57220 dep154 pri 06 rv 11 annual report inner · pfma public finance management act tb tuberculosis...

2016

ANNUAL REPORT 2016/17 ISBN: 978-0-621-45642-4

CONTACT DETAILSEastern Cape Department of Rural Development & Agrarian Reform

Independence AvenuePrivate Bag X0040Bhisho5605South Africa

www.agr.ecprov.gov.za

CUSTOMER CARE TOLL FREE: 0800 20 30 25

ISBN: 978-0-621-45642-4

“VIBRANT, EQUITABLE, SUSTAINABLE

RURAL COMMUNITIES AND FOOD SECURITY FOR

ALL”

VOTE 82016

1“VIBRANT, EQUITABLE, SUSTAINABLE RURAL COMMUNITIES AND FOOD SECURITY FOR ALL”

VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017

TABLE OF CONTENTS

PART A: GENERAL INFORMATION ...............................................................................................................3

1. DEPARTMENT’S GENERAL INFORMATION ..........................................................................................42. LIST OF ABBREVIATIONS ......................................................................................................................53. REPORT OF THE ACCOUNTING OFFICER ...........................................................................................94. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY OF THE ANNUAL REPORT ..............................................................................................155. STRATEGIC OVERVIEW .......................................................................................................................166. LEGISLATIVE AND OTHER MANDATES ..............................................................................................167. ORGANISATIONAL STRUCTURE .........................................................................................................188. ENTITIES REPORTING TO THE MEC ..................................................................................................19

PART B: PERFORMANCE INFORMATION ..................................................................................................21

1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES ..................................................222. OVERVIEW OF DEPARTMENTAL PERFORMANCE ............................................................................233. STRATEGIC OUTCOME ORIENTED GOALS .......................................................................................304. PERFORMANCE INFORMATION BY PROGRAMME ...........................................................................325. TRANSFER PAYMENTS ........................................................................................................................766. CONDITIONAL GRANTS .......................................................................................................................777. DONOR FUNDS .....................................................................................................................................828. CAPITAL INVESTMENT .........................................................................................................................83

PART C: GOVERNANCE ..............................................................................................................................85

1. INTRODUCTION ....................................................................................................................................862. RISK MANAGEMENT ............................................................................................................................863. FRAUD AND CORRUPTION .................................................................................................................874. MINIMISING CONFLICT OF INTEREST ...............................................................................................89 5. CODE OF CONDUCT ............................................................................................................................896. HEALTH AND SAFETY AND ENVIRONMENTAL ISSUES ....................................................................897. PORTFOLIO COMMITTEE ....................................................................................................................898. SCOPA RESOLUTIONS ........................................................................................................................949. PRIOR MODIFICATION TO AUDIT REPORTS .....................................................................................9810. INTERNAL CONTROL UNIT (ICU) ........................................................................................................9811. INTERNAL AUDIT AND AUDIT COMMITTEES .....................................................................................9912. FINAL REPORT FROM THE AUDIT COMMITTEE CHAIR ................................................................100

PART D: HUMAN RESOURCE MANAGEMENT ........................................................................................103

1. INTRODUCTION ..................................................................................................................................1042. OVERVIEW OF HUMAN RESOURCES ..............................................................................................1043. HUMAN RESOURCES OVERSIGHT STATISTICS .............................................................................106

PART E: FINANCIAL INFORMATION .........................................................................................................131

1. Annual Appropriation ............................................................................................................................1842. Statutory Appropriation .........................................................................................................................184

2 “VIBRANT, EQUITABLE, SUSTAINABLE RURAL COMMUNITIES AND FOOD SECURITY FOR ALL”

VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017

PART A: GENERAL INFORMATION



1. DEPARTMENT’S GENERAL INFORMATION

PHYSICAL ADDRESS: Department of Rural Development and Agrarian Reform

Dukumbana Building,

Independence Avenue;

Bhisho, 5605

POSTAL ADDRESS: Private Bag X0040

Independence Avenue

Bhisho, 5605

TELEPHONE NUMBER/S: 040 602 5007

FAX NUMBER: 040 635 0604

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.drdar.gov.za



2. LIST OF ABBREVIATIONS

ABSA Amalgamated Banks of South Africa ECDC Eastern Cape Development Corporation

ADMIN Administration ECGBB Eastern Cape Gambling & Betting Board

AFS Annual Financial Statements ECPTA Eastern Cape Parks & Tourism Agency

AGSA Auditor General of South Africa ECRDA Eastern Cape Rural Development Agency

AHT Animal Health Technicians EE Employment Equity

AIDS Acquired Immune Deficiency Syndrome EEP Employment Equity Policy

APAP Agriculture Policy Action Plan EHWP Employee Health and Wellness Programme

APP Annual Performance Plan EIA Environmental Impact Assessment

ARC Agricultural Research Council EPWP Extended Public Works Programme

BAS Basic Accounting System ERM Enterprise Risk Management

BOD Board of Directors EXCO Executive Council

CA Contagious Abortion FAS Financial Accounting Services

CASP Comprehensive Agricultural Support Programme FEA Female Entrepreneur Award

CFO Chief Financial Officer FET Further Education and Training

CIDB Construction Industry Development Board FTE’s Full Time Equivalents

CIPC Companies Intellectual Property Commission GARDAG Government Agricultural Research Action

Group

COE Compensation of Employees GDP Gross Domestic Product

COO Chief Operations Officer GG Government Transport

DAAC District Agri-park Advisory Councils GIAMA Government Immovable Asset Management Act

DAFF Department of Agriculture, Forestry and Fisheries GIS Geographic Information System

DLRC District Land Reform Committees GITO Government Information Technology Office

DORA Division of Revenue Act HET Higher Education and Training

DPSA Department of Public Service and Administration HIV Human Immune deficiency Virus

DRDAR Department of Rural Development and Agrarian Reform HR Human Resources

DRDLR Department of Rural Development and Land Reform HROPT Human Resource Operations Project

Task Team

DSTV Digital Satellite Television ICT Information Communication and Technology

EAP Employees Assistance Programme ICU Internal Control Unit

EAPASA Employee Assistance Professionals Associations of South Africa IDP Integrated Development Plan

EC Eastern Cape IFSS Integrated Food Security Strategy

ECATU Eastern Cape Appropriate Technology Unit IGR Inter-governmental Relations



IOD Injury on Duty RATU Rural Appropriate Technology Unit

ISO International Standard Organisation RED Rural Enterprise Development

KRA Key Results Area RT Transversal Rated Contracts

LCD Liquid Crystal Display SABS South African Beareu of Standards

LMF Labour Management Forum SACNASP South African Council for National Science Profession

LIMS Lab Information Management Systems SANAS South African National Accreditation System

MEC Member of the Executive Council SAQA South African Qualifications Authority

MINMEC Ministers and Members of the Executive Council SASAE South African Society for Agricultural

Extension

MINTEC Ministerial Technical Committee SASAE South African Society for Agricultural Extension

MOU Memorandum of Understanding SASAT South African Society Agricultural Technologists

MPAT Management and Performance Assessment Tool SCM Supply Chain Management

MTSF Medium Term Strategic Framework SDIP Service Delivery Improvement Plan

NAMC National Agricultural Marketing Council SDM Service Delivery Model

NDP National Development Plan SETA Sector Education Training Agency

NQF National Qualifications Framework SG Strategic Goal

OAG Office of the Auditor General SHERQ Safety, Health, Environment , Risk and Quality

OHS Occupational Health Safety SLA Service Level Agreement

OHSA Occupational Health Safety Act SMME Small Medium Micro Enterprise

OIE Office Internationale Etizooties SMS Senior Management Service

OSD Occupational Specific Dispensation SO Strategic Objective

PAHC Public Animal Health Care SOMPED Society for Medicinal Plants and Economic Development

PDP Provincial Development Plan SPLUMA Spatial Planning and Land Use Management Act of 2013

PERSAL Payroll and Salaries TARDI Tsolo Agricultural and Rural Development Institute

PFMA Public Finance Management Act TB Tuberculosis

PI Performance Indicator TR Treasury Regulations

PLAS Proactive Land Acquisition Strategy UPS Un-Interrupted Power Supply

PoA Program of Action USA United States of America

PPPFA Preferential Procurement Policy Framework VCT Voluntary Counselling and Testing

PSA Public Service Association WEMA Water Efficient Maize Africa

PSCBC Public Service Coordinating Bargaining Council WIFI Wireless Internet for Frequent Interface



FOREWORD BY THE MEC

The Department of Rural Development and Agrarian reform has made progress in its facilitation and coordination of the implementation of outcome 7 priorities Stimulating Rural Development, Land Reform and Food Security. The Departmental collective efforts were made towards the realisation of the National Development Plan through the customised Provincial Development Plan. Significant policy and strategic strides have been undertaken during the 2016/2017 financial year with regard to the implementation of outcome 7.

The Department coordinated the implementation of Rural Development Priorities across all spheres of government. This process was characterised by facilitating activities towards achievement of the MTSF priorities such as improved land administration, improved food security, increased access to quality infrastructure, small holders’ development and support, growth of sustainable rural agricultural enterprise and industries, and improved research and development.

The introduction of the Masiphathisane integrated service delivery model gave impetus and made it possible to drive rural development initiatives through war rooms with all stakeholders in the rural space. This integrated service delivery model consolidates government’s efforts from all spheres of government to accelerate rural development in rural areas.

DRDAR in collaboration with DRDLR and COGTA provided support to all Eastern Cape Municipalities towards improving land administration and spatial planning for integrated development in rural areas through Spatial Planning and Land Use Management Act (SPLUMA). The extent of implementation varied mainly due to the lack of buy-in from stakeholder especially the traditional leadership, lack of resources for institutional development and technical capacity to oversee the implementation of services.

Summary of the Programmes

The department continued to increase its area covered with grain production from 43 800 ha to 50 713 ha in the 2016/17 financial year, supported 158 smallholder farmers with production inputs and 5 603 clustered grain producers. Commercial Maize production in a partnership arrangement with WIPHOLD, resulted in 1 937 ha ploughed and 134 job opportunities created at Centane.

The intensification of production, agro-processing, partnership and marketing in grain continued at the RED HUB in Mqanduli, Ncora, Emamahleni and Mbizana to ensure food secured communities, increased household income and created job opportunities. In the Mqanduli and Ncora RED HUBS, 2 199 commercial grain producers were supported, resulting in the creation of 45 jobs. The Marketing outlet at Nicks Foods Super Spar and other retailing stores stimulated intensive processing.

Major investments were made into high technological infrastructure projects such as the Wittekleibosch dairy parlour in Koukama Local municipality at Sarah Baartman district and Ripplemead Pack Shed in Peddie local municipality at Amathole districts. The targeted spin offs were job creation and ultimate economic growth transformation which was characterised by the active participation of women and their



empowerment. . Effective participation of black women in the mainstream of agricultural export industry with specialisation in deciduous fruit to the Middle East, Far East and Europe was demonstrated by Venecia Janse who won both the Provincial and the National awards as the best woman entrepreneur in 2016. She has employed 44 permanent and 68 seasonal workers. She harvests apples from 48.78 ha and pears from 4.47ha with a total yield of 2551.4 ton for both fruits. A total of 7 774 bins were harvested earning an income of R9.5 million in 2016.

The department remains committed to support the Magwa and Majola Tea estates. At the end of the fi nancial year, the Business Rescue Process Plan was fi nalized and the process to funding was under consideration by government.

The fi nancial performance of the Department is improving. I am glad to announce that a Clean Audit has been achieved.

In conclusion, the Department celebrates its past performance achievements and, at the same time will use the areas where challenges were experienced as learnings for future planning purposes.

HON MLIBO QOBOSHIYANE (MPL)MEMBER OF THE EXECUTIVE COUNCIL:31st AUGUST 2017



3. REPORT OF THE ACCOUNTING OFFICER

The department continues to pursue implementation of the Provincial MTSF priority 3 of Stimulating Rural Development, Land Reform and Food Security, which flows from NDP/PDP and Outcome 7.This includes the implementation of the 5 Year Strategic Plan from 2014-2019 and the Annual Performance Plan of 2016/2017.

Rural development coordination was intensified through the close working relationship with DRDLR in strengthening the Inter-Governmental Relations (IGR). These sessions improved the alignment and integration of Provincial Medium Term Strategic Framework priorities.

The Province is amongst those hit hard by the drought. Five districts were declared disaster areas. To mitigate the risk, the department implemented a drought intervention programme which focused on supporting farmers with water storage facilities, water carting, animal feed, fodder, construction and rehabilitation of boreholes.

In addressing water shortages, the Agricultural Research Council (ARC) and the Department of Rural Development and Agrarian Reform (DRDAR) hosted a multinational workshop on Water Efficient Maize for Africa (WEMA). The workshop showcased the results of drought tolerant maize cultivar (to mitigate climate change) that has been demonstrated with the resource poor farmers of the Amathole District

The early rains in the 2017 season, and the projected above average rainfalls for this coming season allowed the Department to increase the hectorage from 43 800ha to 50 713ha for 2017.

Horticulture is one of the key commodities in the province. .The department supported smallholder farmers in pineapples, citrus, deciduous and vegetables, with production inputs and infrastructure. These initiatives created a total of 1 744 seasonal jobs.

The province has an abundance of livestock hence, a total of 2 587 superior breeding animals were procured and distributed. An additional 33 registered Nguni bulls were produced by the research programme of the Department.

In keeping a healthy herd in the province, a total of 1 403 541 animals were vaccinated against anthrax and black quarter. For the control of sheep scab and internal parasites, a total of 4 119 867 sheep were subjected to two treatments. At the same time, the department invested towards control of tick- borne diseases through continuous dipping that protracted into early months of winter. Through its diseases monitoring program, the department identified the need to control rabies which led to 445 232 animals vaccinated. In support of various agriculture production systems, 212 infrastructure projects were completed that supported 2 911 smallholder farmers and created 837 jobs. The completed infrastructure projects were mainly dipping tanks, fencing, dams scooping/ de-silting, ablution and storage facilities. Further infrastructure projects were completed at the two colleges, Fort Cox and Tsolo Colleges for the purposes of increasing student intake.



The Research Program is in the process of upgrading its infrastructure. These include an ICT upgrade, the construction of a state of the art multi-span greenhouse at Dohne and revitalisation of the aquaculture hatchery at Mthatha Dam.

In a province that requires land rehabilitation , 17 Land Care projects covering 2 611 ha were supported. This led to 519 green jobs benefiting 592 people. An additional 259 171ha were verified and found suitable for agricultural practice. .

Agricultural Economic Services supported 349 Agri-businesses with economic advice, which included 169 Co-Ops and 74 entities that were linked directly to commercial markets. Moreover a total of 5 483 clients benefited from specialist advice and 512 farm business plans were completed. Economic intelligence including 60 responses to enable informed economic decisions by farmers and 31 economic reports were provided during the year.

The department placed emphasis on the training of young females and farm workers during the period under review. A total of 2 043 beneficiaries were capacitated through accredited and non-accredited courses in various agriculture related fields.

The partnership between the Department and UFH resulted to the installation of 100 solar home lighting systems at Nomlengane and Dangers Hoek villages in Joe Gqabi District. A total of eight (8) biogas digesters were constructed and 20 are currently under construction... Major benefit of the project to the community was the supply of needed basic services, namely the energy for both lighting and cooking needs, job creation and skills development in renewable energy work. Twenty nine (29) casual workers were employed during the construction phase

The Department and Eastern Cape Development Corporation (ECDC) have worked together in supporting the Agro-Tourism Giant Flag project, which seeks to create a cycle of socio-economic development in the Karoo region of the Eastern Cape with the main purpose of addressing the challenges of underdevelopment, poverty and unemployment. The project also brings renewable energy and agriculture in the area. Furthermore, it also brings several streams of environmental, social and economic activity. .

The Department and School Net SA have collaborated and delivered ICT infrastructure in Joe Gqabi District. Information technology infrastructure was invested in four (4) rural ICT projects namely; Sterkspruit, Burgersdorp, Steynsburg and Lady Grey. The ICT infrastructure investment include 76 computers, 5 printers, 6 routers, 6 projector screens and 6 projectors. A total of 144 learners were trained in IT Systems Support and I.T. technical training at NQF level 4 and 5.

The Rural Appropriate Technology Unit (RATU) developed soil-cement technology, constructed three (3) Pre-Schools at Sibangweni, Lugizweni and Gongo villages in Nyandeni Local Municipality, wherein 90 children benefited from the project, created 54 temporary jobs and 6 permanent jobs.

Three (3) Water Care Projects were initiated at Hoyita and Sterkspruit at Senqu Local Municipality, Xanase village in Mbhashe Local Municipality and in Beyers Naude in Camdeboo Local Municipality. Where 60 households benefited and 36 jobs were created.



The RATU of the department implemented Sanitation Technology Projects in Umzimvubu LM (Essek Location), Intsika Yethu LM (Lower Ncora Junior Secondary School) and in Great Kei (Kwenxura High School in Ngxingxolo location) benefiting 895 schoolchildren and educators and project 48 job opportunities were created.

In order to sustain the delivery of services to the communities, thus achieve the overall mandate, the department was able to generate revenue to meet the minimum targets estimated for collection. The following table illustrates the detailed amounts collected for the period.

Overviewofthefinancialresultsofthedepartment

Departmentalreceipts

2016/2017 2015/2016

EstimateActualAmountCollected

(Over)/Under

CollectionEstimate

ActualAmountCollected

(Over)/Under

CollectionR’000 R’000 R’000 R’000 R’000 R’000

Sale of goods and services other than capital assets 8 321 4 427 3 894 7 850 3 514 4 336

Transfers received - 22 547 (22 547) - - -

Fines, penalties and forfeits - 6 (6) - 3 (3)

Interest, dividends and rent on land 33 2 31 31 (1) 32

Sale of capital assets 40 1 044 (1 004) 38 924 (886)

Financial transactions in assets and liabilities 1 191 1 134 57 1 131 5 309 (1 279)

Total 9 585 29 160 (19 575) 9 050 9 749 2 200

The work done to achieve the strategic objectives of the sector is supported by appropriate allocation and expenditure of resources. The following tables illustrates the details of financial performance of the department.

Departmentalexpenditurebyprogramme:

ProgrammeDescription

2016/2017R’000

2015/2016R’000

FinalAppropriation

ActualExpenditure Variance Final

AppropriationActual

Expenditure Variance

Administration 455 596 435 427 20 169 427 409 434 411 (7 002)Sustainable Resource Management 115 211 114 516 695 124 922 124 663 259

Farmer Support and Development 811 276 805 544 5 732 660 690 647 964 12 726

Veterinary Services 296 673 295 262 1 411 271 446 271 347 99

Technology Research and Development 176 632 176 281 351 142 031 142 316 (285)

Agricultural Economics 34 569 33 839 730 55 653 52 456 3 197

Structured Agricultural Training 142 969 141 539 1 430 138 190 132 743 5 447

Rural Development Coordination 182 196 182 121 75 162 341 162 165 176

TOTALS 2 215 122 2 184 529 30 593 1 982 682 1 968 065 14 617



The department underspent its budget by R30.6 million. The actual expenditure of R2.185 billion was realised against final budget of R2.215 billion. This translates into an under expenditure of 1.4%. Explanations for material variances per programme are as follows:

1. Programme1:R20.1million

• The under expenditure in this programme relates to funds that were meant to clear prior year un-surrendered funds. However, there were technical challenges in the treatment of the transaction.


The under expenditure reflected above is made up of R1.254 million for Compensation of Employees, R1.134 million for Goods & Services and R3.344 million on Capital.

• CompensationofEmployees:The under expenditure recorded emanates from staff attrition as well as delays in the filling of vacant posts owing to re-prioritisation of posts as the department only relied on attritions to feel critical posts.

• GoodsandServices: The delays in the submission of invoices for casual labourers responsible for fencing projects in Amathole District. In Joe Gqabi, an arrangement for farmers to procure production inputs and supported by the department with mechanisation did not materialise. The farmers failed to honour the agreement which resulted in the department in being unable to provide mechanisation.

A roll over amounting to R419 000 has been requested.

• Capital:The under expenditure in this item is mainly as a result of the late delivery of farming equipment (tractors and implements), retentions for infrastructure projects. A roll over amounting to R3,2 million has been requested, this amount relates to CASP conditional grant.


Earlier in the financial year, the contracted suppliers of animal medicine ran out of stock. They could not supply the department with medicine as planned. This resulted in a backlog for the procurement of medicine which the department could not catch up with. In addition, there were delays in the delivery of suitable laboratory equipment in time.


The under expenditure reflected above is made up of R527 000 on Compensation of Employees and R786 000 on Capital.

• CompensationofEmployees: The under expenditure recorded emanates from staff attrition as well as delays in the filling of vacant posts owing to re-prioritisation of posts as the department only relied on attritions to feel critical posts.

• Capitalunderexpenditure:The underspending from this item emanates from delays in payment for Mpofu Training College bakery equipment that was delivered by the service provider not in accordance to the specification. There were also savings realised from purchasing of equipment at less than the estimated cost due to the discounts negotiated.

Virements

Virements were done to relieve pressure resulting mainly from cost pressure for the payment of exit benefits and the capital projects.



Programme 1: R 3.950m

In Programme 2 there was under expenditure in compensation of employees. A virement was made from this programme to relieve the pressure in programme 1, resulting from exit benefits payments demand.

Programme 2: (R4.236m)

Programme 2 underspent on the allocated budget due to compensation of employees. The funds not spent were mainly moved to Programme 1 to relieve the cost pressures resulting from exit benefits.

Programme 3: R1.100m

This programme received funds from training budget in programme 7 to fund capital project.


This programme received funds from mainly compensation of employees in programmes 3 and 7 to write off swine fever overtime payment.


Virements from programme 3 mainly under compensation of employees were done to relieve the pressure on the same item.

Programme 6: R0.007


Programme 7: (R5.255m)

This programme anticipated under expenditure on compensation of employees due to staff attrition. The anticipated under expenditure was moved to Programme 4 mainly to relieve cost pressure resulting from write off of overtime payments for Swine Fever claims that were not funded by DAFF. In addition, funds were reallocated to Programme 3 capital project.



Roll-overs

A rollover amounting of R3.6 million has been requested. This amount is made up of R1.4 million for equitable share and R2.2 million for CASP.

FruitlessandWastefulexpenditure

During the current year the department incurred fruitless and wasteful expenditure amounting to R121 000 relating mainly to interest paid for the late payments of Telkom, traffic fines, order cancellation charges and no show charges for accommodation. Late payment for the Telkom account is due to shortage of funds towards the end of the financial year.



PublicPrivatePartnerships

No Public Private Partnerships exist.

Discontinuedactivities/activitiestobediscontinued

No activities were discontinued.

Supplychainmanagement

There were no unsolicited bid proposals for the year under review. Internal controls within procurement are continuously strengthened to prevent abuse of supply chain processes as well as to prevent irregular expenditure.

GiftsandDonationsreceivedinkindfromnon-relatedparties

None.

ExemptionsanddeviationsreceivedfromtheNationalTreasury

None.

Eventsafterthereportingdate

None.

Acknowledgements/Appreciation

The Department acknowledges and appreciates the leadership and the guidance provided by the Hon. MEC Qoboshiyane. The work of the department would not have been possible without the support of the stakeholders, farmers, communities, committed and dedicated staff.

Conclusion

In the 2016/17 fi nancial year, the department achieved a clean audit. This demonstrated effective and effi cient utilization of resources to deliver rural development and agriculture related priority programmes. Furthermore, the department implemented strategic programmes which over time will yield desired impacts in the reduction of poverty, underdevelopment and unemployment.

L.LNgadaACCOUNTING OFFICER 31st AUGUST 2017



4. STATEMENT OF RESPONSIBILITY AND CONFIRMATION OF THE ACCURACY FOR THE ANNUAL REPORT

I hereby submit this report as a true refl ection of the Department’s performance towards achieving the outcome oriented strategic goals. Good progress has been made to ensure that quality services were provided to rural communities in general and farming communities in particular.

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

All information and amounts disclosed throughout the Annual Report is consistent.

The Annual Report is complete, accurate and is free from any omissions.

The Annual Report has been prepared in accordance with the guidelines on the Annual Report as issued by National Treasury.

The Annual Financial Statements (Part E) have been prepared in accordance with the modifi ed cash standard and the relevant frameworks and guidelines issued by the National Treasury.

The Accounting Offi cer is responsible for the preparation of the Annual Financial Statements and for the judgements made in this information.

The Accounting Offi cer is responsible for establishing, and implementing a system of internal control that has been designed to provide reasonable assurance as to the integrity and reliability of the Performance Information, the Human Resources information and the Annual Financial Statements.

The External Auditors are engaged to express an independent opinion on the Annual Financial Statements.

In my opinion, the Annual Report fairly refl ects the operations, the Performance Information, the Human Resources information and the fi nancial affairs of the department for the fi nancial year ended 31 March 2017.

L.LNgadaACCOUNTING OFFICER 31st AUGUST 2017



5. STRATEGIC OVERVIEW

5.1 Vision

Vibrant, equitable, sustainable rural communities and food security for all.

5.2 Mission

Promote, support and coordinate rural development and agrarian reform interventions to reduce poverty and underdevelopment through job creation, integrated food security programme, and equitable participation in development by all rural communities.

5.3 Values

• Innovation: Committed to keep abreast of new developments in relevant fields of expertise and be innovative

in carrying out the mandate of the Department.

• Excellence:

We are committed to exceed our customer’s expectations for quality, responsiveness, efficiency and service excellence.

• Bambisanani:

Believe that the sum of our collective efforts will be greater than the total of our individual efforts.

• Mutualrespect:

We value each other’s contribution as we seek to realise the vision and goals of the Department.

• HonestyandIntegrity:

Commitment to be transparent with all stakeholders.

• Inclusiveness:

“Bonke abantu esisebenza nabo, siya kusebenzisana nabo ngokufanelekileyo nangokulinganayo”.

6. LEGISLATIVE AND OTHER MANDATES

The Department’s mandates are informed by the following Acts:

• Constitution of the Republic of South Africa, Act 108 of 1996 Act No 108 of 1996

• The Agriculture Development Act, 1999 Act No. 67 of 1999

• Conservation of Agricultural Resources Act,1983 Act No. 43 of 1983

• Eastern Cape Rural Finance Corporation, Act 1 of 2012 Act No. 9 of 1999 as Amended by Act1 of 2012

• Veterinary and Para-Veterinary Professions Act,1982 Act No. 19 of 1982



• The Animal Health Act, 2002 Act No. 7 of 2002

• The Animal Identification Act, 2002 Act No. 6 of 2002

• The Meat Safety Act, 2000 Act No. 40 of 2000

• Animal Diseases Act, 1984 Act No. 35 of 1984

• Animal Improvement Act, 1998 Act No. 62 of 1998

• Animal Protection Act, 1962 Act No. 71 of 1962

• Livestock Improvement Act, 1997 Act No. 25 of 1997

• Agricultural Pests Act, 1983 Act No. 36 of 1983

• Fertilizers, Farm Feeds, Agricultural Remedies and Stock Remedies Act, 1947 Act No. 36 of 1947

• Agricultural Research Amendment Act, 2001 Act No. 27 of 2001

• Marketing of Agricultural Products Act, 1996 Act No. 47 of 1996

• Fencing Act, 1963 Act No. 31 of 1963

• Land Tenure Rights Act, 1991 Act No. 112 of 1991

• Intergovernmental Relations Framework Act, 2005 Act No. 13 of 2005

• Public Finance Management Act, 1999 Act No.1 of 1999

• Basic Conditions of Employment Act,1997 Act No.75 of 1997

• Division of Revenue Act, 2009 Act No. 12 of 2009

• Preferential Procurement Policy Framework Act, 2000 Act No. 5 of 2000

• Public Service Act and Regulations, 1994 Act No. 103 of 1994

• Skills Development Act, 1998 Act No. 97 of 1998

• Occupational Health and Safety Act, 1993 Act No. 85 of 1993

• Employment Equity Act, 1998 Act No. 55 of 1998

• Promotion of Access to Information Act, 2000 Act No. 2 of 2000

• Treasury Regulations issued in terms of PFMA Act, 1999 Act No. 29 of 2000

• Promotion of Administrative Justice Act, 2000 Act No. 2 of 2000

• Spatial Planning and Land Use Management Act, 2013 Act No. 16 of 2013



7. ORGANISATIONAL STRUCTURE

ECRDA

HON MEC M. QOBOSHIYANE (MPL)

MEC

MR. L. L. NGADAACCOUNTING OFFICER

MS. N. TUNGATACFO

MS. Z. MAKINADDG: ADMIN

MR. L. COETZEEDDG: AGRICULTURE

MR. B. DAYIMANI COO:



Listofprogrammes

NO PROGRAMME RESPONSIBLE OFFICIAL DESIGNATION

1 Administration Ms. Z. Makina DDG: Administration

2 Sustainable Resource Management Mr. L. Coetzee DDG: Agriculture Development

3 Farmer Support and Development Mr. B. Dayimani COO: Chief Operations Officer

4 Veterinary Services Mr. L. Coetzee DDG: Agriculture Development

5 Research and Technology Development Mr. L. Coetzee DDG: Agriculture Development

6 Agricultural Economic Services Mr. L. Coetzee DDG: Agriculture Development

7 Structured Agricultural Education and Training Mr. L. Coetzee DDG: Agriculture Development

8 Rural Development Mr. B. Dayimani COO: Chief Operations Officer

8. ENTITIES REPORTING TO THE MEC

The Eastern Cape Rural Development Agency (ECRDA) is the sole public entity of the Department of Rural Development & Agrarian Reform. It is mandated to implement rural development initiatives on behalf of the Department. The relationship between DRDAR and ECRDA is regulated by a Shareholder’s Compact which includes the appointment of the Board and the chairperson.

Accountability including reporting on key performance indicators/ projects and financial reporting on transferred funds. The Accounting Authority of the Agency reviews its performance levels in relation to the requirements of the Department. Progress is monitored on a quarterly basis by submission of Quarterly Performance Reports and Financial Reports to the Department as part of the accountability system.

Table 1: Entities, functions and relations with the MEC.

NameofEntity LegislativeMandate

FinancialRelationship NatureofOperations

Eastern Cape Rural Development Agency (ECRDA).

Eastern Cape Rural Finance Corporation Amendment, Act 1 of 2012.

The department provides funding on an annual basis to support the operations of the entity. The budget allocated to the entity for the year under review amounted to R188 767 000.

The ECRDA is a catalyst organisation, •with emphasis on planning, research and project packaging, facilitation, project management, and implementation of priority programs.

Other functions are innovation, •development as well as mobilising resources and capacity building.

Rural finance services to rural •communities, with specific emphasis on loan finance to farming enterprises.

Implement Rural Enterprise Development •projects.



PART B: PERFORMANCE INFORMATION



1. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

Refer to Page 133 of the Report of the Auditor General, published as Part E: Financial Information.



2. OVERVIEW OF DEPARTMENTAL PERFORMANCE

2.1 ServiceDeliveryEnvironment

During the period under review, the Department facilitated and coordinated the implementation of Rural Development Priorities as outlined in the Outcome 7 across all spheres of government. This process was characterised by integrating all government resources towards achievement of improved land administration; improved food security, increase access to quality infrastructure, smallholders’ development and support, growth of sustainable rural agricultural enterprise and industries, and improved research and development. The department consolidated all the programs and activities related to outcome 7 to provide progress against the set targets.

The primary production in the four RED Hubs Mqanduli, Ncora, Emalahleni and Mbizana has strengthened the processing, packaging and marketing of grain within the Eastern Cape. The Mqanduli and Ncora Red Hubs are operational with 4 245 ha planted (maize and sorghum) and have supported 2199 communal grain producers (primary and secondary cooperatives) and new jobs created are 45 jobs. The storage capacity of the grain silos for Ncora has been increased to 5 000 tons and 2 250 tons in Mqanduli. The ECRDA will continue its partnership with sales and merchandising agency agreement with iSpaza Foods to assist the mills to promote and market the processed products to retail stores like Nicks Food Super Spar and other retail stores that are closer to the mills.

On 31 March 2017, President Jacobs Zuma officially launched Mbizana Rural Enterprise Development Hub (RED Hub). High profile dignitaries in government, private sector, business and civic societies, attended the launch. The project represents another attempt by government to fight poverty, create jobs and stimulate industrialisation of the rural areas.

DRDAR and School Net SA have collaborated and delivered ICT infrastructure at Bethania Senior Secondary School in Joe Gqabi District. Information technology infrastructure was invested in four (4) rural ICT projects namely; Sterkspruit, Burgersdorp, Steynsburg and Lady Grey. The ICT infrastructure investment include 76 computers, 5 printers, 6 routers, 6 projector screens and 6 projectors. A total of144 Learners were trained in IT Systems Support and I.T. Technical Training at NQF level 4 and 5.

The department used the rural appropriate technologies to improve water supply infrastructure, sanitation, renewable energy, and clothing and textile. In the period under review, the department provided three (3) water care projects at Hoyita in Sterkspruit (Senqu LM), Xanase village at (Mbashe LM) and Ward 6 Camdeboo at (Dr Beyers Naude LM) benefiting 16 households and creating 36 job opportunities. Furthermore, two ventilated pit latrine toilets were constructed at lower Ncora Junior Secondary School (Intsikayethu LM) and Kwenxura High school (Great Kei LM) benefiting 733 school learners thus creating 13 job opportunities.

In order to support Renewable Energy, the Department continued its partnership with the University of Fort Hare to provide renewable energy to rural households in the province. To date this partnership supplied 100 solar home lighting systems, 87 bio-gas digesters which were supported with funding from South African National Energy Development Institute (SANEDI), Water Research Commission and DRDAR. This programme trained and employed 28 rural youths during the installation and they are encouraged to form cooperatives so that they continue maintaining these renewable energy systems.



As a means to providing basic needs of rural communities, six appropriate technologies namely, organic farming, agro-processing, construction of VIP toilets, construction of early learning centres, Water harvesting, spring protection and fence making, were introduced in various rural communities through Rural Appropriate Technology Unit (RATU).

The current economic challenges (stagnation and skewed to tertiary/services which requires skilled workforce and inability to absorb unemployed) requires the province to shift from being the primary consumer of food products to be primary producer of food through the expansion of cropping. It is a fact that the agricultural output is below its potential contribution mainly due to lack of investment, secure off-take agreements, infrastructure, and insecure land tenure system which leads to limited access to finance. In response to this, the Province has adopted the Agricultural Economic Transformation Strategy. The strategy seeks to empower rural communities (smallholders, communal farmers especially youth and women) to treat agriculture as business and be supported with tangible programmes and projects that enables them to derive optimal economic value. This will be achieved through customised government supported partnerships between rural communities and the agricultural commercial sector to attract much needed investment and transfer of entrepreneurial skills and employment.

The government is committed to support local farmers by increasing public procurement of agricultural products from our own primary producers. The strategy will be fully implemented in the 2017/18 financial year in a two phased model, that is, Cluster based partnership programme targeting grain and livestock products; and Commodity based partnership programme targeting high value products.

The department has managed to plant 50 713 hectares of maize as at the end of year against the annual target of 43 800 hectares. The Easter Cape total maize crop planted in 2016 was 219 900 ha (206 000 ha in non-commercial areas and 13 9000 ha in commercial areas) and these figures confirm that the province is a maize producing region. The Department of Agriculture, Forestry and Fisheries (DAFF) Crop Estimates Committee has confirmed these hectares. Of the total provincial hectorage planted, DRDAR supported farmers to plant 50 713 ha. The Eastern Cape Household Community Survey of 2016 indicates that the poverty head count in the Eastern Cape has decreased from 14.4% in 2011 to 12% in 2016. In support of the most vulnerable members of society, the department provided crop and vegetable production inputs to 10 112 mostly women headed indigent households.

In 2016/17 212 on-farm livestock infrastructure projects have been completed including fencing, stock-water systems, dip tanks, stock handling facilities and sheds. This includes the completion of 67 dipping tanks (of which seven were completed using local labour), 61 dams de-silted, 10 multi-storage facilities, 340 kilometres fenced of-which 49 km was erected using local labour wherein the department bought fencing materials. This resulted in 2 911 producers benefiting from the support.

Ten (10) multi-year projects are continuing into the next financial year, namely: Ripplemead Citrus Pack-house; Wittekleibosch Milking Parlour; Dohne Hydroponic structure (greenhouse); Mthatha Dam Hatchery; Construction of new and Refurbishment of Boreholes for livestock water; Revitalisation of Agricultural Colleges and retention fees for KSD Wool-clip and fencing projects.

The department supported 10 rural custom feed centres targeting communal farmers and one commercial feedlot. These custom feed centres have assisted both smallholder and commercial farmers to sell a total



of 2 536 cattle, generating a revenue of R16 million for communal and small-scale farmers participating in the program. A total of 75 job opportunities were created.

In support of the revival of Agricultural Colleges, at Tsolo College, four infrastructure projects were completed and these included the installation of standby generators, construction of palisade fence, conversion of an abattoir to a post mortem facility and renovation of student ablution facilities. At Fort Cox college, two projects were implemented which will be continued in the next financial year, namely water supply and repairs to leaking roofs.

In response to the outcry regarding student fees at tertiary institutions, the continued collaboration between the Department and the Health and Welfare SETA has again yielded positive results. In addition to the full funding support provided to the first intake of 50 students in the Animal Health Diploma at Tsolo College, the SETA committed provide funding for three years for another 105 students that were registered last year.

In support of famers and farm workers’ skills development, the Department managed to train 2043 farmers on crop and animal production as well as agribusiness skills. Twelve (12) Learnership programs on crop and animal production were implemented benefitting a total of 212 out of school youth, and 188 Farm Workers were trained in various agricultural skills.

To mitigate the negative effects of drought the department provided, 350 water tanks, water carting of 3.5 million litres of water, produced 9 925 tons of Lucerne, 1676 tons of grass hay. Moreover planting of 128 ha of fodder at Qamata irrigation scheme, drilling and of 24 new boreholes and repair of 75 existing boreholes. The long term strategy is the provision of effective early warning systems, establishment of fodder banks, farmer education and pro-active agricultural management. However, the recent summer rains and a positive rain forecast brings hope to farmers and the province.

Livestock producers have been supported in 2016/17 through a comprehensive veterinary support programme, including vaccination of 1.8 million animals for disease prevention, as well as 4.2 million treatments applied to animals for the control of tick borne diseases. The province continues to be faced with the challenge of rabies. To this end, there were 46 outbreaks in Chris Hani and OR Tambo where animals were vaccinated accordingly and in time.

The Department, in partnership with the University of Fort Hare, is developing a database in preparation for the establishment of an Agriculture Development Plan to enhance implementation of the Agriculture Economic Transformation Strategy. In contributing to the knowledge base of the industry, the Research Program published four (4) scientific papers in International and National journals and presented 34 scientific papers at various scientific platforms. New platforms [Society for Medicinal Plants and Economic Development (SOMPED), South African Society for Agricultural Extension (SASAE) and RUFORUM Conference] were explored in sharing scientific findings and experiences in the field of agriculture.



2.2 ServiceDeliveryImprovementPlan

The department has completed a Service Delivery Improvement Plan. The tables below highlight the service delivery plan and the achievements to date.

Main services provided and standards

Mainservices BeneficiariesCurrent/actualstandardofservice

Desiredstandardofservice

Actualachievement

Agricultural Infrastructure Development Support.

Commercial Farmers;

Smallholder Farmer and;

Subsistence farmers

Projects are being implemented by 30% Contractors with inadequate capacity to meet the desired standard.

All projects are being implemented by contractors with limited operational delays and thereby meeting the desired standard of construction.

In the period under review, projects were implemented by contractors that meet the needed standard of construction. A total of 124 contractors were employed, 10 contracts were cancelled, and 10 contractors were underperforming.

Thus, 16% 0f contracts were cancelled/under performing. OR Tambo District had the highest contractors which under performed and Chris Hani district had the highest contracts which were cancelled.

Corrective measures will be undertaken in the next financial year in order to reduce such occurrences.

BathoPelearrangementswithbeneficiaries(Consultationaccess)

Currentarrangements Desiredarrangements Actualachievements

Consultatively with relevant clients at all levels of society, infrastructure needs subdivided into communal and individual household levels.

Consultatively revise the Infrastructure Development Plan (for both communal needs, individual and households) annually and update progress made and estimated cost for presentation to the Head of Department.

The department attended IDP sessions where the Infrastructure Plans and estimated budget were presented to stakeholders for the 2016/17 financial year.

The department consulted both its internal and external stakeholders to check if the District Service Charter and its service standards are understood and implemented at a local level during the 2016/17 financial year. These consultations gave feedback on how the Service Charters should be improved.



Service delivery Information tool

Current/Actualinformationtools Desiredinformationtools Actualachievement

The Masilime magazine and local radio stations are used to publicise the SDIP, the Service charter and the progress reports thereon.

Annual reports, Policy speech, Departmental policies are posted on the Website of the department.

An induction program is used to bring to the attention of the new staff the contents of the SDIP and Service Charter.

Efforts are made to have all documents placed on the public domain translated into local languages.

The Masilime magazine and local radio stations will be used to publicise the SDIP, the Service Charter and progress reports thereon.

Quarterly performance reports will be posted on the Website of the department.

Induction program will be used to bring to the attention of the new staff the contents of the SDIP and Service Charter.

Efforts will be made to have all documents placed on the public domain translated into local languages.

Information on the services provided has been easily accessible in the form of Display in departmental strategic documents on the Website, brochures, and pamphlets with departmental information.

Information is also contained in the Departmental Magazine (Masilime) and MEC’s on the Go (News Letter).

Additionally, LCD Screens display information of the programmes and events of the department such as EXCO Outreach: Stakeholders Engagement Sessions and/or Imbizos’.

Regional Radio Station and social network were used to promote the programmes of the department.

Strategic documents such as the Policy speech, APP and Operational plans were posted on the website.



Complaints mechanism

Current/actualcomplaintsmechanism

Desiredcomplaintsmechanism Actualachievements

The department is using a Customer Care guide as a system to deal with complaints.

The department deals with the • Presidential and Departmental Hotline complaints, requests, walk-ins, faxes, grievances, emails, sms’ and WhatsApp’s from Internal and External Stakeholders.

Customer Care advises citizens • how to lodge a complaint.

Complaints are registered within • 3 working days.

The complaint is acknowledged • within 7 working days.

All complaint details are treated • with confidentiality to protect the identity of individuals (e.g. the sexual harassment cases if any).

If the Customer Care Officer • cannot resolve or give assistance to the complainant it will be escalated to the relevant District Director or Director/Chief Director for action and resolution.

If the complaint is not resolved • within 14 working days we contact the customer and apologise for the delay and refer the complaint/ request to the Head of Department for intervention.

Once a response is received from • the Head of Department after 21 days we contact the customer and convey the response

The department will develop a Complaints Management Framework on how to deal with complaints, to ensure that departments have a feedback mechanism whereby citizens can communicate to government when services are not being delivered in line with the expectation as espoused within the Eight Batho Pele Principles.

Staff will be work shopped on the complaints handling system.

All complaints received will be consolidated, analysed and the results will also inform the strategic documents of the department.

The complaints handling system has been maintained.

The directorate successfully completed a perception survey. The objective of the survey was to :

Conduct a review and produce a - customer care service analysis.

Conduct a field base on customer - perception, needs, and priorities and produce data-sets.

To analyse data-sets and - results on customer perception quantitatively.

Produce a report and - recommendations.

A final report has been - submitted.

Staff have been work shopped on the complaints handling mechanism across the six Districts, Institutions and Head Office.

Currently in the period under review the resolution rate is at 94.59%.

2.3 Organisationalenvironment

The department continued to implement the culture change programme as a strategic flagship programme in the MTSF period. During for the period under review, a total of 605 staff members participated in the culture change programme. This programme is targeting employees of the department and is meant to assess the status of the culture and provide interventions that support a good culture which is aligned to the strategy and values of the Department.

The Department continues to strive for clean administration and good governance. In order to realize efficient and effective Human Resource Management, the Department developed an MTEF Human Resource Plan for 2016 -2019 to bolster the capacity of the department and to improve its turnaround times in the supply of labour targets set in the Strategic Plan.



The Departmental organizational structure is aligned to Service Delivery Model and the Agricultural Economic Transformation Strategy.

The department’s staff establishment was at 2 960 during the period under review, with 2815 filled posts and 145 vacant posts on PERSAL. This translated to 4.9% vacancy rate as at 31st March 2017. The annual departmental staff turnover rate was at 5.9% which translated to 176 employees that vacated the service. The analysis of attritions thereof was 54.5% related to retirements, 23.3% or resignations and 14.8% deaths which had financial implications on the processing of leave gratuities.

As part of addressing implementation of the newly developed Agricultural Economic Strategy, which is intended to reposition agriculture as a game changer, to stimulate economic growth and contribute towards provincial Gross Domestic Product (GDP); the department had effected 38 appointments in the following areas - Veterinary Services, Agricultural Advisory Services, Infrastructure Project Management and Research Services.

To build a Public Service Cadre that is professional, efficient and effective, 737 Officials received training to enhance their competencies in various fields of operation. A total of 196 newly appointed Officials attended the Compulsory Induction Program, which seeks to ensure effective development and professionalization of the Public Service.

During the period under review a total of fifty six (56) bursaries focusing on scarce skills were awarded to previously disadvantaged individuals in the following fields of study:-Veterinary Science, Plant Pathology, Agricultural Engineering, Soil Science and other Agricultural related qualifications. The gender composition of the total 56 external bursary holders, is 23 females and 33 males.

The Department continued to offer practical work experience to 113 Interns in various occupations under supervision of 70 Mentors. The intention of the programme is to equip the interns with knowledge, skills, and practical work experience preparing them for the labour market, cooperatives and entrepreneurial space.

The Department recognizes the wider potential benefit of investing in Employee Wellness and have made various interventions in HIV and TB Management Programmes such as distribution of condoms and screening of employees to promote the achievement of the Department’s objectives. Sixteen (16) Occupational Health and Safety (OHS) inspections and 25 awareness campaigns were conducted to promote a clean and efficient environment for employees.

To safeguard the departmental information from risks associated with disaster and loss, an ICT Service Continuity Plan was developed, implemented and is being monitored through data backups that are tested and kept in secure storage.

In an effort of improving efficiencies and strengthening capacity of the departmental Research Institute and also addressing aging infrastructure not compatible with the modern evolving ICT infrastructure, the ICT infrastructure upgrade for Dohne which includes the cabling of all blocks, installation of network switches, Un-Interrupted Power Supply (UPS) and Wi-Fi wireless access points had been commissioned and completed.



The PMDS Plan for 2016/17 was developed and approved. The PMDS Annual Assessments for Level 2-12 were finalized and compensated. The Contracting of employees for the year under review was at 99%. The SMS performance report was submitted to DPSA.

Awareness was created about the departmental functions and services amongst our clients and stakeholders through the provision of comprehensive communication support (i.e. story writing for website and departmental magazine, video capturing, media coverage and branding) for various activities and functions during the year under review. Notably amongst the events were: Support the back to school campaign; the Emmanuel Haven project for HIV/AIDS affected (winner of the MEC’s Special Award in Female Entrepreneur Award 2016); the introduction of drought resistant maize cultivars at the WEMA conference; the Citrus Producers Summit at the Cacadu District aimed at expanding citrus production; the MEC’s Post-Policy Speech engagement with the Herald newspaper, Daily Dispatch and other stakeholders; and supported the launch of the Mbizana Red Hub by SA President GJ Zuma who first visited on 31 March 2017 to launch the RED Hub, and the unveiling of the plaque for the Mbizana RED Hub .

The Department managed to achieve the turnaround time on the Presidential Hotline handling of customer complaints to 94.59% during the period under review.

2.4 Keypolicydevelopmentandlegislativechanges

There were no significant changes to the Department’s legislative and other mandates but internally the Department has reviewed a number of policies to guide its operations.

3. STRATEGIC OUTCOME ORIENTED GOALS

The Department is guided by the provisions of the National Development Plan, the Medium Term Strategic Framework (MTSF), and the Provincial Development Plan (PDP) when developing strategic goals to ensure alignment and integration. The following priorities embedded in these government policy priorities have been integrated in the strategic planning documents of the Department to ensure implementation:

• Ensure household food and nutrition security.

• Substantial investment in irrigation infrastructure.

• Greater investment in providing innovative market linkages for small-scale farmers in communal and land-reform areas.

• Research and Technology development, the returns to investment in agricultural research and development are high priority.

• Creating more jobs through agricultural development, based on effective land reform and the growth of irrigated agriculture and land production.

• Identify other potential partners in the agro-processing value chain to support smallholding development.

The Department has two strategic goals namely: Coherent and coordinated rural development for improved quality of life; and Good governance and clean administration. The subsumed latter goal is the need to promote and support commercial agricultural production through the value chain. In the period under review, a new strategy i.e. the Agricultural Economic Transformation Strategy of the province was



developed and approved by the Provincial Government. This trajectory seeks to create the province as a food basket (net exporter of agricultural products) instead of the current net importer status of such agricultural products The strategy seeks to empower rural communities (smallholders, communal farmers especially youth and women) to treat agriculture as business and be supported with tangible programmes and projects that enables them to derive optimal economic value.

The strategy will be implemented in 2017/18 financial year whereby by the department with work with strategic development partners in the commercial commodity sector to support and empower subsistence and smallholder farmers in a Cluster based partnership programme targeting grain and livestock products; and a Commodity based partnership programme targeting high value products.

Major investments were made on multi-year high technological infrastructure projects which would create wealth and income for the smallholder Black Farmers. To this end, the Wittekleibosch dairy parlour in Sarah Baartman which will be completed in 2017/18 to benefit Black Farmers and created much need job opportunities. Furthermore, Ripplemead Park Shed at Ngqushwa was commissioned to upscale citrus export to benefit Black Farmers, created job opportunities at construction phase. Other investment on agricultural infrastructure in the form of shearing sheds, fencing of arable land, renovation of dip tanks, and stock water systems were provided to maintain the safe meat consumption and much needed animal and crop production for subsistence and smallholder farmers.

The strategic objective is to increase crop production for the Communal Farmers, to this end, the department has managed to achieve the planned area that was cultivated. To fight food insecurity, the department supported households who were identified to be challenged with access to food by providing them with agricultural inputs which led to the effective household food production at household level in rural areas.

In order to improve the genetic material (quality and quantity) of livestock production for Subsistence Farmers in rural areas and Smallholder Farmers, quality bulls, rams, ewes, and goats were distributed to upscale livestock farming and to ensure that farmers earning income in their respective farming ventures.

One of the key government priorities is to achieve inclusive growth as defined in the National Development Plan-vision 2030. In the past three financial years, the department through the entity i.e. Eastern Cape Rural Development Agency (ECRDAR) established four Rural Enterprise Development Hubs (RED Hubs) at Mqanduli, Ncora, Lady Frere and Mbizana. In the past financial year, maize was sold to Spar retail outlets. In the period under review, the RED Hubs continued to expand on their infrastructure, and maize meal continued to be supplied to retail outlets. The Mbizana RED Hub was launched by President Zuma as part of the government initiative to stimulate rural manufacturing agro-enterprises in the rural areas. These interventions are ways to ensure that growth of sustainable rural agricultural enterprise and industries become a reality for the rural communities who face poverty, inequality and unemployment challenges.



4. PERFORMANCE INFORMATION BY PROGRAMME

4.1 Programme1:Administration

Objective: To manage and formulate policy directives and priorities and, to ensure there is appropriate support service to all other programmes with regard to finance, human capital, communication and supply chain management.

ListofStrategicObjectives:

• SO 1.1 Political leadership and strategic direction provided

• SO 1.2 Overall accountability, integration and implementation of strategy provided.

• SO 1.3 Overall financial, human and technological management support provided.

ListofSub-Programmes:

• Sub-Programme 1.1: Office of the MEC,

• Sub-Programme 1.2: Senior Management,

• Sub-Programme 1.3: Corporate Services,

• Sub-Programme 1.4: Financial Management,

• Sub-Programme 1.5: Communication Services.



Sub-Programme:1.1:OfficeoftheMEC

Objective: To set priorities and political directives in order to meet the needs of clients.

SG 2: SO 2.1 Political leadership and strategic direction provided.

PerformanceIndicator

ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom

plannedtargettoactualachieve-mentfor2016/17

Commentondeviations

1.1 Number of MEC’s engagements with Public Stakeholders (IGR /MinMec /MuniMec) and Private Enterprise conducted to ensure optimal alignment of the Department.

16 15 32 32 32 - No deviation

1.2 No of statutory documents tabled at the Legislature.

3 4 5 7 12 5 Over Performance

1.3 Number of MEC’s special programmers’ intervention implemented to cater for rural development priorities.

12 8 8 8 8 - No deviation

Reasonsforalldeviations

PI 1.2: The targets were affected by the changes in Legislature calendar which led to the non-tabling of the statutory documents of the previous year. The documents are as follows: Annual Performance Plan; Operational Plan; Policy Speech; Annual Performance Plan for Eastern Cape Rural Development Agency; and Operational Plan for Eastern Cape Rural Development Agency.

Strategytoovercomeareasofunderperformance

None.

Changestoplannedtargets

None.



Sub-Programme1.2:SeniorManagement

Objective: To translate policies and priorities into strategies and programmes for effective service delivery and to manage, monitor and control performance.

SG 2: SO 2.2 Overall accountability, integration and implementation of strategy provided.


ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

2.1 Number of strategic leadership and management sessions held to enhance efficiency in the Department.

- 16 12 12 12 - No deviation

2.2 Number of organizational performance review sessions concluded.

- 4 4 4 4 - No deviation

2.3 Number of governance sessions concluded.



None.


None.


None.



Sub-Programme1.3:CorporateServices

Objective: To provide support service to the other programmes with regard to Human Resources management and development and Information Communication Technology service.

SG 2: SO 2.2 Overall accountability, integration and implementation of strategy provided.SG 2: SO 2.3 Overall financial, human and technological management support provided


ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

3.1 Level of MPAT rating to improve human resource management (MPAT KRA 1&3) in relation to the overall performance of the Department.

- *3 *3 *3 *3 - No deviation

3.2 Number of interventions implemented on auxiliary services as per legislative framework to ensure conducive working environment.


3.3 Number of ICT implemented projects in accordance with the ICT Governance Framework to enhance technological efficiencies.


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


3.5 Number of evidence based Policies developed/reviewed. - 12 8 5 5 - No deviation

*ManagementofPerformanceandAssessmentTool(MPAT)rating

Reasonforalldeviations

None.


None.


None.



Sub-Programme1.4:FinancialManagement

Objective: To provide effective support services with regard to financial planning and control and supply chain management.

SG 2: SO 2.3 Overall financial, human and technological management support provided.


ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

4.1 Number of days taken to pay suppliers in terms of the PFMA.

- - 22 30 days 17 13 Over Performance

4.2 Number of credible Interim and Annual Financial Statements submitted on due date in accordance with the modified cash accounting guidelines.

5 - 5 4 4 - No deviation

4.3 Number of MTEF budget documents and In year Monitoring reports submitted to Provincial Treasury by the due date.

12 - 15 14 14 - No deviation

4.4 Reports on monitoring and management of contracts to assess supplier performance and contracts management.

- - 12 12 12 - No deviation


PI 1.1: Over-performance is as a result of the management of accruals in all districts, institutions as well as Head Office, hence the reduction in the number of days.


None.


None.



Sub-Programme1.5:CommunicationServices

Objective:To improve internal and external communications of the Department through written, verbal, visual and electronic media as well as marketing and advertising of the Departmental services.

SG 2: SO 2.2 Overall accountability, integration and implementation of strategy provided.


ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

5.1 Number of projects implemented in support of departmental priorities in accordance with the Communication plan.


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



None.


None.


None.



LI

NK

ING

PER

FOR

MA

NC

E W

ITH

BU

DG

ETS

The

prog

ram

me

has

achi

eved

all

it’s

plan

ned

perfo

rman

ce in

dica

tors

and

it’s

allo

cate

d bu

dged

ADM

INIS

TRAT

ION

2016

/201

720

15/2

016

Final

Appropriation

R’00

0

Actual

Expenditure

R’00

0

(Over)/Un

der

Expenditure

R’00

0

Final

Approp

riation

R’00

0

Actual

Expend

iture

R’00

0

(Over)/Un

der

Expend

iture

R’00

01.

1O

ffice

of t

he M

EC12

966

12 9

5412

11 4

3111

629

(198

)1.

2Se

nior

Man

agem

ent

62 5

3241

937

20 5

9562

191

69 4

35(7

244

)1.

3C

orpo

rate

ser

vices

216

261

216

194

6719

7 42

919

6 89

253

71.

4Fi

nanc

ial M

anag

emen

t 15

5 01

315

5 51

1(4

98)

147

823

148

130

(307

)1.

5C

omm

unica

tion

ser

vices

8

824

8 83

1(7

)8

535

8 32

521

0TO

TAL

455

596

435

427

20 1

6942

7 40

943

4 41

1(7

002)



4.2 Programme2:SustainableResourceManagement

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

Listofstrategicobjectives

• SO1.2 Improved livestock production.

• SO1.3 Increased crop production.

ListofSubprogrammes

• Sub-Programme2.1:Engineering Services

• Sub-Programme2.2: Land Care

• Sub-Programme2.3: Land Use Management

• Sub-Programme2.4: Disaster Management

Sub-Programme2.1:EngineeringServices

Objective: To provide engineering support (planning, development, monitoring and evaluation) with regard to irrigation technology, on-farm mechanisation, value adding, farm structures, resource conservation management, operation and maintenance of farm equipment, machinery, tools and implements solutions.

SG 1: SO 1.2 Improved livestock production.SG 1: SO 1.3 Increased crop production.


ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of agricultural infrastructure established.

103 101 110 104 104 - No deviation

1.2 Number of clients provided with engineering advice during official visits to enable clients to operate and maintain infrastructure machinery or equipment.

1 205 1 123 1 201 855 1 060 205 Over Performance


PI1.2: The demand for advice on stock water systems, refurbishment of boreholes, minor repairs, maintenance, routine servicing of tractors and implements, exceeded the planned targets due to drought.


None.

ChangestoplannedtargetsNone.



Sub-Programme2.2:LandCare

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

SG 1: SO 1.2 Improved livestock production.SG 1: SO 1.3 Increased crop production


ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

2.1 Number of awareness campaigns conducted on Land Care to promote conservation of natural resources.


2.2 Number of capacity building exercises conducted within approved Land Care projects to empower beneficiaries/ organised structures to implement conservation measures for natural resources.


2.3 Number of hectors protected/rehabilitated to improve agricultural production.

6 529 3 616 6 433 3 978 2 611 (1 367) Under Performance

2.4 Number of beneficiaries adopting practicing sustainable production technologies and practices for improved livelihoods

1 175 872 912 572 592 20 Over Performance

2.5 Number of green jobs created.

4 208 1 933 1 203 452 519 67 Over Performance


PI 2.1: Over-performance is due to an additional awareness campaign in Sarah Baartman being carried out in response to a request.

PI 2.2: Five projects requested additional training and capacitation that were done during the year.

PI 2.3: Most of the land currently targeted for Agricultural production was verified in previous financial years and this resulted in less verification being required during this period.

PI 2.4: Awareness campaigns contributed to more beneficiaries adopting sustainable production technologies than projected.

PI 2.5: Contingency budgets not used on projects were used to increase job opportunities.


Through the application of SPLUMA, a more structured target setting will be enabled.


None.



Sub-Programme2.3:LandUseManagement

Objective: To promote the implementation of sustainable use and management of natural agricultural resources through regulated Land Use (Act 43 of 1983 and Act 70 of 1970 and related legislation).



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom

plannedtargettoactualachieve-

mentfor2016/17

Commentondeviations

3.1 Number of agricultural land hectares verified, (land use for planning and development purposes (hectares).

300 247 302 167 419 578 223 430 259 171 (35741) Over Performance

3.2 Number of complaints received and attended for agricultural land and boundary disputes in communal areas.

94 72 92 94 86 (8) Under Performance

3.3 Number of sites demarcated for development purposes in rural /communal areas.

- 1 435 5 346 3 434 3 606 172 Over Performance

3.4 Number of hectares of agricultural land protected through guiding subdivision/rezoning/change of agricultural land use.

- - 3 274 5 390 954 (4 436) Under Performance

3.5 Number of assessments of land for alternative/diverse agricultural uses to benefit farmers.


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


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

- 95 129 99 189 90

Over Performance

3.8 Number of natural/agricultural resources maps produced for planning and decision making purposes.

- - 315 169 404 235

Over Performance





ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom

plannedtargettoactualachieve-

mentfor2016/17

Commentondeviations

3.9 Number of environmental assessment reports submitted to strengthen linkages between environment and agricultural activities.

- - 19 32 29 (3)

Under Performance


PI 3.1 Deviation is due to more requests from Department of Rural Development and Land Reform to verify new sites for their land use suitability in the Land Reform Programme.

PI 3.2 Less applications were received to address land demarcation disputes than was projected.

PI 3.3 Due to a back log of applications and an increased demand for rezoning and sub-division performance exceeded the target.

PI 3.4 The area affected per application attended was smaller than planned causing the performance to be below the target.

PI 3.5 More applications for change of land use were received and attended too, than was projected.

PI 3.7 More requests for farm plans were received than was planned due to an increase in forward planning for departmental programmes.

PI 3.8 Improved Geographic Information System technology enabled more effective provision of maps to clients.

PI 3.9 Less applications for environmental assessments were received than anticipated.


The underperforming indicators in 3.2; 3.4; and 3.9 are sensitive defectives outside the department’s control. Future planning will consider the changed demand for the services.


None.



Sub-Programme2.4:DisasterRiskManagement

Objective:To provide agricultural disaster risk management support services to clients/farmers.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

4.1 Number of disaster relief schemes managed.


4.2 Number of disaster risk reduction programmes managed.

4 1 1 1 1 -No deviation


None.


None.


None



LI

NK

ING

PER

FOR

MA

NC

E W

ITH

BU

DG

ETS

The

prog

ram

mm

e in

clud

es 1

8 pe

rform

ance

indi

ctor

s. P

erfo

rman

ce in

14

of th

ese

indi

cato

rs w

as o

n or

abo

ve th

e ta

rget

s se

t and

und

er-p

erfo

rman

ce o

ccur

red

in 4

of t

he in

dica

tors

. The

goo

d pe

rform

ance

mat

ches

the

leve

ls o

f exp

endi

ture

gre

ater

than

99%

for t

he y

ear.

SustainableRe

sourceManagem

ent

2016

/201

720

15/2

016

Final

Appropriation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expenditure

R’00

0

Final

Approp

riation

R’00

0

Actual

Expend

iture

R’00

0

(Over)/Un

der

Expend

iture

R’00

02.

1En

gine

erin

g Se

rvic

es

57 6

0857

157

451

67 4

5266

904

548

2.2

Land

Car

e 11

632

11 6

2111

11 6

6612

118

(452

)2.

3La

nd U

se M

anag

emen

t 45

971

45 7

3823

345

804

45 6

4116

32.

4D

isast

er R

isk M

anag

emen

t -

--

--

-TO

TAL

115

211

114

516

695

124

922

124

663

259



4.3 Programme3:FarmerSupportDevelopment

Objective:To provide support to all farmers through agricultural development programmes.

Listofstrategicobjectives

• SO1.2Improved livestock production.

• SO1.3 Increased crop production.

Listofsubprogrammes

• Sub-Programme3.1:Farmer Settlement and Development.

• Sub-Programme3.2: Extension and Advisory Services.

• Sub-Programme3.3: Food Security.

Sub-Programme3.1:FarmerSettlementandDevelopment

Objective: To provide support to small holder and commercial producers for sustainable agricultural development.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of smallholder producers receiving support.

972 915 2 357 2 447 2 911 464 Over Performance

1.2 Number of agricultural infrastructure development initiatives completed that contribute to increased agricultural production levels and/or efficiencies for food security and economic development.


1.3 Number of jobs created in support of rural development in previously disadvantaged farming areas.

964 465 1 018 457 818 361 Over Performance


PI’s 1.1, 1.2 & 1.3: The over performance was the results of projects that were added during the second budget appropriation. That resulted in smallholders supported and number of jobs created.


None.


None.



Sub-Programme3.2:ExtensionandAdvisoryServices

Objective: To provide extension and advisory services to farmers.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

2.1 Number of smallholder producers supported with agricultural advice.

1 711 1 193 1 709 1 520 1 521 1 Over performance

2.2 Number of Commodities supported with technical or generic business advice to enhance farming outputs.

2515 28 7 *7 7 - No deviation

2.3 Number reports on implemented projects in accordance with the Extension Recovery Plan (ERP).


*Thisfigure(*7)isnotcumulativeasitrepresentsthesamenumberofcommoditygroupssupportedthroughouttheyear.


Over achievement resulted from additional technical advice requested by Producers prompted by observations needing urgent expert attention during production stages.


None.


None



Sub-Programme3.3:FoodSecurity

Objective: To support, advise and coordinate the implementation of pillar one of the Integrated Food Security Strategy of South Africa (IFSS).



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

3.1 Number of households benefiting from agricultural food security initiatives.

11 532 13 634 8 653 10 000 10 112 112 Over-performance

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


3.3 Number of hectares cultivated for food production in communal areas and land reform projects.

12 888 180 68.5 21 064 43 800 50 713 6 913 Over-performance

3.4 Number of hectares supported to horticultural crops to produce for export and for commercial purposes.

- - 1 036 2 946 2165 (781) Under-performance

3.5 Number of hectares planted to fodder crops to support livestock.

- - 1 209 1 717 547 (1 160) Under-performance

3.6 Number of hectares planted to industrial crops (Chicory and Canola) for commercial purposes.

- - 47 759 78 (681) Under-performance

3.7 Number of tons produced per hectare (maize).

- - - 197 100 23 710 (173 390) Under-performance


PI 3.1: Over-performance was due to partnerships with other state departments and the local authorities.

PI 3.3:. Over-performance was due to partnerships with the private sector, state departments and local authorities.

PI 3.4: Under performance was caused by unavailability of required material (chemicals) from the local market.

PI 3.5: Under-performance was due to the change in targets from fodder to maize production in Joe Gqabi, Amathole, Chris Hani and Sarah Baartman district.

PI 3.6: The drought that was prevalent in the Province also affected the Ndlambe local municipality



made it impossible to achieve the set target. The Sarah Baartman district did not plant the canola industrial crop that they planned to plant during the first quarter of 2016/17.

PI 3.7: Under-performance the 2015/16 maize crop was heavily affected by extreme dry weather conditions or drought that was officially declared as a national disaster in South Africa, hence, the significant under-performance for this indicator in terms of yields attained per hectare.


PI’s3.4 and 3.5; Tasks teams from head office led by chief directors of district coordination, farmers support & development and research units have been established to provide support to all the districts for purposes of improving service delivery.

To strategies against under-performance in horticultural crops, the department has established partnerships with commodity groups mainly in pineapple, citrus and deciduous in assisting the department to acquire the requisite needed by farmers at the right time and for transferring of skill.

PI’s 3.6 and 3.7: Future planning will take into consideration the future and prevailing climatic conditions.


None.



LI

NK

ING

PER

FOR

MA

NC

E W

ITH

BU

DG

ETS

The

prog

ram

me

has a

chie

ved

9 ou

t of 1

3 in

dica

tors

, hen

ce, u

nder

exp

endi

ture

occ

urre

d. F

urth

erm

ore,

the

unde

r exp

endi

ture

refle

cted

is d

ue to

, Com

pens

atio

n of

Em

ploy

ees

(CoE

) fun

ding

for c

ompe

nsat

ion

of e

mpl

oyee

s w

as m

ade

avai

labl

e la

te in

the

finan

cial

yea

r due

to th

e de

partm

ent’s

relia

nce

on a

ttriti

on p

osts

, G

oods

& S

ervi

ces

in p

artic

ular

at A

mat

hole

dis

trict

pro

duct

ion

inpu

ts d

eliv

ered

cou

ld n

ot b

e pa

id d

ue to

late

sub

mis

sion

of i

nvoi

ces

by s

ervi

ce p

rovi

ders

. C

apita

l und

er e

xpen

ditu

re is

due

mai

nly

to la

te d

eliv

ery

of fa

rmin

g eq

uipm

ent (

tract

ors

and

impl

emen

ts),

rete

ntio

ns fo

r inf

rast

ruct

ure

proj

ects

and

com

plet

ed

bore

hole

s.

FARM

ER S

UPPO

RT D

EVEL

OPM

ENT

2016

/201

720

15/2

016

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

itureR’000

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

itureR’000

3.1

Farm

er S

ettle

men

t 23

9 91

223

6 06

53

847

83 4

4380

685

2 75

83.

2Ex

tens

ion

and

Advis

ory

serv

ices

391

628

391

217

411

376

460

375

625

835

3.3

Food

Sec

urity

17

9 73

617

8 26

21

474

200

787

191

654

9 13

3TO

TAL

811

276

805

544

5 73

266

0 69

064

7 96

412

726



4.4 Programme4:VeterinaryServices

Objective: To provide veterinary services to clients in order to ensure healthy animals, safe animal products and welfare of people of South Africa.

ListofstrategicObjectives

• SO1.2 Improved livestock production.

ListofSub-Programme

• Sub-Programme4.1:Animal Health.

• Sub-Programme4.2:Export Control.

• Sub-Programme4.3:Veterinary Public Health.

• Sub-Programme4.4: Veterinary Laboratory Services.

Sub-Programme4.1:AnimalHealth

Objective:To facilitate and provide animal health services, in order to protect the animal and human population against identified zoonotic and/ diseases of economic importance, and primary animal health and welfare programme/projects and to allow for the export of animals and animal products.

SG 1: SO 1.2 Improved livestock production.

PerformanceIndicatorActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom

plannedtargettoactualachievem

entfor 2016/17 Comment

ondeviations

1.1 Number of epidemiological units visited for veterinary interventions.

- - 10 091 14 289 14 012 (277) Under-performance

1.2 Number of animals vaccinated against controlled animal diseases according to Animal Disease Act (Act 35 of 1984).

1 510 999 1 674 354 1 577 925 1 593 331 1 857 490 264 159 Over-performance

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

1 144 2394 2 309 1 942 2 300 358 Over-performance

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

197 673 279 793 186 037 242 002 165 409 (76 593) Under-performance





ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom

plannedtargettoactualachievem

entfor 2016/17 Comment

ondeviations

1.5 Number of treatments applied to sheep for the control of sheep scab to improve the quality and quantity of the wool clip.

7 048 841 7 690 803 7 968 206 7 206 269 8 329 734 1 123 465 Over-performance

1.6 Number of treatments applied to animals for external parasite control.

2 426 707 4 171 436 4 110 932 4 171 436 4 295 127 123 691 Over -performance


PI 1.1: Each visit to the epidemiology unit is counted as an event. The subsequent visit to the same epidemiological unit was counted as a separate event. This did not occur in all instances, because a follow up visit was treated the same as the first visit. Therefore, under reporting is as a result of corrections to the visits conducted to the same unit.

PI 1.2: The over achievement is as a result of rabies outbreaks which necessitated the revaccination of pets in the communities where outbreaks occurred.

PI 1.3: The unprecedented interest in buffalo veterinary movement certification resulted in over performance.

PI 1.4: DAFF gave an interim approval for the continuation of priority samples for contagious abortion (CA) only. The limited capacity of the laboratories to test for all other diseases caused the under-performance.

PI 1.5: There were more sheep treated as a result of sheep scab outbreaks in the commercial farming areas of the Chris Hani District that caused the over-performance.

PI 1.6: Over achievement is as a result of warm weather conditions that continued up to June 2016 that increased tick infestation which resulted into increased dipping requirements.

Strategytoovercomeareasofunderperformance:

PI 1.1: The manner in which counting and recording the performance has been reviewed and standardisation of the counting method is being implemented.

PI 1.4: The progress of SANAS accreditation of the provincial laboratory is at an advanced stage.


None.



Sub-Programme4.2:ExportControl

Objectives: To facilitate the export of animals and animal products through certification of health status.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of clients serviced for animal and animal products export control.

- - 2 240 530 3 390 2 860 Over performance

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

47 51 70 51 57 6 Over performance

1.3 Number of reports issued on the development of a departmental Early Warning Unit dealing with adverse agricultural incidences and disasters.

12 12 12 12 12 - No deviation

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


1.5 Number of reports on early warning advisories issued.

- 12 12 12 12 - No deviation


PI 1.1: Over performance is due to increased requests from clients for export of animals and animal products.

PI1.2: There was an increased demand for the export of animals and animal products.

PI 1.4: There was an increased number of outreach programmes where the vet service offering was displayed.


None.


None.



Sub-Programme4.3:VeterinaryPublicHealth

Objective: To promote the safety of meat and meat products at harvesting level through the registration and monitoring of abattoirs.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

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

109 111 107 104 104 - No Deviation

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


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

231 291 286 291 374 83 Over-performance

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

1224 1300 1 460 1 300 1 527 227 Over performance

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

2632 3040 2 504 3 040 3 165 125 Over performance

1.6 % level of abattoircompliance tomeatsafetylegislation.

- - 91.9% 60% 90.7% 30.7% over performance

Reasonsforalldeviations:

PI 1.2: The target was based on the 2014/15 audited performance and the improved staff complement during 2015/2016 is making a difference in the unit.

PI1.3: The target was based on the 2014/15 audited performance and the improved staff complement during 2015/2016 is making a difference in the unit.

PI 1.4: The target was based on the 2014/15 audited performance and the improved staff complement during 2015/2016 is making a difference in the unit.






None.


None.



Sub-Programme4.4:VeterinaryLaboratoryServices

Objective: To provide veterinary diagnostic, laboratory and investigative services that support and promote animal health and production towards the provision of safe food.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of specimen tested for diagnostic purposes.

123 113 159 287 108 746 126 846 121 371 (5475) Under-performance

1.2 Number of testsperformed the qualityof which meets theISO 17025 standardandOIErequirements.

- - - 108 032 56 624 (51 408) Under-performance

1.3 Number of primary animal health care (PAHC) interactions held to minimize the impact of disease occurrence.

3 229 3 767 3 867 3 767 4 915 1 148 Over-performance


PI 1.1: The late arrival of the RBT antigen led to underperformance.

PI 1.2: Lack of SANAS accreditation for the Provincial Laboratories prevented the department from performing tests that meet the ISO17025.

PI 1.3: As a result of 16 additional Vets that joined the department to perform compulsory community service in the Eastern Cape Province, more interactions could be performed.


PI1.1: The targets will be adjusted downwards based on the previous year’s performance

PI1.2: The Eastern Cape Laboratories are working towards obtaining SANAS accreditation.


None.



LI

NK

PER

FOR

MA

NC

E IN

DIC

ATO

RS

WIT

H T

HE

BU

DG

ETS:

The

unde

r exp

endi

ture

in th

is p

rogr

amm

e is

mai

nly

unde

r Goo

ds &

Ser

vice

s an

d C

apita

l. Th

e de

lays

in th

e de

liver

y of

ani

mal

med

icin

e ea

rlier

in th

e ye

ar

cont

ribut

ed to

the

year

-end

pos

ition

of t

his

item

. The

und

er e

xpen

ditu

re o

n C

apita

l is

due

to d

elay

s in

the

deliv

ery

of la

bora

tory

equ

ipm

ent.

VETE

RINA

RY S

ERVI

CES

2016

/201

720

15/2

016

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

iture

R’00

0

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

iture

R’00

04.

1An

imal

Hea

lth

256

606

256

016

590

233

161

234

201

(1 0

40)

4.2

Expo

rt C

ontro

l 8

613

8 49

112

28

021

7 39

362

84.

3Ve

terin

ary

Pub

lic H

eath

14

901

14 6

5025

114

083

13 8

1227

14.

4Ve

terin

ary

Labo

rato

ries

16 5

5316

105

448

16 1

8115

941

240

TOTA

L29

6 67

329

5 26

21

411

271

446

271

347

99



Programme5:ResearchandTechnologyDevelopmentServices

Objective: To provide expert and needs based research, development and technology transfer services impacting on development objectives

ListStrategicObjectives

• SO 1.2: Improved livestock production.

• SO 1.3: Increased crop production.

Listsubprogrammes

• Sub-Programme5.1:Research.

• Sub-Programme5.2:Technology Transfer Services.

• Sub-Programme5.3: Infrastructure Services.

SubProgramme5.1:Research

Objective: To improve the agricultural production through conducting, facilitating and coordinating medium to long term research and technology development projects.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of research and technology development projects implemented to improve agricultural production.

91 75 70 70 70 - No deviation

1.2 Number of profiling reports conducted for promotion of sustainable livelihoods in identified areas.


1.3 Number of improved livestock introduced for animal genetic improvement of the herd to ensure sustainable food security.

- 459 1 332 1 870 2 587 717 Over Performance

1.4 Number of livestock enterprises supported to increase production and for value addition.


1.5 Time taken to analyse plant, soil and water samples and provision of results to the clients to make informed decisions (three weeks per client).

4 4 4 3 weeks 3 - No deviation





ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.6 Number of spatial data disseminated to end users for planning purposes.

- 183 207 150 229 79 Over Performance


PI 1.2: The data mining project was not completed due to large volumes of data received within the Province, the data is currently being analysed to complete the report and create the database

PI 1.3: The over achievement occurred as a result of more sheep and goats requested and delivered to farmers than cattle, thus provided at a cheaper unit price than the planned ratio between large and small stock.

PI 1.6: The drought mitigation plans and reports necessitated more drought condition data sets produced and disseminated to stakeholders.


Appropriate data handling software has been secured to capture and maintain provincial agricultural data bases.


None.



Sub-Programme5.2:TechnologyTransferServices

Objective: To disseminate information on research and technology developed to clients, peers and scientific community.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of scientific papers published nationally or internationally.


1.2 Number of research presentations made nationally or internationally.


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

4 30 18 27 37 10Over Performance

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

4 5 5 4 10 6

Over Performance

1.5 Number of information packs developed for dissemination to farmers and the general public.

10 8 12 8 8 -

No deviation

1.6 Evaluation report submitted on the functionality of the Agricultural Information System submitted.

- - 1 1 1 -

No deviation


PI 1.1: Delays in the publications of scientific journals caused the underperformance. Papers were submitted, reviewed and accepted by scientific reviewers, but not yet published.

PI1.2: Utilisation of new platforms (Society for Medicinal Plants and Economic Development (SOMPED), South African Society for Agricultural Extension (SASAE) and RUFORUM Africa Conference) created new opportunities for research to present their work.

PI1.3: The visit of Göttingen University (Germany) led to a special Aquaculture Seminar that had more speakers than originally planned.

PI1.4: The linkage between DRDAR, ARC and Du Pont led to additional demonstration trials in Amathole District in preparation for the WEMA conference that was held in East London in February 2017.




PI1.1: Target setting mechanism will be reviewed to take care of the peer review process.


None.



Sub-Programme5.3:InfrastructureSupportServices

Objective: To provide and maintain infrastructure facilities for the line function to perform their research and other functions, i.e. experiment farms.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of researchinfrastructuremanaged. 7 7 7 7 7 - No deviation


None.


None.


None.



LI

NK

ING

PER

FOR

MA

NC

E W

ITH

BU

DG

ETS

The

Prog

ram

, dur

ing

the

year

, im

plem

ente

d 13

Per

form

ance

Indi

cato

rs; o

f whi

ch 1

1 ta

rget

s w

ere

met

and

two

unde

r ach

ieve

d. T

he P

rogr

amm

e sp

ent 9

9.9%

of

its

budg

et. T

he tw

o pe

rform

ance

indi

cato

rs th

at w

ere

unde

r-ach

ived

wer

e m

inor

cos

t driv

ers,

bec

ause

thes

e ar

e ba

sed

on a

naly

sing

and

writ

ing

of d

ata

that

is a

lread

y co

llect

ed.

RES

EAR

CH

AN

D T

ECH

NO

LOG

Y D

EVEL

OPM

ENT

SERV

ICES

2016

/201

720

15/2

016

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

itureR’000

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

itureR’000

5.1

Res

earc

h

147

584

147

219

365

135

234

135

553

(319

)

5.2

Tech

nolo

gy T

rans

fer S

ervi

ces

27 5

7027

654

(84)

5 11

85

151

(33)

5.3

Infra

stru

ctur

e Su

ppor

t Ser

vice

s1

478

1 40

870

1 67

91

612

67

TOTA

L17

6 63

217

6 28

135

114

2 03

114

2 31

6(2

85)



PROGRAMME 6: AGRICULTURAL ECONOMIC SERVICES

Objective: To provide timely and relevant agricultural economic services to the sector in support of sustainable agricultural and agri-business development to increase economic growth.

Liststrategicobjectives

• SO 1.2 Improved livestock production.

• SO 1.3 Increased crop production.

Listofsubprogrammes

• Sub-Programme 6.1: Agri-business support and development.

• Sub-Programme 6.2: Macroeconomic support.

Sub-Programme6.1:Agri-BusinessSupportandDevelopment

Objective:To provide Agric-business support through entrepreneurial development, marketing services, value adding, production and resource economics.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of Agri-Businesses supported with agricultural economic services towards accessing markets.


1.2 Number of clients who have benefitted from agricultural economic advice provided.

2 114 3 180 3 700 3 367 5 483 2 116 Over-performance

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



PI 1.1: Over performance is due to keen interest by farmers to sell their livestock due to unusually dry winter conditions and responses to marketing workshops held in March - April exceeding expectations.

PI1.2: More clients benefited from Economic advice due to workshops conducted in the districts and with other Departments for maize marketing and Co-ops.



PI1.3: More studies were done due to a request by DRDLR to assist with Business Plans for their PLAS farms in Sarah Baartman and Amathole Districts as well as the response by the Department to advise on rebuilding their livestock numbers after the drought.


None.

Changestoplannedtargets:

None.



Sub-Programme6.2:MacroeconomicsSupport

Objective: To provide macroeconomic and statistical information on the performance of the agricultural sector in order to inform planning and decision making.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of agricultural economic information responses provided to assist clients to make informed decisions on/or beyond farm gate.


1.2 Number of economic reports compiled to assist clients to make informed economic decisions for planning purposes.



PI1.1: Farmers responded very well as a result of information days held exposing them to information and services of the department.

PI1.2: A Beef Economic Report that was developed and distributed to farmers resulting in additional reports being requested and compiled.


None

Changestoplannedtargets:

None



LI

NK

ING

PER

FOR

MA

NC

E W

ITH

BU

DG

ETS:

The

over

-per

form

ance

in a

ll fiv

e pe

rform

ance

indi

cato

rs is

con

site

nt w

ith t

he 9

8% e

xpen

ditu

re,

espe

cial

ly s

ince

the

2%

und

er e

xpen

ditu

re r

elat

es t

o C

ompe

nsat

ion

of E

mpl

oyee

s. T

he e

xpen

ditu

re o

f ope

ratio

nal b

udge

t is

at 9

8%.

AGRI

CULT

URAL

ECO

NOM

IC S

ERVI

CES

2016

/201

720

15/2

016

Final

Appropriation

R’00

0

Actual

Expenditure

R’00

0

(Over)/Un

der

Expenditure

R’00

0

Final

Approp

riation

R’00

0

Actual

Expend

iture

R’00

0

(Over)/Un

der

Expend

iture

R’00

06.

1Ag

ri-Bu

sine

ss S

uppo

rt an

d D

evel

opm

ent

9 18

69

093

9330

563

27 4

763

087

6.2

Mac

roec

onom

ics

Supp

ort

25 3

8324

746

637

25 0

9024

980

110

TOTA

L34

569

33 8

3973

055

653

52 4

563

197



PROGRAMME 7: STRUCTURED AGRICULTURAL EDUCATION AND TRAINING

Objective: To facilitate and provide structured agricultural education and training in line with the Agricultural Education and Training Strategy to all participants in the agricultural sector in order to establish a knowledgeable, prosperous and competitive sector.

StrategicObjectives

• SO 1.2 Improved livestock production.

• SO 1.3 Increased crop production.

ListSub-Programmes

• Sub-Programme 7.1: Higher Education and Training.

• Sub-Programme 7.2: Agricultural Skills Development.

Sub-Programme7.1:HigherEducationandTraining

Objective:To provide tertiary agricultural education and training from NQF Levels 5 to anybody who meets the minimum requirements to study in agriculture and related fields.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of students enrolled to complete accredited Higher Education and Training (HET) qualifications.


1.2 Number of agricultural Higher Education and Training graduates.



PI1.1: More students enrolled at TARDI as a result of the bursary allocations by the Health and Welfare SETA which enabled the institute to accommodate more students for the Animal Health Diploma offered. At Fort Cox repeating students had to be accommodated.

PI1.2: The pass rate at Fort Cox was 93 % which is due to 9 students not passing.


PI1.2: Student tutorship will intensified to boost the pass rate.


None.



Sub-Programme7.2:AgriculturalSkillsDevelopment

Objective:To provide formal and non-formal training on NQF levels 1 to 4 through Further Education and Training (FET) structured education and training programmes to all interested agricultural role players.



ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of participants trained in agricultural skills development programmes.

1 635 2 168 2 259 2 240 2 043 (197) Under performance

1.2 Number of Educators capacitated in agricultural science related fields to improve their understanding of the sector needs.

- 70 94 80 88 8 Over performance

1.3 Number of school going learners exposed to various fields in the agriculture and rural development sector in order to attract new entrants to the sectors.

- 1 045 288 120 255 135 Over performance

1.4 Number of out of school youth participated /trained in learnership program

- - 170 170 212 42 Over performance

1.5 Number of farms/projects mentored according to different commodities in order to make them `profitable

- - - 40 - (40) Under performance

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

- 114 191 190 188 (2) Under performance

1.7

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

2 4 2 2 2 0 No deviation


PI 1.1: Trainees did not attend as expected and some left during the training course to attend other personal matters.

PI 1.2: The educator training attracted more educators from Department of Education than what was planned.

PI 1.3: Awareness amongst schools of the school garden program attracted more schools than expected and the department managed to provide gardens to 8 more schools within its budget.



PI 1.4: This is a multiyear program resulting in 42 learners being carried over from one calendar year to the next within the allocated budget of the Learnership Program.

PI 1.5: The mentorship program was delayed to conform to the Departmental Strategy to provide for mentorship in collaboration with identified commodity partnerships.

PI1.6: Two farm workers could not be released by their employers due to work commitments at the time.


PI1.1: The Training Plan for 2017/18 has been approved in the last quarter of 2016/17 which allows training to commence sooner.

PI 1.5 The mentorship program will form part of the SLA to be signed with industry partners.

PI 1.6. Communication with farm owners will be conducted on time and regularly to release workers for the training.


None.



LI

NK

ING

PER

FOR

MA

NC

E W

ITH

BU

DG

ETS

The

depa

rtmen

t man

aged

to a

chie

ve 5

out

of 9

per

form

ance

indi

cato

rs a

nd th

e pr

ogra

mm

e fu

lfille

d al

l its

com

mitm

ents

in te

rms

of tr

ansf

ers

to F

ort C

ox.

Und

er e

xpen

ditu

re o

ccur

red

mai

nly

in C

ompe

nsat

ion

of E

mpl

oyee

s (C

oE)

fund

ing

was

mad

e av

aila

ble

late

in th

e fin

anci

al y

ear

due

to th

e de

partm

ent’s

re

lianc

e on

attr

ition

pos

ts a

nd G

oods

and

Ser

vice

s. F

urth

erm

ore,

ther

e w

as u

nder

exp

endi

ture

on

Cap

ital it

ems

that

was

due

to a

ser

vice

pro

vide

r whi

ch fa

iled

to d

eliv

er o

n tim

e at

Mpo

fu T

rain

ing

Col

lege

.

STR

UC

TUR

ED A

GR

ICU

LTU

RA

L ED

UC

ATIO

N

AN

D T

RA

ININ

G

2016

/201

720

15/2

016

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

itureR’000

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

iture

R’00

07.

1H

ighe

r Edu

catio

n an

d Tr

aini

ng.

47 4

6447

464

-43

875

43 8

75-

7.2

Agric

ultu

ral S

kills

Dev

elop

men

t.95

505

94 0

751

430

94 3

1588

868

5 44

7TO

TAL

142

969

141

539

1 43

013

8 19

013

2 74

35

447



PROGRAMME 8: RURAL DEVELOPMENT COORDINATION

Objective: To develop, plan, and monitor rural development coordination of the various departments and organize social facilitation in relation to community priorities and organizational structures.

Listthestrategicobjectives

• SO 1.1 Rural development initiatives facilitated and coordinated.

Listofsub-programs

• Sub-programme 8.1: Development planning and monitoring.

• Sub-programme 8.2: Social Facilitation.

Sub-Programme8.1:DevelopmentPlanningandMonitoring

Objective: To initiate, plan, and monitor development in specific rural areas across the three spheres of government in order to address needs that have been identified.

SG 1: SO 1.1 Rural development initiatives facilitated and coordinated.

PerformanceIndicatorActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of oversight reports consolidated on rural development projects supported through ECRDA.

- - - 4 4 - No deviation

1.2 Number of rural development district plans developed


1.3 Number of integrated data management system developed.


1.4 Number of innovations and appropriate technologies implemented on basic infrastructure (including rural roads).


1.5 Number of rural ICT projects facilitated.


1.6 Number of non-farm rural skills programmes facilitated.


1.7 Number of non-farm rural economy (energy, tourism, clothing and textile, small scale mining, construction and home industry) projects supported.


1.8 Number of land reform programmes supported.





None.


None.


None.



Sub-Programme8.2SocialFacilitation

Objective: To engage communities on priorities and to institutionalize and support community organizational structures.

SG 1: SO 1.1 Rural development initiatives facilitated and coordinated.


ActualA

chievement

2013/14

ActualA

chievement

2014/15

ActualA

chievement

2015/16

AnnualTarget2016/17

ActualA

chievement

2016/17

Deviationfrom


Commentondeviations

1.1 Number of Outcome 7 reports consolidated and submitted.


1.2 Number of IGR sessions conducted.


1.3 Number of Agri-parks initiatives facilitated.



None.


None.


None.



LI

NK

ING

PER

FOR

MA

NC

E W

ITH

BU

DG

ETS

The

prog

ram

me

has

achi

eved

100

% o

f its

pla

nned

targ

ets

and

spen

t 99.

96%

of i

ts b

udge

t reg

ardi

ng th

e im

plem

enta

tion

of th

e se

t tar

gets

for

2016

/17.

Th

e av

aila

ble

unde

rspe

nt R

75 0

00 w

as a

col

lect

ion

of fu

nds

from

CoE

and

Goo

ds a

nd S

ervi

ces

whi

ch is

imm

ater

ail c

ompa

red

to e

xpen

ditu

re o

f the

tota

l bu

dget

.

RU

RA

L D

EVEL

OPM

ENT

CO

OR

DIN

ATIO

N

2016

/201

720

15/2

016

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

iture

R’00

0

Final

Approp

riation

R’00

0

Actual

Expend

itureR’000

(Over)/Un

der

Expend

iture

R’00

0

8.1

Dev

elop

men

t pla

nnin

g an

d m

onito

ring

156

204

156

203

114

0 00

114

0 00

1-

8.2

Soci

al F

acilit

atio

n25

992

25 9

1874

22 3

4022

164

176

TOTA

L18

2 19

618

2 12

175

162

341

162

165

176



PR

OG

RA

MM

E EX

PEN

DIT

UR

E

Prog

rammeDescriptio

n

2016

/17

2015

/201

6

R’0

00R

’000

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Adm

inis

tratio

n45

5 59

643

5 42

720

169

427

409

434

411

(7 0

02)

Sust

aina

ble

Res

ourc

e M

anag

emen

t11

5 21

111

4 51

669

512

4 92

212

4 66

325

9

Farm

er S

uppo

rt an

d D

evel

opm

ent

811

276

805

544

5 73

266

0 69

064

7 96

412

726

Vete

rinar

y Se

rvic

es

296

673

295

262

1 41

127

1 44

627

1 34

799

Tech

nolo

gy R

esea

rch

and

Dev

elop

men

t17

6 63

217

6 28

135

114

2 03

114

2 31

6(2

85)

Agric

ultu

ral E

cono

mic

s34

569

33 8

3973

055

653

52 4

563

197

Stru

ctur

ed A

gric

ultu

ral T

rain

ing

142

969

141

539

1 43

013

8 19

013

2 74

35

447

Rur

al D

evel

opm

ent C

oord

inat

ion

182

196

182

121

7516

2 34

116

2 16

517

6

TOTA

LS2

215

122

2 18

4 52

930

593

1 98

2 68

21

968

065

14 6

17



5. TRANSFER PAYMENTS

5.1 TransferpaymentstoPublicEntities

NameofPublicEntity

Servicesrenderedbythepublicentity

AmounttransferredtothepublicentityR’000

Amountspentbythepublic

entityR’000

Achievementsofthepublicentity

ECRDA Agro-processing in Red Hubs.

R188 767 R188 767 Operationalising of two existing Red Hubs in Mqanduli and Ncora was completed.

Infrastructure development in Hubs.

Commissioning and handing over of two new Red Hubs in Emalahleni and Mbizana took place during the period under review.

Forestry and Timber development.

ECRDA continues to support and facilitate development in the forestry projects in Mkambathi, Sinawo, Izinini, Gqukungqa, Sixhotyeni and Lusikisiki. 1287.7 ha of new forestry was planted during the 2016/17 financial year.

Marketing development in Red Hubs.

The ECRDA procured promotional material for indoor and outdoor utilisation at retail stores to promote the RED Hub milling products.

The Trading Centre at Mqanduli RED Hub is operating under Umtiza Farmers Corporation. ECRDA is engaging with additional sales and merchandising agents other than I-spaza to improve sales of processed milling products.

A drive to establish partnerships with lead companies in the industry in order to promote trading and marketing in the RED Hubs are underway.

Further engagements with government departments like health, education and correctional services to procure the RED Hub super maize meal and samp are also on the cards.



5.2 Transferpaymentstoallorganisationsotherthanpublicentities

The table below reflects the transfer payments made to public entities for the period 1 April 2016 to 31 March 2017.

Name of transferee

Typeoforganisation

Purposeforwhichthefundswere

used

Compliancewith s 38

(1)(j)ofthePFMA

Amounttransferred

(R’000)

Amountspentbythe

entity(R’000)

Reasonsforthefundsunspentbytheentity

Fort Cox College

Agricultural College

Salaries Yes R47,464 million

R47,464 million

N/A

The table below reflects the transfer payments which were budgeted for in the period 1 April 2016 to 31 March 2017, but no transfer payments were made.

NameoftransfereePurposeforwhichthefundswereto

beused

Amountbudgetedfor

(R’000)

Amounttransferred

(R’000)

Reasonswhyfundswerenottransferred

Not applicable -

6. CONDITIONAL GRANTS

6.1 Conditionalgrantsandearmarkedfundspaid

None.

6.2 Conditionalgrantsandearmarkedfundsreceived

The table below details the conditional grants and ear marked funds received for the period 1 April 2016 to 31 March 2017.

ComprehensiveAgriculturalSupportGrant:

Departmentwhotransferredthegrant

DepartmentofAgriculture,ForestryandFisheries

Purposeofthegrant To provide effective agricultural support services, promote and facilitate agricultural •development by targeting beneficiaries of land restitution and redistribution, and other previously disadvantaged producers who have acquired land through private means, and are engaged in value-adding enterprises domestically, or involved in export.To address damage to infrastructure caused by floods.•

Expectedoutputsofthegrant

1 529 Subsistence farmers supported.•2 055 Smallholder farmers supported.•147 Black commercial farmers supported.•20% of Youth, 40% of women supported through CASP.•Irrigation systems, stock water structures, stock handling facilities, dipping tanks, •storage facility, shearing sheds, fencing, 1 VET Clinic provided and/or repaired.2 240 Beneficiaries of CASP trained on farming methods or opportunities along the •value chain.2 200 Beneficiaries of CASP accessing markets.•875 Jobs created.•37 Extension personnel recruited and maintained in the system.•Extension Officers upgrading qualifications at various institutions.•Transfer of funds to NAMC for Agriculture Information Management System (AIMS) •to be implemented.





Actualoutputsachieved

Farmer supported per category (subsistence, smallholder and black commercial •farmers)- I

BeneficiariesSupportedMale Female Total

Subsistence 776 424 1 200Smallholder 808 602 1 410Black Commercial 1 - 1Total 1 585 1 026 2 611

Break down of Beneficiaries: Women, youth and Disabled.

SupportedBeneficiariessupportedin

2016/17

Adult Youth

Total

Disabled

Male Female Male Female Male Female Total

2 611 1 421 840 219 125 2 605 5 1 2 611

• 52 On and off - farm infrastructure provided and repaired through the following activities:

10 Fencing projects (261 KM); 6 Irrigation systems, 26 stock water structures, 5 stock handling facilities, 3 new dipping tanks, 10 multi-purpose and shearing sheds, 1 vet clinic refurbished and 1 Orchard Establishment (Continuing).

• Land under agricultural production (crop and livestock)• Yields per unit area• Beneficiaries of CASP trained on farming methods or opportunities along the value

chain• Beneficiaries of CASP accessing markets.

Infrastructure jobs created from infrastructure projects: •

TotalNumberofNumberofEmployees

TotalTemporary/Seasonal Total

Youth employed Total

Disabledemployed Total

Male Female Male Female Male Female Male Female

162 107 269 162 107 269 72 10 82 - - -58 21 79 58 21 79 36 15 51 - - -51 11 62 51 11 62 28 4 32 - - -26 1 27 26 1 27 15 1 16 - - -48 1 49 48 1 49 27 1 28 - - -

345 141 486 345 141 486 178 31 181 - - -

Other Jobs created•Extension personnel recruited and maintained in the system•Extension officers upgrading qualifications at various institutions. •

Agriculture Information Management System (AIMS) implemented in the Province.

AmountperamendedDORA R271 000 million.

Amounttransferred R276 803 million.

ReasonsifamountasperDORAnottransferred

N/A

Amountspentbythedepartment R273 941 million.





Reasonsforthefundsunspent

Delayed submission of invoices, resulted in the payment not being authorisation before the system closed for authorisation. This resulted in an accrual that is to be paid in April.

Reasonsfordeviationonperformance

The deviation is due to the projects that were added in the second budget appropriation and the projects that could not take off during the year. The projects that could not take off were replaced by different types of projects and different locations hence there are changes in the number of farmers supported.

Measurestakentoimproveperformance

To improve planning and make sure that all the licencing requirement and community dynamics are attended to before the project is implemented.

Monitoringmechanismbythereceivingdepartment

A total of 61 projects were implemented by the province and 50% were monitored •bi-annually by the DAFF.Monthly and quarterly review meetings are held in the province were held in the •province to follow up on progress and complianceStrategic site visits were conducted for the purpose of quality and value for money •assessments. Follow up meetings with the leadership of the province on non-compliances or •poor implementation of projects were scheduled and corrective action on identified challenges was taken by the province.Quarter Review meetings were scheduled to monitor performance of the grant. •Monthly financial reports which are project based were received by DAFF on the 15th of every month. Two Mintech meetings were held between the DG and DAFF leadership with Heads •of Provincial Departments of Agriculture were oversight is provided on conditional grants implementation.

ExpandedPublicWorksProgrammegrant

The table below details the conditional grants and earmarked funds received during the period 1 April 2016 to 31 March 2017.


DepartmentroadsandPublicWorks

Purposeofthegrant

To incentivize provincial departments to expand work creation efforts through the use of labor intensive delivery methods in the following identified focus areas, in compliance with the EPWP guidelines:

road maintenance and the maintenance of buildings,•low traffic volume roads and rural roads,•other economic and social infrastructure,•tourism and cultural industries,•sustainable land based livelihoods, and •waste management.•


Improved quality of poor people and increased social stability through engaging the •previously unemployed in paid and productive activities. Reduced levels of poverty.•Contribute towards increased levels of employment.•Improved opportunities for sustainable work through experience and learning •gained.

Actualoutputsachieved 819 jobs created.




DepartmentroadsandPublicWorks

AmountperamendedDORA(R’000)

R 2 million.

Amountreceived(R’000) R 2 million.

ReasonsifamountasperDORAwasnotreceived

N/A

AmountspentbytheDepartment(R’000)

R 2 million.


None.

Reasonsfordeviationsonperformance

None.


Improved levels of reporting through closer monitoring of operations and capacitation of community project leaders and supervisors.


Monthly site visits to projects and quarterly reporting.

ILIMA / LETSEMA CONDITIONAL GRANT:



Purposeofthegrant

To assist vulnerable South African farming communities achieve an increase in agricultural production and increased income, invest in infrastructure that unlocks agricultural production and supply government markets with agricultural products thus releasing them from poverty.


Increased production efficiency.•Increased agricultural production at both household and national level •Improved farm income.•Maximized job opportunities and reduced poverty.•Increased number of households assisted to cope with the escalating food prices.•

Actualoutputs 10 112 households.•50 713 hectares.•


R 64 335 million.

Amountreceived(R’000) R 64 335 million.


None.






R 63 580 million.


One of the contractors passed away after completion of work, and it was not possible to make alternative payment arrangements.


In Joe Gqabi districts several farmers withdrew from the scheme after their attempts failed to obtain loan funding for their portion of production inputs required.


Tasks teams from head office led by chief directors of district coordination, farmers support & development and research units have been established to provide support to all the districts for purposes of improving service delivery.


A total of 619 projects were implemented by the province and 20% % were monitored bi-annually by the DAFF.Follow up meetings with the leadership of the province on non-compliances or poor implementation of projects were scheduled and corrective action on identified challenges was taken by the province.Quarterly Review meetings were scheduled to monitor performance of the grant.Monthly financial reports which are project based were received by DAFF on the 15th of every month. Two MINTECH meetings were held between the DG and DAFF leadership with Heads of Provincial Departments of Agriculture were oversight is provided on conditional grants implementation.

CONDITIONAL GRANT LAND CARE:


DepartmentofAgricultureForestryandFisheries

Purposeofthegrant

To promote sustainable use and management of natural resources by engaging in community based 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.


Hectares of land (arable and rangeland) protected and rehabilitated – 3 578.•Number of capacity building initiatives conducted for Land Carers – 17.•Number of awareness campaigns conducted and attended by Land Carers – 17.•Number of green jobs created expressed as Full Time Equivalents (FTEs) – 452 •jobs.

Actualoutputsachieved

Hectares of land (arable and rangeland) protected and rehabilitated – 1 768•Number of capacity building initiatives conducted for Land Carers - -22•Number of awareness campaigns conducted and attended by Land Carers - 18•Number of green jobs created expressed as Full Time Equivalents (FTEs) – 267 •FTE’s (519 jobs)


R 10 632 million.

Amountreceived(R’000) R 10 632 million.


None.




DepartmentofAgricultureForestryandFisheries


R 10 621million.


R 11 000 (0.1% underspent) a non-material deviation.


Over-performance is ascribed to the community participation in the programme increasing the input into the initiatives beyond what was projected.


Awareness campaigns and capacitation of beneficiaries contribute to improved performance through the year.


All projects are monitored against the respective business plan targets on a continuous basis through regular site visits and supervision, reported on a monthly basis.

CONDITIONAL GRANT DISASTER RISK MANAGEMENT

Departmentwhotransferredthegrant N/A

Purposeofthegrant N/A

Expectedoutputsofthegrant N/A

Actualoutputsachieved N/A

AmountperamendedDORA(R’000) N/A

Amountreceived(R’000) N/A

ReasonsifamountasperDORAwasnotreceived N/A

AmountspentbytheDepartment(R’000) N/A

Reasonsforthefundsunspentbytheentity N/A

Reasonsfordeviationsonperformance N/A

Monitoringmechanismbythereceivingdepartment N/A

7. DONOR FUNDS

N/A.



8 CAPITAL INVESTMENT

8.1 Capitalinvestments,maintenanceandassetmanagementplan

InfrastructureProjects

2016/17 2015/2016FinalAp-propriation

R’000

ActualEx-penditure

R’000

(Over)/Un-derExpend-iture R’000

FinalAp-propriation

R’000

ActualEx-penditure

R’000

(Over)/Un-derExpend-iture R’000

Newandreplacementassets

124 799 123 268 1 531 61 982 58 070 3 912

Existinginfrastructureassets

43 289 42 767 522 61 992 59 750 2 241

Upgrades and - additions 678 678 - - 42 (42)

Rehabilitation, - renovations and refurbishments

40 055 39 694 361 61 992 59 520 2 471

Maintenance - and repairs 2 547 2 386 161 - 188 (188)

Infrastructuretransfer 12 000 12 000 - - - -

Current- 12 000 12 000 - 11 000 7 000 4 000

Capital- - - - - - -

Total 180 088 178 035 2 053 134 974 124 820 13 114

In 2016/17 a total of 212 on-farm livestock infrastructure projects have been completed including fencing, stock-water systems, dip tanks, stock handling facilities and sheds. This includes the completion of 67 dipping tanks (of which 7 were completed using local labour), 61 dams de-silted, 10 multi-storage facilities, 340 kilometres fenced of which 49 km’s was erected using local labour wherein the department bought fencing materials. This resulted in 2 911 producers benefiting from the support. All the Land Beneficiary farmers accessed local and formal markets. Ten (10) multi-year projects are continuing to the next financial year, namely: Ripplemead Citrus Pack-house; Wittekleibosch Milking Parlour; Dohne Hydroponic structure (greenhouse); Mthatha Dam Hatchery; Construction of new and Refurbishment of Boreholes for livestock water; Revitalisation of Agricultural Colleges and Retention fees for KSD Wool-clip and fencing.

In order to expand irrigated infrastructure investments in the form of provision for consultancy fees for the construction of macademia pipeline; netting wire, engine pumps and sprinklers for KSD vegetable cooperative, fencing 372 hectors and Kuyasa Bhungu Youth Projects; Port St Johns Vegetables and repairs in Qamata and Ncorha. These projects are already accessing local with Macademia and Ncorha accessing formal Markets.



INFRASTRUCTURE PROJECTS THAT ARE CURRENTLY IN PROGRESS AND WHEN THEY ARE EXPECTED TO BE COMPLETED.

No. Project District InfrastructureDescription ExpectedCompletionTime

1 Aquaculture development OR Tambo Refurbishment of a Hatchery in Mthatha Dam. Quarter 4 of 2017/18

2 Fort Cox Amathole Roofi ng Repairs, Water and Sanitation provision. Quarter 4 of 2017/18

3 TARDI OR Tambo

Palisade fencing; Renovation of student toilets, conversion of abattoir to postmortem facility; Installation of three standby generators; Renovation of a dairy parlor.

Quarter 4 of 2017/18

4 Fort cox Amathole Roofi ng Repairs, Water and Sanitation provision. Quarter 4 of 2017/18

5 Dhone:Hydroponic structure Amathole Construction of a Green

House. Quarter 4 of 2017/18

6 Drought relief: stock water EC: Whole Province

Stock Water: Construction and Refurbishment of Boreholes. Quarter 4 of 2017/18

7 Elundini fencing Joe Gqabi Fencing. Quarter 4 of 2017/18

8 Fencing of prod areas ingquza hi OR Tambo Fencing. Quarter 4 of 2017/18

9 Fencing of prod areas mqanduli OR Tambo Fencing. Quarter 4 of 2017/18

Wittekleibosch Sarah Baartman Construction of a Milking Parlor.

Ripplemead Amathole Construction of a Citrus Pack house.

10 KSD woolclip OR Tambo Construction of Three Sheering Shed. Quarter 4 of 2017/18

Planstoclosedownordowngradeanycurrentfacilities

None.

Progressmadeonthemaintenanceofinfrastructure

None.



PART C: GOVERNANCE



1. INTRODUCTION

Commitment by the department to maintain the highest standards of governance is fundamental to the management of public finances and resources. Users want assurance that the department has good government structures in place to effectively, efficiently and economically utilise the state resources which are funded by the taxpayer.

2. RISK MANAGEMENT

RiskManagementPolicyandStrategy

The department continues to review the Risk Management Policy, which reflects the Accounting Officer’s stance on ERM related matters. The ERM Strategy not only serves to complement the Risk Management Policy, but is also an important governance document supporting management and other employees in their operational activities, as it incorporates the Risk Management Methodology, responsibilities of management and other employees, among other things.

RiskAssessmentandDevelopmentofRiskRegisters

The department conducted Risk Assessments for the all programmes to identify the key risks. These risks were prioritised and consolidated into a Risk Register, which was approved. The department developed the following registers: Strategic Risk Register, ICT Risk Register, OHS Risk Register, Fraud Risk Register and Operational Risk Register. The approved Risk Register was forwarded to Internal Audit to develop their risk based Internal Audit Plan for 2016/17.

TheRiskManagementCommittee(RMC)

The cross-functional nature of the RMC is central to its effectiveness. Chaired by an independent specialist, the RMC reflects the various matters that relate to risk and deliberates on the department’s operational activities, including potential improvements to the ERM Strategy and mitigating plans. The fact that the department has reached a level of maturity where Risk Treatment Plan reports are deliberated on, is evident based on the value added by this committee.

For the year under review the Committee held four meetings and approved the following Risk Management Strategic documents: Enterprise Risk Management Framework and Policy, Enterprise Risk Management Strategy, Enterprise Risk Management Implementation Plan, Strategic, Operational, Occupational Health and Safety, Fraud Prevention and Information Communication and Technology (ICT) Risk Registers. The documents were taken through a process of review within various functional components of the Department.

AcollaborativeApproachtoRiskManagement

A collaborative approached has been established between Risk Management and Internal Audit to share information and reports to enable us to identify new risks. Internal Audit has conducted an audit on Risk Management to identify weaknesses which may exist in its operations. Furthermore, risk management reports are presented at the Audit Committee meeting on a quarterly basis regarding the implementation of risk activities in the department.



ProgressintermsofERM

All the 8 programmes of the department have been risk-profiled and risk management is steadily improving. Deliberations on the prioritized risks for each programme as well as the department’s Strategic Risk Register, present a good opportunity for implementation plans to be assessed for both adequacy and effectiveness. The appointment of Risk Owners and Risk Champions and their involvement in all ERM related activities also contributes positively towards strengthening the mitigating plans and enhancing organizational planning and performance. Furthermore, Risk Management is a standing item on the agenda of Top Management to enhance monitoring.

The Risk Management unit, in collaboration with management and the Risk Management Committee, have quarterly interactions to review the risk management reports. The objective is to ensure the risk profile of each programme remains current. The collaborative approach also presents an opportunity to exchange ideas on emerging risks, allowing DRDAR to promptly identify them and formulate mitigating plans in response to them.

3. FRAUD AND CORRUPTION

The department implemented the Fraud Implementation Plan by conducting awareness campaigns in the Districts and the head office. The department established an Ethics Committee which facilitates ethics programme across the department. The disclosure of interests is implemented by all employees of the department.

The Anti-corruption hotline offers a 24/7 free call facility by encouraging the employees or third parties to anonymously blow the whistle on irregularities within the department. Internal reporting to the Anti-Corruption Practitioners is also encouraged.

Most cases are reported by internal staff, however, some cases did come through the Public Service Commission and the Office of the Premier.

All reported cases are investigated and reports are approved for implementation of recommendations. Disciplinary action is taken against the implicated officials and if there’s any suspected criminal act then the matter is also referred to the South African Police Service for criminal investigation.

TYPES OF ANTI CORRUPTION CASES INVESTIGATED

Type Number

Corruption 3

Fraud 2

Financial Misconduct 3

Maladministration 1

Total 9



Natureofoffencesasperthetotalnumberofcasesreported.Nature of Cases NumberFraud & Corruption 3Forged Signature -Tender Irregularities -Nepotism -Payroll Fraud -Procurement Fraud -Travel Claims 1Financial Misconduct 3Maladministration 1TOTAL 8

Statusofcases:Type Status Number

SAPS Anti-corruption unit Inquiry stage 1Departmental Anti-corruption unit Reporting stage 1Closed files 1Pending cases still need to be finalised and closed 7Recommended cases for finalisation to the Accounting Officer 6Total 16

Pendingcasesstillnotfinalised:Type Year Number

Fraud and Corruption investigated by the Department’s Crime Prevention Unit and Special Investigation Unit

2007 -2008 12009 -2010 -2011 -2012 -2013 -2014 -2015 82016 12017 7



CHALLENGES FACED REGARDING THE CASES REPORTED (HOTLINE / DEPARTMENT)

Most matters are historical and as a result there is no documentation to substantiate the allegations and inadequate information supplied by reporting sources.

4. MINIMISING CONFLICT OF INTEREST

The unit conducts awareness sessions on the Code of Ethics for Public Service. Disclosures of interests during procurement period is verified by SCM and not by Anti-corruption unit.

5. CODE OF CONDUCT

The code of conduct seeks to enhance the professional behaviour of employees in the public sector and to regulate the interaction between the employees and the public that they serve. It also enhances the relationship amongst employees in the performance of their duties by promoting professionalism when dealing with the public, executive and fellow employees. The department is at the forefront of implementing the code of conduct.

An employee is given a chance to explain the reasons for the breach. After the consideration of the explanation a decision may be taken to whether proceed with the corrective measures or give a written warning to the employee.

6. HEALTH AND SAFETY AND ENVIRONMENTAL ISSUES

The Department has a functioning Occupational Health and Safety Committee that was trained to better assist in monitoring compliance of the Department in terms of the Occupational Health and Safety Act (OHSA). The Department has also managed to conduct Health and Safety audits to 38 sites and those include; Veterinary Labs, Clinics, Construction Sites and Office Buildings for compliance with OHSA.

7. PORTFOLIO COMMITTEE

The Department met with the Portfolio Committee on 25 and 27 October 2016 to discuss the Annual Report and Financial Oversight Reports. The Portfolio Committee met on 28 October 2016 to finalise and adopt the report. The report was finalised and adopted on 28 October 2016.

RESOLUTIONS / RECOMMENDATIONS OF PORTFOLIO COMMITTED ON DRDAR HALF YEAR FINANCIAL AND PERFORMANCE OVERSIGHT REPORT 2015

Programme1:AdministrationFINDINGS RECOMMENDATIONS RESPONSES FROM DRDAR(a) The program has overspent its budget by 5% for the period under review.

(a)The Department must closely monitor its expenditure patterns to avoid contravening the provisions of Section 39 (1) (a) of the PFMA.

The recommendation is acknowledged. This situation has been corrected during the second appropriation wherein sufficient funds were provided for leave gratuities and lease commitments.



FINDINGS RECOMMENDATIONS RESPONSES FROM DRDAR

(b)The department still has a serious challenge of high vacancy rate – especially at senior management level.

(b)The Department must, within 30 days after the adoption of the report in the House, submit to the Committee a detailed plan on how it intends to fill all the critical vacant posts.

Critical posts are prioritized and filled according to the available resources.

The progress report on the filling of posts according to the Annual Recruitment Plan was submitted.

(c)The delay in the signing of Service Level Agreements for RT 12 contracts resulted in under-expenditure in Goods and Services.

(c)The Department must ensure that the signing of Service Level Agreements is prioritised, as delays in this regard could have a negative impact on service delivery.

The RT Contract is a transversal contract instituted by the National Treasury. All tender processes and the signing of Service Level Agreements are done by the National Treasury. The department only participates in this contract after all has been done.

(d)The poor management of leave gratuities has resulted in over expenditure of R2.5 million.

(d)The Department must, within 30 days after the adoption of this report, submit to the Committee its strategy to address this problem.

The over expenditure is as a result of high number of employees that exit the service through natural attrition, resignation, deaths and early retirement. The nature of the reasons for exiting the system makes it impossible to plan accurately.

The situation is being monitored on a monthly basis to ensure that there is no over expenditure at the end of the financial year.

Furthermore, additional funding has been sourced during the second appropriation to address the current shortfall.

(e)Redirecting of funds to critical projects, especially in the first quarter, is problematic as this reflects poor planning and laxity.

(e)The Department must refrain from redirecting funds from one programme to another, as all projects are critical.

The Department has noted the recommendation and from now onwards it will restrict the shifting of funds from core to non-core activities.

(f)The newly established Special Programmes Unit is not budgeted for and funds for its functioning have to be transferred from other programmes.

(f)The Special Programmes Unit’s plans and budget must be incorporated into the departmental 2016/27 Annual Performance Plan.

The Special Programs unit will receive budget for all programs and projects that will be undertaken.

Programme2:SustainableResourceManagementFINDINGS RECOMMENDATIONS RESPONSES FROM DRDAR(a)The Engineering sub-programme is projecting to underspend its budget by R541.000.00. Underspending in this sub-programme is a trend.

(a)The Department must, within 30 days after the adoption of the report in the House, submit to the Committee a plan that will address the under-expenditure and that will ensure that no under-expenditure occurs at the end of the financial year.

No under expenditure is foreseen in this programme and the projection was a result of an invoice that was received late from the supplier and paid in the subsequent quarter.

(b)The set targets in this programme are very low and are easily surpassed.

(b)The Department must refrain from setting low targets and the previous year’s performance must be used as a guide.

The performance of 2015/16 will be used as a baseline for 2016/17.




(c)The Department is still not adhering to Supply Chain Management procurement policies, and as a result incapable service providers are being appointed.

(c)The Department must adhere to Supply Chain Management procurement policies and tender procedures when appointing service providers. Consequence management should be implemented when necessary.

SCM rules with respect to functionality and capability of tenderers are followed. References of previous assignments are followed up to ensure selection of good performers.

(d)Environment impact assessments were not conducted before projects were established.

(d)The Department must adhere to the applicable requirements to avoid delays in the commencement and completion dates of projects.

In 2016/17 projects that have outstanding environmental impact assessments are only considered when the feasibility study has been completed.

Programme3:FarmerSupportDevelopmentFINDINGS RECOMMENDATIONS RESPONSES FROM DRDAR(a)Due to delays in the processing of invoices for inputs, there were delays in the delivery of inputs to farmers.

(a)The Department should adhere to invoice processing timeframes in order to ensure efficiency.

The department will adhere and will pay invoices when the deliveries of the inputs have been confirmed. The department endeavours to pay all the invoices within 30 days.

(b)Although there were no plans and set targets for hectares cultivated for food production in communal areas and land reform projects, 52 hectares were cultivated.

(b)Within 30 days after the adoption of this report in the House, a report must be submitted to the Committee on how the Department managed to cultivate 52 hectares that were not planned for, as well as the budgetary implications thereof.

The target for cropping program is communal and land reform beneficiaries. In this case areas that received early rainfall were planted earlier than planned since the drought anticipation was already in circulation.

Programme4:VeterinaryServicesFINDINGS RECOMMENDATIONS RESPONSES FROM DRDAR(a)There is no linkage between performance and budget expenditure.

(a)The Department must always ensure that there is linkage between performance and budget spent.

The department takes note of the findings and recommendation of the committee and targets achieved will be supported by financial performance in future.

(b)The Department could not meet its targeted number of animals tested for disease surveillance purposes. Out of 95 901 only 55 110 were tested.

(b)The departmental management must ensure that it always performs according to its planned targets.

The department acknowledges the finding and notes the recommendation. Currently all our laboratories are not South African National Accreditation System (SANAS) accredited and as a result all our tests are not recognised hence the underperformance. The department is upgrading the equipment in our laboratories and is recruiting the personnel for laboratories to address this. This project is projected to be completed in the third quarter of 2016/17.



Programme5:ResearchandTechnologyDevelopmentServicesFINDINGS RECOMMENDATIONS RESPONSES FROM DRDAR

(a)There were no plans to introduce improved livestock for animal genetic improvement of the herd, but 48 animals were delivered to new beneficiaries.

(a)The Department must provide the Committee with a report on how it managed to deliver these animals that were not planned and budgeted for.

The Department is implementing the Genetic Improvement Program in partnership with the Fort Hare Nguni Trust. The animals that were introduced during the quarter were the outcomes of this partnership, whereby through the “passing the gift” model communities that benefitted 5 years ago availed animals that could be distributed to other communities.

Programme6:AgriculturalEconomicsServicesFINDINGS RECOMMENDATIONS RESPONSES FROM DRDAR

(a) The set targets in this programme were exceeded

(a)The Department must refrain from setting low targets, as this reflects poor planning

The recommendation is noted and the Department will use the previous year’s targets as the baseline for setting the targets for the next financial year within the available resources.

(b) There is no clear indication as to whom benefits from the Agri-Business sub-programme

(b)A detailed report, containing the list of beneficiaries must be submitted to the Committee within 30 days after the adoption of this report.

The beneficiaries from the agri-business sub-programme include individual farmers, groups and co-ops engaging in agri-business. The list of the beneficiaries was submitted.

Programme7:StructuredAgriculturalEducationandTrainingFINDINGS RECOMMENDATIONS RESPONSES FROM DRDAR

(a) Deviations in this programme were due to delays in training programmes and in the implementation of infrastructure projects to colleges.

(a) The Department must within 30 days after the adoption of this report, provide the Committee with a plan to improve the situation.

To improve on the situation the Department has already developed both the Infrastructure Plans as well as training programs for 2016/17 to ensure that implementation commences at the onset of the financial year. The training and the infrastructure plan was submitted.

(b) The exposure of school-going learners to various fields of agriculture is only limited to the Provincial Youth Day programme.

(b) The Department should enhance partnership with the Department of Education to develop more programmes that will expose learners to agriculture-related fields/courses.

The department engages in a number of programs to expose learners to agriculture related fields. These include career exhibitions, MEC’s adopted schools as well as the capacitation of agriculture science educators.

Programme8:RuralDevelopmentCoordinationFINDINGS RECOMMENDATIONS RESPONSES FROM DRDAR

(a)Magwa and Majola Tea Estates business rescue plan is still awaiting approval from the Cabinet.

(a)The Department must ensure that there is a proper Management Plan in place before the Business Rescue Plan is put in operation.

The department through the ECRDA has put in place a Management Plan to coordinate the process of the Business Rescue Plan.

(b)The ECRDA has included the previous year’s achievements in the 2015/16 Financial Oversight Report.

(b)The ECRDA must refrain from reporting achievements of the previous financial year, as this is misleading the House.

The implementation of the RED Hubs is a multi-year project and the targets towards the finalization are structured as such.




(c)There is a serious challenge in the administration of Magwa Tea Estate, as funds are channelled through ECRDA while ownership belongs to ECDC.

(c)The Department must transfer Magwa Tea Estate to ECRDA for effective monitoring of funds.

The Department is facilitating the process of transferring the Magwa and Majola shares from the ECDC to the ECRDA.

GeneralFindingsGENERAL FINDING GENERAL RECOMMENDATION RESPONSES FROM DRDAR

1.The Committee is concerned about the number of proposed virements that the Department intends to effect with a view of curbing over/under-expenditure.

Although the Committee is aware of the fact that provisions for virements are allowed in the PFMA, the Department must minimize these as they reflect poor planning.

Recommendation by the Committee is noted. The departmental budget policy prohibits shifting and virements in the first quarter of the financial year. Shifting and virements from service delivery to non-core is also not allowed. This will further be monitored closely throughout the financial year.

2. Quality assurance in terms of documents that were sent to the Legislature was not properly done, as some of the figures were miscalculated and information was incomplete.

2.The Department must refrain from violating the Public Finance Management Act (PFMA) and Treasury Regulations with regard to the accuracy of information when reporting.

The recommendation is acknowledged. The department will strive to improve on the quality of all documents.

3. Lack of oversight and accountability of senior management in terms of the departmental entities is a matter of serious concern.

3. The Department must, within 30 days after adoption of this report in the House, submit to the Committee its plan to intensify oversight and accountability in terms of its entities.

Report provided.

4. The Department has a poor contract management and a poor policy monitoring system. As a result contracts are expiring

The department has strengthened is contract management systems and will improve monitoring of all contracts.



R

ESO

LUTI

ON

S / R

ECO

MM

END

ATIO

NS

OF

POR

TFO

LIO

CO

MM

ITTE

E O

N D

RD

AR

FIN

AN

CIA

L O

VER

SIG

HT

REP

OR

T

8.

SCO

PA R

ESO

LUTI

ON

S

ResolutionNo.

Subject(Finding

)Details

(Recom

mendatio

n)Respo

nsebyth

edepartment

Resolved

(Yes

/No)

IrregularExpenditure

– Aud

itReportF

inding

paragraph8,18,19,

21

Irreg

ular

ex

pend

iture

of

R

83

milli

on

that

ha

s ac

cum

ulat

ed

over

a

num

ber

of

year

s an

d ha

d no

t be

en r

ecov

ered

, w

ritte

n of

f or

cond

oned

is

disc

lose

d in

not

e 22

to th

e fin

anci

al s

tate

men

ts.

Irreg

ular

ex

pend

iture

of

R

344

000

incu

rred

durin

g th

e cu

rrent

yea

r is

incl

uded

in

the

amou

nt d

iscl

osed

.

1.1

Cou

ld t

he A

ccou

ntin

g O

ffice

r ex

plai

n w

hy

irreg

ular

ex

pend

iture

ac

cum

ulat

ed

to

the

tune

of

R

83

milli

on

has

thus

far

not b

een

addr

esse

d?

TheirregularexpenditureofR83millioniscon

stitu

tedby:

An ir

regu

lar s

alar

y pa

ymen

t of R

53,0

81 m

illion

to H

RO

PT

•Af

ter d

iscu

ssio

ns w

ith th

e Au

dito

r Gen

eral

it w

as a

gree

d th

at

o th

e re

cove

ry o

f the

con

tinge

nt a

sset

is re

mot

e an

d un

likel

y to

be

reco

vere

d an

d ha

s su

bseq

uent

ly b

een

writ

ten

off i

n 20

16.

An a

mou

nt o

f R15

,9 M

illion

rela

tes

to tr

ansa

ctio

ns th

at o

ccur

red

•be

twee

n 20

05 a

nd 2

012.

Pr

ovin

cial

Tre

asur

y ha

s ad

vise

d th

e de

partm

ent t

o w

rite

off t

hese

o am

ount

s an

d ha

s su

bseq

uent

ly b

een

writ

ten

off.

R14

,132

Milli

on h

as b

een

writ

ten

off

o An

am

ount

of R

14.2

Milli

on re

late

s to

con

trave

ntio

n of

pro

cure

men

t •

proc

esse

s.

Out

of R

12.1

Milli

on.

o R5.

1 m

illion

has

bee

n re

com

men

ded

by th

e Irr

egul

ar E

xpen

ditu

re

C

omm

ittee

for c

ondo

nem

ent

R2.

1 M

illion

is in

the

proc

ess

to b

e co

nsid

ered

by

the

Irreg

ular

Expe

nditu

re C

omm

ittee

by

no la

ter t

han

Nov

embe

r 201

6.R

7 M

illion

was

sub

ject

ed to

inve

stig

atio

ns w

hich

reco

mm

ende

d

disc

iplin

ary

actio

ns to

be

take

n ag

ains

t affe

cted

offi

cial

s. D

isci

plin

ary

hear

ings

wer

e co

mpl

eted

in s

ome

whi

le in

oth

ers

the

proc

ess

is s

till c

ontin

uing

Yes

1.2

Has

the

Dep

artm

ent

deve

lope

d an

y im

plem

enta

tion

plan

to

clea

r th

e ou

tsta

ndin

g ac

cum

ulat

ed ir

regu

lar

expe

nditu

re?

If so

w

hat

are

the

time

fram

es?

The

depa

rtmen

t dev

elop

ed th

e fo

llow

ing

plan

/sch

edul

e to

war

ds c

lear

ing

•an

y ou

tsta

ndin

g irr

egul

ar e

xpen

ditu

re:

R53

,081

Milli

on h

as b

een

writ

ten

off

o R

14.1

32 M

illion

has

bee

n w

ritte

n of

f o R

5.1

Milli

on h

as b

een

reco

mm

ende

d by

the

Irreg

ular

Exp

endi

ture

o C

omm

ittee

for c

ondo

ned

R2.

1 M

illion

pro

ject

ed to

be

final

ised

by

end

of N

ovem

ber 2

016

o R

7 M

illion

was

sub

ject

ed to

inve

stig

atio

ns w

hich

reco

mm

ende

d o di

scip

linar

y ac

tions

to b

e ta

ken

agai

nst a

ffect

ed o

ffici

als.

Yes



ResolutionNo.

Subject(Finding

)Details

(Recom

mendatio

n)Respo

nsebyth

edepartment

Resolved

(Yes

/No)

1.3

Plea

se

expl

ain

why

irr

egul

ar, f

ruitl

ess

and

was

tefu

l ex

pend

iture

w

as n

ot p

reve

nted

as

requ

ired

by

sect

ion

38(1

) (c

) (

ii) o

f th

e PF

MA?

Con

trols

wer

e no

t ful

ly e

ffect

ive

to p

reve

nt ir

regu

lar,

fruitl

ess

and

•w

aste

ful e

xpen

ditu

re.

Correctiveactio

ns:

The

depa

rtmen

t has

impl

emen

ted

the

follo

win

g co

rrect

ive

mea

sure

s D

RD

AR im

plem

ente

d th

e pr

ocur

emen

t sta

ndar

d op

erat

ion

proc

edur

es

•th

at w

ere

deve

lope

d. P

re-a

udit

unit

was

stre

ngth

ened

by

appo

intin

g ap

prop

riate

ly q

ualifi

ed

•of

ficia

ls. O

n th

e jo

b tra

inin

g is

bei

ng c

ondu

cted

on

a co

ntin

uous

bas

is.

Con

duct

ed a

war

enes

s ca

mpa

igns

on

irreg

ular

exp

endi

ture

to

all s

taff

• Con

sequ

ence

man

agem

ent w

hich

was

impl

emen

ted,

con

tribu

ted

to th

e re

duct

ion

of ir

regu

lar e

xpen

ditu

re.

Yes

1.4

Did

the

Dep

artm

ent

cond

uct

a fu

rther

in

vest

igat

ion

to

dete

rmin

e fu

ll ex

tent

th

e irr

egul

ar,

fruitl

ess

and

was

tefu

l ex

pend

iture

in

curre

d du

ring

the

year

und

er

revi

ew?

If no

t w

hy?

If ye

s w

hat

was

the

ex

tent

?

Yes

– th

orou

gh in

vest

igat

ion

is c

ondu

cted

in e

ach

case

to d

eter

min

e •

the

valid

ity a

nd e

xten

t of i

rregu

lar (

R34

3 65

1.59

), fru

itles

s an

d w

aste

ful

expe

nditu

re (R

605

445.

21).

Irreg

ular

exp

endi

ture

–•

Tran

sact

ion

wor

th R

267

000

has

been

con

done

d.o Tr

ansa

ctio

n w

orth

R77

000

has

bee

n re

ferre

d fo

r dis

cipl

inar

y ac

tion.

o Frui

tless

and

was

tefu

l exp

endi

ture

:•

Tran

sact

ions

wor

th R

559

000

has

been

writ

ten

off

o Tr

affic

fine

s w

orth

R1

496

have

bee

n re

cove

red

from

Offi

cial

s o

Yes

1.5

Cou

ld t

he A

ccou

ntin

g O

ffice

r con

firm

that

the

Exec

utiv

e Au

thor

ity

was

in

form

ed

of

thes

e fin

ding

s, a

s he

/sh

e is

the

one

who

is

acc

ount

able

to

the

Legi

slat

ure

for

the

impl

emen

tatio

n of

la

ws?

Yes,

the

repo

rt w

as p

rese

nted

to th

e Ex

ecut

ive

Auth

ority

by

both

the

Acco

untin

g of

ficer

and

Aud

itor G

ener

al.

Yes



ResolutionNo.

Subject(Finding

)Details

(Recom

mendatio

n)Respo

nsebyth

edepartment

Resolved

(Yes

/No)

1.6

Plea

se

furn

ish

this

C

omm

ittee

w

ith

nam

es o

f the

offi

cial

s re

spon

sibl

e fo

r th

ese

findi

ngs

and

the

role

pl

ayed

by

th

eir

prog

ram

man

ager

s.

The

list o

f offi

cial

s af

fect

ed is

ava

ilabl

e.

Prog

ram

Man

ager

s de

tect

ed a

nd e

ngag

ed th

e R

espo

nsib

ility

Man

ager

s to

ens

ure

that

app

ropr

iate

ste

ps w

ere

take

n to

add

ress

the

repo

rted

irreg

ular

, fru

itles

s an

d w

aste

ful e

xpen

ditu

re in

thei

r uni

ts.

This

resu

lted

in a

sig

nific

ant r

educ

tion

in ir

regu

lar,

fruitl

ess

and

was

tefu

l ex

pend

iture

com

pare

d to

the

prev

ious

fina

ncia

l yea

rs.

Yes

1.7

Can

the

Com

mitt

ee

be

prov

ided

w

ith

a co

mpr

ehen

sive

pr

oof

of

disc

iplin

ary

step

s ta

ken

agai

nst

all

offic

ials

re

spon

sibl

e fo

r the

se a

udit fi

ndin

gs

as re

quire

d by

sec

tion

38

(1)

(h

) (ii

i) of

th

e PF

MA

to

prov

e th

at

cons

eque

nce

man

agem

ent

exis

t in

th

is d

epar

tmen

t.

Actio

n pl

an is

ava

ilabl

e Ye

s

RO

OT

CA

USE

IrregularExpenditure

The

bulk

of t

he a

mou

nt re

late

s to

HR

OPT

(Irre

gula

r sal

ary

paym

ents

)•

The

orde

r bei

ng p

rinte

d af

ter t

he in

voic

e.

•O

ne v

aria

tion

orde

r bei

ng a

ppro

ved

by a

n of

ficia

l with

out a

ppro

pria

te

•de

lega

tion.

Neg

ligen

ce in

som

e ca

ses.

• Fruitlessand

wastefulexpenditure

Inte

rest

incu

rred.

•N

o sh

ow fo

r acc

omm

odat

ion.

•Tr

affic

fine

s.•

Yes



ResolutionNo.

Subject(Finding

)Details

(Recom

mendatio

n)Respo

nsebyth

edepartment

Resolved

(Yes

/No)

CO

RR

ECTI

VE A

CTI

ON

SIrr

egul

ar E

xpen

ditu

re:

The

depa

rtmen

t has

impl

emen

ted

the

follo

win

g co

rrect

ive

mea

sure

sD

RD

AR e

nhan

ced

the

impl

emen

tatio

n of

the

proc

urem

ent s

tand

ard

•op

erat

ion

proc

edur

es th

at w

ere

deve

lope

d.Pr

e-au

dit u

nit w

as s

treng

then

ed b

y ap

poin

ting

appr

opria

tely

qua

lified

•

offic

ials

. On

the

job

train

ing

is b

eing

con

duct

ed o

n a

cont

inuo

us b

asis

.C

ondu

cted

aw

aren

ess

cam

paig

ns o

n irr

egul

ar e

xpen

ditu

re to

all

staf

f.•

Con

sequ

ence

man

agem

ent w

hich

was

impl

emen

ted,

con

tribu

ted

to th

e •

redu

ctio

n of

irre

gula

r exp

endi

ture

.Fruitlessand

wastefulexpenditure:

Stre

ngth

en in

tern

al c

ontro

l sys

tem

s.•

Step

up

the

impl

emen

tatio

n of

the

SOP’

s to

sta

ndar

dise

pro

cure

men

t •

and

paym

ent p

roce

dure

s.C

ontin

uous

impl

emen

tatio

n of

con

sequ

ence

man

agem

ent a

nd re

cove

r co

sts

whe

re a

pplic

able

.

Yes

Leadership–Aud

itRe

port/find

ing

paragraph11

Lead

ersh

ip

did

not

adeq

uate

ly

impl

emen

t th

eir a

ctio

n pl

an to

add

ress

pr

ior

year

au

dit

findi

ngs

in r

espe

ct o

f co

mpl

ianc

e w

ith

legi

slat

ion.

As

a

resu

lt, t

he in

tern

al c

ontro

l de

ficie

ncie

s w

ere

not

adeq

uate

ly

addr

esse

d,

resu

lting

in

re

peat

co

mpl

ianc

e fin

ding

s.

Furth

erm

ore,

le

ader

ship

di

d no

t en

sure

th

at

adeq

uate

co

nseq

uenc

e m

anag

emen

t w

as

impl

emen

ted

to

addr

ess

prev

ious

ly

repo

rted

irreg

ular

as w

ell a

s fru

itles

s an

d w

aste

ful e

xpen

ditu

re.

4.1

How

is th

e Ac

coun

ting

Offi

cer g

oing

to e

nsur

e im

plem

enta

tion

of th

e de

partm

enta

l ac

tion

plan

to

addr

ess

non-

co

mpl

ianc

e w

ith

legi

slat

ion?

The

depa

rtmen

t dev

elop

s an

Aud

it In

terv

entio

n Pl

an to

add

ress

•

nonc

ompl

ianc

e w

ith le

gisl

atio

n es

peci

ally

whe

re w

eakn

esse

s w

ere

iden

tified

(aud

it fin

ding

s).

Th

e de

partm

ent i

mpl

emen

ted

an A

udit

Inte

rven

tion

Plan

(AIP

) and

•

mon

itors

it th

roug

h re

gula

r fee

dbac

ks a

t all

Top

Man

agem

ent,

Audi

t C

omm

ittee

and

Ris

k C

omm

ittee

Mee

tings

. The

AIP

als

o fo

rms

part

of

the

Annu

al In

tern

al A

udit

Plan

for v

erifi

catio

n an

d te

stin

g.A

syst

em o

f man

agem

ent o

f all

audi

t mat

ters

has

bee

n pu

t in

plac

e •

whe

re u

pdat

ed ir

regu

lar,

fruitl

ess

and

was

tefu

l reg

iste

rs in

clud

ing

prev

ious

yea

rs w

ill be

pre

sent

ed a

t the

Bud

get A

dvis

ory

Com

mitt

ee

Mee

ting

on a

mon

thly

bas

is.

Prog

ress

repo

rt on

the

stat

us o

f fina

ncia

l mis

cond

uct w

as p

rese

nted

at

Top

Man

agem

ent m

eetin

gs o

n a

quar

terly

bas

is.

Yes

RO

OT

CA

USE

Con

trols

wer

e no

t ful

ly e

ffect

ive

to a

ddre

ss a

ll ca

ses

of n

onco

mpl

ianc

e.N

oC

OR

REC

TIVE

AC

TIO

NIn

tens

ify th

e im

plem

enta

tion

and

mon

itorin

g of

the

Audi

t Int

erve

ntio

n Pl

ans.

The

se a

ctio

n pl

ans

are

part

of g

over

nanc

e in

KR

A of

SM

S m

embe

rs.

Yes



9. PRIOR MODIFICATION TO AUDIT REPORTS

The Department took all the matters raised by the Auditor General seriously by strengthening monitoring of the implementation of the Audit Intervention Plan. Management continues to recognise Internal Audit and Audit Committee as well as Risk Management Committee as strategic partners in the accountability chain by;

• Ensuring that these governance structures are appropriately resourced,

• Improved turnaround time to implement and respond to the findings and recommendation of the structures.

Mattersofnon-complianceraised

Financialyearinwhichitfirstarose

Progressmadeinclearing/resolvingthematter

ConsequenceManagement1. Disciplinary Steps were not taken against

officials who made and/or permitted irregular expenditure as well as fruitless expenditure, as required by section 38(1)(h)(iii) of the PFMA and Treasury Regulation 9.1.3.

2015/16 All cases of irregular, fruitless and wasteful expenditure are thoroughly investigated and disciplinary action is taken against responsible officials. Weekly meetings are held to review and follow up on all outstanding matters.

ExpenditureManagement2. Effective steps were note taken to prevent

irregular expenditure amounting to R344,000 as disclosed in note 22 of the annual financial statements, in contravention of section 38(1) (c) (ii) of the PFMA and Treasury Regulation 9.1.1.

Effective steps were not taken to prevent fruitless and wasteful expenditure amounting to R605,000 as disclosed in note 23 to the financial statements, in contravention of section 38 (1)(c) (ii) of the PFMA and Treasury Regulation 9.1.1.

Money owed by the department was not paid within 30 days, as required by section 38(1)(f) of the PFMA and Treasury Regulations 8.3.2.

2010/11

2010/11

2015/16

IrregularExpenditure:The department has implemented the following corrective measures;

Enhanced the implementation of the •procurement standard operation procedures that were developed.Pre-audit unit was strengthened by •appointing appropriately qualified officials. On the job training is being conducted on a continuous basis. Conducted awareness campaigns on •irregular expenditure to all staffConsequence management which was •implemented, contributed to the reduction of irregular expenditure to R76,000 only.

Fruitlessandwastefulexpenditure:Strengthen internal control systems•Step up the implementation of the SOP’s •to standardize procurement and payment procedures

Continuous implementation of consequence management and recover costs where applicable.

The department will issue standing orders for all contracted travel agencies. Exception or age analysis reports are drawn monthly to review and follow up on over aged accruals and payables. An invoice tracking tool is also being implemented.

10. INTERNAL CONTROL UNIT (ICU)

During the year under review, Internal Control Unit reviewed and monitored the implementation of audit action plans to address internal control deficiencies that were identified by the Office of Auditor-General. Successful implementation of the Audit Intervention Plan reviewed by Provincial Treasury monthly, resulted with completed action plans as at 31 March 2017. Audit Intervention Plans were also submitted



to the Audit committee and Risk Management Committee quarterly. The Audit Intervention Plan is also a standing item in the agenda on the monthly Top Management meetings held by the department. Enforcement of compliance with relevant prescripts and periodical review of internal controls and maintenance of Financial BAS systems are always an on-going process.

During the past financial year (2016-17), the department registered irregular expenditures amounting to only R 76 000.00 and is disclosed in the Annual Financial Statements 2016-17 as such. Disciplinary processes are already in the process on the irregularities disclosed. The Compliance section of Internal Control Unit is also focused and committed to ensure mitigation or elimination of Unauthorised, Irregular/Fruitless and Wasteful expenditure. As part of the mitigation plans, Compliance section of Internal Control Unit also visitsed all district offices and Head office bi-monthly to render awareness programs on all compliance matters and updates the end users with new departmental Circulars, Policies, Procedures and other Government prescripts on a daily basis.

11. INTERNAL AUDIT AND AUDIT COMMITTEES

Internal Audit provides management with independent, objective assurance and consulting services designed to add value and continuously improve the operations of the Department. It assist the Department to accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of Governance, Risk Management and Control processes. The following key activities are performed in this regards:

• Assess and make recommendations for improving the governance processes in achieving the department’s objectives;

• Evaluate the adequacy and effectiveness and contribute to the improvement of the risk management process;

• Assist the Accounting Officer in maintaining efficient and effective controls by evaluating those controls to determine their effectiveness and efficiency, and by developing recommendations for enhancement or improvement.

Internal Audit work completed during the year under review for the Department included eight assurance engagements, seven mandatory engagements and five follow-ups. The details of these engagements are included in the Audit Committee report.

The Internal Audit Unit has observed that the overall control environment has continued to improve during the year under review, in line with the trend observed in the previous reporting period.

The Audit Committee is established as an oversight body, providing independent oversight over governance, risk management and control processes in the Department, which will include oversight and review of the following:

• Internal Audit function;

• External Audit function (Auditor General of South Africa – AGSA);

• Departmental Accounting and reporting;

• Departmental Accounting policies;

• AGSA management and audit report;



• Departmental In year Monitoring;

• Departmental Risk Management;

• Internal Control;

• Pre-determined objectives;

• Interim Financial Statements and Annual Financial Statement; and

• Ethic and Forensic Investigations.

The table below discloses relevant information on the Audit Committee members:

Name Qualifications Internalorexternal

Ifinternal,positioninthe

department

Date appointed

Date Resigned

No. of Meetingsattended

G Diutlwileng Bachelor of Commerce External Not applicable 1 August 2014 N/A 7

T Cumming (CA) Chartered Accountant External Not applicable 1 August 2014 N/A 7

Prof. G Mayende Doctorate of Philosophy External Not applicable 1 August 2014 N/A 5

Adv. Nzuzo LLB External Not applicable 1 August 2014 N/A 2

12. FINAL REPORT FROM THE AUDIT COMMITTEE CHAIR

We are pleased to present our report for the financial year ended 31 March 2017.

AuditCommitteeResponsibility

The Audit Committee reports that it has complied with the responsibilities arising from Section38(1)(a) (ii) of the PublicFinanceManagementActandTreasuryRegulation3.1. The Committee has adopted an appropriate formal Terms of Reference as its Audit Committee charter, has regulated its affairs in compliance with this charter and has discharged all its responsibilities as contained therein

TheEffectivenessofInternalControl

The review of the effectiveness of the system of internal controls by the Audit Committee is informed by reports submitted by external audit, internal audit and management. The development and maintenance of an effective internal control system is the responsibility of management.

The Audit Committee has drawn the attention of management to significant issues that have been raised in the management report of the Auditor General and Internal Audit Reports. The Committee assessed the system of internal controls that has been put in place by the Department was adequate but partially effective throughout the financial year under review.

A Risk Assessment was carried out during the year under review and the Internal Audit Plan was developed based on this Risk Assessment. The Department appointed the Independent Chairperson of the Risk Management Committee in order to enhance the oversight of existing and emerging risks faced by the Department.

The following internal audit work was completed during the year under review:



During the financial year 91% of all the assurance and mandatory projects, as planned in the Annual Internal Audit Plan were performed by Internal Audit.

The following internal audit engagements were approved by the audit committee and completed by the Internal Audit Function during the year under review:

AssuranceEngagements

• Performance Information,

• Financial Management,

• Asset Management;

• Veterinary Services;

• Disaster Management;

• Drought Relief Review;

• Fort Cox; and

• IT Review.

MandatoryEngagements

• Annual Financial Statements,

• Interim Financial Statements,

• Audit Intervention Plan,

• Key controls,

• Transfer Payments,

• Conditional Grants and

• Annual Report.

The above assignments were completed during the year, and two assignments were deferred to the next financial year namely the Occupational Health and Safety and Food Security performance audit.

The areas for improvement, as noted by Internal Audit during performance of their work, were agreed to by management. The Audit Committee monitors the implementation of the agreed actions on a quarterly basis.

In-YearManagementandMonthly/QuarterlyReports

The Department has monthly and quarterly reporting system to Treasury as required by the Public Finance Management Act (PFMA). Monitoring reviews of performance and financial information were done periodically in the year under review.

EvaluationofFinancialStatementsandAnnualPerformanceReportThe Audit Committee has:

• Reviewed and discussed the unaudited annual financial statements to be included in the annual report with Auditor General of South Africa (AGSA) and the management;

• Reviewed and discussed the unaudited information on pre-determined objectives to be included in the annual report with management;

• Reviewed for changes in accounting policies and practices as reported in the Annual Financial Statements; and



• Reviewed the Department’s compliance with legal and regulatory provisions.

Based on the Audit Committee’s review of the unaudited annual fi nancial statements the Committee resolved that they be recommended for submission to the Auditor General South Africa for auditing.

Based on the Audit Committee’s review of the unaudited information on predetermined objectives the Committee resolved that they be recommended for submission to the Auditor General South Africa for auditing.

Appreciation

The Committee wishes to acknowledge the commitment from management and staff to improve the audit opinion. The Committee would like to take this opportunity to express its sincere appreciation to the Member of Executive Council, Head of Department, the management of the Department, Internal Audit, Provincial Treasury and the AGSA for their support and co-operation during the year under review.

MS G.E. DIUTLWILENGCHAIRPERSON OF THE AUDIT COMMITTEEEASTERN CAPE DEPARTMENT OF RURAL DEVELOPMENT AND AGRARIAN REFORM31 MAY 2017



PART D: HUMAN RESOURCE

MANAGEMENT



1. INTRODUCTION

The department consider employees as the most valuable assets and are the foremost contributors to the achievement of departmental goals. Service excellence depends on the wellbeing of our organisation and its people. Hence the department views people management to be the responsibility of everyone.

The human resource management function is steadily transforming from being a transactional and predominantly procedure bound process into a role of being a strategic partner, change agent, an employee champion and an administrative expert.

2. OVERVIEW OF HUMAN RESOURCES

Employees are a key pillar in achieving the strategic objectives of the Department. Therefore, human resource planning aims to ensure that the Department has the right people, with the right skills, at the right place at the right time, all the time.

HR planning is currently being utilised to identify optimal strategies for HR management functions, such as recruitment, retention, learning, development, employment relations and employment equity, amongst others.

SetHRprioritiesfortheyearunderreviewandtheimpactofthesepriorities

To ensure that department’s future human resource needs are met, the following HR priorities were identified and implemented to address the recognised gaps in current and future human resource requirements:-

No HR Priority Impact

1. Development of an organisational structure that is aligned to the service delivery model that provides framework which clearly determines the nature, scope, extent and level of work that constitute the manner in which the agriculture and rural development services must be provided.

Enhance service delivery efficiencies and effectiveness

2. Build an appropriately sized, adequately competent and sufficiently skilled human capital that will enhance service delivery.

Skilled workforce to improve departmental performance.

3. Implement a planned approach to reduce the level of skills gaps and shortages that are being experienced in the following occupational classifications i.e. Specialist Agricultural Scientists, Veterinarians, Agricultural Engineers etc.

Increase the supply of critical and scarce skills to the department

4. Implement employee development practices such as job shadowing, mentoring of younger employees among others to encounter loss institutional memory due to staff turnover.

Preserved institutional memory through documented process and procedures.

5. Implementation of employment equity specific measures that will ensure adherence of 50% of females in SMS level and 2% for people living with disabilities.

Diverse organisation to increase quality of performance.Fair representation of people with disability in the workplace.

6. Develop a wellness culture in the Department that will ensure employees achieve optimum levels of performance whilst feeling cared for and supported in their respective workplace.

Decrease poor performance due to absenteeism.



No HR Priority Impact

7. Enhancing and maintenance of sound labour relations in the Department

Capacitated workforce that is able to apply the applicable policies, procedures and legislation pertaining to Labour Relations.

ChallengesfacedbytheDepartment

The department has to contend with increasing budget constraints and this enforces department to continue prioritising the filling of critical posts at the coal face of service delivery out of savings that have been realised through natural attrition.

The department experiences challenges in attracting critical and scarce skills in Specialist Agricultural Scientists, Veterinarians, and Agricultural Engineers.

The department is characterized by high staff turnover due to aging workforce, this have a negative effect on productivity levels within the department.

Non adherence to set Employment Equity goals and targets, as per Employment Equity Plan, as well as national targets of 50% for women in senior management service (SMS) and 2% for people with disabilities.

FutureHRplans/goals

An appropriate organizational structure has been developed to ensure effective response to the agricultural economic transformation strategy. This will have a positive influence in HR Planning, by assisting in upskilling, correctly placing employees and appropriately utilising them according to their skills and competencies.

The Department will continue prioritising attraction and retention of dire skills shortages, especially in the highly technical and specialised occupations. Further maintain measures to develop, transfer and retain skills through bursaries, internships and learnerships) aimed at addressing the core, critical and scarce skills.

Developing a wellness culture in the Department to ensure that employees achieve optimum levels of performance whilst feeling cared for and supported in their respective work environment.

The Department will continue implementing employment equity specific focussed measures i.e. Training intervention aimed at females on Middle Management levels in order to create a pool of suitable candidates for filling of Senior Management posts.



3.

HU

MA

N R

ESO

UR

CES

OVE

RSI

GH

T ST

ATIS

TIC

S

3.1Pe

rson

nelrelatedexpenditure

The

follo

win

g ta

bles

sum

mar

ise

the

final

aud

ited

pers

onne

l rel

ated

exp

endi

ture

by

prog

ram

me

and

by s

alar

y ba

nds.

In p

artic

ular

, it p

rovi

des

an in

dica

tion

of

the

follo

win

g:

•am

ount

spe

nt o

n pe

rson

nel;

and

•am

ount

spe

nt o

n sa

larie

s, o

verti

me,

hom

e ow

ner’s

allo

wan

ces

and

med

ical

aid

.

Table3.1.1Pe

rson

nelexpenditurebyprog

rammefortheperiod1April2016and

31March2017

Prog

ram

me

TotalE

xpenditure

(R’0

00)

Person

nel

Expend

iture

(R’0

00)

Training

Ex

pend

iture

(R’0

00)

Profession

aland

Sp

ecialS

ervices

Expend

iture

(R’0

00)

Person

nel

Expend

iture

asa%oftotal

expend

iture

Aver

age

person

nelcost

pere

mployee

(R’0

00)

Adm

inis

tratio

n 43

5 42

728

5 59

11

293

0.00

6610

1

Sust

aina

ble

reso

urce

man

age

114

516

82 3

6019

40.

0072

29

Farm

er s

uppo

rt &

deve

lopm

ent

805

544

327

312

218

0.00

4111

6

Vete

rinar

y se

rvic

es

295

262

219

723

436

0.00

7478

Res

earc

h &

tech

no d

evel

opm

ent s

ervi

ces

176

281

101

357

730.

0057

36

Agric

ultu

ral e

cono

mic

s se

rvic

es

33 8

3824

526

530.

0072

9

Stru

ctur

ed a

gric

ultu

re e

duca

tion

& tra

in

141

539

56 3

8934

10.

0040

20

Rur

al d

evel

opm

ent c

oord

inat

ion

182

121

15 4

9021

80.

009

6

TOTA

L2

184

529

1 11

2 74

82

826

0.00

5139

5



Table3.1.2Pe

rson

nelcostsbysalarybandfortheperiod1April2016and

31March2017

Salaryband

Person

nel

Expend

iture

(R’0

00)

%oftotal

person

nelcost

No.ofemployees

Aver

age

person

nelcost

pere

mployee

(R’0

00)

Low

er s

kille

d (L

evel

s 1-

2)42

458

328

115

1

Skille

d (le

vel 3

-5)

105

975

650

620

9

Hig

hly

skille

d pr

oduc

tion

(leve

ls 6

-8)

471

525

2812

8736

6

Hig

hly

skille

d su

perv

isio

n (le

vels

9-1

2)42

1 57

725

686

615

Seni

or a

nd T

op m

anag

emen

t (le

vels

13-

16)

71 2

134

5512

95

Total

1 11

2 74

866

2815

398

Table3.1.3Sa

larie

s,Overtime,Hom

eOwnersAllowanceand

MedicalAidbyprog

rammefortheperiod1April2016and

31March2017

Prog

ram

me

BasicSalaries

Ove

rtim

eHom

eOwnersAllowance

MedicalAid

Amou

nt

(R’0

00

Salarie

sas

a %

of

person

nel

costs

Amou

nt

(R’0

00)

Ove

rtim

e as

a %

of

person

nel

costs

Amou

nt

(R’0

00)

HO

A as

a %

ofpersonn

el

costs

Amou

nt

(R’0

00)

Medicalaid

as a

% o

f person

nel

costs

Adm

inis

tratio

n 19

4 81

168

.21

1 43

90.

3310

812

3.79

13 1

924.

62

Sust

aina

ble

reso

urce

m

anag

emen

t 57

950

70.3

636

0.04

2 59

03.

143

374

4.10

Farm

er s

uppo

rt &

deve

lopm

ent

233

811

71.4

322

0.01

10 1

733.

1115

031

4.59

Vete

rinar

y se

rvic

es15

5 64

668

.04

125

0.06

7 16

53.

1310

570

4.62

Tech

nolo

gy r

esea

rch

& de

velo

pmen

t ser

vice

s 67

397

66.4

92

095

2.07

5 13

45.

075

712

5.64

Agric

ultu

ral e

cono

mic

s 17

384

70.8

8-

-61

52.

5187

33.

56

Stru

ctur

ed a

gric

ultu

ral t

rain

ing

38 5

6968

.40

940

1.67

2 59

04.

593

115

5.52

Rur

al d

evel

opm

ent c

oord

inat

ion

10 2

0465

.87

-0.

0056

93.

6754

93.

54

TOTA

L77

5 77

269

.16

4 65

70.

4239

648

3.53

52 4

164.

67

Table3.1.4Sa

larie

s,Overtime,Hom

eOwnersAllowanceand

MedicalAidbysalarybandfortheperiod1April2016and

31March2017



SalaryBands

Salarie

sO

vert

ime

Hom

eOwnersAllowance

MedicalAid

Amou

nt

(R’0

00

Salarie

sas

a %

of

person

nel

costs

Amou

nt

(R’0

00)

Ove

rtim

e as

a %

of

person

nel

costs

Amou

nt

(R’0

00)

HO

A as

a %

ofpersonn

el

costs

Amou

nt

(R’0

00)

Medicalaid

as a

% o

f person

nel

costs

Skille

d (l

evel

1-2

) 19

464

461

620

3.82

3 81

78.

994

493

10.5

8Sk

illed

(lev

el 3

-5)

61 9

3258

1 75

81.

667

398

6.98

8 12

97.

67H

ighl

y sk

illed

prod

uctio

n (le

vels

6-8

)33

0 91

269

808

0.17

17 5

933.

6626

284

5.47

Hig

hly

skille

d su

perv

isio

n (le

vels

9-1

230

8 16

373

471

0.11

8 33

11.

9812

666

3.00

Seni

or m

anag

emen

t (le

vel

13-1

6)55

301

78-

-2

509

3.52

844

1.19

Total

775

772

694

657

0.42

39 6

483.

5352

416

4.67



3.2 EmploymentandVacancies

The tables in this section summarise the position with regard to employment and vacancies.

The following tables summarise the number of posts on the establishment, the number of employees, the vacancy rate, and whether there are any staff that are additional to the establishment.

This information is presented in terms of three key variables:

- programme

- salary band

- critical occupations

Departments have identified critical occupations that need to be monitored. In terms of current regulations, it is possible to create a post on the establishment that can be occupied by more than one employee. Therefore, the vacancy rate reflects the percentage of posts that are not filled.

Table3.2.1Employmentandvacanciesbyprogrammeason31March2017

Programme Numberofpostsonapprovedestablishment

Numberofpostsfilled

VacancyRate Numberofemployeesadditionaltotheestablishment

Programme 1 759 721 5.0 -

Programme 2 208 194 6.7 -

Programme 3 787 752 4.4 -

Programme 4 585 551 5.8 -

Programme 5 337 330 2.1 -

Programme 6 42 41 2.4 -

Programme 7 202 189 6.4 -

Programme 8 40 37 7.5 -

TOTAL 2 960 2 815 4.9 -

Table3.2.2Employmentandvacanciesbysalarybandason31March2017

SalarybandNumberofpostsonapprovedestablishment

Numberofpostsfilled VacancyRate

Numberofemployeesadditionaltotheestablishment

Interns - - - -

Lower skilled (1-2) 298 281 5.7 -

Skilled (3-5) 529 506 4.3 -

Highly skilled production (6-8) 1 352 1 287 4.8 -

Highly skilled supervision (9-12)

724 686 5.3 -

Senior management (13-16)

57 55 3.5 -

Total 2 960 2 815 4.9 -



Table3.2.3Employmentandvacanciesbycriticaloccupationsason31March2017

CriticalOccupations NumberofPosts

NumberofPostsFilled VacancyRate

NumberofPostsFilled

AdditionaltotheEstablishment

Artisans 51 47 7.8 -

Agriculture advisors 688 647 6 -

Animal Health Technicians 247 241 2.4 -

Engineering Technicians 39 37 5.1 -

Engineers 9 9 - -

Meat Inspectors 25 24 4 -

Scientist 72 70 2.8 -

Scientific Technicians 36 36 - -

State Veterinarian Technologist 11 7 36.4 -

State Veterinarians 41 38 3 -

TOTAL 1 219 1 156 5.2 -

3.3 FillingofSMSPosts

The tables in this section provide information on employment and vacancies as it relates to members of the Senior Management Service by salary level. It also provides information on advertising and filling of SMS posts, reasons for not complying with prescribed timeframes and disciplinary steps taken.

Table3.3.1SMSpostinformationason31March2017

SMSLevelTotalnumberoffunded

SMS Posts

TotalnumberofSMSposts

filled

% of SMS postsfilled


vacant

% of SMS postsvacant

Executive Authority 1 1 100% - 0%

Head of Department 1 1 100% - 0%

Salary Level 15 3 3 100% - 0%

Salary Level 14 14 13 93% 1 7.1%

Salary Level 13 39 37 94.87% 2 5.1%

Total 58 55 94.82% 3 5.2%

Table 3.3.2 SMS post information as on 30 September 2016

SMSLevelTotalnumberoffunded

SMS Posts


filled

% of SMS postsfilled


vacant

% of SMS postsvacant

Executive Authority 1 1 100% - 0%

Head of Department 1 1 100% - 0%

Salary Level 15 3 3 100% - 0%

Salary Level 14 14 13 93% 1 7.%

Salary Level 13 38 35 92% 3 8%

Total 57 53 93% 4 7%



Table3.3.3:AdvertisingandfillingofSMSpostsfortheperiod1April2016and31March2017

SMSLevel

Advertising Fillingofposts

Numberofvacanciesperleveladvertisedin6monthsofbecoming

vacant

Numberofvacanciesperlevelfilledin6monthsofbecoming

vacant

Numberofvacanciesperlevelnotfilledin6monthsbutfilledin12

months

Executive Authority - - -

Head of Department - - -

Salary Level 15 - - -

Salary Level 14 1 1 -

Salary Level 13 4 3 1

Total 5 4 1

Table3.3.4:ReasonsfornothavingcompliedwiththefillingoffundedvacantSMS-Advertisedpostswithin sixmonthsandfilledwithin12monthsafterbecomingvacantfortheperiod1April2016and31March 2017

Reasonsforvacanciesnotadvertisedwithinsixmonths

Not applicable. All SMS posts were advertised upon receipt of intention to vacate the position.

Reasonsforvacanciesnotfilledwithintwelvemonths

N/A

Table3.3.5:DisciplinarystepstakenfornotcomplyingwiththeprescribedtimeframesforfillingSMSposts within12monthsfortheperiod1April16and31March2017

Reasonsforvacanciesnotadvertisedwithinsixmonths

Not applicable, refer to table 3.3.4

Reasonsforvacanciesnotfilledwithinsixmonths

N/A, The current vacant posts have not exceeded the six months period

3.4 JobEvaluation

Within a nationally determined framework, executing authorities may evaluate or re-evaluate any job in their organisation. In terms of the Regulations all vacancies on salary levels 9 and higher must be evaluated before they are filled. The following table summarises the number of jobs that were evaluated during the year under review. The table also provides statistics on the number of posts that were upgraded or downgraded.



Table3.4.1:JobEvaluationsbySalarybandfortheperiod1April2016and31March2017

SalaryBand

NumberofPostsonapproved

establishment

NumberofJobs

Evaluated

% of Posts

EvaluatedbySalaryBands

Postsupgraded Postsdowngraded

Number %ofpostsEvaluated Number %ofposts

Evaluated

Lower skilled (1-2) 298 - - - - - -Skilled (3-5) 529 - - - - - -Highly skilled production (6-8) 1 352 - - - - - -

Highly skilled supervision (9-12) 724 - - - - - -

Senior management (13-16)

57 - - - - - -

Total 2 960 - - - - - -

The following table provides a summary of the number of employees whose positions were upgraded due to their posts being upgraded. The number of employees might differ from the number of posts upgraded since not all employees are automatically absorbed into the new posts and some of the posts upgraded could also be vacant.

Table3.4.2:Profileofemployeeswhosepositionswereupgradedduetotheirpostsbeingupgradedforthe period1April2016and31March2017

Gender African Asian Coloured White Total

Female - - - - -

Male - - - - -

Total - - - - -

Employeeswithadisability -

The following table summarises the number of cases where remuneration bands exceeded the grade determined by job evaluation. Reasons for the deviations are provided in each case.

Table 3.4.3: Employees with salary levels higher than those determined by job evaluation by occupation for theperiod1April2016and31March2017

Occupation Numberofemployees

Jobevaluationlevel

Remunerationlevel Reasonfordeviation

- NIL - - -

- NIL - - -

Total number of employees whose salaries exceeded the level determined by job evaluation NIL

Percentage of total employed NIL

The following table summarises the beneficiaries of the above in terms of race, gender, and disability.



Table3.4.4Profileofemployeeswhohavesalarylevelshigherthatthosedeterminedbyjobevaluationfor theperiod1April2016and31March2017

Gender African Asian Coloured White TotalFemale - - - - -Male - - - - -Total - - - - -

Employeeswithadisability - - - - -

Total number of Employees whose salaries exceeded the grades determine by job evaluation None

3.5 EmploymentChanges

This section provides information on changes in employment over the financial year. Turnover rates provide an indication of trends in the employment profile of the Department. The following tables provide a summary of turnover rates by salary band and critical occupations.

Table3.5.1:Annualturnoverratesbysalarybandfortheperiod1April2016and31March2017

SalaryBand

Numberofemployeesatbeginningofperiod(1April

2016)

Appointmentsandtransfers

intotheDepartment

Terminationsandtransfers

out of the Department

Turnoverrate

Lower skilled (Levels 1-2) 386 - 12 3.1

Skilled (Levels 3-5) 554 8 59 10.6

Highly skilled production (Levels 6-8) 1 264 24 54 4.3

Highly skilled supervision (Levels 9-12) 678 20 49 7.2

Senior Management Service Band A 45 3 2 4.4

Senior Management Service Band B 15 1 - -

Senior Management Service Band C 3 - - -

Senior Management Service Band D 2 - - -

TOTAL 2 947 56 176 5.9

Table3.5.2:Annualturnoverratesbycriticaloccupationfortheperiod1April2016and31March2017

Occupation


2016)


intothedepartment


out of the department

Turnoverrate

Artisans 51 - 11 21.6

Agriculture advisors 827 5 84 10.2

Animal Health Technicians 320 5 2 0.6

Engineering Technicians 42 7 - -

Engineers 9 - 2 22.2

Meat Inspectors 17 1 - -

Scientist 68 3 2 2.9

Scientific Technicians 37 - - -



Occupation


2016)


intothedepartment


out of the department

Turnoverrate

State Veterinarian Technologist 15 2 2 13.3

State Veterinarians 25 6 3 12.0

TOTAL 1 411 29 106 7.5

The table below identifies the major reasons why staff left the Department.

Table3.5.3:ReasonswhystafflefttheDepartmentfortheperiod1April2016and31March2017

TerminationType Number %ofTotalTerminations

Death 26 14.8%

Resignation 41 23.3%

Expiry of contract 2 1.1%

Dismissal – operational changes - -

Dismissal – misconduct 2 1.1%

Dismissal – inefficiency - -

Discharged due to ill health 2 1.1%

Retirement 96 54.5%

Transfers to other Public Service Departments 7 4%

Other - -

TOTAL 176 100%Totalnumberofemployeeswholeftasa%oftotalemployment 6.0

The following tables provide a summary of promotions by critical occupation and salary band.

Table3.5.4:Promotionsbycriticaloccupationfortheperiod1April2016and31March2017

OccupationEmployees(1April2016)

Promotionstoanothersalarylevel

Salarylevelpromotions

as a % of employeesbyoccupation

Progressionstoanother

notchwithinasalarylevel

Notchprogression

as a % of employeesbyoccupation

Artisans 51 - 0.0 26 51%

Agriculture advisors 827 2 0.2 623 75.3%

Animal Health Technicians 320 - - 232 72.5%

Engineering Technicians 42 - - 15 37.7%

Engineers 9 - - - -

Meat Inspectors 17 - - 12 70.6%

Scientist 68 - - 39 57.4%

Scientific Technicians 37 - - 19 51.4

State Veterinarian Technologist 15 - - 9 60%

State Veterinarians 25 1 4% 19 76%

TOTAL 1 411 3 0.2% 994 70.4%



Table3.5.5:Promotionsbysalarybandfortheperiod1April2016and31March2017

SalaryBand Employees(1April2016)

Promotionstoanothersalarylevel

Salarybandspromotions

as a % of employeesbysalarylevel

Progressionstoanothernotchwithinasalarylevel

Notchprogression

as a % of employeesbysalaryband

Lower skilled (Levels 1-2) 386 - - 111 28.8

Skilled (Levels 3-5) 554 1 0.2 465 83.9

Highly skilled production (Levels 6-8) 1264 7 0.6 966 76.4

Highly skilled supervision (Levels 9-12) 678 3 0.5 505 74.5

Senior management (Levels 13-16) 65 3 5 7 10.8

TOTAL 2 947 14 0.5 2 054 69.7



3.6Em

ploymentE

quity

Table3.6.1To

talnum

bero

femployees(in

clud

ingem

ployeeswith

disabilities)ineachofth

efollowingoccupatio

nalcategoriesason31March2017

Occup

ationalC

ategory

Male

Female

Total

African

Colou

red

Indian

Whi

teAfrican

Colou

red

Indian

Whi

teLe

gisl

ator

s, s

enio

r offi

cial

s an

d m

anag

ers

15-

-2

18-

1-

36

Prof

essi

onal

s27

71

220

220

31

1453

8

Tech

nici

ans

and

asso

ciat

e pr

ofes

sion

als

624

51

2441

34

-15

1 08

6

Cle

rks

112

3-

132

011

110

458

Serv

ice

and

sale

s w

orke

rs58

3-

-40

--

-10

1

Cra

ft an

d re

late

d tra

des

wor

kers

47-

--

--

--

47

Plan

t and

mac

hine

ope

rato

rs a

nd

asse

mbl

ers

38-

--

--

--

38

Elem

enta

ry o

ccup

atio

ns32

78

--

170

6-

-51

1

TOTA

L1

498

203

471

181

243

392

815

Table3.6.2:Totalnum

bero

femployees(in

clud

ingem

ployeeswith

disabilities)ineachofth

efollowingoccupatio

nalbandsason

31March2017

Occup

ationalB

and

Male

Female

Total

African

Colou

red

Indian

Whi

teAfrican

Colou

red

Indian

Whi

teTo

p M

anag

emen

t3

--

11

--

-5

Seni

or M

anag

emen

t28

-1

821

-1

160

Prof

essi

onal

ly q

ualifi

ed a

nd e

xper

ienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t42

61

232

198

31

1467

7

Skille

d te

chni

cal a

nd a

cade

mic

ally

qua

lified

w

orke

rs, j

unio

r man

agem

ent,

supe

rvis

ors,

fo

rem

en a

nd s

uper

inte

nden

ts57

45

-6

659

91

2312

77

Sem

i-ski

lled

and

disc

retio

nary

de

cisi

on

mak

ing

318

10-

-16

88

-1

505

Uns

kille

d an

d de

fined

dec

isio

n m

akin

g14

94

--

134

4-

-29

1

TOTA

L1

498

203

471

181

243

392

815



Table3.6.3:Recruitm

entforth

eperio

d1April2016to

31March2017

Occup

ationalB

and

Male

Female

Total

African

Colou

red

Indian

Whi

teAfrican

Colou

red

Indian

Whi

teSe

nior

Man

agem

ent

1-

--

2-

-1

4

Prof

essi

onal

ly q

ualifi

ed a

nd e

xper

ienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t7

--

18

-1

-17

Skille

d te

chni

cal a

nd a

cade

mic

ally

qu

alifi

ed w

orke

rs, j

unio

r man

agem

ent,

supe

rvis

ors,

fore

men

and

su

perin

tend

ents

14-

--

12-

-1

27

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n m

akin

g3

--

-5

--

-8

Uns

kille

d an

d de

fined

dec

isio

n m

akin

g-

--

--

--

--

TOTA

L25

--

127

-1

256

Employeeswith

disabilities

--

--

--

--

-

Table3.6.4:Promotionsfo

rtheperiod1April2016and

31March2017

Occup

ationalB

and

Male

Female

Total

African

Colou

red

Indian

Whi

teAfrican

Colou

red

Indian

Whi

teTo

p M

anag

emen

t-

--

--

--

--

Seni

or M

anag

emen

t3

-1

32

--

110

Prof

essi

onal

ly q

ualifi

ed a

nd e

xper

ienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t33

91

115

138

3-

1150

8

Skille

d te

chni

cal a

nd a

cade

mic

ally

qu

alifi

ed w

orke

rs, j

unio

r man

agem

ent,

supe

rvis

ors,

fore

men

426

3-

351

39

118

973

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n m

akin

g, P

erm

anen

t 29

99

--

149

8-

146

6

Uns

kille

d an

d de

fined

dec

isio

n m

akin

g43

2-

-64

2-

-11

1

TOTA

L1

100

152

2186

622

131

2 06

8

Empl

oyee

s w

ith d

isab

ilitie

s7

--

-6

--

-13



Table3.6.5:Terminationsfo

rtheperiod1April2016and

March2017

Occup

ationalB

and

Male

Female

Total

African

Colou

red

Indian

Whi

teAfrican

Colou

red

Indian

Whi

teTo

p M

anag

emen

t-

--

--

--

--

Seni

or M

anag

emen

t1

--

1-

--

-2

Prof

essi

onal

ly q

ualifi

ed a

nd e

xper

ienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t36

--

19

2-

250

Skille

d te

chni

cal a

nd a

cade

mic

ally

qu

alifi

ed w

orke

rs, j

unio

r man

agem

ent,

supe

rvis

ors,

fore

men

271

-1

24-

--

53

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n m

akin

g37

--

-22

--

-59

Uns

kille

d an

d de

fined

dec

isio

n m

akin

g6

--

-6

--

-12

TOTA

L10

71

-3

612

-2

176

Empl

oyee

s w

ith d

isab

ilitie

s 2

--

--

--

-2

Table3.6.6:Disciplinaryactio

nfortheperiod1April2016and

31March2017

DisciplinaryAction

Male

Female

Total

African

Colou

red

Indian

Whi

teAfrican

Colou

red

Indian

Whi

teTo

p M

anag

emen

t-

--

--

--

--

Seni

or M

anag

emen

t4

--

-1

--

-5

Prof

essi

onal

ly q

ualifi

ed a

nd e

xper

ienc

ed

spec

ialis

ts a

nd m

id-m

anag

emen

t4

--

--

--

-4

Skille

d te

chni

cal a

nd a

cade

mic

ally

qu

alifi

ed w

orke

rs, j

unio

r man

agem

ent,

supe

rvis

ors,

fore

men

9-

--

6-

--

15

Sem

i-ski

lled

and

disc

retio

nary

dec

isio

n m

akin

g, P

erm

anen

t 5

--

--

3-

-8

Uns

kille

d an

d de

fined

dec

isio

n m

akin

g10

--

2-

--

12

TOTA

L32

--

-9

3-

-44

Empl

oyee

s w

ith d

isab

ilitie

s-

--

--

--

--



Table3.6.7:Skillsdevelop

mentforth

eperio

d1April2016to

31March2017

Occup

ationalC

ategories

Male

Female

Total

African

Colou

red

Indian

Whi

teAfrican

Colou

red

Indian

Whi

teLe

gisl

ator

s, s

enio

r offi

cial

s an

d m

anag

ers

177

-1

114

6-

1-

326

Prof

essi

onal

s 1

--

-3

--

-4

Tech

nici

ans

and

asso

ciat

e pr

ofes

sion

als

22-

-27

--

-49

Cle

rks

175

---

-44

3-

--

618

Serv

ice

and

sale

s w

orke

rs

--

--

--

--

-

Cra

ft an

d re

late

d tra

des

wor

kers

-

--

--

--

--

Plan

t and

mac

hine

ope

rato

rs a

nd

asse

mbl

ers

--

--

--

--

-

Elem

enta

ry o

ccup

atio

ns

44--

--

57--

--

101

Total

419

-1

167

6-

1-

1 09

8

Employeeswith

disabilities

--

--

--

--

-



3.7 SigningofPerformanceAgreementsbySMSMembers

All members of the SMS must conclude and sign performance agreements within specific timeframes. Information regarding the signing of performance agreements by SMS members, the reasons for not complying within the prescribed timeframes and disciplinary steps taken is presented here.

Table3.7.1:SigningofPerformanceAgreementsbySMSmembersason31May2016

SMSLevel TotalnumberoffundedSMSposts

TotalnumberofSMSmembers

Signedagreements

Signedperformanceagreementsas

a %

Head of Department 1 1 1 1

Salary level 15 3 3 3 3



Total 54 54 54 100%

Table3.7.2:ReasonsfornothavingconcludedPerformanceagreementsforallSMSmembersason31 March 2016

Reasons

None.

Table 3.7.3: Disciplinary steps taken against SMS members for not having concluded Performance agreements as on 31 March 2016

Reasons

None.

3.8 PerformanceRewards

To encourage good performance, the Department has granted the following performance rewards during the year under review. The information is presented in terms of race, gender, disability, salary bands and critical occupations.

Table 3.8.1: Performance Rewards by race, gender and disability for the period 1 April 2016 to 31 March 2017

RaceandGenderBeneficiaryProfile Cost

NumberofBeneficiaries

Numberofemployees

%oftotalwithingroups

Cost (R’000)

Average Cost peremployee

African, Female 586 1 181 49.6 7550.96 12.8856

African, Male 610 1498 40.7 7817.69 12.81589

Asian, Female 2 3 66.7 36.97 18.485

Asian, Male 3 3 100.0 81.63 27.21

Coloured, Female 17 24 70.8 184.25 10.83824

Coloured, Male 10 20 50.0 90.61 9.061

White, Female 27 39 69.2 399.78 14.80667

White, Male 23 47 48.9 657.11 28.57



RaceandGenderBeneficiaryProfile Cost


Numberofemployees

%oftotalwithingroups

Cost (R’000)


TOTAL 1 278 2 815 45.4 16 819 13.16041Employeeswithadisability 7 16 43.75 92 1314

TOTAL 1 278 2 815 45.5 16 911 13.23

Table 3.8.2: Performance Rewards by salary band for personnel below Senior Management Service for the period1April2016to31March2017

SalaryBand

BeneficiaryProfile Costs Totalcostas a % of thetotalpersonnelexpenditure


Numberofemployees

%ofTotalwithinsalarybands

Cost (R’000)

Average Costperemployees

(R)Lower skilled (Levels 1-2) 71 291 24.4 356.44 5.02028 2.3

Skilled (Levels 3-5) 269 503 53.5 1 709.55 6.35520 11.2

Highly skilled production (Levels 6-8)

625 1269 49.3 7 582.00 12.13120 49.8

Highly skilled supervision (Levels 9-12)

275 652 42.2 5 296.25 19.25909 34.8

Contract (Levels 3-5) 1 2 50.0 12.48 12.48000 0.1

Contract (Levels 6-8) 2 3 66.7 39.31 19.65500 0.3

Contract (Levels 9-12) 9 25 36.0 232.71 25.85667 1.5

TOTAL 1 252 2 745 45.6 152 28.74 42.76578 100

Table3.8.3:PerformanceRewardsbycriticaloccupationfortheperiod1April2016to31March2017

CriticalOccupations

BeneficiaryProfile Cost


Numberofemployees

%ofTotalwithin

occupationCost (R’000) Average Cost

peremployee

Artisans 26 51 51 203.72 7.835385

Agriculture advisors 311 827 37.6 4741.16 15.24489

Animal Health Technicians 114 320 35.6 1670.49 14,653.39

Engineering Technicians 10 42 23.8 185.34 18.534

Engineers 3 9 33.3 96.38 32.12667

Meat Inspectors 13 17 76.5 219.24 16.86462

Scientist 25 68 36.8 472.29 18.8916

Scientific Technicians 21 37 56.8 441.01 21.00048

State Veterinarian Technologist 5 15 33.3 74.33 14.866



CriticalOccupations

BeneficiaryProfile Cost


Numberofemployees

%ofTotalwithin

occupationCost (R’000) Average Cost

peremployee

State Veterinarians 13 25 52 315.02 24.23231

TOTAL 541 1 411 38.3416 8 418.98 15.56189

Table3.8.4:Performancerelatedrewards(cashbonus),bysalarybandforSeniorManagementServicefor theperiod1April2016to31March2017

SalaryBand

BeneficiaryProfile Cost Totalcostas a % of thetotalpersonnelexpenditure


Numberofemployees

%oftotalwithinsalary

bands

Totalcost(R’000)


Band A 31 44 70.5 979.71 31.603548 1.94

Band B 11 16 68.8 504.33 45.848182 2.68

Band C 3 3 - 198.09 66.03 4.53

Band D - 2 - - - -

TOTAL 45 65 69.2 1 682.13 37.380667 2.2

3.9 ForeignWorkers

The tables below summarise the employment of foreign nationals in the Department in terms of salary band and major occupation.

Table3.9.1:Foreignworkersbysalarybandfortheperiod1April2016and31March2017

SalaryBand1April2016 31March2017 Change

Number %oftotal Number %oftotal Number %ChangeContract (Levels 6-8) 1 - - - - -

Contract (Levels 9-12) 25 92.6 27 100.0 2 7.41

TOTAL 26 96.30 27 100 2 7.41

Table3.9.2:Foreignworkersbymajoroccupationfortheperiod1April2016and31March2017

MajorOccupation01April2016 31March2017 Change

Number %oftotal Number %oftotal Number %ChangeProfessionals and managers 25 96.2 27 100 2 7.41

Technicians and associated professionals 1 - - - - -

TOTAL 26 96.30 27 100 2 7.41

3.10 Leaveutilisation

The Public Service Commission has identified the need for careful monitoring of sick leave within the public service. The following tables provide an indication of the use of sick leave and disability leave. In both cases, the estimated cost of the leave is also provided.



Table 3.10.1: Sick leave for the period 1 January 2016 to 31 December 2016

SalaryBand TotalDays% Days with Medical

certification

Numberofemployeesusingsick

leave

%oftotalemployeesusingsick

leave

Average daysperemployee

EstimatedCost (R’000)

Lower skilled (Levels 1-2) 2 428 63.8 232 12.8 10 1 165

Skilled (Levels 3-5) 3 148 53.3 363 20.1 9 2 133


6 794 57.6 771 42.7 9 9 030


3 209 60.4 405 22.4 8 7 066

Senior management (Levels 13-16)

204 55.9 35 1.9 6 795

TOTAL 15 783 58.2 1 806 100.0 9 20 189

Table3.10.2:Disability leave (temporaryandpermanent) for theperiod1January2016 to31December 2016

SalaryBand Totaldays% Days with Medical

certification

Numberofemployees

usingdisabilityleave

%oftotalemployees

usingdisabilityleave

Average daysperemployee

EstimatedCost (R’000)

Lower skilled (Levels 1-2) 168 14.9 5 3.3 34 75

Skilled (Levels 3-5) 443 5.6 6 1.4 74 303


619 4.0 8 1.3 77 791


221 11.3 5 2.3 44 544

Senior management (Levels 13-16)

6 416.7 1 16.7 6 22

Total 1 457 1.7 25 1.7 58 1 735

The table below summarises the utilisation of annual leave. The wage agreement concluded with trade unions in the PSCBC in 2000 requires management of annual leave to prevent high levels of accrued leave being paid at the time of termination of service.



Table 3.10.3: Annual Leave for the period 1 January 2016 to 31 December 2016

SalaryBand TotaldaystakenNoofEmployeesusingannual

leave

Averageperemployee

Lower skilled (Levels 1-2) 6063 332 18

Skilled (Levels 3-5) 13355 591 19

Highly skilled production (Levels 6-8) 29191 1331 22

Highly skilled supervision (Levels 9-12) 16 512 717 23

Senior management (Levels 13-16) 1 310 68 19

TOTAL 66 431 3 039 22

Table 3.10.4: Capped leave for the period 1 January 2016 to 31 December 2016

SalarybandTotaldaysofcappedleave

taken

Noofemployeesusingcapped

leave

Avnoofdaystakenperemployee

Avcappedleaveperemployeeason(31December

2016)Lower Skilled (Levels 1-2) 10 4 2.5 19.48

Skilled (Levels 3-5) 70.75 12 5.9 76.19

Highly skilled production (Levels 6-8) 148 18 8.22 115.04

Highly skilled supervision (Levels 9-12) 65 14 4.64 125

Senior Management (Level 13-16) - - - 115.89

TOTAL 293.75 48 6.12 105.17

The following table summarise payments made to employees as a result of leave that was not taken.

Table3.10.5:Leavepay-outsfortheperiod1April2016and31March2017

Reason TotalAmount(R’000)

NumberofEmployees

AverageperEmployee(R’000)

Leave pay out for 2016/17 due to non-utilisation of leave for the previous cycle 74 2 37 073

Capped leave pay out on termination of service for 2016/17 18 053 132 136 764

Current leave pay out on termination of service for 2016/17 486 28 17 374

TOTAL 18 613 162 114 898



3.11 HIV/AIDS&HealthPromotionProgrammes

Table 3.11.1: Steps taken to reduce the risk of occupational exposure

Units/categoriesofemployeesidentifiedtobeathighriskofcontractingHIV-relateddiseases(ifany)

Keystepstakentoreducetherisk

All employees are regarded to be at risk.

Counselling services were offered to 133 employees •as part of preventative approach in managing HIV and AIDS.Educational training on Sexually Transmitted •Infection, HIV and AIDS including TB management was delivered to 1204 employees.13 564 condoms were distributed.•Voluntary Counselling and Testing (VCT) for •HIV which involves pre testing and post testing counselling sessions was done to 272 employees.

Table3.11.2:DetailsofHealthPromotionandHIV/AIDSProgrammes(ticktheapplicableboxesandprovide therequiredinformation)

Question Yes No Details,ifyes

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.

Corporate Advisory Services Director: Mrs Nonzwakazi Shitlhelani

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.

The Department does have an Employee Health and Wellness Unit with a total of seven (7) employees. A budget of R279 191 was allocated for 2016/17 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.

Counselling services were offered to 133 employees as part of preventative approach in managing HIV, AIDS and TB.Educational training on Sexually Transmitted Infection, HIV and AIDS including TB management was delivered to 1204 employees.13 564 condoms were distributed.Voluntary Counselling and Testing (VCT) for HIV which involves pre-testing and post-testing counselling sessions were conducted to 272 employees.

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.

The Department does not have HIV and AIDS Committee but has a Wellness Forum where wellness issues including HIV and AIDS are discussed.

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.

The Department is currently implementing a policy which is due for reviewal by the end of 2017/18 financial year.

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.

Awareness sessions on HIV, AIDS and TB management that also focus on promoting respect for human dignity were conducted in 206/17, and 1204 employees were reached.



Question Yes No Details,ifyes

7. Does the Department encourage its employees to undergo Voluntary Counselling and Testing? If so, list the results that you have achieved.

178 employees were tested and screened on HIV, AIDS and TB for 16/17 financial year

8. Has the Department developed measures/indicators to monitor & evaluate the impact of your health promotion programme? If so, list these measures/indicators.

A Knowledge, Attitude, Prevalence and Behaviour Attitude (KAPB) survey was conducted and recommendations are currently implemented. Quarter Forum Meetings that are coordinated by the Office of the Premier are attended to discuss progress report.

3.12 LabourRelations

Table3.12.1:Collectiveagreementsfortheperiod1April2016and31March2017

Subject matter Date

Nil N/A

Notes: If there were no agreements, keep the heading and replace the table with the following

TotalnumberofCollectiveagreements Nil

The following table summarises the outcome of disciplinary hearings conducted within the department for the year

under review.

Table3.12.2:Misconductanddisciplinaryhearingsfinalisedfortheperiod1April2016and31March2017

Outcomesofdisciplinaryhearings Number PercentageofTotal

Correctional counselling - -

Verbal warning - -

Written warning 2 6.8

Final written warning 12 41.3

Suspended without pay 6 20.6

Fine - -

Demotion - -

Dismissal 1 3.4

Not guilty 2 6.8

Case withdrawn 6 20.6

Total 29 100.0

If there were no agreements, keep the heading and replace the table with the following:

Total number of Disciplinary hearing finalised 5



Table 3.12.3: Types of misconduct addressed at disciplinary hearings for the period 1 April 2016 and 31 March2017

Typeofmisconduct Number PercentageofTotal

Alleged Fraud 3 6.8

Absence Without Authority 6 13.6

Alleged poor work performance - -

Misuse of Govt. vehicles 3 6.8

Wilful damage or negligence of government property 16 36.3

Alleged Financial Mismanagement 7 15.9

Alleged Assault 1 2.2

Alleged Insubordination 8 18.1

Alleged under influence of alcohol - -

TOTAL 44 100

Table3.12.4:Grievancesloggedfortheperiod1April2016and31March2017

Grievances Number %ofTotal

Number of grievances resolved 14 73.6

Number of grievances not resolved 5 26.4

Totalnumberofgrievanceslodged 19 100%

Table3.12.5:DisputesloggedwithCouncilsfortheperiod1April2016and31March2017

Disputes Number %oftotal

Number of disputes upheld 2 50%

Number of disputes dismissed 2 50%

Totalnumberofdisputeslodged 4 100%

Table3.12.6:Strikeactionsfortheperiod1April2016and31March2017

Total number of persons working days lost -

Total costs working days lost -

Amount recovered as a result of no work no pay (R’000) -

Table3.12.7:Precautionarysuspensionsfortheperiod1April2016and31March2017

Number of people suspended 1

Number of people whose suspension exceeded 30 days -

Average number of days suspended 21

Cost(R’000)ofsuspensions 31 381.53



3.13 Skillsdevelopment

This section highlights the efforts of the Department with regard to skills development.

Table3.13.1:Trainingneedsidentifiedfortheperiod1April2016andthe31March2017

OccupationalCategories Gender

Numberofemployeesasat1April

2016

Trainingneedsidentifiedatthestartofthereportingperiod

TotalLearnerships

SkillsProgrammes & other short

courses

Other forms of training

Legislators, senior officials and managers

Female 24 - 16 - 16

Male 41 - 81 - 81

Professionals Female 216 - 33 - 33

Male 461 - 17 - 17

Technicians and associate professionals

Female 692 - 14 - 14

Male 585 - 18 - 18

Clerks Female 177 46 168 - 168

Male 328 15 141 - 141

Service and sales workers

Female - - - - -

Male - - - - -

Craft and related trades workers

Female - - - - -

Male - - - - -

Plant and machine operators and assemblers

Female - - - - -

Male - - - - -

Elementary occupations

Female 138 - 38 - 38

Male 153 - 8 - 8

Sub totalsFemale 1 247 46 269 - 269

Male 1 568 15 265 - 265

Total 2 815 61 534 - 534

Table3.13.2:Trainingprovidedfortheperiod1April2016and31March2017



2016

Trainingprovidedwithinthereportingperiod

TotalLearnerships


courses


Legislators, senior officials and managers

Female 24 - 147 - 147

Male 41 - 179 - 179

Professionals Female 216 - 3 - 3

Male 461 - 1 - 1

Technicians and associate professionals

Female 692 - 27 - 27

Male 585 - 22 - 22





2016

Trainingprovidedwithinthereportingperiod

TotalLearnerships


courses


Clerks Female 177 47 443 - 443

Male 328 16 175 - 175

Service and sales workers

Female - - - - -

Male - - - - -

Craft and related trades workers

Female - - - - -

Male - - - - -

Plant and machine operators and assemblers

Female - - - - -

Male - - - - -

Elementary occupations

Female 138 - 57 - 57

Male 153 - 44 - 44

Sub Gender Totals

Female 1 247 47 677 - 677

Male 1 568 16 421 - 421

Total 2 815 63 1 098 - 1 098

3.14 Injuryonduty

The following tables provide basic information on injury on duty.

Table3.14.1:Injuryondutyfortheperiod1April2016andMarch2017

Natureofinjuryonduty Number %oftotal

Required basic medical attention only 5 83.3%

Temporary Total Disablement - -

Permanent Disablement 1 16.6%

Fatal - -

Total 6 100%

3.15 UtilisationofConsultants

The following tables relate information on the utilisation of consultants in the Department.

In terms of the Public Service Regulations “consultant‟ means a natural or juristic person or a partnership who or which provides in terms of a specific contract on an ad hoc basis any of the following professional services to a department against remuneration received from any source:

(a) The rendering of expert advice;

(b) The drafting of proposals for the execution of specific tasks; and

(c) The execution of a specific task which is of a technical or intellectual nature, but excludes an employee of a department.



Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2016 and 31March2017

ProjecttittleTotalnumberof

consultantsthatworkedonproject

Duration(workdays) ContractvalueinRand

None -

Totalnumberofprojects Totalindividualconsultants

Totaldurationworkdays

TotalcontractvalueinRand

None -

Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically DisadvantagedIndividuals(HDIs)fortheperiod1April2016and31March2017

Projecttitle PercentageownershipbyHDIgroups

PercentagemanagementbyHDI

groups

NumberofconsultantsfromHDIgroupsthatworkontheproject

None

Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2016 and 31 March 2017

ProjecttitleTotalNumberof

consultantsthatworkedonproject

Duration(Workdays) DonorandcontractvalueinRand

None -

Totalnumberofprojects Totalindividualconsultants

TotaldurationWorkdays

TotalcontractvalueinRand

None -

Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals(HDIs)fortheperiod1April2016and31March2017

Projecttitle PercentageownershipbyHDIgroups

PercentagemanagementbyHDI

groups

NumberofconsultantsfromHDIgroupsthatworkontheproject

None

3.16 SeverancePackages

Table 3.16.1: Granting of employee initiated severance packages for the period 1 April 2016 and 31 March 2017

SalaryBandNo of

applicationsreceived

No of applicationsreferredtothe

MPSA

No of applicationssupportedby

MPSA

No of Packages

approvedbydepartment

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

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

Highly Skilled Production (Salary Level 6-8)

- - - -

Highly Skilled Production (Salary Level 9-12)

- - - -

Senior Management (Salary Level 13 and higher)

- - - -

Total - - - -



PART E: FINANCIAL

INFORMATION



REPORT OF THE AUDITOR GENERAL

Reportoftheauditor-generaltoEasternCapeProvincialLegislatureonvoteno.8:EasternCapeDepartmentofRuralDevelopmentandAgrarianReform

Reportontheauditofthefinancialstatements

Opinion

1. I have audited the financial statements of the Eastern Cape Department of Rural Development and Agrarian Reform set out on pages 139 to 207, which comprise the appropriation statement, statement

of financial position as at 31 March 2017, and the statement of financial performance and cash flow

statement for the year then ended, as well as the notes to the financial statements, including a summary

of significant accounting policies.

2. In my opinion, the financial statements present fairly, in all material respects, the financial position of

the Department of Rural Development and Agrarian Reform as at 31 March 2017, and its financial

performance and cash flows for the year then ended in accordance with Modified Cash Standard (MCS)

and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No. 1 of 1999)

(PFMA) and the Division of Revenue Act of South Africa, 2016 (Act No. 3 of 2016)(DoRA).

Basisforopinion

3. I conducted my audit in accordance with the International Standards on Auditing (ISAs). My responsibilities

under those standards are further described in the auditor-general’s responsibilities for the audit of the

financial statements section of my report.

4. I am independent of the department in accordance with the International Ethics Standards Board

for Accountants’ Code of ethics for professional accountants (IESBA code) together with the ethical

requirements that are relevant to my audit in South Africa. I have fulfilled my other ethical responsibilities

in accordance with these requirements and the IESBA code.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

opinion.

Emphasisofmatter

6. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Irregular expenditure

7. Irregular expenditure of R1,3 million that has accumulated over a number of years and that has not been

recovered, written off or condoned is disclosed in note 24 to the financial statements.


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017REPORT OF THE AUDITOR GENERAL

Responsibilitiesoftheaccountingofficer

8. The accounting officer is responsible for the preparation and fair presentation of the financial statements

in accordance with the MCS and the requirements of the PFMA and DoRA 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.

9. In preparing the financial statements, the accounting officer is responsible for assessing the Department

of Rural Development and Agrarian Reform’s ability to continue as a going concern, disclosing, as

applicable, matters relating to going concern and using the going concern basis of accounting unless

the accounting officer either intends to liquidate department’s or to cease operations, or has no realistic

alternative but to do so.

Auditor-general’sresponsibilitiesfortheauditofthefinancialstatements

10. My objectives are to obtain reasonable assurance about whether the financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report

that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee

that an audit conducted in accordance with ISAs will always detect a material misstatement when it

exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on

the basis of these financial statements.

11. A further description of my responsibilities for the audit of the financial statements is included in the

annexure to the auditor’s report.

Reportontheauditoftheannualperformancereport

Introductionandscope

12. In accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA) and the

general notice issued in terms thereof, I have a responsibility to report material findings on the reported

performance information against predetermined objectives for selected programmes presented in the

annual performance report. I performed procedures to identify findings but not to gather evidence to

express assurance.

13. My procedures address the reported performance information, which must be based on the approved

performance planning documents of the department. I have not evaluated the completeness and

appropriateness of the performance indicators/measures included in the planning documents. My

procedures also did not extend to any disclosures or assertions relating to planned performance

strategies and information in respect of future periods that may be included as part of the reported

performance information. Accordingly, my findings do not extend to these matters.


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017REPORT OF THE AUDITOR GENERAL

14. I evaluated the usefulness and reliability of the reported performance information in accordance with

the criteria developed from the performance management and reporting framework, as defined in the

general notice, for the following selected programmes presented in the annual performance report of the

department for the year ended 31 March 2017:

Programmes Pages in the annualperformancereport

Programme 3 – Farmer support and development 45 - 49

Programme 4 – Veterinary services 50 - 56

Programme 8 – Rural development 71 -74

15. I performed procedures to determine whether the reported performance information was properly

presented and whether performance was consistent with the approved performance planning documents.

I performed further procedures to determine whether the indicators and related targets were measurable

and relevant, and assessed the reliability of the reported performance information to determine whether

it was valid, accurate and complete.

16. I did not identify any material findings on the usefulness and reliability of the reported performance

information for the following programmes:

• Programme 3 – Farmer support and development

• Programme 4 – Veterinary services

• Programme 8 – Rural development

Other matters

17. I draw attention to the matters below.

Achievement of planned targets

18. Refer to the annual performance report on pages 33 to 74 for information on the achievement of planned

targets for the year and explanations provided for the under/overachievement of a significant number of

targets.

Adjustmentofmaterialmisstatements

19. I identified material misstatements in the annual performance report submitted for auditing. These

material misstatements were on the reported performance information of Programme 4 – veterinary

services. As management subsequently corrected the misstatements, I did not raise any material

findings on the usefulness and reliability of the reported performance information.


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017REPORT OF THE AUDITOR GENERAL

Reportonauditofcompliancewithlegislation

Introductionandscope

20. In accordance with the PAA and the general notice issued in terms thereof, I have a responsibility to

report material findings on the compliance of the department with specific matters in key legislation. I

performed procedures to identify findings but not to gather evidence to express assurance.

21. I did not identify any instances of material non-compliance with specific matters in key legislation, as set

out in the general notice issued in terms of the PAA.

Otherinformation

22. The Department of Rural Development and Agrarian Reform accounting officer is responsible for the

other information. The other information comprises the information included in the annual report which

includes the accounting officer’s report, the audit committee’s report. The other information does not

include the financial statements, the auditor’s report thereon and those selected programmes presented

in the annual performance report that have been specifically reported on in the auditor’s report.

23. My opinion on the financial statements and findings on the reported performance information and

compliance with legislation do not cover the other information and I do not express an audit opinion or

any form of assurance conclusion thereon.

24. In connection with my audit, my responsibility is to read the other information and, in doing so,

consider whether the other information is materially inconsistent with the financial statements and the

selected programmes presented in the annual performance report, or my knowledge obtained in the

audit, or otherwise appears to be materially misstated. If, based on the work I have performed on the

other information obtained prior to the date of this auditor’s report, I conclude that there is a material

misstatement of this other information, I am required to report that fact.

25. If, based on the work I have performed, I conclude that there is a material misstatement of this other

information; I am required to report on that fact. I have nothing to report in this regard.


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017REPORT OF THE AUDITOR GENERAL

Internalcontroldeficiencies

26. I considered internal control relevant to my audit of the financial statements, reported performance

information and compliance with applicable legislation; however, my objective was not to express any

form of assurance thereon. I did not identify any significant deficiencies in internal control.

East London

31 July 2017



Annexure–Auditor-general’sresponsibilityfortheaudit

1. As part of an audit in accordance with the ISAs, I exercise professional judgement and maintain professional scepticism throughout my audit of the financial statements, and the procedures performed on reported performance information for selected programmes and on the department’s compliance with respect to the selected subject matters.

Financialstatements

2. In addition to my responsibility for the audit of the financial statements as described in the auditor’s report, I also:

• identify and assess the risks of material misstatement of the financial statements whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the department’s internal control.

• evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the accounting officer.

• conclude on the appropriateness of the accounting officer’s use of the going concern basis of accounting in the preparation of the financial statements for the Department of Rural Development and Agrarian Reform. I also conclude, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial statements about the material uncertainty or, if such disclosures are inadequate, to modify the opinion on the financial statements. My conclusions are based on the information available to me at the date of the auditor’s report. However, future events or conditions may cause a department to cease to continue as a going concern.

• evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

• obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. I am responsible for the direction, supervision and performance of the group audit. I remain solely responsible for my audit opinion.



Communicationwiththosechargedwithgovernance

3. I communicate with the accounting officer regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

4. I also confirm to the accounting officer that I have complied with relevant ethical requirements regarding independence, and communicate all relationships and other matters that may reasonably be thought to have a bearing on my independence and here applicable, related safeguards.



App

ropriatio

nperp

rogram

me

2016

/17

2015

/16

APP

RO

PRIA

TIO

N S

TATE

MEN

TAdjusted

App

ropriatio

nSh

iftingof

Fund

sVirements

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

Expend

iture

Prog

ram

mes

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Adm

inistration

1.

449

607

-3

950

453

557

433

493

20 0

6410

0.0%

425

503

432

510

SustainableResou

rce

2. M

anagem

ent

119

447

-(4

236

)11

5 21

111

4 51

669

599

.4%

124

922

124

663

Farm

erSup

port&

3. D

evelop

ment

810

176

-1

100

811

276

805

544

5 73

299

.3%

660

690

647

964

Veterin

arySe

rvices

4.

292

992

-3

681

296

673

295

262

1 41

199

.5%

271

446

271

347

ResearchandTechno

logy

5.

176

022

-61

017

6 63

217

6 28

135

199

.8%

142

031

142

316

AgriculturalE

cono

mics

6. Se

rvices

34 5

62-

734

569

33 8

3973

097

.9%

55 6

5352

456

StructuredAgricultural

7. Ed

ucationandTraining

148

224

-(5

255

)14

2 96

914

1 53

91

430

99.0

%13

8 19

013

2 74

3

RuralDevelop

ment

8.

182

053

-14

318

2 19

618

2 12

175

100.

0%16

2 34

116

2 16

5

Subtotal

2 21

3 08

3-

-2

213

083

2 18

2 59

530

488

98.6

%1

980

776

1 96

6 16

4

StatutoryApp

ropriatio

n2

039

--

2 03

91

934

105

94.9

%1

906

1 90

1

ProvincialMEC

2 03

92

039

1 93

410

594

.9%

1906

1901

TOTA

L2

215

122

--

2 21

5 12

22

184

529

30 5

9398

.6%

1 98

2 68

21

968

065


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017

2016/17

2015

/16

Fina

l A

ppro

pria

tion

Act

ual

Expe

nditu

reFinal

App

ropriatio

nActual

Expend

iture

TOTA

L(broug

htfo

rward)

2 21

5 12

21

982

682

Recon

ciliatio

nwith

statemento

ffinancialperform

ance

AD

D-

Dep

artm

enta

l rec

eipt

s19

575

699

Actualamou

ntspers

tatemento

ffinancialperform

ance(totalre

venu

e)2

234

697

1 98

3 38

1

Actualamou

ntspers

tatemento

ffinancialperform

ance(totalexpenditure)

2 1

84 5

29

1 96

8 06

5


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017

App

ropriatio

npere

cono

micclassificatio

n

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

1 70

1 72

2-

(29

908)

1 67

1 81

41

669

561

2 25

399

.9%

1 58

1 98

81

565

030

Com

pensationofemployees

1 12

3 07

1-

(8 0

00)

1 11

5 07

11

112

748

2 32

399

.8%

1 05

6 33

61

055

869

Sala

ries

and

wag

es97

2 74

1(1

238

)(6

719

)96

4 78

496

0 65

84

126

99.6

%92

4 51

891

0 04

4

Soci

al c

ontri

butio

ns15

0 33

01

238

(1 2

81)

150

287

152

090

(1 8

03)

101.

2%13

1 81

814

5 82

5

Goo

dsand

services

578

651

-(2

1 90

8)55

6 74

355

6 76

0(1

7)10

0.0%

525

644

508

571

Adm

inis

trativ

e fe

es1

992

(606

)-

1 38

61

343

4396

.9%

2 05

71

834

Adve

rtisi

ng8

255

1 58

7(1

7)9

825

8 99

583

091

.5%

7 18

97

005

Min

or a

sset

s3

573

(422

)(1

20)

3 03

13

403

(372

)11

2.3%

5 05

12

212

Audi

t cos

ts: E

xter

nal

5 45

1(8

0)-

5 37

15

371

-10

0.0%

6 28

36

282

Burs

arie

s: E

mpl

oyee

s59

9(2

79)

-32

032

0-

100.

0%19

119

0

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

6 70

11

402

443

8 54

68

217

329

96.1

%5

380

5 07

2

Com

mun

icat

ion

19 2

9974

6-

20 0

4519

900

145

99.3

%21

130

20 4

49

Com

pute

r ser

vice

s20

252

1 81

6-

22 0

6821

850

218

99.0

%16

430

15 5

07

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry s

ervi

ces

2 62

9(1

063

)(1

04)

1 46

21

365

9793

.4%

1 84

21

286

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

7 24

990

(1 3

00)

6 03

95

778

261

95.7

%11

053

9 56

7

Labo

rato

ry s

ervi

ces

2(1

)-

1-

1-

13-

Lega

l ser

vice

s2

083

--

2 08

31

782

301

85.5

%1

887

1 87

4

Con

tract

ors

59 8

06(9

031

)(1

8 38

4)32

391

32 2

5213

999

.6%

22 8

3522

355

Agen

cy a

nd s

uppo

rt / o

utso

urce

d se

rvic

es-

--

--

--

--

Ente

rtain

men

t27

6(4

8)-

228

210

1892

.1%

239

196

Flee

t ser

vice

s17

723

5 33

8-

23 0

6122

451

610

97.4

%16

643

16 9

21

Inve

ntor

y: C

loth

ing

mat

eria

l and

su

pplie

s-

--

--

--

357

353

Inve

ntor

y: F

arm

ing

supp

lies

215

887

9 90

23

113

228

902

226

482

2 42

098

.9%

202

762

196

412

Inve

ntor

y: F

ood

and

food

su

pplie

s54

0(1

36)

-40

438

915

96.3

%1

402

1 39

4



App

ropriatio

npere

cono

micclassificatio

n

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Inve

ntor

y: F

uel,

oil a

nd g

as99

8(1

01)

(148

)74

972

722

97.1

%1

504

1 23

8

Inve

ntor

y: L

earn

er a

nd te

ache

r su

ppor

t mat

eria

l41

(10)

-31

283

90.3

%50

5

Inve

ntor

y: M

ater

ials

and

sup

plie

s3

453

(302

)-

3 15

12

947

204

93.5

%2

817

10 3

44

Inve

ntor

y: M

edic

al s

uppl

ies

1 12

8(8

13)

-31

531

05

98.4

%21

419

5

Inve

ntor

y: M

edic

ine

30 5

31(8

8)(1

100

)29

343

29 0

4629

799

.0%

27 2

8026

937

Inve

ntor

y: O

ther

sup

plie

s2

865

(40)

(16)

2 80

92

670

139

95.1

%1

265

1 08

9

Con

sum

able

sup

plie

s21

689

(2 5

17)

(47)

19 1

2519

714

(589

)10

3.1%

22 2

837

622

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

7 27

5(5

57)

(54)

6 66

46

392

272

95.9

%5

754

7 58

9

Ope

ratin

g le

ases

12 2

0625

8-

12 4

6411

921

543

95.6

%12

935

8 21

2

Prop

erty

pay

men

ts13

723

(189

)-

13 5

3414

591

(1 0

57)

107.

8%14

283

16 8

48

Trav

el a

nd s

ubsi

sten

ce71

932

3 37

918

75 3

2980

791

(5 4

62)

107.

3%83

900

87 3

00

Trai

ning

and

dev

elop

men

t24

325

(7 9

92)

(4 3

00)

12 0

3312

739

(706

)10

5.9%

14 8

0113

182

Ope

ratin

g pa

ymen

ts10

355

(2 4

52)

(17)

7 88

68

167

(281

)10

3.6%

9 45

612

088

Venu

es a

nd fa

cilit

ies

3 80

239

212

54

319

4 20

311

697

.3%

3 21

23

137

Ren

tal a

nd h

iring

2 01

21

817

-3

829

2 40

61

423

62.8

%3

146

3 87

6

Interestonrentonland

--

--

53(5

3)-

859

0

Inte

rest

pai

d-

--

-53

(53)

-8

590

Transfersandsubsidies

271

241

-8

000

279

241

278

370

871

99.7

%22

1 37

422

1 23

2

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts19

7 79

3-

-19

7 79

319

7 76

726

100.

0%15

3 57

315

3 57

3

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts(n

on-b

usin

ess

entit

ies)

197

793

--

197

793

197

767

2610

0.0%

153

573

153

573

Non

-pro

fit in

stitu

tions

54 0

71-

-54

071

54 0

71-

100.

0%43

875

43 8

75

Hou

seho

lds

19 3

77-

8 00

027

377

26 5

3284

596

.9%

23 9

2623

784

Oth

er tr

ansf

ers

to h

ouse

hold

s19

377

8 00

027

377

26 5

3284

596

.9%

23 9

2623

784

Paym

entsfo

rcapitalassets

213

168

-21

908

235

046

227

577

7 46

996

.8%

159

320

154

342

Build

ings

and

oth

er fi

xed

stru

ctur

es11

9 08

1(6

245

)11

311

124

147

122

781

1 36

698

.9%

81 5

3779

006



App

ropriatio

npere

cono

micclassificatio

n

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Oth

er fi

xed

stru

ctur

es11

9 08

1(6

245

)11

311

124

147

122

781

1 36

698

.9%

81 5

3779

006

Mac

hine

ry a

nd e

quip

men

t63

357

6 27

38

610

78 2

4074

009

4 23

194

.6%

59 3

7257

098

Tran

spor

t equ

ipm

ent

26 3

162

116

-28

432

28 5

47(1

15)

100.

4%20

549

19 8

18

Oth

er m

achi

nery

and

equ

ipm

ent

37 0

414

157

8 61

049

808

45 4

624

346

91.3

%38

823

37 2

80

Biol

ogic

al a

sset

s30

700

(28)

1 98

732

659

30 7

871

872

94.3

%15

411

15 2

38

Softw

are

and

othe

r int

angi

ble

asse

ts-

--

--

--

3000

3000

Paym

entsfo

rfinancialassets

20 0

00-

9 02

129

021

9 02

120

000

31.1

%20

000

27 4

61

TOTA

L2

215

122

--

2 21

5 12

22

184

529

30 5

9398

.6%

1 98

2 68

21

968

065

StatutoryApp

ropriatio

npere

cono

micclassificatio

n

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

2 03

9-

-2

039

1 93

410

594

.9%

1 90

61

901

Com

pens

atio

n of

em

ploy

ees

2 03

9-

-2

039

1 93

410

594

.9%

1 90

61

901

TOTA

L2

039

--

2 03

91

934

105

94.9

%1

906

1 90

1



PRO

GR

AM

ME

1: A

DM

INIS

TRAT

ION

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Offi

ce o

f the

MEC

1.1

12 0

61-

(1 1

34)

10 9

2711

020

(93)

100.

9%9

525

9 72

8

1.2

Seni

or M

anag

emen

t64

875

-(2

343

)62

532

41 9

3720

595

67.1

%62

191

69 4

35

1.3

Cor

pora

te S

ervi

ces

207

740

-8

521

216

261

216

194

6710

0.0%

197

429

196

892

1.4

Fina

ncia

l Man

agem

ent

155

492

-(4

79)

155

013

155

511

(498

)10

0.3%

147

823

148

130

1.5

Com

mun

icat

ion

Serv

ices

9 43

9-

(615

)8

824

8 83

1(7

)10

0.1%

8 53

58

325

Totalforsub

program

mes

449

607

-3

950

453

557

433

493

20 0

6495

.6%

425

503

432

510

Econ

omicclassificatio

n

Currentpayments

393

051

-(4

050

)38

9 00

139

0 32

5(1

324

)10

0.3%

364

799

363

035

Com


286

951

-(4

078

)28

2 87

328

3 65

7(7

84)

100.

3%26

5 75

326

5 59

9

Sala

ries

and

wag

es24

9 27

7(8

59)

(3 9

95)

244

423

245

360

(937

)10

0.4%

232

186

228

023

Soci

al c

ontri

butio

ns37

674

859

(83)

38 4

5038

297

153

99.6

%33

567

37 5

76

Goo

dsand

services

106

100

-28

106

128

106

668

(540

)10

0.5%

99 0

3896

846

Adm

inis

trativ

e fe

es32

8(9

6)-

232

294

(62)

126.

7%19

621

1

Adve

rtisi

ng6

061

1 07

4-

7 13

57

159

(24)

100.

3%6

093

5 95

4

Min

or a

sset

s71

4(1

76)

(115

)42

329

912

470

.7%

504

207

Audi

t cos

ts: E

xter

nal

5 45

1(8

0)-

5 37

15

371

-10

0.0%

6 21

66

215

Burs

arie

s: E

mpl

oyee

s59

9(2

79)

-32

032

0-

100.

0%19

119

0

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

1 13

576

321

42

112

2 02

092

95.6

%23

419

1

Com

mun

icat

ion

12 9

8742

5-

13 4

1213

321

9199

.3%

15 3

0714

716

Com

pute

r ser

vice

s14

433

1 25

7-

15 6

9015

651

3999

.8%

13 0

5912

801

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry s

ervi

ces

2 39

0(8

24)

(104

)1

462

1 36

597

93.4

%1

761

1 28

6

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

--

--

--

--

-

Labo

rato

ry s

ervi

ces

--

--

--

--

-

Lega

l ser

vice

s2

083

--

2 08

31

782

301

85.5

%1

887

1 87

4

Con

tract

ors

2 34

3(1

168

)-

1 17

51

036

139

88.2

%1

033

898



PRO

GR

AM

ME

1: A

DM

INIS

TRAT

ION

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Agen

cy a

nd s

uppo

rt / o

utso

urce

d se

rvic

es-

--

--

--

--

Ente

rtain

men

t18

1(3

7)-

144

133

1192

.4%

154

139

Flee

t ser

vice

s2

697

806

-3

503

2 96

453

984

.6%

540

989

Inve

ntor

y: C

loth

ing

mat

eria

l and

su

pplie

s-

--

--

--

--

Inve

ntor

y: F

arm

ing

supp

lies

732

(657

)-

7575

-10

0.0%

219

219

Inve

ntor

y: F

ood

and

food

su

pplie

s19

2(1

42)

-50

51(1

)10

2.0%

759

751

Inve

ntor

y: F

uel,

oil a

nd g

as66

(66)

--

--

240

34

Inve

ntor

y: M

ater

ials

and

sup

plie

s21

8(2

1)-

197

162

3582

.2%

524

Inve

ntor

y: M

edic

al s

uppl

ies

--

--

--

--

-

Inve

ntor

y: O

ther

sup

plie

s-

--

--

--

--

Con

sum

able

sup

plie

s1

421

(158

)-

1 26

31

125

138

89.1

%1

372

1 10

7

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

2 44

1(6

3)(4

9)2

329

2 08

424

589

.5%

1 91

31

694

Ope

ratin

g le

ases

9 98

5(9

)-

9 97

69

800

176

98.2

%11

428

6 90

3

Prop

erty

pay

men

ts11

332

(992

)-

10 3

4011

616

(1 2

76)

112.

3%10

865

13 6

58

Trav

el a

nd s

ubsi

sten

ce18

100

1 45

975

19 6

3420

614

(980

)10

5.0%

20 8

3921

520

Trai

ning

and

dev

elop

men

t5

665

(1 3

28)

(300

)4

037

4 02

98

99.8

%1

215

1 15

9

Ope

ratin

g pa

ymen

ts2

387

(713

)-

1 67

41

936

(262

)11

5.7%

2 17

92

410

Venu

es a

nd fa

cilit

ies

1 98

361

230

72

902

2 82

181

97.2

%72

871

3

Ren

tal a

nd h

iring

176

413

-58

958

72

99.7

%10

198

3

Interestand

rentonland

--

--

53(5

3)-

859

0

Inte

rest

pai

d-

--

-53

(53)

-8

590


19 3

77-

8 00

027

377

26 5

3284

596

.9%

23 9

2623

784

Hou

seho

lds

19 3

77-

8 00

027

377

26 5

3284

596

.9%

23 9

2623

784

Oth

er tr

ansf

ers

to h

ouse

hold

s19

377

-8

000

27 3

7726

532

845

96.9

%23

926

23 7

84

Paym

entsfo

rcapitalassets

17 1

79-

-17

179

16 6

3654

396

.8%

16 7

7818

230



PRO

GR

AM

ME

1: A

DM

INIS

TRAT

ION

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Mac

hine

ry a

nd e

quip

men

t17

179

--

17 1

7916

636

543

96.8

%13

778

15 2

30

Tran

spor

t equ

ipm

ent

6 45

91

727

-8

186

8 15

828

99.7

%4

462

3 73

2

Oth

er m

achi

nery

and

equ

ipm

ent

10 7

20(1

727

)-

8 99

38

478

515

94.3

%9

316

11 4

98

Softw

are

and

othe

r int

angi

ble

asse

ts-

--

--

--

3000

3000

Paym

entsfo

rfinancialassets

20 0

00-

-20

000

020

000

100.

0%20

000

27 4

61

TOTA

L44

9 60

7-

3 95

045

3 55

743

3 49

320

064

95.6

%42

5 50

343

2 51

0

1.1OfficeoftheMEC

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

12 0

07-

(1 1

34)

10 8

7311

007

(134

)10

1.2%

9 45

99

678

Com

pens

atio

n of

em

ploy

ees

5 83

0-

(1 1

34)

4 69

64

679

1799

.6%

4 37

34

368

Goo

ds a

nd s

ervi

ces

6 17

7-

-6

177

6 32

8(1

51)

102.

4%5

086

5 31

0

Paym

entsfo

rcapitalassets

54-

-54

1341

24.1

%66

50

Mac

hine

ry a

nd e

quip

men

t54

--

5413

4124

.1%

6650

TOTA

L12

061

-(1

134

)10

927

11 0

20(9

3)10

0.9%

9 52

59

728



1.2Se

niorManagem

ent

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

44 6

89-

(2 3

43)

42 3

4641

784

562

98.7

%42

004

41 8

20

Com

pens

atio

n of

em

ploy

ees

34 6

43-

(3 3

10)

31 3

3331

332

110

0.0%

31 4

5431

436

Goo

ds a

nd s

ervi

ces

10 0

46-

967

11 0

1310

452

561

94.9

%10

550

10 3

84

Paym

entsfo

rcapitalassets

186

--

186

153

3382

.3%

187

154

Mac

hine

ry a

nd e

quip

men

t18

6-

-18

615

333

82.3

%18

715

4

Paym

entsfo

rfinancialassets

20 0

00-

-20

000

-20

000

100.

0%20

000

27 4

61

TOTA

L64

875

-(2

343

)62

532

41 9

3720

595

67.1

%62

191

69 4

35

1.3Corpo

rateServices

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

179

831

-52

118

0 35

218

1 51

8(1

166

)10

0.6%

165

727

162

956

Com

pens

atio

n of

em

ploy

ees

107

762

-1

360

109

122

110

143

(1 0

21)

100.

9%10

0 92

610

0 93

2

Goo

ds a

nd s

ervi

ces

72 0

69-

(839

)71

230

71 3

75(1

45)

100.

2%64

793

61 4

34

Interestand

rentonland

--

--

--

-8

590


19 3

77-

8 00

027

377

26 5

3284

596

.9%

23 9

2623

784

Hou

seho

lds

19 3

778

000

27 3

7726

532

845

96.9

%23

926

23 7

84

Paym

entsfo

rcapitalassets

8 53

2-

-8

532

8 14

438

895

.5%

7 77

610

152

Mac

hine

ry a

nd e

quip

men

t8

532

--

8 53

28

144

388

95.5

%7

776

10 1

52

TOTA

L20

7 74

0-

8 52

121

6 26

121

6 19

467

100.

0%19

7 42

919

6 89

2



1.4FinancialM

anagem

ent

2015

/16

2014

/15

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

147

302

(479

)14

6 82

314

7 39

9(5

76)

100.

4%13

9 33

914

0 52

1

Com

pens

atio

n of

em

ploy

ees

131

813

(379

)13

1 43

413

1 31

511

999

.9%

122

865

122

864

Goo

ds a

nd s

ervi

ces

15 4

89(1

00)

15 3

8916

084

(695

)10

4.5%

16 4

7417

657

Interestand

rentonland

--

--

--

--

-

Paym

entsfo

rcapitalassets

8 19

0-

-8

190

8 11

278

99.0

%8

484

7 60

9

Mac

hine

ry a

nd e

quip

men

t8

190

--

8 19

08

112

7899

.0%

5 48

44

609

Softw

are

and

othe

r int

angi

ble

asse

ts-

--

--

--

3 00

03

000

TOTA

L15

5 49

2-

(479

)15

5 01

315

5 51

1(4

98)

100.

3%14

7 82

314

8 13

0

1.5Com

mun

icationSe

rvices

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

9 22

2-

(615

)8

607

8 61

7(1

0)10

0.1%

8 27

08

060

Com

pens

atio

n of

em

ploy

ees

6 90

3-

(615

)6

288

6 18

810

098

.4%

6 13

55

999

Goo

ds a

nd s

ervi

ces

2 31

9-

-2

319

2 42

9(1

10)

104.

7%2

135

2 06

1

Paym

entsfo

rcapitalassets

217

--

217

214

398

.6%

265

265

Mac

hine

ry a

nd e

quip

men

t21

7-

-21

721

43

98.6

%26

526

5

TOTA

L9

439

-(6

15)

8 82

48

831

(7)

100.

1%8

535

8 32

5



Prog

ram

me

2: S

UST

AIN

AB

LE R

ESO

UR

CE

MA

NA

GEM

ENT

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

2.1

Engi

neer

ing

Serv

ice

60 2

88-

(2 6

80)

57 6

0857

157

451

99.2

%67

452

66 9

04

2.2

Land

Car

e11

632

--

11 6

3211

621

1199

.9%

11 6

6612

118

2.3

Land

use

man

agem

ent

47 5

27-

(1 5

56)

45 9

7145

738

233

99.5

%45

804

45 6

41

Totalforsub

program

mes

119

447

-(4

236

)11

5 21

111

4 51

669

599

.4%

124

922

124

663

Econ

omicclassificatio

n

Currentpayments

113

697

-(4

236

)10

9 46

110

8 84

761

499

.4%

112

680

113

038

Com


86 8

17-

(4 2

37)

82 5

8082

360

220

99.7

%81

115

81 1

10

Sala

ries

and

wag

es75

586

(169

)(3

913

)71

504

71 4

3173

99.9

%71

106

70 4

04

Soci

al c

ontri

butio

ns11

231

169

(324

)11

076

10 9

2914

798

.7%

10 0

0910

706

Goo

dsand

services

26 8

80-

126

881

26 4

8739

498

.5%

31 5

6531

928

Adm

inis

trativ

e fe

es28

4(1

09)

-17

516

69

94.9

%31

429

7

Adve

rtisi

ng42

4(4

7)-

377

368

997

.6%

128

117

Min

or a

sset

s32

6(5

)-

321

242

7975

.4%

423

386

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

641

(72)

-56

956

36

98.9

%59

458

4

Com

mun

icat

ion(

G&S

)4

1-

53

260

.0%

6-

Com

pute

r ser

vice

s99

3(3

1)-

962

937

2597

.4%

783

717

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

-87

-87

87-

100.

0%4

814

4 66

9

Con

tract

ors

6 58

7(1

1)-

6 57

66

560

1699

.8%

8 51

68

984

Ente

rtain

men

t4

--

42

250

.0%

82

Flee

t ser

vice

s2

609

47-

2 65

62

607

4998

.2%

2 52

22

516

Inve

ntor

y: F

arm

ing

supp

lies

1 33

480

-1

414

1 39

717

98.8

%90

489

4

Inve

ntor

y: fu

el, o

il an

d ga

s59

19-

7874

494

.9%

2222

Inve

ntor

y: M

ater

ials

and

sup

plie

s81

9-

-81

981

81

99.9

%88

087

8

Inve

ntor

y: O

ther

sup

plie

s-

200

-20

019

82

99.0

%-

-

Con

sum

able

sup

plie

s2

386

(318

)-

2 06

82

054

1499

.3%

1 27

21

251



Prog

ram

me

2: S

UST

AIN

AB

LE R

ESO

UR

CE

MA

NA

GEM

ENT

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Con

sum

able

s: S

tatio

nery

, pr

intin

g an

d of

fice

supp

lies

973

(75)

-89

882

375

91.6

%84

372

1

Ope

ratin

g le

ases

238

(66)

-17

213

240

76.7

%27

121

5

Prop

erty

pay

men

ts2

--

2-

2-

3-

Trav

el a

nd s

ubsi

sten

ce7

882

459

18

342

8 38

7(4

5)10

0.5%

7 75

58

134

Trai

ning

and

dev

elop

men

t35

3(3

6)-

317

305

1296

.2%

119

99

Ope

ratin

g pa

ymen

ts68

5(8

7)-

598

550

4892

.0%

1 10

91

168

Venu

es a

nd fa

cilit

ies

157

(36)

-12

197

2480

.2%

221

225

Ren

tal a

nd h

iring

120

--

120

117

397

.5%

5849

Paym

entsfo

rcapitalassets

5 75

0-

-5

750

5 66

981

98.6

%12

242

11 6

25

Build

ings

and

oth

er fi

xed

stru

ctur

es-

--

--

--

6 91

26

511

Oth

er fi

xed

stru

ctur

es-

--

--

--

6 91

26

511

Mac

hine

ry a

nd e

quip

men

t5

750

--

5 75

05

669

8198

.6%

5 33

05

114

Tran

spor

t equ

ipm

ent

1 57

6-

-1

576

1 81

2(2

36)

115.

0%1

304

1 30

4

Oth

er m

achi

nery

and

equ

ipm

ent

4 17

4-

-4

174

3 85

731

792

.4%

4 02

63

810

Total

119

447

-(4

236

)11

5 21

111

4 51

669

599

.4%

124

922

124

663



SUB-P

ROGRAMME2.1:E

NGINEE

RINGSER

VICES

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

56 6

26-

(2 6

80)

53 9

4653

544

402

99.3

%56

871

56 8

16

Com

pens

atio

n of

em

ploy

ees

48 5

80-

(2 6

80)

45 9

0045

680

220

99.5

%44

472

44 4

68

Goo

ds a

nd s

ervi

ces

8 04

6-

-8

046

7 86

418

297

.7%

12 3

9912

348

Paym

entsfo

rcapitalassets

3 66

2-

-3

662

3 61

349

98.7

%10

581

10 0

88

Build

ings

and

oth

er fi

xed

stru

ctur

es6

912

6 51

1

Mac

hine

ry a

nd e

quip

men

t3

662

--

3 66

23

613

4998

.7%

3 66

93

577

Total

60 2

88-

(2 6

80)

57 6

0857

157

451

99.2

%67

452

66 9

04

SUB-P

ROGRAMME2.2:LANDCARE

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

11 6

32-

-11

632

11 6

2111

99.9

%11

666

12 1

18

Goo

ds a

nd s

ervi

ces

11 6

32-

-11

632

11 6

2111

99.9

%11

666

12 1

18

Total

11 6

32-

-11

632

11 6

2111

99.9

%11

666

12 1

18



SUB-P

ROGRAMME2.3:LANDUSE

MANAGEM

ENT

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

45 4

39-

(1 5

56)

43 8

8343

682

201

99.5

%44

143

44 1

04

Com

pens

atio

n of

em

ploy

ees

38 2

37-

(1 5

57)

36 6

8036

680

-10

0.0%

36 6

4336

642

Goo

ds a

nd s

ervi

ces

7 20

2-

17

203

7 00

220

197

.2%

7 50

07

462

Paym

entsfo

rcapitalassets

2 08

8-

-2

088

2 05

632

98.5

%1

661

1 53

7

Mac

hine

ry a

nd e

quip

men

t2

088

--

2 08

82

056

3298

.5%

1 66

11

537

Total

47 5

27-

(1 5

56)

45 9

7145

738

233

99.5

%45

804

45 6

41

Prog

ram

me

3: F

AR

MER

SU

PPO

RT

AN

D D

EVEL

OPM

ENT

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Farm

er S

ettle

men

t1.

1 23

8 51

0-

1 40

223

9 91

223

6 06

53

847

98.4

%83

443

80 6

85

3.2

Exte

nsio

n an

d Ad

viso

ry S

ervi

ce39

5 81

9-

(4 1

91)

391

628

391

217

411

99.9

%37

6 46

037

5 62

5

3.3

Food

Sec

urity

175

847

-3

889

179

736

178

262

1 47

499

.2%

200

787

191

654

Totalforsub

program

mes

810

176

-1

100

811

276

805

544

5 73

299

.3%

660

690

647

964

Econ

omicclassificatio

n

Currentpayments

664

674

(16

200)

648

474

646

086

2 38

899

.6%

588

094

577

110

Com


332

566

(4 0

00)

328

566

327

312

1 25

499

.6%

312

025

311

963

Sala

ries

and

wag

es28

7 21

5(6

5)(4

000

)28

3 15

028

1 82

01

330

99.5

%26

7 03

326

8 88

6

Soci

al c

ontri

butio

ns45

351

65-

45 4

1645

492

(76)

100.

2%44

992

43 0

77

Goo

dsand

services

332

108

-(1

2 20

0)31

9 90

831

8 77

41

134

99.6

%27

6 06

926

5 14

7

Adm

inis

trativ

e fe

es29

5(6

8)-

227

228

(1)

100.

4%91

890

2

Adve

rtisi

ng1

145

807

-1

952

1 11

383

957

.0%

599

532

Min

or a

sset

s74

9(1

56)

-59

356

231

94.8

%92

475

7

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

1 79

140

4-

2 19

52

124

7196

.8%

2 54

62

511



Prog

ram

me

3: F

AR

MER

SU

PPO

RT

AN

D D

EVEL

OPM

ENT

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Com

mun

icat

ion

6 16

935

4-

6 52

36

512

1199

.8%

5 65

75

629

Com

pute

r ser

vice

s2

710

483

-3

193

3 19

3-

100.

0%1

471

1 47

0

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry s

ervi

ces

234

(234

)-

--

--

--

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

6 89

820

(1 3

00)

5 61

85

509

109

98.1

%-

-

Con

tract

ors

44 0

94(7

961

)(1

6 00

0)20

133

20 5

32(3

99)

102.

0%10

203

9 30

3

Ente

rtain

men

t20

(4)

-16

16-

100.

0%20

16

Flee

t ser

vice

s6

426

2 27

0-

8 69

68

693

310

0.0%

7 89

67

867

Inve

ntor

y: C

loth

ing

mat

eria

l and

su

pplie

s-

--

--

--

357

353

Inve

ntor

y: F

arm

ing

supp

lies

207

728

8 19

95

100

221

027

219

463

1 56

499

.3%

185

650

182

511

Inve

ntor

y: F

ood

and

food

su

pplie

s28

316

-29

929

27

97.7

%56

256

4

Inve

ntor

y: F

uel,

oil a

nd g

as15

8-

-15

815

8-

100.

0%63

763

7

Inve

ntor

y: L

earn

er a

nd te

ache

r su

ppor

t mat

eria

l10

(10)

--

--

--

-

Inve

ntor

y: M

ater

ials

and

sup

plie

s94

2(9

5)-

847

843

499

.5%

1 07

64

385

Inve

ntor

y: M

edic

al s

uppl

ies

---

--

--

--

-

Inve

ntor

y: M

edic

ine

--

--

--

--

-

Inve

ntor

y: O

ther

sup

plie

s-

108

-10

810

17

93.5

%-

-

Con

sum

able

sup

plie

s15

568

(1 6

68)

-13

900

13 7

1318

798

.7%

11 2

713

537

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

2 09

7(2

03)

-1

894

1 94

2(4

8)10

2.5%

1 58

11

564

Ope

ratin

g le

ases

1 29

432

7-

1 62

11

451

170

89.5

%69

760

9

Prop

erty

pay

men

ts1

066

1 01

2-

2 07

82

048

3098

.6%

1 47

81

395

Trav

el a

nd s

ubsi

sten

ce21

980

(244

)-

21 7

3623

684

(1 9

48)

109.

0%29

851

28 9

08

Trai

ning

and

dev

elop

men

t4

328

(3 6

36)

-69

21

489

(797

)21

5.2%

5 92

94

862

Ope

ratin

g pa

ymen

ts3

681

(1 0

13)

-2

668

2 65

216

99.4

%4

045

4 13

0



Prog

ram

me

3: F

AR

MER

SU

PPO

RT

AN

D D

EVEL

OPM

ENT

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Venu

es a

nd fa

cilit

ies

1 34

8(1

25)

-1

223

1 22

12

99.8

%1

754

1 77

1

Ren

tal a

nd h

iring

1 09

41

417

-2

511

1 23

51

276

49.2

%94

793

4


18 1

57-

-18

157

18 1

57-

100.

0%-

-

Dep

artm

enta

l age

ncie

s an

d ac

coun

t14

550

--

14 5

5014

550

-10

0.0%

--

Dep

artm

enta

l age

ncie

s an

d ac

coun

t(non

-bus

ines

s en

titie

s)14

550

--

14 5

5014

550

-10

0.0%

--

Non

-Pro

fit in

stitu

tions

3 60

7-

-3

607

3 60

7-

100.

0%-

-

Paym

ents

for c

apita

l ass

ets

127

345

-17

300

144

645

141

301

3 34

497

.7%

72 5

9670

854

Build

ings

and

oth

er fi

xed

stru

ctur

es10

2 75

9(4

196

)9

111

107

674

106

436

1 23

898

.9%

54 5

6853

066

Oth

er fi

xed

stru

ctur

es10

2 75

9(4

196

)9

111

107

674

106

436

1 23

898

.9%

54 5

6853

066

Mac

hine

ry a

nd e

quip

men

t24

586

4 19

68

189

36 9

7134

865

2 10

694

.3%

18 0

2817

778

Tran

spor

t equ

ipm

ent

11 3

2784

-11

411

11 4

038

99.9

%8

322

8 32

2

Oth

er m

achi

nery

and

equ

ipm

ent

13 2

594

112

8 18

925

560

23 4

622

098

91.8

%9

706

9 46

6

Total

810

176

-1

100

811

276

805

544

5 73

299

.3%

660

690

647

964



SUB-P

ROGRAMME3.1:FARMER

SET

TLEM

ENT

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

134

407

-(1

6 49

4)11

7 91

311

6 81

81

095

99.1

%31

749

30 1

00

Com

pens

atio

n of

em

ploy

ees

14 1

63-

806

14 9

6914

969

-10

0.0%

13 0

2413

023

Goo

ds a

nd s

ervi

ces

120

244

-(1

7 30

0)10

2 94

410

1 84

91

095

98.9

%18

725

17 0

77

Transferand

sub

sidies

12 0

0012

000

12 0

00-

100.

0%

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts12

000

--

12 0

0012

000

-10

0.0%

--

Dep

artm

enta

l age

ncie

s(no

n-bu

sine

ss

entit

ies)

12 0

00-

-12

000

12 0

00-

100.

0%-

-

Paym

entsfo

rcapitalassets

92 1

03-

17 8

9610

9 99

910

7 24

72

752

97.5

%51

694

50 5

85

Build

ings

and

oth

er fi

xed

stru

ctur

es89

789

(3 1

23)

9 70

796

373

95 3

051

068

98.9

%51

068

50 0

13

Mac

hine

ry a

nd e

quip

men

t2

314

3 12

38

189

13 6

2611

942

1 68

487

.6%

626

572

Total

238

510

-1

402

239

912

236

065

3 84

798

.4%

83 4

4380

685

SUB-P

ROGRAMME3.2:E

XTEN

SIONANDADVISO

RYSER

VICES

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

370

757

-(4

191

)36

6 56

636

6 28

727

999

.9%

359

297

358

594

Com

pens

atio

n of

em

ploy

ees

315

271

-(4

191

)31

1 08

031

0 21

686

499

.7%

296

110

296

098

Goo

ds a

nd s

ervi

ces

55 4

86-

-55

486

56 0

71(5

85)

101.

1%63

187

62 4

96

Transferand

sub

sidies

3 60

7-

-3

607

3 60

7-

100.

0%-

-

Paym

entsfo

rcapitalassets

21 4

55-

-21

455

21 3

2313

299

.4%

17 1

6317

031

Mac

hine

ry a

nd e

quip

men

t21

455

--

21 4

5521

323

132

99.4

%17

163

17 0

31

Total

395

819

-(4

191

)39

1 62

839

1 21

741

199

.9%

376

460

375

625



SUB-P

ROGRAMME3.3:FOODSEC

URITY

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

159

510

-4

485

163

995

162

981

1 01

499

.4%

197

048

188

416

Com

pens

atio

n of

em

ploy

ees

3 13

2-

(615

)2

517

2 12

739

084

.5%

2 89

12

842

Goo

ds a

nd s

ervi

ces

156

378

-5

100

161

478

160

854

624

99.6

%19

4 15

718

5 57

4


2 55

0-

-2

550

2 55

0-

100.

0%-

-

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts2

550

--

2 55

02

550

-10

0.0%

--

Paym

entsfo

rcapitalassets

13 7

87-

(596

)13

191

12 7

3146

096

.5%

3 73

93

238

Build

ings

and

oth

er fi

xed

stru

ctur

es12

970

(1 0

73)

(596

)11

301

11 1

3117

098

.5%

3 50

03

053

Mac

hine

ry a

nd e

quip

men

t81

71

073

-1

890

1 60

029

084

.7%

239

185

Total

175

847

-3

889

179

736

178

262

1 47

499

.2%

200

787

191

654

Prog

ram

me

4: V

ETER

INA

RY S

ERVI

CES

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Anim

al H

ealth

1.1

252

018

-4

588

256

606

256

016

590

99.8

%23

3 16

123

4 20

1

4.2

Expo

rt C

ontro

l8

074

-53

98

613

8 49

112

298

.6%

8 02

17

393

4.3

Vete

rinar

y Pu

blic

Hea

lth15

006

-(1

05)

14 9

0114

650

251

98.3

%14

083

13 8

12

4.4

Vete

rinar

y La

bora

tory

Ser

vice

s17

894

-(1

341

)16

553

16 1

0544

897

.3%

16 1

8115

941

Totalforsub

program

mes

292

992

-3

681

296

673

295

262

1 41

199

.5%

271

446

271

347

Econ

omicclassificatio

n

Currentpayments

275

118

-3

553

278

671

277

721

950

99.7

%26

3 56

926

3 75

0

Com


214

923

-5

009

219

932

219

723

209

99.9

%20

9 44

820

9 33

8

Sala

ries

and

wag

es18

6 16

5(5

20)

5 00

919

0 65

418

9 82

982

599

.6%

187

001

180

648

Soci

al c

ontri

butio

ns28

758

520

-29

278

29 8

94(6

16)

102.

1%22

447

28 6

90

Goo

dsand

services

60 1

95-

(1 4

56)

58 7

3957

998

741

98.7

%54

121

54 4

12



Prog

ram

me

4: V

ETER

INA

RY S

ERVI

CES

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Adm

inis

trativ

e fe

es44

7(1

62)

-28

527

411

96.1

%35

819

2

Adve

rtisi

ng51

8(1

42)

(17)

359

354

598

.6%

310

303

Min

or a

sset

s1

351

7(5

)1

353

296

1 05

721

.9%

279

167

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

410

(19)

-39

138

47

98.2

%17

214

9

Com

mun

icat

ion

73(2

2)-

5136

1570

.6%

8091

Com

pute

r ser

vice

s49

1-

5048

296

.0%

4745

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

--

--

--

-37

837

8

Labo

rato

ry s

ervi

ces

2(1

)-

1-

1-

13-

Con

tract

ors

377

(109

)(9

)25

923

425

90.3

%72

671

2

Ente

rtain

men

t10

(1)

-9

9-

100.

0%8

8

Flee

t ser

vice

s3

920

997

-4

917

4 91

43

99.9

%3

698

3 69

8

Inve

ntor

y: F

arm

ing

supp

lies

63(1

2)-

5132

1962

.7%

4516

Inve

ntor

y: F

ood

and

food

su

pplie

s-

--

--

--

--

Inve

ntor

y: F

uel,

oil a

nd g

as11

0-

-11

010

91

99.1

%97

71

Inve

ntor

y: L

earn

er a

nd te

ache

r su

ppor

t mat

eria

l3

--

3-

3-

--

Inve

ntor

y: M

ater

ials

and

sup

plie

s35

(12)

-23

185

78.3

%4

4

Inve

ntor

y: M

edic

al s

uppl

ies

1 11

8(8

13)

-30

530

14

98.7

%21

419

5

Inve

ntor

y: M

edic

ine

30 1

38(8

7)(1

100

)28

951

28 7

1723

499

.2%

26 9

0226

686

Inve

ntor

y: O

ther

sup

plie

s1

362

(518

)(1

6)82

871

910

986

.8%

1 24

11

068

Con

sum

able

sup

plie

s76

8(3

99)

(47)

322

1 34

0(1

018

)41

6.1%

450

411

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

897

(70)

(5)

822

869

(47)

105.

7%72

857

0

Ope

ratin

g le

ases

274

16-

290

191

9965

.9%

246

234

Prop

erty

pay

men

ts23

5(3

3)-

202

202

-10

0.0%

449

444

Trav

el a

nd s

ubsi

sten

ce14

926

1 98

6(5

8)16

854

16 6

2323

198

.6%

15 9

6215

886

Trai

ning

and

dev

elop

men

t16

3(1

63)

--

--

-11

7-



Prog

ram

me

4: V

ETER

INA

RY S

ERVI

CES

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Ope

ratin

g pa

ymen

ts2

702

(433

)(1

7)2

252

2 28

3(3

1)10

1.4%

1 42

22

923

Venu

es a

nd fa

cilit

ies

189

(4)

(182

)3

21

66.7

%11

610

9

Ren

tal a

nd h

iring

55(7

)-

4843

589

.6%

5952

Paym

entsfo

rcapitalassets

8 85

3-

128

8 98

18

520

461

94.9

%7

877

7 59

7

Build

ing

and

othe

r fixe

d st

ruct

ures

568

--

568

566

299

.6%

Mac

hine

ry a

nd e

quip

men

t8

285

-12

88

413

7 95

445

994

.5%

7 87

77

597

Tran

spor

t equ

ipm

ent

4 02

977

-4

106

4 02

977

98.1

%3

876

3 87

6

Oth

er m

achi

nery

and

equ

ipm

ent

4 25

6(7

7)12

84

307

3 92

538

291

.1%

4 00

13

721

Paym

ent o

f fina

ncia

l ass

ets

--

9 02

1-9

021

9 02

1-

100%

Total

292

992

-3

681

296

673

295

262

1 41

199

.5%

271

446

271

347

SUB-P

ROGRAMME4.1:A

NIMALHEA

LTH

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

236

368

-4

588

249

977

249

578

399

99.8

%22

8 03

622

9 18

9

Com

pens

atio

n of

em

ploy

ees

184

604

-5

688

190

292

190

292

-10

0.0%

181

516

181

438

Goo

ds a

nd s

ervi

ces

51 7

64-

(1 1

00)

50 6

6450

265

399

99.2

%46

520

47 7

51

Paym

entsfo

rcapitalassets

6 62

9-

-6

629

6 43

819

197

.1%

5 12

55

012

Mac

hine

ry a

nd e

quip

men

t6

629

--

6 62

96

438

191

97.1

%5

125

5 01

2

Paym

ent o

f fina

ncia

l ass

ets

-9

021

9 02

19

021

-10

0%

Total

252

018

-4

588

256

606

256

016

590

99.8

%2

33 1

6123

4 20

1



SUB-P

ROGRAMME4.2:E

XPORTCONTR

OL

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

7 79

2-

539

8 33

18

309

2299

.7%

7 47

77

039

Com

pens

atio

n of

em

ploy

ees

6 01

0-

586

6 59

66

597

(1)

100.

0%5

708

5 70

0

Goo

ds a

nd s

ervi

ces

1 78

2-

(47)

1 73

51

712

2398

.7%

1 76

91

339

Paym

entsfo

rcapitalassets

282

--

282

182

100

64.5

%54

435

4

Mac

hine

ry a

nd e

quip

men

t28

2-

-28

218

210

064

.5%

544

354

Total

8 07

4-

539

8 61

38

491

122

98.6

%8

021

7 39

3

SUB-P

ROGRAMME4.3:VET

ERINARY

PUBLICHEA

LTH

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

14 9

13-

(233

)14

680

14 4

7120

998

.6%

14 0

1813

767

Com

pens

atio

n of

em

ploy

ees

12 1

02-

7612

178

12 1

771

100.

0%11

322

11 3

21

Goo

ds a

nd s

ervi

ces

2 81

1-

(309

)2

502

2 29

420

891

.7%

2 69

62

446

Paym

entsfo

rcapitalassets

93-

128

221

179

4281

.0%

6545

Mac

hine

ry a

nd e

quip

men

t93

-12

822

117

942

81.0

%65

45

Total

15 0

06-

(105

)14

901

14 6

5025

198

.3%

14 0

8313

812



SUB-P

ROGRAMME4.4:VET

ERINARY

LABSER

VICE

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

16 0

45-

(1 3

41)

14 7

0414

384

320

97.8

%14

038

13 7

55

Com

pens

atio

n of

em

ploy

ees

12 2

07-

(1 3

41)

10 8

6610

657

209

98.1

%10

902

10 8

79

Goo

ds a

nd s

ervi

ces

3 83

8-

-3

838

3 72

711

197

.1%

3 13

62

876

Paym

entsfo

rcapitalassets

1 84

9-

-1

849

1 72

112

893

.1%

2 14

32

186

Build

ing

and

othe

r fixe

d st

ruct

ure

568

--

568

566

299

.6%

Mac

hine

ry a

nd e

quip

men

t1

281

--

1 28

11

155

126

90.2

%2

143

2 18

6

Total

17 8

94-

(1 3

41)

16 5

5316

105

448

97.3

%16

181

15 9

41

PRO

GR

AM

ME

5: R

ESEA

RC

H A

ND

TEC

HN

OLO

GY

DEV

ELO

PMEN

T

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

5.1

Res

earc

h14

6 53

1-

1 05

314

7 58

414

7 21

936

599

.8%

135

234

135

553

5.2

Tech

nolo

gy T

rans

fer S

ervi

ces

28 0

13-

(443

)27

570

27 6

54(8

4)10

0.3%

5 11

85

151

5.3

Infra

stru

ctur

e Su

ppor

t Ser

vice

1 47

8-

-1

478

1 40

870

95.3

%1

679

1 61

2

Totalforsub

program

mes

176

022

-61

017

6 63

217

6 28

135

199

.8%

142

031

142

316

Econ

omicclassificatio

n

Currentpayments

119

362

-(1

700

)11

7 66

211

9 52

6(1

864

)10

1.6%

113

315

113

400

Com


100

749

-61

010

1 35

910

1 35

72

100.

0%92

709

92 7

05

Sala

ries

and

wag

es87

121

-61

087

731

86 8

4488

799

.0%

80 0

5679

132

Soci

al c

ontri

butio

ns13

628

--

13 6

2814

513

(885

)10

6.5%

12 6

5313

573

Goo

dsand

services

18 6

13-

(2 3

10)

16 3

0318

169

(1 8

66)

111.

4%20

606

20 6

95

Adm

inis

trativ

e fe

es45

6(1

07)

-34

930

247

86.5

%21

818

4

Adve

rtisi

ng-

--

--

--

2613

Min

or a

sset

s23

54

-23

919

14(1

675

)80

0.8%

277

196

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

4546

-91

7615

83.5

%10

494



PRO

GR

AM

ME

5: R

ESEA

RC

H A

ND

TEC

HN

OLO

GY

DEV

ELO

PMEN

T

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Com

mun

icat

ion

29(9

)-

2012

860

.0%

4013

Com

pute

r ser

vice

s1

872

106

-1

978

1 82

715

192

.4%

886

291

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry s

ervi

ces

5(5

)-

--

--

60-

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

327

(10)

-31

716

515

252

.1%

431

381

Con

tract

ors

1 96

626

5(1

75)

2 05

61

846

210

89.8

%1

919

1 80

2

Ente

rtain

men

t25

(2)

-23

185

78.3

%18

14

Flee

t ser

vice

s36

4(2

5)-

339

323

1695

.3%

297

240

Inve

ntor

y: C

loth

ing

mat

eria

l and

su

pplie

s-

--

--

--

--

Inve

ntor

y: F

arm

ing

supp

lies

5 16

5(4

03)

(1 9

87)

2 77

52

128

647

76.7

%8

311

6 86

6

Inve

ntor

y: F

ood

and

food

su

pplie

s-

-

Inve

ntor

y: F

uel,

oil a

nd g

as58

0(2

9)(1

48)

403

386

1795

.8%

508

474

Inve

ntor

y: L

earn

er a

nd te

ache

r su

ppor

t mat

eria

l28

--

2828

-10

0.0%

505

Inve

ntor

y: M

ater

ials

and

sup

plie

s64

3(8

)-

635

457

178

72.0

%53

342

8

Inve

ntor

y: M

edic

al s

uppl

ies

--

Inve

ntor

y: M

edic

ine

336

--

336

275

6181

.8%

338

239

Inve

ntor

y: O

ther

sup

plie

s66

--

6657

986

.4%

2421

Con

sum

able

sup

plie

s66

9(2

8)-

641

600

4193

.6%

517

457

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

345

(30)

-31

530

411

96.5

%27

925

0

Ope

ratin

g le

ases

56-

-56

506

89.3

%69

53

Prop

erty

pay

men

ts54

1(1

56)

-38

519

918

651

.7%

491

451

Trav

el a

nd s

ubsi

sten

ce3

852

362

-4

214

6 35

2(2

138

)15

0.7%

3 90

76

725

Trai

ning

and

dev

elop

men

t-

--

--

--

--

Ope

ratin

g pa

ymen

ts46

2(1

1)-

451

401

5088

.9%

275

658



PRO

GR

AM

ME

5: R

ESEA

RC

H A

ND

TEC

HN

OLO

GY

DEV

ELO

PMEN

T

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Venu

es a

nd fa

cilit

ies

-30

-30

291

96.7

%20

910

9

Ren

tal a

nd h

iring

546

10-

556

420

136

75.5

%81

973

1


20 7

00-

-20

700

20 7

00-

100.

0%-

-

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts

20 7

00-

-20

700

20 7

00-

100.

0%-

-

Dep

artm

enta

l acc

ount

s(no

n-bu

sine

ss

entit

ies)

20 7

00-

-20

700

20 7

00-

100.

0%-

-

Paym

entsfo

rcapitalassets

35 9

60-

2 31

038

270

36 0

552

215

94.2

%28

716

28 9

16

Build

ings

and

oth

er fi

xed

stru

ctur

es2

310

--

2 31

02

304

699

.7%

7 18

78

793

Oth

er fi

xed

stru

ctur

es2

310

--

2 31

02

304

699

.7%

7 18

78

793

Mac

hine

ry a

nd e

quip

men

t2

950

2832

33

301

2 96

433

789

.8%

6 11

84

885

Tran

spor

t equ

ipm

ent

703

--

703

700

399

.6%

449

448

Oth

er m

achi

nery

and

equ

ipm

ent

2 24

728

323

2 59

82

264

334

87.1

%5

669

4 43

7

Biol

ogic

al a

sset

s30

700

(28)

1 98

732

659

30 7

8718

7294

.3%

15 4

1115

238

Total

176

022

-61

017

6 63

217

6 28

135

199

.8%

142

031

142

316

SUB-P

ROGRAMME5.1:RES

EARCH

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

110

583

-(1

257

)10

9 32

611

1 14

0(1

814

)10

1.7%

106

857

106

919

Com

pens

atio

n of

em

ploy

ees

95 7

88-

1 05

396

841

96 8

401

100.

0%88

072

88 0

68

Goo

ds a

nd s

ervi

ces

14 7

95-

(2 3

10)

12 4

8514

300

(1 8

15)

114.

5%18

785

18 8

51

Paym

entsfo

rcapitalassets

35 9

48-

2 31

038

258

36 0

792

179

94.3

%28

377

28 6

34

Build

ings

and

fixe

d st

ruct

ures

2 31

0-

-2

310

2 30

46

99.7

%7

187

8 79

3

Mac

hine

ry a

nd e

quip

men

t2

938

2832

33

289

2 98

830

190

.8%

5 77

94

603

Biol

ogic

al a

sset

s30

700

(28)

1 98

732

659

30 7

871

872

94.3

%15

411

15 2

38

Total

146

531

-1

053

147

584

147

219

365

99.8

%13

5 23

413

5 55

3



SUB-P

ROGRAMME5.2:TEC

HNOLO

GYTR

ANSF

ERSER

VICES

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

7 30

1-

(443

)6

858

6 94

2(8

4)10

1.2%

5 03

85

098

Com

pens

atio

n of

em

ploy

ees

4 96

1-

(443

)4

518

4 51

71

100.

0%4

637

4 63

7

Goo

ds a

nd s

ervi

ces

2 34

0-

-2

340

2 42

5(8

5)10

3.6%

401

461


20 7

00-

-20

700

20 7

00-

100.

0%-

-

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts20

700

--

20 7

0020

700

-10

0.0%

--

Paym

entsfo

rcapitalassets

12-

-12

12-

100.

0%80

53

Mac

hine

ry a

nd e

quip

men

t12

--

1212

-10

0.0%

8053

Total

28 0

13-

(443

)27

570

27 6

54(8

4)10

0.3%

5 11

85

151

SUB-P

ROGRAMME5.3:IN

FRAST

RUCTU

RESU

PPORTSE

RVICES

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

1 47

8-

-1

478

1 44

434

97.7

%1

420

1 38

3

Com

pens

atio

n of

em

ploy

ees

--

--

--

--

-

Goo

ds a

nd s

ervi

ces

1 47

8-

-1

478

1 44

434

97.7

%1

420

1 38

3

Paym

entsfo

rcapitalassets

--

--

(36)

36-

259

229

Mac

hine

ry a

nd e

quip

men

t-

--

-(3

6)36

-25

922

9

Total

1 47

8-

-1

478

1 40

870

95.3

%1

679

1 61

2



PRO

GR

AM

ME

6: A

GR

ICU

LTU

RA

L EC

ON

OM

ICS

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

6.1

Agri-

busi

ness

Dev

elop

men

t &

Supp

ort

8 42

0-

766

9 18

69

093

9399

.0%

30 5

6327

476

6.2

Mac

ro-E

cono

mic

s an

d St

atis

tics

26 1

42-

(759

)25

383

24 7

4663

797

.5%

25 0

9024

980

Totalforsub

program

mes

34 5

62-

734

569

33 8

3973

097

.9%

55 6

5352

456

Econ

omicclassificatio

n

Currentpayments

29 2

89-

729

296

28 6

2367

397

.7%

39 1

9036

413

Com


25 3

08-

725

315

24 5

2678

996

.9%

24 2

5124

134

Sala

ries

and

wag

es21

757

361

722

125

21 3

9073

596

.7%

21 4

1221

132

Soci

al c

ontri

butio

ns3

551

(361

)-

3 19

03

136

5498

.3%

2 83

93

002

Goo

dsand

services

3 98

1-

-3

981

4 09

7(1

16)

102.

9%14

939

12 2

79

Adm

inis

trativ

e fe

es11

5(6

2)-

5352

198

.1%

3734

Adve

rtisi

ng10

1(1

01)

--

--

-28

86

Min

or a

sset

s12

9(1

16)

-13

121

92.3

%14

912

6

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

109

(60)

-49

472

95.9

%93

72

Com

pute

r ser

vice

s19

5-

-19

519

41

99.5

%18

418

3

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

24(7

)-

1717

-10

0.0%

4 34

53

830

Con

tract

ors

30-

-30

291

96.7

%30

-

Ente

rtain

men

t6

--

66

-10

0.0%

62

Flee

t ser

vice

s16

71

031

-1

198

1 19

8-

100.

0%15

815

8

Inve

ntor

y: F

arm

ing

supp

lies

--

--

--

--

-

Inve

ntor

y: F

ood

and

food

su

pplie

s5

(5)

--

--

-5

3

Inve

ntor

y: M

ater

ials

and

sup

plie

s-

--

--

--

-4

312

Con

sum

able

sup

plie

s13

2(5

0)-

8237

4545

.1%

6 84

541

2

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

228

(114

)-

114

114

-10

0.0%

142

132

Prop

erty

pay

men

ts-

-



PRO

GR

AM

ME

6: A

GR

ICU

LTU

RA

L EC

ON

OM

ICS

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Trav

el a

nd s

ubsi

sten

ce2

451

(397

)-

2 05

42

228

(174

)10

8.5%

2 51

72

523

Ope

ratin

g pa

ymen

ts19

4(3

4)-

160

153

795

.6%

259

265

Venu

es a

nd fa

cilit

ies

95(8

5)-

1010

-10

0.0%

141

141

Ren

tal a

nd h

iring

--

--

--

--

-


4 81

8-

-4

818

4 81

44

99.9

%13

572

13 5

72

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts4

818

--

4 81

84

814

499

.9%

13 5

7213

572

Dep

artm

enta

l age

ncie

s4

818

--

4 81

84

814

499

.9%

13 5

7213

572

Paym

entsfo

rcapitalassets

455

--

455

402

5388

.4%

2 89

12

471

Build

ing

and

othe

r fixt

ures

--

--

--

-2

298

1 82

2

Mac

hine

ry a

nd e

quip

men

t45

5-

-45

540

253

88.4

%59

364

9

Tran

spor

t equ

ipm

ent

44-

-44

44-

100.

0%11

011

0

Oth

er m

achi

nery

and

equ

ipm

ent

411

--

411

358

5387

.1%

483

539

Total

34 5

62-

734

569

33 8

3973

097

.9%

55 6

5352

456

SUB-P

ROGRAMME6.1:AGRI-B

USINES

SDEV

ELOPM

ENTANDSUPP

ORT

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

3 37

5-

766

4 14

14

079

6298

.5%

14 3

2311

645

Com

pens

atio

n of

em

ploy

ees

2 73

4-

199

2 93

32

882

5198

.3%

2 97

22

930

Goo

ds a

nd s

ervi

ces

641

-56

71

208

1 19

711

99.1

%11

351

8 71

5


4 81

8-

-4

818

4 81

44

99.9

%13

572

13 5

72

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts4

818

--

4 81

84

814

499

.9%

13 5

7213

572

Paym

entsfo

rcapitalassets

227

--

227

200

2788

.1%

2 66

82

259

Build

ing

and

othe

r fixt

ures

2 29

81

822

Mac

hine

ry a

nd e

quip

men

t22

7-

-22

720

027

88.1

%37

043

7

Total

8 42

0-

766

9 18

69

093

9399

.0%

30 5

6327

476



SUB-P

ROGRAMME6.2:MACRO-ECONOMICSANDSTA

TIST

ICS

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

25 9

14-

(759

)25

155

24 5

4461

197

.6%

24 8

6724

768

Com

pens

atio

n of

em

ploy

ees

22 5

74-

(192

)22

382

21 6

4473

896

.7%

21 2

7921

204

Goo

ds a

nd s

ervi

ces

3 34

0-

(567

)2

773

2 90

0(1

27)

104.

6%3

588

3 56

4

Paym

entsfo

rcapitalassets

228

--

228

202

2688

.6%

223

212

Mac

hine

ry a

nd e

quip

men

t22

8-

-22

820

226

88.6

%22

321

2

Total

26 1

42-

(759

)25

383

24 7

4663

797

.5%

25 0

9024

980

PRO

GR

AM

ME

7: S

TRU

CTU

RED

AG

RIC

UTU

RA

L TR

AIN

ING

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

7.1

Hig

her e

duca

tion

and

Trai

ning

47 4

64-

-47

464

47 4

64-

100.

0%43

875

43 8

75

7.2

Furth

er E

duca

tion

and

Trai

ning

100

760

-(5

255

)95

505

94 0

751

430

98.5

%94

315

88 8

68

Totalforsub

program

mes

148

224

-(5

255

)14

2 96

914

1 53

91

430

99.0

%13

8 19

013

2 74

3

Econ

omicclassificatio

n

Currentpayments

83 8

18-

(7 4

55)

76 3

6375

719

644

99.2

%77

345

74 9

67

Com


58 4

00-

(1 4

84)

56 9

1656

389

527

99.1

%53

908

53 9

08

Sala

ries

and

wag

es49

902

-(6

10)

49 2

9248

274

1 01

897

.9%

49 0

9446

003

Soci

al c

ontri

butio

ns8

498

-(8

74)

7 62

48

115

(491

)10

6.4%

4 81

47

905

Goo

dsand

services

25 4

18-

(5 9

71)

19 4

4719

330

117

99.4

%23

437

21 0

59

Adm

inis

trativ

e fe

es36

(2)

-34

277

79.8

%4

2

Adve

rtisi

ng3

(3)

--

--

-3

-

Min

or a

sset

s14

75-

8978

1187

.9%

472

365

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

2 47

432

522

93

028

2 89

213

695

.5%

1 46

01

324

Com

mun

icat

ion

36(3

)-

3316

1748

.5%

39-



PRO

GR

AM

ME

7: S

TRU

CTU

RED

AG

RIC

UTU

RA

L TR

AIN

ING

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Com

pute

r ser

vice

s-

--

--

--

--

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry s

ervi

ces

--

--

--

--

-

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

--

--

--

-89

411

9

Con

tract

ors

3 40

755

(2 2

00)

1 26

21

130

132

89.5

%28

340

Agen

cy a

nd s

uppo

rt / o

utso

urce

d se

rvic

es-

--

--

--

--

Ente

rtain

men

t11

(2)

-9

9-

100.

0%11

11

Flee

t ser

vice

s1

540

--

1 54

01

540

(0)

100.

0%1

532

1 45

3

Inve

ntor

y: F

arm

ing

supp

lies

865

2 69

5-

3 56

03

387

173

95.1

%7

179

5 52

5

Inve

ntor

y: F

ood

and

food

su

pplie

s60

(5)

-55

469

83.6

%76

76

Inve

ntor

y: F

uel,

oil a

nd g

as25

(25)

--

--

--

-

Inve

ntor

y: L

earn

er a

nd te

ache

r su

ppor

t mat

eria

l-

--

--

--

--

Inve

ntor

y: M

ater

ials

and

sup

plie

s16

5-

2121

-10

0.0%

6-

Inve

ntor

y: M

edic

al s

uppl

ies

10-

-10

91

90.0

%-

-

Inve

ntor

y: M

edic

ine

57(1

)-

5654

296

.4%

4012

Inve

ntor

y: O

ther

sup

plie

s27

01

-27

125

912

95.6

%-

-

Con

sum

able

sup

plie

s14

116

3-

304

300

498

.7%

105

22

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

9811

-10

978

3171

.6%

173

106

Ope

ratin

g le

ases

358

(10)

-34

829

652

85.1

%22

419

8

Prop

erty

pay

men

ts87

--

8786

198

.9%

524

520

Trav

el a

nd s

ubsi

sten

ce1

879

(283

)-

1 59

62

019

(423

)12

6.5%

2 15

32

540

Trai

ning

and

dev

elop

men

t13

790

(2 8

32)

(4 0

00)

6 95

86

887

7199

.0%

7 36

77

007

Ope

ratin

g pa

ymen

ts23

2(1

59)

-73

192

(119

)26

3.0%

167

459

Venu

es a

nd fa

cilit

ies

--

--

--

--

-



PRO

GR

AM

ME

7: S

TRU

CTU

RED

AG

RIC

UTU

RA

L TR

AIN

ING

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Ren

tal a

nd h

iring

10(5

)-

54

188

.9%

980

980


47 4

64-

-47

464

47 4

64-

100.

0%43

875

43 8

75

Non

-pro

fit in

stitu

tions

47 4

64-

-47

464

47 4

64-

100.

0%43

875

43 8

75

Paym

entsfo

rcapitalassets

16 9

42-

2 20

019

142

18 3

5678

695

.9%

16 9

7013

901

Build

ings

and

oth

er fi

xed

stru

ctur

es13

444

(2 0

49)

2 20

013

595

13 4

7512

099

.1%

10 5

728

814

Oth

er fi

xed

stru

ctur

es13

444

(2 0

49)

2 20

013

595

13 4

7512

099

.1%

10 5

728

814

Mac

hine

ry a

nd e

quip

men

t3

498

2 04

9-

5 54

74

881

666

88.0

%6

398

5 08

7

Tran

spor

t equ

ipm

ent

2 17

8-

-2

178

2 17

8-

100.

0%2

026

2 02

6

Oth

er m

achi

nery

and

equ

ipm

ent

1 32

02

049

-3

369

2 70

366

680

.2%

4 37

23

061

Total

148

224

-(5

255

)14

2 96

914

1 53

91

430

99.0

%13

8 19

013

2 74

3

SUB-P

ROGRAMME7.1:HIGHER

EDUCAT

IONANDTRAINING

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000


47 4

6447

464

47 4

64-

100.

0%43

875

43 8

75

Non

-pro

fit in

stitu

tions

47 4

6447

464

47 4

64-

100.

0%43

875

43 8

75

Total

47 4

6447

464

47 4

64-

100.

0%43

875

43 8

75



SUB-P

ROGRAMME7.2:FURTH

EREDUCAT

IONANDTRAINING

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

83 8

18-

(7 4

55)

76 3

6375

719

644

99.2

%77

345

74 9

67

Com

pens

atio

n of

em

ploy

ees

58 4

00-

(1 4

84)

56 9

1656

389

527

99.1

%53

908

53 9

08

Goo

ds a

nd s

ervi

ces

25 4

18-

(5 9

71)

19 4

4719

330

117

99.4

%23

437

21 0

59

Paym

entsfo

rcapitalassets

16 9

42-

2 20

019

142

18 3

5678

695

.9%

16 9

7013

901

Build

ings

and

oth

er fi

xed

stru

ctur

es13

444

(2 0

49)

2 20

013

595

13 4

7512

099

.1%

10 5

728

814

Mac

hine

ry a

nd e

quip

men

t3

498

2 04

9-

5 54

74

881

666

88.0

%6

398

5 08

7

Total

100

760

-(5

255

)95

505

94 0

751

430

98.5

%94

315

88 8

68

PRO

GR

AM

ME

8: R

UR

AL

DEV

ELO

PMEN

T

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

8.1

Dev

elop

men

t Pla

nnin

g an

d M

onito

ring

156

204

--

156

204

156

203

110

0.0%

140

001

140

001

8.2

Soci

al F

acilit

atio

n25

849

-14

325

992

25 9

1874

99.7

%22

340

22 1

64

Totalforsub

program

mes

182

053

-14

318

2 19

618

2 12

175

100.

0%16

2 34

116

2 16

5

Econ

omicclassificatio

n

Currentpayments

20 6

74-

173

20 8

4720

780

6799

.7%

21 0

9021

416

Com


15 3

18-

173

15 4

9115

490

110

0.0%

15 2

2115

211

Sala

ries

and

wag

es13

954

1417

314

141

14 0

5982

99.4

%14

724

13 9

15

Soci

al c

ontri

butio

ns1

364

(14)

-1

350

1 43

1(8

1)10

6.0%

497

1 29

6

Goo

dsand

services

5 35

6-

-5

356

5 29

066

98.8

%5

869

6 20

5

Adm

inis

trativ

e fe

es31

--

31-

31-

1212

Adve

rtisi

ng3

(1)

-2

11

50.0

%2

-

Min

or a

sset

s55

(55)

--

--

-2

023

8



PRO

GR

AM

ME

8: R

UR

AL

DEV

ELO

PMEN

T

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Audi

t cos

ts: E

xter

nal

6767

Cat

erin

g: D

epar

tmen

tal a

ctiv

ities

9615

-11

111

1-

100.

0%17

714

7

Com

mun

icat

ion

1-

-1

-1

-1

-

Com

pute

r ser

vice

s-

-

Con

sulta

nts:

Bus

ines

s an

d ad

viso

ry s

ervi

ces

21-

Infra

stru

ctur

e an

d pl

anni

ng

serv

ices

191

190

Lega

l ser

vice

s-

-

Con

tract

ors

1 00

2(1

02)

-90

088

515

98.3

%38

031

6

Ente

rtain

men

t19

(2)

-17

17-

100.

0%14

4

Flee

t ser

vice

s-

212

-21

221

2-

100.

0%-

-

Inve

ntor

y: F

arm

ing

supp

lies

454

381

Inve

ntor

y: M

ater

ial a

nd s

uppl

ies

780

(171

)-

609

628

(19)

103.

1%31

331

3

Inve

ntor

y: O

ther

sup

plie

s1

167

169

-1

336

1 33

6-

100.

0%

Con

sum

able

sup

plie

s60

4(5

9)-

545

545

-10

0.0%

451

425

Con

sum

able

: Sta

tione

ry, p

rintin

g an

d of

fice

supp

lies

196

(13)

-18

317

85

97.3

%95

2 55

2

Ope

ratin

g le

ases

1-

-1

1-

100.

0%-

-

Prop

erty

pay

men

ts46

0(2

0)-

440

440

-10

0.0%

473

380

Trav

el a

nd s

ubsi

sten

ce86

237

-89

988

415

98.3

%91

61

064

Trai

ning

and

dev

elop

men

t26

3-

2929

-10

0.0%

5455

Ope

ratin

g pa

ymen

ts12

(2)

-10

-10

--

75

Venu

es a

nd fa

cilit

ies

30-

-30

237

76.7

%43

69

Ren

tal a

nd h

iring

11(1

1)-

--

--

182

147


160

725

--

160

725

160

703

2210

0.0%

140

001

140

001

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts

1

57

725

-

-

157

725

157

703

2210

0.0%

140

001

140

001



PRO

GR

AM

ME

8: R

UR

AL

DEV

ELO

PMEN

T

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

Non

-pro

fit in

stitu

tions

3 00

0-

-3

000

3 00

0-

100.

0%

Paym

entsfo

rcapitalassets

654

-(3

0)62

463

8(1

4)10

2.2%

1 25

074

8

Mac

hine

ry a

nd e

quip

men

t65

4-

(30)

624

638

(14)

102.

2%1

250

748

Tran

spor

t equ

ipm

ent

-22

8-

228

223

597

.8%

Oth

er m

achi

nery

and

equ

ipm

ent

654

(228

)(3

0)39

641

5(1

9)10

4.8%

1 25

074

8

Total

182

053

-14

318

2 19

618

2 12

175

100.

0%16

2 34

116

2 16

5

SUB-P

ROGRAMME8.1:DEV

ELOPM

ENTPL

ANNINGANDMONITORING

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000


156

204

--

156

204

156

203

110

0.0%

140

001

140

001

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts15

5 20

4-

-15

5 20

415

5 20

31

100.

0%14

0 00

114

0 00

1

Non

-pro

fit in

stitu

tions

1 00

01

000

1 00

0-

100.

0%

Total

156

204

--

156

204

156

203

110

0.0%

140

001

140

001



SUB-P

ROGRAMME8.2:SOCIALFA

CILITAT

ION

2016

/17

2015

/16

Adjusted

App

ropriatio

nSh

iftingof

Fund

sVirement

Final

App

ropriatio

nActual

Expend

iture

Varia

nce

Expend

iture

as%offi

nal

approp

riatio

n

Final

App

ropriatio

nActual

expend

iture

Econ

omicclassificatio

nR

’000

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00R

’000

Currentpayments

20 6

74-

173

20 8

4720

780

6799

.7%

21 0

9021

416

Com

pens

atio

n of

em

ploy

ees

15 3

18-

173

15 4

9115

490

110

0.0%

15 2

2115

211

Goo

ds a

nd s

ervi

ces

5 35

6-

-5

356

5 29

066

98.8

%5

869

6 20

5


4 52

1-

-4

521

4 50

021

99.5

%

Dep

artm

enta

l age

ncie

s an

d ac

coun

ts2

521

--

2 52

12

500

2199

.2%

Non

-pro

fit in

stitu

tions

2 00

02

000

2 00

0-

100.

0%

Paym

entsfo

rcapitalassets

654

-(3

0)62

463

8(1

4)10

2.2%

1 25

074

8

Mac

hine

ry a

nd e

quip

men

t65

4-

(30)

624

638

(14)

102.

2%1

250

748

Total

25 8

49-

143

25 9

9225

918

7499

.7%

22 3

4022

164



1. DetailoftransfersandsubsidiesasperAppropriationAct(afterVirement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-E) to the Annual Financial Statements.

2. Detailofspecificallyandexclusivelyappropriatedamountsvoted(afterVirement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

3. Detailonpaymentsforfinancialassets

Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual Financial Statements.

4. Materialvariances

An explanation will be provided for all variances above the threshold of R1 million. All variances below R1 million will be considered immaterial.

5. ExplanationsofmaterialvariancesfromAmountsVoted(afterVirement):

5.1 Perprogramme

FinalAppropriation

R’000

ActualExpenditure

R’000

VarianceR’000R’000

Varianceasa%ofFinalAppropriation

Administration 455 596 435 427 20 169 4.4%Sustainable Resource Management 115 211 114 516 695 0.6%

Farmer Support and Development 811 276 805 544 5 732 0.7%

Veterinary Services 296 673 295 262 1 411 0.5%Research and Technology 176 632 176 281 351 0.2%Agricultural Economics Services 34 569 33 839 730 2.1%

Structure Education and Training 142 969 141 539 1 430 1.0%

Rural Development 182 196 182 121 75 0.0%Totals 2 215 122 2 184 529 30 593 1.4%


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017

Explanationsforvariances:

Programme1:R20.1million1)

The under expenditure in this programme relates to funds that were meant to clear prior year un-•

surrendered funds. However, there were technical challenges in the treatment of the transaction.

Programme3:R5.732million2)

The under expenditure reflected above is made up of R1.254 million for Compensation of Employees, R1.134 million for Goods & Services and R3.344 million on Capital.

CompensationofEmployees:• The under expenditure recorded emanates from staff attrition as well as delays in the filling of vacant posts owing to re-prioritisation of posts as the department only relied on attritions to feel critical posts

GoodsandServices:• The under expenditure resulted from delays in the submission of invoices for casual labourers responsible for fencing projects in Amathole District.

In Joe Gqabi, an arrangement for farmers to procure production inputs and supported by the department with mechanisation did not materialise. The farmers failed to honour the agreement which resulted in the department in being unable to provide mechanisation.

A roll over amounting to R419 000 has been requested.

Capital:• The under expenditure in this item is as a result of the late delivery of farming equipment (tractors and implements) and retentions for infrastructure projects. A roll over amounting to R3,2 million has been requested, this amount relates to CASP conditional grant.

2) Programme4:R1.411million

Earlier in the financial year, the contracted suppliers of animal medicine ran out of stock. They could not supply the department with medicine as planned. This resulted in a backlog for the procurement of medicine which the department could not catch up with. In addition, there were delays in the delivery of suitable laboratory equipment in time.

3) Programme7:R1.430million

The under expenditure reflected above is made up of R527 000 on Compensation of Employees and R786 000 on Capital.

CompensationofEmployees:• The under expenditure recorded emanates from staff attrition as well as delays in the filling of vacant posts owing to re-prioritisation of posts as the department only relied on attritions to feel critical posts.

Capitalunderexpenditure:• The underspending from this item emanates from delays in payment for Mpofu Training College bakery equipment that was delivered by the service provider not in accordance to the specification. There were also savings realised from purchasing of equipment at less than the estimated cost due to the discounts negotiated.


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017

5.2 PerEconomicClassification

FinalAppropriation

R’000

ActualExpenditure

R’000

VarianceR’000


R’000CurrentpaymentsCompensation of employees 1 115 071 1 112 748 2 323 0.2%Goods and services 556 743 556 760 (17) 0.0%Interest and rent on land - 53 -53 -

TransfersandsubsidiesDepartmental agencies and accounts 197 793 197 767 26 0.0%

Non-profit institutions 54 071 54 071 - 0.0%Households 27 377 26 532 845 3.1%

PaymentsforcapitalassetsBuildings and other fixed structures 124 147 122 781 1 366 1.1%

Machinery and equipment 78 240 74 009 4 231 5.4%Biological assets 32 659 30 787 1 872 5.7%

Paymentsforfinancialassets 29 021 9 021 20 000 68.9%

5.3 ConditionalGrants

FinalAppropriation

R’000

ActualExpenditure

R’000

VarianceR’000


R’000Comprehensive Agricultural Support Grant 276 803 273 941 2 862 1.0%

Ilima/ Letsema 64 335 63 580 755 1.2%Land Care 10 632 10 621 11 0.1%Extended Public Works Programme 2 000 2 000 - -

The under expenditure from CASP is mainly as a result of the late delivery of farming equipment and retentions for infrastructure projects.


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017NOTES TO THE APPROPRIATION STATEMENT FOR THE YEAR ENDED 31 MARCH 2017

Note 2016/17 2015/16R’000 R’000

REVENUE

Annual appropriation 1 2 213 083 1 980 776Statutory appropriation 2 2 039 1 906Departmental revenue 3 19 575 699

TOTAL REVENUE 2 234 697 1 983 381

EXPENDITURE

CurrentexpenditureCompensation of employees 4 1 112 748 1 055 869Goods and services 5 556 760 508 571Interest paid 6 53 590Totalcurrentexpenditure 1 669 561 1 565 030

TransfersandsubsidiesTransfers and subsidies 8 278 370 221 232

Totaltransfersandsubsidies 278 370 221 232

ExpenditureforcapitalassetsTangible assets 9 227 577 151 342Intangible asset - 3 000Totalexpenditureforcapitalassets 227 577 154 342

Unauthorised expenditure approved without funding 10 - 27 461Paymentoffinancialassets 7 9 021 -

TOTAL EXPENDITURE 2 184 529 1 968 065

SURPLUS/(DEFICIT) FOR THE YEAR 50 168 15 316

ReconciliationofNetSurplus/(Deficit)fortheyearVoted funds 30 593 14 617

Annual appropriation 26 965 2 013Conditional grants 34 3 628 12 604

Departmental revenue and NRF Receipts 3 19 575 699SURPLUS/(DEFICIT) FOR THE YEAR 50 168 15 316


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017STATEMENT OF FINANCIAL PERFORMANCE FOR THE YEAR ENDED 31 MARCH 2017

Note 2016/17 2015/16R’000 R’000

ASSETS

Currentassets 34 718 25 219Cash and cash equivalents 11 33 614 18 737Receivables 12 1 104 6 482

Non-currentassets 4 655 13 676

Receivables 12 4 655 13 676

TOTAL ASSETS 39 373 38 895

LIABILITIES

Currentliabilities 39 373 38 895Voted funds to be surrendered to the Revenue Fund 13 30 593 36 481Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund 14 279 485

Payables 15 8 501 1 929

TOTAL LIABILITIES 39 373 38 895

NET ASSETS - -


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2017

Note 2016/17 2015/16R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 2 243 238 1 991 507Annual appropriated funds received 1.1 2 213 083 1 980 776Statutory appropriated funds received 2 2 039 1 906Departmental revenue received 3 28 114 8 826Interest received 3.3 2 (1)

Net (increase)/decrease in working capital 20 971 23 722Surrendered to Revenue Fund (65 847) (47 440)Current payments (1 669 508) (1 591 901)Interest paid 6 (53) (590)Payment of financial assets 7 (9 021) -Transfers and subsidies paid 8 (278 370) (221 232)Netcashflowavailablefromoperatingactivities 16 241 410 154 066

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 9 (227 577) (154 342)Proceeds from sale of capital assets 3.4 1 044 924Netcashflowsfrominvestingactivities (226 533) (153 418)

CASH FLOWS FROM FINANCING ACTIVITIESNetcashflowsfromfinancingactivities - -

Net increase/(decrease) in cash and cash equivalents 14 877 648

Cash and cash equivalents at beginning of period 18 737 18 089

Cashandcashequivalentsatendofperiod 17 33 614 18 737


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017CASH FLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2017

SummaryofsignificantaccountingpoliciesThe 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 BasisofpreparationThe financial statements have been prepared in accordance with the Modified Cash Standard.

2 GoingconcernThe financial statements have been prepared on a going concern basis.

3 PresentationcurrencyAmounts have been presented in the currency of the South African Rand (R) which is also the functional currency of the department.

4 RoundingUnless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).

5 ForeigncurrencytranslationCash flows arising from foreign currency transactions are translated into South African Rands using the spot exchange rates prevailing at the date of payment / receipt.

6 Comparativeinformation6.1 Priorperiodcomparativeinformation

Prior period comparative information has been presented in the current year’s financial statements. Where necessary figures included in the prior period financial statements have been reclassified to ensure that the format in which the information is presented is consistent with the format of the current year’s financial statements.

6.2 CurrentyearcomparisonwithbudgetA comparison between the approved, final budget and actual amounts for each programme and economic classification is included in the appropriation statement.

7 Revenue7.1 Appropriatedfunds

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 the Provincial revenue fund at the reporting date is recognised as a payable/receivable in the statement of financial position.

7.2 DepartmentalrevenueDepartmental 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.


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2017

7.3 AccrueddepartmentalrevenueAccruals 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; andThe 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.Write-offs are made according to the department’s debt write-off policy

8 Expenditure8.1 Compensationofemployees

8.1.1 SalariesandwagesSalaries and wages are recognised in the statement of financial performance on the date of payment.

8.1.2 SocialcontributionsSocial 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 OtherexpenditureOther 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 AccrualsandpayablesnotrecognisedAccruals and payables not recognised are 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 or in the case of transfers and subsidies when they are due and payable.Accruals and payables not recognised are measured at cost.

8.4 Leases8.4.1 Operatingleases

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.

8.4.2 FinanceleasesFinance 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 CashandcashequivalentsCash 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 as current liability.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.

10 LoansandreceivablesLoans 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.


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2017

11.1 Financialassets(notcoveredelsewhere)A financial asset is recognised initially at its cost plus transaction costs that are directly attributable to the acquisition or issue of the financial.At the reporting date, a department shall measure its financial assets at cost, less amounts already settled or written-off, except for recognised loans and receivables, which are measured at cost plus accrued interest, where interest is charged, less amounts already settled or written-off.

11.2 ImpairmentoffinancialassetsWhere 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.

12 PayablesLoans and payables are recognised in the statement of financial position at cost.

13 CapitalAssets13.1 Immovablecapitalassets

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 reliably, the immovable capital assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the fair value is used.All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the immovable asset is recorded by another department in which case the completed project costs are transferred to that department.

13.2 MovablecapitalassetsMovable 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 reliably, the movable capital assets are measured at fair value and where fair value cannot be determined; the movable assets are measured at R1.All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.Biological assets are subsequently carried at fair value.Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the movable asset is recorded by another department/entity in which case the completed project costs are transferred to that department.

13.3 IntangibleassetsIntangible 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 reliably, the intangible capital assets are measured at fair value and where fair value cannot be determined; the intangible assets are measured at R1.All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) may be recorded at R1.Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital project unless the intangible asset is recorded by another department/entity in which case the completed project costs are transferred to that department.



14 ProvisionsandContingents14.1 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.

14.2 ContingentliabilitiesContingent 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

14.3 ContingentassetsContingent 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

14.4 CommitmentsCommitments 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

15 UnauthorisedexpenditureUnauthorised expenditure is recognised in the statement of financial position until such time as the expenditure is either:

approved by the Provincial Legislature with funding and the related funds are received; or•

approved by the Provincial Legislature without funding and is written off against the appropriation in the •statement of financial performance; orTransferred to receivables for recovery.•

Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.16 Fruitlessandwastefulexpenditure

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.

17 IrregularexpenditureIrregular expenditure is recorded in the notes to the financial statements when confirmed. The amount recorded is equal to the value of the irregular expenditure incurred unless it is impracticable to determine, in which case reasons therefor are provided in the note.Irregular expenditure is removed from the note when it is either condoned by the relevant authority, transferred to receivables for recovery if not condoned and is not condoned and not recoverable.Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017ACCOUNTING POLICIES FOR THE YEAR ENDED 31 MARCH 2017

18 Changesinaccountingpolicies,accountingestimatesanderrorsChanges in accounting policies that are effected by management have been applied retrospectively in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the change in policy. In such instances the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.Changes in accounting estimates are applied prospectively in accordance with MCS requirements.Correction of errors is applied retrospectively in the period in which the error has occurred in accordance with MCS requirements, except to the extent that it is impracticable to determine the period-specific effects or the cumulative effect of the error. In such cases the department shall restate the opening balances of assets, liabilities and net assets for the earliest period for which retrospective restatement is practicable.

19 RecoverablerevenueAmounts are recognised as recoverable revenue when a payment made in a previous financial year becomes recoverable from a debtor in the current financial year. Amounts are either transferred to the Provincial Revenue Fund when recovered or are transferred to the statement of financial performance when written-off.

20 RelatedpartytransactionsA related party transaction is a transfer of resources, services or obligations between the reporting entity and a related party. Related party transactions within the Minister’s portfolio are recorded in the notes to the financial statements when the transaction is not at arm’s length.

21 InventoriesAt the date of acquisition, inventories are recorded at cost price in the annexures to the financial statementsWhere inventories are acquired as part of a non-exchange transaction, the cost of inventory is its fair value at the date of acquisition.Inventories are subsequently measured at the lower of cost and net realisable value or the lower of cost and replacement value.

22 KeymanagementpersonnelKey management personnel are those persons having the authority and responsibility for planning, directing and controlling the activities of the department. The number of individuals and their full compensation is recorded in the notes to the financial statements.

23 EmployeebenefitsThe value of each major class of employee benefit obligation (accruals, payables not recognised and provisions) is disclosed in the Employee benefits note.

24 EventsafterthereportingdateEvents after the reporting date that are classified as adjusting events have been accounted for in the financial statements. The events after the reporting date that are classified as non-adjusting events after the reporting date have been disclosed in the notes to the financial statements.



1. AnnualAppropriation

1.1 AnnualAppropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for National Departments (Voted funds) and Provincial Departments:

2016/17 2015/16

Final Appropriation

R’000

ActualFunds Received

R’000

Fundsnot requested/not

receivedR’000

Appropriationreceived

R’000

Administration 453 557 453 557 - 425 503

Sustainable Resource Mgt. 115 211 115 211 - 124 922

Farmer Support & Development 811 276 811 276 - 660 690

Veterinary Services 296 673 296 673 - 271 446

Research & Technology 176 632 176 632 - 142 031

Agricultural Economics Service 34 569 34 569 - 55 653

Structured Agricultural Education & Training 142 969 142 969 - 138 190

Rural Development Coordination

182 196 182 196 - 162 341

Total 2 213 083 2 213 083 - 1 980 776

1.2 Conditionalgrants

Note 2016/17 2015/16R’000 R’000

Total grants received 34 353 770 324 294

2. StatutoryAppropriation

2016/17 2015/16R’000 R’000

Members’ remuneration 2 039 1 906Total 2 039 1 906

Actual Statutory Appropriation received 2 039 1 906


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

3.DepartmentalRevenue

Note 2016/17 2015/16R’000 R’000

Sales of goods and services other than capital assets 3.1 4 427 3 514Fines, penalties and forfeits 3.2 6 3Interest, dividends and rent on land 3.3 2 (1)Sales of capital assets 3.4 1 044 924Transactions in financial assets and liabilities 3.5 1 134 5 309Transfer received 3.6 22 547 0Total revenue collected 29 160 9 749Less: Own revenue included in appropriation 14 (9 585) (9 050)Departmentalrevenuecollected 19 575 699

3.1 Salesofgoodsandservicesotherthancapitalassets

Note 2016/17 2015/163 R’000 R’000

Sales of goods and services produced by the department 4 307 3 403

Sales by market establishment 726 499Administration fees 38 30Other Sales 3 543 2 874Sales of scrap, waste and other used current goods 120 111Total 4 427 3 514

3.2 Fines,penaltiesandforfeits

Note 2016/17 2015/163 R’000 R’000

Fines 6 3Total 6 3

3.3 Interest,dividendsandrentonland

Note 2016/17 2015/163 R’000 R’000

Interest 2 (1)Total 2 (1)

3.4 Saleofcapitalassets

Note 2016/17 2015/163 R’000 R’000

Tangibleassets 1 044 924Biological assets 30.2 994 901Machinery and equipment 50 23

Total 1 044 924


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017NOTES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

3.5Transactionsinfinancialassetsandliabilities

Note 2016/17 2015/163 R’000 R’000

Receivables 431 -Other Receipts including Recoverable Revenue 703 5 309Total 1 134 5 309

3.6 Transfersreceived

Note 2016/17 2015/163 R’000 R’000

Other governmental units 22 547 -Total 22 547 -

The departmental entity surrendered funds to Treasury through the department during the financial year under review.

4. Compensationofemployees

4.1. SalariesandWages

2016/17 2015/16R’000 R’000

Basic salary 775 772 734 707Performance award 16 911 14 779Service Based 2 444 1 571Compensative/circumstantial 12 292 7 966Periodic payments 74 -Other non-pensionable allowances 153 165 151 021Total 960 658 910 044

4.2 Socialcontributions

Note 2016/17 2015/16R’000 R’000

EmployercontributionsPension 99 459 93 971Medical 52 417 51 650Bargaining council 214 204Total 152 090 145 825

Totalcompensationofemployees 1 112 748 1 055 869Averagenumberofemployees 2 810 2 939



5. Goodsandservices

Note 2016/17 2015/16R’000 R’000

Administrative fees 1 343 1 834Advertising 8 995 7 005Minor assets 5.1 3 403 2 212Bursaries (employees) 320 190Catering 8 217 5 072Communication 19 900 20 449Computer services 5.2 21 850 15 507Consultants: Business and advisory services 1 365 1 286Infrastructure and planning services 5 778 9 567Legal services 1 782 1874Contractors 32 252 22 355Entertainment 210 196Audit cost – external 5.3 5 371 6 282Fleet services 22 451 16 921Inventory 5.4 262 599 237 968Consumables 5.5 26 106 15 210Operating leases 11 921 8 212Property payments 5.6 14 591 16 848Rental and hiring 2 406 3 876Travel and subsistence 5.7 80 791 87 300Venues and facilities 4 203 3 137Training and development 12 739 13 182Other operating expenditure 5.8 8 167 12 088Total 556 760 508 571

Computerservices:1) The expenditure for computer services increased mainly as a result of the upgrading of IT infrastructure in various districts as well as the construction of boreholes for Drought Relief programme.

Inventory:2) To mitigate the effects of drought on farmers more animal fodder (hay& Lucerne) mineral leaks and water tanks were supplied to livestock farmers. This resulted in an increase in the inventory expenditure.

Minorassets3) : The increase relates to goats and sheep (which are regarded as minor assets) that were procured during the financial year for genetic improvement.

Catering:4) The increase was due to the stakeholder engagements to promote agricultural economic transformation strategy

Contractors:5) The department invested in two major agro-processing infrastructure projects (Wittekleibosch Dairy and Ripplemead Packshed) which required significant increase in budget allocations.

Fleetservices:6) The increase is due to the large number of kilometres travelled using government vehicles due to unavailability of subsidies vehicles



5.1. Minorassets

Note 2016/17 2015/165 R’000 R’000

TangibleassetsBiological assets 1 841 172Machinery and equipment 1 562 2040

Total 3 403 2 212

5.2. Computerservices

Note 2016/17 2015/165 R’000 R’000

SITA computer services 1 271 192External computer service providers 20 579 15 315Total 21 850 15 507

5.3. Auditcost–External

Note 2016/17 2015/165 R’000 R’000

Regularity audits 5 371 6 282Total 5 371 6 282

5.4. Inventory

Note 2016/17 2015/165 R’000 R’000

Clothing material and accessories - 353Farming supplies 226 482 196 412Food and food supplies 389 1 395Fuel, oil and gas 727 1 238Learning and teaching support material 28 5Materials and supplies 2 947 10 345Medical supplies 310 195Medicine 29 046 26 937Other supplies 2 670 1 088Total 262 599 237 968

5.4.1OtherSuppliers

2016/17 2015/16R’000 R’000

Asset for distribution 1 885 -Machinery and equipment 1 855 -Other 785 1 088

2 670 1 088



5.5. Consumables

Note 2016/17 2015/165 R’000 R’000

Consumable supplies 19 717 7 621Uniform and clothing 1 534 2 436Household supplies 1 599 1 857Building material and supplies 13 489 1 271Communication accessories 15 -IT consumables 192 119Other consumables 2 888 1938

Stationery, printing and office supplies 6 389 7 589Total 26 106 21015

5.6 Propertypayments

Note 2016/17 2015/165 R’000 R’000

Municipal services 5 683 7 735Property management fees 8 284 8 550Property maintenance and repairs 624 563Other - -Total 14 591 16 848

5.7 Travelandsubsistence

Note 2016/17 2015/165 R’000 R’000

Local 79 985 83 376Foreign 806 3 924Total 80 791 87 300

5.8 Otheroperatingexpenditure

Note 2016/17 2015/165 R’000 R’000

Professional bodies, membership and subscription fees 28 34

Resettlement costs 776 1 378Other 7 363 10 676Total 8 167 12 088

6. Interestpaid

Note 2016/17 2015/16R’000 R’000

Interest paid 53 590Total 53 590



7. Paymentsoffinancialassets

Note 2016/17 2015/16R’000 R’000

Debt written off 9 021 -Total 9 021 -

8. Transfersandsubsidies

Note 2016/17 2015/16R’000 R’000

Departmental agencies and accounts Annex 1A 197 767 153 573Non-profit institutions Annex 1B 54 071 43 875Households Annex 1C 26 532 23 784Total 278 370 221 232

The increase in transfers to Departmental Agencies is mainly as a result of the following:

R11.7 million additional allocation to Ncera Macadamia Nuts project•

R9 million to the National Agricultural Marketing Council for Agricultural Information System.•

R2.550 million to Chris Hani Development Agency for the management of Irrigation Schemes•

R4.814 million to Magwa and Majola •

9. Expenditureforcapitalassets

Note 2016/17 2015/16R’000 R’000

Tangibleassets 227 577 151 342Buildings and other fixed structures 32 122 781 79 006Machinery and equipment 30 74 010 57 098Biological assets 30 30 786 15 238

Intangibleassets - 3 000Software 31 - 3 000

Total 227 577 154 342

The department invested in two major agro-processing infrastructure projects (Wittekleibos Dairy and •Ripplemead Pack shed) which required significant increase in budget allocations.

The increase in machinery and equipment is due to the purchase of additional farming equipment (tractors) •and implements to support fodder production project.



9.1. Analysisoffundsutilisedtoacquirecapitalassets–2016/17

Votedfunds TotalR’000 R’000

Tangibleassets 227 577 227 577Buildings and other fixed structures 122 781 122 781Machinery and equipment 74 010 74 010Biological assets 30 786 30 786

IntangibleassetsSoftware - -Total 227 577 227 577

9.2. Analysisoffundsutilisedtoacquirecapitalassets–2015/16

Votedfunds TotalR’000 R’000

Tangibleassets 151 342 151 342Buildings and other fixed structures 79 006 79 006Machinery and equipment 57 098 57 098Biological assets 15 238 15 238

Intangibleassets3 000 3 000

Software 3 000 3 000Total 154 342 154 342

9.3. FinanceleaseexpenditureincludedinExpenditureforcapitalassets

2016/17 2015/16R’000 R’000

TangibleassetsMachinery and equipment 46 631 39 282

Total 46 631 39 282

10. Unauthorisedexpenditure

10.1.Reconciliationofunauthorisedexpenditure

2016/17 2015/16R’000 R’000

Opening balance - 27 461Less: Amounts approved by Legislature without funding and written off in Statement of Financial Performance

- (27 461)

Current - (27 461)Closingbalance - -



11. Cashandcashequivalents

Note 2016/17 2015/16R’000 R’000

Consolidated Paymaster General Account 33 614 18 737Total 33 614 18 737

12. Receivables

2016/17 2015/16

Current Non-current Total Current Non-

current Total

Note

R’000 R’000 R’000 R’000 R’000 R’000

Claims recoverable 12.1 (368) - (368) 4 988 9 021 14 009

Recoverable expenditure 12.2 22 4 655 4 677 87 4 655 4 742

Staff debt 12.3 1 134 - 1 134 1 407 - 1 407Fruitless and wastefull expenditure

12.4 316 - 316 - - -

Total 1 104 4 655 5 759 6 482 13 676 20 158

An amount of R 9 million relating to past years’ Swine Fever claims that were disputed by Department of Agriculture, Forestry and Fisheries was written off in the year under review. The impact of that is the decrease in Claims Recoverable.

12.1.Claimsrecoverable

Note 2016/17 2015/1612 R’000 R’000

National departments (368) 14 009Total (368) 14 009

12.2.Recoverableexpenditure

Note 2016/17 2015/1612 R’000 R’000

Salary tax debts 22 87Disallowance miscellaneous 4 655 4 665Total 4 677 4 742

12.3.Staffdebt

Note 2016/17 2015/1612 R’000 R’000

Debt Account 1 134 1 407Salary related debts - -Total 1 134 1 407



12.4.FruitlessandWastefulexpenditure

Note 2016/17 2015/1612 R’000 R’000

Transfers from fruitless and wasteful expenditure 316 -Total 316 -

12.5.Impairmentofreceivables

Note 2016/17 2015/1612 R’000 R’000

Estimate of impairment of receivables 4 655 13 676Total 4 655 67612

An amount of R 9 million relating to past years’ Swine Fever claims that were disputed by Department of Agriculture, Forestry and Fisheries was written off in the year under review. The impact of that is the decrease in Claims Recoverable.

13. VotedfundstobesurrenderedtotheRevenueFund

Note 2016/17 2015/16R’000 R’000

Opening balance 36 481 59 574Transfer from statement of financial performance 30 593 14 617Voted funds not requested/not received 1.1 - -Paid during the year (36 481) (37 710)Closingbalance 30 593 36 481

14. DepartmentalrevenueandNRFReceiptstobesurrenderedtotheRevenueFund

Note 2016/17 2015/16R’000 R’000

Opening balance 485 466Transfer from Statement of Financial Performance 19 575 699Own revenue included in appropriation 3 9 585 9 050Paid during the year (29 366) (9 730)Closingbalance 279 485

15. Payables–current

Note 2016/17 2015/16

R’000 R’000

Amounts owing to other entities Annex 4 8 460 1 789

Clearing accounts 15.1 41 140

Total 8 501 1 929



15.1.Clearingaccounts

Note 2016/17 2015/1615 R’000 R’000

DescriptionSalary related account 41 140Total 41 140

16. Netcashflowavailablefromoperatingactivities

Note 2016/17 2015/16R’000 R’000

Net surplus/(deficit) as per Statement of Financial Performance 50 168 15 316

Add back non cash/cash movements not deemed operating activities 191 242 138 750

(Increase)/decrease in receivables – current 14 399 (3 410)(Increase)/decrease in other current assets - 27 461Increase/(decrease) in payables – current 6 576 (329)Proceeds from sale of capital assets (1 044) (924)Expenditure on capital assets 227 577 154 342Surrenders to Revenue Fund (65 847) (47 440)Voted funds not requested/not received - -Own revenue included in appropriation 9 585 9 050Netcashflowgeneratedbyoperatingactivities 241 410 154 066

17. Reconciliationofcashandcashequivalentsforcashflowpurposes

Note 2016/17 2015/16R’000 R’000

Consolidated Paymaster General account 33 614 18 737Total 33 614 18 737

18. Contingentliabilitiesandcontingentassets

18.1.Contingentliabilities

Note 2016/17 2015/16R’000 R’000

LiabletoNatureHousing loan guarantees Employees Annex 2A 1 083 1 280Claims against the department Annex 2B 25 093 8 171

Total 26 176 9 451



18.2 Contingentassets

Note 2016/17 2015/16R’000 R’000

NatureofcontingentassetGuardrisk Insurance 989 -Total 989 -

Uncertaintiesrelatingtoamountortimingofoutflow:

The department is uncertain as to the clearance of the claims against the department pending the conclusion of the cases by the courts of law.

The increase is due to new claims against the department amounting to R18 million.•

The contingent asset results from a claim lodged against a supplier that has defaulted

19. Commitments

2016/17 2015/16R’000 R’000

CurrentexpenditureApproved and contracted 21 837 23 321Approved but not yet contracted 973 9 512

22 810 32 833CapitalexpenditureApproved and contracted 27 807 5 098

27 807 5 098TotalCommitments 50 617 37 931

Commitments include multiyear construction contractors for boreholes, revitalisation of colleges as well as •animal for livestock improvement scheme for R27 million.

There is a multi-year contract relating to ICT infrastructure procurement made in 2016/17 to commence in •2017/18.

Also there are commitments relating to the department’s investment in two major agro-processing •infrastructure projects (Wittekleibosch Dairy and Ripplemead Packshed) which required significant increase in budget allocations.

20. Accrualsandpayablesnotrecognised

20.1 Accruals

2016/17 2015/16R’000 R’000

Listedbyeconomicclassification30 Days 30+ Days Total Total

Goods and services 38 122 224 38 346 32 889Capital assets 175 - 175 43Total 38 297 224 38 521 32 932



2016/17 2015/16R’000 R’000

ListedbyprogrammelevelAdministration 30 890 26 288Sustainable resource management 20 1Farmer support and development 7 113 6 185Veterinary service 43 41Research and development service 3 24Agricultural economics 3 2Structured agricultural training 449 390Rural development coordination - 1Total 38 521 32 932

Reasonsformaterialaccruals:

Administration1) The increase in Administration relates to leave gratuities, DOT, Vodacom that were received after year end.

20.2 Payables

2016/17 2015/16R’000 R’000

Listedbyeconomicclassification30 Days 30+ Days Total Total

Goods and services 6 56 62 1 897Capital assets 330 - 330 -Other 5 246 - 5 246 6 744Total 5 582 56 5 638 8 641

2016/17 2015/16R’000 R’000

ListedbyprogrammelevelAdministration 2 116 1 675Sustainable resource management 430 451Farmer support and development 771 2 616Veterinary service 1 104 2 362Research and development service 766 587Agricultural economics 128 66Structured agricultural training 323 187Rural development coordination - 697Total 5 638 8 641

Note 2016/17 2015/16R’000 R’000

Confirmed balances with other government entities Annex 4 8 460 1 789Total 8 460 1 789



21.Employeebenefits

2016/17 2015/16R’000 R’000

Leave entitlement 67 413 59 721Service bonus 32 612 31 176Other - -Total 100 025 90 897

Leave entitlement includes negative leave balances amounting to R469 203.62 relating to leave days owed by the department officials. These amounts will be recovered from their exit benefits when leaving the Public Service.

22. Leasecommitments

22.1.Operatingleasesexpenditure

2016/17Buildingsandotherfixedstructures

Total

Not later than 1 year 7 184 7 184Later than 1 year and not later than 5 years 8 759 8 759Later than five years 666 666Totalleasecommitments 16 609 16 609

2015/16Buildingsandotherfixedstructures

Total

Not later than 1 year 5 163 5 163Later than 1 year and not later than 5 years 8 732 8 732Later than five years 910 910Totalleasecommitments 14 805 14 805

22.2.Financeleasesexpenditure**

2016/17 MotorVehicles Machineryandequipment Total

Not later than 1 year 18 751 8 724 27 475Later than 1 year and not later than 5 years 28 854 18 300 47 154Later than five years - - -Totalleasecommitments 47 605 27 024 74 629

2015/16 MotorVehicles Machineryandequipment Total

Not later than 1 year 16 358 14 141 30 499Later than 1 year and not later than 5 years 28 743 7 993 36 736Later than five years - - -Totalleasecommitments 45 101 22 134 67 235

The increase in finance leases, machinery and equipment is due to the new Vodacom contract. Previously mobile devises were on a 2 year contract and disclosed accordingly. Now the new Vodacom contract is for 4 years, ending August 2020 thus the increase in the lease commitment.



23. Accrueddepartmentalrevenue

Note 2016/17 2015/16R’000 R’000

Sales of goods and services other than capital assets 257 272Fines, penalties and forfeits - 1Interest, dividends and rent on land - 1Sales of capital assets 1 2Transactions in financial assets and liabilities 21 209Total 279 485

23.1. Analysisofaccrueddepartmentalrevenue

Note 2016/17 2015/16R’000 R’000

Opening balance - -Add: Amount recognised 279 485Closingbalance 279 485

24. Irregularexpenditure

24.1.Reconciliationofirregularexpenditure

Note 2016/17 2015/16R’000 R’000

Opening balance 83 287 214 271Add: Irregular expenditure – relating to current year 22.2 76 344Less: Prior year amounts condoned 22.3 (82 062) (131 248)Less: Amount not condoned and recoverable - -Less: Current year amounts condoned - (80)Irregularexpenditureawaitingcondonation 1 301 83 287

AnalysisofawaitingcondonationperageclassificationCurrent year 76 264Prior years 1 225 83 023Total 1 301 83 287

24.2.Detailsofirregularexpenditure–currentyear

Incident Disciplinarystepstaken/criminalproceedings

2016/17R’000

Contravention of procurement process Referred to disciplinary hearings 76Total 76



24.3.Detailsofirregularexpenditurecondoned

Incident Condonedby(condoningauthority)

2016/17

R’000HROPT Head of Department 53 801Contravention of procurement process Head of Department 28 261Total 82 062

25. Fruitlessandwastefulexpenditure

25.1. Reconciliationoffruitlessandwastefulexpenditure

2016/17 2015/16R’000 R’000

Opening balance 10 076 9 481Fruitless and wasteful expenditure- relating to prior yearFruitless and wasteful expenditure – relating to current year 121 605

Less: Amounts resolved (10 135) (10)Fruitlessandwastefulexpenditureawaitingresolution 62 10 076

25.2. Analysisofawaitingresolutionpereconomicclassification

2016/17 2015/16Current: Goods and services 62 10 076Total 62 10 076

25.3.AnalysisofCurrentyear’sfruitlessandwastefulexpenditure

Incident Disciplinarystepstaken/criminalproceedings

2016/17R’000

No show cancellation fees Partly and others pending 43Interest Resolved 53Traffic fines Resolved through recovery 14Order not cancelled Resolved 11Total 121

26. Relatedpartytransactions

Listrelatedpartyrelationships:

Related parties of the department are all Government departments and entities. The following ECRDA subsidiaries are included:

Kangela Citrus Farm (Pty) Ltd;•

The department rents properties from the Department of Public Works free of charge.



27. Keymanagementpersonnel

No. of Individuals

2016/17 2015/16

R’000 R’000Political office bearers (provide detail below)Officials: 1 1 902 1 906

Level 15 to 16 4 5 653 5 762Level 14 (incl. CFO if at a lower level) 14 14 505 14 901

Family members of key management personnel 5 1 026 1 157Total 23 086 23 726

28. Impairment:other

Note 2016/17 2015/16R’000 R’000

Receivables 4 655 13 676Total 4 655 13 676

An amount of R 9 million relating to past years’ Swine Fever claims that were disputed by Department of Agriculture, Forestry and Fisheries was written off in the year under review. The impact of that is the decrease in Claims Recoverable

29. Provisions

Note 2016/17 2015/16R’000 R’000

Performance awards 17 542 15 845Capped leave commitment 147 307 151 439Long service awards 1 545 1 952Retentions 1 791 -Total 168 185 169 236

29.1.Reconciliationofmovementinprovisions–2016/17

Performanceawards

Cappedleavecommitments

Longserviceawards Retentions Total

provisions

R’000 R’000 R’000 R’000

Opening balance 15 845 151 439 1 952 - 169 236Increase in provision 1 697 - - 1 791 3 488Settlement of provision - - (1 952) - (1 952)

Provisions raised - (4 132) 1 545 - (2 587)Closingbalance 17 542 147 307 1 545 1 791 168 185



29.2.Reconciliationofmovementinprovisions–2015/16

Performanceawards

Cappedleavecommitments

Longserviceawards

Totalprovisions

R’000 R’000 R’000 R’000

Provisions raised 15 845 151 439 1 952 169 236Closingbalance 15 845 151 439 1 952 169 236

Performanceawards:1)

The timing pertaining to performance awards for 2016/2017 was uncertain at year end as the performance assessments were yet to be performed.

Cappedleavecommitments:2)

The timing of capped leave commitments was uncertain as the timing depends on when the capped leave will be taken by the employees.

30. MOVABLE TANGIBLE CAPITAL ASSETS MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR YEAR

ENDED 31 MARCH 2017

Openingbalance

Valueadjustments Additions Disposals Closing

BalanceR’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 199 423 - 27 380 14 753 212 050

Transport assets 14 071 - - - 14 071Computer equipment 51 909 - 6 795 1 503 57 201Furniture and office equipment 18 417 - 1 935 183 20 169

Other machinery and equipment 115 026 - 18 650 13 067 120 609

BIOLOGICAL ASSETS 4 337 - 32 893 31 741 5 489

Biological assets 4337 - 32 893 31 741 5 489

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

203 760 - 60 273 46 494 217 539



30.1.Additions ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE

YEAR ENDED 31 MARCH 2017

Cash Non-cashitems

(CapitalWorkinProgresscurrent

costsandfinanceleasepayments)

Receivedcurrent,notpaid(paid

currentyear,receivedprior

year

Total

R’000 R’000 R’000 R’000 R’000MACHINERY AND EQUIPMENT 74 011 - (46 631) - 27 380

Transport assets 28 548 - (28 548) - -Computer equipment 6 795 - - - 6 795Furniture and office equipment 1 935 - - - 1935

Other machinery and equipment 36 733 - (18 083) - 18 650

BIOLOGICAL ASSETS 30 786 2 107 - - 32 893

Biological assets 30 786 2 107 - - 32 893

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

104 797 2 107 (46 631) - 60 273

30.2 Disposals DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE


Soldforcash Non-cashdisposal

Totaldisposals

Cash ReceivedActual

R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 1 528 13 224 14 753 50Transport assets - - - -Computer equipment 1 221 282 1503 -Furniture and office equipment 183 - 183 50Other machinery and equipment 124 12 943 13 067 -

BIOLOGICAL ASSETS 565 31 176 31 741 994Biological assets 565 31 176 31 741 994

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 2 093 44 401 46 494 1 044



30.3.Movementfor2015/16 MOVEMENT IN TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31

MARCH 2017

Openingbalance

Priorperioderror Additions Disposals Closing

BalanceR’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 164 038 6 39 796 (4 417) 199 423

Transport assets 12 626 - 1 445 - 14 071Computer equipment 47 277 - 5 832 (1 200) 51 909Furniture and office equipment 17 089 - 1 458 (130) 18 417

Other machinery and equipment 87 046 6 31 061 (3 087) 115 026

BIOLOGICAL ASSETSBiological assets 3518 - 16 567 (15 748) 4 337

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

167 556 6 56 363 (20 165 ) 203 760

30.3.1.Priorperioderror

Note 2015/1630 R’000

NatureofpriorperioderrorRelating to 2015/16 6Machinery and equipment 6

Total 6

30.4.MovementinMinorAssetsPertheAssetRegisterfortheYearEndedasat31March2017 Minorassets

Intangibleassets

Machineryandequipment

Biologicalassets Total

R’000 R’000 R’000 R’000Opening balance 48 36 023 4 496 40 567Value adjustments -Additions - 1 562 2 874 4 436Disposals - (501) (3 178) (3 679)TOTAL MINOR ASSETS 48 37 084 4 192 41 324

Intangibleassets



Number of R1 minor assets 16 33 320 - 33 336Number of minor assets at cost 15 34 422 4 146 38 583TOTAL NUMBER OF MINOR ASSETS 31 67 742 4 146 71 919



MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2016

Intangibleassets



R’000 R’000 R’000 R’000Opening balance 48 34 313 4 282 38 643

Prior period error - - (1) (1)Additions - 2 725 1 704 4 429Disposals - (1 015) (1 489) (2 504)TOTAL MINOR ASSETS 48 36 023 4 496 40 567

Intangibleassets



R’000 R’000 R’000 R’000Number of R1 minor assets 16 33 320 - 33 336Number of minor assets at cost 15 33 712 4 107 37 834

TOTAL NUMBER OF MINOR ASSETS 31 67 032 4 107 71 170

30.5.1.Priorperioderror

Note 2015/1630 R’000

NatureofpriorperioderrorRelating to 2015/16 (1)Machinery and equipment (1)

Total (1)

31. IntangibleCapitalAssets MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED

31 MARCH 2017

Openingbalance Additions Disposals ClosingBalance

R’000 R’000 R’000 R’000

SOFTWARE 8 079 - - 8 079

TOTAL INTANGIBLE CAPITAL ASSETS 8 079 - - 8 079



31.1.Movementfor2015/16 MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED

31 MARCH 2016

Openingbalance


BalanceR’000 R’000 R’000 R’000 R’000

SOFTWARE 4 938 - 3 141 - 8 079TOTAL INTANGIBLE CAPITAL ASSETS 4 938 - 3 141 - 8 079

32. ImmovableTangibleCapitalAssets MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE


Openingbalance

Valueadjustments

Additions Disposals ClosingBalance

R’000 R’000 R’000 R’000 R’000-

BUILDINGS AND OTHER FIXED STRUCTURES - - 46 978 (46 978) -

CAPITALWORK-IN-PROGRESS 47 329 - 75 803 (47 329) 75 803

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS 47 329 - 122 781 (94 307) 75 803

32.1.Additions ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE


Cash Non-cash

(CapitalWorkinProgresscurrent

costsandfinanceleasepayments)

Receivedcurrent,not

paid(Paidcurrentyear,receivedprioryear)

Total

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED STRUCTURES

122 781 - (75 803) - 46 978

Other fixed structures 122 781 - (75 803) - 46 978

TOTAL ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS

122 781 - (75 803) - 46 978



32.2. DISPOSAL

Soldforcash Non-cashdisposal Totaldisposals Cashreceived

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES - 46 978 46 978 -

Non-residential building - 46 978 46 978 -

TOTAL DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS

- 46 978 46 978 -

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2016

Openingbalance


BalanceR’000 R’000 R’000 R’000 R’000

31 677 (31 677) -BUILDINGS AND OTHER FIXED STRUCTURES

- - 31 677 (31 677) -

CAPITALWORK-IN-PROGRESS - - 47 329 - 47 329

TOTAL IMMOVABLE TANGIBLE - - 79 006 (31 677) 47 329

33. Priorperioderrors

33.1.Correctionofpriorperioderrors

Note 2016/17R’000

Assets:Minor assets: machinery & equipment 30.4 (1)Movable Tangible Assets: machinery & equipment 30.3.1 6Neteffect 5



34.

STAT

EMEN

T O

F C

ON

DIT

ION

AL

GR

AN

TS R

ECEI

VED

N

AM

E O

F D

EPA

RTM

ENT

GR

AN

T A

LLO

CAT

ION

SPEN

T20

15/1

6

Divisionof

Revenue

Act/

Provincial

Grants

Roll

Ove

rs

DO

RA

Adjust-

ments

OtherAd-

justments

Total

Available

Amou

nt

received

by

department

Amou

nt

spentby

department

Und

er/

(Overspend

-ing)

% o

f available

fund

s spentb

y department

Division

of

Revenue

Act

Amou

nt

spentby

department

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

%R

’000

R’0

00

CAS

P27

1000

5 80

3-

-27

6 80

327

6 80

327

3 94

12

862

99%

261

768

250

153

Lets

ema/

Ilim

a64

335

--

-64

335

64 3

3563

580

755

99%

49 6

7248

737

Land

car

e10

632

--

-10

632

10 6

32

10 6

2111

100%

10 6

6610

612

Exte

nded

Pub

lic

Wor

ks P

rogr

am20

00-

--

2000

2000

2000

--

2 18

82

188

347

967

5 80

3-

-35

3 77

035

3 77

035

0 14

23

628

99%

324

294

311

690



AN

NEX

UR

E 1A

STAT

EMEN

T O

F TR

AN

SFER

S TO

DEP

AR

TMEN

TAL

AG

ENC

IES

AN

D A

CC

OU

NTS

DEP

AR

TMEN

T/ A

GEN

CY/

A

CC

OU

NT

TRA

NSF

ER A

LLO

CAT

ION

201

6/17

TRA

NSF

ER20

15/1

6

Adjusted

App

ropriatio

nRoll

Ove

rsAdjustm

ents

Total

Available

Actual

Transfer

% o

f Av

ailablefund

s Transferred

App

ropriatio

nAct

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00

EC

RD

A 1

77 0

93

- 1

1 70

0 1

88 7

93

188

767

10

0%15

3 57

3

AG

RIC

NAT

ION

AL

MAR

KETI

NG

CO

UN

CIL

2

0 70

0 -

(11

700)

9 0

00

9 0

00

100%

-

TOTA

L19

7 79

3-

-19

7 79

319

7 76

715

3 57

3


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017 VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

AN

NEX

UR

E 1B

STAT

EMEN

TOFTR

ANSF

ERSTO

NON-PROFITINST

ITUTIONS

NON-PROFITINST

ITUTIONS

TRA

NSF

ER A

LLO

CAT

ION

201

6/17

EXPE

ND

ITU

RE

2015

/16

Adjusted

App

ropriatio

n Act

Rollovers

Adjustm

ents

Total

Available

Actual

Transfer

% o

f Av

ailablefund

s transferred

App

ropriatio

n Act

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00

Transfers

For

t Cox

Col

lege

4

7 46

4 -

- 4

7 46

4 4

7 46

4 10

0%43

875

FO

RT

HAR

E U

NIV

ERSI

TY

6 6

07

--

6 6

07

6 6

07

100%

-

Total

54 0

71-

-54

071

54 0

7110

0%43

875


VOTE 8: ANNUAL REPORT FINANCIAL YEAR 2016/2017UNAUDITED ANNEXURES TO THE ANNUAL FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2017

AN

NEX

UR

E 1C

STAT

EMEN

T O

F TR

AN

SFER

S TO

HO

USE

HO

LDS

HO

USE

HO

LDS

TRA

NSF

ER A

LLO

CAT

ION

EXPE

ND

ITU

RE

2015

/16

Adjusted

App

ropriatio

n Act

Roll

Ove

rsAdjustm

ents

Total

Available

Actual

Transfer

% o

f Av

ailablefund

s Transferred

App

ropriatio

n Act

R’0

00R

’000

R’0

00R

’000

R’0

00%

R’0

00

Transfers

Leav

e gr

atui

ty19

377

-8

000

27 3

7726

532

97%

23 9

26

Total

19 3

77-

8 00

027

377

26 5

3297

%23

926



AN

NEX

UR

E 1D

STAT

EMEN

T O

F G

IFTS

, DO

NAT

ION

S A

ND

SPO

NSO

RSH

IPS

REC

EIVE

D

NA

ME

OF

OR

GA

NIS

ATIO

NN

ATU

RE

OF

GIF

T, D

ON

ATIO

N

OR

SPO

NSO

RSH

IP20

16/1

720

15/1

6

R’0

00R

’000

Receivedinkind

Dep

t. of

Agr

icul

ture

, Fis

herie

s &

Fore

stry

Libr

ary

softw

are

-14

1

Dep

t. of

Agr

icul

ture

, Fis

herie

s &

Fore

stry

Tran

spor

t equ

ipm

ent

-1

445

Dep

t. of

Agr

icul

ture

, Fis

herie

s &

Fore

stry

Com

pute

r equ

ipm

ent

-10

5

Dep

t. of

Agr

icul

ture

, Fis

herie

s &

Fore

stry

Mob

ile c

linic

s &

pre-

fab

hom

es-

18 9

83

Dep

t. of

Agr

icul

ture

, Fis

herie

s &

Fore

stry

Furn

iture

& o

ffice

equ

ipm

ent

-56

8

Dep

t. of

Agr

icul

ture

, Fis

herie

s &

Fore

stry

Oth

er m

achi

nery

and

equ

ipm

ent

-87

9

TOTA

L-

22 1

21



AN

NEX

UR

E 1E

STAT

EMEN

T O

F G

IFTS

, DO

NAT

ION

S A

ND

SPO

NSO

RSH

IPS

MA

DE

NAT

UR

E O

F G

IFT,

DO

NAT

ION

OR

SPO

NSO

RSH

IP(Group

majorcategoriesbu

tlistm

aterialitemsinclud

ingnameoforganisation

2016

/17

2015

/16

R’0

00R

’000

Madeinkind

Don

atio

ns (l

ives

tock

) for

num

erou

s ev

ents

and

ben

efici

arie

s46

949

0

Live

stoc

k im

prov

emen

t sch

eme

32 6

0715

023

TOTA

L33

076

15 5

13

Due

to th

e po

or q

ualit

y of

the

anim

als

in th

e ha

nds

of th

e co

mm

unal

farm

ers,

the

depa

rtmen

t inc

reas

ed th

e di

strib

utio

n of

sup

erio

r gen

etic

bre

adin

g liv

esto

ck in

ord

er to

con

tribu

te in

cha

ngin

g th

e liv

es

of th

ese

farm

ers

econ

omic

ally.



AN

NEX

UR

E 2A

STAT

EMEN

T O

F FI

NA

NC

IAL

GU

AR

AN

TEES

ISSU

ED A

S AT

31

MA

RC

H 2

017

– LO

CA

L

Guarantor

institu

tion

Guaranteein

respecto

f

Orig

inal

gu

aranteed

capital

amou

nt

Opening

balance

1April2016

Guarantees

draw

dow

nsdu

ringthe

year

Guarantees

repaym

ents/

cancelled/

redu

ced/

releasedduring

the

year

Revaluatio

nsClosing

balance

31March2017

Guaranteed

interestfo

ryear

ended31March

2016

Realised

lossesnot

recoverablei.e.

claimspaidout

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

Hou

sing

Stan

dard

Ban

k-

233

--

-23

3-

-

Ned

bank

-13

5-

(26)

-10

9-

-

Firs

tRan

d Ba

nk-

120

--

-12

0-

-

ABSA

-69

5-

(143

)-

552

--

Uni

que

Bank

-15

--

-15

--

TNBS

--

--

-49

--

Old

Mut

ual

-49

--

--

--

Ithal

a Li

mite

d-

28-

(28)

--

--

ECD

C5

5

TOTA

L-

1 28

0-

(197

)-

1 08

3-

-



AN

NEX

UR

E 2B

STAT

EMEN

T O

F C

ON

TIN

GEN

T LI

AB

ILIT

IES

AS

AT 3

1 M

AR

CH

201

7

NatureofLiability

Opening

Balance

1April2016

Liabilitiesincurredduring

the

year

Liabilitiespaid/cancelled/

redu

ceddu

ringtheyear

Liabilitiesrecoverable

(Providedetailshereund

er)

Closing

Balance

31March2017

R’0

00R

’000

R’0

00R

’000

R’0

00Claimsagainstthedepartm

ent

JM N

gxiy

a 1

02

- -

- 1

02

Gun

gqw

ana

Not

yhan

ga 5

-

- -

5

Zim

asile

Nca

mis

o 5

0 -

- -

50

Thom

as C

onst

ruct

ion

95

- -

- 9

5

Ntu

li Fl

ora

Nov

usile

50

- -

- 5

0

Ntu

li M

phak

amis

i / M

inis

ter o

f Dep

t of

Agric

ultu

re 5

-

- -

5

Win

kie

Nel

a50

- -

- 5

0

Mnt

ambo

& 1

07 O

ther

s / F

ort C

ox

Col

lege

500

(5

00)

-

Xplo

sive

Inve

stm

ents

902

cc 5

0 5

0

Zand

isile

M. G

way

ana

10

(10)

-

Sam

my

B M

ande

an/D

RD

AR 1

0 40

-

- 5

0

Ukh

ahla

mba

Dis

trict

Mun

icip

ality

1

- -

- 1

Nol

waz

i Avi

ator

Cen

ge 4

8 -

(48)

-

-

DFM

Sec

uriti

es 5

40

- (5

40)

- -

Willa

rds

Trav

el S

ervi

ces

121

-

( 121

) -

-

EN M

pike

leli

361

-

(361

) -

-

S M

ayek

iso

and

4 ot

hers

50

- ( 5

0)

- -

L. S

iban

yoni

50

- -

50

Nts

asa

Vele

sazi

/ M

EC fo

r Agr

icul

ture

an

d ot

her

28

- (2

8)

- -

Nts

okol

o D

. San

di 1

00

- (1

00)

- -

Eagl

es M

ulti-

purp

ose

Prim

ary

Co-

oper

ativ

e 4

983

-

- -

4 9

83

Dr T

T Si

lwan

a (P

SA)

50

- (5

0)

- -



NatureofLiability

Opening

Balance

1April2016

Liabilitiesincurredduring

the

year

Liabilitiespaid/cancelled/

redu

ceddu

ringtheyear

Liabilitiesrecoverable

(Providedetailshereund

er)

Closing

Balance

31March2017

R’0

00R

’000

R’0

00R

’000

R’0

00

Ethe

sian

Foz

zie

& 4

othe

r/ N

dlam

be

Mun

icip

ality

500

-

- 5

00

Mon

wab

isi Y

ako

vs M

inis

ter o

f Lan

d Af

fairs

& D

RD

AR 5

0 -

(50)

-

-

N M

atis

o 1

2 -

(12)

-

-

Lukh

anyo

Fes

i 1

00

- -

- 1

00

Um

uhle

Dev

elop

men

t 1

00

- -

- 1

00

N. S

tem

ele

100

50

-

- 1

50

Zim

ele

Sand

i & 3

oth

ers

50

50

- -

100

Noz

ipho

Hlo

ngw

ane

- 1

2 20

0 -

- 1

2 20

0

NEH

AWU

/ Aya

bule

la N

goqo

- 5

8 -

- 5

8

Mfu

neko

Sik

unya

na-

20

--

20

East

en C

ape

Dev

elop

men

t C

orpo

ratio

n-

565

-

- 5

65

Nin

giza

Hor

ner I

nc/ E

CAT

U&

Prem

ier

EC-

749

-

- 7

49

Nok

wan

da N

dleb

e/ M

EC fo

r DR

DAR

- 3

50

--

350

Rob

et B

oaky

e Yi

adom

/ M

EC fo

r D

RD

AR-

50

--

50

Man

elis

i Zuk

ile S

omhl

ahlo

/ MEC

for

DR

DAR

& O

ther

- 5

0 -

- 5

0

Emth

onje

ni A

gric

ultu

ral&

Irrig

atio

n Sy

stem

- 4

410

-

- 4

410

L M

usis

i-

100

-

- 1

00

Azile

Nda

ba-

100

-

- 1

00

Subtotal

8 17

118

792

1 87

0-

25 0

93



AN

NEX

UR

E 3

CLA

IMS

REC

OVE

RA

BLE

Governm

entE

ntity

Con

firmedbalanceoutstanding

Uncon


Total

Cashintransitatyeare

nd2016/17

31/0

3/20

1731

/03/

2016

31/0

3/20

1731

/03/

2016

31/0

3/20

1731

/03/

2016

Receiptdate

upto

six(6)

working

days

aftery

eare

nd

Amou

nt

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

R’0

00

Departm

ent

TAR

DI &

For

t Cox

: Rev

italis

atio

n of

C

olle

ges

(368

)81

5-

4 17

3(3

68)

4 98

8-

-

Dep

artm

ent o

f Agr

icul

ture

, For

estry

&

Fish

erie

s: S

win

e Fe

ver

--

-9

021

-9

021

--

Sub-total

--

TOTA

L(3

68)

815

-13

194

(368

)14

009

--



AN

NEX

UR

E 4

INTE

R-GOVE

RNMEN

TPA

YABLE

S

GO

VER

NM

ENT

ENTI

TY

Con


Uncon


TOTA

LCashintransitatyeare

nd2016/17

31/0

3/20

1731

/03/

2016

31/0

3/20

1731

/03/

2016

31/0

3/20

1731

/03/

2016

Paym

entd

ate

upto

six(6)

working

days

beforeyeare

nd

Amou

nt

R’0

00R

’000

R’0

00R

’000

R’0

00R

’000

R’0

00

OTH

ERGOVE

RNMEN

TEN

TITIES

:Current

Chr

is H

ani D

istri

ct M

unic

ipal

ity71

71-

-71

71-

-

AGR

ISET

A14

229

0-

-14

229

0-

-

HW

SETA

8 11

81

428

--

8 11

81

428

--

Mhl

ontlo

Mun

icip

ality

39-

--

39-

--

CET

A90

--

-90

--

-

Total

8 46

01

789

--

8 46

01

789

--



ANNEXURE 5

INVENTORIES

Inventory:summary Note2016/17 2015/16R’000 R’000

Opening balance - 3 736Add/(Less): Adjustments to prior year balance -Add: Additions/Purchases - Cash 5.4 262 599 237 968Add: Additions - Non-cash -(Less): Disposals -(Less): Issues (262 599) (241 704)Add/(Less): Adjustments -Closingbalance - -

Inventory:Clothmaterials&accessories Note2016/17 2015/16R’000 R’000

Opening balance - -Add/(Less): Adjustments to prior year balance - -Add: Additions/Purchases - Cash 5.4 353Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (353)Add/(Less): Adjustments - -Closingbalance - -

Inventory:Farmingsupplies Note2016/17 2015/16R’000 R’000

Opening balance - 93Add/(Less): Adjustments to prior year balance - -Add: Additions/Purchases - Cash 5.4 226 483 196 412Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (226 483) (196 505)Add/(Less): Adjustments - -Closingbalance -

Inventory:Foodandfoodsupplies Note2016/17 2015/16R’000 R’000

Opening balance - -Add/(Less): Adjustments to prior year balance - -Add: Additions/Purchases - Cash 5.4 389 1 395Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (389) (1 395)Add/(Less): AdjustmentsClosingbalance - -



Inventory:Fuel,Oil&Gas Note2016/17 2015/16R’000 R’000

Opening balance - -Add/(Less): Adjustments to prior year balance - -Add: Additions/Purchases - Cash 5.4 727 1 238Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (727) (1 238)Add/(Less): Adjustments - -Closingbalance - -

Inventory:Learn&teachingsupplymaterials Note2016/17 2015/16R’000 R’000

Opening balance - -Add/(Less): Adjustments to prior year balance - -Add: Additions/Purchases - Cash 5.4 28 5Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (28) (5)Add/(Less): Adjustments - -Closingbalance - -

Inventory:Materialsandsupplies Note2016/17 2015/16R’000 R’000

Opening balance - 250Add/(Less): Adjustments to prior year balance - -Add: Additions/Purchases - Cash 5.4 2 947 10 345Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (2 947) (10 595)Add/(Less): Adjustments - -Closingbalance - -

Inventory:Medicalsupplies Note2016/17 2015/16R’000 R’000

Opening balance - 1 059Add/(Less): Adjustments to prior year balance - -Add: Additions/Purchases - Cash 5.4 310 195Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (310) (1 254)Add/(Less): Adjustments - -Closingbalance - -



Inventory:Medicine Note2016/17 2015/16R’000 R’000

Opening balance - 2 331Add/(Less): Adjustments to prior year balance - -Add: Additions/Purchases - Cash 5.4 29 046 26 937Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (29 046) (29 268)Add/(Less): Adjustments - -Closingbalance - -

Inventory:Othersupplies Note2016/17 2015/16R’000 R’000

Opening balance - 3Add/(Less): Adjustments to prior year balance - -Add: Additions/Purchases - Cash 5.4 2 671 1 088Add: Additions - Non-cash - -(Less): Disposals - -(Less): Issues (2 671) (1 091)Add/(Less): Adjustments - -Closingbalance - -

ANNEXURE 6

MOVEMENTINCAPITALWORK-INPROGRESSFORTHEYEARENDED31MARCH2017

Openingbalance CurrentyearCapitalWIP

CompletedAssets ClosingBalance

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES 47 329 75 803 47 329 75 803

TOTAL IMMOVABLE TANGIBLE CAPITAL ASSETS

47 329 75 803 47 329 75 803

MOVEMENT IN CAPITAL WORK IN PROGRESS FOR THE YEAR ENDED 31 MARCH 2016

Openingbalance

Priorperioderror

CurrentYearCapitalWIP

CompletedAssets

Closingbalance

R’000 R’000 R’000 R’000 R’000BUILDINGS AND OTHER FIXED STRUCTURESDwellingsNon-residential buildingsOther fixed structures - - 47 329 - 47 329

TOTAL - - 47 329 - 47 329



NOTES



2016

ANNUAL REPORT 2016/17 ISBN: 978-0-621-45642-4

CONTACT DETAILSEastern Cape Department of Rural Development & Agrarian Reform

Independence AvenuePrivate Bag X0040Bhisho5605South Africa

www.agr.ecprov.gov.za

CUSTOMER CARE TOLL FREE: 0800 20 30 25

ISBN: 978-0-621-45642-4

“VIBRANT, EQUITABLE, SUSTAINABLE

RURAL COMMUNITIES AND FOOD SECURITY FOR

ALL”

57220 dep154 pri 06 rv 11 annual report inner · pfma public finance management act tb tuberculosis...

Documents