Number of food projects established• Number of income generation activities created• Increase in income levels of the targetted beneficiaries• 1% in household income• Number of jobs created• 5% jobs retained in the agricultural sector in the province• 1% increase in sustainable jobs created• Number of farmers trained• Number of seminars/symposium/workshops conducted• Number of training courses conducted• % increase in skills, knowledge and productivity• % increase in GDP of the province• Reconstrcution of storeroom facility (x1 beneficiary)• Construction of poultry structure (x1 beneficiary)• Repair of tunnels (x8 beneficiaries)• Procured and supplied production inputs:• White maize seeds 150 bags (25kg) DKC7817 x15 beneficiaries. • Fertilizers LAN (28) 1300 (50kg) bags; 5:3:4 of 1000 (50kg) bags & 4:3:4 1000
(50kg) bags to x49 beneficiaries; 5:3:4 1000 (50kg) bags for 17 beneficiaries; Potassium Nitrate 490 (50kg) bags for x8 beneficiaries
Actual outputs
achieved
• 285 land and agrarian projects (food production units) were supported• 5 economically viable projects were established• 3 farms/projects increase in quantity and quantity of yield• 2 profitable food security projects were established• 3 economically viable projects were established• 15 agricultural income generation activities were created• 3 projects/farms increase in income levels of the targetted beneficiaries• 4 household food projects increase in income• 223 agricultural jobs were created• 2 agricultural jobs were retained• 2 sustainable agricultural jobs were created• 200 farmers were trained• 3 seminars/symposium/ workshop conducted• 4 training courses were conducted• 6 projects imparted with skills and agricultural knowledge• 6 viable projects contributed towards provincial GDP• 60 smallholder farmers to be provided with technical and advisory services• Reconstructed storeroom facility (10 m x 9 m)• Contructed Poultry structures (18 m x4 m)• Repaired tunnels (19 tunnels)• Procured and delivered production inputs:
o White maize seeds 150 bags (25kg) DKC7817 x15 beneficiaries
o Fertilizers LAN (28) 1300 (50kg) bags; 5:3:4 of 1000 (50kg) bags
& 4:3:4 1000 (50kg) bags to x 49 beneficiaries; 5:3:4 1000 (50kg)
bags for 17 beneficiaries; Potassium Nitrate 490 (50kg) bags for x 8
beneficiaries
Amount per
amended DORA
R55 880
Amount transferred
(R’000) R55 880
78 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Reasons if amount as per DORA not transferred
N/A
Amount spent by the
department (R’000)
R 55 760
Reasons for the
funds unspent
The total budget allocation through CASP has all been spent.
Monitoring
mechanism by
the transferring
department
The Department has dedicated project managers that manage these projects, transfer payment are not made if the following documents are not in place. • Contracts (SLA or MOU) must be signed by both Parties involved;• GDARD must ensure that an “assurances” clause is included in the contract/agreement
which is signed by all relevant accounting officers;• A clause will be included in the contract relating to assurances; HOD must sign off
memorandum authorizing the payment irrespective of the amount;• Confirmation for the receipts of funds from the Institution and/or Municipalities,
confirming that they have received funds from GDARDMunicipalities and Institutions must submit quarterly progress reports to the relevant project manager.
ILIMA/ LETSEMA PROJECTS GRANT
Department that
transferred the grant
Department of Agriculture, Forestry and Fisheries
Purpose of the grant To assist vulnerable South African farming communities to achieve an increase in agricultural
production and invest in infrastructure that unlocks agricultural production.
Expected outputs of
the grant
• Increase in food security through support of poultry production inputs (chicks, feeds, medications)
• Increase in food security through support of piggery production inputs (boars, sows and feeds)
• Improve economic viability of piggery units• Improve economic viability of poultry units• Increase number of farmers producing for a specfic market• Increased economic growth through creation of job opportunities• Incease in food security through support of nguni cattle for livestock farmers in the
province• Increase in food security through support of grain production inputs (maize) for plant
production farmers in the province
Actual outputs
achieved
• 30 poultry production units/projects increased food production• 30 piggery production units/projects to increase food production.• 4 sustained viable piggery units• 4 sustained viable poultry units were achieved• 6 farmers to produce for market• 154 seasonal job opportunities were created
Amount per
amended DORA
N/A
Amount transferred
(R’000)
R17 538
Reasons if amount
as per DORA not
transferred
N/A
Amount spent by the
department (R’000)
R17 538
Reasons for the funds
unspent
N/A
79Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Monitoring
mechanism by
the transferring
department
The Department has dedicated projects managers that manage these project, transfer payments are not made if the following documents are not in place. • Contracts (SLA or MOU) must be signed by both Parties involved;• GDARD must ensure that an “assurances” clause is included in the contract/agreement
which is signed by all relevant accounting officers;• A clause will be included in the contract relating to assurances; HOD must sign off
memorandum authorizing the payment irrespective of the amount;• Confirmation for the receipts of funds from the Institution and/or Municipalities,
confirming that they have received funds from GDARDMunicipalities and Institutions must submit quarterly progress reports to the relevant project manager.
LAND CARE PROGRAMME GRANT: POVERTY RELIEF AND INFRASTRUCTURE DEVELOPMENT
Department that
transferred the grant
Department of Agriculture, Forestry and Fisheries
Purpose of the grant To promote sustainable use and management of natural resources by engaging in the
initiatives that support the pillars of sustainability (social, economic and environmental)
leading to greater productivity, food security, job creation and better well-being for all.
Expected outputs of
the grant
• Zuurbekom smallholding alien plant removal: Westonaria ward 6 - Outputs: 50
jobs created; 500 ha cleared
• Vrisgewaagd alien plant removal: Lesedi local municipality wards 11 and 12 -
Outputs: 45 jobs created; 130 ha cleared
• Magalies wetland rehabilitation phase 2: Mogale City ward 31 - Outputs: 25
jobs; Rehabilitate 1 wetland
• Fencing scheme: Tshwane ward 105 - Outputs 31 jobs; 14 km fencing
Actual outputs
achieved
• Zuurbekom smallholding alien plant removal: Westonaria ward 6 - Outputs: 50 jobs
created; 785 ha cleared
• Vrisgewaagd alien plant removal: Lesedi local municipality wards 11 and 12 -
Outputs: 45 jobs created; 134 ha cleared
• Magalies wetland rehabilitation phase 2: Mogale City ward 31 - Outputs: 99 jobs;
Rehabilitate 3 wetland
• Fencing scheme: Tshwane ward 105 - Outputs 52 jobs; 13 km fencing
Projects implemented from the Fencing Grant Tender Savings:
1. Winterveld SRM national Land Care conditional grant fencing project; Fencing: 830
meters; number of farmers: 1
2. SRM Land Care community based natural resource management nursery infrastructure:
Evaton Lekoa Nursery (built in the Letsema Ilima Primary School, Emfuleni
Municipality), and Tsolo Traditional Healers garden (built in the Tsolo High School,
Emfuleni Municipality); Community nurseries: 2
3. Sokhulumi Community Wetland Rotational Grazing Fencing Project - additional
wetland fencing proposal; Fencing: 965 meters
4. SRM BEST PRACTICE project to redesign awareness material related to soil conservation
and Conservation Agriculture - transfer funds to the RWF; 1 brochures; 3 banners
Amount per amended
DORA
R6 163
Amount transferred
(R’000)
R6 163
80 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Reasons if amount
as per DORA not
transferred
N/A
Amount spent by the
department (R’000)
R6 163
Reasons for the funds
unspent
N/A
Monitoring
mechanism by
the transferring
department
The Department has dedicated project managers that manage these project, transfer payments are not made if the following documents are not in place. • Contracts (SLA or MOU) must be signed by both Parties involved;• GDARD must ensure that an “assurances” clause is included in the contract/agreement
which is signed by all relevant accounting officers;• A clause will be included in the contract relating to assurances; HOD must sign off
memorandum authorizing the payment irrespective of the amount;• Confirmation for the receipts of funds from the Institution and/or Municipalities,
confirming that they have received funds from GDARDMunicipalities and Institutions must submit quarterly progress reports to the relevant project manager.
EPWP INCENTIVE GRANT: POVERTY RELIEF AND INFRASTRUCTURE DEVELOPMENT
Department to whom the grant has
been transferred
Gauteng Department of Agriculture and Rural Development
Purpose of the grant To promote sustainable use and management of natural resources by
engaging in the initiatives that supports the pillars of sustainability (social,
economic and evironmental) leading to greater productivity, food security,
jop creation and better well-being for all.
Expected outputs of the grant Bamba Manzi alien plant removal: Mogale City wards 21,27,29 and 32
Outputs: 50 jobs created; 500 ha cleared
Budget: R 607 000 = EPWP incentive grant
Equitable share = R 1 793 000
Total budget = R 2 400 000
Actual outputs achieved Bamba Manzi alien plant removal: Mogale City wards Outputs: 50 jobs
created; 573.1 ha cleared
Budget: R 607 000 = EPWP incentive grant
Equitable share = R 1 793 000
Total budget = R 2 400 000
Amount per amended DORA
Amount transferred (R’000) Budget: R 607 000 = EPWP incentive grant
Equitable share = R 1 793 000
Total budget = R 2 400 000
Reasons if amount as per DORA not
transferred
N/A
81Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Amount spent by the department
(R’000)
Budget: R 607 000 = EPWP incentive grant
Equitable share = R 1 793 000
Total budget = R 2 400 000
Reasons for the funds unspent N/A
Monitoring mechanism by the
transferring department
The Department has dedicated project managers that manage these projects, transfer payments are not made if the following document are not in place. • Contracts (SLA or MOU) must be signed by both Parties involved;• GDARD must ensure that an “assurances” clause is included in the
contract/agreement which is signed by all relevant accounting officers;• A clause will be included in the contract relating to assurances; HOD
must sign off memorandum authorizing the payment irrespective of the amount;
• Confirmation for the receipts of funds from the Institution and/or Municipalities, confirming that they have received funds from GDARD
Municipalities and Institutions must submit quarterly progress reports to the relevant project manager.
EARMARKED ALLOCATIONS
Agro-processing and Agriculture 22,842
Farmer support (Extension Officers) 4,725
Department who transferred the
grant
• Gauteng Treasury
Purpose of the grant • Biotechnology Development, R & D and Agri-parks
Expected outputs of the grant • Biotechnology Bursaries and Internship project• Gauteng Biotech Fundi Awards• Support to the Gauteng BioScience Park at The Innovation Hub• Partnership with eGolibio Incubator for business and marketing
support of agrobiz-entrepreneurs and bio-entrepreneurs in the Biopark
• Participation in the Agricultural Biotechnology International Congress (ABIC)
• Research and Development (R & D)
Actual outputs achieved • In 2013/4 financial year • 50 bursaries were given out and 25 internship opportunities • Three students were awarded travel scholarship tto Agricultural
Biotechnology International Congress (ABIC)• The 3rd Biotech Fundi Awards was hosted successfully• Funds were contributed to develop the Agri-Parks in Tarlton
Amount per amended DORA
Amount transferred (R’000) R12 842
Reasons if amount as per DORA not
transferred
N/A
Amount spent by the department
(R’000)
All funds allocated were spent
Reasons for the funds unspent Funds were spent
Monitoring mechanism by the
transferring department
Contracts are in place and quarterly monitoring meetings are held with all institutes which have receive the funds
82 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
5.4. Donor Funds Received
The Department did not receive any donor funds in the year under review.
5.5. Capital investment, maintenance and asset management plan
2013/2014 2012/2013
Infrastructure projects
Final Appropriation
R’000
Actual Expenditure
R’000
(Over)/Under Expenditure
R’000
Final AppropriationR’000
Actual ExpenditureR’000
(Over)/Under ExpenditureR’000
New and replacement assets
2 000 3 123 -1 123 1 851 130 1 721
Existing infrastructure assets
5 406 2 828 2 578 8 149 10 207 -2 058
- Upgrades and additions
1 114 1 114 652 253 399
- Rehabilitation, renovations and refurbishments
2 792 2 714 78 6 097 8 217 2 120
- Maintenance and repairs
1 500 114 1 386 1 400 1 737 -337
Infrastructure transfer
- Current
- Capital
Total 7 406 5 951 1 455 10 000 10 337 -337
The main reason for the underspending of R1,4 million on Infrastructure projects is because the amount allocated to
maintenance was R 977 408.00 . Most of the projects are small in nature but they had to be clustered together and
advertised as one project. The project implementation plans were ready but there was not sufficient time to go out on
tender and have the projects implemented before the end of the financial year.
Infrastructure projects which have been completed in the current year and the progress in comparison to what was
planned at the beginning of the year:
83Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Project Description Local Municipality
Inco
mp
lete
Co
mp
lete
d
Appropriation
Institution Name
Suikerbosrand Nature Reserve
Booster Pump for the Northern Water Line Midvaal and Lesedi
× 36 843.00
Suikerbosrand Nature Reserve New Adventure Centre Midvaal and Lesedi
×
750 000.00
Suikerbosrand Nature Reserve Southern Water Line Midvaal and Lesedi
x 1 110 122.00
Training CentreNew Kiddies pool construction Tshwane Municipality
×
103,000.00
TembaUpgrading of Temba Agricultural Offices Tshwane Municipality x 309 989.00
Suikerbosrand-Kareekloof
Reconstruction of stables into accommodation units Tshwane Municipality
× 300 000.00
Suikerbosrand Nature Reserve Renovation of house 1 to 7 Midvaal and Lesedi × 497 000.00
Suikerbosrand Nature Reserve
General renovations of Schoongezicht house, outbuildings and palisade fence Midvaal and Lesedi × 488 000.00
Suikerbosrand Nature Reserve
Replacement of carpet in breakaway rooms and painting of admin Midvaal and Lesedi × 300,000.00
Suikerbosrand Nature Reserve
Upgrading of male and female toilets Midvaal and Lesedi x 69 000.00
Suikerbosrand Nature Reserve
Maintenance and repairs of Ouhoutkamp Midvaal and Lesedi x 452,000.00
Suikerbosrand Nature Reserve
Maintenance of old boom gates at Diepkloof and Schoongezicht Midvaal and Lesedi × 75,559.20
Suikerbosrand Nature Reserve
General renovation to Yellow house Midvaal and Lesedi × 195,000.00
Training CentreRenovation of existing swimming pool Midvaal and Lesedi
×71 706.00
Leeuwfontein Nature Reserve
Basic picnic site for day visitors Tshwane Municipality
x400 000.00
Roodeplaat Nature Reserve Upgrade of power units Tshwane Municipality x 114 430.00
Maintenance Scheduled maintenance Midvaal and Lesedi × 977 408.00
MaintenanceExternal upgrade of ARC1 and 2 Building at Vredehuis
Midvaal and Lesedi × x 142 592.00
TOTAL 7 406 000.00
84 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Infrastructure projects that are currently in progress and when they are expected to be completed,
Project description Local MunicipalityExpected Completion
DateInstitution Name
Suikerbosrand Nature Reserve
Booster Pump for the Northern Water Line Midvaal and Lesedi
30 May 2014
Suikerbosrand Nature Reserve Southern Water Line Midvaal and Lesedi
31 December 2015
85Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
PART C: GOVERNANCE
86 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1. Introduction
The Department maintains a high standard of governance which includes a Risk Management unit and Internal
Audit as well as an Ethic Committee. The Provincial Audit Committee services a cluster of Departments, viz.
Department of Economic Development, Department of Community Safety, and Trading Entities: Liquor Board
and Dinokeng Cradle of Humankind. The committee consists of external members from civil society, the HOD,
CFO and CRO from these Departments.
The Audit Committee is effective in that it provides valuable support and oversight to the Department in relation
to financial management and accountability. The Audit Committee was functional and reviewed all plans and
progress for the 2013/14 financial year. The Department has a fully functional and effective Risk Management
Committee which meets Quarterly. All Chief Directors are members thereof including the Chief Risk Officer. The
purpose of the Risk Management function is to monitor the Department’s risk profile quarterly and to report this
to the Risk Management Committee.
2. Risk Management
Effective management of risk and opportunity is essential in the achievement of the Department‘s goals and
objectives. Risk Management has remained an integral part of the operations of the department during the year
under review. The Department has adopted the Gauteng Provincial Government Risk Management Framework
approach to Risk Management which means that each key risk in every business unit of the department
is included in a structured framework and systematic process of Risk Management. Risk assessment
reviews are conducted annually and specifically address strategic, operational, human resource, information
technology, financial and reputational risks as well as risks covered by the legislation on Health, Safety and
Environmental issues. The Risk Management unit is headed by the Chief Risk Officer and it now reports directly
to the Accounting Officer. The unit has been given access to Top Management and facilitate the process of
embedding Risk Management into day to-day activities and management processes within the department.
This includes the following activities:
• Conducting annual strategic risk assessments;
• Conducting operational risk assessments or revaluate key risks for all business units at-least annually;
• Regular reviews and update of risk registers and progress on management actions intended to mitigate or
reduce the identified risks;
• Development of contingency plans for high risks;
• Early identification of emerging risks and initiation of risk reduction or mitigation actions; and,
• Monitor and report on key risks affecting the department including any incidents or losses.
The Risk Management unit and line managers are accountable on risk mitigation to the Risk Management
Committee, even though the Head of Department is ultimately responsible for Risk management within the
Department.
The Head of Department is accountable to the Executive Authority regarding the effectiveness of the Risk
Management process.
87Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Risks are reported to the following oversight bodies
• The Audit Committee.
• Executive Management Team
• Risk Management Committee
• Gauteng Provincial Government Risk Management Forums
The risk identification process is performed at risk assessment workshops and includes all risks whether or not such risks are under the control of the department. Further methods of risk identification will include:
• Strategic Planning Reports
• Internal Audit Reports
• External Audit Reports
• Forensic/Investigation Reports
• Changes in the business environment
• Changes in external environment
• Best practices
• Actual loss data
• Historical data information
• Review of SCOPA reports
• Financial analysis and
• Similar risks occurring in other departments
Risks identified through Risk Management workshops are reported to the Risk Management unit on a quarterly
basis these reports are further reviewed by the risk management for quality purposes. The Risk Management
culture has improved significantly for the year under review as management is more committed with regard
to reporting on risks identified for their specific directorate as well as reporting emerging risk to the Risk
Management unit, this has ensured a continuous monitoring of identified risks as well as updating of alternative
mitigation actions with risks that require much detailed attention.
88 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3. Fraud and Corruption The Department has Fraud Prevention Policy and Prevention Plan in place. The plan was revised during the
year in line with the requirements of the Public Finance Management Act (PFMA) and the Treasury Regulations
(TR).
The main objectives of the Plan include the following:
• Developing a culture of ethical behaviour and instilling zero-tolerance to fraud and corruption;
• Sending a clear message to all employees and members of the public who interact with the department
that it is committed to fighting fraud and corruption;
• Improving accountability, efficiency and effective administration within the department and to deal
decisively with acts of fraud and corruption;
• Improving the application of systems, policies, procedures and regulations;
• Encouraging all employees and other stakeholders to strive towards the prevention and detection of fraud
and corruption impacting or having the potential to impact the department
The Department has implemented the GPG Whistleblowing Policy, with guidance for staff on anonymous
reporting. Reporting can be done through the departments’ Legal representative, Member of the Executive
Council, Public Service Commission, Public Protector, The Auditor General, The Gauteng Premiers’ Office,
National Gauteng Hotline by form of South African telephone numbers, or post, with the Chief Risk Officer as
the principal contact.
All employees and other stakeholders have the opportunity to make confidential disclosures about any
suspected impropriety and wrongdoing. Confidential disclosures can be made to the National Anti-Corruption
Hotline (NACH) which is maintained by the Public Service Commission (PSC). All reported cases are thoroughly
investigated and where necessary dealt with in terms of disciplinary code and procedures.
The Department is supported by the Gauteng Department of Finance: Forensic Services unit with regard to
dealing with all cases of fraud and corruption reported through to the department. The unit fulfils the department’s
objective of timeously investigating and reporting fraud and corruption and other related irregularities.
89Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
4. Minimising Conflict of InterestAll SMS members submitted their financial disclosures in the year under review. In addition, the MEC required
officials in Finance (Procurement and Financial Management), officials at the level of Assistant Directors and
above in the Department to complete the declaration of financial interest. Approval must also be obtained
before any remunerative work outside the public service can be undertaken by officials. In terms of the
Remunerative Work outside the Public Service Policy that governs this, an official cannot seek approval to do
work that would be in conflict with his/her job responsibility in the Department.
5. Code of Conduct The Department complies with the Public Service Code of Conduct. The Ethics Committee in the Department
has been established and an Ethics Officer has been appointed by the Head of Department. The Committee
meets once every quarter and part of its functions includes oversight, training, reporting and advice on ethics
related matters. The Ethics Committee carried out extensive awareness on Ethics and the Public Service Code
of Conduct in the year under report. Two ethics related policies were also amended and approved: the Policy
on Remunerative Work outside the Public Service and the Gifts and Donations Policy. In terms of the latter, the
Department has now put in place a no-gifts policy.
90 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
6. Occupational Health and Safety (HOS)Occupational health and safety is being addressed with the appointment of a Deputy Director: Safety and
Security. Plans are being put in place to revive the Department’s Occupational Health and Safety Committee
which includes organised labour. The Department makes sure it provides safety clothing for its employees who
are involved in high risk work. These are particularly those officials working in the Veterinary Services, Waste
Management and Compliance and Enforcement units.
7. Portfolio CommitteesThe Internal Audit function is carried out by Gauteng Audit Services within the Department of Finance. A risk
assessment was conducted by the Department which formed the basis for all the internal audit work done
during the year under review. The Internal Audit Plan was duly approved by the Audit Committee as part of their
oversight duties in ensuring that all high risk areas of the business are audited. In the 2013/14 financial year the
Gauteng Audit Services planned to perform 16 audits. All 16 audits were completed.
8. Internal Control UnitThe Department’s Annual Report for the year ended 31 March 2012 was rated among the Top 20 (position 11)
by the South African Institute of Government Auditors (SAIGA) during the 2013 Annual Public Sector Reporting
Awards in September 2013. The Annual Public Sector Reporting Awards recognize the pursuit of excellence
in annual reports published by all provincial and national departments. GDARD was the only other Department
in the Gauteng Province to make the Top 20 list.
91Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG PROVINCIAL GOVERNMENT
Report of the Audit Committee – Cluster 01
Gauteng Department of Agriculture and Rural Development
We are pleased to present our report for the financial year ended 31 March 2014.
Audit Committee and Attendance:The Audit Committee consists of the external Members listed hereunder and is required to meet a minimum of
at least two times per annum as per provisions of the Public Finance Management Act (PFMA). In terms of the
approved Terms of Reference (GPG Audit Committee Charter), six meetings were held during the current year,
i.e. four meetings for Quarterly Performance Reporting (financial and non-financial) and two meetings to review
and discuss the Annual Financial Statements and the Auditor-General Report.
Non-Executive Members:
Name of Member Attended Number of Meetings
Mr. Vishnu Naicker (Chairperson) 05
Ms. Tshidi Molala (Member) 05
Mr. Wayne Poggenpoel (Member) 06
Executive Members:
In terms of the GPG Audit Committee Charter, officials listed hereunder are obliged to attend meetings of the
Audit Committee:
Compulsory Attendees Number of Meetings Attended
Ms. Priscilla Pietersen (Acting Head of Department) 02
Ms. Thandeka Mbassa-Sigabi (Head of Department) 03 (Appointed March 2014)
Mr. Mfundo Hadebe (Acting Chief Financial Officer) 05
Mr. Bobby Johnston (Chief Risk Officer) 05
The Head of Department was appointed with effect from 01 March 2014 and the Department appointed an
Acting Head of Department in the interim. Therefore, the Audit Committee is satisfied that the Department
adhered to the provisions of the GPG Audit Committee Charter.
The Members of the Audit Committee met with the Senior Management of the Department and Internal Audit,
collectively to address risks and challenges facing the Departments. A number of in-committee meetings were
held to address control weaknesses and conflicts with the Department.
92 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Audit Committee ResponsibilityThe Audit Committee reports that it has complied with its responsibilities arising from section 38 (1) (a) of
the PFMA and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted 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 and Information and Communication Technology (ICT) GovernanceThe Audit Committee has observed that the overall control environment of the Department has continued to
improve during the year under review. Several deficiencies in the system of internal control and deviations
were reported in the Internal Audit Reports.
In the conduct of its duties, the Committee has, inter alia, reviewed the following:
• The effectiveness of the internal control systems;
• The operational risk areas covered in the scope of internal and external audits;
• The adequacy, reliability and accuracy of financial information provided to management and other users
of such information;
• Any accounting and auditing concerns identified as a result of internal and external audits;
• Compliance with legal, accounting and regulatory frameworks;
• The activities of the Internal Audit Function, including its annual work program, co-ordination with
external auditors, the reports of significant investigations and the response of Management to specific
recommendations;
• Where relevant, the independence and objectivity of external auditors.
The system of internal control applied by the Department over financial risk management is effective, efficient
and transparent. In line with the PFMA and the King III Report on Corporate Governance requirements, Internal
Audit provides the Committee and Management with assurance that the internal controls are appropriate and
effective.
This is achieved by means of the risk management process, as well as the identification of corrective actions
and suggested enhancements to the controls and processes, reports of the Internal Auditors, the Audit report
on the Annual Financial Statements and the management report of the Auditor General.
The following areas will continue to be high on the monitoring and evaluation agenda for the forthcoming
year in our continuous efforts to improving the internal control environment and ensuring sound financial
management:
• Human Resource Management;
• Expenditure Management;
• Financial Reporting Controls;
• Pre-determined Performance Objectives; and
• Asset Management
The Audit Committee also reviewed progress with respect to the ICT Governance in line with the ICT Framework
issued by the Department of Public Services and Administration. Although there were some significant
progress on the ICT internal control, the Audit Committee report its dissatisfaction with minimal progress made
with the implementation of the Disaster Recovery Plan and the Business Continuity Plan. This continued to be
a high risk for the Department.
93Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Internal Audit The Audit Committee is satisfied that Internal Audit plans addresses a clear alignment with the major risks,
adequate information systems coverage, a good balance between different categories of audits, i.e. risk-
based, mandatory, performance and follow-up audits.
The Audit Committee has noted considerable improvement in the communication between the Executive
Management, the Auditor-General and the Internal Audit Function, which has strengthened the Corporate
Governance initiatives.
The Audit Committee wishes to stress that in order for the Internal Audit Function to operate at optimal level as
expected by the Audit Committee, it requires additional human resources and skills.
Risk Management
Progress on Departmental risk management was reported to the Audit Committee on a quarterly basis. The
Audit Committee is satisfied that the actual management of risk is receiving attention, although there are
areas that still require improvement. Management should take full responsibility for the entire Enterprise
Risk Management (ERM) Process and continue to support the Chief Risk Officer to even further enhance
the management of risk within the Department. The Department is further advised to appoint an external
Chairperson to its Risk Management Committee to assist with ERM implementation and improvement of its
risk maturity.
Forensic Investigations
No significant forensic investigations reported for the Department during the financial year under review.
The quality of quarterly reports submitted in terms of the PFMA and the Division of Revenue Act
The Audit Committee is satisfied with the content and quality of financial and non-financial quarterly reports
prepared and issued by the Accounting Officer of the Department during the year under review and that the
reports were in compliance with the statutory reporting framework.
Evaluation of Financial Statements
The Audit Committee has:
• Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report,
with the Auditor-General and the Accounting Officer;
• Reviewed the Auditor-General’s Management Report and Management’s response thereto;
• Reviewed the Department’s compliance with legal and regulatory provisions; and
• Reviewed significant adjustments resulting from the audit.
• Reviewed the Departments Report on Performance Information.
The Committee has once again taken note of the concerns of the Auditor-General and accepts that there is
further room for improvement in the accounting function and elements of the internal control environment. As
in previous years the Committee will ensure that the internal audit plan addresses these issues and will monitor
the implementation of the recommendations of the Auditor-General’s Report.
94 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
The Audit Committee has once again noted the constraints to achieve certain targets as identified by Management. These constraints continue to adversely impact upon the Department achieving certain objectives.
The monitoring of the Department’s performance is a key function of Management, Executive Management
and the Executive Authority. The Committee has no direct line responsibility for the Department’s performance
measurement. However, the Committee has ensured, principally through the internal audit function, that the
systems of performance measurement and reporting, as well as the systems of internal control that underpin
the performance management framework of the Department, remain robust and are addressed routinely
in the audit plans. The Committee also obtained assurance from management and internal audit that the
Department’s performance management system adequately and effectively report appropriate and relevant
information.
One-on-One Meeting with the Accounting Officer
The Audit Committee has met with the Accounting Officer for the Department to address unresolved issues.
One-on-One Meetings with the Executive Authority
The Audit Committee has met with the Executive Authority for the Entity to apprise the MEC on the performance
of the Department and highlighted significant issues that required the MEC’s intervention.
Auditor-General South Africa
The Audit Committee has met with the Office of the Auditor-General South Africa to ensure that there are no
unresolved issues
Conclusion
The Committee wishes to thank the Executive Authority, the Head of Department, Senior Management, Treasury,
Internal Audit and the Secretariat for their inputs and commitment shown during the year. I would further like
to thank all members of the Committee for their contribution and the professional way in which meetings were
conducted.
…………………………………………
Mr. Vishnu Naicker
Chairperson of the Audit Committee
Date: 31 July 2014
95Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Part D: HUMAN RESOURCE MANAGEMENT
96 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
1. LEGISLATURE THAT GOVERNS HR MANAGEMENT
The information provided in this part is prescribed by the Public Service Regulations (Chapter 1, Part
III J.3 and J.4).
2. INTRODUCTION
• Overview of HR matters at the department
The Department continued with the support, skills development where required and involvement
of line managers on people management processes. The Department generally complied on HR
regulated aspects but was found to be inadequate on some of the key performance areas in MPAT,
these aspects are being addressed through action plans.
The relationship between the Department and Organised Labour is stable and the departmental
labour forum meets regularly, which contributes towards better service delivery and labour peace.
• Set HR priorities for the year under review and the impact of these priorities
HR Planning and Monitoring: The development and approval of the human resources plan has
assisted the Department to be focused in the functioning of the Department. The quarterly and
annual targets were achieved except for the finalisation of the review of the organisational structure.
Policy Review and Development: The process of reviewing key processes within support services
will be continued in the following financial year.
• Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce
The implementation of the Occupation Specific Dispensation (OSD) assisted the Department in
attracting and retaining employees in some of the scarce and critical skills areas. However, challenges
in terms of registration with the professional bodies affected recruitment posts of Scientists.
Through the external bursary scheme, financial assistance was offered to 9 bursars as a means of
acquiring relevant scarce occupational skills in anticipation of current and future Departmental needs
and to address and meet representivity targets.
The Department participated in career days of schools and universities, youth days, youth camps
and exhibitions to cultivate interest in careers within the scarce skills categories and to promote the
Public Service, GPG and GDARD as an employer of choice offering exciting and lucrative career
prospects. During the period under review, seven career awareness sessions were conducted, one
targeted students with disability at the Adelaide Tambo School for Persons Living with Disabilities.
In the financial year the Department has appointed 52 interns, of which 20 were placed as a result of
a collaborative project between GDARD and the Gauteng City Region Academy.
Internal capacity building initiatives like formal training, study tours and skills programmes are used
develop employees to career progression.
97Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Employee performance management framework
The application and implementation of the framework was identified as a gap in the Department. In
order to address this, refresher sessions were conducted to ensure common understanding and
application.
Despite the application challenges, the Department managed to ensure compliance to the regulatory
framework in the utilisation of the performance management budget and payments were done within
the financial year.
• Employee wellness programmes
The Department offers a wide range of employee wellness programmes including the support on HIV
and AIDS. Approximately 23 peer educators were trained.
A total of 03 wellness sessions were conducted for the year, reaching internal employees. The
Department utilises ICAS for psycho-social services and offers face to face and telephonic counselling
services for employees. Through partnership with the University of Witwatersrand, the Department
has four student social workers, who are providing face-to-face counselling to employees as part of
their practicals.
Furthermore regular articles on various health and wellness topics are circulated to employees.
• Highlight achievements
o The appointment of the Head of Department as this will stabilise leadership and governance in the Department
o The Department hosted a full wellness week for internal staff reaching all officeso The provision of counselling services by student social workers has assisted in augmenting
the capacity within Employee Health and Wellness directorateo The Department exceeded the 5% National target and appointed 6% of the staff
establishment on internships
• Challenges faced by the department
o The reliance on the Gauteng Department of Finance for the implementation of key human resources processes like appointments, leave management and terminations affects turnaround times
o Finalisation of disciplinary cases and grievance within the national normo The alignment of the departmental structure to the strategic plan and the programme
budget structures of the National Departments. o The filling of the Chief Financial Officer post due to unavailability of suitable candidateso The Department did not meet its employment equity targets; 50% females on SMS level
and no representation of people with disability at this level, however the department has achieved 2.6% of people with disability across other levels.
o Insufficient funding to implement employee wellness programmes continues to be a challenge in the Department.
98 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Future HR plans /goals
o Improve the turnaround time in resolving disciplinary cases and grievances to align with the national norm
o Finalise the review and alignment of the organizational structureo Better establishment administration and management (including abolishment of unfunded
posts)o Review of current personnel budget in order to prioritise the filling of vacancies within the
confines of the approved budgeto Improved human resource planningo Development of a talent management strategy o Revise HR Delegations to improve turnaround times and empower managers so that they
can be made more accountable
99Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3. HUMAN RESOURCE OVERSIGHT STATISTICS
3.1. Personnel related expenditure by programme for the period 1 April 2013 to 31 March 2014
TABLE 3.1.1 - Personnel expenditure by programme
Programme Total Expenditure
(R’000)
Personnel Expenditure
(R’000)
Training Expenditure
(R’000)
Professional and Special
Services (R’000)
Personnel Expenditure
as a % of Total
Expenditure
Average Compensation of Employees Cost per Employee
(R’000)
Administration 155,626 87,892 0 0 56.5 377
Agriculture and Rural Development
253,151 105,329
0 0
41.6 343
Environmental Affairs 141,964 105,364
0 074.2 334
Total 550,741 298,585 0 0 54.2 349
TABLE 3.1.2 - Personnel costs by salary band for the period 1 April 2013 to 31 March 2014
Salary Band Personnel Expenditure
(R’000)
% of total personnel
cost
Number of Employees
Average Compensation Cost
per Employee (R)
Lower skilled (Levels 1-2) 6,704 2.1 50 134,080
Skilled (Levels 3-5) 16,283 5.2 105 155,076
Highly skilled production (Levels 6-8)
92,844 29.4 350 265,269
Highly skilled supervision (Levels 9-12)
120,882 38.3 251 481,602
Senior management (Levels 13-16)
36,725 11.6 41 895,732
Contract (Levels 6-8) 12,797 4.1 54 236,981
Contract (Levels 9-12) 2,038 0.6 4 509,500
Contract (Levels 13-16) 160 0.1 0 0
Periodical Remuneration 7,333 2.3 281 26,096
Abnormal Appointment 2,819 0.9 56 50,339
Total 298,585 94.6 1192 250,491
100 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.1.3 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Programme for the period 1 April 2013 to 31 March 2014
Programme Salaries Overtime Home Owners Allowance
Medical Aid
Salaries (R’000)
Salaries as % of Personnel
Cost
Overtime (R’000)
Overtime as % of
Personnel Cost
HOA (R’000)
HOA as % of
Personnel Cost
Medical Ass. (R’000) Medical Ass. as
% of Personnel
Cost
Administration 58,488 62.8 104 0.1 2,511 2.7 3,715 4
Agriculture and Rural Development
74,991 64.5 0 0 2,461 2.1 4,222 3.6
Environmental Affairs
72,581 68.3 1,465 1.4 3,359 3.2 4,404 4.1
TOTAL 206,060 65.3 1,569 0.5 8,331 2.6 12,341 3.9
TABLE 3.1.4 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Band for the period 1 April 2013 to 31 March 2014
Salary bands
Salaries Overtime Home Owners Allowance Medical Aid
Salaries (R’000)
Salaries as % of Personnel
Cost
Overtime (R’000)
Overtime as % of
Personnel Cost
HOA (R’000)
HOA as % of
Personnel Cost
Medical Ass. (R’000)
Medical Ass. as % of Personnel
Cost
Lower skilled (Levels 1-2) 3,058 45.5 483 7.2 531 7.9 647 9.6
Skilled (Levels 3-5) 9,424 57.5 488 3 1,050 6.4 1,513 9.2
Highly skilled production (Levels 6-8) 64,658 64.7 490 0.5 3,158 3.2 4,932 4.9
Highly skilled supervision (Levels 9-12) 87,848 68.3 108 0.1 2,149 1.7 4,149 3.2
Senior management (Levels 13-16) 27,769 74.1 - 0 898 2.4 700 1.9
Contract (Levels 6-8) 8,647 61.3 - 0 441 3.1 400 2.8
Contract (Levels 9-12) 1,717 72.7 - 0 104 4.4 - 0
Contract (Levels 13-16) 130 81.3 - 0 - 0 - 0
Periodical Remuneration - 0 - 0 - 0 - 0
Abnormal Appointment 2,809 99.2 - 0 - 0 - 0
TOTAL 206,060 65.3 1,569 0.5 8,331 2.6 12,341 3.9
101Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.2. EMPLOYMENT AND VACANCIES
TABLE 3.2.1 Employment vacancies by programme as at 31 March 2014
Programme Number of Posts approved on the
establishment
Number of Posts Filled
Vacancy Rate Number of employees
additional to the establishment
Administration - Permanent 281 233 17.1 0
Agriculture and Rural Development - Permanent 299 281 6 26
Environmental Affairs - Permanent 423 315 25.5 0
TOTAL 1003 829 17.3 26
Notes: The Department has an approved staff establishment of 1003. Cognizance should be taken of the following:
66 posts have been frozen due to lack of funding. These posts have not been accounted for under the approved
establishment on the table above.
TABLE 3.2.2 Employment and vacancies by salary band as at 31 March 2014
Salary Band Number of Posts approved on the
establishment
Number of Posts Filled
Vacancy Rate Number of employees
additional to the establishment
Lower skilled (Levels 1-2), Permanent
86 56 34.9 0
Skilled (Levels 3-5), Permanent
111 106 4.5 0
Highly skilled production (Levels 6-8), Permanent
455 381 16.3 0
Highly skilled supervision (Levels 9-12), Permanent
309 248 19.7 0
Senior management (Levels 13-16), Permanent
42 38 9.5 1
Contract (Levels 6-8), Permanent
0 0 0 25
Contract (Levels 9-12), Permanent
0 0 0 0
TOTAL 1003 829 17.3 26
102 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.2.3 Employment and vacancies by critical occupation as at 31 March 2014
Critical Occupations Number of Posts approved on the
establishment
Number of Posts Filled
Vacancy Rate Number of employees
additional to the establishment
Administrative related, Permanent 47 41 12.8 0
Agricul animal oceanography forestry & other scien, Permanent
52 40 23.1 24
Agriculture related, Permanent 174 130 25.3 0
Architects town and traffic planners, Permanent 2 2 0 0
Auxiliary and related workers, Permanent 2 1 50 0
Biochemistry pharmacol. zoology & life scie.techni, Permanent
25 23 8 0
Building and other property caretakers, Permanent
12 10 16.7 0
Bus and heavy vehicle drivers, Permanent 2 2 0 0
Chemical and physical science technicians, Permanent
20 20 0 0
Cleaners in offices workshops hospitals etc., Permanent
16 14 12.5 0
Client inform clerks(switchb recept inform clerks), Permanent
5 4 20 0
Communication and information related, Permanent
5 4 20 0
Computer programmers., Permanent 5 2 60 0
Computer system designers and analysts., Permanent
2 2 0 0
Conservation labourers, Permanent 76 60 21.1 0
Farm hands and labourers, Permanent 6 6 0 0
Farming forestry advisors and farm managers, Permanent
4 3 25 0
Finance and economics related, Permanent 4 2 50 0
Financial and related professionals, Permanent 12 11 8.3 0
Financial clerks and credit controllers, Permanent
21 18 14.3 0
General legal administration & rel. professionals, Permanent
3 3 0 0
Head of department/chief executive officer, Permanent
5 5 0 1
Horticulturists foresters agricul.& forestry techn, Permanent
24 24 0 0
Human resources & organisat developm & relate prof, Permanent
23 20 13 0
Human resources clerks, Permanent 6 5 16.7 0
Human resources related, Permanent 6 6 0 0
Information technology related, Permanent 5 5 0 0
Language practitioners interpreters & other commun, Permanent
15 14 6.7 0
Legal related, Permanent 4 3 25 0
Librarians and related professionals, Permanent
1 1 0 0
Library mail and related clerks, Permanent 6 6 0 0
103Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Light vehicle drivers, Permanent 4 3 25 0
Logistical support personnel, Permanent 4 4 0 0
Material-recording and transport clerks, Permanent
16 16 0 0
Messengers porters and deliverers, Permanent 5 4 20 0
Natural sciences related, Permanent 68 52 23.5 0
Nature conservation and oceanographical rel.techni, Permanent
99 68 31.3 0
Other administrat & related clerks and organisers, Permanent
76 67 11.8 0
Other administrative policy and related officers, Permanent
16 14 12.5 1
Other information technology personnel., Permanent
11 10 9.1 0
Other occupations, Permanent 1 1 0 0
Safety health and quality inspectors, Permanent
1 1 0 0
Secretaries & other keyboard operating clerks, Permanent
34 30 11.8 0
Senior managers, Permanent 38 32 15.8 0
Statisticians and related professionals, Permanent
1 1 0 0
Trade/industry advisers & other related profession, Permanent
1 1 0 0
Veterinarians, Permanent 30 30 0 0
Veterinary assistants, Permanent 8 8 0 0
TOTAL 1003 829 17.3 26
3.3. FILLING OF SMS POSTS
TABLE 3.3.1 SMS post information as at 31 March 2014
SMS level Total number of funded SMS
posts
Total number of SMS posts
filled
% of SMS posts filled
Total number of SMS posts
vacant
% of SMS posts vacant
Director General/Head of Department
1 1 100 0 0
Salary level 15 2 2 100 0 0
Salary level 14 11 9 9 2 18
Salary level 13 28 27 96.5 1 3.5
Total 42 39 93 3 7
104 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.3.2 SMS post information as at 30 September 2013
SMS level Total number of funded SMS
posts
Total number of SMS posts
filled
% of SMS posts filled
Total number of SMS posts
vacant
% of SMS posts vacant
Director General/Head of Department
1 0 0 1 100
Salary level 15 2 2 100 0 0
Salary level 14 11 9 82 2 18
Salary level 13 28 27 96.5 1 3.5
Total 42 38 90.5 4 9.5
TABLE 3.3.3 Advertising and filling of SMS posts for the period 1 April 2013 to 31 March 2014
Advertising Filling of posts
SMS level Number of vacancies per level advertised in 6 months
of becoming vacant
Number of vacancies per level filled in 6
months of becoming vacant
Number of vacancies per level not filled in 6 months but filled
in 12 months
Director General/Head of Department
1 0 1
Salary level 15 0 0 0
Salary level 14 2 0 0
Salary level 13 0 0 0
Total 3 0 1
TABLE 3.3.4 Reasons for not having complied with the filling of funded vacant SMS posts – Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2013 to 31 March 2014
Reason for vacancies not advertised within six months
The one level 13 post was not advertised due to lack of funding to fill the post
Reason for vacancies not filled within 12 months
The Department struggled to fill the positions through the normal processes and head hunting was embarked upon for the filling of the following posts;
Chief Financial Officer - Headhunting is still being pursued
Head of Department – Headhunting was successful
105Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2013 to 31 March 2014
Vacancies not advertised within six months
None
Vacancies not filled within 12 months
None
3.4. JOB EVALUATION
TABLE 3.4.1 Job evaluation by salary band for the period 1 April 2013 to 31 March 2014
Salary Band Number of Posts
approved on the
establishment
Number of Jobs
Evaluated
% of Posts Evaluated
Number of Posts
Upgraded
% of Upgraded
Posts Evaluated
Number of Posts
Downgraded
% of Downgraded
Posts Evaluated
Lower skilled (Levels 1-2)
86 0 0 0 0 0 0
Contract (Levels 6-8)
0 0 0 0 0 0 0
Contract (Levels 9-12)
0 0 0 0 0 0 0
Skilled (Levels 3-5)
111 46 43 34 73.9 0 0
Highly skilled production (Levels 6-8)
455 58 12.7 0 0 0 0
Highly skilled supervision (Levels 9-12)
309 0 0 0 0 0 0
Senior Management Service Band A
28 0 0 0 0 0 0
Senior Management Service Band B
10 0 0 0 0 0 0
Senior Management Service Band C
2 0 0 0 0 0 0
Senior Management Service Band D
2 0 0 0 0 0 0
TOTAL 1003 104 10.4 34 32.7 0 0
106 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.4.2 - Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2013 to 31 March 2014
Beneficiaries African Asian Coloured White Total
Female 13 0 0 0 13
Male 7 1 0 0 8
Total 20 1 0 0 21
Employees with a Disability
0 0 0 0 0
Note: No job evaluations were conducted for the year under review
TABLE 3.4.3 - Employees with salary level higher than those determined by job evaluation by occupation for the period 1 April 2013 to 31 March 2014
Occupation Number of Employees
Job Evaluation
Level
Remuneration Level
Reason for Deviation
Number of employees in the
department
Various 9 5 6 Grade progression through resolution 3 of 2009
Total 9 5 5
Percentage of Total Employment
1.1 819
Note: No job evaluations were conducted for the year under review
TABLE 3.4.4 - Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2013 to 31 March 2014
Beneficiaries African Asian Coloured White Total
Female 3 0 0 5 8
Male 1 0 0 0 1
Total 4 0 0 5 9
Employees with a Disability 0 0 0 0 0
** No job evaluations were conducted for the year under review
Total number of employees whose remuneration exceeded the grade determined by job evaluation in 2013/14
9
107Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.5. EMPLOYMENT CHANGES
TABLE 3.5.1 Annual turnover rates by salary band for the period 1 April 2013 to 31 March 2014
Salary Band Number of employees at beginning of period 1 April
2013
Appointments and transfers
into the department
Terminations and transfers
out of the department
Turnover Rate
Lower skilled (Levels 1-2), Permanent 56 0 1 1.8
Skilled (Levels 3-5), Permanent 106 2 6 5.7
Highly skilled production (Levels 6-8), Permanent 323 42 6 1.5
Highly skilled supervision (Levels 9-12), Permanent
264 5 14 5.3
Senior Management Service Band A, Permanent 27 0 0 0
Senior Management Service Band B, Permanent 9 0 0 0
Senior Management Service Band C, Permanent 2 0 0 0
Senior Management Service Band D, Permanent 1 0 0 0
Contract (Levels 6-8), Permanent 53 4 0 0
Contract (Levels 9-12), Permanent 4 0 0 0
Contract (Band D), Permanent 1 1 1 100
TOTAL 846 54 28 3.2
TABLE 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2013 to 31 March 2014
Occupation Number of employees at Beginning of period (April 2013)
Appointments and transfers into the department
Terminations and transfers out of the department
Turnover Rate
Administrative related, Permanent 35 0 3 8.6
Agricul animal oceanography forestry & other scien, Permanent 82 8 3 3.7
Agriculture related, Permanent 75 19 0 0
Architects town and traffic planners, Permanent 1 0 0 0
Auxiliary and related workers, Permanent 12 0 0 0
Biochemistry pharmacol. zoology & life scie.techni, Permanent 17 0 0 0
Building and other property caretakers, Permanent 9 0 1 11.1
Bus and heavy vehicle drivers, Permanent 6 0 0 0
Chemical and physical science technicians, Permanent 23 0 1 4.3
Cleaners in offices workshops hospitals etc., Permanent 13 0 0 0
Client inform clerks(switchb recept inform clerks), Permanent 4 0 0 0
Communication and information related, Permanent 7 0 0 0
Computer programmers., Permanent 3 2 0 0
108 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Computer system designers and analysts., Permanent 9 0 0 0
Conservation labourers, Permanent 73 0 3 4.1
Engineering sciences related, Permanent 1 1 1 100
Farm hands and labourers, Permanent 6 0 0 0
Farming forestry advisors and farm managers, Permanent 6 1 0 0
Finance and economics related, Permanent 5 0 0 0
Financial and related professionals, Permanent 11 0 0 0
Financial clerks and credit controllers, Permanent 9 1 0 0
General legal administration & rel. professionals, Permanent 4 0 1 25
Head of department/chief executive officer, Permanent 4 0 1 25
Horticulturists foresters agricul.& forestry techn, Permanent 28 0 1 3.6
Human resources & organisat developm & relate prof, Permanent 22 0 0 0
Human resources clerks, Permanent 12 0 2 16.7
Human resources related, Permanent 11 1 0 0
Information technology related, Permanent 4 0 0 0
Language practitioners interpreters & other commun, Permanent 12 0 0 0
Librarians and related professionals, Permanent 1 0 0 0
Library mail and related clerks, Permanent 11 0 1 9.1
Light vehicle drivers, Permanent 3 0 0 0
Logistical support personnel, Permanent 7 0 0 0
Material-recording and transport clerks, Permanent 5 0 0 0
Messengers porters and deliverers, Permanent 9 0 1 11.1
Natural sciences related, Permanent 49 2 3 6.1
Nature conservation and oceanographical rel.techni, Permanent 62 12 1 1.6
Other administrat & related clerks and organisers, Permanent 67 2 1 1.5
Other administrative policy and related officers, Permanent 14 1 0 0
Other information technology personnel., Permanent 3 0 0 0
Other occupations, Permanent 23 0 0 0
Safety health and quality inspectors, Permanent 1 0 0 0
Secretaries & other keyboard operating clerks, Permanent 35 0 2 5.7
Senior managers, Permanent 22 1 0 0
Trade/industry advisers & other related profession, Permanent 1 0 0 0
Veterinarians, Permanent 20 3 0 0
Veterinary assistants, Permanent 9 0 1 11.1
TOTAL 846 54 28 3.2
109Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.5.3 Reasons why staff left the department for the period 1 April 2013 to 31 March 2014
Termination Type Number % of Total Resignations
Death 2 7.5
Resignation 20 71.5
Expiry of contract 0 0
Discharged due to ill health 0 0
Dismissal-misconduct 0 0
Retirement 6 21
TOTAL 28 100
Total number of employees who left as a % of total employment 3.2%
TABLE 3.5.4 - Promotions by critical occupation for the period 1 April 2013 to 31 March 2014
Occupation Employment at Beginning
of Period (April 2013)
Promotions to another Salary
Level
Salary Level Promotions
as a % of employees by
occupation
Progressions to another notch within salary
level
Notch progression as a % of
employees by occupation
Administrative related 35 2 5.7 23 65.7
Agricul animal oceanography forestry & other scien 82 8 9.8 28 34.1
Agriculture related 75 1 1.3 60 80
Architects town and traffic planners 1 0 0 1 100
Auxiliary and related workers 12 0 0 12 100
Biochemistry pharmacol. zoology & life scie.techni 17 0 0 16 94.1
Building and other property caretakers
9
0 0 9 100
Bus and heavy vehicle drivers 6 0 0 6 100
Chemical and physical science technicians 23 0 0 6 26.1
Cleaners in offices workshops hospitals etc. 13 0 0 8 61.5
Client inform clerks(switchb recept inform clerks) 4 0 0 4 100
Communication and information related 7 0 0 5 71.4
Computer programmers. 3 0 0 1 33.3
Computer system designers and analysts. 9 0 0 8 88.9
Conservation labourers 73 3 4.1 68 93.2
Engineering sciences related 1 0 0 0 0
Farm hands and labourers 6 0 0 7 116.7
110 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Farming forestry advisors and farm managers 6 0 0 4 66.7Finance and economics related 5 0 0 3 60Financial and related professionals 11 0 0 10 90.9Financial clerks and credit controllers 9 0 0 6 66.7General legal administration & rel. professionals 4 0 0 3 75Head of department/chief executive officer 4 1 25 3 75Horticulturists foresters agricul.& forestry techn 28 4 14.3 15 53.6Human resources & organisat developm & relate prof 22 0 0 20 90.9
Human resources clerks 12 2 16.7 8 66.7
Human resources related 11 0 0 8 72.7
Information technology related 4 0 0 4 100Language practitioners interpreters & other commun 12 0 0 11 91.7
Legal related 0 0 0 1 0Librarians and related professionals 1 0 0 1 100
Library mail and related clerks 11 0 0 9 81.8
Light vehicle drivers 3 0 0 3 100
Logistical support personnel 7 0 0 5 71.4Material-recording and transport clerks 5 0 0 5 100Messengers porters and deliverers 9 0 0 9 100
Natural sciences related 49 5 10.2 25 51Nature conservation and oceanographical rel.techni 62 1 1.6 21 33.9Other administrat & related clerks and organisers 67 4 6 59 88.1Other administrative policy and related officers 14 0 0 13 92.9Other information technology personnel. 3 0 0 0 0
Other occupations 23 0 0 18 78.3Safety health and quality inspectors 1 0 0 1 100Secretaries & other keyboard operating clerks 35 0 0 31 88.6
Senior managers 22 1 4.5 17 77.3Statisticians and related professionals 0 1 0 0 0Trade/industry advisers & other related profession 1 0 0 1 100
Veterinarians 20 0 0 15 75
Veterinary assistants 9 0 0 8 88.9
TOTAL 846 33 3.9 599 70.8
111Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.5.5 - Promotions by salary band for the period 1 April 2013 and 31 March 2014
Salary Band Employment at Beginning
of Period (April 2013)
Promotions to another
Salary Level
Salary bands promotions
as a % of employees by
salary level
Progressions to another
notch within Salary Level
Notch progressions
as a % of employees by salary band
Lower skilled (Levels 1-2), Permanent 56 0 0 49 87.5
Skilled (Levels 3-5), Permanent 106 5 4.7 99 93.4
Highly skilled production (Levels 6-8), Permanent 323 6 1.9 223 69
Highly skilled supervision (Levels 9-12), Permanent 264 12 4.5 195 73.9
Senior management (Levels 13-16), Permanent 39 2 5.1 31 79.5
Contract (Levels 6-8), Permanent 53 8 15.1 1 1.9
Contract (Levels 9-12), Permanent 4 0 0 1 25
Contract (Levels 13-16), Permanent 1 0 0 0 0
TOTAL 846 33 3.9 599 70.8
3.6. EMPLOYMENT EQUITY
TABLE 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2014
Occupational Categories
Male Female TOTAL
African Coloured Indian White African Coloured Indian White
Legislators, senior officials and managers, Permanent 9 2 3 2 9 1 0 0 26
Professionals, Permanent 147 1 1 11 126 0 1 6 293
Technicians and associate professionals, Permanent 120 1 4 15 99 3 3 18 263
Clerks, Permanent 34 1 1 0 83 5 4 9 137
Plant and machine operators and assemblers, Permanent 8 0 0 1 0 0 0 0 9
Elementary occupations, Permanent 95 2 0 4 23 1 0 0 125
Other, Permanent 0 0 0 0 2 0 0 0 2
TOTAL 413 7 9 33 342 10 8 33 855
Employees with disability 3 0 0 2 1 0 0 0 6
112 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.6.2 - Total number of Employees (including employees with disabilities) in each of the following occupational bands as at 31 March 2014
Occupational Bands Male Female Total
African Coloured Indian White African Coloured Indian White
Top Management, Permanent 1 0 0 0 2 0 0 0 3Senior Management, Permanent 12 2 3 4 13 1 0 2 37Professionally qualified and experienced specialists and mid-management, Permanent 115 2 4 20 95 3 1 11 251Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 141 0 1 9 166 6 7 19 349Semi-skilled and discretionary decision making, Permanent 70 2 1 0 31 0 0 1 105Unskilled and defined decision making, Permanent 41 1 0 0 10 0 0 0 52Contract (Professionally qualified), Permanent 3 0 0 0 1 0 0 0 4Contract (Skilled technical), Permanent 30 0 0 0 24 0 0 0 54
TOTAL 413 7 9 33 342 10 8 33 855
TABLE 3.6.3 – Recruitment for the period 1 April 2013 to 31 March 2014
Occupational Bands Male Female Total
African Coloured Indian White African Coloured Indian White
Professionally qualified and experienced specialists and mid-management, Permanent 1 0 0 0 1 0 0 0 2
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 41 0 0 0 35 0 1 0 77
Semi-skilled and discretionary decision making, Permanent 3 0 0 0 5 0 0 0 8
Contract (Skilled technical), Permanent 0 0 0 0 0 0 0 0 0
TOTAL 45 0 0 0 41 0 1 0 87
113Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.6.4 – Promotions for the period 1 April 2013 to 31 March 2014
Occupational Bands Male Female Total
African Coloured Indian White African Coloured Indian White
Top Management, Permanent
0 0 0 0 0 0 0 0 0
Senior Management, Permanent
0 0 0 0 0 0 0 0 0
Professionally qualified and experienced specialists and mid-management, Permanent
2 0 0 0 3 0 0 1 6
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent
2 0 0 0 6 0 0 0 8
Semi-skilled and discretionary decision making, Permanent
2 0 0 0 5 0 0 0 7
Unskilled and defined decision making, Permanent
2 0 0 0 1 0 0 0 3
Contract (Professionally qualified), Permanent
0 0 0 0 0 0 0 0 0
Contract (Skilled technical), Permanent
0 0 0 0 0 0 0 0 0
TOTAL 8 0 0 0 15 1 24
Employees with disabilities
0 0 0 0 0 0 0 0 0
TABLE 3.6.5 – Terminations for the period 1 April 2013 to 31 March 2014
Occupational Bands Male Female Total
African Coloured Indian White African Coloured Indian White
Professionally qualified and experienced specialists and mid-management, Permanent 6 0 1 0 4 0 0 3 14
Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 3 0 0 0 1 0 0 1 5
Semi-skilled and discretionary decision making, Permanent 5 0 0 0 2 0 0 0 7
Unskilled and defined decision making, Permanent 1 0 0 0 0 0 0 0 1
Contract (Top Management), Permanent 0 0 0 0 1 0 0 0 1
TOTAL 15 0 1 0 8 0 0 4 28
People with disabilities 0 0 0 0 1 0 0 3 4
114 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.6.6 - Disciplinary action for the period 1 April 2013 to 31 March 2014
Disciplinary action Male Female Total
African Coloured Indian White African Coloured Indian White
TOTAL 4 0 0 1 2 0 1 0 8
TABLE 3.6.7 - Skills Development for the period 1 April 2013 to 31 March 2014
Occupational categories
Male Female Total
African Coloured Indian White African Coloured Indian White
Legislators, senior officials and managers
14 3 2 5 10 0 0 1 35
Professionals 31 1 0 4 24 2 1 1 64
Technicians and associate professionals
128 0 0 2 131 1 5 5 272
Clerks 13 1 0 32 1 0 0 47
Elementary occupations 77 1 0 0 27 0 0 0 105
Total 263 5 3 11 224 4 6 7 523
Employees with disabilities 5 0 0 4 1 0 1 1 12
3.7. SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS
TABLE 3.7.1 Signing of performance agreements by SMS members on 31 May 2013
SMS level Total number of funded SMS
posts
Total number of SMS
members
Total number of signed
performance agreements
Signed performance
agreements as % of total SMS
members
Director General/Head of Department 1 0 0 0
Salary level 15 2 2 2 100
Salary level 14 11 9 9 100
Salary level 13 28 27 27 100
Total 42 38 38 100%
115Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.7.2 Reasons for not having concluded performance agreements for all SMS members on 31 May 2013
Reasons
There were four vacant posts namely;
Head of Department (Level 16)
Chief Director Sustainable Use of Environment (Level 14)
Chief Financial Officer (Level 14)
Director Air Quality Management (Level 13)
TABLE 3.7.3 Disciplinary steps taken against SMS members for not having concluded performance agreements for all SMS members on 31 May 2013
Not applicable as there was no non-compliance
3.8. PERFORMANCE REWARDS
TABLE 3.8.1 - Performance Rewards by race, gender and disability for the period 1 April 2013 to 31 March 2014
Race and gender Beneficiary Profile Cost
Number of Beneficiaries
Number of employees
% of total within group
Cost (R’000) Average cost per employee (R)
African, Female 46 341 13.5 613 13,316
African, Male 50 410 12.2 608 12,160
Asian, Female 2 8 25 29 14,629
Asian, Male 1 9 11.1 7 6,847
Coloured, Female 4 10 40 49 12,281
Coloured, Male 1 7 14.3 7 7,487
White, Female 52 359 14.5 691 13,287
White, Male 52 426 12.2 622 11,968
Employees with a disability 6 33 18.2 102 17,008
TOTAL 6 31 19.4 98 16,356
116 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.8.2 - Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2013 to 31 March 2014
Salary Band Beneficiary Profile Cost
Number of Beneficiaries
Number of employees
% of total within salary
band
Cost (R’000) Average cost per employee (R)
Lower skilled (Levels 1-2) 4 50 8 19 4,750
Skilled (Levels 3-5) 17 105 16.2 114 6,706
Highly skilled production (Levels 6-8) 54 350 15.4 628 11,630
Highly skilled supervision (Levels 9-12) 39 251 15.5 652 16,718
Contract (Levels 6-8) 0 54 0 0 0
Contract (Levels 9-12) 0 4 0 0 0
Periodical Remuneration 0 281 0 0 0
Abnormal Appointment 0 56 0 0 0
TOTAL 114 1151 9.9 1413 12395
TABLE 3.8.3 - Performance Rewards by Critical Occupation for the period 1 April 2013 to 31 March 2014
Critical Occupations Beneficiary Profile Cost
Number of beneficiaries
Number of employees
% of total within
occupation
Cost (R’000) Average cost per employee
(R)
Administrative related 9 34 26.5 169 18,778
Agricul animal oceanography forestry & other scien 8 83 9.6 105 13,125
Agriculture related 13 89 14.6 202 15,538
Architects town and traffic planners 0 1 0 0 0
Auxiliary and related workers 2 12 16.7 24 12,000
Biochemistry pharmacol. zoology & life scie.techni 5 17 29.4 71 14,200
Building and other property caretakers 3 7 42.9 17 5,667
Bus and heavy vehicle drivers 2 6 33.3 18 9,000
Chemical and physical science technicians 5 20 25 61 12,200
Cleaners in offices workshops hospitals etc. 1 13 7.7 6 6,000
Client inform clerks(switchb recept inform clerks) 0 3 0 0 0
Communication and information related 2 7 28.6 27 13,500
Computer programmers. 0 4 0 0 0
Computer system designers and analysts. 0 9 0 0 0
Conservation labourers 9 70 12.9 53 5,889
117Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Engineering sciences related 0 2 0 0 0
Farm hands and labourers 0 6 0 0 0
Farming forestry advisors and farm managers 1 7 14.3 14 14,000
Finance and economics related 0 5 0 0 0
Financial and related professionals 0 11 0 0 0
Financial clerks and credit controllers 2 10 20 14 7,000
General legal administration & rel. professionals 0 3 0 0 0
Head of department/chief executive officer 0 3 0 0 0
Horticulturists foresters agricul.& forestry techn 3 24 12.5 39 13,000
Human resources & organisat developm & relate prof 2 21 9.5 39 19,500
Human resources clerks 0 11 0 0 0
Human resources related 1 12 8.3 17 17,000
Information technology related 0 4 0 0 0
Language practitioners interpreters & other commun 2 12 16.7 24 12,000
Legal related 0 1 0 0 0
Librarians and related professionals 0 1 0 0 0
Library mail and related clerks 1 9 11.1 11 11,000
Light vehicle drivers 0 3 0 0 0
Logistical support personnel 0 6 0 0 0
Material-recording and transport clerks 0 5 0 0 0
Messengers porters and deliverers 0 8 0 0 0
Natural sciences related 4 48 8.3 88 22,000
Nature conservation and oceanographical rel.techni 5 72 6.9 66 13,200
Other administrat & related clerks and organisers 12 67 17.9 113 9,417
Other administrative policy and related officers 3 14 21.4 28 9,333
Other information technology personnel. 0 3 0 0 0
Other occupations 4 22 18.2 57 14,250
Rank: Unknown 0 2 0 0 0
Safety health and quality inspectors 1 1 100 17 17,000
Secretaries & other keyboard operating clerks 8 32 25 72 9,000
Senior managers 2 22 9.1 75 37,500
Statisticians and related professionals 0 1 0 0 0
Trade/industry advisers & other related profession 0 1 0 0 0
Veterinarians 5 23 21.7 71 14,200
Veterinary assistants 2 8 25 28 14,000
TOTAL 117 855 13.7 1526 13043
118 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.8.4 - Performance related rewards (cash bonus) by salary band for Senior Management Service for the period 1 April 2013 to 31 March 2014
SMS Salary Band
Beneficiary profile Cost
Number of Beneficiaries
Number of employees
% of total within salary bands
Cost (R’000)
Average Cost per
employee (R)
Total cost as a % of the total
personnel expenditure
Personnel Cost SMS (R’000)
Band A 3 28 10.7 113 37,667 0.5 24,030
Band B 0 9 0 0 0 0 0
Band C 0 2 0 0 0 0 0
Band D 0 2 0 0 0 0 0
TOTAL 3 41 7.3 113 37,667 0.5 24,030
3.9. FOREIGN WORKERS
TABLE 3.9.1 - Foreign workers by salary band for the period 1 April 2013 to 31 March 2014
Salary Band 01 April 2013 31 March 2014 Change
Number of employees at
beginning of the period
% of total
Number of employees at the end of the period
% of Total
Number of changes in
Employment
% of Total
Highly skilled production (Levels 6-8) 1 5.6 1 5.9 0 0
Highly skilled supervision (Levels 9-12) 12 66.7 11 64.7 -1 100
Senior management (Levels 13-16) 1 5.6 1 5.9 0 0
Contract (Levels 9-12) 4 22.2 4 23.5 0 0
TOTAL 18 100 17 100 -1 100
TABLE 3.9.2 - Foreign Workers by major occupation for the period 1 April 2013 to 31 March 2014
Major Occupation 01 April 2013 31 March 2014 Change
Number of employees at
beginning of the period
% of total
Number of employees at the end of the period
% of Total
Number of changes in
Employment
% of Total
Professionals and managers 14 77.8 13 76.5 -1 100
Technicians and associated professionals 4 22.2 4 23.5 0 0
TOTAL 18 100 17 100 -1 100
119Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.10. LEAVE UTILISATION
TABLE 3.10.1 Sick Leave for the period 1 January 2013 to 31 December 2013
Salary Band Total Days
% Days with medical
certification
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) 298 33.2 41 6.9 7 83
Skilled (Levels 3-5) 671 58.3 76 12.8 9 259
Highly skilled production (Levels 6-8) 1746 63.3 250 42.1 7 1,293
Highly skilled supervision (Levels 9-12) 1249 65.1 179 30.1 7 1,931
Senior management (Levels 13-16) 175 62.3 29 4.9 6 557
Contract (Levels 6-8) 52 36.5 17 2.9 3 36
Contract (Levels 9-12) 7 57.1 2 0.3 4 13
TOTAL 4198 60.5 594 100 7 4172
TABLE 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2013 to 31 December 2013
Salary Band Total Days % Days with Medical
Certification
Number of Employees
using Disability
Leave
% of Total Employees
using Disability
Leave
Average Days per
Employee
Estimated Cost (R’000)
TOTAL 0 0 0 0 0 0
TABLE 3.10.3 - Annual Leave for the period 1 January 2013 to 31 December 2013
Salary Band Total Days Taken
Number of Employees who took leave
Average days per Employee
Lower skilled (Levels 1-2) 1272 24 52
Skilled (Levels 3-5) 2577 24 109
Highly skilled production (Levels 6-8) 6994 20 356
Highly skilled supervision (Levels 9-12) 5699 21 269
Senior management (Levels 13-16) 829 21 39
Contract (Levels 6-8) 284 9 30
Contract (Levels 9-12) 42 11 4
Contract (Levels 13-16) 6 6 1
TOTAL 17703 21 860
120 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.10.4 - Capped Leave for the period 1 January 2013 to 31 December 2013
Salary Band Total days of capped
leave taken
Average number of days taken
per employee
Average capped leave per
employee as at 31 December 2012
Number of Employees who
took Capped leave
Total number of
capped leave available at
31 December 2012
Number of Employees
as at 31 December
2012
Skilled (Levels 3-5) 13 4 94 3 4308 46
Highly skilled production (Levels 6-8) 7 2 51 3 3438 68
Highly skilled supervision (Levels 9-12) 7 7 41 1 2243 55
TOTAL 27 4 59 7 9989 169
TABLE 3.10.5 - Leave payouts for the period 1 April 2013 to 31 March 2014
Reason Total Amount (R’000)
Number of Employees
Average Payment
per Employee
(R)
Capped leave payouts on termination of service for 2013/14 7 1 7000
Current leave payout on termination of service for 2013/14 16 12 1333
TOTAL 23 13 1769
121Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.11. HIV/AIDS & HEALTH PROMOTION PROGRAMMES
TABLE 3.11.1 - Steps taken to reduce the risk of occupational exposure
Units/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)
Key steps taken to reduce the risk
The number varies based on disclosure and number of staff testing
Awareness sessions and information on prevention provided to staff regularly
TABLE 3.11.2 - Details of health promotion and HIV/AIDS programmes
Question Yes No Details, if yes
1. 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 Ms Thabisa Nyamakazi - Director responsible for HIV and AIDS and Employee Wellness
2. Does the department have a dedicated unit or have you designated specific 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 The Transformation Branch, HIV and AIDS and Employee Wellness sub component has a total of 3 staff members involved in the programme and approximately R276, 000 was used for Counselling Services for the 2013-14 financial year.
3. 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 Counselling services, health screening tests, distribution of health and wellness articles, wellness talks and referrals.
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.
No No formal committee was established, except for the existing Peer Educators who have been trained. They promote wellness through presentations and sessions they conduct with their colleagues. Wits University has placed 4 Social Work students who conduct wellness and counselling sessions with employees. This enhances the wellness services in the department.
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 The department has the HIV and AIDS policy that is being implemented on an on-going basis in line with the business plan. Other policies that were reviewed are the Health and Productivity Policy and the Wellness Management Policy.
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.
No Awareness sessions on prevention are conducted. Articles referring to stigma were distributed.
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 hosts wellness weeks regularly and encourages staff to undergo testing. Employees participate in this each time when there are wellness week sessions conducted. Thereafter, those who test positive are referred to the nearest relevant HIV centres or clinics.
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 HIV and AIDS business plan has been developed.
A survey was conducted and another one will be conducted at the end of 3 years.
Various medical reports were received from the service provider used, namely FPD and GEMS who conducted the tests.
122 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.12. LABOUR RELATIONS
TABLE 3.12.1 Collective agreements for the period 1 April 2013 to 31 March 2014
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 discipline Hearings finalised for the period 1 April 2013 to 31 March 2014
Outcomes of disciplinary hearings Number % of Total
Correctional counselling 0 0
Verbal warning 0 0
Written warning 1 25
Final written warning 3 75
Suspended without pay 0 0
Fine 0 0
Demotion 0 0
Dismissal 0 0
Not guilty 0 0
Case withdrawn 0 0
Total 4 100
TABLE 3.12.3 - Types of misconduct addressed and disciplinary hearings for the period 1 April 2013 to 31 March 2014
Type of misconduct Number % of Total
Trespassing 2 18.18
Insubordination 2 18.18
Misrepresentation 3 27.27
Negligence 2 18.18
Poor performance other than incapacity 2 18.18
TOTAL 11 100
123Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.12.4 - Grievances lodged for the period 1 April 2013 to 31 March 2014
Number of grievances addressed Number Percentage of Total Total
Not resolved 5 22.81 21
Resolved 16 76.19 21
TOTAL 18 100 18
TABLE 3.12.5 - Disputes lodged with Councils for the period 1 April 2013 to 31 March 2014
Number of disputes addressed Number % of total
Upheld 2 20
Dismissed 8 80
Total 10 100
TABLE 3.12.6 - Strike actions for the period 1 April 2013 to 31 March 2014
Strike Actions _
Total number of person working days lost 0
Total cost(R’000) of working days lost 0
Amount (R’000) recovered as a result of no work no pay 0
TABLE 3.12.7 - Precautionary suspensions for the period 1 April 2013 to 31 March 2014
Precautionary Suspensions _
Number of people suspended 5
Number of people whose suspension exceeded 30 days 5
Average number of days suspended 114.6
Cost (R’000) of suspensions 482 750
124 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
3.13. SKILLS DEVELOPMENT
TABLE 3.13.1 Training needs identified for the period 1 April 2013 to 31 March 2014
Occupational
Categories
Gender Number of employees as at 1 April 2013
Training needs identified at start of reporting period
Learnerships Skills Programmes & other short courses
Other forms of training
Total
Legislators, senior officials and managers
Female 19
Male 19
Professionals
11 - 12
Female
35
• Finance for Non-Financial Managers
• Public speaking and presentations
• Marketing communication in the public sector
• Event Management
• Project Management
• Foundation Management Development Programme
• Environmental Management Systems
• Green Economy/Sustainability Course
• Middle Management Development Programme
• Managers
• FSSA Symposium
• Symposium of Contemporary Conservation practice
• National Land Care Conference
• National Wetland Indaba
• EEASA
• SAPO Congress
• Biosecurity Congress
• Red Meat Abattoir Association Congress
• South African State Veterinarian Association
• Congress
• Waste Khoro
• Waste Conference 15
125Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Male 47
• PERSAL
• Recruitment & Selection in the Public Service
• Strategic HR Planning
• Coaching and Mentoring
• Management Orientation
• Ms Excel
• Presentation Skill
• Disability Mainstreaming
• Advanced MS Excel
• Lead Food Safety Auditor
• Applied Epidemiology
• Corporate Time Management Training
• Labour Relations
• Symposium of Contemporary Conservation practice
• Bird of Prey Programme Annual Conference
• Conservation Practice
• GSSA Congress Air Quality Lekgotla
• SASVEPM Lead Food Safety Auditor
• South African State Veterinarian Association Congress
• Waste Khoro 2014
• Waste Con 2014
28
• Disciplinary Course
• Middle Management Development Programme
• Project Management
• Environmental Law
• Advanced GIS training
• Marketing fundamentals
• Professional Development Programme in Advanced Public Relations Writing
• Safety, Health, Environment and Quality Management
126 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Laboratory and Field Techniques Masterclass
• Organisational Design
• Emotional Intelligence
• Cobit
• Togaf 9
• Agribio-Resource Planning Programme
• Farm Business Management
• Organic Farming
• 7 Habits of Highly Effective People
• Management Development Programme
• Advanced Microsoft Access
• Intermediate Excel, Word, Powerpoint
• Molecular Biology
• Game Meat Inspection
Technicians and associate professionals
(9 – 10)
Female 77
• Report Writing
• Negotiation and Conflict Management
• Poultry production
• Mobilization and Facilitation Of Agricultural Farmer Groups
• Business Planning
• Supervisory Management Skills
o SASAE Conference
o IAIA Conference
o KZN Conservation Symposium
o SAWMA Conference
o Registration and Public Relations Seminar
o Waste Khoro
25
127Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Irrigation Management
• Conflict Management and Resolution
• Hydrophonic Training
• Project Management
• Mining Course
• Air Quality Management Course
• Conservation Practices
• Microsoft Access
• Advanced GIS Course
• Professional Development Programme in Public Relations Practice
• Photoshop/graphics
• Integrated Community Development Planning
• Department of International Relations and Cooperation
• Safety, Health, Environment and Quality
• Environmental Manage sional Report Writing
• Emerging Management Development Programme
• Facilities Management Programme
•
o (IAIA)conference
o 32nd Environmental Education Association of Southern Africa
o Biannual National LandCare Conference
o Integrated Land Management and Environmental Education for Sustainable Development
o National Land Care Conference
o Labour Relations
o SASAE
o SASAS
o PHASA Convention
o Waste Conference
o Landcare Conference
128 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Records
Management
• Policy
Development
Implementation
and Analysis
• Materials
Development
• Emotional
Intelligence
• HR Monitoring &
Reporting
• Organisational
Design
• Job Evaluation
Initial
• Nursery/
Hydroponics
Management
• Facilitation Skills
• Local Economic
Development
• Mapping
• Leadership and
Supervisory Skills
• Conflict
Management and
Resolution
• Records
Management
• Customer Service
Excellence
• National
Certificate
Business
Management
129Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Intermediate MS Word, Excel, Powerpoint
• Integrated Land Management Towards Sustainable Land Use: Rehabilitation and Monitoring
• National Diploma in Environmental Education, Training and Development Practice
Clerks
(5 – 8)
Female 204
• Excel & Power point
• Project Management
• Advanced Project management
• International Computer Driving Licence
• Report Writing
• International Computer Driving Licence
• Air Quality Course
• Snake Identification and Handling
• Geographical Information System (GIS)
• Financial Management
• Risk Management
• Safety, Health, Environment and Quality
• Air Quality Lekgotla
• International Association for Impact Assessment
• Air Quality Course
• Supervisory training
• SASAE
• Labour Relations
• GSSA Congress
• Waste Khoro 2014
• IAIA Conference
• Air Quality Lekgotla
• SASVEPM Conference
76
130 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Sustainable Development
• Time management
• Ashep and Samtrac
• Introduction to Mentoring
• Finance for Non-Financial Managers
• Facilitation Skills
• Events Management
• Coaching and mentoring
• Customer Service Excellence
• Poultry Production
• Lead Food Safety
• Auditor
• ISO 14001
Male 155
• Project Management
• Poultry Production
• Advanced Project Management
• ArcGIS Spatial Analysis
• Customer Service Excellence
• Supervisory Training
• Financial Management
• Finance for Non-Financial Managers
• Geographical Information System
• Report Writing
• Events Management
• SASAE
• SASAS Snake
Identification
and handling
• GSSA Congress
• Southern
African Wildlife
Management
Association
(SAWMA)
symposium
• Air Quality
Lekgotla
• SASVEPM
Conference
• Animal Health
Technician
Congress
69
131Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Safety, Health, Environment and Quality
• Air Quality Course
• Cobit
• Integrated Land Management
• Time Management
• Financial Management
• Intermediate MS Word, Excel, Powerpoint
• Poultry Production
• Lead Food Safety Auditor
Elementary occupations
Female 34
• Intermediate MS Word, Excel, Powerpoint
• Customer Service Excellence
• Animal Health Technician Congress
3
Male 104
• Arc GIS Spatial Analysis
• Customer Service Excellence
8
Sub Total Female
369
Male 413
Total 782
132 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
TABLE 3.13.2 Training provided for the period 1 April 2013 to 31 March 2014
Occupational Categories Gender
Number of employees as at 1 April 2013
Training provided within the reporting period
Learnerships Skills Programmes & other short courses
Other forms of training Total
Legislators, senior officials and managers
Female
19
• IOD & Pension Workshop
• Labour Relations Workshop
• Ethics Workshop
9
Male 19 • Risk Management for Neurocysticercosis
• Ethics Workshop
• IOD & Pension Workshop
• Labour Relations Training
24
Professionals
Female
35
• Innovation Workshop
• Risk Management for Neurocysticercosis
• SAMTRAC
• Demand Management
• Project Management
• GDARD Induction
• Labour Relation
• Performance Management & Development System
• IOD & Pension Workshop
• Refresher Induction Workshop
• KZN Wildlife Symposium
11
Male
47
• Innovation Workshop
• SAMTRAC
• Project Management
• Performance Management & Development System
• IOD & Pension Workshop
• GDARD Induction
• Labour Relations Training
8
133Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Technicians and associate professionals
77 • Innovation Workshop
• Customer Service Excellence
• Train The Trainer (ARC Hatfield)
• SAMTRAC
• PFMA Training
• Finance for Non-Financial Managers Training
• Electronics Records Management Course
• Disaster Management Workshop
• Budgeting
• Innovation Training
• Emerging Management Development Programme
• Project Management
• SCCM
• National Workshop for Species Monitoring at SANBI
• Symposium of Contemporary Conservation Practice 2013
• GDARD Induction
• Refresher Induction Workshop
• Ethics Workshop
• IOD & Pension Workshop
• Performance Management & Development System GSSA 2013 Conference
• GISSA Seminar
• SABI Congress
• IAIASA 2013 Conference
• South African Wildlife Management Association Conference
• National Workshop for Species Monitoring
52
Male 88 • Innovation Workshop
• Customer Service Excellence
• Train The Trainer (ARC Hatfield)
• SAMTRAC
• PFMA Training
• Finance for Non-Financial Managers Training
• Electronics Records Management Course
• SCCM
• National Workshop for Species Monitoring
• GSSA 2013 Conference
• GISSA Bi – Annual Seminar
• SABI Congress
• IAIASA 2013 Conference
• South African Wildlife Management Association Conference
51
134 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
• Disaster Management Workshop
• Budgeting
• Refresher Induction Workshop
• Innovation Training
• Emerging Management Development Programme
• Project Management
• GMP Basic Data Capturing
• GDARD Induction
• Ethics Workshop
• IOD & Pension Workshop
• Performance Management & Development System
• Symposium of Contemporary Conservation Practice 2013
Clerks 204 • Supply Chain Management
• Foundational Management Development Programme
• Rodent Training
• Aquaculture Workshop
• Budgeting
• Electronics Records Management Course
• PFMA Training
• Finance for Non-Financial Training
• Customer Service Excellence
• Emerging Management Development Programme
• Achieving Customer Service Excellence
• GMP Basic Data Capturing
• Project Management
• Abattoir Hygiene Assessment System
• Performance Management & Development System
• Refreshers Induction
• Ethics Workshop
• IOD & Pension Workshop
• GDARD Induction
• Symposium of Contemporary Conservation Practice 2013
• National Workshop for Species Monitoring GISSA Bi - Annual Seminars
• GSSA 2013 Conference
• IAIASA 2013 Conference
• South African Wildlife Management Association Conference
• Cycads Identification Symposium of Contemporary Conservation Practice 2013
26
135Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Male 155 • Supervisory Development Programme
• Foundational Management Development Programme
• SCCM
• Short course in Business writing
• Rodent Training
• Budgeting
• Electronics Records Management Course
• PFMA Training
• Finance for Non-Financial Managers Training
• Foundational Management Development Programme
• SAMTRAC
• Innovation Workshop
• Customer Service Excellence
• Project Management
• Business Writing Skills
• Inventory Management
• Train The Trainer (ARC Hatfield)
• Refresher Induction Workshop
• IOD & Pension Workshop
• Performance Management & Development System
• IAIASA 2013
Conference
• GSSA 2013 Conference
• Aquaculture Workshop
• Disaster Management Workshop
• GDARD Induction
• SABI Congress
• South African Wildlife Management Association Conference
• Cycads Identification Symposium of Contemporary Conservation Practice 2013
• National Wetland Indaba
• Symposium of Contemporary Conservation Practice 2013
32
Elementary occupations
Female 34 • PFMA
• Train The Trainer (ARC Hatfield)
• Office Administration
• Budget Analysis
• Performance Management & Development System
• IOD and Pension Workshop
• Waste Khoro Conference
8
136 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Male 104 • PFMA Training
• Ms Excel
• Inventory Management
• Supply Chain Managemen
6
Sub Total Female 369 106
Male 413 121
Total 782 227
3.14. INJURY ON DUTY
TABLE 3.14.1 Injury on duty for the period 1 April 2013 to March 2014
Nature of injury on duty Number % of total
Required basic medical attention only 11 100
Temporary Total Disablement 0 0
Permanent Disablement 0 0
Fatal 0 0
Total 11 100
3.15. 3.15 UTILISATION OF CONSULTANTS
Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2013 to 31 March 2014
Project Title Total Number of consultants that worked on project
Duration
Work days
Contract value in
Rand
Appointment of service provider to assist the Department in the preparation of annual financial statement and implementation of action plan to address Auditor General findings.
01 R 404 899.90
Total number of projects
Total individual consultants
Total duration
Work days
Total contract value in Rand
01 01 R 404 899.90
137Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2013 to 31 March 2014
Project Title Percentage ownership by HDI groups
Percentage management by HDI groups
Number of Consultants from HDI groups that work on the project
Appointment of service provider to assist the Department in the preparation of annual financial statement and implementation of action plan to address Auditor General findings.
100% 100% 3
Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2013 to 31 March 2014
Project Title Total Number of consultants that worked on project
Duration
Work days
Donor and Contract value in Rand
Not applicable
Total number of projects
Total individual consultants Total duration
Work days
Total contract value in Rand
Not applicable
Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2013 to 31 March 2014
Project Title Percentage ownership by HDI groups
Percentage management by HDI groups
Number of Consultants from HDI groups that work on the project
Not applicable
138 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
Part E: FINANCIAL INFORMATION
139Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ANNUAL FINANCIAL STATEMENTS FOR THE GAUTENG DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT
Contents
REPORT OF THE ACCOUNTING OFFICER ........................................................................................................... 141
REPORT OF THE AUDITOR-GENERAL ....................................................................................................................161
Appropriation per programme .....................................................................................................................................165
Notes to the Appropriation Statement ....................................................................................................................175
STATEMENT OF FINANCIAL PERFORMANCE .....................................................................................................177
CASHFLOW STATEMENT ..................................................................................................................................................178
STATEMENT OF CONDITIONAL GRANTS RECEIVED ..................................................................................223
ANNEXURE 1A ........................................................................................................................................................................224
140 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
1. REPORT OF THE ACCOUNTING OFFICERGENERAL REVIEW OF THE STATE OF FINANCIAL AFFAIRS
1.1. Mandate, Vision and MissionThe Department of Agriculture and Rural Development carries out its mandate in terms of the Constitution of
the Republic of South Africa, 1996 within the functional areas of agriculture, environment, rural development
and conservation.
The vision of the Department - Vibrant, equitable, sustainable communities, food security for all and protected
and enhanced environmental assets and natural resources - encompasses and sets the direction for improving
the lives of the peoples of Gauteng through these functional areas. The Department has the following specific
Mission:
To provide an integrated management system for sustainable agriculture, rural development and use of natural
resources towards improved quality of life for all in Gauteng through:
• Increased competitiveness of Gauteng agri-food industry by increasing competencies, sales and
equality;
• Championing of animal health and welfare in a cost-sharing/recovery model;
• Sustainable use of environment with the challenge of restoring and enhancing profitable and sustainable
ecosystems, improving bio-diversity and landscape, and providing opportunities for access in the
countryside; and,
• Co-ordination of rural development with respect to agriculture, environment, education, health, transport,
infrastructure and other social services.
Important Policy DecisionsThe Department continued to implement its strategic and policy frameworks in delivering services in the area
of farmer support, food security, animal health, removal of alien vegetation, provision of services to identified
rural nodes, amongst others, to the people of Gauteng through the strategies and policies approved between
2010 to 2013.
The Executive Council approved two major Plans in the year under report – the Gauteng 20-Year Food Security
Plan and the Gauteng 5-Year Acid Mine Drainage (AMD) Plan. The Gauteng 20 Year Food Security Plan sets
out a portfolio of targeted strategic programmes to address food insecurity in the Province in a comprehensive
way, reducing the 2011 levels of hunger and inadequate access to food by half by 2030.
The Gauteng 5-Year Acid Mine Drainage Plan gives effect to the provincial response to the mine water
contamination challenge in the Province. The Plan outlines various passive treatment and piloting options and
institution and financial models to address the challenge and supports national initiatives by the Department of
Water Affairs to address this challenge.
To further improve efficiency of administration in processing of environmental impact assessment applications
and provide a reliable service in this area of work, the Department finalised the development of the
Environmental Impact Assessment Review System. The system will ensure better efficiency in the review of
applications, ensure consistent decision making and improve quality of decision making, thereby provide a
reliable investment climate/regime for developers.
141Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
Key Strategic Priorities and Service Delivery Areas of the DepartmentThe Department continue to provide services in respect of the following key GPG strategic priorities.
Outcome 5a Vibrant, equitable and sustainable and rural communities and food security for all
Outputs1. Sustainable agrarian reform with a thriving small and large farming sector
2. Improved access to affordable and diverse food
3. Improved rural services to support livelihoods
4. Improved employment opportunities and economic livelihoods
Outcome 5b Protected and enhanced environmental assets and natural resources
Outputs
1. Enhanced quality and quantity of water resources
2. Reduced greenhouse gas emissions, climate change impacts and improved air / atmospheric quality
3. Sustainable Environmental Management
4. Protected biodiversity
Outcome 8 An efficient, effective and development oriented public service and empowered, fair and inclusive citizenship
Outputs
1. Service delivery quality and access
2. Human Resource Management and Development
3. Business Process, Systems, Decision Rights & Accountability
142 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
1.2. Significant Achievements (Events and Projects) during the year
The following are significant achievements during the year under report:
Departmental Projects• Through the Maize Triangle Programme, Zivuseni Agricultural Cooperative comprised of 35 local small
producers exported 72 tons of maize whilst Siyibane Farming Project also exported 164.14 ton to
Lesotho. This was in partnership with the WFP, which is an internationally recognized agency of the
United Nations (UN). The programme has assisted farmers with various interventions such as on-and
off farm infrastructure mechanization, packaging facilities and grain silos.
• As part of the farmer support programme in the Province, a total of 143 smallholder farmers were
assisted with production inputs: 30 farmers were provided with piggery production inputs, 30
smallholders were provided with poultry production inputs and a total of 83 smallholder farmers were
supported with maize production inputs.
• Support was provided for the establishment of 50 school food gardens with the provision of garden
tools, seeds, compost and watering cans .The gardens were established in order to complement the
food provided by the Department of Education as part of the school nutrition feeding program.
• In line with Gauteng’s vision to increase Agriculture’s contribution to the Province’s GDP, the focus has
been on development of skills and expertise that is required to grow Agri business in the province. In
collaboration with five universities in Gauteng (University of Johannesburg, Wits University, University
of Pretoria, Tshwane University of Technology and Vaal University of Technology), 50 biotechnology
bursaries were awarded, 25 internship opportunities created and 12 students participated in the
Gauteng Biotech fundi Awards. 2 students were awarded travelling scholarships to attend the
Agricultural Biotechnology International Congress in Canada and 1 student from ARC was also funded
to attend the congress through the ABIC Foundation.
• Significant pockets of excellence throughout the department were identified in 2013/14. The Veterinary
Services Branch was awarded the first prize both locally and internationally, for a livestock project which
took place in the Rust de Winter area. The first award was conferred by the World Veterinary Association
in conjunction with the OIE for effective public-private partnerships towards the delivery of services
during the World Veterinary Congress which took place in Prague. The prize was in a form of a trophy
and cash to the value of $1000.
143Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
The project went further to win the CPSI’s (Centre for Public Service Innovation) overall award for innovative
partnerships under the ‘Innovator of the year’ category. This was accompanied by a cash prize in the region of
R70, 000.00. The prize money was subsequently used to acquire a mobile livestock handling facility.
A third award scooped by the project was awarded during the Premier’s Service Excellence Awards under the
‘Best project’ category.
• GDARD’s performance in processing development applications (through the Environmental Impact
Assessment system) remain the best the country. Processing more than 40% of the development
applications in the country, the Department has further improved efficiencies in this important regulatory
area, resulting in 314 Environmental Impact Assessment applications processed in 2013/14. The
Department has also formed a strategic alliance with the recently launched Gauteng Investment Centre,
providing investor consultation services on Environmental Impact Assessment process in order to effect
reduced turnaround time for development applications by domestic and foreign investors. This is to
reduce bureaucracy and improve the ease of doing business in the province.
• The designation of Environmental Management Inspectors (EMI) at local authority level is a key
national indicator which forms part of the delivery agreement between the President and the Minister of
Environmental Affairs. GDARD was the first province in the country to designate 3 officials as EMIs at
Emfuleni Municipality. During the year the MEC designated 24 municipal officials as EMIs.
• GDARD was also the only province that obtained approval from the Chief Magistrate of Pretoria to
impose an admission of guilt fines for the National Environmental Management: Waste Act, 2008. It
is therefore important to improve the capacity of the Department to ensure effective compliance to
legislation. Thus the Department is actively engaged in training of officials at municipal level to be
designated as Environmental Management Inspectors.
• Two Departmental officials received special recognition in the year under review. Ms Nontebeko Tsiane
was awarded the Gauteng Provincial Government HR Director of the Year Award while Mr Ali Makgato
received an Outstanding Public Official award during the Premier’s Service Excellence Awards.
• The Department’s Annual Report for the year ended 31 March 2012 was rated among the Top 20
(position 11) by the South African Institute of Government Auditors (SAIGA) during the 2013 Annual
Public Sector Reporting Awards in September 2013. The Annual Public Sector Reporting Awards
recognize the pursuit of excellence in annual reports published by all provincial and national
departments. GDARD was the only other Department in the Gauteng Province to make the Top 20 list.
144 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
Departmental Events The following main events were successfully hosted during the year under report:
The Bontle Ke Botho Awards
The Bontle ke Botho Awards seek to recognise wards, schools and municipalities that have initiated best
environmental action project under five themes which are water conservation, energy efficiency, greening,
sustainable agriculture and waste management. It is the concluding part of the BkB campaign designed
to heighten environmental awareness and encourage meaningful actions in communities. The BkB Awards
ceremony to award prizes to the best performing municipalities, wards and schools was held on 21 June 2013.
The best two Metropolitan and 3 Local municipalities won monetary prizes. Five rural schools and 3 wards also
won prizes at the event. The monetary prize is used to improve the existing projects or initiate new ones in line
with the five themes of the campaign.
The Agribusiness and Young Farmer of the Year Awards
The Agribusiness Young Farmer of the Year Awards seeks to encourage youths in agriculture by recognizing
their contributions in the agricultural sector and increase their participation in agricultural activities. The event
aims to award youths in different categories within the agricultural sector. The Department recognized young
farmers for the contribution they made in the agricultural sector through the Awards which took place on 25
June 2013 which was attended by 400 young farmers from across the Province. There were nine awards
categories: Best Youth Worker, Best Homestead Food Garden, Best Community Project, Best Young Disabled
Agri-business of the year, Best Agri-business youth of the year: Informal Markets: Livestock, Best Agri-business
youth of the year: Informal Markets: Crops, Best Agri-business youth of the year: Formal Markets, Best Agri-
business youth of the year: Export Markets and Best Agri-business youth of the year: Processing. The overall
winner in the year under report was Siphiwo Gift Mafuleka of Mphiwe Siyalima Trading Enterpises. He also won
in the category Best Agribusiness Youth of the year: Formal Markets.
The Nama Phepa Awards
The year 2013 marked a decade of the Gauteng Nama Phepa awards. This annual event recognizes abattoirs
that meet the criteria to be rated amongst the best with a view to assuring consumers which outlets are
credible and sell healthy meat. This year’s event took place with Chalmar Beef Abattoir winning in the high
throughput red meat abattoirs category while Leeuwkop Abattoir, a Correctional Services Abbatoir, won in the
low throughput red meat abattoir category. The Department regards this as an achievement for a government-
owned abattoir competing with the private sector to win this award. Earlybird Abattoir won the high throughput
poultry abattoir award while Zain’s Halaal Poultry won the low throughput poultry abattoir award.
145Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
Women in Dialogue
To ensure active participation of women in agricultural, environment, veterinary services and rural development,
the MEC held a Women’s Dialogue Stakeholder Engagement with women from the environment, veterinary
services, agriculture and rural development sectors in August 2013. Five hundred women attended the
session. Attendees were given the opportunity to raise issues of concern with the MEC. The event also sought
to address issues of women empowerment and development.
Agricultural Expos
The Department hosted 3 Agricultural Expos in collaboration with private sector agricultural exhibition
companies. The Department hosted the African Farmers’ Expo from 15 -17 August 2013, the Tshwane Spring
Show in September 2013 and the Undercover Farming Expo in March 2014 with the aim of exposing African
farmers to the latest in best practice and technology. The Agricultural expos includes practical workshops
for farmers presented by agricultural production inputs suppliers, machinery suppliers, land bank and
commercial banks agricultural divisions as well as agricultural services providers and parastatals undertaking
research in the sector. The expo aims to serve as a platform for interaction among agriculture stakeholders,
creating opportunities for agricultural trade as well as exchange of ideas and strategies for agri-business and
smallholder farmer development. They are undertaken in the context of enhancing Public-Private partnership
with the aim of accelerating agricultural development in Gauteng province.
Agri-Business Woman of the Year Awards
The Department recognized female farmers for the contribution they made in the agricultural sector through
the Agri-Business Woman of the Year event in August. The aim of this event is to empower and encourage
women in agriculture by recognizing their contributions in the Agricultural industry. The overall winner of the
Agri-Business Winner of the Year Awards 2013 went to Ikhwezi Project led by a woman with a disability and
that has 60% of its members as PWDs.
146 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
MTK Awards
The Mma Tshepo Kumbane or MTK Awards are named after environmental activist Mma Tshepo Kumbane.
The MTK Awards encourage communities and schools initiatives and innovations on best natural resource
management practices.
The MTK Awards ceremony took place on 1 November 2013 and 162 projects were nominated in eight different
categories - Best School Greening Projects, Best School Innovative Projects, Best Environmental Rehabilitation
Projects, Best Environmental Awareness Projects, Best Water Management Projects, Best Community Nursery
Projects, Most Innovative Projects and Best Community Based Natural Resources Management (CBNRM)
Projects. Apart from the schools and community projects that won in the eight categories, there were two
overall winners in the year under report - Seetsa Sa Kgwedi Primary School and Bambanani Project and they
each received R25000.00.
MEC Environmental Stakeholders Open Day
This event was held on 14 February 2014 and was designed to afford environmental stakeholders working
in all aspects of the environment, conservation, agriculture and compliance and enforcement to engage
with the MEC of Agriculture and Rural Development on issues of mutual interest and to discuss the work
the Department of Agriculture and Rural Development has done in the environment sector. The event, which
previously focussed on environmental impact assessment, was expanded this year to include compliance
and enforcement issues and conservation issues. The MEC Open Day continues to be the primary interaction
platform for many environmental assessment practitioners, communities and NGOs with the MEC and provides
valuable feedback mechanism in order to improve efficiency in the environment sector.
Clean Fires Campaign (Basa Nje Ngo Magogo)To address in-door pollution, especially in low-income densely populated urban areas (including informal
settlements), the Department hosted two Clean Fires Campaign, referred to as Basa nje ngo Magogo (BNM).
These BNM campaigns were hosted in partnership with the Central Energy Fund in Impumelelo in Devon and
Attridgeville in Tshwane. The campaign sought to educate communities about the dangers of indoor pollution
especially real and often fatal dangers emanating from the use of coal as energy for indoor cooking and space
heating.
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REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
1.3. Report on Capital Projects Planned for the 2013/14 financial year
Project description Local Municipality
Inco
mp
lete
Co
mp
lete
d
Appropriation
Institution Name
Suikerbosrand Nature Reserve
Booster Pump for the Northern Water Line
Midvaal and Lesedi
× 36 843.00
Suikerbosrand Nature Reserve New Adventure Centre
Midvaal and Lesedi
×
750 000.00
Suikerbosrand Nature Reserve Southern Water Line
Midvaal and Lesedi
x 1 110 122.00
Training CentreNew Kiddies pool construction
Tshwane Municipality
×
103,000.00
TembaUpgrading of Temba Agricultural Offices
Tshwane Municipality x 309 989.00
Suikerbosrand-Kareekloof
Reconstruction of stables into accommodation units
Tshwane Municipality
×
300 000.00
Suikerbosrand Nature Reserve
Renovation of house 1 to 7
Midvaal and Lesedi × 497 000.00
Suikerbosrand Nature Reserve
General renovations of Schoongezicht house, outbuildings and palisade fence
Midvaal and Lesedi × 488 000.00
Suikerbosrand Nature Reserve
Replacement of carpet in breakaway rooms and painting of admin
Midvaal and Lesedi × 300,000.00
Suikerbosrand Nature Reserve
Upgrading of male and female toilets
Midvaal and Lesedi x 69 000.00
Suikerbosrand Nature Reserve
Maintenance and repairs of Ouhoutkamp
Midvaal and Lesedi x 452,000.00
Suikerbosrand Nature Reserve
Maintenance of old boom gates at Diepkloof and Schoongezicht
Midvaal and Lesedi × 75,559.20
Suikerbosrand Nature Reserve
General renovation to Yellow house
Midvaal and Lesedi × 195,000.00
Training CentreRenovation of existing swimming pool
Midvaal and Lesedi
×71 706.00
Leeuwfontein Nature Reserve
Basic picnic site for day visitors
Tshwane Municipality
x400 000.00
Roodeplaat Nature Reserve Upgrade of power units
Tshwane Municipality x 114 430.00
Maintenance Scheduled maintenanceMidvaal and Lesedi × 977 408.00
Maintenance
External upgrade of ARC1 and 2 Building at Vredehuis
Midvaal and Lesedi
×
x 142 592.00
TOTAL 7 406 000.00
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REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
Capital projects that are currently in progress and when they are expected to be completed
Project description Local MunicipalityExpected Completion
dateInstitution Name
Suikerbosrand Nature Reserve
Booster Pump for the Northern Water Line Midvaal and Lesedi
30 May 2014
Suikerbosrand Nature Reserve Southern Water Line Midvaal and Lesedi
31 December 2015
2. SPENDING TRENDSSpending Trends for the previous years
2009/10 2010/11 2011/12 2012/13 2013/14
R’000 R’000 R’000 R’000 R’000
Final Appropriation 436,843 444,373 489,850 517,659 554,177
Adjustments 410,490 443,672 516 658 516 479 554,177
Expenditure 409,908 411,736 476 949 515 887 549,139
(Over) / Under Expenditure 582 31,936 39,709 1,772 5,038
% Budget increase from previous year 9% 7% 16% 5% 7%
% of appropriation spent 99.9% 92.8% 92.3% 99.7% 99,1 %
Reasons for overspending/underspending
Programme Name
2013/2014
Final Appropriation
Actual Expenditure
(Over) / Under Expenditure
R’000 R’000 R’000
Administration 156,592 155,615 977
Agriculture & Rural Development 253,440 253,150 290
Environmental Affairs 144,145 141,374 3,771
TOTAL 554,177 550,741 5,038
The Department underspent by 0.6%. The main underspending is under Compensation of Employees due to
vacancies in the Department.
149Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
Programme 1 – Administration: R977 thousand This Programme spent 99.4% of its allocated budget for the 2012/2013 financial year. The main underspending
was under Compensation of Employees because of the late filling of the posts of the Head of Department and
the Chief Financial Officer.
Programme 2 - Agriculture and Rural Development: R290 thousand This Programme spent 99.9% of its allocated budget. An amount of R281 thousand was not spent on payment
for Capital Assets. The money was committed but actual payment could not be made before the end of the
financial year.
Programme 3 - Environmental Affairs: R3,7 millionThis Programme spent 98.1% of its allocated budget. An amount of R3,7 million was not spent under the
Compensation of Employees budget. The under-spending can be attributed to OSD vacancies not filled during
the financial year.
Impact on programmes and service deliveryThe consolidated performance information as required in terms of the PFMA is included in this annual report
for the year ending 2013/2014. Monitoring of targets set in the Annual Performance Plan and Programme of
Action is carried out on a monthly and quarterly basis. Quarterly reports were submitted to the Legislature. This
is supported by quarterly reviews with the MEC and HOD in which there is robust interrogation with the aim of
finding solutions where targets were not being achieved. Of all the APP targets, the Department has achieved
83%of its targets for the 2013/2014 financial year with 17% not being achieved.
Utilisation of donor funds No donor funds were received for the 2013/2014 financial year.
3. OUTLOOK/ PLANS FOR THE FUTURE TO ADDRESS FINANCIAL CHALLENGES
The Department has been without a CFO for the last 18 months and several efforts to recruit have not yielded
results. The filling of this position is of critical importance and priority. The Department will keep on improving
on its financial processes and controls to ensure that the budget get spent according to EPRE taking into
consideration relevant laws such as the Public Finance Management Act (PFMA) and Treasury Regulations.
Key Areas of focus in the coming year are:• Establishing Programme and Contract Management processes
• Addressing capacity gaps in the CFO’s office
• Improving controls and establishing a committee that will address financial mismanagement in the
department
• Improving asset management and control
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3.1. Revenue
2013/2014 2012/2013
Departmental receipts Estimate Actual Amount
Collected
(Over)/Under Collection
Estimate Actual Amount
Collected
(Over)/Under Collection
R’000 R’000 R’000 R’000 R’000 R’000
Sale of goods and services other than capital assets
850 743 107 620 671 (51)
Interest, dividends and rent on land
40 1 39 6 80 (74)
Financial transactions in assets and liabilities
500 285 215 940 1 355 (415)
Total 1 390 1 029 361 1 566 2 106 (540)
Sale of goods and services other than capital assetsThe saving is due to the decline in collection of revenue for replacement of access cards as the Department moved
to the new Building 11 Diagonal Street. Access cards are not being used currently. The revenue item relates also
to Commission charges on insurance and Garnishee orders which decreased in the 2013/2014 financial year thus
impacting on Revenue Collection.
Interest, dividends and rent on landThe under collection in this revenue item can be attributed to the fact that the Department wrote off a huge amount of
supplier debts at the end of March 2013. These were supplier debts which had no prospect of being recovered as all
avenues to collect had been exhausted. Interest charges are less than R1 000.00 for the 2013/2014 financial year.
Financial transactions in assets and liabilitiesThis revenue item relates to the recovery of previous year expenditure which is lower than what was originally projected
to be collected.
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4. ORGANISATIONS TO WHICH TRANSFER PAYMENTS HAVE BEEN MADE
Transfer payments were made to municipalities, government agencies and other related bodies. The
Department ensured compliance with section 38(1)(i) of the PFMA. Detail of transfer payments made is below:
Name of transferee Type of organisation Purpose for which the funds were used
Amount transferred
(R’000)SANBI Departmental Agencies and
AccountsWetlands rehabilitation R1 600
ARC Departmental Agencies and Accounts
Research Agenda projects R1 360
ARC Departmental Agencies and Accounts
Farmer training R2 200
RAND WATER Public Corporations Alien plants removal & MTK awards
R5 689
RAND WATER Public Corporations Agro processing R5 700
RAND WATER Public Corporations Production inputs R10 485
UJ Universities and Technikon Research agenda & bursaries
R730
VUT Universities and Technikon Research agenda & bursaries
R250
UP Universities and Technikon Research agenda & bursaries
R700
UNISA Universities and Technikon Research agenda & bursaries
R200
WITS Universities and Technikon Research agenda & bursaries
R450
TUT Universities and Technikon Research agenda & bursaries
R826
Lesedi Municipality Municipality Alien vegetation Eradication
R1 300
Merafong Municipality Municipality Alien vegetation Eradication
R750
City of Johannesburg Municipality River clean -up project. R2600Emfuleni Municipality Municipality Alien vegetation
EradicationR750
Ekurhuleni Municipality Municipality Tembisa urban Renewal R1 425
Lesedi Municipality Municipality Devon Tannery R500
152 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
5. GRANT RECEIVED AND THE EXPENDITURE INCURRED
GRANT NAMEADJUSTED
BUDGETEXPENDINTURE AS AT 31 March 2014
AVAILABLE BUDGET
% SPENT
AGRICULTURE DISASTER MANAGEMENT 4,274 4,484 210 95.3%
CASP 32,701 32,701 0 100.0%
ERP 18,695 18,785 (90) 100.5%
Total CASP 55,880 55,760 120 99.8%
ILIMA/LETSEMA 17,538 17,538 0 100.0%
EPWP – Integrated Incentive Grant 606 606 0 100.0%
Land Care Programme – Poverty Relief & Infrastructure 6,163 6,163 0 100.0%
CONDITIONAL GRANT TOTAL 80,187 80,067 120 99.9%
6. VIREMENTS/ROLL OVERS
Programme 1: Administration
A total amount of R3, 943 million was moved to Programme 1 as follows:
Senior Management sub programme received R1 925 million to cater for shortfall on security services contract
during the financial year. Corporate Services sub programme received R2 018 to fund shortfall relating to fuel
and maintenance of departmental vehicles.
Programme 2: Agriculture and Rural Development
A total amount of R3 019 million was moved from Programme 2 as follows:
A saving of R3 943 was realised from Veterinary Services sub programme as the Department budgeted
for contingency plan for animal outbreaks during this financial year. Famer Support and Development sub
programme received R924 thousand to fund shortfalls under Compensation of Employees in this Programme.
Programme 3: Environmental Affairs
A total amount of R924 thousand was moved to programme 2 as follows: A total amount of R924 thousand was moved from Biodiversity Management to Programme 2, to fund critical
posts in Programme 2. Recruitment was done in line with the needs of the Department as well as critical posts
identified.
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7. UNAUTHORISED, FRUITLESS AND WASTEFUL EXPENDITURE
Item AmountR’000
Intervention Challenges
Unauthorised Expenditure
R 5 442 This relates to the unauthorised expenditure in 2005/2006 financial year which was not condoned. Approval was given by Gauteng Provincial Treasury for the unauthorized expenditure to become a first charge against the Budget of the Department for the 2013/2014 Financial Year. The Department has since cleared the unauthorized expenditure from their records
None
Fruitless and Wasteful
Expenditure
R 13 Suppliers were requested to forward invoices to the Department electronically to speed up the payment process and avoid interest charges.
The SCOA changes that took effect on 1 April 2013, had a huge impact on Suppliers being paid timely. The first run took place only in the 3rd week of April 2013 and therefore payments were made late to Suppliers. With receipt of invoices in May 2013, the Office of the Auditor General and Magalies Water charged interest due to late payments made in April 2013.
Even though invoices are submitted electronically by Suppliers, it is still submitted too late to ensure payments are made before the due date. Meetings were held with Suppliers but this still remains a huge challenge to the Department.
Irregular Expenditure
R 3 188 There is now a dedicated person who ensures that tender points are calculated correctly by the BEC before the tender is forwarded to DAC. Training has also been offered to officials dealing with Tenders. Tender points are verified by someone who was not part of the evaluation process of the tender.
This relates to a tender that was awarded last year whereby there was an error in the calculation of Functionality Points. This was caused by shortage of staff and now extra capacity has since been secured.
154 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
8. CAPACITY CONSTRAINTSThe Departmental vacancy rate at the end of the financial year was at 17.3%. Two recruitment drives were
embarked in the 2013/2014 financial year. Attracting and retaining scarce skills remains problematic due to
the pressures in this area from other Government Departments and the private sector. As a result the Chief
Financial Officer post remained unfilled in the year under review as a suitable candidate could not be found
despite interviews held in a bid to fill the post. The post of the Head of Department also remained unfilled for a
greater part of the year. Plans are underway to fill the Chief Financial Officer post in the 2014/15 financial year.
The Department has continued to appoint interns, learners and contract workers and has closely monitored
the retention processes. In addition the Department offers bursaries to deserving individuals to assist in
building a pool of skills for scarce skills areas. Bursaries with Tshwane University of Technology, University of
Pretoria, University of South Africa and the University of Johannesburg were continued in 2013/2014 financial
year. However, increased demands on the Department’s services and additional mandates without concurrent
funding remain a challenge.
9. PUBLIC PRIVATE PARTNERSHIPS (PPP)The Department did not enter into any Public Private Partnership for the year under review.
10. CORPORATE GOVERNANCE ARRANGEMENTS
The Department maintains a high standard of governance. The Department has a functional Risk Management
unit and Ethics Committee. The Department is serviced by the Provincial Audit Committee responsible for
the economic cluster. The committee consists of external members from civil society and is attended by
the Department’s HOD, CFO and CRO. Chief Directors also attend meetings of the Audit Committee. The
Audit Committee is effective in that it provides valuable support and oversight to the Department in relation
to financial management and accountability. The Audit Committee was functional and reviewed all plans and
progress for the 2012/13 financial year.
Risk Management
Effective management of risk and opportunity is essential in the achievement of the department‘s goals and
objectives. Risk Management has remained an integral part of the operations of the department during the
year under review.
The Department has adopted the Gauteng Provincial Government Risk Management Framework approach
to Risk Management which means that each key risk in every business unit of the department is included in a
structured framework and systematic process of Risk Management. Risk assessment reviews are conducted
annually and specifically address strategic, operational, human resource, information technology, financial
and reputational risks as well as risks covered by the legislation on Health, Safety and Environmental issues.
The Risk Management unit is headed by the Chief Risk Officer and it now reports directly to the Accounting
Officer. The unit has been given access to Top Management and facilitate the process of embedding Risk
Management into day-to-day activities and management processes within the department. This includes the
following activities:
155Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
• Conducting annual strategic risk assessments;
• Conducting operational risk assessments or re-evaluate key risks for all business units at-least annually;
• Regular reviews and update of risk registers and progress on management actions intended to mitigate or
reduce the identified risks;
• Development of contingency plans for high risks;
• Early identification of emerging risks and initiation of risk reduction or mitigation actions; and
• Monitor and report on key risks affecting the department including any incidents or losses.
The Risk Management unit and line managers are accountable on risk mitigation to the Risk Management
Committee which meets every quarter. The Head of Department is ultimately responsible for Risk management
within the department. The Head of Department is accountable to the Executive Authority regarding the
effectiveness of the Risk Management process.
• Risks are reported to the following oversight bodies
• The Audit Committee
• Executive Management Team
• Risk Management Committee
• Gauteng Provincial Government Risk Management Forums
The risk identification process is performed at risk assessment workshops and includes all risks whether or not
such risks are under the control of the department.
The Risk Management culture continues to improve and management is more committed with regard to reporting
on risks identified for their specific directorate as well as reporting emerging risk to the Risk Management
unit. This has ensured a continuous monitoring of identified risks as well as updating of alternative mitigation
actions with risks that require much detailed attention.
Fraud and Corruption
The Department has a Fraud Prevention Policy and Prevention Plan in place. The main objectives of the Plan
include the following:
• Developing a culture of ethical behaviour and instilling zero-tolerance to fraud and corruption;
• Sending a clear message to all employees and members of the public who interact with the department
that it is committed to fighting fraud and corruption;
• Improving accountability, efficiency and effective administration within the department and to deal
decisively with acts of fraud and corruption;
• Improving the application of systems, policies, procedures and regulations;
• Encouraging all employees and other stakeholders to strive towards the prevention and detection of fraud
and corruption impacting or having the potential to impact the department
The Department continues to implement the GPG Whistleblowing Policy, with guidance for staff on anonymous
reporting. Reporting can be done through the departments’ Legal representative, Member of the Executive
Council, Public Service Commission, Public Protector, The Auditor General, The Gauteng Premiers’ Office,
National Gauteng Hotline by form of South African telephone numbers, or post, with the Chief Risk Officer as
the principal contact.
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REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
All employees and other stakeholders have the opportunity to make confidential disclosures about any
suspected impropriety and wrongdoing. Confidential disclosures can be made to the National Anti-Corruption
Hotline (“NACH”) which is maintained by the Public Service Commission (“PSC”). All reported cases are
thoroughly investigated and where necessary dealt with in terms of disciplinary code and procedures.
The Department is supported by the Gauteng Department of Finance: Forensic Services unit with regard to
dealing with all cases of fraud and corruption reported through to the department. The unit fulfils the department’s
objective of timeously investigating and reporting fraud and corruption and other related irregularities.
Minimising Conflict of InterestAll SMS members submitted their financial disclosures in the year under review. In addition, the MEC required
officials in Finance (Procurement and Financial Management), officials at the level of Assistant Directors and
above in the Department to complete the declaration of financial interest. Approval must also be obtained
before any remunerative work outside the public service can be undertaken by officials. In terms of the
Remunerative Work Outside the Public Service Policy that governs this, an official cannot seek approval to do
work that would be in conflict with his/her job responsibility in the Department.
Code of Conduct/Ethics
The Department complies with the Public Service Code of Conduct. An Ethics Committee has been
established and an Ethics Officer has been appointed by the Head of Department. The Committee meets
once every quarter and part of its functions includes oversight, training, reporting and advice on ethics related
matters. The Ethics Committee carried out extensive awareness on Ethics and the Public Service Code of
Conduct in the year under report. Two ethics related policies were also amended and approved: the Policy
on Remunerative Work Outside the Public Service and the Gifts and Donations Policy. In terms of the latter,
the Department has now put in place a no-gifts policy. The Disciplinary Code and Procedures guides issues
relating to discipline in the Department.
Occupational Health and Safety (OHS)
Occupational health and safety is being addressed with the appointment of a Deputy Director: Safety and
Security. Plans are being put in place to revive the Department’s Occupational Health and Safety Committee.
Internal Control UnitThe Internal Audit function is carried out by Gauteng Audit Services within the Department of Finance. A risk
assessment was conducted by the Department which formed the basis for all the internal audit work done
during the year under review. The Internal Audit Plan was duly approved by the Audit Committee as part of their
oversight duties in ensuring that all high risk areas of the business are audited. In the 20134/14 financial year
the Gauteng Audit Services planned to perform 16 audits and completed 16 audits.
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11. SERVICES RENDERED BY THE DEPARTMENT
The Services rendered by the Department are covered under Section 1.1 of the Accounting Officer’s report.
12. TARIFF POLICYThe Department charges tariffs/fines based on the various legislative frameworks that form the mandate of the
Department. These include:
• Convention of International Trade in endangered species of fauna and flora (CITES) export, import, re-
export and general permits;
• Veterinary export certification and post-import control;
• Visitor services at the Nature Reserves;
• Section 24G NEMA fines (Section 24G of NEMA specifically refers to an “administration fine” which
serves as an initial penalty for activities that commence prior to authorisation as required by NEMA as
well as contravention of the conditions applicable to any environmental authorisation) using a calculator
developed jointly by the National Department of Environmental Affairs and Tourism and the relevant
Provinces.
13. FREE SERVICESThe Department provides all agricultural and environmental related services free of charge to the public. These
services include:
• Preparation of business plans
• Feasibility studies
• Training, conferences and information sessions
• Ploughing of farms
• Processing of Environmental authorisation applications
For more information, please refer to the Cost Recovery Annual Financial Statements.
14. TRADING ENTITIES AND PUBLIC ENTITIES
The Department manages a Cost Recovery Trading Account which is used for the recovery of costs in the
following areas:
• Veterinary Services and Conservation – CITES, export certification and post-import control revenue and
associated costs.
• Conservation – Visitor services collections and associated costs
• Compliance and Enforcement – section 24G NEMA Administrative fines
For more information please refer to the Cost Recovery Annual Financial Statements.
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REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
15. DISCONTINUED ACTIVITIES/ACTIVITIES TO BE DISCONTINUED
No activities were discontinued.
16. NEW OR PROPOSED ACTIVITIES
There are no new/proposed activities.
17. EXEMPTIONS AND DEVIATIONS RECEIVED FROM THE NATIONAL TREASURY
No exemptions and deviations were received from National Treasury for the 2013/14 financial year.
18. EVENTS AFTER THE REPORTING DATE
A notable event that has occurred is the elections that took place on 7 May 2014 which has ushered in a new
five year term of government. While at this time the changes in relation to policies might not be major, the
Department is preparing for the a strategic planning session to put in place a Strategic Plan for the next five
year term of government. In addition, the Department has also experienced a change in the political leadership
with Ms Faith Mazibuko being appointed as the Member of the Executive Council for the Department.
19. OTHER
Supply Chain Management
• The Department did not have any unsolicited bids during the year under review.
• A lot has been done during the course of the financial year to improve compliance with all relevant
prescripts in Supply Chain Management (SCM). An Action Plan was developed and it is monitored on
a monthly basis. A Checklist was also developed and is attached to all Procurement transactions thus
ensuring total compliance with procurement procedures.
• The migration of procurement functions from the Gauteng Department of Finance (GDF) in the 2012/2013
financial year amplified the need for extra human capacity. A work study has since been started by GDF
so as to ensure that the SCM unit is properly capacitated.
_____________________
Ms Thandeka Mbassa
Head of Department: Agriculture and Rural Development
Date: 31 July 2014
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REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014
ACCOUNTING OFFICER’S STATEMENT OF RESPONSIBILITY
Statement of Responsibility for the Annual Financial Statements for the year ended 31 March 2013
The Accounting Officer is responsible for the preparation of the department’s annual financial statements and
for the judgements made in this information.
The Accounting Officer is responsible for establishing, and implementing a system of internal control designed
to provide reasonable assurance as to the integrity and reliability of the annual financial statements
In my opinion, the financial statements fairly reflects the operations of the Department for the financial year
ended 31 March 2013
The external auditors are engaged to express an independent opinion on the AFS of the department.
The Department of Agriculture and Rural Development AFS for the year ended 31 March 2014 have been
examined by the external auditors and their report is presented on page 160.
The Annual Financial Statements of the Department set out on page 164 to page 221 have been approved.
______________________________
Ms Thandeka Mbassa
ACCOUNTING OFFICER
Agriculture and Rural Development
Date 31 March 2014
160 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE AUDITOR-GENERALfor the year ended 31 March 2014
REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE ON VOTE NO. 11: GAUTENG DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENTReport on the financial statements
Introduction
1. I have audited the financial statements of the Gauteng Department of Agriculture and Rural
Development set out on pages 164 to 234, which comprise the appropriation statement, the statement
of financial position as at 31 March 2014, the statement of financial performance, statement of changes
in net assets and the cash flow statement for the year then ended, and the notes, comprising a
summary of significant accounting policies and other explanatory information.
Accounting Officer’s responsibility for the financial statements
2. The accounting officer is responsible for the preparation and fair presentation of these financial
statements in accordance with Modified Cash Standards and the requirements of the Public Finance
Management Act of South Africa, 1999 (Act No 1 of 1999) (PFMA), and for such internal control as the
accounting officer determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor-general’s responsibility
3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004)
(PAA), the general notice issued in terms thereof and International Standards on Auditing. Those
standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 financial statements.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my
audit opinion.
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REPORT OF THE AUDITOR-GENERALfor the year ended 31 March 2014
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Department of Agriculture and Rural Development as at 31 March 2014, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standards as prescribed by the National Treasury and the requirements of the PFMA.
Emphasis of matters
7. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Significant uncertainties
8. With reference to note 22 to the financial statements, the department is the defendant in various court
cases. The ultimate outcome of these matters cannot presently be determined, and no provision for any
liability that may result has been made in the financial statements.
Accruals
9. With reference to note 24 to the financial statements, the department incurred accruals amounting to R9
072 000 for the financial year ended 31 March 2014. This amount, in turn, exceeds the voted funds to be
surrendered of R3 453 000 as per the statement of financial performance by R5 619 000. The amount of
R5 619 000 would have resulted in unauthorised expenditure if the balance was settled at year end.
Expenses recovered from the trading entity
10. With reference to note 16 to the financial statements, the department recovered management fees and
general expenses amounting to R7 030 000 from the Cost Recovery trading entity, for expenditure that
was incurred by the department during the year on behalf of the entity. The amount received was offset
against total expenditure incurred. This amount did not form part of the departmental revenue to be
surrendered.
Additional matters
11. I draw attention to the matters below. My opinion is not modified in respect of these matters.
Unaudited supplementary schedules
12. The supplementary information set out on pages 223 to 234 does not form part of the financial
statements and is presented as additional information. I have not audited these schedules and,
accordingly, I do not express an opinion thereon.
Report on other legal and regulatory requirements
13. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.
Predetermined objectives
14. 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 2014
162 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE AUDITOR-GENERALfor the year ended 31 March 2014
• Programme (2): Agriculture and rural development on pages 44 to 72
15. I evaluated the reported performance information against the overall criteria of usefulness and reliability.
16. I evaluated the usefulness of the reported performance information to determine whether it was
presented in accordance with the National Treasury’s annual reporting principles and whether the
reported performance was consistent with the planned programmes. I further performed tests to
determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound
and relevant, as required by the National Treasury’s Framework for managing programme performance
information.
17. I assessed the reliability of the reported performance information to determine whether it was valid,
accurate and complete.
18. I did not raise any material findings on the usefulness and reliability of the reported performance
information for agriculture and rural development programmes.
Additional matter
19. Although I raised no material findings on the usefulness and reliability of the reported performance
information for the selected programmes, I draw attention to the following matters:
Achievement of planned targets
20. Refer to the annual performance report on pages 36 to 44 for information on the achievement of the
planned targets for the year.
Compliance with laws and regulations
21. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:
Annual financial statements
22. The financial statements submitted for auditing were not prepared in accordance with the prescribed
financial reporting framework and supported by full and proper records as required by section 40(1)
(a) and (b) of the PFMA. Material misstatements of expenditure and disclosure items identified by the
auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit
opinion.
Human resource management
23. Employees were appointed without verifying the criminal record checks as required by Public Service
Regulation 1/VII/D8 (PSR).
Expenditure management
24. Effective steps were not taken to prevent irregular expenditure as required by section 38(1)(c)(ii) of the
PFMA and Treasury Regulations 9.1.1 (TR).
163Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
REPORT OF THE AUDITOR-GENERALfor the year ended 31 March 2014
25. Contractual obligations and money owed by the department were not always settled within 30 days or an
agreed period, as required by section 38(1)(f) of the PFMA and TR 8.2.3.
Asset management
26. Proper control systems to safeguard and maintain assets were not implemented as required by section
38(1)(d) of the Public Finance Management Act and Treasury Regulation 10.1.1(a). Assets were not
adequately managed, reconciled and verified throughout the year.
Internal control
27. I considered internal control relevant to my audit of the financial statements, performance report and
compliance with legislation. The matters reported below are limited to the significant internal control
deficiencies that resulted in the findings on compliance with legislation included in this report.
Leadership
28. Leadership did not exercise adequate oversight of financial reporting, compliance and related internal
controls.
Financial and performance management
29. Management did not adequately review the financial statements and information supporting disclosure
notes for completeness and accuracy prior to their submission for audit.
30. Management did not adequately review and monitor compliance with the PFMA and the PSR.
Other reports
Investigations
31. The forensic unit is performing investigations at the request of the department. The investigations were
initiated on allegations of possible fraud and misappropriation of the department’s assets. The outcomes
of the investigations are not yet finalised.
Johannesburg31 July 2014Annual Financial Statements
164 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
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Ap
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20
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Ad
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Exp
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itu
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AT
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Cur
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men
tTr
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150,
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3,94
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331
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2.
AG
RIC
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E A
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R
UR
AL
DEV
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PM
EN
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aym
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Tran
sfer
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bsid
ies
Paym
ent f
or c
apita
l as
sets
Paym
ent f
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ets
217,
911
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6,34
221
6,33
39
100.
0%20
3,76
420
4,30
337
,311
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-35
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35,8
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100.
0%32
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30,7
471,
237
--
1,23
795
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.3%
9,07
58,
587
--
--
--
--
-
3.
EN
VIR
ON
ME
NT
A
FFA
IRS
Cur
rent
pay
men
t Tr
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asse
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137,
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136,
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-5,
976
--
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949
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8,60
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--
--
--
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-
……
……
.Su
bto
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55
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77-
-5
54
,177
54
3,69
810
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98.1
%51
7,65
951
5,8
88
165Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
PA
RT
ME
NT
OF
AG
RIC
ULT
UR
E A
ND
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Sfo
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20
14
20
13/1
42
012
/13
Fin
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Ap
pro
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Exp
end
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xpen
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(bro
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econ
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AD
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Dep
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Aid
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otal
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)54
9,13
951
5,88
8
166 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
PA
RT
ME
NT
OF
AG
RIC
ULT
UR
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ND
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20
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42
012
/13
Ad
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Ap
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Shif
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--
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--
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517,
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515
,887
167Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
PA
RT
ME
NT
OF
AG
RIC
ULT
UR
E A
ND
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20
14
20
13/1
42
012
/13
AD
MIN
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RA
TIO
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Det
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-p
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Ad
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Ap
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6,17
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Tran
sfer
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--
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t for
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S
EN
IOR
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NA
GE
ME
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Cur
rent
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men
t34
,311
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912,
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28Tr
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OR
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urre
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.2%
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505
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795
Paym
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1.4
F
INA
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IAL
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NT
Cur
rent
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.8%
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,011
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49
-3,
94
315
6,5
9215
5,6
1597
79
9.4
%14
3,5
3114
3,51
7
168 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
PA
RT
ME
NT
OF
AG
RIC
ULT
UR
E A
ND
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20
14
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42
012
/13
AD
MIN
IST
RA
TIO
N
Eco
no
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cla
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Ad
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Ap
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Fin
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itu
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rent
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men
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nsat
ion
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s90
,566
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90,5
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,892
2,67
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.0%
81,5
1481
,509
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ds a
nd s
ervi
ces
59,7
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)3,
943
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,330
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,385
54,3
83In
tere
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nt o
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nd-
7-
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-10
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1414
Tran
sfer
s an
d su
bsid
ies
to:
Pro
vinc
es a
nd m
unic
ipal
ities
--
--
--
--
-D
epar
tmen
tal a
genc
ies
and
acco
unts
549
347
-89
689
6-
100.
0%-
-
Hig
her e
duca
tion
inst
itutio
ns-
--
--
--
--
Fore
ign
gove
rnm
ents
and
inte
rnat
iona
l org
anis
atio
ns
--
--
--
--
-
Pub
lic c
orpo
ratio
ns a
nd p
rivat
e
ente
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es
--
--
--
--
-
Non
-pro
fit in
stitu
tions
-
--
--
--
--
Hou
seho
lds
325
284
-60
960
9-
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0%60
59G
ifts
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dona
tions
--
--
--
--
-
Paym
ent
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tal a
sset
sB
uild
ings
and
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xed
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ctur
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--
--
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-
Mac
hine
ry a
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quip
men
t1,
430
1,00
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2,43
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7%6,
202
6,20
2H
erita
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s-
--
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cial
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tary
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ets
--
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--
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-B
iolo
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ets
--
--
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il as
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-
--
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--
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600
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Paym
ents
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s-
25-
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-10
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-75
6
Tota
l15
2,6
49
-3,
94
315
6,5
9215
5,6
1597
79
9.4
%14
3,5
3114
3,51
6
169Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
PA
RT
ME
NT
OF
AG
RIC
ULT
UR
E A
ND
RU
RA
L D
EV
EL
OP
ME
NT
VO
TE
11
AP
PR
OP
RIA
TIO
N S
TA
TE
ME
NT
Sfo
r th
e ye
ar e
nd
ed 3
1 M
arch
20
14
20
13/1
42
012
/13
AG
RIC
ULT
UR
E A
ND
RU
RA
L
DEV
ELO
PM
EN
T
Det
ail p
er s
ub
-p
rog
ram
me
Ad
just
ed
Ap
pro
pri
atio
n
Shif
tin
g
of
Fun
ds
Vir
emen
tFi
nal
Ap
pro
pri
atio
n
Act
ual
Exp
end
itu
re
Var
ian
ceE
xpen
dit
ure
as
% o
f fi
nal
ap
pro
pri
atio
n
Fin
al
Ap
pro
pri
atio
n
Act
ual
exp
end
itu
re
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
%R
’00
0R
’00
02
.1
SU
STA
INA
BLE
RE
SOU
RC
E
MA
NA
GE
ME
NT
Cur
rent
pay
men
t17
,905
(443
)-
17,4
6217
,468
(6)
100.
0%14
,453
14,1
67Tr
ansf
ers
and
subs
idie
s13
,476
(787
)-
12,6
8912
,689
-10
0.0%
14,4
1615
,050
Paym
ent f
or c
apita
l ass
ets
--
--
--
--
-Pa
ymen
t for
fina
ncia
l ass
ets
--
--
--
--
-
2.2
F
AR
ME
R S
UP
PO
RT
&
DEV
ELO
PM
EN
TC
urre
nt p
aym
ent
100,
548
311
170
101,
029
101,
029
-10
0.0%
106,
357
106,
356
Tran
sfer
s an
d su
bsid
ies
12,6
85-
-12
,685
12,6
85-
100.
0%5,
500
5,50
0Pa
ymen
t for
cap
ital a
sset
s1,
237
--
1,23
795
628
177
.3%
4,90
44,
416
Paym
ent f
or fi
nanc
ial a
sset
s-
--
--
--
--
2.3
V
ETE
RIN
AR
Y S
ER
VIC
ES
Cur
rent
pay
men
t56
,870
(23)
(3,1
89)
53,6
5853
,584
7499
.9%
46,9
0246
,901
Tran
sfer
s an
d su
bsid
ies
--
--
--
--
-Pa
ymen
t for
cap
ital a
sset
s-
--
--
--
--
Paym
ent f
or fi
nanc
ial a
sset
s-
--
--
--
--
2.4
R
ESE
AR
CH
&
TE
CH
NO
LOG
Y D
EV S
ER
Cur
rent
pay
men
t17
,176
922
-18
,098
18,1
57(5
9)10
0.3%
14,9
8916
,106
Tran
sfer
s an
d su
bsid
ies
5,67
9(1
,163
)-
4,51
64,
516
-10
0.0%
7,50
25,
197
Paym
ent f
or c
apita
l ass
ets
--
--
--
-4,
171
4,17
1Pa
ymen
t for
fina
ncia
l ass
ets
--
--
--
--
-
170 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
PA
RT
ME
NT
OF
AG
RIC
ULT
UR
E A
ND
RU
RA
L D
EV
EL
OP
ME
NT
VO
TE
11
AP
PR
OP
RIA
TIO
N S
TA
TE
ME
NT
Sfo
r th
e ye
ar e
nd
ed 3
1 M
arch
20
14
2.5
A
GR
ICU
LTU
RA
L
EC
ON
OM
ICS
SER
VC
urre
nt p
aym
ent
18,4
732,
657
-21
,130
21,1
30-
100.
0%17
,612
17,3
23Tr
ansf
ers
and
subs
idie
s5,
471
--
5,47
15,
471
-10
0.0%
5,00
05,
000
Paym
ent f
or c
apita
l ass
ets
--
--
--
--
-Pa
ymen
t for
fina
ncia
l ass
ets
--
--
--
--
-
2.6
R
UR
AL
DEV
ELO
PM
EN
T
CO
RD
INA
TIO
NC
urre
nt p
aym
ent
6,93
9(1
,974
)-
4,96
54,
965
-10
0.0%
3,45
13,
450
Tran
sfer
s an
d su
bsid
ies
-50
0-
500
500
-10
0.0%
--
Paym
ent f
or c
apita
l ass
ets
--
--
--
--
-Pa
ymen
t for
fina
ncia
l ass
ets
--
--
--
--
-
Tota
l2
56
,45
9-
(3,0
19)
25
3,4
40
25
3,15
029
09
9.9
%24
5,2
57
243,
637
20
13/1
42
012
/13
AG
RIC
ULT
UR
E A
ND
RU
RA
L D
EVE
LOP
ME
NT
Eco
no
mic
cla
ssifi
cati
on
Ad
just
ed
Ap
pro
pri
atio
n
Shif
tin
g o
f Fu
nd
sV
irem
ent
Fin
al
Ap
pro
pri
atio
n
Act
ual
Exp
end
itu
re
Var
ian
ceE
xpen
dit
ure
as
% o
f fi
nal
ap
pro
pri
atio
n
Fin
al
Ap
pro
pri
atio
n
Act
ual
exp
end
itu
re
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
%R
’00
0R
’00
0C
urre
nt p
aym
ents
Com
pens
atio
n of
em
ploy
ees
104,
480
-92
410
5,40
410
5,32
875
99.9
%90
,665
90,6
40G
oods
and
ser
vice
s11
3,43
11,
450
(3,9
43)
110,
938
111,
005
(67)
100.
1%11
3,09
911
3,66
3In
tere
st a
nd re
nt o
n la
nd-
--
--
-10
0.0%
--
171Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
PA
RT
ME
NT
OF
AG
RIC
ULT
UR
E A
ND
RU
RA
L D
EV
EL
OP
ME
NT
VO
TE
11
AP
PR
OP
RIA
TIO
N S
TA
TE
ME
NT
Sfo
r th
e ye
ar e
nd
ed 3
1 M
arch
20
14
Tra
nsf
ers
and
su
bsi
die
s to
:P
rovi
nces
and
mun
icip
aliti
es5,
400
500
-5,
900
5,90
0-
100.
0%6,
435
6,18
5D
epar
tmen
tal a
genc
ies
and
acco
unts
7,05
6(1
,896
)-
5,16
05,
160
-10
0.0%
5,41
54,
343
Hig
her e
duca
tion
inst
itutio
ns2,
423
733
-3,
156
3,15
6-
100.
0%3,
996
3,79
7Fo
reig
n go
vern
men
ts a
nd
inte
rnat
iona
l org
anis
atio
ns
--
--
--
--
-
Pub
lic c
orpo
ratio
ns a
nd p
rivat
e
ente
rpris
es
22,4
32(7
87)
-21
,645
21,6
45-
100.
0%16
,572
16,4
22
Non
-pro
fit in
stitu
tions
-
--
--
--
--
Hou
seho
lds
--
--
--
--
-G
ifts
and
dona
tions
--
--
--
--
-
Pay
men
t f
or
cap
ital
ass
ets
Bui
ldin
gs a
nd o
ther
fixe
d st
ruct
ures
--
--
--
--
-M
achi
nery
and
equ
ipm
ent
1,23
7-
-1,
237
956
281
77.3
%9,
075
8,58
7H
erita
ge a
sset
s-
--
--
--
--
Spe
cial
ised
mili
tary
ass
ets
--
--
--
--
-B
iolo
gica
l ass
ets
--
--
--
--
-La
nd a
nd s
ubso
il as
sets
-
--
--
--
--
Inta
ngib
le a
sset
s-
--
--
--
--
Pay
men
ts f
or
fin
anci
al a
sset
s-
--
--
--
--
Tota
l2
56
,45
9-
(3,0
19)
25
3,4
40
25
3,15
029
09
9.9
%24
5,2
57
243,
637
172 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
PA
RT
ME
NT
OF
AG
RIC
ULT
UR
E A
ND
RU
RA
L D
EV
EL
OP
ME
NT
VO
TE
11
AP
PR
OP
RIA
TIO
N S
TA
TE
ME
NT
Sfo
r th
e ye
ar e
nd
ed 3
1 M
arch
20
14
20
13/1
42
012
/13
EN
VIR
ON
ME
NT
AFF
AIR
S
Det
ail p
er s
ub
-pro
gra
mm
e
Ad
just
ed
Ap
pro
pri
atio
n
Shif
tin
g
of
Fun
ds
Vir
emen
tFi
nal
Ap
pro
pri
atio
n
Act
ual
Exp
end
itu
re
Var
ian
ceE
xpen
dit
ure
as
% o
f fi
nal
ap
pro
pri
atio
n
Fin
al
Ap
pro
pri
atio
n
Act
ual
exp
end
itu
re
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
%R
’00
0R
’00
03.
1
EN
VIR
ON
PO
LIC
Y, P
LAN
NIN
G &
CO
OR
DIN
AT
ION
Cur
rent
pay
men
t15
,868
1,41
8-
17,2
8617
,285
110
0.0%
10,4
9510
,478
Tran
sfer
s an
d su
bsid
ies
--
--
--
--
-Pa
ymen
t for
cap
ital a
sset
s-
--
--
--
--
Paym
ent f
or fi
nanc
ial a
sset
s-
--
--
--
--
3.2
C
OM
PLI
AN
CE
&
EN
FOR
CE
ME
NT
Cur
rent
pay
men
t33
,419
154
-33
,573
33,5
721
100.
0%28
,100
28,1
11Tr
ansf
ers
and
subs
idie
s-
--
--
--
--
Paym
ent f
or c
apita
l ass
ets
--
--
--
--
-Pa
ymen
t for
fina
ncia
l ass
ets
--
--
--
--
-
3.3
E
NV
IRO
NM
EN
TAL
QU
ALI
TY
MA
NA
GE
ME
NT
Cur
rent
pay
men
t30
,269
(1,6
35)
-28
,634
28,3
6327
199
.1%
27,3
2327
,192
Tran
sfer
s an
d su
bsid
ies
1,42
5-
-1,
425
1,42
5-
100.
0%-
-Pa
ymen
t for
cap
ital a
sset
s70
--
7010
3(3
3)14
7.1%
--
Paym
ent f
or fi
nanc
ial a
sset
s-
--
--
--
--
3.4
B
IOD
IVE
RSI
TY
MA
NA
GE
ME
NT
Cur
rent
pay
men
t58
,112
63(9
24)
57,2
5148
,339
8,91
284
.4%
54,3
5354
,353
Tran
sfer
s an
d su
bsid
ies
5,90
6-
-5,
906
5,84
660
--
-Pa
ymen
t for
cap
ital a
sset
s-
--
--
--
--
Pay
men
t fo
r fi
nan
cial
ass
ets
--
--
--
99.
0%
8,6
00
8,6
00
Tota
l14
5,0
69-
(924
)14
4,1
45
134
,933
9,2
1293
.6%
128
,871
128
,734
173Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DE
PA
RT
ME
NT
OF
AG
RIC
ULT
UR
E A
ND
RU
RA
L D
EV
EL
OP
ME
NT
VO
TE
11
AP
PR
OP
RIA
TIO
N S
TA
TE
ME
NT
Sfo
r th
e ye
ar e
nd
ed 3
1 M
arch
20
14
20
12/1
32
012
/13
E
NV
IRO
NM
EN
T A
FFA
IRS
E
con
om
ic c
lass
ifica
tio
n
Ad
just
ed
Ap
pro
pri
atio
n
Shif
tin
g
of
Fun
ds
Vir
emen
tFi
nal
Ap
pro
pri
atio
n
Act
ual
Exp
end
itu
re
Var
ian
ceE
xpen
dit
ure
as
% o
f fi
nal
ap
pro
pri
atio
n
Fin
al
Ap
pro
pri
atio
n
Act
ual
exp
end
itu
re
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
R’0
00
%R
’00
0R
’00
0C
urr
ent
pay
men
tsC
ompe
nsat
ion
of e
mpl
oyee
s10
8,58
6-
(924
)10
7,66
298
,404
9,25
891
.4%
95,4
2795
,292
Goo
ds a
nd s
ervi
ces
29,0
82-
-29
,082
29,1
56(7
4)10
0.3%
24,8
4424
,842
Inte
rest
and
rent
on
land
--
--
--
--
-
Tra
nsf
ers
and
su
bsi
die
s to
:P
rovi
nces
and
mun
icip
aliti
es1,
425
--
1,42
51,
425
-10
0.0%
--
Dep
artm
enta
l age
ncie
s an
d ac
coun
ts-
--
--
--
--
Hig
her e
duca
tion
inst
itutio
ns-
--
--
--
--
Fore
ign
gove
rnm
ents
and
inte
rnat
iona
l
orga
nisa
tions
--
--
--
--
-
Pub
lic c
orpo
ratio
ns a
nd p
rivat
e
ente
rpris
es
--
--
--
--
-
Non
-pro
fit in
stitu
tions
-
--
--
--
--
Hou
seho
lds
--
--
--
--
-G
ifts
and
dona
tions
--
--
--
--
-
Pay
men
t f
or
cap
ital
ass
ets
Bui
ldin
gs a
nd o
ther
fixe
d st
ruct
ures
5,90
6-
-5,
906
5,83
868
98.8
%8,
600
8,60
0M
achi
nery
and
equ
ipm
ent
70-
-70
110
(40)
157.
1%-
-H
erita
ge a
sset
s-
--
--
--
--
Spe
cial
ised
mili
tary
ass
ets
--
--
--
--
-B
iolo
gica
l ass
ets
--
--
--
--
-La
nd a
nd s
ubso
il as
sets
-
--
--
--
--
Inta
ngib
le a
sset
s-
--
--
--
--
Pay
men
ts f
or
fin
anci
al a
sset
s-
--
--
--
--
Tota
l14
5,0
69-
(924
)14
4,1
45
134
,933
9,2
1293
.6%
128
,871
128
,734
174 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2014
Notes to the Appropriation Statement
1.1 Detail of transfers and subsidies as per Appropriation Act (after Virement):
Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-
H) to the Annual Financial Statements.
1.2 Detail of specifically and exclusively appropriated amounts voted (after Virement):
Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.
1.3 Detail on payments for financial assets
Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual
Financial Statements.
1.4 Explanations of material variances from Amounts Voted (after Virement):
4.1 Per programme Final
Appropriation
Actual
Expenditure
Variance
R’000
Variance as a % of
Final Appropriation1. Administration 156,592 155,615 977 0.62%2. Agriculture and Rural
Development253,440 253,150 290 0.11%
3. Environment Affairs 144,145 134,933 9,212 6.39%
4.2 Per economic classification Final
Appropriation
Actual
Expenditure
Variance Variance as a % of
Final AppropriationR’000 R’000 R’000 R’000
Current paymentsCompensation of employees 303,632 291,624 12,008 3.95%Goods and services 202,077 201,491 586 0.29%Interest and rent on land 7 7 - 0.00%Unauthorised expenditure
approved
- - - -
Transfers and subsidies
Provinces and municipalities 7,325 7,325 - 0.00%Departmental agencies and
accounts
6,056 6,056 - 0.00%
Higher education institutions 3,156 3,156 - 0.00%Public corporations and private
enterprises
- - - -
Foreign governments and
international organisations
21,645 21,645 - 0.00%
Non-profit institutions - - - -Households 609 609 - 0.00%Gifts and donations - - - -Payments for capital assets
175Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2014
Buildings and other fixed
structures
5,906 5,838 60 1.15%
Machinery and equipment 3,739 5,922 (2,183) (58.38%)Heritage assets - - - -Specialised military assets - - - -Biological assets - - - -Land and subsoil assets - - - -Intangible assets - - - -
Payments for financial assets 25 25 - 0.00%
4.3 Per conditional grant Final
Appropriation
Actual
Expenditure
Variance Variance as
a % of Final
AppropriationR’000 R’000 R’000 R’000
Agriculture,Forestry & FisheriesIlima/Letsema Projects 17,538 17,538 - 0.00%Land Care P Grt:Pov Re&Inf 6,163 6,163 - 0.00%Compr Agric Supp Pr Grnt 55,880 55,760 120 0.21%EPWP:Integrated Incentive Grant 606 606 - 0.00%
5. Reconciliation of the underspending as reported in the Appropriation Statement
2013/14 2012/13R’000 R’000
Actual underspending as per the
allocated funds
3,449 1,721
Actual amount received from
Cost Recovery Trading Entity
5,441 -
Amount receivable from Cost
Recovery Trading Entity relating
to Management Fees
1,589 -
TOTAL 10,479 1,721
The Department recovered management fees and general expenses amounting to R7 030 000 from the Cost
Recovery Trading Entity, for expenditure that was incurred by the Department during the year of the entity. The amount
received was offset against total expenditure incurred. This amount did not form part of the department revenue to be
surrendered.
176 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
STATEMENT OF FINANCIAL PERFORMENCEfor the year ended 31 March 2014
Note 2013/14 2012/13R’000 R’000
REVENUE Annual appropriation 1 554,177 517,659Departmental revenue 3 1,030 2,106
TOTAL REVENUE 555,207 519,765
EXPENDITURE Current expenditureCompensation of employees 4 291,623 267,596Goods and services 5 201,487 192,732Interest and rent on land 6 7 14Unauthorised expenditure approved without funding 10 5,441 -
Total current expenditure 498,558 460,342
Transfers and subsidiesTransfers and subsidies 8 38,792 30,807Total transfers and subsidies 38,792 30,807
Expenditure for capital assetsTangible assets 9 11,760 23,390Intangible assets 9 - 593Total expenditure for capital assets 11,760 23,983
Payments for financial assets 7 25 756
TOTAL EXPENDITURE 549,135 515,888
SURPLUS/(DEFICIT) FOR THE YEAR 6,072 3,877
Reconciliation of Net Surplus/(Deficit) for the year Voted funds 5,042 1,771
Annual
appropriation
4,922 1,485
Conditional grants 120 286Departmental revenue and NRF Receipts 16 1,030 2,106SURPLUS/(DEFICIT) FOR THE YEAR 6,072 3,877
177Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
STATEMENT OF FINANCIAL POSITIONas at 31st March 2014
Note 2013/14 2012/13R’000 R’000
ASSETS
Current assets
5,601 8,379Unauthorised expenditure 10 - 5,441Cash and cash equivalents 11 2,395 32Prepayments and advances 13 40 30Receivables 14 3,166 2,876
TOTAL ASSETS 5,601 8,379
LIABILITIES
Current liabilities
5,601 8,379Voted funds to be surrendered to
the Revenue Fund
15 4,991 1,721
Departmental revenue and NRF 16 153 555Bank overdraft 17 - 6,035Payables 18 457 68
TOTAL LIABILITIES 5,601 8,379
NET ASSETS - -
178 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
CASH FLOW STATEMENTfor the year ended 31 March 2014
Note 2013/14 2012/13R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts 555,207 519,765Annual appropriated funds received 1.1 554,177 517,659Departmental revenue received 3 1,030 2,026
Net (increase)/decrease in working capital 5,530 2,454Surrendered to Revenue Fund (3,204) (41,649)Current payments (498,551) (460,342)Interest paid 6 7Payments for financial assets (25) (756)Transfers and subsidies paid (38,792) (30,807)Net cash flow available from operating activities 20 20,158 (11,335)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for capital assets 9 (11,760) (23,983)Net cash flows from investing activities (11,760) (23,983)
Net increase/(decrease) in cash and cash equivalents 8,398 (35,318)
Cash and cash equivalents at beginning of period (6,003) 29,315
Cash and cash equivalents at end of period 21 2,395 (6,003)
179Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ACCOUNTING POLICIESfor the year ended 31 March 2014
1. Accounting Policies
Summary of significant accounting policies
The financial statements have been prepared in accordance with the following policies, which have been applied
consistently in all material aspects, unless otherwise indicated.
The historical cost convention has been used, except where otherwise indicated. Management has used assessments
and estimates in preparing the annual financial statements. These are based on the best information available at
the time of preparation.
Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the
financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA),
Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the
annual Division of Revenue Act.
1 Basis of preparation
The financial statements have been prepared in accordance with the Modified Cash Standard.
2 Going concern
The financial statements have been prepared on a going concern basis.
3 Presentation currency
Amounts have been presented in the currency of the South African Rand (R) which is also the functional
currency of the department.
4 Rounding
Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).
5 Foreign currency translation
Cash flows arising from foreign currency transactions are translated into South African Rands using the
exchange rates prevailing at the date of payment / receipt.
6 Current year comparison with budget
A comparison between the approved, final budget and actual amounts for each programme and economic
classification is included in the appropriation statement.
7 Revenue
7.1 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 financial performance on the date the appropriation
becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the
statement of financial performance on the date the adjustments become effective.
The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is
recognised as a payable / receivable in the statement of financial position.
180 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ACCOUNTING POLICIESfor the year ended 31 March 2014
7.2 Departmental revenue
Departmental revenue is recognised in the statement of financial performance when received and is
subsequently paid into the relevant revenue fund, unless stated otherwise.
Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the
statement of financial position.
7.3 Accrued departmental revenue
Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the
financial statements when:
• it is probable that the economic benefits or service potential associated with the transaction will flow to
the department; and
• the amount of revenue can be measured reliably.
The accrued revenue is measured at the fair value of the consideration receivable.
Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from
collecting agents.
8 Expenditure
8.1 Compensation of employees
8.1.1 Salaries and wages
Salaries and wages are recognised in the statement of financial 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 financial performance on the date of payment.
Social contributions made by the department in respect of ex-employees are classified as transfers to
households in the statement of financial performance on the date of payment.
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 financial performance on the date of payment. The expense is classified
as a capital expense if the total consideration paid is more than the capitalisation threshold.
8.3 Accrued expenditure payable
Accrued expenditure payable is recorded in the notes to the financial statements when the goods are
received or, in the case of services, when they are rendered to the department.
Accrued expenditure payable is measured at cost.
8.4 Leases
8.4.1 Operating leases
Operating lease payments made during the reporting period are recognised as current expenditure in the
statement of financial performance on the date of payment.
The operating lease commitments are recorded in the notes to the financial statements.
181Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ACCOUNTING POLICIESfor the year ended 31 March 2014
8.4.2 Finance leases
Finance lease payments made during the reporting period are recognised as capital expenditure in the
statement of financial performance on the date of payment.
The finance lease commitments are recorded in the notes to the financial statements and are not
apportioned between the capital and interest portions.
Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:
• cost, being the fair value of the asset; or
• the sum of the minimum lease payments made, including any payments made to acquire ownership
at the end of the lease term, excluding interest.
9 Aid Assistance
9.1 Aid assistance received
Aid assistance received in cash is recognised in the statement of financial performance when received.
In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is
measured at fair value.
Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are
required to be refunded to the donor are recognised as a payable in the statement of financial position.
9.2 Aid assistance paid
Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid
assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of
financial position.
10 Cash and cash equivalents
Cash and cash equivalents are stated at cost in the statement of financial position.
Bank overdrafts are shown separately on the face of the statement of financial position.
For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits
held, other short-term highly liquid investments and bank overdrafts.
11 Prepayments and advances
Prepayments and advances are recognised in the statement of financial position when the department
receives or disburses the cash.
Prepayments and advances are initially and subsequently measured at cost.
<Indicate when prepayments are expensed and under what circumstances.>
12 Loans and receivables
Loans and receivables are recognised in the statement of financial position at cost plus accrued interest,
where interest is charged, less amounts already settled or written-off.
13 Investments
Investments are recognised in the statement of financial position at cost.
182 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ACCOUNTING POLICIESfor the year ended 31 March 2014
14 Impairment of financial assets
Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded
carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be
received from that asset, is recorded in the notes to the financial statements.
15 Payables
Loans and receivables are recognised in the statement of financial position at cost.
16 Capital Assets
16.1 Immovable capital assets
Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable
capital assets acquired through a non-exchange transaction is measured at fair value as at the date of
acquisition.
Where the cost of immovable capital assets cannot be determined accurately, the immovable capital
assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the
fair value is used.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are 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.
16.2 Movable capital assets
Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable
capital assets acquired through a non-exchange transaction is measured at fair value as at the date of
acquisition.
Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are
measured at fair value and where fair value cannot be determined; the movable assets are measured at R1.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1.
Movable 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 movable asset is recorded by another department/entity in which case the completed
project costs are transferred to that department.
183Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ACCOUNTING POLICIESfor the year ended 31 March 2014
16.3 Intangible assets
Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets
acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.
Internally generated intangible assets are recorded in the notes to the financial statements when the
department commences the development phase of the project.
Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are
measured at fair value and where fair value cannot be determined; the intangible assets are measured at
R1.
All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are 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.
17 Provisions and Contingents
17.1 Provisions
Provisions are recorded in the notes to the financial statements when there is a present legal or constructive
obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of
resources embodying economic benefits or service potential will be required to settle the obligation and
a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the
funds required to settle the present obligation at the reporting date.
17.2 Contingent liabilities
Contingent liabilities are recorded in the notes to the financial statements when there is a possible
obligation that arises from past events, and whose existence will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not within the control of the department or when
there is a present obligation that is not recognised because it is not probable that an outflow of resources
will be required to settle the obligation or the amount of the obligation cannot be measured reliably
17.3 Contingent assets
Contingent assets are recorded in the notes to the financial statements when a possible asset arises from
past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events not within the control of the department
17.4 Commitments
Commitments are recorded at cost in the notes to the financial statements when there is a contractual
arrangement or an approval by management in a manner that raises a valid expectation that the department
will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash
184 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ACCOUNTING POLICIESfor the year ended 31 March 2014
18 Unauthorised expenditure
Unauthorised expenditure is recognised in the statement of financial position until such time as the
expenditure is either:
• approved by Parliament or the Provincial Legislature with funding and the related funds are received;
or
• approved by Parliament or the Provincial Legislature without funding and is written off against the
appropriation in the statement of financial performance; or
• transferred to receivables for recovery.
Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.
19 Fruitless and wasteful expenditure
Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The
amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred.
Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved
or transferred to receivables for recovery.
Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be
recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.
20 Irregular expenditure
Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount
recorded is equal to the total value of the irregularity 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 or
transferred to receivables for recovery.
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.
21 Changes in accounting estimates
The effect of a change in an accounting estimate are be recognised prospectively
Nature and amount of a change in an accounting estimate that has an effect in the current period or is
expected to have an effect in future periods, except for the disclosure of the effect on future periods when
it is impracticable to estimate that effect are disclosed.
If the amount of the effect in future periods is not disclosed because estimating it is impracticable, the
department disclose that fact.
185Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
ACCOUNTING POLICIESfor the year ended 31 March 2014
22 Prior period errors
Prior period error is corrected by retrospective restatement except to the extent that it is impracticable to
determine either the period-specific effects or the cumulative effect of the error.
When it is impracticable to determine the period-specific effects of an error on comparative information for
one or more prior periods the department restate the opening balances of recognised assets, liabilities and
net assets for the earliest period for which retrospective restatement is practicable
Similarly, opening balances reflected in the secondary financial information that are affected by a prior
period error are restated accordingly.
When it is impracticable to determine the cumulative effect, at the beginning of the current period, of an error
on all prior periods, the department restate the comparative information to correct the error prospectively
from the earliest date practicable.
A department disclose the following, distinguishing clearly between primary and secondary financial
information:
(a) the nature of the prior period error;
(b) for each prior period presented, to the extent practicable, the amount of the correction for each line
item affected;
(c) the amount of the correction at the beginning of the earliest prior period presented;
(d) the impact on unauthorised expenditure and voted funds to be surrendered (where applicable); and
(e) If retrospective restatement is impracticable for a particular prior period, the circumstances that led to
the existence of that condition and a description of how and from when the error has been corrected.
23 Non-adjusting events after the reporting date
A major event that happened after the balance sheet date was the general election that took place on the
7th May 2014. This has resulted in the change in the Member of Executive Authority for the department.
24 Agent-Principal arrangements
[Insert a description of the nature, circumstances and terms related to agency-principal arrangements and
refer to the relevant note to the financial statements]
186 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
2. Annual Appropriation
2.1 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:
2013/14 2012/13
Final
Appropriation
Actual
Funds Received
Funds
not requested/ not
received
Appropriation
received
R’000 R’000 R’000 R’000
Administration 156,592 156,592 - 143,531
Agriculture 253,440 253,440 - 245,257
Conservation - - - 62,953
Environment 144,145 144,145 - 65,918
Total 554,177 554,177 - 517,659
2.2 Conditional grants
Note
2013/14 2012/13
R’000 R’000
Total grants received 35 80,187 87,872
Provincial grants included in Total Grants received 80,187 87,872
187Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
3. Departmental revenue
Note 2013/14 2012/13
R’000 R’000
Tax revenue
Sales of goods and services other than capital assets 3.1 743 671
Interest, dividends and rent on land 3.2 - 80
Transactions in financial assets and liabilities 3.3 287 1,355
Total revenue collected - 2,106
Departmental revenue collected 1,030 2,106
3.1 Sales of goods and services other than capital assets
Note 2013/14 2012/13
3 R’000 R’000
Sales of goods and services produced by the department 743 671
Sales by market establishment
Administrative fees
Other sales 743 671
Sales of scrap, waste and other used current goods
Total 743 671
188 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
3.2 Interest, dividends and rent on land
Note 2013/14 2012/13
3 R’000 R’000
Interest - 80
Total - 80
3.3 Transactions in financial assets and liabilities
Note 2013/14 2012/13
3 R’000 R’000
Other Receipts including Recoverable Revenue 287 1,355
Total 287 1,355
189Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
4. Compensation of employees
4.1 Salaries and Wages
Note 2013/14 2012/13
R’000 R’000
Basic salary 199,098 183,831
Performance award 1,537 2,645
Service Based 15,914 14,050
Compensative/circumstantial 15,831 13,025
Periodic payments 7,133 5,308
Other non-pensionable allowances 14,139 13,212
Total 253,652 232,071
4.2 Social contributions
Note 2013/14 2012/13
R’000 R’000
Employer contributions
Pension 25,579 23,724
Medical 12,341 11,757
Bargaining council 51 44
Total 37,971 35,525
Total compensation of employees 291,623 267,596
Average number of employees 897 822
190 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
5. Goods and services
Note 2013/14 2012/13
R’000 R’000
Administrative fees 126 77
Advertising 2,568 7,382
Capital assets less than R5 000 5.1 532 552
Bursaries (employees) 947 820
Catering 3,464 2,033
Communication 7,969 5,889
Computer services 5.2 4,968 7,701
Consultants, contractors and agency/outsourced services 5.3 19,903 25,129
Entertainment 943 106
Audit cost – external 5.4 4,048 2,895
Fleet services 3,551 2,226
Inventory 5.5 71,587 8,205
Consumables 5.6 7,410 60,766
Housing - -
Operating leases - -
Property payments 5.7 35,058 34,409
Rental and hiring - -
Transport provided as part of the departmental activities - 1,400
Travel and subsistence 5.8 24,326 19,845
Venues and facilities 8,042 7,038
Training and development 1,491 3,070
Other operating expenditure 5.9 4,564 3,189
Total 201,487 192,732
The prior year figures for Learnerships (R155,000) and Gifts (R774,000) had to be revised based on the Treasury
guideline issued because of changes in SCOA.
191Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
5.1 Capital assets less than R5 000
Note 2013/14 2012/13
5 R’000 R’000
Tangible assets
Machinery and equipment 532 552
Intangible assets
Total 532 552
5.2 Computer services
Note 2013/14 2012/13
5 R’000 R’000
External computer service providers 4,968 7,701
Total 4,968 7,701
5.3 Consultants, contractors and agency/outsourced services
Note 2013/14 2012/13
5 R’000 R’000
Business and advisory services 6,882 1,349
Infrastructure and planning 7,278 12,212
Laboratory services 132 652
Legal costs 1,168 1,020
Contractors 4,049 9,754
Agency and support/outsourced services 394 142
Total 19,903 25,129
192 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
5.4 Audit cost – External
Note 2013/14 2012/13
5 R’000 R’000
Regularity audits 4,048 2,895
Total 4,048 2,895
5.5 Inventory
Note 2013/14 2012/13
5 R’000 R’000
Clothing material and accessories 1,555 -
Farming supplies 59,698 -
Food and food supplies 1,031 80
Fuel, oil and gas 5,237 3,806
Materials and supplies 2,601 1,683
Medical supplies 28 253
Medicine 1,437 2,383
Total 71,587 8,205
193Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
5.6 Consumables
Note 2013/14 2012/13
5 R’000 R’000
Consumable supplies 5,744 58,706
Household supplies 135 -
Other consumables 5,609 58,706
Stationery, printing and office supplies 1,666 2,060
Total 7,410 60,766
The prior year figures for Learnerships (R155,000) and Gifts (R774,000) had to be revised based on the Treasury
guideline issued because of changes in SCOA.
5.7 Property payments
Note 2013/14 2012/13
5 R’000 R’000
Municipal services 2 207
Other 35,056 34,202
Total 35,058 34,409
5.8 Travel and subsistence
Note 2013/14 2012/13
5 R’000 R’000
Local 22,697 18,253
Foreign 1,629 1,592
Total 24,326 19,845
194 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
5.9 Other operating expenditure
Note 2013/14 2012/13
5 R’000 R’000
Professional bodies, membership and subscription fees 936 308
Resettlement costs 1,028 952
Other 2,600 1,929
Total 4,564 3,189
The prior year figures for Learnerships (R155,000) and Gifts (R774,000) had to be revised based on the Treasury
guideline issued because of changes in SCOA.
6. Interest and rent on land
Note 2013/14 2012/13
R’000 R’000
Interest paid 7 14
Total 7 14
7. Payments for financial assets
Note 2013/14 2012/13
R’000 R’000
Debts written off 7.1 25 756
Total 25 756
195Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
7.1 Debts written off
Note 2013/14 2012/13
7 R’000 R’000
Nature of debts written off
Ex-Employee and Supplier debt written off 25 756
Total 25 756
Total debt written off 25 756
196 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
8. Transfers and subsidies
2013/14 2012/13
R’000 R’000
Note
Provinces and municipalities Annex 1A, 7,325 6,185
Departmental agencies and accounts Annex 1B 6,056 4,343
Higher education institutions Annex 1C 3,156 3,798
Public corporations and private enterprises Annex 1D 21,645 16,422
Households Annex 1E 610 59
Total 38,792 30,807
Unspent funds transferred to the above beneficiaries
9. Expenditure for capital assets
Note 2013/14 2012/13
R’000 R’000
Tangible assets 11,760 23,390
Buildings and other fixed structures 32 5,837 8,600
Machinery and equipment 32 5,923 14,790
Intangible assets - 593
Software 33 - 593
Total 11,760 23,983
9.1 Analysis of funds utilised to acquire capital assets – 2013/14
Voted funds Aid assistance Total
R’000 R’000 R’000
Tangible assets 11,760 - 11,760
Buildings and other fixed structures 5,837 - 5,837
Machinery and equipment 5,923 - 5,923
Total 11,760 - 11,760
197Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
9.2 Analysis of funds utilised to acquire capital assets – 2012/13
Voted funds Aid assistance Total
R’000 R’000 R’000
Tangible assets 23,390 - 23,390
Buildings and other fixed structures 8,600 - 8,600
Machinery and equipment 14,790 - 14,790
Intangible assets 593 - 593
Software 593 - 593
Total 23,983 - 23,983
10. Unauthorised expenditure
10.1 Reconciliation of unauthorised expenditure
Note 2013/14 2012/13
R’000 R’000
Opening balance 5,441 5,441
As restated 5,441 5,441
Less: Amounts approved by Parliament/Legislature
without funding and written off in the Statement of Financial
Performance (5,441)
-
Capital
Current (5,441) -
Transfers and subsidies
Less: Amounts transferred to receivables for recovery 14
Unauthorised expenditure awaiting authorisation /
written off
- 5,441
198 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
10.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification
2013/14 2012/13
R’000 R’000
Current - 5,441
Total - 5,441
10.3 Analysis of unauthorised expenditure awaiting authorisation per
type
2013/14 2012/13
R’000 R’000
Unauthorised expenditure relating to overspending of the vote
or a main division within a vote
- 5,441
Total - 5,441
11. Cash and cash equivalents
Note 2013/14 2012/13
R’000 R’000
Consolidated Paymaster General Account 2,358 -
Cash on hand 37 32
Total 2,395 32
199Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
12. Prepayments and advances
Note 2013/14 2012/13
12 R’000 R’000
Travel and subsistence 40 30
Total 40 30
13. Receivables
2013/2014 2012/13
R’000 R’000 R’000 R’000 R’000
Note
Less than
one year
One to
three
years
Older
than
three
years
Total Total
Claims recoverable 13.1
Annex 3 2,925
- -
2,925 2,788
Recoverable expenditure 13.2 111 - - 111 41
Other debtors 13.3 130 - - 130 47
Total 3,166 - - 3,166 2,876
13.1 Claims recoverable
Note 2013/14 2012/13
14 R’000 R’000
Provincial departments 1,336 1,144
Public entities 1,589 1,644
Total 2,925 2,788
200 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
13.2 Recoverable expenditure (disallowance accounts)
Note 2013/14 2012/13
14 R’000 R’000
Sal: Recoverable
Sal: Reversal Control: CA
Sal: Disallowance Account: CA
Sal: Deduction Disall Acc: CA
Deb Receivable Interest: CA
Sal: Tax Debt: CA
UNP/RC BAS EBT Cntr Acc: Dom
84
15
7
-
-
3
2
20
10
7
1
1
2
-
Total 111 41
13.3 Other debtors
Note 2013/14 2012/13
14 R’000 R’000
Employee Debt Account 130 47
Total 130 47
201Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
14. Voted funds to be surrendered to the Revenue Fund
Note 2013/14 2012/13
R’000 R’000
Opening balance 1,721 39,656
As restated 1,721 39,656
Transfer from statement of financial performance (as
restated)
5,042 1,771
Paid during the year (1,772) (39,706)
Closing balance 4,991 1,721
15. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund
Note 2013/14 2012/13
R’000 R’000
Opening balance 555 392
As restated 555 392
Transfer from Statement of Financial Performance (as
restated)
1,030 2,106
Paid during the year (1,432) (1,943)
Closing balance 153 555
The Department recovered management fees and general expenses amounting to R7 030 000 from the Cost
Recovery Trading Entity, for expenditure that was incurred by the Department during the year of the entity. The amount
received was offset against total expenditure incurred. This amount did not form part of the department revenue to
be surrendered.
202 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
16. Bank Overdraft
Note 2013/14 2012/13
R’000 R’000
Consolidated Paymaster General Account - 6,035
Total - 6,035
17. Payables – current
Note 2013/14 2012/13
R’000 R’000
Clearing accounts 17.1 458 68
Total 458 68
17.1 Clearing accounts
Note 2013/14 2012/13
18 R’000 R’000
Description
Cheques Payables: Dom
Sal:Persal EBT Control Acc:Dom
Outstanding Payments: Dom
Disall Damages& Losses: CA
Debt Receivable Income: CA
Debt Receivable Interest: CA
Sal: Income Tax: CA
Sal: Pension Fund: CL
Sal: Bargaining Councils: CL/SAL: Motor Finance Deduction
1
10
2
-
-
1
379
59
6
4
22
-
11
23
-
8
-
-
Total 458 68
203Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
18. Net cash flow available from operating activities
Note 2013/14 2012/13
R’000 R’000
Net surplus/(deficit) as per Statement of Financial
Performance
6,072 3,877
Add back non cash/cash movements not deemed
operating activities
14,086 (15,212)
(Increase)/decrease in receivables – current (290) 3,082
(Increase)/decrease in prepayments and advances (10) (30)
(Increase)/decrease in other current assets 5,441
Increase/(decrease) in payables – current 389 (598)
Expenditure on capital assets 11,760 23,983
Surrenders to Revenue Fund (3,204) (41,649)
Net cash flow generated by operating activities 20,158 (11,335)
19. Reconciliation of cash and cash equivalents for cash flow purposes
Note 2013/14 2012/13
R’000 R’000
Consolidated Paymaster General account 2,358 (6,035)
Cash on hand 37 32
Total 2,395 (6,003)
204 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
20. Contingent liabilities and contingent assets
20.1 Contingent liabilities
Note 2013/14 2012/13
R’000 R’000
Liable to Nature
Claims against the department Annex 2A 26,992 67
Intergovernmental payables (unconfirmed balances) Annex 4 10 -
Total 27,002 67
21. Commitments
Note 2013/14 2012/13
R’000 R’000
Current expenditure
Approved and contracted 10,887 53,161
Approved but not yet contracted 25,656 6,622
36,543 59,783
Capital expenditure
Approved and contracted - 1,141
Approved but not yet contracted 91 130
91 1,271
Total Commitments 36,634 61,054
Indicate whether a commitment is for longer than a year.
Current: Longer than a year
Current: Shorter than a year
Capital: Longer than a year
Current: Shorter than a year
903
35,640
-
91
TOTAL 36,634
The Department has commitments amounting to R4,887,824.49 which have been approved and contracted by the
Department of Infrastructure Development on behalf of the Department relating to capital works projects.
205Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
22. Accruals
2013/14 2012/13
R’000 R’000
Listed by economic classification
30 Days 30+
Days
Total Total
Goods and services 8,612 208 8,820 23,947
Other 252 - 252 -
Total 8,864 208 9,072 23,947
Note 2013/14 2012/13
R’000 R’000
Listed by programme level
Administration 6,051 7,737
Agriculture
Conservation
Environment
1,707
-
1,314
12,949
2,166
1,095
Total 9,072 23,947
Note 2013/14 2012/13
R’000 R’000
Confirmed balances with other departments Annex 4 - 119
Total - 119
23. Employee benefits
Note 2013/14 2012/13
R’000 R’000
Leave entitlement 12,763 10,653
Service bonus (Thirteenth cheque) 8,163 7,775
Performance awards 1,526 2,610
Capped leave commitments 8,929 8,547
Total 31,381 29,585
206 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014
24. Lease commitments
24.1 Operating leases expenditure
2013/14
Specialised
military
equipment Land
Buildings and
other fixed
structures
Machinery
and
equipment Total
Not later than 1 year - - 3,870 2,759 6,629
Later than 1 year and not
later than 5 years
- - 3,941 - 3,941
Total lease commitments 7,811 2,759 10,570
2012/13
Specialised
military
equipment Land
Buildings and
other fixed
structures
Machinery
and
equipment Total
Not later than 1 year - - 6,395 3,861 10,256
Later than 1 year and not
later than 5 years
- - 6,278 2,574 8,852
Total lease commitments - - 12,673 6,435 19,108
The amount disclosed as Operating Leases included charges for Photocopying Machines and Buildings
207Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
24.2 Finance leases expenditure**
2013/14
Specialised
military
equipment Land
Buildings and
other fixed
structures
Machinery
and
equipment
Total
Not later than 1 year - - - 234 234
Later than 1 year and not later
than 5 years
- - - -
268
-
268
Total lease commitments - - - 502 502
2012/13
Specialised
military
equipment Land
Buildings and
other fixed
structures
Machinery
and
equipment Total
Not later than 1 year 1,501 1,501
Later than 1 year and not later
than 5 years
- - -
516 516
Total lease commitments - - - 2,017 2,017
**This note excludes leases relating to public private partnership as they are separately disclosed to note no.35.
The amount disclosed as Finance Leases includes charges for the use of Motor Vehicles from G-Fleet
208 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
25. Irregular expenditure25.1 Reconciliation of irregular expenditure
Note 2013/14 2012/13
R’000 R’000
Opening balance 15,460 31,298
Add: Irregular expenditure – relating to current
year
5,636 15,203
Less: Prior year amounts condoned - (31,041)
Irregular expenditure awaiting condonation 21,096 15,460
Analysis of awaiting condonation per age
classification
Current year 5,636 15,203
Prior years 15,460 257
Total 21,096 15,460
25.2 Details of irregular expenditure – current year
Incident Disciplinary steps taken/
criminal proceedings
2013/14
R’000
Wrong Calculation of functionality
Points
Under Investigation 3,188
No original Tax Clearance
Certificates
Under Investigation 632
No original B-BBEE certificates Under Investigation 951
No three quotations Under Investigation 828
SBD 4 Under Investigation 37
Total 5,636
209Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
25.3 Details of irregular expenditures under investigation
Incident 2012/13
R’000
Tender awarded was based on the wrong site visit score
Non-submission of 3 quotes
No Tax Clearance Certificates
No three quotations
5,252
325
8,881
745
Total 15,203
26. Fruitless and wasteful expenditure26.1 Reconciliation of fruitless and wasteful expenditure
Note 2013/14 2012/13
R’000 R’000
Opening balance 14 167
Fruitless and wasteful expenditure – relating to current year 13 14
Less: Amounts resolved (14) (167)
Fruitless and wasteful expenditure awaiting resolution 13 14
26.2 Analysis of awaiting resolution per economic classification
2013/14 2012/13
R’000 R’000
Current 13 14
Total 13 14
210 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
26.3 Analysis of Current year’s fruitless and wasteful expenditure
Incident Disciplinary steps taken/
criminal proceedings
2013/14
R’000
SCOA Codes changed and
payments were delayed in April
2013. The Water and Electricity
accounts are still submitted late
from Eskom/Magalies Retail/
Telkom even though requested that
it be forwarded electronically. By
the time invoices are submitted to
the Department for payment it is
already late as the Department in
most instances only have a week to
finalize payments and the normal
payment process is 10 working
days
General Public Bargaining Council
Declared Irrecoverable
Under Investigation
7
6
Total 13
211Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
27. Related party transactions
Revenue received Note 2013/14 2012/13
R’000 R’000
Sales of goods and services other than capital assets 8,287 3,419
Fines, penalties and forfeits 6,015 3,095
Total 14 ,302 6,514
Note 2013/14 2012/13
R’000 R’000
Year end balances arising from revenue/payments
Receivables from related parties - 6,916
Payables to related parties 832 832
Total 832 7,748
Cost Recovery Trading Entity is one of the Department’s related parties. In accordance with the PFMA a Trading
Entity means “Entity operating within the administration of a Department for the provision of sale of goods and
services”. The Entity operates within the full administration of GDARD. All assets that are used in the operation of
the Entity are owned by GDARD. The Entity administers revenue collected by the Nature Reserves, fines issued for
non-compliance of Environmental Laws and money collected for issuing Cities Permits.
The Department is a related party to all Departments within Gauteng Provincial Government as well as their Entities.
During the 2013/2014 Financial Year the Department had transaction with the following Departments/Entities:
Gauteng Department of Infrastructure Development – Building Leases (R 31,308,856-33);
Gauteng Department of Infrastructure Development – Cleaning Services (R 1,417,000-00) Unconfirmed;
Gauteng Department of Social Development – Claims Receivable (R 3,000-00);
Gauteng GCRA – Salary related Claims Receivable (R 158,000-00);
Government Printing Works – Claims Payable (R 4,000-00);
National Department of Labour – Claims Payable (R 10,000-00) Unconfirmed.
G-Fleet - Government vehicles (R3,433,004-13).
28. Key management personnel
No. of Individuals 2013/14 2012/13
R’000 R’000
Political office bearers (provide detail below)
Officials: 1 1,735 1,646
Level 15 to 16 3 2,943 3,861
Level 14 (incl. CFO if at a lower level) 9 9,036 8,438
Total 13,714 13,945
212 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
29. Movable Tangible Capital Assets
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Opening
balance
Curr Year
Adjust-ments
to prior year
balances
Additions Disposals Closing
Balance
R’000 R’000 R’000 R’000 R’000
MACHINERY AND
EQUIPMENT
110,923 7,338 15,686 28,522 105,425
Transport assets 51,200 1,358 9,999 9,225 53,332
Computer equipment 22,806 2,892 4,307 12,292 17,713
Furniture and office
equipment
13,539 667 408 1,821 12,793
Other machinery and
equipment
23,378 2,421 972 5,184 21,587
BIOLOGICAL ASSETS 25,345 19,999 9,625 618 54,351
Biological assets 25,345 19,999 9,625 618 54,351
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS
136,268 27,337 25,311 29,140 159,776
The closing balance include assets amount to R5.6million that could not be verified as at reporting date. The
separate asset register for unverified is kept pending up until the investigation is completed.
213Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
29.1 Additions
ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Cash* Non-cash** (Capital Work
in Progress
current
costs and
finance lease
payments)
Received
current, not
paid
(Paid current
year, received
prior year)
Total
R’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT
5,922 9,794 (30) 15,686
Transport assets 956 9,043 - - 9,999
Computer equipment 3,599 708 - - 4,307
Furniture and office equipment 412 43 - (47) 408
Other machinery and
equipment
955 - - 17 972
BIOLOGICAL ASSETS 9,625 9,625
Biological assets - 9,625 - - 9,625
TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS
5,922 19,419 - (30) 25,311
214 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
29.2 Disposals
DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Sold for cash Transfer out
or destroyed
or scrapped
Total
disposals
Cash Received
Actual
R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT - 28,522 28,522 -
Transport assets - 9,225 9,225 -
Computer equipment - 12,292 12,292 -
Furniture and office equipment - 1,821 1,821 -
Other machinery and equipment - 5,184 5,184 -
BIOLOGICAL ASSETS 570 48 618 2,028
Biological assets 570 48 618 2,028
TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 570 28,570 29,140 2,028
215Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
29.3 Movement for 2012/13
MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Opening
balance
Curr Year
Adjust-ments
to prior year
balances
Additions Disposals Closing
Balance
R’000 R’000 R’000 R’000 R’000
MACHINERY AND EQUIPMENT 74,845 (17,223) 53,510 (209) 110,923
Transport assets 19,707 (2,037) 33,660 (130) 51,200
Computer equipment 27,386 (7,329) 2,790 (41) 22,806
Furniture and office equipment 15,953 (2,609) 200 (5) 13,539
Other machinery and equipment 11,799 (5,248) 16,860 (33) 23,378
BIOLOGICAL ASSETS 15,936 - 9,409 - 25,345
Biological assets 15,936 - 9,409 - 25,345
TOTAL MOVABLE TANGIBLE CAPITAL ASSETS
90,781 (17,223) 62,919 (209) 136,268
216 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
29.4 Minor assets
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2014
Specialised
military
assets
Intangible
assets
Heritage
assets
Machinery
and
equipment
Biological
assets
Total
R’000 R’000 R’000 R’000 R’000 R’000
Opening balance 4 40 20,621 15,233 35,898
Curr Year Adjustments to
Prior Year balances
- - 1,467 (2,092) (625)
Additions - - 3,355 3,355
Disposals (4) - (3,125) (1,871) (5,000)
TOTAL MINOR ASSETS - 40 22,318 11,270 33,614
The closing balance include assets amount to R1.8 million that could not be verified as at reporting date.The
separate asset register for unverified is kept pending up until the investigation is completed.
Specialised
military
assets
Intangible
assets
Heritage
assets
Machinery
and
equipment
Biological
assets
Total
Number of R1 minor
assets
- - - 8 - 8
Number of minor assets
at cost
- - 376 16,246 4,048 20,670
TOTAL NUMBER OF MINOR ASSETS
- - 376 16,254 4,048 20,678
MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013
Specialised
military asset
Intangible
assets
Heritage
assets
Machinery
and
equipment
Biological
assets
Total
R’000 R’000 R’000 R’000 R’000 R’000
Opening balance - 45 40 24,630 12,374 37,089
Curr Year (41) - (4,455) - (4,496)Adjustments to Prior
Year balances
Additions - - - 556 2,859 3,415
Disposals - - - (110) - (110)
TOTAL MINOR
ASSETS
- 4 40 20,621 15,233 35,898
217Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
29.5 Movable assets written off
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2014
Specialised
military
assets
Intangible
assets
Heritage
assets
Machinery
and
equipment
Biological
assets
Total
R’000 R’000 R’000 R’000 R’000 R’000
Assets written off
- - - - 29 29
TOTAL MOVABLE ASSETS
WRITTEN OFF - - - - 29 29
MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2013
Specialised
military
assets
Intangible
assets
Heritage
assets
Machinery
and
equipment
Biological
assets
Total
R’000 R’000 R’000 R’000 R’000 R’000
Assets written off
- - - 4,918 4,918
TOTAL MOVABLE ASSETS
WRITTEN OFF - - - 4,918 4,918
218 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
30. Intangible Capital Assets
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014
Opening
balance
Current Year
Adjust-ments
to prior year
balances
Additions Disposals Closing
Balance
R’000 R’000 R’000 R’000 R’000
SOFTWARE 1,030 1,030
TOTAL INTANGIBLE CAPITAL
ASSETS 1,030 1,030
30.1 Movement for 2012/13
MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013
Opening
balance
Current Year
Adjust-ments
to prior year
balances
Additions Disposals Closing
Balance
R’000 R’000 R’000 R’000 R’000
SOFTWARE 1,161 (724) 593 - 1,030
TOTAL INTANGIBLE CAPITAL
ASSETS 1,161 (724) 593 - 1,030
219Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
31. Immovable Tangible Capital Assets
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31
MARCH 2014
Opening
balance
Curr Year
Adjust-
ments to
prior year
balances
Additions Disposals Closing
Balance
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED
STRUCTURES 113,695 - - 113,695 -
Non-residential
buildings
30,224 - - 30,224 -
Other fixed
structures
83,471 - - 83,471 -
LAND AND SUBSOIL ASSETS 264,965 - - 264,965 -
Land 264,965 - - 264,965 -
TOTAL IMMOVABLE TANGIBLE
CAPITAL ASSETS
378,660 - - 378,660 -
220 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
31.1 Additions
ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31
MARCH 2014
Cash Non-cash (Capital Work
in Progress
current
costs and
finance 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
5,837 - (5,837) - -
Non-residential buildings 3,361 - (3,361) - -
Other fixed structures 2,476 - (2,476) - -
TOTAL ADDITIONS TO IMMOVABLE
TANGIBLE CAPITAL ASSETS 5,837 - (5,837) - -
31.2 Disposals
DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31
MARCH 2014
Sold for
cash
Transfer out
or destroyed
or scrapped
Total
disposals
Cash
Received
Actual
R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES - 113,695 113,695 -
Non-residential buildings - 30,224 30,224 -
Other fixed structures 83,471 83,471 -
LAND AND SUBSOIL ASSETS - 264,965 264,965 -
Land - 264,965 264,965 -
TOTAL DISPOSALS OF IMMOVABLE TANGIBLE
CAPITAL ASSETS - 378,660 378,660 -
221Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014
31.3 Movement for 2012/13
MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31
MARCH 2013
Opening
balance
Curr Year
Adjust-ments
to prior year
balances
Additions Disposals Closing
Balance
R’000 R’000 R’000 R’000 R’000
BUILDINGS AND OTHER FIXED
STRUCTURES
113,179 - 516 - 113,695
Non-residential buildings 113,179 (82,955) - - 30,224
Other fixed structures - 82,955 516 - 83,471
LAND AND SUBSOIL ASSETS 264,965 - - - 264,965
Land 264,965 - - - 264,965
TOTAL IMMOVABLE TANGIBLE
CAPITAL ASSETS
378,144 - 516 - 378,660
31.4 S42 Immovable assets
Assets subjected to transfer in terms of S42 of the PFMA – 2013/14
Number of
assets
Value of
assets
R’000 R’000
BUILDINGS AND OTHER FIXED STRUCTURES
22 113,695
Dwellings - -
Non-residential buildings 13 30,224
Other fixed structures 9 83,471
LAND AND SUBSOIL ASSETS 5 264,965
Land 5 264,965
TOTAL 27 378,660
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235Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014GAUTENG DEPARTMENT OF AGRICULRUE AND
RURAL DEVELOPMENT
COST RECOVERY TRADING ENTITY
236 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE ON COST RECOVERY TRADING ENTITY
Report on the financial statements
Introduction
1. I have audited the financial statements of the Cost Recovery Trading Entity set out on pages 240 to 256, which comprise the appropriation statement, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.
Accounting Officer’s responsibility for the financial statements
2. The accounting officer is responsible for the preparation of these financial statements in accordance with Generally Recognised Accounting Practice and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No 1 of 1999) (PFMA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor-General’s responsibility
3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the 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 financial statements.
5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.
Opinion
6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Cost Recovery Trading Entity as at 31 March 2014, and its financial performance and cash flows for the year then ended in accordance with the Generally Recognised Accounting Practice and the requirements of the PFMA.
Additional matter
7. I draw attention to the matter below. My opinion is not modified in respect of this matter.
Unaudited supplementary schedules
8. The supplementary information set out on pages 223 to 234 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.
237Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Report on other legal and regulatory requirement
9. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.
Predetermined objectives
10. I did not audit performance against predetermined objectives, as the entity’s performance objectives are included as part of the Gauteng Department of Agriculture and Rural Development’s annual performance report.
Compliance with laws and regulations
11. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:
Annual financial statements
12. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records as required by section 40(1)(a) and (b) of the PFMA. Material misstatements of revenue expenditure, assets, liabilities and disclosure items identified by the auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.
Revenue management
13. Appropriation processes were not developed and implemented to provide for the safeguarding of information about revenue, as required by Treasury Regulation 7.2.1. (TR)
Internal control
14. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on compliance with legislation included in this report.
238 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Leadership
15. Leadership did not exercise adequately oversight responsibility of financial reporting, compliance and related internal controls.
Financial and performance management
16. Management did not adequately review the financial statements and information supporting disclosure notes for completeness and accuracy prior to their submission for audit.
17. Management did not adequately review and monitor compliance with PFMA.
Johannesburg
31 July 2013
239Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Contents .................................................................................. Page No.
Statement of Financial Position ..................................................................................................................................240
Statement of Financial Perfomance ..........................................................................................................................241
Statement of Changes in Net Assets .......................................................................................................................242
Statement of Cash Flows ................................................................................................................................................ 243
Accounting policies ............................................................................................................................................................244
Notes to the Annual Financial Statements ..........................................................................................................253
240 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
STATEMENT OF FINANCIAL POSITION
as at 31 March 2014
Figures in rand Notes 2014 2013
R’000 R’000
ASSETS
Current Assets
Receivables from exchange
transactions
5 3,232 12,985
Cash and cash equivalents 6 14,583 8,962
Total Assets 17,815 21,947
LIABILITIES
Current Liabilities
Payables from exchange
transactions
7 1,633 17,738
Total Liabilities 1,633 17,738
NET ASSETS
Capital and Reserves
Accumulated surplus/(deficit) 8 16,182 4,209
Total Net Assets 16,182 4,209
Total Equity and Liabilities 17,815 21,947
241Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
STATEMENT OF FINANCIAL PERFOMANCE
For the year ending 31 March 2014
Figures in rand Notes 2014 2013
R’000 R’000
Revenue from non-exchange
transactions
2 21,445 3,095
Revenue from exchange
transactions
3 8,287 3,420
Total Revenue 29,732 6,515
Expenditure 4
Administrative expenses (14) (20)
Management Fees- Gauteng
Department of Agriculture and
Rural Development
Bad Debts
(4,218)
(10,714)
(2,203)
-
General Expensed
Total Expenditure
(2,812)
(17,759)
-
(2,223)
NET SURPLUS/ DEFICIT FOR
THE YEAR
11,973 4,291
242 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
STATEMENT OF CHANGES IN NET ASSETS
For the year ended 31 March 2014
Figures in rand Accumulated
Surpluses/(deficits)
Total Net Assets
R’000 R’000
Accumulated surplus at 01 April 2012 Restated
(82) (82)
Surplus for the period
Balance at 31 March 2013
4,291
4,209
4,291
4,209
Surplus /(Deficit) for the year 11,973 11,973
Accumulated surplus at 31 March 2014 16,182 16,182
243Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
STATEMENT OF CASH FLOWS
For the year ended 31 March 2014
Figures in rand Notes 2014 2013
R’000 R’000
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Receipts from customers 23,380 6,537
‘
Cash Paid to suppliers and employees (17,759) (3,199)
Net cash inflows/(outflows) from operating activities 9 5,621 3,338
Net Increase/(decrease) in cash and cash equivalents 5,621 3,338
Cash and cash equivalents at the beginning of the year 8,962 5,624
Cash and cash equivalent at end of the year 14,583 8,962
244 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Accounting policies
General Information
Cost Recovery is a trading entity for Gauteng Department of Agriculture and Rural Development and constitutes
0.33% of the operations of the Department. The cost of allocating operational expenses incurred on behalf of Gauteng
Department of Agriculture and Rural Development Cost Recovery Trading Entity (Cost Recovery) would exceed the
benefit of so doing, furthermore the quantity of time spent on the operations that generate income for Cost Recovery
are considered immaterial and therefore do not have a significant impact on Gauteng Department of Agriculture and
Rural Development.
1. Basis of preparation and presentation of the annual financial statements
The annual financial statements were prepared in accordance with Standard of Generally Recognised Accounting
Practice (GRAP) as issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance
Management Act, (Act No1 of 1999). This is the first year of Generally Recognised Accounting Practice (GRAP) adoption.
These annual financial statements were previously prepared in accordance with South African Statements of Generally
Accepted Accounting Practice.
Assets, liabilities, revenue and expenses were not offset, except where offsetting is either required or permitted by
Standard of GRAP. In the absence of an issued and effective Standard of GRAP, accounting policies for material
transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with
Directive 5.
These annual financial statements were prepared on the accrual basis of accounting and incorporate the historical cost
conventions as the basis of measurement, except where specified otherwise. These annual financial statements have
been prepared based on the expectation that the entity will continue to operate as a going concern basis for at least
the next 12 months.
A summary of the significant accounting policies, which have been consistently applied, are disclosed below.
These accounting policies are consistent with the previous period unless explicitly stated otherwise.
These annual financial statements are presented in South African Rand, which is the functional currency of the entity.
1.1. Prior year comparatives
When the presentation or classification of items in the annual financial statements is amended, prior period comparative
amounts are also reclassified and restated, unless such comparative reclassification and / or restatement is not required
by Standard of GRAP. The nature and reason for such reclassification and restatements are also disclosed.
Where material accounting errors, which relate to prior periods have been identified in the current year, the correction is
made retrospectively as far as is practicable and the prior year comparatives are restated accordingly. Where there has
been a change in accounting policy in the current year, the adjustment is made retrospectively as far as is practicable
and the prior year comparatives are restated accordingly.
The presentation and classification of items in the current year is consistent with prior periods.
245Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Accounting policies
1.2. Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual
interest of another entity.
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing
parties in an arm’s length transaction.
The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is
measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective
interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly
or through the use of an allowance account) for impairment or uncollectability.
A financial asset is:
• cash;
• a residual interest of another entity; or
• a contractual right to:
- receive cash or another financial asset from another entity; or
- exchange financial assets or financial liabilities with another entity under conditions that are potentially
favourable to the entity.
A financial liability is any liability that is a contractual obligation to:
• deliver cash or another financial asset to another entity; or
• exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.
Classification
The entity has the following types of financial assets (classes and category) as reflected on the face of the statement of
financial position or in the notes thereto:`
Class Category
Trade and other receivables Financial asset measured at amortised cost
Other receivables from non-exchange transactions Financial asset measured at amortised cost
Cash and cash equivalent Financial asset measured at fair value
The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement
of financial position or in the notes thereto:
Class Category
Other financial liabilities Financial liability measured at amortised cost
Trade and other payables Financial liability measured at amortised cost
Consumer deposits Financial liability measured at amortised cost
246 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Accounting policies
Initial recognition
The entity recognises a financial asset or a financial liability in its statement of financial position when the entity becomes
a party to the contractual provisions of the instrument.
The entity recognises financial assets using trade date accounting.
Initial measurement of financial assets and financial liabilities
The entity measures a financial asset and financial liability initially at its fair value plus transaction costs that are directly
attributable to the acquisition or issue of the financial asset or financial liability.
The entity measures a financial asset and financial liability initially at its fair value [if subsequently measured at fair value].
Subsequent measurement of financial assets and financial liabilities
The entity measures all financial assets and financial liabilities after initial recognition using the following categories:
• Financial instruments at fair value.
• Financial instruments at amortised cost.
• Financial instruments at cost.
All financial assets measured at amortised cost, or cost, are subject to an impairment review.
Fair value measurement considerations
The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active,
the entity establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish
what the transaction price would have been on the measurement date in an arm’s length exchange motivated by
normal operating considerations. Valuation techniques include using recent arm’s length market transactions between
knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially
the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used
by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates
of prices obtained in actual market transactions, the entity uses that technique. The chosen valuation technique makes
maximum use of market inputs and relies as little as possible on entity-specific inputs. It incorporates all factors that
market participants would consider in setting a price and is consistent with accepted economic methodologies for
pricing financial instruments. Periodically, an municipality calibrates the valuation technique and tests it for validity using
prices from any observable current market transactions in the same instrument (i.e. without modification or repackaging)
or based on any available observable market data.
The fair value of a financial liability with a demand feature (e.g. a demand deposit) is not less than the amount payable
on demand, discounted from the first date that the amount could be required to be paid.
247Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Accounting policies
Gains and losses
A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is
recognised in surplus or deficit.
For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus
or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.
Impairment and uncollectibility of financial assets
The entity assess at the end of each reporting period whether there is any objective evidence that a financial asset or
group of financial assets is impaired.
Financial assets measured at amortised cost:
If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred,
the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of
estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial
asset’s original effective interest rate. The carrying amount of the asset is reduced directly OR through the use of an
allowance account. The amount of the loss is recognised in surplus or deficit.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to
an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly
OR by adjusting an allowance account. The reversal does not result in a carrying amount of the financial asset that
exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment
is reversed. The amount of the reversal is recognised in surplus or deficit.
Financial assets measured at cost:
If there is objective evidence that an impairment loss has been incurred on an investment in a residual interest that is
not measured at fair value because its fair value cannot be measured reliably, the amount of the impairment loss is
measured as the difference between the carrying amount of the financial asset and the present value of estimated future
cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not
reversed.
248 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Accounting policies
Derecognition
Financial assets
The entity derecognises a financial asset only when:
• the contractual rights to the cash flows from the financial asset expire, are settled or waived;
• the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or
• the entity, despite having retained some significant risks and rewards of ownership of the financial asset, has
• transferred control of the asset to another party and the other party has the practical ability to sell the asset in its
entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose
additional restrictions on the transfer. In this case, the entity:
- derecognise the asset; and
- recognise separately any rights and obligations created or retained in the transfer.
The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those
transferred on the basis of their relative fair values at the transfer date. Newly created rights and obligations are measured
at their fair values at that date. Any difference between the consideration received and the amounts recognised and
derecognised is recognised in surplus or deficit in the period of the transfer.
On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the
consideration received is recognised in surplus or deficit.
Financial liabilities
The entity removes a financial liability (or a part of a financial liability) from its statement of financial position when it is
extinguished — i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.
The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or
transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed,
is recognised in surplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-
exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange
Transactions (Taxes and Transfers).
Presentation
A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position
when the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on
a net basis, or to realise the asset and settle the liability simultaneously.
In accounting for a transfer of a financial asset that does not qualify for derecognition, the entity does not offset the
transferred asset and the associated liability.
249Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Accounting policies
1.3. Compensation of employees
The accounting policy in terms of the compensation of employees is in line with the policy of the Gauteng Department
of Agriculture and Rural Development which is guided by the DPSA.
The Gauteng Department of Agriculture and Rural development charge Cost Recovery Trading Entity a management
fee because Cost Recovery Trading Entity does not appoint employees, all short term employee benefits and post-
retirement benefits, termination benefits as well as long term employee benefits are covered by the Gauteng Department
of Agriculture and Rural Development.
1.4. Revenue from exchange transactions
Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows
result in an increase in net assets, other than increases relating to contributions from owners.
An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly
gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.
Measurement
Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume
rebates.
Sale of goods
Revenue from the sale of goods is recognised when all the following conditions have been satisfied:
• the entity has transferred to the purchaser the significant risks and rewards of ownership of the goods;
• the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor
effective control over the goods sold;
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits or service potential associated with the transaction will flow to the entity;
and
• the costs incurred or to be incurred in respect of the transaction can be measured reliably
Rendering of services
When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated
with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The
outcome of a transaction can be estimated reliably when all the following conditions are satisfied:
• the amount of revenue can be measured reliably;
• it is probable that the economic benefits or service potential associated with the transaction will flow to the entity;
• the stage of completion of the transaction at the reporting date can be measured reliably; and
• the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.
When services are performed by an indeterminate number of acts over a specified time frame, revenue is recognised
on a straight line basis over the specified time frame unless there is evidence that some other method better represents
the stage of completion. When a specific act is much more significant than any other acts, the recognition of revenue is
postponed until the significant act is executed.
250 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Accounting policies
When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is
recognised only to the extent of the expenses recognised that are recoverable.
1.5. Revenue from non-exchange transactions
Non-exchange transactions are defined as transactions where the entity receives value from another entity without
directly giving approximately equal value in exchange.
Cost Recovery Trading Entity generates revenue when costs are recovered with the delivery of services to the public.
These services include:
• Section 24G fines - Revenue in this case is recognized only after the fine has actually been paid instead of when
fines are issued. This is mainly because the recipient is given time to appeal the fine in a court of law.
• Imports and Export Permits - Revenue is recognized on an accrual basis.
• Veterinary services - Revenue is recognized on an accrual basis.
• Accommodation and Entrance fees - Revenue is recognized if and when the actual service does take place.
Interest income is recognized on time- proportion basis using the effective interest method. When a receivable is
impaired, Cost Recovery Trading Entity will reduce the carrying amount to its recoverable amount, being the estimated
future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount
as interest income. Interest income on impaired loans is recognized using the original effective interest rate.
1.6. Unauthorised expenditure
Unauthorised expenditure means:
• overspending of a vote or a main division within a vote; and
• expenditure not in accordance with the purpose of a vote or, in the case of a main division, not in accordance with
the purpose of the main division.
All expenditure relating to unauthorised expenditure is recognised as an expense in the statement of financial performance
in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense,
and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.
1.7. Fruitless and wasteful expenditure
Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care
been exercised.
All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial
performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of
the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.
251Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Accounting policies
1.8. Irregular expenditure
Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in
contravention of or that is not in accordance with a requirement of any applicable legislation, including -a. this Act; orb. the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; orc. any provincial legislation providing for procurement procedures in that provincial government.
National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the PFMA
requires the following (effective from 1 April 2008):
Irregular expenditure that was incurred and identified during the current financial and which was condoned before year
end and/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditure
register. In such an instance, no further action is also required with the exception of updating the note to the financial
statements.
Irregular expenditure that was incurred and identified during the current financial year and for which condonement is
being awaited at year end is recorded in the irregular expenditure register. No further action is required with the exception
of updating the note to the financial
statements.
Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial
year, the register and the disclosure note to the financial statements must be updated with the amount condoned.
Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by
the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If
liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is
liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is
not possible, the accounting officer or accounting authority may write off the amount as debt impairment and disclose
such in the relevant note to the financial statements.
The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned
and no person is liable in law, the expenditure related thereto must remain against the relevant expenditure item, be
disclosed as such in the note to the financial statements and updated accordingly in the irregular expenditure register.
252 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Accounting policies
1.9. Financial Risk Management
Financial Risk Factors
Cost Recovery Trading Entity’s activities expose it to some financial risks, most of which are managed through internal
controls. Cost Recovery Trading Entity has direct access to its bank account, and cash management is performed.
Risk Management is carried out and monitored by the Risk Management unit in the Department of Agriculture and Rural
Development under policies approved by the Head of Department. The Gauteng Department of Agriculture and Rural
Development has written principles for overall risk management. As a trading entity of the Gauteng Department of
Agriculture and Rural Development, these principles apply to Cost Recovery Trading Entity.
The most significant financial risks are related to reporting (inaccurate financial information that might result in inaccurate
reporting and not meeting reporting deadlines in terms of PFMA) and financial systems (payment systems not aligned
to business processes).
The risk of reporting was mitigated by the implementation of an independent financial package, enabling Cost Recovery
Trading Entity to record financial information on an accrual basis, as opposed to the modified cash basis run by its
parent department.
1.9.1. Liquidity Risk
For Cost Recovery Trading Entity, prudent liquidity risk management implies maintaining sufficient cash to meet its
commitments. To a certain extent, the Gauteng Department of Agriculture and Rural Development through its cash
management programme covered this, if any.
253Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Notes to the Annual Financial Statements
Figures in Rands
2014
R’000
2013
R’000
2. Revenue from non-exchange transactions
Section 24G Fines
Other
6 015
15 430
3 095
-
3. Revenue from exchange transactions
Imports – Conservation
Accommodation – Roodeplaat Nature Reserve
Entrance Fees – Entrance at all reserves
Veterinary Services
Interest Earned On Outstanding Receivables
Other (Fines and vet services/inspections)
981
338
944
2 850
12
3 162
1 049
130
793
1 437
-
10
29,732 6,514
Other income under Revenue from non-exchange transactions includes an amount of R15, 430 for Gains
from Payable written off against Protea after its contract for running the hospitality side at Suikerbosrand
expired.
4. Operating Expenses
Administration Costs
Management Fees- GDARD
Fuel, Oil and Lubrcnt
Spares & Access
Uniform and Prot Clothing
Electrical Supp
KM (Own Transport)
14
4,218
108
686
757
31
1,230
20
2,203
-
-
-
-
7,044 2,223
The Cost Recovery policy states that the entity can be used by Department of Agriculture and Rural Development to cover any possible overspending of the vote by the Department.
254 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Notes to the Annual Financial Statements
Figures in Rands
2014
R’000
2013
R’000
5. Receivables from exchange transactions
Figures in Rand 2014
R’000
2013
R’000
Departmental receivableProtea Hotel
3 232
-
832
12 153
3 232 12 985
After winding up of the Protea Hotel contract it was established that they actually owe the entity R1, 439 after taking into consideration the payables and receivables from both sides. An amount of R10, 714 was subsequently written off.
Age analysis:
91 - 120 days 3 232 12 985
6. Cash and cash equivalents
Cash and bank balance on handPetty Cash
14,580 3
8,962 -
14,583 8,962
Notes to the Annual Financial Statements
Figures in Rand 2014
R’000
2013
R’000
7. Payables from exchange transactions
Income received in advanceDepartmental payableProtea Hotel
44
1 589 -
105
2 20315 430
1 633 17 738
After winding up of the Protea Hotel contract it was established that the Entity does not owe them anything which let to the R15,430 being treated as a Gains from Payables written off after receiving confirmation of a zero balance.
255Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Notes to the Annual Financial Statements
Figures in Rands
2014
R’000
2013
R’000
8. Accumulated Surplus/Deficit
Balance at beginning of the year Surplus/(Deficit) for the year
4,20911,973
(82)4,291
Balance at the end of the year 16,182 4,209
9. Net cash inflows/outflows from operating activities
Surplus/(Deficit) before tax Non- Cash Movement/Working Capital Changes
11,973(6,352)
4,291 (953)
Increase/Decrease in Payables Increase/Decrease in Receivables
(16,105)9,753
(953) -
5,621 3,338
10. Categories of financial instruments
The accounting policies for financial instruments have been applied to the line items below:
2014
Financial assets Loans and
Receivables
Fair value through
surplus or deficit –
Held for trading
Total
Cash and cash equivalentsTrade and other receivables
-
3 232
14 583
-
14 583
3 232
3 232 14 583 17 815
Notes to the Annual Financial Statements
Figures in Rand 2014
R’000
2013
R’000
Financial liabilities Financial liabilitiesAmortised cost
Total
Trade and other payables 1 633 1 633
1,633 1 633
11. Taxation
No provision for taxation has been made in the financial statements, as Cost Recovery is not a tax paying entity. ( The entity, as part of the Department of Agriculture and Rural Development is exempt, as per s20 of the Income Tax Act ( Act 58 of 1962).
256 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014
GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014
Notes to the Annual Financial Statements
Figures in Rands
2014
R’000
2013
R’000
12. Related party transactions
Cost Recovery is a trading entity under the control of Gauteng Department of Agriculture and Rural Development; therefore Gauteng Department of Agriculture and Rural Development is considered as its parent department. The following transactions took place between Cost Recovery and the Department:
Management Fees General Expenses
4,218 2,812
2,202 -
Gauteng Department of Agriculture charges management fees to Cost Recovery and were necessary they divert overspending to the entity.
Trade and other receivables from GDARD Trade and other payables to GDARD
3,232
-
832(6,916)
13. Irregular Expenditure
The contract between the Gauteng Department of Agriculture and Rural Development and Protea Hotel expired and was extended without following proper procurement processes resulting in the fees charged by Protea for 2011/2012 being regarded as irregular expenditure
Reconciliation of Irregular Expenditure:
Opening Balance 876 876
Irregular Expenditure condoned (876) -
Irregular expenditure awaiting con-donement
- 876
14. Events after reporting period.
Management is not aware of any matters or circumstances that arose from the end of the reporting to the date of this report which would require adjustments to, or disclosure in the financial statements.