Financial Statement 2010/11 Annual Grant and Sponsorship

The NAMC received funding of R 31 194 million during the 2010/11 financial year from the Department of Agriculture, Forestry & Fisheries.

Other and Sponsorship income amounted to R 1 451 million. The net interest generated from investments amounted to R 1 022 million.

Total Income and Expenditure The total income for the year was R 33 667 million. Total expenditure amounted to R 34 665 million. This resulted in deficit funding of R 998 million. (This figure included

non-cash flow expenditure such as depreciation , finance charges, leave pay provision).

Expenditure Outcome

Expenditure Categories 2009/10 2010/11 % Variance Reasons for variance

R’000 R’000

Personnel 15,125 20,917 38% Review of salary structures effective date April 2010 and increase in staff complement from 36 - 45

Operating 3,602 3,302 -8% Decrease in the number of section 7 workshop held during 2010/11.

Rental: Office space 773 939 21% Leasing of office space for National Re Meat project in the Eastern Cape.

Professional services 7,579 5,899 -22% Actual expenditure incurred for STATS SA less than projected expenditure.

Other Administrative 3,049 3,608 18% Increase of fees paid to Audit Committee members, increase in Printing expenses due to number of reports and copies printed and increase in the number of staff function held during the year.

Total 31,128 34,665 11%

Baseline allocation 28,360 31,194 10%

Donor Funds 2,007 1,451

Expenditure trends per programmeName of

ProgrammeBudget

2010/11

R’000

Actual expenditure

2010/11

R’000

Percentage variance % Reason for variance

Finance & Admin 7,859 7,782 99% Finance & Admin budget include budgetedinterest of R1,300 million.

Human Resources

3,164 2,998 94.5%

Agribusiness Development

3,635 3,619 99.5%

Agricultural Trust 1,744 3,951 227% This expenditure includes expenditure for National Red Meat project financed by donor funding rolled over to the financial year 2010/11 and interest generated in the previous financial year 2009/10.

Statutory Measures

1,462 1,468 100%

MERC 10,865 10,740 98.8%

Council 1,098 1,120 102%

CEO 2,667 2,987 112%

Total 32,294 34,665 107%

ProcurementFor the period under review the NAMC advertised a tender for internal audit service, the Bid Evaluation and Adjudication committees were appointed to evaluate and adjudicate the bids and the tender was awarded to Outsourced Risk and Compliance Assessment (ORCA) for the period 2010/11 – 2012/13.The following information regarding ORCA was reported to National Treasury as per supply chain management prescripts.Percentage equity ownership by black persons based on the information furnished on the Standard Bidding Documents (SBD 6.1)

73%

Percentage equity ownership by black women as per (SBD 6.1)

2.5%

Percentage equity ownership by white women as per (SBD 6.1)

2.5%

Total contract price R693,120.00

Outcome of the audit 2010/11:

Unqualified audit opinion with no

emphasis of matter.