Contents · PFMA: Public Finance Management Act (Act 1 of 1999) as amended PAIA: Promotion of...

1Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014

ContentsPart A:GENERAL INFORMATION ..................................................................................................................... 2

1. Name of Department: ................................................................................................................................................................... 3

2. List of Abbreviations/Acronyms ............................................................................................................................................. 4

3. Strategic Overview ........................................................................................................................................................................... 8

4. Legislative and other Mandates ............................................................................................................................................... 9

5. Organisational Structure .............................................................................................................................................................. 12

6. Foreword by the MEC .................................................................................................................................................................... 14

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

1. Statement of Responsibility for Performance Information for the year ended 31 March 2014 ..... 22

2. Auditor General’s Report: Predetermined Objectives ............................................................................................... 23

3. Overview of Departmental Performance .......................................................................................................................... 24

4. Strategic Outcome Oriented Goals ....................................................................................................................................... 35

5. Performance Information by Programme ........................................................................................................................ 35

6. Summary of Financial Information .................................................................................................................................... 73

PART C: GOVERNANCE ..............................................................................................851. Introduction .......................................................................................................................................................................................... 86

2. Risk Management ............................................................................................................................................................................ 86

3. Fraud and Corruption .................................................................................................................................................................. 88

4. Minimising Conflict of Interest ................................................................................................................................................. 89

5. Code of Conduct ............................................................................................................................................................................. 89

6. Occupational Health and Safety (HOS) .............................................................................................................................. 90

7. Portfolio Committees ..................................................................................................................................................................... 90

8. Internal Control Unit ....................................................................................................................................................................... 90

Part D: HUMAN RESOURCE MANAGEMENT ............................................................................................ 95

1. Legislature that Governs HR Management .................................................................................................................... 96

2. Introduction ........................................................................................................................................................................................ 96

3. Human Resource Oversight Statistics ................................................................................................................................ 99

Part E: FINANCIAL INFORMATION .................................................................................................................. 138

1. Report of the Accounting Officer ........................................................................................................................................... 140

2. General Review of the State of Financial Affairs ........................................................................................................... 140

3. Report of the Auditor-General ................................................................................................................................................ 160

4. Annual Financial Statements ..................................................................................................................................................... 164

2 Gauteng Provincial Government | Agricuture and Rural Development | Annual Report | 2013/2014

Part A: GENERAL INFORMATION


1. NAME OF DEPARTMENT:

Gauteng Department of Agriculture, and Rural Development

PHYSICAL ADDRESS OF HEAD OFFICE: 11 Diagonal Street

Diamond Building

Newtown

Johannesburg 2000

POSTAL ADDRESS OF HEAD OFFICE: PO Box 8169 Johannesburg 2001

CONTACT TELEPHONE NUMBER/S: 011 240 2500

FAX NUMBER: 086 420 1000

EMAIL ADDRESS: [email protected]

WEBSITE ADDRESS: www.gdard.gpg.gov.za

http://www.gdard.gpg.gov.za


2. LIST OF ABBREVIATIONS/ACRONYMS

ABET: Adult Basic Education and Training

ABNR: Abey Bailey Nature Reserve

AFASA: African Farmers Association of South Africa

AG: Auditor General

AgriBEE: Agricultural Black Economic Empowerment

AGRISA: Agriculture South Africa

AO: Accounting Officer

ARC: Agricultural Research Council

BAS: Basic Accounting System

BBBEE: Broad-Based Black Economic Empowerment

BkB: Bontle ke Botho

CARA: Conservation of Agricultural Resources Act, 1983 (Act 43 of 1983)

CAPEX: Capital Expenditure

CASP: Comprehensive Agricultural Support Programme

CBNRM: Community-Based Natural Resources Management

CDM: Clean Development Mechanism

CEO: Chief Executive Officer

CITES: Convention on International Trade in Endangered Species of Fauna and

Flora

COJ: City of Johannesburg

COH: Cradle of Humankind

CRDP: Comprehensive Rural Development Programme

CSIR: Council for Scientific and Industrial Research

DAC: Departmental Acquisition Council

DCS: Department of Community Safety

DDG: Deputy Director General

DEA: Department of Environmental Affairs

DED: Department of Economic Development

DFA: Development Facilitation Act

DOH: Department of Health

DID: Department of Infrastructure Development

DSD Department of Social Development

DLGH: Department of Local Government and Housing

DME: Department of Minerals and Energy

DOA: Department of Agriculture

DOL: Department of Labour

DPLG: Department of Planning and Local Government

DRT: Department of Roads and Transport

DSACR: Department of Sports, Arts, Culture and Recreation

DTI: Department of Trade and Industry

DWA: Department of Water Affairs

EAP: Employee Assistance Programme

ECA: Environment Conservation Act

EE: Employment Equity

EIA: Environmental Impact Assessment

EIP: Environmental Implementation Plan

EMC: Environmental Monitoring Committee


List of Abbreviations /Acronyms continued

EMI: Environmental Management Inspectorate/Inspector

EMF: Environmental Management Framework

EMP: Environmental Management Plan

EMPR: Environmental Management Performance Report

EPIA: Environmental Planning and Impact Assessment

EPM: Enterprise Project Management

EPWP: Expanded Public Works Programme

EXCO: Executive Council

FBO: Faith-Based Organisation

FAWU: Food and Allied Workers Union

FSD: Farmer Support and Development

GABP: Gauteng Biodiversity Analysis Project

GADS: Gauteng Agricultural Development Strategy

GAPA: Gauteng Agriculture Potential Atlas

GAPROFU: Gauteng Province Farmers’ Union

GCRDS: Gauteng Comprehensive Rural Development Strategy

GDARD: Gauteng Department of Agriculture and Rural Development

GDLG: Gauteng Department of Local Government

GDS: Growth and Development Strategy

GEDA: Gauteng Economic Development Agency

GDSHD: Gauteng Department of Health

GDSD Gauteng Department of Social Development

GDP: Gross Domestic Product

GEIP: Gauteng Environmental Implementation Plan

GEP: Gauteng Enterprise Propeller

GG: Government Garage

GIED: Gauteng Institute for Education Development

GIS: Geographic Information System

GPG: Gauteng Provincial Government

GSSC: Gauteng Shared Service Centre

GTA: Gauteng Tourism Authority

GTRW: Gauteng Transport and Road Works

GVS: Government Veterinary Service

HFS: Household Food Security

HOD: Head of Department

HRC: Human Rights Commission

HRD: Human Resource Development

HRM: Human Resource Management

ICT: Information Communication Technology

IDP: Integrated Development Plan

IEM: Integrated Environmental Management

IGR: Intergovernmental Relations

IPGA: Indigenous Plant Growers Association

ISO: International Standards Organisation

ITCA: Intergovernmental Technical Committee on Agriculture

IUCN: International Union for Conservation of Nature

LS: Legal Services

LPG: Liquid Petroleum Gas



LRAD: Land Redistribution and Agricultural Development Programme

MA: Management Authority

MAC: Management Advisory Committee

MAFISA: Micro Agricultural Financial Institutions of South Africa

MEC: Member of the Executive Council

MMC: Member of the Mayoral Committee

MINTECH: Ministers’ Technical Committee

MINMEC: Minister and MEC Meeting

MIS: Management Information System

MOU: Memorandum of Understanding

MPC: Management Plan Committee

MPCC: Multipurpose Community Centre

MPNE: Magaliesburg Protected Natural Environment

NAFU: National African Farmers Union

NAMC: National Agricultural Marketing Council

NARYSEC: National Rural Youth Service Corps

NDRDLR: National Department of Rural Development and Land Reform

NEMA: National Environmental Management Act, 1998 (Act 107 of 1998) as amended

NEF: National Empowerment Fund

NGO: Non-Governmental Organisation

NRM: Natural Resources Management

NERPO: National Emerging Red Meat Producers Organisation

NPO: Not for Profit Organisation

OOP: Office of the Premier

OVI: Onderstepoort Veterinary Institute

PAM: Protected Areas Management

PFMA: Public Finance Management Act (Act 1 of 1999) as amended

PAIA: Promotion of Access to Information Act (Act 2 of 2000)

PMISA: Programme Information Management System for Agriculture

PIPS: Priority Inorganic Pollutants

PLAS: Pro-active Land Acquisition Strategy

POPS: Priority Organic Pollutants

PPP: Private Public Partnership

PSC: Project Steering Committee

PSD: Production Support and Development

PWD: People with Disability

RAMSAR: The Convention on Wetlands, named after Ramsar, a city in Iran

RMDEC: Regional Mining Development and Environmental Committee

ROD: Record of Decision

RPU: Resource Planning and Utilisation

SAFEC: South African Flower Export Association

SAMIC: South African Meat Industry Company

SANAS: South Africa National Accrediting Service

SAHRA: South African Heritage Resource Authority

SANAS: South African National Accreditation System

SANBI: South African National Botanic Institute

SANDF: South African National Defence Force

SANEL: South Africa National Epilepsy League



SAPPO: South African Pig Producers Organisation

SAPS: South African Police Service

SAQA: South African Qualifications Authority

SAVLSF: South Africa Veterinary Laboratory Scientific Forum

SASVEPM: Southern African Veterinary Society for Epidemiology and Preventive Medicine

SBNR: Suikerbosrand Nature Reserve

SBR: Suikerbosrand

SDIP: Service Delivery Improvement Plan

SDP: Spatial Development Plan

SEA: Strategic Environmental Assessment

SEDA: Small Enterprise Development Agency

SETA: Service and Education Training Authority

SLA: Service Level Agreement

SMME: Small, Medium and Micro Enterprise(s)

SRM: Sustainable Resource Management (Directorate)

SUE: Sustainable Use of Environment (Chief Directorate)

TACQA: Technology Advisory Committee on Quality Assurance

TDAC: Training and Development Advisory Committee

TDS: Technology Development and Support

TAU: Transvaal Agricultural Union

TOR: Terms of Reference

UCT: University of Cape Town

R & D: Research and Development

UNESCO: United Nations Educational, Scientific and Cultural Organisation

VSNRM: Veterinary Services and Natural Resource Management

WARD: Women in Agriculture and Rural Development

WESSA: Wildlife and Environment Society of South Africa

WoF: Working on Fire

YARD: Youth in Agriculture and Rural Development


3. STRATEGIC OVERVIEW

3.1. Vision

Vibrant, equitable and sustainable communities, food security for all, protected and

enhanced environmental assets and natural resources.

3.2. Mission

Unlocking the full potential of environment, agriculture and rural development to enhance

the economic, ecological and social wealth of all the people of Gauteng through:

• Improved access to affordable, diverse and nutritious food;

• Accelerated sustainable agrarian reform;

• Championing of animal health and welfare in a cost sharing/recovery model;

• Improved rural services and infrastructure to support sustainable livelihoods with

respect to agriculture, environment, education, health, transport and other forms of

infrastructure and services;

• Rural job creation linked to skills development and promoting economic livelihoods;

• Sustainable management of natural resources by promoting conservation, better

management of waste, reduced greenhouse emissions;

• Efficient and effective governance, quality service delivery and access for an

empowered, active and responsible citizenship.

3.3. Values

The Department subscribes to and is committed to demonstrate the following values:

• Integrity

• Commitment

• Accountability

• Respectfulness

• Empowerment

• Team orientation

• Trend setting

• Responsiveness


4. LEGISLATIVE AND OTHER MANDATES

4.1. Constitutional Mandate

The department derives its mandate from Section 24 and Section 27 of the Constitution of the

Republic of South Africa, 1996.

Section 24 of the Bill of Rights in the Constitution

states that

“24. Everyone has the right -

(a) to an environment that is not harmful to their health or well-being and

(b) to have the environment protected for the benefit of present and future generations through

reasonable legislative and other measures that —

I. prevent pollution and ecological degradation;

II. promote conservation; and

III. secure ecologically sustainable development and use of natural resources while promoting

justifiable economic and social development.”

Section 27 of the Bill of Rights in the Constitution states that

“27. (1) Everyone has the right to have access to-

(a) health care services, including reproductive health care;

(b) (sufficient food and water; and

(c) social security, including, if they are unable to support themselves and their dependents,

appropriate social assistance.

(2) The state must take reasonable legislative and other measures within its available resources, to

achieve the progressive realisation of each of these rights.”

Schedule 4 of the Constitution defines the following areas of concurrent national and provincial

legislative competence:

PART A PART B (these are local government matters)

• Animal control and diseases • Water and sanitation services limited

to potable water supply systems

and domestic waste-water disposal

systems

• Environment

• Nature conservation, excluding national parks, national botanic gardens and marine resources

• Pollution control

• Soil conservation


Schedule 5 of the Constitution defines the following area of exclusive provincial legislative competence:

PART A PART B (these are local government matters)

• Abattoirs • Control of public nuisances

• Veterinary services, excluding regulation of the

profession

• Fencing and fences

• Markets

• Municipal abattoirs

• Municipal parks and recreation

• Noise pollution

• Pounds

• Refuse removal, refuse dumps and

solid waste disposal

4.2. Legislative Mandates

The legislative mandate of the Department is mainly derived from national legislation, which provides

for the functional responsibilities of the Department. The approach of the Department is to utilize

national legislation and provincial laws to address specific provincial variations only if the national

legislative framework does not suffice.

The Department’s responsibilities are carried out in terms of the following major national laws:

• Abattoir Hygiene Act, 1992 (Act 121 of 1992)

• Animal Diseases Act, 1992 (Act 35 of 1992)

• Atmospheric Pollution Prevention Act, 1965 (Act 45 of 1965)

• Conservation of Agricultural Resources Act, 1983 (Act 43 of 1983)

• Environment Conservation Act, 1989 (Act 73 of 1989), as amended

• Environmental Impact Assessment Regulations (Regulations 1182 and 1183), 1997 as amended

• Environmental Impact Assessment Regulations 2006

• Hazardous Substances Act, 1973 (Act 15 of 1973)

• Meat Safety Act, 2000 (Act 20 of 2000)

• National Environment Management Act, 1998 (Act 107 of 1998), as amended

• National Environment Management: Biodiversity Act (Act 57 of 2003)

• National Environment Management: Protected Areas Act (Act 10 of 2004)

• National Environmental Management: Waste Act, 2008 (Act 59 of 2008)

• National Environmental Management: Air Quality Act, 2004 (Act 39 of 2004)

• National Water Act, 1998 (Act 36 of 1998)

• World Heritage Convention Act, 1999 (Act 49 of 1999)

• National Veld and Forest Fire Act (Act 101 1998).

• Basic Conditions of Employment Act, 1997 (Act 75 of 1997)

• Broad Based Black Economic Empowerment Act, 2003 (Act 53 of 2003)

• Employment Equity Act, 1998 (Act 5 of 1998)

• Labour Relations Act, 1995 (Act 66 of 1995)

• Preferential Procurement Policy Framework Act, 2000 (Act 5 of 2000)

• Prevention and Combating of Corrupt Activities Act, 2004 (Act 12 of 2004)

• Promotion of Access to Information Act, 2000 (Act 2 of 2000)


• Promotion of Administrative Justice Act, 2000 (Act 3 of 2000)

• Promotion of Equality and Elimination of Unfair Discrimination Act, 2000 (Act 4 of 2000)

• Protection of Information Act, 1982 (Act 84 of 1982)

• Public Finance Management Act, 1999

• Public Service Act, 1994 (Act 103 of 1994) and Amendment Act of 1999

• Skills Development Act, 1998

The Department’s responsibilities are further carried out in terms of the following provincial laws and subordinate legislation:

• Nature Conservation Ordinance, 1983

• Noise Control Regulations, 1999

4.3. Policy Mandates

In addition to the legislation, the mandate of the

Department derives from the following policies:• The Gauteng Growth and Development Strategy

• The Gauteng Spatial Development Perspective

• The Gauteng Spatial Development Framework

• The Gauteng Strategy for Sustainable Development

• The Gauteng Agricultural Strategy

• The Gauteng Rural Development Strategy

• The Gauteng Clean and Green Strategy

• The Gauteng Agricultural Potential Atlas

• The Gauteng Communication Network Strategy, March 2002 (as amended)

• The GPG Preferential Procurement Policy

• The GPG Gender Policy Framework

• Environmental Implementation Plan

• National Biodiversity Strategy and Action Plan

• National Waste Management Strategy

• South African Air Quality Information System

• Ridges Policy Guideline for Gauteng, September 2001 (as amended)

• Buffer zones Guideline, March 2002

• Red Data Species Policy

• National Biodiversity Framework

• Convention on International Trade of Endangered Species

• National Protected Area Expansion Strategy

• South Africa’s Economic Transformation: A Strategy for Broad-Based Black Economic

Empowerment.

• South Africa’s National Policy Framework for Women’s Empowerment and Gender

Equality

• Gauteng Provincial Government Broad-Based Black Economic Empowerment Strategy

• The Codes of Good Practice on Broad-Based Black Economic Empowerment

• National Strategic Plan (NSP) on HIV and AIDS

• Sexual Harassment Policy


5. ORGANISATIONAL STRUCTURE


ENTITIES REPORTING TO THE MECThe following entity reports to the MEC for Agriculture and Rural Development:

Name of Entity Legislative Mandate

Financial Relationship

Nature of Operations

Gauteng Department of Agriculture and Rural Development (GDARD) Cost Recovery Trading Entity

Governed by Regulation 19 of the Treasury Regulations

The Department Charges a 5% Management Fee form the Trading Entity to manage Revenue collection.

The Department’s Cost Recovery Trading Entity recovers costs in the following areas:• Veterinary Services and

Conservation – CITES, export certification and post-import control revenue and associated costs.

• Conservation – Visitor services collections and associated costs.

• Compliance and Enforcement – Section 24G NEMA Administrative fines as stated above.


6. FOREWORD BY THE MEC

I am happy to present our fifth Annual Report of the

department of Agriculture and Rural Development to the

citizens of Gauteng for the financial year 2013-14.

Let me start by introducing our new Head of Department,

Ms Thandeka Mbassa, who joined the department in

March 2014. She has come in place of Ms Simangele

Sekgobela who served the department with determination

for the past two years.

Once again the department has made significant strides

towards fulfilling our mandate on Agriculture, Rural

Development, Environment and Conservation towards

our vision of building “Vibrant, equitable and sustainable

communities that contribute to Food Security for all,

protected and enhanced environmental assets and

natural resources.”

The state of Agriculture in Gauteng revealed that

agriculture in Gauteng is thriving and a big contributor to the economy of Gauteng. This was because we

committed ourselves to Sustainable Agrarian Reform inclusive with thriving small holder and commercial

farmers. We are pleased to report that we have promoted and supported a number of agricultural cooperatives,

small holder and commercial farmers throughout the value chain. This included agro-processing facilities,

skills development, business development, access to finance and markets, farming equipment, and on and

off-farm infrastructure programs.

According to Stats SA, 2013c, even though the Share of Primary Agriculture contributes less than 1% to

Gauteng’s GDP, the sector has impacted positively on employment creation. More investment in the sector in

future will have a multiplier effect on employment creation. It is also important to note that the true value of the

sector is in forward and backward linkages of Manufacturing which contributes 14,2% to Gauteng’s GDP. This

includes Agro-processing of food, beverages, tobacco, textiles clothing, leather, etc.

It is during this financial year that we managed to make considerable strides in improving rural services to

support livelihoods. Guided by our Comprehensive Rural Development Program (CRDP) and the social

compact signed with all roleplayers, including the Councils of Stakeholders, we provided the Comprehensive

Agricultural Support Program to rural farmers.

A number of rural roads were surfaced, a number of rural houses were built and some rural schools were

renovated. About 1800 youth from our four rural nodes were recruited to the NARYSEC program, skilled and

placed in various infrastructure development projects. The outcome of this work is improved rural household

and community livelihoods. More work still needs to be done to de-racialize the rural economy and to provide

basic services and infrastructure.

We’ve also trained farmers on water saving technologies and through the implementation of our Wetlands

management plans, we engaged youth to rehabilitate ten wetlands including the Colbyn valley in Tshwane and

Pan Cluster in Ekurhuleni.


Our work towards reducing impacts of climate change and improving air quality, resulted in the development of

the Greenhouse Gases Inventory and air management plan implementation, including a Basa Njengo Magogo

project or making fire upside down. The implementation of our Climate Change Strategy on mitigation and

adaptation must be upscaled.

To contribute to sustainable use and management of land and waste, we have been 80% effective in responding

to the Environmental Impact Assessment applications for various land developments. We facilitated the

Clean and Green campaigns including Bontle Ke Botho which resulted in planting of over 666 252 trees and

rehabilitating illegal dumps into mini parks and food gardens.

A lot of work has been done together with the National Department of Water and Environment Affairs to address

the Acid Mine Drainage challenges in the Western basin such that acid mine water has stopped decanting. A

new pumping plant was installed at the Eastern basin and work is in progress in the Central basin. The situation

is under control as a result of the Intervention of the Inter Ministerial Committee. We also developed a 5-year

plan on acid mine drainage in line with the national long-term plan. Going forward this plan will be implemented

to address this risk to the environment.

To protect our Biodiversity, we manage six nature reserves with many plant and animal species. These are

used for educational and Landcare programs with school children and youth. We have developed the Nature

Conservation Bill aimed at sound management of our Biodiversity. We were the first Province to Designate

Environmental Inspectors who ensured that all those who transgress environmental laws are successfully

prosecuted.

My sincere gratitude goes to the HOD: Ms Thandeka Mbassa for steering GDARD in the right direction,

the Premier of Gauteng, my MEC colleagues for their leadership and guidance, the Legislature led by the

Speaker, the Portfolio Committee led by Hon. Sikhakhane for their oversight work, MMCs and officials from

local government, all departments and sector partners, and many diverse role players in the sectors and other

stakeholders and my family for their support.

Thank you .

Ms Nandi Mayathula-Khoza

Member of the Executive Council: Agriculture, Rural and Social Development


MESSAGE FROM THE HOD

This is the Executive Summary of the Annual Report

of the Gauteng Department of Agriculture and Rural

Development for the 2013/14 financial year. The

2013/14 financial year is significant as it brings to

a close the 4th five-year term of government. The

report outlines significant services that were rendered

by the Department to the citizens of Gauteng, the

Department’s governance structures, the Department’s

human resources, the annual financial statement of

the Department and the Department’s Cost Recovery

entity. Challenges faced by the Department in each of

these areas are also highlighted.

The expenditure for the 2013/14 financial year was

R550,741,000 of the appropriated budget of R554,

177, 000, representing an expenditure of 99.4%.

Expenditure trends are consistently improving, an

illustration of the Department’s improved ability to

spend on its conditional grants and Equitable Share allocation. The main reason for the under spending of

0.6% was a result of vacancies which remained unfilled for a greater part of the financial year due to difficulty in

obtaining suitably qualified individuals. The Accounting Officer’s Report and Human Resource Management

section outlines this challenge in greater detail and the plans to address this challenge in the coming financial

year.

• The approval of two major Plans: the Gauteng 20-Year Food Security Plan and the Gauteng 5-Year Acid

Mine Drainage (AMD) Plan. The Gauteng 20 Year Food Security Plan sets out a portfolio of targeted

strategic programmes to address food insecurity in the Province in a comprehensive way, reducing the

2011 levels of hunger and inadequate access to food by half by 2030. Plans are in place to develop a

strategy that will focus on urban agriculture that will deal with food insecurity in large cities like Tshwane

and Johannesburg Metros.

• The Gauteng 5-Year Acid Mine Drainage Plan gives effect to the provincial response to the mine water

contamination challenge in the Province. The Plan outlines various passive treatment and piloting options

and institutional and financial models to address the challenge. It also supports and complements

national initiatives by the Department of Water Affairs to address this challenge.

In real terms, the contribution of the agriculture sector to the Gauteng economy is estimated to be at a low of

0,4% and this can lead to the conclusion that agriculture is not important in Gauteng. However, according to

a report by OABS Development, the value of the agricultural contribution should be looked at in the context of

backwards and forward linkages. According to this study that was commissioned by GDARD, “ the contribution

of agriculture based on gross operating surplus of sectors like food, beverages, tobacco, textiles, clothing,

leather, wood and wood products, could be as high as 38% in the case of the national economy and as high

as a 33.5% in the case of Gauteng.” Efforts to transform and grow the agricultural sector should therefore focus

on secondary agriculture, not ignoring the importance of primary agriculture in food security, poverty alleviation

and job creation.


Gauteng falls mainly within the highly intensive, diversified commercial and subsistence agricultural zones

of South Africa and is known for grain cropping, ranching and dairy, poultry and piggery farms. A significant

component of the agricultural sector is maize production, with Sedibeng, West Rand and Greater Tshwane the

major maize producing areas in the province. Ground-nuts, sunflowers, cotton and sorghum are grown in the

Bronkhorstspruit, Heidelberg and Cullinan areas.

Gauteng Province commands the greatest share of South Africa’s maize exports, followed by the Kwazulu-

Natal and Western Cape Provinces. Most exporters of maize are situated in Gauteng Province and the greatest

proportion of maize trading occurs through the Randfontein grain market. Maize is also exported through two

major harbours in Durban and Cape Town. Maize is the most important grain crop in South Africa, and is both

the major feed grain and the staple food for the majority of South Africa’s population.

The Maize Triangle is a mitigation strategy to curb the impact of high food prices on poor households of

Gauteng. The Maize Triangle Programme is aimed at supporting the maize producers of Gauteng Province in

order to:

• Unleash their potential to create and develop income-generating activities and sustainable decent

employment;

• Reduce poverty, develop human resource capacities and knowledge;

• Strengthen competitiveness and sustainability and improve social and economic well-being; and,

• Contribute to sustainable human development.

The Department achieved 83% of the targets set for the 2013/14 financial year. The following specific

achievements are worthy of mention:

The Maize Triangle Programme which has been running in Gauteng Province from 2009 with one of the pillars of

the Programme being to establish domestic and international markets for maize farmers. Zivuseni Agricultural

Cooperative comprised of 35 local small producers exported 72 tons of maize whilst Siyibane Farming Project

exported 164.14 ton to Lesotho. This was in partnership with the WFP, which is an internationally recognized

agency of the United Nations (UN). More farmers are expected to export maize and dry beans after the harvest

for the current planting season.

To date, through partnership with the Rand Water Foundation, 276 farmers within the Maize Triangle (Tshwane,

Ekurhuleni, Sedibeng, and West Rand) have been supplied with production inputs (maize seeds, fertilizers,

herbicides and fuel), training and capacity building. In addition, 31 maize-producing farms have been settled

within the Maize Triangle through the Land Reform Farm Programme (DRDLR) and supported with infrastructure

such as boreholes, storage facilities, fencing, irrigation systems, farm implements and production stock. The

operational sustainability of support infrastructure has been identified as an area that requires attention. Plans

are in place to develop a strategy that will address sustainability of infrastructure and ensuring that it is well

maximum utilization of this infrastructure

The Maize Triangle Revitalization project has so far created 765 jobs during the planting and harvest seasons

and the farmers are assisted with various interventions such as on- and-off-farm infrastructure, mechanization

and production inputs.


Aligned to the approved Agricultural Co-operative Plan, 135 co-operatives from Tshwane, Sedibeng, West

Rand, Ekurhuleni and City of Johannesburg received support in the form of on- and off-farm infrastructure,

production inputs such as chickens, feed, maize, seedlings, herbicides, etc., and training and capacity

building; 23 co-operatives received contracts from government and successfully supply produce to hospitals

and orphanages. However, it is acknowledged that more support to co-operatives is needed to promote

sustainability. The department is particularly proud of the most successful agricultural cooperatives in Gauteng,

i.e. the Winterveldt Citrus Cooperative, Ikhwezi Cooperative (overall winner of the Agribusinesswoman of the

Year 2013 - Tshwane), Maponya Farming Project (Tshwane), Bantu Bonke Agricultural Co-operative (Midvaal),

Konke Sinako Co-operative (Emfuleni) and Yase Chaba Co-operative (West Rand).

The agro-processing programme assisted farmers within the Maize Triangle with packaging facilities, grain

silos and abattoirs. Agro-processing projects numbering 28 were supported with infrastructure such as citrus/

vegetable pack houses, egg grading machines; vegetable packaging machines linked to Gauteng Economic

growth and development Strategy (GEGDS). This is aligned to the Maize Triangle Strategy to intervene along

the value chain and in related industries like animal production.

As part of the farmer support programme in the Province, a total of 143 smallholder farmers were assisted with

production inputs: 30 farmers were provided with piggery production inputs, 30 smallholders were provided

with poultry production inputs and a total of 83 smallholder farmers were supported with maize production

inputs.

During the year 2013/14, in collaboration with five universities in Gauteng (University of Johannesburg, Wits

University, University of Pretoria, Tshwane University of Technology and Vaal University of Technology), 50

biotechnology bursaries were awarded and 25 internship opportunities created.

GDARD’s performance in processing development applications (through the Environmental Impact Assessment

system) remain the best the country, and that accounts for more than 40% of the development applications

in the country. The Department has further improved efficiencies in this important regulatory area, resulting in

314 Environmental Impact Assessment applications processed in 2013/14. To further improve efficiency of

administration and provide a reliable service in this area of work, the Department finalized the development

of the Environmental Impact Assessment Review System. The system will improve review turnaround, ensure

consistent decision making and improve quality of decision making, thereby providing a reliable investment

climate/regime for developers. Furthermore, the Department has formed a strategic alliance with the recently

launched Gauteng Investment Centre, providing investor consultation services on the Environmental Impact

Assessment process in order to effect reduced turnaround time for development applications by domestic and

foreign investors. These interventions are aimed at reducing red tape and creating a conducive environment

for business development in the Province. Ensuring effective compliance and enforcement still remains a

challenge and through the organizational re-engineering process that is underway, the capacity of this unit will

further be improved.

The designation of Environmental Management Inspectors (EMI) at local authority level is a key national

indicator forming part of the delivery agreement between the President and the Minister of Environmental

Affairs. GDARD was the first province in the country to designate 3 officials as EMIs at Emfuleni Municipality.

During the year the MEC designated a total of 27 municipal officials as EMIs.


In order to respond to the global challenge of climate change, it is important that Parties to the United Nations

Framework Convention on Climate Change take measures to measure, report and verify greenhouse gas

(GHG) emissions. In this regard, the Department in support of the National Climate Change Response

Strategy undertook the development of the Gauteng Greenhouse Inventory. Phase 1 of the GHG Inventory was

completed in this year, proving a framework for the measurement and reporting of GHG emissions from the

agriculture, transport, energy, waste and built sectors. Phase 2, which will be undertaken in 2014-15, will entail

the collection of emission data and uploading into the GHG Inventory.

An award was conferred on the Rust de Winter livestock project (under the auspices of the Animal Health

programme), by the World Veterinary Association in conjunction with the OIE (World Animal Health Organisation)

for effective public-private partnerships towards the delivery of services during the World Veterinary Congress.

The project went further to win the CPSI’s (Centre for Public Service Innovation) overall award for innovative

partnerships under the ‘Innovator of the year’ category and was a third award during the Premier’s Service

Excellence Awards under the ‘Best project’ category.

The department continued with its coordination function across the province with regards to development in the

rural areas. In November 2013, The Minister of Rural Development and Reform, Minister Gugile Nkwinti, and

the MEC of Agriculture and Rural Development, MEC Nandi Mayathula-Khoza, jointly launched the Akwande

Food Project, one of the biggest community food gardens projects ever to be established in Kwa-Sokhulumi.

As part of the implementation of the Gauteng Rural Social Compact, GDARD assisted two stakeholders,

namely NAFU and WARD. NAFU members received first aid, fire-fighting and mentoring training and WARD

members received sewing machines and over-lockers to assist them in improving the livelihoods of members

of sewing cooperatives.

GDARD continued with the facilitation of Equity Schemes which resulted in successfully reaching an agreement

with one of the flower processing companies in Mogale City. The agreement will see the employees having an

equity stake in the company as part of the transformation of the agribusiness sector. The company is also an

exporter of processed flower products.

Other achievements not mentioned here can be found under the Accounting Officer’s report and in the

Performance Information section.

The high rate of turnover amongst beneficiaries of our programmes is of concern. Focus in the 2014/15

financial year will be on improving and strengthening monitoring and evaluation and improving extension

support services.

The contribution of primary agriculture to the Gauteng economy is minimal; however, primary agriculture has

a crucial role to play in alleviating food insecurity and job creation. The department is putting mechanisms

in place to strengthen emerging farmer support structures that will ensure sustainability of projects. Such

support will address challenges like access to markets and finance and supply chain dynamics and risks.

It is envisaged that intervention in this sub-sector will contribute to the transformation more black farmers

graduation to commercial agriculture. of emerging

The fact that Gauteng houses the largest agricultural companies in South Africa and is often referred to as

the “gateway to Africa” highlights the importance of agri-business and agro-processing in Gauteng. The

Department will embark on a more aggressive implementation plan of the Agro-Processing Strategy. The role

of strong partnerships with government departments, organized agriculture, and the private sector, tertiary and

research institutes is a critical success factor of this plan.


We continue to improve working relations with our stakeholders in the agriculture, environmental, veterinary

services and rural development sectors. The various projects we have collaborated on with our partners (within

and outside government) have assisted in further strengthening these partnerships. The Department formed

a strategic alliance with the recently launched Gauteng Investment Centre, providing investor consultation

services on the Environmental Impact Assessment process in order to effect reduced turnaround time for

development applications by domestic and foreign investors. This is to reduce bureaucracy and improve the

ease of doing business in the province.

In conclusion, I wish to express my appreciation to MEC Nandi Mayathula-Khoza for her leadership and

contributions made to the Department during the financial year and the five-year term of government. I would

also like to thank the Department’s senior management, in particular Ms Priscilla Pietersen, who held the fort

as Acting Head of Department and the staff of GDARD who are a team of professional and highly dedicated

individuals. Our achievements in the 4th five-year term of government have positioned us well for even

greater advances in our strategic initiatives as we enter into the 5th five-year term of government. We remain

committed to ensuring Guateng is a food secure province and that agriculture remains one of the important

drivers to economic growth in Gauteng.

Ms Thandeka Mbassa

Head: Agriculture and Rural Development


PART B: PERFORMANCE INFORMATION


1. Statement of Responsibility for Performance Information for the year ended 31 March 2014

The Accounting Officer is responsible for the preparation of the Department’s performance information and for

the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of internal control designed

to provide reasonable assurance as to the integrity and reliability of performance information.

In my opinion, the performance information fairly reflects the performance information of the Department for

the financial year ended 31 March 2014.

-------------------------------Ms Thandeka Mbassa

Accounting Officer


2. AUDITOR GENERAL’S REPORT: PREDETERMINED OBJECTIVES

Please see paragraphs 14 – 18 on the Auditor-General’s report on Pages 161 to 162 under Part E.


3. OVERVIEW OF DEPARTMENTAL PERFORMANCE

3.1. Service delivery environment

The 2013/14 Annual Performance Plan (APP) of the Department of Agriculture and Rural Development

(GDARD) continues to be informed by the department’s Five Year Strategy as contained in the Medium Term

Strategic Framework (MTSF) 2009/14. The introduction of the Outcomes Based Approach to planning in 2010

has resulted in the amendment of the 2009/14 Strategic Plan.

The Annual performance of GDARD is thus guided by the 2010/14 Strategic Plan that is linked to the mandate

period of the current administration with particular emphasis on:

a) An outcome based performance approach to planning and monitoring based on eight identified provincials Outcomes that derived from and are aligned to national Outcomes and;

b) Agriculture, food security, protecting the environment, rural development and service delivery.

In 2010, the new provincial administration, in line with national government, introduced the eight priority areas

of delivery which the Department of Agriculture and Rural Development (GDARD) is responsible to implement:

• Outcome 5a: Vibrant, equitable and sustainable and rural communities and food security for all

• Outcome 5b: Protected and enhanced environmental assets and natural resources

• Outcome 8: An efficient, effective and development oriented public service and empowered, fair and inclusive citizenship.

Other than the changes in focus as per the new Outcomes-based approach the external and internal

environment of performance by GDARD remains unchanged.


3.2. Service Delivery Improvement Plan

The Department has completed a service delivery improvement plan. The tables below highlight the

service delivery plan and the achievements to date.

KEY DEPARTMENTAL SERVICES AND ASSOCIATED STANDARDS

KEY SERVICE SERVICE BENEFICIARY

CURRENT STANDARD DESIRED STANDARD

Establishment of individual homestead or backyard gardens.

Farmer Support and Development

-Food security

To serve mainly the resource -poor communities in Gauteng. The target group includes the elderly, the unemployed, women, youth, the people with disabilities and HIV/AIDS affected/infected households.

Quantity: 11004 Homestead or backyard gardens established

Quantity: 12 000 homesteads or backyard gardens

Quality: Number of complaints received

Quality: Number of complaints received

• Consultation Initial meeting with ward councillors ,ward committees ,community development workers-CBOs or NGOs

and

Feedback through field staff (Agricultural Extension officers)

• Consultation Initial meeting with ward councillors ,ward committees, community development workers-CBOs or NGOs

and

Feedback through field staff (Agricultural Extension officers)

• Access By approaching their ward councillor, ward committees, community development workers, CBOs or NGOs

Or

By approaching the Agricultural staff at GDARD: at 11 Diagonal Building, Diagonal Street, Newtown or contact them on 011 240 2500

• Access By approaching their ward councillor, ward committees, community development workers, CBOs or NGOs

Or

By approaching the Agricultural staff at GDARD: at 11 Diagonal Building, Diagonal Street, Newtown or contact them on 011 240 2500

• Courtesy We will respect you and assure you of quality services



• Open & Transparency

Information on participants and areas that have received tools, seeds, materials and equipment is available and can be viewed on request. Please contact 011 240 2500 for further information.


Information on participants and areas that have received tools, seeds, materials and equipment is available and can be viewed on request. Please contact 011 240 2500 for further information.

• Information Monthly feedback as to the status of participant identification, training and delivery,

• Information Monthly feedback as to the status of participant identification, training and delivery,

• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email the departmental complaints management line on: [email protected]

• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email the departmental complaints management line on: [email protected].

• Value for Money

There will be no costs involved to the beneficiaries

• Value for Money

There will be no costs involved to the beneficiaries

Time: Commencement of the implementation of gardens as soon as tools, seeds, materials and equipment are delivered at the warehouse and training has been completed.

Time: Commencement of the implementation of gardens as soon as tools, seeds, materials and equipment are delivered at the warehouse and training has been completed.

Cost: (budget) Not specified Cost: Source (budget)

CASP Grant Budget

R 12,000,000Human Resources: 60 Extension

OfficersHuman Resources:

85 including Extension officers and other agriculture technical staff

mailto:[email protected]







Biodiversity permits issues

Livestock traders, hunters and the general public

Quantity: 6546 permits Quantity: 5000 permits

Quality: Number of complaints received regarding the above


• Consultation There will be an annual workshop with stakeholders.


• Access You can apply for a live game permit by approaching the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500

• Access You can apply for a live game permit by approaching the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500




There are set guidelines for the approval of live game permits which will be used to evaluate the applications. For a copy please contact 011 240 2500.


There are set guidelines for the approval of live game permits which will be used to evaluate the applications. For a copy please contact 011 240 2500.

• Information Information as to the status of your application will be provided within 4 working days





• Value for Money

Price is variable depending on nature of application- cost range from R 50 to R 2000.

A list of application fees is available from the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500

• Value for Money

Price is variable depending on nature of application- cost range from R 50 to R 2000.

A list of application fees is available from the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500

Time: Permits for live game will be issued or refused on correct application within 4 working days

Time: Permits for live game will be issued or refused on correct application within 4 working days

Cost: (budget) R 5,350, 000 Cost: (budget) No direct costs except for HR

Human Resources: 35 Human Resources: 42

Issuing of nature conservation permits –all other permits excluding live game

Livestock traders, hunters and the general public

Quantity: 2000 permits Quantity: 3800 permits










• Access You can apply for a permit by approaching the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500

• Access You can apply for a permit by approaching the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500




There are set guidelines for the approval of permits which will be used to evaluate the applications. For a copy please contact 011 240 2500.


There are set guidelines for the approval of permits which will be used to evaluate the applications. For a copy please contact 011 240 2500.





• Value for Money

Price is variable depending on nature of application cost range from R 50 to R 2000.

A list of application fees is available from the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500.

• Value for Money

Price is variable depending on nature of application cost range from R 50 to R 2000.

A list of application fees is available from the permit office at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500.

Time: Permits will be issued or refused on correct application within 15 working days

Time: Permits will be issued or refused on correct application within 15 working days

Cost: (budget) R 5,200,000 Cost: (budget) R 5,200,000

Human Resources:

30 Human Resources:

30








Issuing of environmental authorisations in terms of the National Environmental Management Act(NEMA)

Developers Quantity: Percentage of RODs issued within legislated timeframe (80%)

Quantity: Percentage of RODs issued within legislated timeframe (80%)

• Consultation • Free consultation on each application submitted allowed

• Monthly meetings with local authorities

• Quarterly meetings with developers

• MEC EIA Open Day/stakeholder workshops

• Consultation • Free consultation on each application submitted allowed

• Monthly meetings with local authorities

• Quarterly meetings with developers

• MEC EIA Open Day/stakeholder workshops

• Access You can apply for an authorisation by approaching the EIA administration unit at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500.

• Access You can apply for an authorisation by approaching the EIA administration unit at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500.





There are set guidelines for the issuing of Records of Decisions (RODs) which will be used to evaluate the applications are available at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500


There are set guidelines for the issuing of Records of Decisions (RODs) which will be used to evaluate the applications are available at 11 Diagonal Building, Diagonal Street, Newtown or contact 011 240 2500

• Information Your application will be acknowledged within 14 days. GDARD will review and respond to your initial application within 30 days for all Basic Assessment applications.

• Information Your application will be acknowledged within 14 days. GDARD will review and respond to your initial application within 30 days for all Basic Assessment applications.

• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email: EIA [email protected] or the departmental complaints management line on: [email protected]

• Redress Please approach the officer who assisted you or their supervisor. Alternatively you can email: EIA [email protected] or the departmental complaints management line on: [email protected]

• Value for Money

Submission of EIAs is free. However an Independent consultant needs to be appointed for each application

• Value for Money

Submission of EIAs is free. However an Independent consultant needs to be appointed for each application

mailto:EIA [email protected]










Time: • The issuing of a decision within 30 days of the date of submission of the complete basic assessment report.

• The issuing of a decision within 45 days of assessing of the EIA report.

Time: • The issuing of a decision within 30 days of the date of submission of the complete basic assessment report.

• The issuing of a decision within 45 days of assessing of the EIA report.

Cost: (budget) Not specific – based on number of applications received

Cost: (budget) Not specific – based on number of applications received


CURRENT STANDARD DESIRED STANDARD 2013/14

Issuing of veterinary certificates

(exports)

Exporters (and agents) of animal and animal products

Quantity: 14079 certificates Quantity: 10,0000 certificates

Quality: Certificates will contain accurate and relevant information

OR

Number of complaints received regarding the above

Quality: Certificates will contain accurate and relevant information

OR

Number of complaints received regarding the above

• Consultation We will host quarterly stakeholder meetings with exporters

• Consultation We will host quarterly stakeholder meetings with exporters


• Access You can obtain an export certificate by providing the relevant documentation at GDARD regional offices:

Germiston Office, C/o Victoria & Odendaal Streets;

Randfontein office at No 7 C/o Main & Maugham Streets; or

Pretoria office at 592 Vermeulen Street, Arcadia. Or contact 011 240 2500

• Access You can obtain an export certificate by providing the relevant documentation at GDARD regional offices:

Germiston Office, C/o Victoria & Odendaal Streets;

Randfontein office at No 7 C/o Main & Maugham Streets; or

Pretoria office at 592 Vermeulen Street, Arcadia. Or contact 011 240 2500




The prescribed National and provincial guidelines will be followed in the issuing of this permit. For a copy please contact 011 240 2500


The prescribed National and provincial guidelines will be followed in the issuing of this permit. For a copy please contact 011 240 2500

• Information Provision of correct information regarding export permits requirements within 48 hours in a friendly and efficient manner.

• Information Provision of correct information regarding export permits requirements within 48 hours in a friendly and efficient manner.


• Redress Please approach the officer who assisted you or their supervisor who will guide you with the Vet Services Complaints Procedure. Alternatively you can email the departmental complaints management line on: [email protected]

• Redress Please approach the officer who assisted you or their supervisor who will guide you with the Vet Services Complaints Procedure. Alternatively you can email the departmental complaints management line on: [email protected]

• Value for Money

Costing of Service is done at a cost as determined by GDARD (transport time included)

• Value for Money

Costing of Service is done at a cost as determined by GDARD (transport time included)

Time: The issuing of correct permits within 48 hours after the receipt of the complete applications.

Time: The issuing of correct permits within 48 hours after the receipt of the complete applications.

Cost: (budget) R 1, 500,000+ R 4, 000, 000 (from cost recovery)

Cost: (budget) Funds generated to cost recovery

Human Resources:

15 staff members Human Resources:

18 staff members

Sign off:

Ms. Kgari Manotwane SDIP Champion

Ms. Abimbola Olowa Acting DDG: TS

Ms. Priscilla Pietersen Acting HOD

Ms. Nandi Mayathula- Khoza MEC






STRATEGIC OUTCOME ORIENTED GOALSOutcome 7: Vibrant, equitable and sustainable and rural communities and food security for all

Outcome 10: Protected and enhanced environmental assets and natural resources

4. PERFORMANCE INFORMATION BY PROGRAMME

PROGRAMME 1: AdministrationPurpose:

To provide leadership, management, efficient and effective financial management, human resource

management and development, facilities management services, professional legal services and enforcement

services, communication and awareness as well as knowledge and project management services to the

department in response to Outcome 8 (An efficient, effective and development oriented public service and

empowered, fair and inclusive citizenship); through the following strategic objectives, in line with the 5 Year

Strategic Plan of the Department.

Sub-programme

1. Senior Management

2. Office of the MEC

3. Financial Management

4. Corporate Services

Strategic outcomes (as per 2010/14 strategic Plan)

Output 1: Service delivery quality and access

Output 2: Human resource management and development

Output 3.1: Efficient and effective governance

Output 3.2: Business process, systems, decision rights and accountability

Output 8: Promotion of active and responsible citizenship


Strategic objectives, performance indicators planned targets and actual achievementsStrategic objectives

Legal Services

Legal Services provides an integrated corporate legal service and litigation management support to assist

the department to meet its objectives. The branch ensures that the department is protected from legal risks

by offering legal advisory service to the various branches within the department; vetting legal documents

and appeals administration to ensure legal defensibility and compliance with the Promotion of Administrative

Justice Act and the Promotion of Access to Information Act; commenting on draft legislations and regulations

that have a direct or indirect impact on the operations of the Department; and, management of cases instituted

by or against the department.

Financial Management

The Finance Branch is headed by the Chief Financial Officer (CFO) and ensures efficient, effective and

transparent financial management to the Department, in line with the Public Finance Management Act (PFMA,

1999 as amended) and other applicable laws and regulations. The Branch’s strategic objectives are to ensure

sound Financial Management, Financial Accounting and Supply Chain Management support which includes

Asset Management.

The partnership with the Gauteng Audit Section (GAS) was strengthened during the year and greater cooperation

between the Department and GAS was achieved. This resulted in audits being executed as planned for the

financial year. This assisted the Branch to improve on its controls.

During the course of the financial year, the Branch improved on the payment of invoices within 30 days,

clearing of suspense account, reducing debtors and the overall quality of the financial issues. Issues of risk

assessment and fraud prevention interventions were addressed timeously during the year under review and

mitigating controls to reduce the impact thereof were implemented.

The department is busy recruiting a CFO as previous efforts were unsuccessful. Currently the Director: Supply

Chain Management is acting as CFO.

Transformation

The strategic objective of the Transformation Branch is to promote and facilitate the transformation in internal

and external departmental programmes. The Transformation Branch ensures that processes and projects

are underpinned by transformation fundamentals and contribute to the Broad-Based Black Economic

Empowerment (BBBEE).


The branch prioritises the following areas:

• The mainstreaming of designated groups (women, youth, black people and people with disabilities) in

relevant internal and external departmental projects and processes;

• The introduction of projects and processes that facilitate and promote the development of black

enterprises, in particular Small Medium and Micro Enterprises, and the transformation of the provincial

agriculture sector through the implementation of the AgriBEE Charter, and codes of good practice;

• The enhancement of various social development and empowerment programmes such as HIV and AIDS

and employee health and wellness in line with Outcome 2 of the province;

• Capacity building and awareness programmes that aim at improving social cohesion and building vibrant

sustainable communities; and,

• Outreach programmes targeting the designated groups.

Some of the main achievements for the 2013/2014 financial year include but are not limited to the following:

Cell C Take a Girl Child to Work Day - Transformation Branch hosted 58 Learners and 5 educators from Usizo

Lwethu Special School, Daveyton, on 30 May 2013, as part of mainstreaming.

An event to celebrate Women’s Month was held in Vanderbijlpark on 30 August 2013 for 211 women at a farm

owned by Ms Elsie Motloung, a WARD member. Starter packs and farming equipment were distributed on site.

As part of advocacy around Gender Mainstreaming, the branch coordinated the attendance of 8 WARD

members to the Women Empowerment Gender Bill (WEGE) Workshop held in Klerksdorp. WARD members

also attended International Women’s Day.

Commitment to youth development continued with Transformation and Communication Branches partnering

with Meadowlands Youth Social Development (MYSD) to host the June 16 commemoration, a cleaning campaign

in Dorothy Nyembe Park and the Zone 10 Meadowlands dumping site. A total of 180 youth participated.

The Agri-Business & Young Farmer of the Year Awards 2013 was attended by approximately 470 youth at St

George Hotel in Pretoria. Monetary prizes were won by youth to further expand their agri-farming businesses.

A career expo was held at BraamFischerville Multi-purpose Centre on 14 June 2013. Transformation, HRD staff

and staff from Department of Education attended; 66 learners (2 with disabilities) attended.

The branch participated in the Earth Science Week from 16 to 20 September 2013 organized by Sci-Bono

Science Centre in Newtown. The event was attended by 226 learners from different GPG schools. The GDARD

2013 Workers Day was held 10 May 2013. Approximately 664 workers attended the event.

Engagements with the military veterans continued throughout the year to track progress on the support

provided by the department.

The Overall Winner of the Agri-Business Winner of the Year Awards (ABWYA) 2013 was Ikhwezi Project, led by a

disabled woman and with 60% of its members as PWDs. Furthermore, GDARD donated seedlings to a project

owned by people with disabilities in Soweto Association for People with Disabilities. The branch attended the

16 Days of Activism event at Isipho Sethu Special School at Vosloorus.

In terms of Employment Equity, the representation of women at Senior Management level is 46% and

departmental overall is 47%. People with disabilities (PWDs) are 2.6% and black people constitute 91% of

GDARD staff complement


Knowledge Management

The Knowledge Management Branch supports the delivery of GDARD Outcomes 5a, 5b and 8 by providing services,

information technology (IT) and information systems to enable business processes for sustainable agriculture, rural

development, use of natural resources and related support functions.

The services provided by the Knowledge Management branch include:

• Acquisition, development and implementation of IT and information systems

• Ensuring that required GDARD IT systems are available to users

• Resolution of IT incidents and problems that arise in the course of GDARD’s service delivery

• Storage and retrieval of both hard and soft copy information.

During the period under review, the Knowledge Management Branch achieved the following, amongst others:

• Implemented new wired and wireless IT network connectivity at GDARD’s new head office within budget and on

time

• Ensured that continuous availability of IT systems was maintained 95% of the time required against a target of 87%

• Resolved 93% of IT incidents and problems within 8 hours against a target of 87%

• Relocated information systems and IT equipment from the former Head Office to new Head Office with minimal

system downtime

• Upgraded Telkom data lines at GDARD regional offices to improve IT system effectiveness

• Implemented 88% of the Auditor General’s recommendations, on IT governance, user account management,

facilities and environmental controls, and IT disaster recovery planning.

In the year ahead, the Branch looks forward to continue contributing to GDARD’s service delivery through implementation

of an IT system to improve efficiency of document management.

Communications

The Communication Branch ensures an increased perception of institutional ownership in the Gauteng citizenship

through a programme of outreach, education, capacity building, information sharing campaigns and key messages

conveyed through appropriate channels and languages.

The main achievements for the Branch in the period under review have been the successful management of a number

of GDARD events, including the Agri-businesswoman of the Year in August, and the coordination of the province-wide

Clean and Green and Bontle ke Botho campaigns that focus on cleaning, greening and developing and nurturing best

environmental practice throughout the year. The Branch also maintained its programme of stakeholder engagement,

media monitoring and media liaison.


Performance Indicators planned targets and actual outputs

Programme 1

Strategic objective/Output

Actual Achievement

2012/2013

Planned Target2013/2014

Actual Achievement

2013/2014

Deviation from

planned target to Actual

Achievement 2013/2014

Comment on deviations

1 Human Resource management and development

1 Human Resource Plan approved

Annual review, approve and implementation of human resource plan in accordance with per prescribed DPSA deadlines

The HR Plan was reviewed and approved, submitted to DPSA.The two HR implementation plans were also approved namely; 6 months implementation report and the annual implementation report

None None

2 Efficient and effective governance

- All received parliamentary matters tracked and resolved as per Provincial Legislature’s timeframes

28 Received parliamentary matters tracked and resolved as per Provincial Legislature’s timeframes

None None

- All public queries received resolved within 3 days (presidential and/or premiers hotline timeframes)

12 Public queries received and resolved within 3 days (presidential and/or premiers hotline timeframes)

None None

- Develop, approve and submit annual performance plan to Provincial Treasury and Legislature according to the National Treasury framework

Approved APP 2014/15 submitted to Provincial Treasury and Legislature

None None

- Develop, approve and implementation of risk management framework as per agreed timeframes

Implemented Risk Management Framework as per the Risk Management Framework

None None

- Prepare and submit 4 quarterly performance reports to Provincial Treasury as per stipulated timeframes

Prepared and submitted 4 quarterly performance reports to Provincial Treasury as per stipulated timeframes

None None

- 4 quarterly Legislature reports prepared and submitted to the Provincial Legislature as per stipulated timeframes

4 quarterly Legislature reports prepared and submitted to the Provincial Legislature as per stipulated timeframes

None None

1 Annual Report published

Prepare and submit annual report by 31 May annually

Annual report submitted by 31 May 2013

None None

- Prepare and submit 12 Programme of Action reports to the Office of the Premier by 7th of each month

12 POA’s submitted to the Office of the Premier by 7th of each month

None None


- Develop, approve and implement GEYODI advocacy and compliance monitoring plan annually

GEYODI Advocacy and Compliance Monitoring Plan developed and approved for 2013/14

None None

Annual Service delivery improvement plans reviewed

Review and submit MTEF SDIP to the Office of the Premier

SDIP submitted to Office of the Premier

None None

1 Citizens Report submitted

Citizens Report submitted to the Office of the Premier

Citizens’ Report 2011/12 submitted to the Office of the Premier

None None

3 - 90% appeals finalised (based on the number received) within legislated timeframe

97.8% of appeals were finalised within legislated timeframe (Annualised amount of appeals received for Q1, Q2, Q3 and Q4 due for finalisation as prescribed by NEMA Regulations)

+9% As a result of good management and organization the target was achieved and exceeded.

- Nature Conservation Bill promulgated

Third Draft of the Nature Conservation Bill has been withdrawn from the pre-certification process with State Law Advisors

-40% The Bill was withdrawn from the pre-certification process to allow for further comments and amendments to the Bill by Stakeholders.

GIAMA U-AMP compiled and submitted to the Provincial Treasury by 30 June 2012


GIAMA U-AMP

compiled and

submitted to the

Provincial Treasury

None None

Budget statement (BS3) submitted to DID and Provincial Treasury


BS3 submitted to

Provincial Treasury and

DID

None None

Prepare and submit main departmental budget in February and adjustment budget in November to the Provincial Treasury

Prepare and submit main departmental budget in February and adjustment budget in November to the Provincial Treasury

Main Departmental Budget 2014/15 submitted to Provincial Treasury on 22 February 2014

Adjustment Budget 2013/14 submitted to Provincial Treasury on 15 October 2013

None None

Prepared and submitted 1 audited Annual Financial Statement to Provincial Treasury within 2 months after the end of the financial year

Prepare and submit 1 audited Annual Financial Statement to Provincial Treasury within 2 months after the end of the financial year

Audited Final Annual Financial Statements (AFS) was submitted to Provincial Treasury and Auditor General 31 July 2013

None None

- Prepare and submit 3 Interim Financial Statements (IFS) to Provincial Treasury within 30 days after the end of quarter

1st, 2nd and 3rd Quarter Interim Financial Statements (IFS) were submitted to Provincial Treasury and Auditor General on due dates

None None

- Prepare, approve and submit departmental demand plan to Provincial Treasury by end April

Demand Plan was submitted to Treasury on 30 April 2013

None None


84% of invoices received per month, paid within 30 days (from date of receipt of invoice/claim

92% of invoices received per month, paid within 30 days (% of total received from date of receipt of invoice/claim)

79% of invoices received this year were paid within 30 days

-14% The target was not achieved as a result of changes in the provincial procurement system (SAP) at the beginning of the financial year (April 2013). Delays in the release of the conditional grant due to changes in the business plans also contributed to late payment of invoices.

4 Promotion of Active and responsible citizenship

- Review, approve and implement communication/ media strategy according to the agreed timelines

GDARD Communication/ Media Strategy was reviewed, approved (by HOD) and implemented.

None None

Performance Indicators

Programme 1

Performance Indicator

Actual Achievement

2012/2013


Actual Achievement2013/2014

Deviation from planned

target to Actual

Achievement 2013/2014


1.1 Reviewed, approved and implemented Human Resource Management plans in accordance with the prescribed deadlines

1 Human Resource Plan approved

Review, approve (by the HOD), implement human resource plan in accordance with the prescribed DPSA deadlines

The HR Plan was approved and submitted to DPSA The two HR implementation plans were also approved namely; 6 months implementation report and the annual implementation report

None None

2.1 Number of parliamentary matters tracked and resolved as per agreed timeframes

- All received parliamentary matters tracked and resolved as per Provincial Legislature’s timeframes

28 Received parliamentary matters tracked and resolved as per Provincial Legislature’s timeframes

None None

2.2 Number of public queries tracked and resolved as per agreed timeframes

- All public queries received must be resolved within 3 days (presidential and/or premiers hotline timeframes)

12 Public queries received resolved within 3 days (presidential and/or premiers hotline timeframes)

None None

2.3 Develop, approve and submit annual performance plan with Provincial Treasury and Legislature according to the National Treasury Framework

- Develop, approve and submit annual performance plan to the Provincial Treasury and Legislature according to the National Treasury framework

Approved APP 2014/15 submitted to Provincial Treasury

None None


2.4 Develop, approved and implemented risk management framework according to the agreed timeframes

1 Global risk assessment register produced, 4 risk assessment reports compile and submitted

Develop, approve (by the HOD) and implementation of risk management framework as per agreed timeframes

Implemented approved Risk Management Framework as per the agreed timeframes

None None

2.5 Number quarterly performance reports prepared, and submitted to Provincial Treasury

- Prepare and submit 4 quarterly performance reports to Provincial Treasury as per stipulated timeframes

Prepared and submitted 4 quarterly performance reports to Provincial Treasury as per stipulated timeframes

None None

2.6 Number of quarterly Legislature reports prepared and submitted to Provincial Legislature as per stipulated timeframes

- Prepare and submit 4 quarterly Legislature reports within 30 days after the end of the quarter.

4 quarterly Legislature reports prepared and submitted to the Provincial Legislature as per stipulated timeframes

None None

2.7 Annual report prepared and submitted by 31 May annually

1 Annual Report published

Annual report prepared and submitted by 31 May annually

GDARD Annual report submitted

None None

2.8 Number of Programme of Action reports prepared and submitted to the Office of the Premier by 7th of each month

- Prepared and submitted 12 programme of action reports to the Office of the Premier by 7th of each month

12 POA’s submitted to the Office of the Premier by 7th of each month

None None

2.9 Developed, approved and implemented GEYODI advocacy and compliance monitoring plan by 31 March 2014

- Develop, approve and implement GEYODI advocacy and compliance monitoring plan according to the agreed timeframes

The approved GEYODI advocacy and compliance monitoring plan was implemented during the financial year.

None None

2.10 Reviewed MTEF SDIP submitted to the Office of the Premier

1 Service Delivery Improvement Plan developed

Reviewed MTEF SDIP submitted to the Office of the Premier

SDIP submitted to Office of the Premier

None None

2.11 Annual Citizens Report submitted to the Office of the Premier

1 Citizens Report submitted

Annual Citizens’ Report submitted to the Office of the Premier

Citizens’ Report 2011/12 was submitted to the Office of the Premier

None None

3.1 Percentage of appeals finalized within legislated timeframe

- 90% appeals finalised (based on the number received) within legislated timeframe

97.8% of appeals were finalised within legislated timeframe (Annualised amount of appeals received for Q1, Q2, Q3 and Q4 due for finalisation as prescribed by NEMA Regulations)

+9% As a result of good management and organization the target was achieved and exceeded.


3.2 Promulgation of Nature Conservation Bill

- Nature Conservation Bill promulgated

Third Draft of the Nature Conservation Bill has been withdrawn from the pre-certification process with State Law Advisors

-40% The Bill was withdrawn from the pre-certification process to allow for further comments and amendments to the Bill by Stakeholders.

3.3 GIAMA User Asset Management Plans (U-AMP) submitted to the Provincial Treasury annually

1 GIAMA U-AMP compiled and submitted


GIAMA U-AMP com-piled and submitted to the Provincial Treasury

None None

3.4 Budget statement (BS3) submitted to DID and Provincial Treasury annually

1 Budget statement (BS3) submitted


BS3 submitted to Provincial Treasury and DID

None None

3.5 Prepare and submit main departmental budget in February and adjustment budget in November to Provincial Treasury

1 Annual Budget compiled

Approved main departmental and adjustment budgets submitted to Provincial Treasury in February and November respectively.

Adjustment Budget 2013/14 (EPRE and APP) submitted to Provincial Treasury on 15 October 2013 and Main Departmental Budget 2014/15 (EPRE and APP) submitted to Provincial Treasury on 22 February 2014

None None

3.6 Prepare and submit 1 audited Annual Financial Statement to Provincial Treasury within 2 months after the end of the financial year

1 Annual Financial Statement submitted

Annual Financial Statement to Provincial Treasury and Auditor General 2 months after the end of the financial year

Audited Final Annual Financial Statements (AFS) was submitted to Provincial Treasury and Auditor General 31 July 2013

None None

3.7 Prepare and submit 3 Interim Financial Statements (IFS) to Provincial Treasury within 30 days after the end of quarter

- Prepare and submit 3 Interim Financial Statements (IFS) to Provincial Treasury

1st, 2nd and 3rd Quarter Interim Financial Statements (IFS) were submitted to Provincial Treasury and Auditor General on due dates

None None

3.8 Departmental approved demand plan submitted within prescribed timeframes to Provincial Treasury

- Approved departmental demand plan submitted to Provincial Treasury by end April

Demand Plan was submitted to Treasury on 30 April 2013

None None


3.9 Percentage of invoices received per month, paid within 30 days (from date of receipt of invoice/claim)

84% invoices paid within 30 days

92% of invoices received per month, paid within 30 days (% of total received from date of receipt of invoice/claim)

79% of invoices received this year were paid within 30 days

-14% The target was not achieved as a result of changes in the provincial procurement system (SAP) at the beginning of the financial year (April 2013). Delays in the release of the conditional grant due to changes in the business plans also contributed to late payment of invoices.

4.1 Approved communication/ media strategy prepared and implemented within agreed timeframes

- Reviewed, approved (by HOD) and implemented communication/ media strategy according to the agreed timelines

GDARD Communication/ Media Strategy was reviewed, approved (by HOD) and implemented.

None None

PROGRAMME 2: Agriculture and Rural Development

Purpose

The programme aims to optimise the contribution of sustainable agriculture to the equitable development of all communities in

the province, by enhancing food security, income, employment and the quality of life; and to control and manage health risks of

animal origin by ensuring healthy livestock production and the availability and affordability of healthy high quality food and animal

products, thus stimulating economic growth and contributing to poverty alleviation and international trade. It responds to the

provincial Outcome 5a: Vibrant, equitable and sustainable rural communities and food security for all.

Sub-programme

1. Farmer Support and Development

2. Research and Technology and Development Services

3. Agricultural Economics Services

4. Sustainable Resource Management

5. Veterinary Services

6. Rural Development Coordination

Strategic objectives/Outputs (as per the 2010/14 Strategic Plan)

Output 1: Sustainable agrarian reform with a thriving small and large farming sector

Output 2: Improved access to affordable, safe and diverse food

Output 3: To improve rural services in order to support improve the livelihoods

Output 4: To ensure improved employment opportunities and economic livelihoods

Output 5: Enabling institutional environment for sustainable and inclusive growth


Strategic objectives, performance indicators planned targets and actual achievements

Strategic objectivesAgriculture

The Agriculture Branch provides an integrated provincial agricultural management system to optimise the contribution

of sustainable agriculture and veterinary services to the economy towards quality of life for all. It provides for the

equitable development of all communities in the Gauteng Province with the aim of enhancing food security, income and

employment through agricultural development. Farmer Support Services provides information and advisory services,

facilitates training of commercial and emerging farmers, as well as organisational development and capacity building

of rural farmer groups, and co-ordinates rural agricultural projects and food security in the Province. Agricultural

Economics and Marketing‘s renders an effective agricultural economic support service to role-players and stakeholders

in agriculture. Technology Development and Support promotes effective agricultural technological development and

support to role-players in the agriculture sector.

A few of the main achievements of the branch in 2013/2014 are listed below:

• Some 143 smallholder farmers were assisted with production inputs; 30 farmers were provided with piggery

production inputs, 30 smallholders were provided with poultry production inputs and a total of 83 smallholder

farmers were supported with maize production inputs.

• Some 28 smallholder farmers were supported with on-farm infrastructure through CASP. These smallholder farmers

were provided with 3 piggery, 6 poultry and 14 hydroponics infrastructures.

• The permanent appointment of 51 agricultural extension officers was a great step in providing extension and

advisory services to farmers. The appointment improved the ratio of officers to farmers to ensure better services

to farmers. The additional extension officers will help the department to reach more farmers and improve service

delivery in the province.

• A total of 1 471 farmers were trained through study groups. The training provided is non-accredited and only 46

farmers received accredited training. The department is in the process of establishing a farmer training institute

in the West Rand that will focus mainly on accredited training in collaboration with the Potchefstroom Agricultural

College, North-West Province. The process of the establishing the institute has been slow to ensure conformity

with accreditation regulations. For this reason, few farmers received accredited training.

• Farmers’ days are an extension methodology whereby farmers are brought together to learn from one another

(farmer-to-farmer) and to interact with service providers; 5 farmers’ days were held.

• Support to establish 12015 homestead food gardens was given to community members in various areas of

Gauteng. Community members in all municipal areas were provided with vegetable seeds, tools, compost and

watering cans.

• Support was also given to 44 community food projects. These were developed by using resources available from

the departmental warehouse, such as seeds and compost.

• Some 50 school food gardens were developed by providing a few garden tools, seeds, compost and watering

cans. The gardens were established in order to complement the Department of Education’s school nutrition

feeding program.

• World Food Day was held 04 October 2013 in Duduza, Nigel. Approximately 951 people attended the event hosted

in conjunction with Ekurhuleni Metropolitan Municipality.

• Through the Maize Triangle Programme, Zivuseni Agricultural Cooperative comprised of 35 local small producers

exported 72 tons of maize whilst Siyibane Farming Project has also exported 164.14 ton to Lesotho. This was in

partnership with the WFP, which is an internationally recognized agency of the United Nations (UN).

• To date, through partnership with the Rand Water Foundation, 276 farmers within the Maize Triangle have been

supplied with production inputs, training and capacity building. In addition, 31 maize-producing farms have

been settled within the Maize Triangle through the Land Reform Farm Programme (DRDLR) and supported with

infrastructure such as boreholes, storage facilities, fencing, irrigation systems, farm implements and production

stock.

• Some 28 agro-processing projects were supported with infrastructure such as citrus/vegetable pack houses, egg

grading machines; vegetable packaging machines.


• The Maize Triangle Revitalization project has so far created 765 jobs during the planting and harvest seasons and

the farmers are assisted with various interventions such as on- and-off-farm infrastructure, mechanization and

production inputs.

• Aligned to the approved Agricultural Co-operative Plan, 135 co-operatives received support in the form of on- and

off-farm infrastructure, production inputs and training and capacity building; 23 co-operatives received contracts

from government and successfully supply produce to hospitals and orphanages. GDARD is particularly proud

of the most successful agricultural cooperatives in Gauteng, i.e. the Winterveldt Citrus Cooperative, Ikhwezi

Cooperative (overall winner of the Agribusiness woman of the Year 2013 - Tshwane), Maponya Farming Project

(Tshwane), Bantu Bonke Agricultural Co-operative (Midvaal), Konke Sinako Co-operative (Emfuleni) and Yase

Chaba Co-operative (West Rand).

• The Department has successfully accelerated the implementation of the Gauteng Biotechnology Strategy, the

highlight of which was the near completion of the Gauteng Biotech Science Park at The Innovation Hub (TIH).

• In collaboration with five universities in Gauteng (University of Johannesburg, Wits University, University of Pretoria,

Tshwane university of Technology and Vaal University of Technology), 50 biotechnology bursaries were awarded, 25

internship opportunities created and 12 students participated in the Gauteng Biotech fundi Awards; 2 students were

awarded travelling scholarships to attend the Agricultural Biotechnology International Congress in Canada and 1

student from ARC was also funded to attend the congress through ABIC Foundation.

• GDARD commissioned 12 research projects in collaboration with universities and research institutions.

• In an effort to deliver on the Agri-Parks, GDARD partnered with the City of Tshwane to accelerate development of

the Soshanguve Agriparks and Rooiwal Agripark.

Rural Development

The Rural Development Branch of GDARD manages the Department’s coordination function across the Province in

regard to development in the rural areas. GDARD coordinates the work of all GPG departments in the designated rural

nodes of Gauteng Province. Some of the main achievements of the department through the branch’s work are outlined

below.

In November 2013, Minister of Rural Development and Reform Gugile Nkwinti and MEC of Agriculture and Rural

Development Nandi Mayathula-Khoza jointly launched Akwande Food Project, one of the biggest community food

gardens projects ever to be established in Kwa-Sokhulumi.

As part of the implementation of the Gauteng Rural Social Compact, GDARD assisted NAFU members with first-aid,

fire-fighting and mentoring training and WARD members with sewing machines, including over-lockers to improve the

livelihoods of members of sewing cooperatives.

GDARD continued facilitating equity schemes as part of transformation in the agribusiness sector in an agreement with

a flower processing and exporting company in Mogale City. The agreement gives employees an equity stake in the

company.

GDARD facilitated training in Conflict Management for Council of Stakeholder (COS) members from all four of Gauteng’s

rural nodes.

GDARD produced and distributed to key stakeholders over 500 copies of the first Gauteng television documentary on

rural development. A Petit-based businessman who watched the documentary in March 2014 is interested in investing

in a rural area. Rural development projects were showcased on AgriTV, working with OneWorld Media.


GDARD conceptualised, implemented and completed the Department Agriculture, Forestry and Fisheries

funded (DAFF) Sokhulumi Community Wetland Rotational Grazing Project that promotes sustainable wetland

and cattle production. The Sokhulumi Cattle Producers Association and Sokhulumi Community Wetland

Rotational Grazing Project Steering Committee were established to ensure sustainable management of the

project.

NARYSEC learners numbering 24 were recruited, bringing the total number of NARYSEC beneficiaries to date

to 2020. About 400 learners, educators and parents attended the Open Days at the University of Pretoria,

Tshwane University of Technology, and Vaal University of Technology. About 52 learners from Mahlenga,

Rusoord and Kudung High Schools visited Agriculture Research Council as part of career exposure.

GPG Departments continued to contribute positively to rural development in the province:

• Department of Community Safety - continued to roll-out the Safety Patrollers Project to cover all the rural

nodes.

• Department of Social Development - funded the Midvaal Youth Development Forum to implement

outreach programmes at Bantu Bonke and Devon Impumelelo Development Centre which support

sustainable livelihoods projects.

• Department of Infrastructure Development - continued constructing the Magaliesburg Boarding facility

which will house 240 underprivileged and orphaned local community learners.

• Department of Education - reported an upward trend in the passing rate of matriculants attributed to,

amongst other factors, the Secondary School Improvement Programme.

• Department of Sport, Arts, Culture and Recreation - the Gauteng Carnival was attended by participants

from all rural nodes. Two library infrastructure programmes were completed in Tarlton and Wedela. The

department also hosted a rural Club Development Tournament which took place at the Bronkhorstspruit

Sport Complex.

• Department of Housing and Human Settlement - worked with Midvaal Local Municipality to obtain

approval to build 500 RDP houses for local residents.

• Department of Rural Development and Land Reform - installed fencing for livestock in Rust de Winter,

Animal Handling facilities in Kwa-Sokhulumi, profiled land reform farms, supported rural enterprises, and

allocated R8.4 million for bulk services for the Mamello Housing project, to be done in partnership with

Gauteng Department of Human Settlements.

Veterinary Services & Sustainable Resource Management

The Veterinary Services and Sustainable Resource Management Branch of the department, which contributes

to the realization of Outcome 5A, has the following strategic objectives:

• Manage the control of animal, zoonotic diseases and animal welfare in Gauteng

• Provide primary animal health care and veterinary awareness to emerging farmers and previously

disadvantaged communities

• Provide a quality assurance service for the state veterinary service

• Provide export certification services

• Manage the provision of safe, wholesome and nutritious food of animal origin.


The Branch’s main achievements during the 2013/2014 financial year include but are not limited to those listed

below.

The lifting of the ban of trade in ruminants and their products by the OIE (World Animal Health Organization),

due to the recent FMD (Foot-and-Mouth Disease) outbreak, resulted in an increase in the number of Veterinary

Export Certificates processed. An inspection team from the OIE visited the country in November 2013 in order

to establish whether the necessary control measures were in place in both the infected and protection zone.

The OIE team was satisfied with the measures taken by Gauteng to control the disease in Karan Beef, which

thus required no further action. A contributing factor, among others, to the rise in demand for export certification

services was the weakening of the Rand which has facilitated the export trade.

The Branch won first prize both locally and internationally for a livestock project which took place in the Rust de

Winter area. The first award was conferred by the World Veterinary Association in conjunction with the OIE for

effective public-private partnerships towards the delivery of services. This award was received at Prague by the

Branch’s executive management, and representatives from the offices of the HOD and MEC, during the World

Veterinary Congress. The team received a trophy and cash to the value of $1000.

The project also won the CPSI’s (Centre for Public Service Innovation) overall award for innovative partnerships

under the ‘Innovator of the year’ category. This was accompanied by a cash prize in the region of R70, 000.00.

The prize money was subsequently used to acquire a mobile livestock handling facility.

The project also won a Premier’s Service Excellence Award under the ‘Best project’ category.

This level of recognition is an indication of acknowledgement of the excellent work which was done by the

branch.


Strategic objectives

Programme 2


Actual Achievement

2012/2013


Actual Achievement

2013/2014

Deviation from planned target to Actual Achievement 2013/2014


1.Sustainable Agriculture Reform with a Thriving Small and Large Farming Sector

168 smallholder farmers supported annually (with production inputs - Letsema/Illima Programme



+3(+2%)

An additional 3 farmers were assisted with piggery production inputs after requests were received.

3 Agri-Expos organised

3 Agri-Expos organised by GDARD

3 Agri-Expos organised by GDARD

None None

1,095 smallholder farmers attending Agri-Expos

800 farmers assisted to attend Agri-Expos

1,165 smallholder farmers attending Agri-Expos

+365(+46%)

More farmers showed interest in the expos and some used their own transport instead of GDARD procured transport. GDARD assisted with entry tickets as well.

- 60 existing agricultural cooperatives supported

74 existing agricultural cooperatives supported

+14(+23%)

Additional requests were received from the cooperatives which lead to the target being exceeded.

- 40 new agricultural cooperatives assisted

40 new agricultural cooperatives were assisted

None None

- 3 farmers assisted to access flower markets

6 farmers were assisted to access flower markets

+3(+100%)

More farmers were assisted than planned, due to an increased demand for flowers.

2,968 hectares ploughed by allocated tractors

6,000 hectares ploughed

6,928 hectares ploughed by allocated tractors

+928(+15%)

More tractors were operational leading to more hectares being ploughed.

4 farmers days held

5 farmers days held 5 farmers days held

None None

51 commodity groups supported



None None

76 farm plans completed



+1(1.25%)

More requests received for the year than planned. Service is demand driven.


81 farm assessment completed



-37(-46%)

The service is demand driven. Fewer requests than planned were received from individual farmers and from the DRDLR. Only requests received are processed.

5 agricultural demonstration trials conducted



None None

1 disaster relief scheme managed



None None

10 early warning reports issued



+3(+25%)

Warnings are climate dependent, and there were more warnings received than anticipated.

49 designs with specifications for agricultural engineering solutions provided



+6(+15%)

Demand driven, more requests were received and attended to than expected.

57 clients provided with engineering advice during official visits



+38(+95%)


140,745 animal vaccinations against controlled animal diseases (anthrax, brucellosis, rabies, NCD)



+20,004(+21%)

Owing to unavailability of S19 vaccine from suppliers in the country, it was decided to rather continue with CA vaccinations as a way of boosting herd immunity towards the disease. S19 is only done in heifer calves but greater coverage which includes older animals is achieved through the use of RB51.

85 primary animal health (PAHC) interactions held



+8(+10%)

The reason for exceeding the annual target is because Zoetis Animal Health provided human and other resources which enabled the department to schedule additional study group meeting.


995 official veterinary movement documents issued

500 official veterinary movement documents issued

3,248 official veterinary movement documents issued

+2,748(+550%)

Demand driven target. More requests were received than expected.

6,065 animal inspections for regulatory purposes



+15(+1%)

As a result of some compartmental registrations expiring, additional inspections had to be done.

53,161 animals sampled/tested for diseases surveillance purposes

50,000 animals sampled/tested for diseases surveillance purposes

57,161 animals sampled/ tested for diseases surveillance purposes

+7,161(+14%)

Re-testing of positive herds contributed to the increased output. The CA testing scheme dictates that all positive herds should be retested twice. Once detected in a herd, activities move towards controlling the disease.

57 inspections to facilities processing animal products and by- product

124 inspections to facilities processing animal products and by- product

408 inspections to facilities processing animal products and by-product

+284(+229%)

The scope of inspections was revised by DAFF with effect 1 April 2013, to include all other facilities processing animal and animal-by products and not only rendering plants, which led to more inspections conducted.

53,161 specimens tested (for animal diseases)



-2,083(-4%)

The target of 55,000 was based on previous years’ specimens tested. Due to a favourable disease situation in Gauteng, with no major disease outbreaks, the number of samples received was less than anticipated.


104,894 tests performed



+46,050(+77%)

The number of tests that are conducted on any single or batch of samples from cases of sick animals in the field is guided by the number of possible diseases which the field veterinarian would like to rule out, i.e. the differential diagnosis. There were more tests done to verify that the disease situation was favourable, and to rule out all possible diseases.

1,845 abattoir inspections conducted (Food related facility inspections)



-194(-9%)

The main reason for underperformance is the fact that 17 (22.7 %) of the abattoirs were dormant and did not slaughter. This means that fewer visits were carried out than planned to these abattoirs.

42 abattoirs registered

32 abattoirs registered 39 abattoirs registered

+7(+22%)

The predicted level was exceeded due to 3 new abattoirs registered, 1 abattoir had a change of ownership was reregistered and 3 abattoirs were issued with new certificates due to changes in throughput.

14,079 veterinary export certificates issued



+6,510(+65%)

The service is a demand driven activity which is influenced by international monetary and trade trends.

132 export facilities/ establishments registered

60 export facilities/ establishments registered

143 export facilities/ establishments were registered

+83(+138%)


521 requests responded to on macroeconomic

500 requests responded to on macroeconomic

513 requests were responded to on macroeconomic

+13(+3%)

Demand driven. Additional request were received.

5 Macroeconomicreports developed

5 Macroeconomicreports developed

5 Macroeconomic reports were developed

None None


0 EIAs with no agriculture component on high potential agricultural land approved, using GAPA version 4



None None

37 recommendations made on subdivision/rezoning change of agricultural land use



-3(-15%)

Demand driven fewer applications received. Reliant on DEA and DAFF to make recommendations and only 17 were received and responded to.

0 farmers who attended accredited training courses



-84(-21%)

Less farmers than anticipated received accredited training.

1,523 farmers who attended non-accredited training courses



+296(+26%)

Additional farmers attended non accredited training courses even when they were only aspiring to be farmers thus increasing the targeted number of farmers.

12 presentations made at technology transfer events



+8(+100%)

Target was exceeded as there were more events coordinated. Farmers requested for more presentations on different topics

44 presentations made at scientific events



None None

5 articles in popular media published



-4(-33%)

Fewer articles were published because they are dependent on the completion of some of the projects. They are also dependent on the acceptance by the media.

4 scientific papers published



None None

46,080 information packs developed/ disseminated

5 information packs developed

6 information packs developed

+1(+20%)

The extra manual is the irrigation manual which was developed for training farmers on water saving technologies.


2 Improved access to affordable and diverse food

11,004 homestead food gardens supported



+14(+0.11%)

14 Additional homestead food gardens were supported due to the demand emanating from the stakeholder engagements.

144 school food gardens established



-15(-25%)

A request by DAFF to review the business plans and focus on maize and dry beans delayed the process. (School Food gardens are funded through conditional grants.)

57 community food gardens supported



-14(-23%)

A request by DAFF to review the business plans and focus on maize and dry beans delayed the process. (Community Food gardens are funded through conditional grants as a result the decision taken by DAFF and affected the deliverable directly.)

4 food security status reports compiled



None None

11,859 verified food insecure households supported



+14(+0.11%)

Additional verified households were supported as result of increased support to the homestead food garden programme.

The Food Security Plan is in the process of approval by Exco

20 Year Food Security Plan approved by Gauteng Executive Council


None None

3 Improved rural services to support livelihoods

105 farmers and cooperatives supported with on- and off farm infrastructure through Comprehensive Agricultural Support Programme



-22(-44%)

DAFF has issued an instruction that provinces should focus on Maize and Dry beans. As a result support to co-operatives with on- and off farm infrastructure could not continue as planned.

4 Council of Stakeholders supported through training



None None


4 Improved employment opportunities and economic livelihoods

13 research projects implemented which address specific productionconstraints



None None

0 vegetable Agri-Parks established(multi-year projects)

4 vegetable Agri-Parks established(multi-year projects)

3 vegetable Agri-Parks established (multi-year projects)

-1(-25%)

The projects were to be funded from the LandBank, however, the funds were not released on time to the Department for implementation of the projects.

1,000 youths participating in National Rural Youth Service Corps



+137(7%)

Additional Youth were appointed by DRDLR from Walmansthal.

- 400 rural learners attending Open Days at Tertiary Institutions

403 rural learners attending Open Days at Tertiary Institutions

+3(+0.75%)

Additional learners attended the open days, which were not anticipated.


1 agro-processing infrastructure projects implemented in the Maize Triangle areas



-2(-200%)

Service Level Agreement with all the role players (GDARD, Rand Water & FABCOS) was not approved due to the public private partnership processes.

69 farmers in the Maize Triangle supported through production inputs such as mechanization services (harvester, access to tractors and supply with fuel)



+45(+100%)

Demand driven and additional resources were received through CASP.

2 agro-processing infrastructure projects that are linked to the GEGDS implemented

3 agro-processing infrastructure projects that are linked to the GEGDS implemented

2 completed (Sedibeng and Tshwane) and the 3rd (warehouse at the Ekurhuleni Hub) is in progress

-1(-33%)

The 3rd project will commence in 2014/15 due to the delays in the signing of the SLA. This is due to delays in the public private partnership process.

32 emerging farmers assisted to access funding from Development Financial Institutions

20 Agri-Business supported with agricultural economic services towards accessing markets


+6(+30%)

Demand driven, more requests were received than anticipated.




+6(+30%)


- 86 students/interns or companies supported annually

50 bursaries funds, 22 internships, 12 Biotech awards recipient and 1 Biotech fundi award event and 1 Agriculture Biotechnology International Conference 2013, Calgary, Canada)

None None

12 Enterprise Developments (SMMEs) linked to funders supported



+14(+140%)

An influx of requests to assist the entrants for the Young Farmer Awards to register as vendors on GPG Centralised Vendor Database.


1 AgriBEE /FWES project facilitated

2 AgriBEE /FWES project facilitated

1 AgriBEE/ FWES project facilitated

-1(-50%)

One application for AgriBEE fund was declined (Green Oak CC in Heidelberg and the other (Neltropica) withdrew. AFASA pulled out of negotiations with Nestle as Nestle indicated that they already have contracts. An abattoir project in Westrand still need a due diligence and further assessment.

49 agricultural economic studies conducted



-20(-25%)

Demand driven as fewer request were received.

105 clients supported with agricultural economic advice



+17(+19%)

Demand driven due to additional requests from farmers.

5

Establish institutional arrangements to support rural development

3 stakeholders supported to implement Social Compact Plan



None None

- 4 Rural Development Steering Committee forums held

4 Rural Development Steering Committee forums held

None None

Performance indicators

Programme 2

Performance Indicator Actual Achievement

2012/2013


Actual Achievement

2013/2014


target to Actual Achievement

2013/2014


1.1 Number of smallholder farmers supported annually (with production inputs - Letsema/Illima Programme)

168 140 143 +3(-2%)

An additional 3 farmers were assisted with piggery production inputs after requests were received.

1.2 Number of Agri-Expos organised (Linking smallholder producers to mainstream national and international markets through agri-expos)

3 3 3 None None

1.3 Number of smallholder farmers attending Agri-Expos

1,095 800 1,165 +365(+46%)

More farmers showed interest in the expos and some used their own transport instead of GDARD procured transport. GDARD assisted with entry tickets as well.


1.4 Number of existing agricultural cooperatives supported

- 60 74 +14(+23%)

Additional requests were received from the cooperatives which lead to the target being exceeded.

1.5 Number of new agricultural cooperatives assisted (Organise communities and producers into cooperatives as contract growers for private and public institutions)

- 40 40 None None

1.6 Number of farmers assisted to access flower markets

- 3 6 +3(+100%)

More farmers were assisted than planned, due to an increased demand for flowers.

1.7 Number of hectares ploughed by allocated tractors

2,968 6,000 6,928 +928(+15%)

More tractors were operational leading to more hectares being ploughed

1.8 Number of farmers days held

4 5 5 None None

1.9 Number of commodity groups supported

51 24 24 None None

1.10 Number of farm plans completed

76 80 81 +1(1.25%)

More requests received for the year than planned. Service is demand driven.

1.11 Number of farm assessments completed

81 80 43 -37(-46%)

The service is demand driven. Fewer requests than planned were received from individual farmers and from the DRDLR. Only requests received are processed.

1.12 Number of agricultural demonstration trials conducted

5 5 5 None None

1.13 Number of disaster relief schemes managed

1 1 1 None None

1.14 Number of early warning reports issued

10 12 15 +3(+25%)

Warnings are climate dependent, and there were more warnings received than anticipated.

1.15 Number of designs with specifications for agricultural engineering solutions provided

49 40 46 +6(+15%)


1.16 Number of clients provided with engineering advice during official visits

57 40 78 +38(+95%)



1.17 Number of animal vaccinations against controlled animal diseases (anthrax, brucellosis, rabies, NCD)

140,745 97,000 117,004 +20,004(+21%)

Owing to unavailability of S19 vaccine from suppliers in the country, it was decided to rather continue with CA vaccinations as a way of boosting herd immunity towards the disease. S19 is only done in heifer calves but greater coverage which includes older animals is achieved through the use of RB51.

1.18 Number of primary animal health (PAHC) interactions held

85 80 88 +8(+10%)

The reason for exceeding the annual target is because Zoetis Animal Health provided human and other resources which enabled the department to schedule additional study group meeting.

1.19 Number of official veterinary movement documents issued

995 500 3,248 +2,748(+550%)

Demand driven target. More requests were received than expected.

1.20 Number of animal inspections for regulatory purposes

6,065 1,550 1,565 +15(+1%)

As a result of some compartmental registrations expiring, additional inspections had to be done.

1.21 Number of animals sampled/tested for diseases surveillance purposes

53,161 50,000 57,161 +7,161(+14%)

Re-testing of positive herds contributed to the increased output. The CA testing scheme dictates that all positive herds should be retested twice. Once detected in a herd, activities move towards controlling the disease.

1.22 Number of inspections to facilities processing animal products and by- product

57 124 408 +284(+229%)

The scope of inspections was revised by DAFF with effect 1 April 2013, to include all other facilities processing animal and animal-by products and not only rendering plants, which led to more inspections conducted.

1.23 Number of specimens tested (for animal diseases)

53,161 55,000 52,917 -2,083(-4%)

The target of 55,000 was based on previous years’ specimens tested. Due to a favourable disease situation in Gauteng, with no major disease outbreaks, the number of samples received was less than anticipated.


1.24 Number of tests performed

104,894 60,000 106,050 +46,050(+77%)

The number of tests that are conducted on any single or batch of samples from cases of sick animals in the field is guided by the number of possible diseases which the field veterinarian would like to rule out, i.e. the differential diagnosis. There were more tests done to verify that the disease situation was favourable, and to rule out all possible diseases.

1.25 Number of abattoir inspections conducted (Food related facility inspections)

1,845 2,200 2,006 -194(-9%)

The main reason for underperformance is the fact that 17 (22.7 %) of the abattoirs were dormant and did not slaughter. This means that fewer visits were carried out than planned to these abattoirs.

1.26 Number of abattoirs registered

42 32 39 +7(+22%)

The predicted level was exceeded due to 3 new abattoirs registered, 1 abattoir had a change of ownership was reregistered and 3 abattoirs were issued with new certificates due to changes in throughput.

1.27 Number of veterinary export certificates issued

14,079 10,000 16,510 +6,510(+65%)


1.28 Number of export facilities/ establishments registered

132 60 143 +83(+138%)


1.29 Number of requests responded to on macroeconomic information

521 500 513 +13(+3%)

Demand driven. Additional request were received.

1.30 Number of macroeconomicreports developed

5 5 5 None None

1.31 Number of EIAs with no agriculture component on high potential agricultural land approved, using GAPA version 4

0 0 0 None None

1.32 Number of recommendations made on subdivision/rezoning change of agricultural land use

37 20 17 -3(-15%)

Demand driven fewer applications received. Reliant on DEA and DAFF to make recommendations and only 17 were received and responded to.

1.33 Number of farmers who attended accredited training courses

- 400 316 -84(-21%)

Less farmers than anticipated received accredited training.


1.34 Number of farmers who attended non-accredited training courses

1,523 1,150 1,446 +296(+26%)

Additional farmers attended non accredited training courses even when they were only aspiring to be farmers thus increasing the targeted number of farmers.

1.35 Number of presentations made at technology transfer events

12 8 16 +8(+100%)

Target was exceeded as there were more events coordinated. Farmers requested for more presentations on different topics.

1.36 Number of presentations made at scientific events

44 43 43 None None

1.37 Number of articles in popular media published

5 12 8 -4(-33%)

Fewer articles were published because they are dependent on the completion of some of the projects. They are also dependent on the acceptance by the media.

1.38 Number of scientific papers published

4 5 5 None None

1.39 Number of information packs developed

46,080 5 6 +1(+20%)

The extra manual is the irrigation manual which was developed for training farmers on water saving technologies.

2.1 Number of homestead food gardens supported(Training and facilitation of homestead food production)

11,004 12,000 12,014 +14(+0.11%)

14 Additional homestead food gardens were supported due to the demand emanating from the stakeholder engagements.

2. 2 Number of school food gardens established

144 60 49 -15(-25%)

A request by DAFF to review the business plans and focus on maize and dry beans delayed the process. (School Food gardens are funded through conditional grants.)

2. 3 Number of community food gardens supported (Food production within school yards to augment school feeding scheme)

57 60 44 -14(-23%)

A request by DAFF to review the business plans and focus on maize and dry beans delayed the process. (Community Food gardens are funded through conditional grants as a result the decision taken by DAFF and affected the deliverable directly.)

2.4 Number of food security status reports compiled

4 4 4 None None

2.5 Number of verified food insecure households supported

11,859 11,825 12,014 +14(+0.11%)

Additional verified households were supported as part of the homestead garden program.


2.6 Gauteng 20 Year Food Security Plan approved by Gauteng Executive Council

The Food Security Plan is in the process of approval by Exco



None None

3.1 Number of farmers and cooperatives supported with on- and off farm infrastructure through Comprehensive Agricultural Support Programme (CASP)

105 50 28 -22(-44%)

DAFF has issued an instruction that provinces should focus on Maize and Dry beans. No new infrastructure projects will be developed and the business plan has been adjusted accordingly.

3.2 Number of Council of Stakeholders supported through training (leadership and conflict management) and logistical support

4 4 4 None None

4.1 Number of research projects implemented which address specific production constraints

13 12 12 None None

4. 2 Number of vegetable Agri-Parks established (multi-year projects)

0 4 3 vegetable Agri-Parks established

(multi-year projects)

-1(-25%)

The projects were to be funded from the LandBank, however, the transfer of funds was not approved.

4.3 Number of youths participating in National Rural Youth Service Corps (NARYSEC)

1,000 1,883 2,020 +137(7%)

Additional youth were appointed by DRDLR from Walmansthal.

4.4 Number of rural learners attending Open Days at Tertiary Institutions

- 400 403 +3(+0.75%)

Additional learners attended the open days, which were not anticipated.

4.5 Number of agro-processing infrastructure projects implemented in the Maize Triangle areas

1 2 0 -2(-200%)

Service Level Agreement with all the role players (GDARD, Rand Water & FABCOS) was not approved due to the public private partnership processes.

4.6 Number of farmers in the Maize Triangle supported through production inputs such as mechanization services (harvester, access to tractors and supply with fuel)

69 45 90 +45(+100%)

Demand driven and additional resources were received through CASP.

4.7 Number of agro-processing infrastructure projects that are linked to the GEGDS implemented

2 3 2 completed (Sedibeng and Tshwane) and the 3rd (warehouse at the Ekurhuleni Hub) is in progress

-1(-33%)

The 3rd project will commence in 2014/15 due to the delays in the signing of the SLA. This is due to delays in the public private partnership process.

4.8 Number of emerging farmers assisted to access funding from Development Financial Institutions

32 25 30 +5(+20%)

The target is demand driven, more emerging farmers requested assistance than anticipated.

4.9 Number of Agri-Business supported with agricultural economic services towards accessing markets

22 20 26 +6(+30%)



4.10 Number of students/interns or companies supported annually

- 86 50 bursaries funds, 22 internships, 12 Biotech awards recipient and 1 Biotech fundi award event and 1 Agriculture Biotechnology International Conference 2013, Calgary, Canada)

None None

4.11 Number of Enterprise Developments (SMMEs) linked to funders supported

12 10 24 +14(+140%)

An influx of requests to assist the entrants for the Young Farmer Awards to register as vendors on GPG Centralised Vendor Database.

4.12 Number of AgriBEE /FWES project facilitated

1 2 1 -1(-50%)

One application for AgriBEE fund was declined (Green Oak CC in Heidelberg and the other (Neltropica) withdrew. AFASA pulled out of negotiations with Nestle as Nestle indicated that they already have contracts. An abattoir project in Westrand still need a due diligence and further assessment.

4.13 Number of agricultural economic studies conducted

49 80 60 -20(-25%)

Demand driven as fewer request were received.

4.14 Number of clients supported with agricultural economic advice

105 90 107 +17(+19%)

Demand driven due to additional requests from farmers.

5.1 Number of stakeholders supported to implement Social Compact Plan

3 2 2 None None

5.2 Number of Rural Development Steering Committee forums held

- 4 4 None None

PROGRAMME 3: Environmental Affairs

Purpose

To ensure that the province implements the principles of integrated waste management; promotes sustainable development and

quality of life by ensuring acceptable ambient air quality and sustainable mining practices; and manages industrial related activities.

It also promotes equitable and sustainable use of ecosystem goods and services to contribute to economic development, by

managing biodiversity, and its components, processes, habitats and functions and effectively mitigates threats to biodiversity.

The programme responds to Outcome 5b in the province: Protected and enhanced environmental assets and natural resources

Sub-programme

1. Biodiversity Management

2. Environmental Empowerment Service

Strategic objectives/Outputs (as defined in the 2010/14 Strategic Plan)

Output 1: Enhanced quality and quantity of water resources

Output 3: Sustainable Environmental Management

Output 4: Protected Biodiversity


Strategic objectives, performance indicators planned targets and actual achievements

Strategic objectives

Programme 3


Actual Achievement

2012/2013

Planned Target

2013/2014

Actual Achievement

2013/2014



2013/2014


1

Enhanced quality and quantity of water resources

- 80 farmers trained in water saving technologies

158 farmers trained in water saving technologies

+78 (+98%)

More farmers than anticipated attended the training during November 2013, and there were no financial implications.

4 Priority wetlands identified, mapped and management plans developed across GP



None None

1 wetlands rehabilitated through EPWP



+2(+200%)

Additional funding was received from DAFF to allow the Tswaing wetland rehabilitation project to extend into 2013/14. The available budget for 2013/14 wetland rehabilitation was used efficiently allowing two wetlands to be rehabilitated according to the revised rehabilitation plan.

237 Tonnes of waste removed from rivers through EPWP projects



+639 (+213%)

High level of solid waste in the rivers due to a lack of proper urban planning and domestic waste collection.

- 1 River system assessed to determine ecosystem health

Based on the assessment of the Crocodile west Marico Catchment river system to determine its ecosystem health, a Management plan was developed for the Crocodile West Marico Catchment.

None None


2

Reducing atmospheric pollutants/ carbon emissions and adapting to the impacts of climate change

Draft inventory (GHG Framework) were developed and submitted.

GHG Inventory completed and approved

Greenhouse gases (GHG) inventory has been developed and approved.

None None

- 2 BNM projects Implemented

2 BNM projects Implemented

None None

Bioclimatic layers in Bioregional and Biodiversity Conservation plan incorporated

1 climate change response tool developed

1 bioclimatic layer included in C-Plan 3

None None

- 1 air emission licences applications finalised within legislated timeframes

3 air emission licences applications finalised within legislated timeframes

+2(+200%)

The service is demand driven. More applications were received and finalised than planned

- 5(cumulative) designated organs of state with approved and implemented Air Quality Management Plans (AQMP’s

6 designated organs of state with approved and implemented Air Quality Management Plans (AQMPs)

+1(+20%)

An additional municipality had an approved and implemented Air Quality Management Plan

3 Sustainable environmental management

9 LandCare community based natural resource management projects implemented



None None

32.36 Kilometres of waterways and contours surveyed on farms

30 Kilometres of waterways and contours surveyed on farms

30.18 Kilometres of waterways and contours surveyed on farms

+0.18km(+0.6%)

The farm land was larger than expected.

17km of fencing implemented for the LandCare

14km of fencing implemented for the LandCare

12.945km of fencing implemented for the LandCare

-1.055Km(-8%)

Initial desktop study/estimation indicated 14km to be erected. Actual length required on site according to the terrain and erected was 12.945 km.

9 awareness campaigns

11 awareness campaigns conducted


None None

5 Junior LandCare youth camps undertaken from April 2013 to March 2014 for schools from Gauteng priority townships



None None


6 capacity building exercises conducted within approved land care (Junior LandCare Schools projects)



None None

800 ha of farm land improved through conservation measures

800 ha of farm land improved through conservation measures

2,264.16 ha of farm land improved through conservation measures

+1,464.16(+183%)

The target was exceeded as more land was improved through soil conservation measures and removal of alien plants than planned.

626 EPWP green jobs 356 EPWP green jobs (175 FTE)

648 EPWP jobs +292(+82%)

Work opportunities were created for planned 2013/14 projects as well as some projects still funded from the 2012/13 funded municipal projects. An integrated EPWP Grant was received. GDARD has to wait for the final verified annual number of WO from the DPW national MIS Web based reporting system before providing the final FTE.

Evaluation process has been concluded. Research project (EIA Review system) initiated.

1 Environmental research projects finalised (EIA Review, GSSD)


None None

AMD passive treatment pilot not implemented

Conduct research AMD passive treatment pilot

AMD Passive Treatment Research conducted

None None

- 2 legislative tools developed

0 legislative tools developed

-2(-200%)

Legislative tools were not developed as a result of changes in legislations which required changes in the draft regulations and EMFs developed.

- 12 inter-governmental sector tools reviewed

12 inter-governmental sector tools reviewed

None None

3 functional environmental information management databases maintained (GIS, WIS, NEAS)



None None

53 criminal enforcement actions finalized for non-compliance with environmental legislation



+51(+182%)

This is a demand driven indicator and is dependent on non-compliances referred to and finalised by the National Prosecuting Authority


319 compliance inspections conducted



+21(+11%)

Target exceeded because more complaints were received which required to be followed up. Some industries and developments which were inspected in this financial year had more than one Environmental Authorisations.

148 S24G applications finalized



+8(+32%)

This is a demand driven output which depends on submission of requested information and payment of admin fines by the applicants and also on the outcome of the site inspections upon receipt of the application

123 administrative enforcement actions taken for non-compliance with environmental legislation



+52(+65%)

This is a demand driven output which is dependent on the number of transgression reported and found upon investigation.

248 EIA applications finalised within legislated timeframes



-26(-8%)

Demand driven, less applications were finalised than planned.

- 8 Waste Licenses applications finalised within legislated timeframes

10 Waste Licenses applications finalised within legislated timeframes

+2(+25%)

Demand driven. More applications were received to process.




None None

- 11 environmental capacity building activities conducted

84 environmental capacity building activities conducted

+73(+664%)

Due to Gauteng Province being part of the Environmental Education Alliance Programme and actively supporting the Presidential Special Project, the quarterly target was exceeded.

1,615.6 Hectares of alien vegetation removed through EPWP projects

1,266 Hectares of alien vegetation removed through EPWP projects

1,769.9 Hectares of alien vegetation removed through EPWP projects

+503.9(+40%)

The target was exceeded due to the unaligned financial years with the Municipalities (Emfuleni, Merafong City, Mogale City, Zuurbekom and Lesedi).

156.8 Kilometers of firebreaks burned as working on fire EPWP project

100 Kilometers of firebreaks burned as working on fire EPWP project

188.8 Kilometers of firebreaks burned as working on fire EPWP project

+88.8km(+89%)

The grass was drier in the fire season this year allowing for speedy burning of fire breaks and there was support from the two Dinokeng Teams hence the target was exceeded.


4 Protected biodiversity

1 Biodiversity Spatial Plan published

1 Biodiversity Spatial Plans published

- -100% 5 Draft Biodiversity spatial plans are available. The target was not reached due to challenges in the interpretation of NEMBA

26,109 hectares of land under conservation



None None

6 provincial protected areas with management plans



None None

110 job opportunities

created through environmental programmes

136 job opportunities created through environmental programmes

144 job opportunities created through environmental programmes

+8(+6%)

Approval was obtained to appoint 8 additional contract workers as handymen in order to prevent the further deterioration of the closed overnight facilities and Kareekloof. A total of 144 instead of the planned 136 jobs were thus created.

Performance indicators

Programme 3

Performance Indicator Actual Achievement

2012/2013


Actual Achievement2013/2014



2013/2014


1.1. Number of farmers trained in water saving technologies

- 80 158 +78 (+98%)

More farmers than anticipated attended the training during November 2013, and there were no financial implications.

1.2. Priority wetlands identified, mapped and management plans developed across GP

4 4 4 None None

1.3 Number of wetlands rehabilitated through EPWP

1 1 3 +2(+200%)

Additional funding was received from DAFF to allow the Tswaing wetland rehabilitation project to extend into 2013/14. The available budget for 2013/14 wetland rehabilitation was used efficiently allowing two wetlands to be rehabilitated according to the revised rehabilitation plan.


1.4 Number of Tonnes of waste removed from rivers through EPWP projects

237 300 939 +639 (+213%)

High level of solid waste in the rivers due to a lack of proper urban planning and domestic waste collection.

1.5 Number of river systems assessed to determine ecosystem health

- 1 River system assessed to determine ecosystem health

Based on the assessment of the Crocodile west Marico Catchment river system to determine its ecosystem health, a Management plan was developed for the Crocodile West Marico Catchment.

None None

2.1. Greenhouse Gases (GHG) Inventory completed and approved

Draft inventory (GHG Framework) were developed and submitted.

GHG Inventory completed and approved

Greenhouse gases (GHG) inventory has been developed and approved.

None None

2.2 Number of Basa nje ngo Magogo (BNM) projects Implemented

- 2 BNM projects Implemented

2 BNM projects Implemented

None None

2.3 Number of climate change response tools developed

Bioclimatic layers in Bioregional and Biodiversity Conservation plan incorporated

1 1 Bioclimatic layer included in C-Plan 3

None None

2.4 Number of air emission licences applications finalised within legislated timeframes

- 1 3 +2(+200%)

The service is demand driven. More applications were received and finalised than planned

2.5 Number of designated organs of state with approved and implemented Air Quality Management Plans (AQMPs)

- 5(cumulative)

6 +1 (+20%)

An additional municipality had an approved and implemented Air Quality Management Plan

3.1. Number of LandCare community based natural resource management projects implemented

9 11 11 None None

3.2 Number of Kilometres of waterways and contours surveyed on farms

32.36 30 30.18 +0.18(+0.6%)

The farm land was larger than expected.

3.3 Number of kilometres of fencing implemented for the LandCare

- 14 12.945 -1.055(-8%)

Initial desktop study/estimation indicated 14km to be erected. Actual length required on site according to the terrain and erected was 12.945 km.

3.4 Number of awareness campaigns conducted on LandCare

9 11 11 None None

3.5 Number of Junior LandCare youth camps undertaken from April 2013 to March 2014 for schools from Gauteng priority townships

5 6 6 None None


3.6 Number of capacity building exercises conducted within approved land care (Junior LandCare Schools projects)

6 6 6 None None

3.7 Number of farm land hectares improved through conservation measures

800 800 2,264.16 +1,464.16(+183%)

The target was exceeded as more land was improved through soil conservation measures and removal of alien plants than planned.

3.8 Number of green jobs created through LandCare

626 EPWP green jobs

356 EPWP green jobs (175 FTE)

648 EPWP jobs +292(+82%)

Work opportunities were created for planned 2013/14 projects as well as some projects still funded from the 2012/13 funded municipal projects. An integrated EPWP Grant was received. GDARD has to wait for the final verified annual number of WO from the DPW national MIS Web based reporting system before providing the final FTE.

3.9 Number of environmental research projects undertaken

Evaluation process has been concluded. Research project (EIA Review system) initiated.



None None

3.10 Pilot on AMD Passive treatment conducted

AMD passive treatment pilot not implemented

Conduct research AMD passive treatment pilot

AMD Passive Treatment Research conducted

None None

3.11 Number of legislative tools developed

- 2 0 -2(-200%)

Legislative tools were not developed as a result of changes in legislations which required changes in the draft regulations and EMFs developed.

3.12 Number of inter-governmental sector tools reviewed

- 12 12 None None

3.13 Number of functional environmental information management databases (GIS, NEAS, WIS) maintained

3 3 functional environmental information management databases maintained (GIS, NEAS, WIS)

3 functional environmental information management databases maintained (GIS, NEAS, WIS)

None None

3.14 Number of criminal enforcement actions finalized for non-compliance with environmental legislation

53 28 79 +51(+182%)

This is a demand driven indicator and is dependent on non-compliances referred to and finalised by the National Prosecuting Authority


3.15 Number of compliance inspections conducted

319 200 221 +21(+11%)

Target exceeded because more complaints were received which required to be followed up. Some industries and developments which were inspected in this financial year had more than one Environmental Authorisations.

3.16 Number of S24G applications finalized

148 25 33 +8(+32%)

This is a demand driven output which depends on submission of requested information and payment of admin fines by the applicants and also on the outcome of the site inspections upon receipt of the application

3.17 Number of administrative enforcement actions taken for non-compliance with environmental legislation

123 80 132 +52(+65%)

This is a demand driven output which is dependent on the number of transgression reported and found upon investigation.

3.18 Number of EIA applications finalised within legislated timeframes

248 340 314 -26(-8%)

Demand driven, less applications were finalised than planned.

3.19 Number of Waste Licenses applications finalised within legislated timeframes

- 8 10 +2(+25%)

Demand driven. More applications were received to process.

3.20 Number of environmental awareness activities conducted

40 2 2 None None

3.21 Number of environmental capacity building activities conducted

- 11 84 +73(+664%)

Due to Gauteng Province being part of the Environmental Education Alliance Programme and actively supporting the Presidential Special Project, the quarterly target was exceeded.

3.22 Number of Hectares of alien vegetation removed through EPWP projects

1,615.6 1,266 1,769.9 +503.9(+40%)

The target was exceeded due to the unaligned financial years with the Municipalities (Emfuleni, Merafong City, Mogale City, Zuurbekom and Lesedi).


3.23 Number of Kilometers of firebreaks burned as working on fire EPWP project

156.8 100 188.8 +88.8(+89%)

The grass was drier in the fire season this year allowing for speedy burning of fire breaks and there was support from the two Dinokeng Teams hence the target was exceeded.

4.1 Number of Biodiversity Spatial Plans published

1 1 - -100% 5 Draft Biodiversity spatial plans are available. The target was not reached due to challenges in the interpretation of NEMBA

4.2 Number of hectares of land under conservation

26,109 26,109 26,109 None None

4.3 Number of provincial protected areas with management plans

6 6 6 None None

4.4 Number of job opportunities created through environmental programmes

110 136 144 +8(+6%)

Approval was obtained to appoint 8 additional contract workers as handymen in order to prevent the further deterioration of the closed overnight facilities and Kareekloof. A total of 144 instead of the planned 136 jobs were thus created.

2013/2014 2012/2013

Sub- Programme Name

Final Appropriation

Actual Expenditure

(Over)/Under Expenditure

Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000

Administration 156 592 155 626 966 143 531 143 517 14

Agriculture and Rural Development

253 440 253 151 289 245 257 243 637 1 620

Environmental Affairs 144 145 141 964 2 181 128 871 128 734 137

Total 554 177 550 741 3 436 517 659 515 888 1 771


5. SUMMARY OF FINANCIAL INFORMATION

5.1. Departmental receipts

2013/2014 2012/2013

Departmental receipts

Estimate Actual Amount Collected

(Over)/Under Collection

Estimate Actual Amount Collected


R’000 R’000 R’000 R’000 R’000 R’000

Sale of goods and services other than capital assets

850 743 107 620 671 (51)

Interest, dividends and rent on land

40 1 39 6 80 (74)

Financial transactions in assets and liabilities

500 285 215 940 1 355 (415)

Total 1 390 1 029 361 1 566 2 106 (540)

The Department collected R 1 million of its R1,3 million projected to be collected as at end of March 2014. The

main reason for the under collection can be attributed to the following:


The saving is due to the decline in collection of revenue for replacement of access cards as the Department

moved to New Building 11 Diagonal Street. Access cards are not being used currently. The revenue item relate

also to Commission charges on insurance and Garnishee orders which decreased in the 2013/2014 financial

year and, thus, impacted on Revenue Collection.


The under collection in this revenue item can be attributed to the fact that the Department wrote off a huge

amount of supplier debts, which was done at the end of March 2013. These were supplier debts which had no

prospect of being recovered as all avenues to collect had been exhausted. Interest charges are less than R1

000.00 for the 2013/2014 financial year.


This revenue item relates to the recovery of previous year expenditure which is lower than what was originally

projected to be collected.


5.2. Programme Expenditure

2013/2014 2012/2013

Programme Name

Final Appropriation

Actual Expenditure


Final Appropriation

Actual Expenditure


R’000 R’000 R’000 R’000 R’000 R’000

Administration 156 592 155 626 966 143 531 143 517 14


253 440 253 151 289 245 257 243 637 1 620

Environmental Affairs

144 145 141 964 2 181 128 871 128 734 137

Total 554 177 550 741 3 436 517 659 515 888 1 771

The Department was able to spend 99.4% of its total allocation. This includes 99.9% expenditure on Conditional Grants.

This is a continuation of the trend of good spending as even in the previous financial year we spent 99.7%. The main

underspending is under Compensation of Employees. The inability to fill the Head of Department (HOD), Chief Financial

Officer and the Chief Director Sustainable Use of Environment led to the underspending. It must however be mentioned

that the HOD post has since been filled.

Programme 1 - Administration: R966 thousandThis Programme spent 99.4% of its allocated budget for the 2012/2013 financial year. The main underspending was

under Compensation of Employees because of the late filling of the posts of the HOD. The post of the CFO was also

vacant for the financial year.

Programme 2 - Agriculture and Rural Development: R289 thousand This Programme spent 99.9% of its allocated budget. An amount of R281 thousand was not spent on payment for

Capital Assets. The money was committed but the expenditure could not be realised at the end of the financial year. Programme 3 - Environmental Affairs: R2, 1 millionThis Programme spent 98.5% of its allocated budget. An amount of R2,1 million was not spent under the Compensation

of Employees budget. The under-spending can be attributed to vacancies not filled during the financial year.


5.3. Transfer payments to all organisations other than public entities

Name of transferee

Type of organisation

Purpose for which the funds were

used

Did the dept.

comply with s 38 (1) (j) of

the PFMA

Amount transferred

(R’000)

Amount spent by the entity

Reasons for the funds unspent by

the entity

SANBI Departmental Agencies and Accounts

Wetlands rehabilitation

yes R1 600 R1 300 Delays due to heavy rains. Completed in April 2014

ARC Departmental Agencies and Accounts

Research Agenda projects

yes R1 360 R1360 The funds are transferred upfront for research and the projects resume after they have received the funds. All funds have therefore been committed


Farmer training

yes R2 200

RAND WATER Public Corporations Alien plants removal & MTK awards

yes R5 689 R5 689 Project completed

RAND WATER Public Corporations Agro processing

yes R5 700 R5700 Project completed

RAND WATER

Public Corporations Production inputs

yes R10 485 R2,500 Agroprocessing projects partly completed and implementation of multi-year agro processing infrastra-structure is in progress partnership with Municipalities. Delays due to Public Private Partnerships

UJ Universities and Technikon

Research agenda & bursaries

yes R730 R730 Research funds have been committed and bursary funds allocated to students

VUT Universities and Technikon


yes R250 R250 Research funds have been committed and bursary funds allocated to students

UP Universities and Technikon


yes R700 R700 Funds have been utilised and allocated to students

UNISA Universities and Technikon



WITS Universities and Technikon




TUT Universities and Technikon



Lesedi Municipality

Municipality Alien vegetation Eradication

yes R1 300 R251 Contractual delays resulted in a late start. Project currently being implemented

Merafong Municipality


yes R750 R750 Spent

City of Johannesburg

Municipality River clean -up project.

yes R2600 R569 Contractual delays resulted in a late start. Project currently being implemented

Emfuleni Municipality


yes R750 R243 Municipal deviation to contract – GPG Treasury intervention underway

Ekurhuleni Municipality

Municipality Tembisa urban Renewal

yes R1 425 R1 425 Spent

Lesedi Municipality

Municipality Devon Tannery Yes R500 R0 The Service Provider has not invoiced the Municipality for the portion of work already done

Conditional grants and earmarked funds received

The table/s below details the conditional grants and earmarked funds received during period 1 April 2013 to

31 March 2014.


COMPREHENSIVE AGRICULTURE SUPPORT PROGRAMME GRANT

Department that

transferred the grant

Department of Agriculture, Forestry and Fisheries

Purpose of the grant To provide effective agricultural support services services, promote and facilitate agricultural development by targetting beneficiries of land restitution and redistribution, and other previously disadvantaged producers who acquired land though private means, and are engaged in value-adding enterprises domestically, or involved in export.To adress damage to infrastructure caused by floods.

Expected outputs of

the grant

• Number of food procuction units (land reform projects)• Number of economically viable projects• Increased quality and quantity of yield in projects• Number of profitable food security projects• 1% increase in food security (food security projects)• Number of food projects established• Number of income generation activities created• Increase in income levels of the targetted beneficiaries• 1% in household income• Number of jobs created• 5% jobs retained in the agricultural sector in the province• 1% increase in sustainable jobs created• Number of farmers trained• Number of seminars/symposium/workshops conducted• Number of training courses conducted• % increase in skills, knowledge and productivity• % increase in GDP of the province• Reconstrcution of storeroom facility (x1 beneficiary)• Construction of poultry structure (x1 beneficiary)• Repair of tunnels (x8 beneficiaries)• Procured and supplied production inputs:• White maize seeds 150 bags (25kg) DKC7817 x15 beneficiaries. • Fertilizers LAN (28) 1300 (50kg) bags; 5:3:4 of 1000 (50kg) bags & 4:3:4 1000

(50kg) bags to x49 beneficiaries; 5:3:4 1000 (50kg) bags for 17 beneficiaries; Potassium Nitrate 490 (50kg) bags for x8 beneficiaries

Actual outputs

achieved

• 285 land and agrarian projects (food production units) were supported• 5 economically viable projects were established• 3 farms/projects increase in quantity and quantity of yield• 2 profitable food security projects were established• 3 economically viable projects were established• 15 agricultural income generation activities were created• 3 projects/farms increase in income levels of the targetted beneficiaries• 4 household food projects increase in income• 223 agricultural jobs were created• 2 agricultural jobs were retained• 2 sustainable agricultural jobs were created• 200 farmers were trained• 3 seminars/symposium/ workshop conducted• 4 training courses were conducted• 6 projects imparted with skills and agricultural knowledge• 6 viable projects contributed towards provincial GDP• 60 smallholder farmers to be provided with technical and advisory services• Reconstructed storeroom facility (10 m x 9 m)• Contructed Poultry structures (18 m x4 m)• Repaired tunnels (19 tunnels)• Procured and delivered production inputs:

o White maize seeds 150 bags (25kg) DKC7817 x15 beneficiaries

o Fertilizers LAN (28) 1300 (50kg) bags; 5:3:4 of 1000 (50kg) bags

& 4:3:4 1000 (50kg) bags to x 49 beneficiaries; 5:3:4 1000 (50kg)

bags for 17 beneficiaries; Potassium Nitrate 490 (50kg) bags for x 8

beneficiaries

Amount per

amended DORA

R55 880

Amount transferred

(R’000) R55 880


Reasons if amount as per DORA not transferred

N/A

Amount spent by the

department (R’000)

R 55 760

Reasons for the

funds unspent

The total budget allocation through CASP has all been spent.

Monitoring

mechanism by

the transferring

department

The Department has dedicated project managers that manage these projects, transfer payment are not made if the following documents are not in place. • Contracts (SLA or MOU) must be signed by both Parties involved;• GDARD must ensure that an “assurances” clause is included in the contract/agreement

which is signed by all relevant accounting officers;• A clause will be included in the contract relating to assurances; HOD must sign off

memorandum authorizing the payment irrespective of the amount;• Confirmation for the receipts of funds from the Institution and/or Municipalities,

confirming that they have received funds from GDARDMunicipalities and Institutions must submit quarterly progress reports to the relevant project manager.

ILIMA/ LETSEMA PROJECTS GRANT

Department that



Purpose of the grant To assist vulnerable South African farming communities to achieve an increase in agricultural

production and invest in infrastructure that unlocks agricultural production.

Expected outputs of

the grant

• Increase in food security through support of poultry production inputs (chicks, feeds, medications)

• Increase in food security through support of piggery production inputs (boars, sows and feeds)

• Improve economic viability of piggery units• Improve economic viability of poultry units• Increase number of farmers producing for a specfic market• Increased economic growth through creation of job opportunities• Incease in food security through support of nguni cattle for livestock farmers in the

province• Increase in food security through support of grain production inputs (maize) for plant

production farmers in the province

Actual outputs

achieved

• 30 poultry production units/projects increased food production• 30 piggery production units/projects to increase food production.• 4 sustained viable piggery units• 4 sustained viable poultry units were achieved• 6 farmers to produce for market• 154 seasonal job opportunities were created

Amount per

amended DORA

N/A

Amount transferred

(R’000)

R17 538

Reasons if amount

as per DORA not

transferred

N/A

Amount spent by the


R17 538

Reasons for the funds

unspent

N/A


Monitoring

mechanism by

the transferring

department

The Department has dedicated projects managers that manage these project, transfer payments are not made if the following documents are not in place. • Contracts (SLA or MOU) must be signed by both Parties involved;• GDARD must ensure that an “assurances” clause is included in the contract/agreement




LAND CARE PROGRAMME GRANT: POVERTY RELIEF AND INFRASTRUCTURE DEVELOPMENT

Department that



Purpose of the grant To promote sustainable use and management of natural resources by engaging in the

initiatives that support the pillars of sustainability (social, economic and environmental)

leading to greater productivity, food security, job creation and better well-being for all.

Expected outputs of

the grant

• Zuurbekom smallholding alien plant removal: Westonaria ward 6 - Outputs: 50

jobs created; 500 ha cleared

• Vrisgewaagd alien plant removal: Lesedi local municipality wards 11 and 12 -

Outputs: 45 jobs created; 130 ha cleared

• Magalies wetland rehabilitation phase 2: Mogale City ward 31 - Outputs: 25

jobs; Rehabilitate 1 wetland

• Fencing scheme: Tshwane ward 105 - Outputs 31 jobs; 14 km fencing

Actual outputs

achieved

• Zuurbekom smallholding alien plant removal: Westonaria ward 6 - Outputs: 50 jobs

created; 785 ha cleared

• Vrisgewaagd alien plant removal: Lesedi local municipality wards 11 and 12 -


• Magalies wetland rehabilitation phase 2: Mogale City ward 31 - Outputs: 99 jobs;

Rehabilitate 3 wetland

• Fencing scheme: Tshwane ward 105 - Outputs 52 jobs; 13 km fencing

Projects implemented from the Fencing Grant Tender Savings:

1. Winterveld SRM national Land Care conditional grant fencing project; Fencing: 830

meters; number of farmers: 1

2. SRM Land Care community based natural resource management nursery infrastructure:

Evaton Lekoa Nursery (built in the Letsema Ilima Primary School, Emfuleni

Municipality), and Tsolo Traditional Healers garden (built in the Tsolo High School,

Emfuleni Municipality); Community nurseries: 2

3. Sokhulumi Community Wetland Rotational Grazing Fencing Project - additional

wetland fencing proposal; Fencing: 965 meters

4. SRM BEST PRACTICE project to redesign awareness material related to soil conservation

and Conservation Agriculture - transfer funds to the RWF; 1 brochures; 3 banners

Amount per amended

DORA

R6 163

Amount transferred

(R’000)

R6 163


Reasons if amount

as per DORA not

transferred

N/A

Amount spent by the


R6 163

Reasons for the funds

unspent

N/A

Monitoring

mechanism by

the transferring

department

The Department has dedicated project managers that manage these project, transfer payments are not made if the following documents are not in place. • Contracts (SLA or MOU) must be signed by both Parties involved;• GDARD must ensure that an “assurances” clause is included in the contract/agreement




EPWP INCENTIVE GRANT: POVERTY RELIEF AND INFRASTRUCTURE DEVELOPMENT

Department to whom the grant has

been transferred

Gauteng Department of Agriculture and Rural Development

Purpose of the grant To promote sustainable use and management of natural resources by

engaging in the initiatives that supports the pillars of sustainability (social,

economic and evironmental) leading to greater productivity, food security,

jop creation and better well-being for all.

Expected outputs of the grant Bamba Manzi alien plant removal: Mogale City wards 21,27,29 and 32


Budget: R 607 000 = EPWP incentive grant

Equitable share = R 1 793 000

Total budget = R 2 400 000

Actual outputs achieved Bamba Manzi alien plant removal: Mogale City wards Outputs: 50 jobs

created; 573.1 ha cleared




Amount per amended DORA

Amount transferred (R’000) Budget: R 607 000 = EPWP incentive grant



Reasons if amount as per DORA not

transferred

N/A


Amount spent by the department

(R’000)




Reasons for the funds unspent N/A

Monitoring mechanism by the

transferring department

The Department has dedicated project managers that manage these projects, transfer payments are not made if the following document are not in place. • Contracts (SLA or MOU) must be signed by both Parties involved;• GDARD must ensure that an “assurances” clause is included in the

contract/agreement which is signed by all relevant accounting officers;• A clause will be included in the contract relating to assurances; HOD

must sign off memorandum authorizing the payment irrespective of the amount;

• Confirmation for the receipts of funds from the Institution and/or Municipalities, confirming that they have received funds from GDARD

Municipalities and Institutions must submit quarterly progress reports to the relevant project manager.

EARMARKED ALLOCATIONS

Agro-processing and Agriculture 22,842

Farmer support (Extension Officers) 4,725

Department who transferred the

grant

• Gauteng Treasury

Purpose of the grant • Biotechnology Development, R & D and Agri-parks

Expected outputs of the grant • Biotechnology Bursaries and Internship project• Gauteng Biotech Fundi Awards• Support to the Gauteng BioScience Park at The Innovation Hub• Partnership with eGolibio Incubator for business and marketing

support of agrobiz-entrepreneurs and bio-entrepreneurs in the Biopark

• Participation in the Agricultural Biotechnology International Congress (ABIC)

• Research and Development (R & D)

Actual outputs achieved • In 2013/4 financial year • 50 bursaries were given out and 25 internship opportunities • Three students were awarded travel scholarship tto Agricultural

Biotechnology International Congress (ABIC)• The 3rd Biotech Fundi Awards was hosted successfully• Funds were contributed to develop the Agri-Parks in Tarlton

Amount per amended DORA

Amount transferred (R’000) R12 842

Reasons if amount as per DORA not

transferred

N/A

Amount spent by the department

(R’000)

All funds allocated were spent

Reasons for the funds unspent Funds were spent

Monitoring mechanism by the

transferring department

Contracts are in place and quarterly monitoring meetings are held with all institutes which have receive the funds


5.4. Donor Funds Received

The Department did not receive any donor funds in the year under review.

5.5. Capital investment, maintenance and asset management plan

2013/2014 2012/2013

Infrastructure projects

Final Appropriation

R’000

Actual Expenditure

R’000


R’000

Final AppropriationR’000

Actual ExpenditureR’000

(Over)/Under ExpenditureR’000

New and replacement assets

2 000 3 123 -1 123 1 851 130 1 721

Existing infrastructure assets

5 406 2 828 2 578 8 149 10 207 -2 058

- Upgrades and additions

1 114 1 114 652 253 399

- Rehabilitation, renovations and refurbishments

2 792 2 714 78 6 097 8 217 2 120

- Maintenance and repairs

1 500 114 1 386 1 400 1 737 -337

Infrastructure transfer

- Current

- Capital

Total 7 406 5 951 1 455 10 000 10 337 -337

The main reason for the underspending of R1,4 million on Infrastructure projects is because the amount allocated to

maintenance was R 977 408.00 . Most of the projects are small in nature but they had to be clustered together and

advertised as one project. The project implementation plans were ready but there was not sufficient time to go out on

tender and have the projects implemented before the end of the financial year.

Infrastructure projects which have been completed in the current year and the progress in comparison to what was

planned at the beginning of the year:


Project Description Local Municipality

Inco

mp

lete

Co

mp

lete

d

Appropriation

Institution Name

Suikerbosrand Nature Reserve

Booster Pump for the Northern Water Line Midvaal and Lesedi

× 36 843.00

Suikerbosrand Nature Reserve New Adventure Centre Midvaal and Lesedi

×

750 000.00

Suikerbosrand Nature Reserve Southern Water Line Midvaal and Lesedi

x 1 110 122.00

Training CentreNew Kiddies pool construction Tshwane Municipality

×

103,000.00

TembaUpgrading of Temba Agricultural Offices Tshwane Municipality x 309 989.00

Suikerbosrand-Kareekloof

Reconstruction of stables into accommodation units Tshwane Municipality

× 300 000.00

Suikerbosrand Nature Reserve Renovation of house 1 to 7 Midvaal and Lesedi × 497 000.00


General renovations of Schoongezicht house, outbuildings and palisade fence Midvaal and Lesedi × 488 000.00


Replacement of carpet in breakaway rooms and painting of admin Midvaal and Lesedi × 300,000.00


Upgrading of male and female toilets Midvaal and Lesedi x 69 000.00


Maintenance and repairs of Ouhoutkamp Midvaal and Lesedi x 452,000.00


Maintenance of old boom gates at Diepkloof and Schoongezicht Midvaal and Lesedi × 75,559.20


General renovation to Yellow house Midvaal and Lesedi × 195,000.00

Training CentreRenovation of existing swimming pool Midvaal and Lesedi

×71 706.00

Leeuwfontein Nature Reserve

Basic picnic site for day visitors Tshwane Municipality

x400 000.00

Roodeplaat Nature Reserve Upgrade of power units Tshwane Municipality x 114 430.00

Maintenance Scheduled maintenance Midvaal and Lesedi × 977 408.00

MaintenanceExternal upgrade of ARC1 and 2 Building at Vredehuis

Midvaal and Lesedi × x 142 592.00

TOTAL 7 406 000.00


Infrastructure projects that are currently in progress and when they are expected to be completed,

Project description Local MunicipalityExpected Completion

DateInstitution Name



30 May 2014


31 December 2015


PART C: GOVERNANCE


1. Introduction

The Department maintains a high standard of governance which includes a Risk Management unit and Internal

Audit as well as an Ethic Committee. The Provincial Audit Committee services a cluster of Departments, viz.

Department of Economic Development, Department of Community Safety, and Trading Entities: Liquor Board

and Dinokeng Cradle of Humankind. The committee consists of external members from civil society, the HOD,

CFO and CRO from these Departments.

The Audit Committee is effective in that it provides valuable support and oversight to the Department in relation

to financial management and accountability. The Audit Committee was functional and reviewed all plans and

progress for the 2013/14 financial year. The Department has a fully functional and effective Risk Management

Committee which meets Quarterly. All Chief Directors are members thereof including the Chief Risk Officer. The

purpose of the Risk Management function is to monitor the Department’s risk profile quarterly and to report this

to the Risk Management Committee.

2. Risk Management

Effective management of risk and opportunity is essential in the achievement of the Department‘s goals and

objectives. Risk Management has remained an integral part of the operations of the department during the year

under review. The Department has adopted the Gauteng Provincial Government Risk Management Framework

approach to Risk Management which means that each key risk in every business unit of the department

is included in a structured framework and systematic process of Risk Management. Risk assessment

reviews are conducted annually and specifically address strategic, operational, human resource, information

technology, financial and reputational risks as well as risks covered by the legislation on Health, Safety and

Environmental issues. The Risk Management unit is headed by the Chief Risk Officer and it now reports directly

to the Accounting Officer. The unit has been given access to Top Management and facilitate the process of

embedding Risk Management into day to-day activities and management processes within the department.

This includes the following activities:

• Conducting annual strategic risk assessments;

• Conducting operational risk assessments or revaluate key risks for all business units at-least annually;

• Regular reviews and update of risk registers and progress on management actions intended to mitigate or

reduce the identified risks;

• Development of contingency plans for high risks;

• Early identification of emerging risks and initiation of risk reduction or mitigation actions; and,

• Monitor and report on key risks affecting the department including any incidents or losses.

The Risk Management unit and line managers are accountable on risk mitigation to the Risk Management

Committee, even though the Head of Department is ultimately responsible for Risk management within the

Department.

The Head of Department is accountable to the Executive Authority regarding the effectiveness of the Risk

Management process.


Risks are reported to the following oversight bodies

• The Audit Committee.

• Executive Management Team

• Risk Management Committee

• Gauteng Provincial Government Risk Management Forums

The risk identification process is performed at risk assessment workshops and includes all risks whether or not such risks are under the control of the department. Further methods of risk identification will include:

• Strategic Planning Reports

• Internal Audit Reports

• External Audit Reports

• Forensic/Investigation Reports

• Changes in the business environment

• Changes in external environment

• Best practices

• Actual loss data

• Historical data information

• Review of SCOPA reports

• Financial analysis and

• Similar risks occurring in other departments

Risks identified through Risk Management workshops are reported to the Risk Management unit on a quarterly

basis these reports are further reviewed by the risk management for quality purposes. The Risk Management

culture has improved significantly for the year under review as management is more committed with regard

to reporting on risks identified for their specific directorate as well as reporting emerging risk to the Risk

Management unit, this has ensured a continuous monitoring of identified risks as well as updating of alternative

mitigation actions with risks that require much detailed attention.


3. Fraud and Corruption The Department has Fraud Prevention Policy and Prevention Plan in place. The plan was revised during the

year in line with the requirements of the Public Finance Management Act (PFMA) and the Treasury Regulations

(TR).

The main objectives of the Plan include the following:

• Developing a culture of ethical behaviour and instilling zero-tolerance to fraud and corruption;

• Sending a clear message to all employees and members of the public who interact with the department

that it is committed to fighting fraud and corruption;

• Improving accountability, efficiency and effective administration within the department and to deal

decisively with acts of fraud and corruption;

• Improving the application of systems, policies, procedures and regulations;

• Encouraging all employees and other stakeholders to strive towards the prevention and detection of fraud

and corruption impacting or having the potential to impact the department

The Department has implemented the GPG Whistleblowing Policy, with guidance for staff on anonymous

reporting. Reporting can be done through the departments’ Legal representative, Member of the Executive

Council, Public Service Commission, Public Protector, The Auditor General, The Gauteng Premiers’ Office,

National Gauteng Hotline by form of South African telephone numbers, or post, with the Chief Risk Officer as

the principal contact.

All employees and other stakeholders have the opportunity to make confidential disclosures about any

suspected impropriety and wrongdoing. Confidential disclosures can be made to the National Anti-Corruption

Hotline (NACH) which is maintained by the Public Service Commission (PSC). All reported cases are thoroughly

investigated and where necessary dealt with in terms of disciplinary code and procedures.

The Department is supported by the Gauteng Department of Finance: Forensic Services unit with regard to

dealing with all cases of fraud and corruption reported through to the department. The unit fulfils the department’s

objective of timeously investigating and reporting fraud and corruption and other related irregularities.


4. Minimising Conflict of InterestAll SMS members submitted their financial disclosures in the year under review. In addition, the MEC required

officials in Finance (Procurement and Financial Management), officials at the level of Assistant Directors and

above in the Department to complete the declaration of financial interest. Approval must also be obtained

before any remunerative work outside the public service can be undertaken by officials. In terms of the

Remunerative Work outside the Public Service Policy that governs this, an official cannot seek approval to do

work that would be in conflict with his/her job responsibility in the Department.

5. Code of Conduct The Department complies with the Public Service Code of Conduct. The Ethics Committee in the Department

has been established and an Ethics Officer has been appointed by the Head of Department. The Committee

meets once every quarter and part of its functions includes oversight, training, reporting and advice on ethics

related matters. The Ethics Committee carried out extensive awareness on Ethics and the Public Service Code

of Conduct in the year under report. Two ethics related policies were also amended and approved: the Policy

on Remunerative Work outside the Public Service and the Gifts and Donations Policy. In terms of the latter, the

Department has now put in place a no-gifts policy.


6. Occupational Health and Safety (HOS)Occupational health and safety is being addressed with the appointment of a Deputy Director: Safety and

Security. Plans are being put in place to revive the Department’s Occupational Health and Safety Committee

which includes organised labour. The Department makes sure it provides safety clothing for its employees who

are involved in high risk work. These are particularly those officials working in the Veterinary Services, Waste

Management and Compliance and Enforcement units.

7. Portfolio CommitteesThe Internal Audit function is carried out by Gauteng Audit Services within the Department of Finance. A risk

assessment was conducted by the Department which formed the basis for all the internal audit work done

during the year under review. The Internal Audit Plan was duly approved by the Audit Committee as part of their

oversight duties in ensuring that all high risk areas of the business are audited. In the 2013/14 financial year the

Gauteng Audit Services planned to perform 16 audits. All 16 audits were completed.

8. Internal Control UnitThe Department’s Annual Report for the year ended 31 March 2012 was rated among the Top 20 (position 11)

by the South African Institute of Government Auditors (SAIGA) during the 2013 Annual Public Sector Reporting

Awards in September 2013. The Annual Public Sector Reporting Awards recognize the pursuit of excellence

in annual reports published by all provincial and national departments. GDARD was the only other Department

in the Gauteng Province to make the Top 20 list.


GAUTENG PROVINCIAL GOVERNMENT

Report of the Audit Committee – Cluster 01

Gauteng Department of Agriculture and Rural Development

We are pleased to present our report for the financial year ended 31 March 2014.

Audit Committee and Attendance:The Audit Committee consists of the external Members listed hereunder and is required to meet a minimum of

at least two times per annum as per provisions of the Public Finance Management Act (PFMA). In terms of the

approved Terms of Reference (GPG Audit Committee Charter), six meetings were held during the current year,

i.e. four meetings for Quarterly Performance Reporting (financial and non-financial) and two meetings to review

and discuss the Annual Financial Statements and the Auditor-General Report.

Non-Executive Members:

Name of Member Attended Number of Meetings

Mr. Vishnu Naicker (Chairperson) 05

Ms. Tshidi Molala (Member) 05

Mr. Wayne Poggenpoel (Member) 06

Executive Members:

In terms of the GPG Audit Committee Charter, officials listed hereunder are obliged to attend meetings of the

Audit Committee:

Compulsory Attendees Number of Meetings Attended

Ms. Priscilla Pietersen (Acting Head of Department) 02

Ms. Thandeka Mbassa-Sigabi (Head of Department) 03 (Appointed March 2014)

Mr. Mfundo Hadebe (Acting Chief Financial Officer) 05

Mr. Bobby Johnston (Chief Risk Officer) 05

The Head of Department was appointed with effect from 01 March 2014 and the Department appointed an

Acting Head of Department in the interim. Therefore, the Audit Committee is satisfied that the Department

adhered to the provisions of the GPG Audit Committee Charter.

The Members of the Audit Committee met with the Senior Management of the Department and Internal Audit,

collectively to address risks and challenges facing the Departments. A number of in-committee meetings were

held to address control weaknesses and conflicts with the Department.


Audit Committee ResponsibilityThe Audit Committee reports that it has complied with its responsibilities arising from section 38 (1) (a) of

the PFMA and Treasury Regulation 3.1.13. The Audit Committee also reports that it has adopted appropriate

formal terms of reference as its Audit Committee Charter, has regulated its affairs in compliance with this

Charter and has discharged all its responsibilities as contained therein.

The effectiveness of internal control and Information and Communication Technology (ICT) GovernanceThe Audit Committee has observed that the overall control environment of the Department has continued to

improve during the year under review. Several deficiencies in the system of internal control and deviations

were reported in the Internal Audit Reports.

In the conduct of its duties, the Committee has, inter alia, reviewed the following:

• The effectiveness of the internal control systems;

• The operational risk areas covered in the scope of internal and external audits;

• The adequacy, reliability and accuracy of financial information provided to management and other users

of such information;

• Any accounting and auditing concerns identified as a result of internal and external audits;

• Compliance with legal, accounting and regulatory frameworks;

• The activities of the Internal Audit Function, including its annual work program, co-ordination with

external auditors, the reports of significant investigations and the response of Management to specific

recommendations;

• Where relevant, the independence and objectivity of external auditors.

The system of internal control applied by the Department over financial risk management is effective, efficient

and transparent. In line with the PFMA and the King III Report on Corporate Governance requirements, Internal

Audit provides the Committee and Management with assurance that the internal controls are appropriate and

effective.

This is achieved by means of the risk management process, as well as the identification of corrective actions

and suggested enhancements to the controls and processes, reports of the Internal Auditors, the Audit report

on the Annual Financial Statements and the management report of the Auditor General.

The following areas will continue to be high on the monitoring and evaluation agenda for the forthcoming

year in our continuous efforts to improving the internal control environment and ensuring sound financial

management:

• Human Resource Management;

• Expenditure Management;

• Financial Reporting Controls;

• Pre-determined Performance Objectives; and

• Asset Management

The Audit Committee also reviewed progress with respect to the ICT Governance in line with the ICT Framework

issued by the Department of Public Services and Administration. Although there were some significant

progress on the ICT internal control, the Audit Committee report its dissatisfaction with minimal progress made

with the implementation of the Disaster Recovery Plan and the Business Continuity Plan. This continued to be

a high risk for the Department.


Internal Audit The Audit Committee is satisfied that Internal Audit plans addresses a clear alignment with the major risks,

adequate information systems coverage, a good balance between different categories of audits, i.e. risk-

based, mandatory, performance and follow-up audits.

The Audit Committee has noted considerable improvement in the communication between the Executive

Management, the Auditor-General and the Internal Audit Function, which has strengthened the Corporate

Governance initiatives.

The Audit Committee wishes to stress that in order for the Internal Audit Function to operate at optimal level as

expected by the Audit Committee, it requires additional human resources and skills.

Risk Management

Progress on Departmental risk management was reported to the Audit Committee on a quarterly basis. The

Audit Committee is satisfied that the actual management of risk is receiving attention, although there are

areas that still require improvement. Management should take full responsibility for the entire Enterprise

Risk Management (ERM) Process and continue to support the Chief Risk Officer to even further enhance

the management of risk within the Department. The Department is further advised to appoint an external

Chairperson to its Risk Management Committee to assist with ERM implementation and improvement of its

risk maturity.

Forensic Investigations

No significant forensic investigations reported for the Department during the financial year under review.

The quality of quarterly reports submitted in terms of the PFMA and the Division of Revenue Act

The Audit Committee is satisfied with the content and quality of financial and non-financial quarterly reports

prepared and issued by the Accounting Officer of the Department during the year under review and that the

reports were in compliance with the statutory reporting framework.

Evaluation of Financial Statements

The Audit Committee has:

• Reviewed and discussed the audited Annual Financial Statements to be included in the Annual Report,

with the Auditor-General and the Accounting Officer;

• Reviewed the Auditor-General’s Management Report and Management’s response thereto;

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

• Reviewed significant adjustments resulting from the audit.

• Reviewed the Departments Report on Performance Information.

The Committee has once again taken note of the concerns of the Auditor-General and accepts that there is

further room for improvement in the accounting function and elements of the internal control environment. As

in previous years the Committee will ensure that the internal audit plan addresses these issues and will monitor

the implementation of the recommendations of the Auditor-General’s Report.


The Audit Committee has once again noted the constraints to achieve certain targets as identified by Management. These constraints continue to adversely impact upon the Department achieving certain objectives.

The monitoring of the Department’s performance is a key function of Management, Executive Management

and the Executive Authority. The Committee has no direct line responsibility for the Department’s performance

measurement. However, the Committee has ensured, principally through the internal audit function, that the

systems of performance measurement and reporting, as well as the systems of internal control that underpin

the performance management framework of the Department, remain robust and are addressed routinely

in the audit plans. The Committee also obtained assurance from management and internal audit that the

Department’s performance management system adequately and effectively report appropriate and relevant

information.

One-on-One Meeting with the Accounting Officer

The Audit Committee has met with the Accounting Officer for the Department to address unresolved issues.

One-on-One Meetings with the Executive Authority

The Audit Committee has met with the Executive Authority for the Entity to apprise the MEC on the performance

of the Department and highlighted significant issues that required the MEC’s intervention.

Auditor-General South Africa

The Audit Committee has met with the Office of the Auditor-General South Africa to ensure that there are no

unresolved issues

Conclusion

The Committee wishes to thank the Executive Authority, the Head of Department, Senior Management, Treasury,

Internal Audit and the Secretariat for their inputs and commitment shown during the year. I would further like

to thank all members of the Committee for their contribution and the professional way in which meetings were

conducted.

…………………………………………

Mr. Vishnu Naicker

Chairperson of the Audit Committee

Date: 31 July 2014


Part D: HUMAN RESOURCE MANAGEMENT


1. LEGISLATURE THAT GOVERNS HR MANAGEMENT

The information provided in this part is prescribed by the Public Service Regulations (Chapter 1, Part

III J.3 and J.4).

2. INTRODUCTION

• Overview of HR matters at the department

The Department continued with the support, skills development where required and involvement

of line managers on people management processes. The Department generally complied on HR

regulated aspects but was found to be inadequate on some of the key performance areas in MPAT,

these aspects are being addressed through action plans.

The relationship between the Department and Organised Labour is stable and the departmental

labour forum meets regularly, which contributes towards better service delivery and labour peace.

• Set HR priorities for the year under review and the impact of these priorities

HR Planning and Monitoring: The development and approval of the human resources plan has

assisted the Department to be focused in the functioning of the Department. The quarterly and

annual targets were achieved except for the finalisation of the review of the organisational structure.

Policy Review and Development: The process of reviewing key processes within support services

will be continued in the following financial year.

• Workforce planning framework and key strategies to attract and recruit a skilled and capable workforce

The implementation of the Occupation Specific Dispensation (OSD) assisted the Department in

attracting and retaining employees in some of the scarce and critical skills areas. However, challenges

in terms of registration with the professional bodies affected recruitment posts of Scientists.

Through the external bursary scheme, financial assistance was offered to 9 bursars as a means of

acquiring relevant scarce occupational skills in anticipation of current and future Departmental needs

and to address and meet representivity targets.

The Department participated in career days of schools and universities, youth days, youth camps

and exhibitions to cultivate interest in careers within the scarce skills categories and to promote the

Public Service, GPG and GDARD as an employer of choice offering exciting and lucrative career

prospects. During the period under review, seven career awareness sessions were conducted, one

targeted students with disability at the Adelaide Tambo School for Persons Living with Disabilities.

In the financial year the Department has appointed 52 interns, of which 20 were placed as a result of

a collaborative project between GDARD and the Gauteng City Region Academy.

Internal capacity building initiatives like formal training, study tours and skills programmes are used

develop employees to career progression.


• Employee performance management framework

The application and implementation of the framework was identified as a gap in the Department. In

order to address this, refresher sessions were conducted to ensure common understanding and

application.

Despite the application challenges, the Department managed to ensure compliance to the regulatory

framework in the utilisation of the performance management budget and payments were done within

the financial year.

• Employee wellness programmes

The Department offers a wide range of employee wellness programmes including the support on HIV

and AIDS. Approximately 23 peer educators were trained.

A total of 03 wellness sessions were conducted for the year, reaching internal employees. The

Department utilises ICAS for psycho-social services and offers face to face and telephonic counselling

services for employees. Through partnership with the University of Witwatersrand, the Department

has four student social workers, who are providing face-to-face counselling to employees as part of

their practicals.

Furthermore regular articles on various health and wellness topics are circulated to employees.

• Highlight achievements

o The appointment of the Head of Department as this will stabilise leadership and governance in the Department

o The Department hosted a full wellness week for internal staff reaching all officeso The provision of counselling services by student social workers has assisted in augmenting

the capacity within Employee Health and Wellness directorateo The Department exceeded the 5% National target and appointed 6% of the staff

establishment on internships

• Challenges faced by the department

o The reliance on the Gauteng Department of Finance for the implementation of key human resources processes like appointments, leave management and terminations affects turnaround times

o Finalisation of disciplinary cases and grievance within the national normo The alignment of the departmental structure to the strategic plan and the programme

budget structures of the National Departments. o The filling of the Chief Financial Officer post due to unavailability of suitable candidateso The Department did not meet its employment equity targets; 50% females on SMS level

and no representation of people with disability at this level, however the department has achieved 2.6% of people with disability across other levels.

o Insufficient funding to implement employee wellness programmes continues to be a challenge in the Department.


• Future HR plans /goals

o Improve the turnaround time in resolving disciplinary cases and grievances to align with the national norm

o Finalise the review and alignment of the organizational structureo Better establishment administration and management (including abolishment of unfunded

posts)o Review of current personnel budget in order to prioritise the filling of vacancies within the

confines of the approved budgeto Improved human resource planningo Development of a talent management strategy o Revise HR Delegations to improve turnaround times and empower managers so that they

can be made more accountable


3. HUMAN RESOURCE OVERSIGHT STATISTICS

3.1. Personnel related expenditure by programme for the period 1 April 2013 to 31 March 2014

TABLE 3.1.1 - Personnel expenditure by programme

Programme Total Expenditure

(R’000)

Personnel Expenditure

(R’000)

Training Expenditure

(R’000)

Professional and Special

Services (R’000)

Personnel Expenditure

as a % of Total

Expenditure

Average Compensation of Employees Cost per Employee

(R’000)

Administration 155,626 87,892 0 0 56.5 377


253,151 105,329

0 0

41.6 343

Environmental Affairs 141,964 105,364

0 074.2 334

Total 550,741 298,585 0 0 54.2 349

TABLE 3.1.2 - Personnel costs by salary band for the period 1 April 2013 to 31 March 2014

Salary Band Personnel Expenditure

(R’000)

% of total personnel

cost

Number of Employees

Average Compensation Cost

per Employee (R)

Lower skilled (Levels 1-2) 6,704 2.1 50 134,080

Skilled (Levels 3-5) 16,283 5.2 105 155,076

Highly skilled production (Levels 6-8)

92,844 29.4 350 265,269

Highly skilled supervision (Levels 9-12)

120,882 38.3 251 481,602

Senior management (Levels 13-16)

36,725 11.6 41 895,732

Contract (Levels 6-8) 12,797 4.1 54 236,981

Contract (Levels 9-12) 2,038 0.6 4 509,500

Contract (Levels 13-16) 160 0.1 0 0

Periodical Remuneration 7,333 2.3 281 26,096

Abnormal Appointment 2,819 0.9 56 50,339

Total 298,585 94.6 1192 250,491


TABLE 3.1.3 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Programme for the period 1 April 2013 to 31 March 2014

Programme Salaries Overtime Home Owners Allowance

Medical Aid

Salaries (R’000)

Salaries as % of Personnel

Cost

Overtime (R’000)

Overtime as % of

Personnel Cost

HOA (R’000)

HOA as % of

Personnel Cost

Medical Ass. (R’000) Medical Ass. as

% of Personnel

Cost

Administration 58,488 62.8 104 0.1 2,511 2.7 3,715 4


74,991 64.5 0 0 2,461 2.1 4,222 3.6

Environmental Affairs

72,581 68.3 1,465 1.4 3,359 3.2 4,404 4.1

TOTAL 206,060 65.3 1,569 0.5 8,331 2.6 12,341 3.9

TABLE 3.1.4 - Salaries, Overtime, Home Owners Allowance and Medical Aid by Salary Band for the period 1 April 2013 to 31 March 2014

Salary bands

Salaries Overtime Home Owners Allowance Medical Aid

Salaries (R’000)

Salaries as % of Personnel

Cost

Overtime (R’000)

Overtime as % of

Personnel Cost

HOA (R’000)

HOA as % of

Personnel Cost

Medical Ass. (R’000)

Medical Ass. as % of Personnel

Cost

Lower skilled (Levels 1-2) 3,058 45.5 483 7.2 531 7.9 647 9.6

Skilled (Levels 3-5) 9,424 57.5 488 3 1,050 6.4 1,513 9.2

Highly skilled production (Levels 6-8) 64,658 64.7 490 0.5 3,158 3.2 4,932 4.9

Highly skilled supervision (Levels 9-12) 87,848 68.3 108 0.1 2,149 1.7 4,149 3.2

Senior management (Levels 13-16) 27,769 74.1 - 0 898 2.4 700 1.9

Contract (Levels 6-8) 8,647 61.3 - 0 441 3.1 400 2.8

Contract (Levels 9-12) 1,717 72.7 - 0 104 4.4 - 0

Contract (Levels 13-16) 130 81.3 - 0 - 0 - 0

Periodical Remuneration - 0 - 0 - 0 - 0

Abnormal Appointment 2,809 99.2 - 0 - 0 - 0

TOTAL 206,060 65.3 1,569 0.5 8,331 2.6 12,341 3.9


3.2. EMPLOYMENT AND VACANCIES

TABLE 3.2.1 Employment vacancies by programme as at 31 March 2014

Programme Number of Posts approved on the

establishment

Number of Posts Filled

Vacancy Rate Number of employees

additional to the establishment

Administration - Permanent 281 233 17.1 0

Agriculture and Rural Development - Permanent 299 281 6 26

Environmental Affairs - Permanent 423 315 25.5 0

TOTAL 1003 829 17.3 26

Notes: The Department has an approved staff establishment of 1003. Cognizance should be taken of the following:

66 posts have been frozen due to lack of funding. These posts have not been accounted for under the approved

establishment on the table above.

TABLE 3.2.2 Employment and vacancies by salary band as at 31 March 2014

Salary Band Number of Posts approved on the

establishment




Lower skilled (Levels 1-2), Permanent

86 56 34.9 0

Skilled (Levels 3-5), Permanent

111 106 4.5 0

Highly skilled production (Levels 6-8), Permanent

455 381 16.3 0

Highly skilled supervision (Levels 9-12), Permanent

309 248 19.7 0

Senior management (Levels 13-16), Permanent

42 38 9.5 1

Contract (Levels 6-8), Permanent

0 0 0 25

Contract (Levels 9-12), Permanent

0 0 0 0

TOTAL 1003 829 17.3 26


TABLE 3.2.3 Employment and vacancies by critical occupation as at 31 March 2014

Critical Occupations Number of Posts approved on the

establishment




Administrative related, Permanent 47 41 12.8 0

Agricul animal oceanography forestry & other scien, Permanent

52 40 23.1 24

Agriculture related, Permanent 174 130 25.3 0

Architects town and traffic planners, Permanent 2 2 0 0

Auxiliary and related workers, Permanent 2 1 50 0

Biochemistry pharmacol. zoology & life scie.techni, Permanent

25 23 8 0

Building and other property caretakers, Permanent

12 10 16.7 0

Bus and heavy vehicle drivers, Permanent 2 2 0 0

Chemical and physical science technicians, Permanent

20 20 0 0

Cleaners in offices workshops hospitals etc., Permanent

16 14 12.5 0

Client inform clerks(switchb recept inform clerks), Permanent

5 4 20 0

Communication and information related, Permanent

5 4 20 0

Computer programmers., Permanent 5 2 60 0

Computer system designers and analysts., Permanent

2 2 0 0

Conservation labourers, Permanent 76 60 21.1 0

Farm hands and labourers, Permanent 6 6 0 0

Farming forestry advisors and farm managers, Permanent

4 3 25 0

Finance and economics related, Permanent 4 2 50 0

Financial and related professionals, Permanent 12 11 8.3 0

Financial clerks and credit controllers, Permanent

21 18 14.3 0

General legal administration & rel. professionals, Permanent

3 3 0 0

Head of department/chief executive officer, Permanent

5 5 0 1

Horticulturists foresters agricul.& forestry techn, Permanent

24 24 0 0

Human resources & organisat developm & relate prof, Permanent

23 20 13 0

Human resources clerks, Permanent 6 5 16.7 0

Human resources related, Permanent 6 6 0 0

Information technology related, Permanent 5 5 0 0

Language practitioners interpreters & other commun, Permanent

15 14 6.7 0

Legal related, Permanent 4 3 25 0

Librarians and related professionals, Permanent

1 1 0 0

Library mail and related clerks, Permanent 6 6 0 0


Light vehicle drivers, Permanent 4 3 25 0

Logistical support personnel, Permanent 4 4 0 0

Material-recording and transport clerks, Permanent

16 16 0 0

Messengers porters and deliverers, Permanent 5 4 20 0

Natural sciences related, Permanent 68 52 23.5 0

Nature conservation and oceanographical rel.techni, Permanent

99 68 31.3 0

Other administrat & related clerks and organisers, Permanent

76 67 11.8 0

Other administrative policy and related officers, Permanent

16 14 12.5 1

Other information technology personnel., Permanent

11 10 9.1 0

Other occupations, Permanent 1 1 0 0

Safety health and quality inspectors, Permanent

1 1 0 0

Secretaries & other keyboard operating clerks, Permanent

34 30 11.8 0

Senior managers, Permanent 38 32 15.8 0

Statisticians and related professionals, Permanent

1 1 0 0

Trade/industry advisers & other related profession, Permanent

1 1 0 0

Veterinarians, Permanent 30 30 0 0

Veterinary assistants, Permanent 8 8 0 0

TOTAL 1003 829 17.3 26

3.3. FILLING OF SMS POSTS

TABLE 3.3.1 SMS post information as at 31 March 2014

SMS level Total number of funded SMS

posts

Total number of SMS posts

filled

% of SMS posts filled


vacant

% of SMS posts vacant

Director General/Head of Department

1 1 100 0 0

Salary level 15 2 2 100 0 0


Salary level 13 28 27 96.5 1 3.5

Total 42 39 93 3 7


TABLE 3.3.2 SMS post information as at 30 September 2013


posts


filled

% of SMS posts filled


vacant

% of SMS posts vacant


1 0 0 1 100


Salary level 14 11 9 82 2 18

Salary level 13 28 27 96.5 1 3.5

Total 42 38 90.5 4 9.5

TABLE 3.3.3 Advertising and filling of SMS posts for the period 1 April 2013 to 31 March 2014

Advertising Filling of posts

SMS level Number of vacancies per level advertised in 6 months

of becoming vacant

Number of vacancies per level filled in 6

months of becoming vacant

Number of vacancies per level not filled in 6 months but filled

in 12 months


1 0 1

Salary level 15 0 0 0



Total 3 0 1

TABLE 3.3.4 Reasons for not having complied with the filling of funded vacant SMS posts – Advertised within 6 months and filled within 12 months after becoming vacant for the period 1 April 2013 to 31 March 2014

Reason for vacancies not advertised within six months

The one level 13 post was not advertised due to lack of funding to fill the post

Reason for vacancies not filled within 12 months

The Department struggled to fill the positions through the normal processes and head hunting was embarked upon for the filling of the following posts;

Chief Financial Officer - Headhunting is still being pursued

Head of Department – Headhunting was successful


TABLE 3.3.5 Disciplinary steps taken for not complying with the prescribed timeframes for filling SMS posts within 12 months for the period 1 April 2013 to 31 March 2014

Vacancies not advertised within six months

None

Vacancies not filled within 12 months

None

3.4. JOB EVALUATION

TABLE 3.4.1 Job evaluation by salary band for the period 1 April 2013 to 31 March 2014

Salary Band Number of Posts

approved on the

establishment

Number of Jobs

Evaluated

% of Posts Evaluated

Number of Posts

Upgraded

% of Upgraded

Posts Evaluated

Number of Posts

Downgraded

% of Downgraded

Posts Evaluated

Lower skilled (Levels 1-2)

86 0 0 0 0 0 0

Contract (Levels 6-8)

0 0 0 0 0 0 0

Contract (Levels 9-12)

0 0 0 0 0 0 0

Skilled (Levels 3-5)

111 46 43 34 73.9 0 0

Highly skilled production (Levels 6-8)

455 58 12.7 0 0 0 0

Highly skilled supervision (Levels 9-12)

309 0 0 0 0 0 0

Senior Management Service Band A

28 0 0 0 0 0 0

Senior Management Service Band B

10 0 0 0 0 0 0

Senior Management Service Band C

2 0 0 0 0 0 0

Senior Management Service Band D

2 0 0 0 0 0 0

TOTAL 1003 104 10.4 34 32.7 0 0


TABLE 3.4.2 - Profile of employees whose positions were upgraded due to their posts being upgraded for the period 1 April 2013 to 31 March 2014

Beneficiaries African Asian Coloured White Total

Female 13 0 0 0 13

Male 7 1 0 0 8

Total 20 1 0 0 21

Employees with a Disability

0 0 0 0 0

Note: No job evaluations were conducted for the year under review

TABLE 3.4.3 - Employees with salary level higher than those determined by job evaluation by occupation for the period 1 April 2013 to 31 March 2014

Occupation Number of Employees

Job Evaluation

Level

Remuneration Level

Reason for Deviation

Number of employees in the

department

Various 9 5 6 Grade progression through resolution 3 of 2009

Total 9 5 5

Percentage of Total Employment

1.1 819

Note: No job evaluations were conducted for the year under review

TABLE 3.4.4 - Profile of employees who have salary levels higher than those determined by job evaluation for the period 1 April 2013 to 31 March 2014

Beneficiaries African Asian Coloured White Total

Female 3 0 0 5 8

Male 1 0 0 0 1

Total 4 0 0 5 9

Employees with a Disability 0 0 0 0 0

** No job evaluations were conducted for the year under review

Total number of employees whose remuneration exceeded the grade determined by job evaluation in 2013/14

9


3.5. EMPLOYMENT CHANGES

TABLE 3.5.1 Annual turnover rates by salary band for the period 1 April 2013 to 31 March 2014

Salary Band Number of employees at beginning of period 1 April

2013

Appointments and transfers

into the department

Terminations and transfers

out of the department

Turnover Rate

Lower skilled (Levels 1-2), Permanent 56 0 1 1.8

Skilled (Levels 3-5), Permanent 106 2 6 5.7

Highly skilled production (Levels 6-8), Permanent 323 42 6 1.5

Highly skilled supervision (Levels 9-12), Permanent

264 5 14 5.3

Senior Management Service Band A, Permanent 27 0 0 0

Senior Management Service Band B, Permanent 9 0 0 0

Senior Management Service Band C, Permanent 2 0 0 0

Senior Management Service Band D, Permanent 1 0 0 0

Contract (Levels 6-8), Permanent 53 4 0 0

Contract (Levels 9-12), Permanent 4 0 0 0

Contract (Band D), Permanent 1 1 1 100

TOTAL 846 54 28 3.2

TABLE 3.5.2 Annual turnover rates by critical occupation for the period 1 April 2013 to 31 March 2014

Occupation Number of employees at Beginning of period (April 2013)

Appointments and transfers into the department

Terminations and transfers out of the department

Turnover Rate

Administrative related, Permanent 35 0 3 8.6

Agricul animal oceanography forestry & other scien, Permanent 82 8 3 3.7

Agriculture related, Permanent 75 19 0 0

Architects town and traffic planners, Permanent 1 0 0 0

Auxiliary and related workers, Permanent 12 0 0 0

Biochemistry pharmacol. zoology & life scie.techni, Permanent 17 0 0 0

Building and other property caretakers, Permanent 9 0 1 11.1

Bus and heavy vehicle drivers, Permanent 6 0 0 0

Chemical and physical science technicians, Permanent 23 0 1 4.3

Cleaners in offices workshops hospitals etc., Permanent 13 0 0 0

Client inform clerks(switchb recept inform clerks), Permanent 4 0 0 0

Communication and information related, Permanent 7 0 0 0

Computer programmers., Permanent 3 2 0 0


Computer system designers and analysts., Permanent 9 0 0 0

Conservation labourers, Permanent 73 0 3 4.1

Engineering sciences related, Permanent 1 1 1 100

Farm hands and labourers, Permanent 6 0 0 0

Farming forestry advisors and farm managers, Permanent 6 1 0 0

Finance and economics related, Permanent 5 0 0 0

Financial and related professionals, Permanent 11 0 0 0

Financial clerks and credit controllers, Permanent 9 1 0 0

General legal administration & rel. professionals, Permanent 4 0 1 25

Head of department/chief executive officer, Permanent 4 0 1 25

Horticulturists foresters agricul.& forestry techn, Permanent 28 0 1 3.6

Human resources & organisat developm & relate prof, Permanent 22 0 0 0

Human resources clerks, Permanent 12 0 2 16.7

Human resources related, Permanent 11 1 0 0

Information technology related, Permanent 4 0 0 0

Language practitioners interpreters & other commun, Permanent 12 0 0 0

Librarians and related professionals, Permanent 1 0 0 0

Library mail and related clerks, Permanent 11 0 1 9.1

Light vehicle drivers, Permanent 3 0 0 0

Logistical support personnel, Permanent 7 0 0 0

Material-recording and transport clerks, Permanent 5 0 0 0

Messengers porters and deliverers, Permanent 9 0 1 11.1

Natural sciences related, Permanent 49 2 3 6.1

Nature conservation and oceanographical rel.techni, Permanent 62 12 1 1.6

Other administrat & related clerks and organisers, Permanent 67 2 1 1.5

Other administrative policy and related officers, Permanent 14 1 0 0

Other information technology personnel., Permanent 3 0 0 0

Other occupations, Permanent 23 0 0 0

Safety health and quality inspectors, Permanent 1 0 0 0

Secretaries & other keyboard operating clerks, Permanent 35 0 2 5.7

Senior managers, Permanent 22 1 0 0

Trade/industry advisers & other related profession, Permanent 1 0 0 0

Veterinarians, Permanent 20 3 0 0

Veterinary assistants, Permanent 9 0 1 11.1

TOTAL 846 54 28 3.2


TABLE 3.5.3 Reasons why staff left the department for the period 1 April 2013 to 31 March 2014

Termination Type Number % of Total Resignations

Death 2 7.5

Resignation 20 71.5

Expiry of contract 0 0

Discharged due to ill health 0 0

Dismissal-misconduct 0 0

Retirement 6 21

TOTAL 28 100

Total number of employees who left as a % of total employment 3.2%

TABLE 3.5.4 - Promotions by critical occupation for the period 1 April 2013 to 31 March 2014

Occupation Employment at Beginning

of Period (April 2013)

Promotions to another Salary

Level

Salary Level Promotions

as a % of employees by

occupation

Progressions to another notch within salary

level

Notch progression as a % of

employees by occupation

Administrative related 35 2 5.7 23 65.7

Agricul animal oceanography forestry & other scien 82 8 9.8 28 34.1

Agriculture related 75 1 1.3 60 80

Architects town and traffic planners 1 0 0 1 100

Auxiliary and related workers 12 0 0 12 100

Biochemistry pharmacol. zoology & life scie.techni 17 0 0 16 94.1

Building and other property caretakers

9

0 0 9 100

Bus and heavy vehicle drivers 6 0 0 6 100

Chemical and physical science technicians 23 0 0 6 26.1

Cleaners in offices workshops hospitals etc. 13 0 0 8 61.5

Client inform clerks(switchb recept inform clerks) 4 0 0 4 100

Communication and information related 7 0 0 5 71.4

Computer programmers. 3 0 0 1 33.3

Computer system designers and analysts. 9 0 0 8 88.9

Conservation labourers 73 3 4.1 68 93.2

Engineering sciences related 1 0 0 0 0

Farm hands and labourers 6 0 0 7 116.7


Farming forestry advisors and farm managers 6 0 0 4 66.7Finance and economics related 5 0 0 3 60Financial and related professionals 11 0 0 10 90.9Financial clerks and credit controllers 9 0 0 6 66.7General legal administration & rel. professionals 4 0 0 3 75Head of department/chief executive officer 4 1 25 3 75Horticulturists foresters agricul.& forestry techn 28 4 14.3 15 53.6Human resources & organisat developm & relate prof 22 0 0 20 90.9

Human resources clerks 12 2 16.7 8 66.7

Human resources related 11 0 0 8 72.7

Information technology related 4 0 0 4 100Language practitioners interpreters & other commun 12 0 0 11 91.7

Legal related 0 0 0 1 0Librarians and related professionals 1 0 0 1 100

Library mail and related clerks 11 0 0 9 81.8

Light vehicle drivers 3 0 0 3 100

Logistical support personnel 7 0 0 5 71.4Material-recording and transport clerks 5 0 0 5 100Messengers porters and deliverers 9 0 0 9 100

Natural sciences related 49 5 10.2 25 51Nature conservation and oceanographical rel.techni 62 1 1.6 21 33.9Other administrat & related clerks and organisers 67 4 6 59 88.1Other administrative policy and related officers 14 0 0 13 92.9Other information technology personnel. 3 0 0 0 0

Other occupations 23 0 0 18 78.3Safety health and quality inspectors 1 0 0 1 100Secretaries & other keyboard operating clerks 35 0 0 31 88.6

Senior managers 22 1 4.5 17 77.3Statisticians and related professionals 0 1 0 0 0Trade/industry advisers & other related profession 1 0 0 1 100

Veterinarians 20 0 0 15 75

Veterinary assistants 9 0 0 8 88.9

TOTAL 846 33 3.9 599 70.8


TABLE 3.5.5 - Promotions by salary band for the period 1 April 2013 and 31 March 2014

Salary Band Employment at Beginning

of Period (April 2013)

Promotions to another

Salary Level

Salary bands promotions

as a % of employees by

salary level

Progressions to another

notch within Salary Level

Notch progressions

as a % of employees by salary band

Lower skilled (Levels 1-2), Permanent 56 0 0 49 87.5

Skilled (Levels 3-5), Permanent 106 5 4.7 99 93.4

Highly skilled production (Levels 6-8), Permanent 323 6 1.9 223 69

Highly skilled supervision (Levels 9-12), Permanent 264 12 4.5 195 73.9

Senior management (Levels 13-16), Permanent 39 2 5.1 31 79.5

Contract (Levels 6-8), Permanent 53 8 15.1 1 1.9

Contract (Levels 9-12), Permanent 4 0 0 1 25

Contract (Levels 13-16), Permanent 1 0 0 0 0

TOTAL 846 33 3.9 599 70.8

3.6. EMPLOYMENT EQUITY

TABLE 3.6.1 Total number of employees (including employees with disabilities) in each of the following occupational categories as at 31 March 2014

Occupational Categories

Male Female TOTAL

African Coloured Indian White African Coloured Indian White

Legislators, senior officials and managers, Permanent 9 2 3 2 9 1 0 0 26

Professionals, Permanent 147 1 1 11 126 0 1 6 293

Technicians and associate professionals, Permanent 120 1 4 15 99 3 3 18 263

Clerks, Permanent 34 1 1 0 83 5 4 9 137

Plant and machine operators and assemblers, Permanent 8 0 0 1 0 0 0 0 9

Elementary occupations, Permanent 95 2 0 4 23 1 0 0 125

Other, Permanent 0 0 0 0 2 0 0 0 2

TOTAL 413 7 9 33 342 10 8 33 855

Employees with disability 3 0 0 2 1 0 0 0 6


TABLE 3.6.2 - Total number of Employees (including employees with disabilities) in each of the following occupational bands as at 31 March 2014

Occupational Bands Male Female Total


Top Management, Permanent 1 0 0 0 2 0 0 0 3Senior Management, Permanent 12 2 3 4 13 1 0 2 37Professionally qualified and experienced specialists and mid-management, Permanent 115 2 4 20 95 3 1 11 251Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 141 0 1 9 166 6 7 19 349Semi-skilled and discretionary decision making, Permanent 70 2 1 0 31 0 0 1 105Unskilled and defined decision making, Permanent 41 1 0 0 10 0 0 0 52Contract (Professionally qualified), Permanent 3 0 0 0 1 0 0 0 4Contract (Skilled technical), Permanent 30 0 0 0 24 0 0 0 54

TOTAL 413 7 9 33 342 10 8 33 855

TABLE 3.6.3 – Recruitment for the period 1 April 2013 to 31 March 2014



Professionally qualified and experienced specialists and mid-management, Permanent 1 0 0 0 1 0 0 0 2

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 41 0 0 0 35 0 1 0 77

Semi-skilled and discretionary decision making, Permanent 3 0 0 0 5 0 0 0 8

Contract (Skilled technical), Permanent 0 0 0 0 0 0 0 0 0

TOTAL 45 0 0 0 41 0 1 0 87


TABLE 3.6.4 – Promotions for the period 1 April 2013 to 31 March 2014



Top Management, Permanent

0 0 0 0 0 0 0 0 0

Senior Management, Permanent

0 0 0 0 0 0 0 0 0

Professionally qualified and experienced specialists and mid-management, Permanent

2 0 0 0 3 0 0 1 6

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent

2 0 0 0 6 0 0 0 8

Semi-skilled and discretionary decision making, Permanent

2 0 0 0 5 0 0 0 7

Unskilled and defined decision making, Permanent

2 0 0 0 1 0 0 0 3

Contract (Professionally qualified), Permanent

0 0 0 0 0 0 0 0 0

Contract (Skilled technical), Permanent

0 0 0 0 0 0 0 0 0

TOTAL 8 0 0 0 15 1 24

Employees with disabilities

0 0 0 0 0 0 0 0 0

TABLE 3.6.5 – Terminations for the period 1 April 2013 to 31 March 2014



Professionally qualified and experienced specialists and mid-management, Permanent 6 0 1 0 4 0 0 3 14

Skilled technical and academically qualified workers, junior management, supervisors, foremen, Permanent 3 0 0 0 1 0 0 1 5

Semi-skilled and discretionary decision making, Permanent 5 0 0 0 2 0 0 0 7

Unskilled and defined decision making, Permanent 1 0 0 0 0 0 0 0 1

Contract (Top Management), Permanent 0 0 0 0 1 0 0 0 1

TOTAL 15 0 1 0 8 0 0 4 28

People with disabilities 0 0 0 0 1 0 0 3 4


TABLE 3.6.6 - Disciplinary action for the period 1 April 2013 to 31 March 2014

Disciplinary action Male Female Total


TOTAL 4 0 0 1 2 0 1 0 8

TABLE 3.6.7 - Skills Development for the period 1 April 2013 to 31 March 2014

Occupational categories

Male Female Total


Legislators, senior officials and managers

14 3 2 5 10 0 0 1 35

Professionals 31 1 0 4 24 2 1 1 64

Technicians and associate professionals

128 0 0 2 131 1 5 5 272

Clerks 13 1 0 32 1 0 0 47

Elementary occupations 77 1 0 0 27 0 0 0 105

Total 263 5 3 11 224 4 6 7 523

Employees with disabilities 5 0 0 4 1 0 1 1 12

3.7. SIGNING OF PERFORMANCE AGREEMENTS BY SMS MEMBERS

TABLE 3.7.1 Signing of performance agreements by SMS members on 31 May 2013


posts

Total number of SMS

members

Total number of signed

performance agreements

Signed performance

agreements as % of total SMS

members

Director General/Head of Department 1 0 0 0

Salary level 15 2 2 2 100

Salary level 14 11 9 9 100

Salary level 13 28 27 27 100

Total 42 38 38 100%


TABLE 3.7.2 Reasons for not having concluded performance agreements for all SMS members on 31 May 2013

Reasons

There were four vacant posts namely;

Head of Department (Level 16)

Chief Director Sustainable Use of Environment (Level 14)

Chief Financial Officer (Level 14)

Director Air Quality Management (Level 13)

TABLE 3.7.3 Disciplinary steps taken against SMS members for not having concluded performance agreements for all SMS members on 31 May 2013

Not applicable as there was no non-compliance

3.8. PERFORMANCE REWARDS

TABLE 3.8.1 - Performance Rewards by race, gender and disability for the period 1 April 2013 to 31 March 2014

Race and gender Beneficiary Profile Cost

Number of Beneficiaries

Number of employees

% of total within group

Cost (R’000) Average cost per employee (R)

African, Female 46 341 13.5 613 13,316

African, Male 50 410 12.2 608 12,160

Asian, Female 2 8 25 29 14,629

Asian, Male 1 9 11.1 7 6,847

Coloured, Female 4 10 40 49 12,281

Coloured, Male 1 7 14.3 7 7,487

White, Female 52 359 14.5 691 13,287

White, Male 52 426 12.2 622 11,968

Employees with a disability 6 33 18.2 102 17,008

TOTAL 6 31 19.4 98 16,356


TABLE 3.8.2 - Performance Rewards by salary band for personnel below Senior Management Service for the period 1 April 2013 to 31 March 2014

Salary Band Beneficiary Profile Cost


Number of employees

% of total within salary

band

Cost (R’000) Average cost per employee (R)

Lower skilled (Levels 1-2) 4 50 8 19 4,750

Skilled (Levels 3-5) 17 105 16.2 114 6,706

Highly skilled production (Levels 6-8) 54 350 15.4 628 11,630

Highly skilled supervision (Levels 9-12) 39 251 15.5 652 16,718

Contract (Levels 6-8) 0 54 0 0 0

Contract (Levels 9-12) 0 4 0 0 0

Periodical Remuneration 0 281 0 0 0

Abnormal Appointment 0 56 0 0 0

TOTAL 114 1151 9.9 1413 12395

TABLE 3.8.3 - Performance Rewards by Critical Occupation for the period 1 April 2013 to 31 March 2014

Critical Occupations Beneficiary Profile Cost

Number of beneficiaries

Number of employees

% of total within

occupation

Cost (R’000) Average cost per employee

(R)

Administrative related 9 34 26.5 169 18,778

Agricul animal oceanography forestry & other scien 8 83 9.6 105 13,125

Agriculture related 13 89 14.6 202 15,538

Architects town and traffic planners 0 1 0 0 0

Auxiliary and related workers 2 12 16.7 24 12,000

Biochemistry pharmacol. zoology & life scie.techni 5 17 29.4 71 14,200

Building and other property caretakers 3 7 42.9 17 5,667

Bus and heavy vehicle drivers 2 6 33.3 18 9,000

Chemical and physical science technicians 5 20 25 61 12,200

Cleaners in offices workshops hospitals etc. 1 13 7.7 6 6,000

Client inform clerks(switchb recept inform clerks) 0 3 0 0 0

Communication and information related 2 7 28.6 27 13,500

Computer programmers. 0 4 0 0 0

Computer system designers and analysts. 0 9 0 0 0

Conservation labourers 9 70 12.9 53 5,889


Engineering sciences related 0 2 0 0 0

Farm hands and labourers 0 6 0 0 0

Farming forestry advisors and farm managers 1 7 14.3 14 14,000

Finance and economics related 0 5 0 0 0

Financial and related professionals 0 11 0 0 0

Financial clerks and credit controllers 2 10 20 14 7,000

General legal administration & rel. professionals 0 3 0 0 0

Head of department/chief executive officer 0 3 0 0 0

Horticulturists foresters agricul.& forestry techn 3 24 12.5 39 13,000

Human resources & organisat developm & relate prof 2 21 9.5 39 19,500

Human resources clerks 0 11 0 0 0

Human resources related 1 12 8.3 17 17,000

Information technology related 0 4 0 0 0

Language practitioners interpreters & other commun 2 12 16.7 24 12,000

Legal related 0 1 0 0 0

Librarians and related professionals 0 1 0 0 0

Library mail and related clerks 1 9 11.1 11 11,000

Light vehicle drivers 0 3 0 0 0

Logistical support personnel 0 6 0 0 0

Material-recording and transport clerks 0 5 0 0 0

Messengers porters and deliverers 0 8 0 0 0

Natural sciences related 4 48 8.3 88 22,000

Nature conservation and oceanographical rel.techni 5 72 6.9 66 13,200

Other administrat & related clerks and organisers 12 67 17.9 113 9,417

Other administrative policy and related officers 3 14 21.4 28 9,333

Other information technology personnel. 0 3 0 0 0

Other occupations 4 22 18.2 57 14,250

Rank: Unknown 0 2 0 0 0

Safety health and quality inspectors 1 1 100 17 17,000

Secretaries & other keyboard operating clerks 8 32 25 72 9,000

Senior managers 2 22 9.1 75 37,500

Statisticians and related professionals 0 1 0 0 0

Trade/industry advisers & other related profession 0 1 0 0 0

Veterinarians 5 23 21.7 71 14,200

Veterinary assistants 2 8 25 28 14,000

TOTAL 117 855 13.7 1526 13043


TABLE 3.8.4 - Performance related rewards (cash bonus) by salary band for Senior Management Service for the period 1 April 2013 to 31 March 2014

SMS Salary Band

Beneficiary profile Cost


Number of employees

% of total within salary bands

Cost (R’000)

Average Cost per

employee (R)

Total cost as a % of the total

personnel expenditure

Personnel Cost SMS (R’000)

Band A 3 28 10.7 113 37,667 0.5 24,030

Band B 0 9 0 0 0 0 0

Band C 0 2 0 0 0 0 0

Band D 0 2 0 0 0 0 0

TOTAL 3 41 7.3 113 37,667 0.5 24,030

3.9. FOREIGN WORKERS

TABLE 3.9.1 - Foreign workers by salary band for the period 1 April 2013 to 31 March 2014

Salary Band 01 April 2013 31 March 2014 Change

Number of employees at

beginning of the period

% of total

Number of employees at the end of the period

% of Total

Number of changes in

Employment

% of Total

Highly skilled production (Levels 6-8) 1 5.6 1 5.9 0 0

Highly skilled supervision (Levels 9-12) 12 66.7 11 64.7 -1 100

Senior management (Levels 13-16) 1 5.6 1 5.9 0 0

Contract (Levels 9-12) 4 22.2 4 23.5 0 0

TOTAL 18 100 17 100 -1 100

TABLE 3.9.2 - Foreign Workers by major occupation for the period 1 April 2013 to 31 March 2014

Major Occupation 01 April 2013 31 March 2014 Change

Number of employees at

beginning of the period

% of total

Number of employees at the end of the period

% of Total

Number of changes in

Employment

% of Total

Professionals and managers 14 77.8 13 76.5 -1 100

Technicians and associated professionals 4 22.2 4 23.5 0 0

TOTAL 18 100 17 100 -1 100


3.10. LEAVE UTILISATION

TABLE 3.10.1 Sick Leave for the period 1 January 2013 to 31 December 2013

Salary Band Total Days

% Days with medical

certification

Number of employees using sick

leave

% of total employees using

sick leave

Average days per employee

Estimated Cost

(R’000)

Lower skilled (Levels 1-2) 298 33.2 41 6.9 7 83

Skilled (Levels 3-5) 671 58.3 76 12.8 9 259

Highly skilled production (Levels 6-8) 1746 63.3 250 42.1 7 1,293

Highly skilled supervision (Levels 9-12) 1249 65.1 179 30.1 7 1,931

Senior management (Levels 13-16) 175 62.3 29 4.9 6 557

Contract (Levels 6-8) 52 36.5 17 2.9 3 36

Contract (Levels 9-12) 7 57.1 2 0.3 4 13

TOTAL 4198 60.5 594 100 7 4172

TABLE 3.10.2 Disability leave (temporary and permanent) for the period 1 January 2013 to 31 December 2013

Salary Band Total Days % Days with Medical

Certification

Number of Employees

using Disability

Leave

% of Total Employees

using Disability

Leave

Average Days per

Employee

Estimated Cost (R’000)

TOTAL 0 0 0 0 0 0

TABLE 3.10.3 - Annual Leave for the period 1 January 2013 to 31 December 2013

Salary Band Total Days Taken

Number of Employees who took leave

Average days per Employee

Lower skilled (Levels 1-2) 1272 24 52

Skilled (Levels 3-5) 2577 24 109

Highly skilled production (Levels 6-8) 6994 20 356

Highly skilled supervision (Levels 9-12) 5699 21 269

Senior management (Levels 13-16) 829 21 39

Contract (Levels 6-8) 284 9 30



TOTAL 17703 21 860


TABLE 3.10.4 - Capped Leave for the period 1 January 2013 to 31 December 2013

Salary Band Total days of capped

leave taken

Average number of days taken

per employee

Average capped leave per

employee as at 31 December 2012

Number of Employees who

took Capped leave

Total number of

capped leave available at

31 December 2012

Number of Employees

as at 31 December

2012

Skilled (Levels 3-5) 13 4 94 3 4308 46

Highly skilled production (Levels 6-8) 7 2 51 3 3438 68

Highly skilled supervision (Levels 9-12) 7 7 41 1 2243 55

TOTAL 27 4 59 7 9989 169

TABLE 3.10.5 - Leave payouts for the period 1 April 2013 to 31 March 2014

Reason Total Amount (R’000)

Number of Employees

Average Payment

per Employee

(R)

Capped leave payouts on termination of service for 2013/14 7 1 7000

Current leave payout on termination of service for 2013/14 16 12 1333

TOTAL 23 13 1769


3.11. HIV/AIDS & HEALTH PROMOTION PROGRAMMES

TABLE 3.11.1 - Steps taken to reduce the risk of occupational exposure

Units/categories of employees identified to be at high risk of contracting HIV & related diseases (if any)

Key steps taken to reduce the risk

The number varies based on disclosure and number of staff testing

Awareness sessions and information on prevention provided to staff regularly

TABLE 3.11.2 - Details of health promotion and HIV/AIDS programmes

Question Yes No Details, if yes

1. Has the department designated a member of the SMS to implement the provisions contained in Part VI E of Chapter 1 of the Public Service Regulations, 2001? If so, provide her/his name and position.

Yes Ms Thabisa Nyamakazi - Director responsible for HIV and AIDS and Employee Wellness

2. Does the department have a dedicated unit or have you designated specific staff members to promote health and well-being of your employees? If so, indicate the number of employees who are involved in this task and the annual budget that is available for this purpose.

Yes The Transformation Branch, HIV and AIDS and Employee Wellness sub component has a total of 3 staff members involved in the programme and approximately R276, 000 was used for Counselling Services for the 2013-14 financial year.

3. Has the department introduced an Employee Assistance or Health Promotion Programme for your employees? If so, indicate the key elements/services of the programme.

Yes Counselling services, health screening tests, distribution of health and wellness articles, wellness talks and referrals.

4. Has the department established (a) committee(s) as contemplated in Part VI E.5 (e) of Chapter 1 of the Public Service Regulations, 2001? If so, please provide the names of the members of the committee and the stakeholder(s) that they represent.

No No formal committee was established, except for the existing Peer Educators who have been trained. They promote wellness through presentations and sessions they conduct with their colleagues. Wits University has placed 4 Social Work students who conduct wellness and counselling sessions with employees. This enhances the wellness services in the department.

5. Has the department reviewed the employment policies and practices of your department to ensure that these do not unfairly discriminate against employees on the basis of their HIV status? If so, list the employment policies/practices so reviewed.

Yes The department has the HIV and AIDS policy that is being implemented on an on-going basis in line with the business plan. Other policies that were reviewed are the Health and Productivity Policy and the Wellness Management Policy.

6. Has the department introduced measures to protect HIV-positive employees or those perceived to be HIV-positive from discrimination? If so, list the key elements of these measures.

No Awareness sessions on prevention are conducted. Articles referring to stigma were distributed.

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

Yes The department hosts wellness weeks regularly and encourages staff to undergo testing. Employees participate in this each time when there are wellness week sessions conducted. Thereafter, those who test positive are referred to the nearest relevant HIV centres or clinics.

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

Yes The HIV and AIDS business plan has been developed.

A survey was conducted and another one will be conducted at the end of 3 years.

Various medical reports were received from the service provider used, namely FPD and GEMS who conducted the tests.


3.12. LABOUR RELATIONS

TABLE 3.12.1 Collective agreements for the period 1 April 2013 to 31 March 2014

Total number of Collective agreements None

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

under review.

TABLE 3.12.2 Misconduct and discipline Hearings finalised for the period 1 April 2013 to 31 March 2014

Outcomes of disciplinary hearings Number % of Total

Correctional counselling 0 0

Verbal warning 0 0

Written warning 1 25

Final written warning 3 75

Suspended without pay 0 0

Fine 0 0

Demotion 0 0

Dismissal 0 0

Not guilty 0 0

Case withdrawn 0 0

Total 4 100

TABLE 3.12.3 - Types of misconduct addressed and disciplinary hearings for the period 1 April 2013 to 31 March 2014

Type of misconduct Number % of Total

Trespassing 2 18.18

Insubordination 2 18.18

Misrepresentation 3 27.27

Negligence 2 18.18

Poor performance other than incapacity 2 18.18

TOTAL 11 100


TABLE 3.12.4 - Grievances lodged for the period 1 April 2013 to 31 March 2014

Number of grievances addressed Number Percentage of Total Total

Not resolved 5 22.81 21

Resolved 16 76.19 21

TOTAL 18 100 18

TABLE 3.12.5 - Disputes lodged with Councils for the period 1 April 2013 to 31 March 2014

Number of disputes addressed Number % of total

Upheld 2 20

Dismissed 8 80

Total 10 100

TABLE 3.12.6 - Strike actions for the period 1 April 2013 to 31 March 2014

Strike Actions _

Total number of person working days lost 0

Total cost(R’000) of working days lost 0

Amount (R’000) recovered as a result of no work no pay 0

TABLE 3.12.7 - Precautionary suspensions for the period 1 April 2013 to 31 March 2014

Precautionary Suspensions _

Number of people suspended 5

Number of people whose suspension exceeded 30 days 5

Average number of days suspended 114.6

Cost (R’000) of suspensions 482 750


3.13. SKILLS DEVELOPMENT

TABLE 3.13.1 Training needs identified for the period 1 April 2013 to 31 March 2014

Occupational

Categories

Gender Number of employees as at 1 April 2013

Training needs identified at start of reporting period

Learnerships Skills Programmes & other short courses

Other forms of training

Total


Female 19

Male 19

Professionals

11 - 12

Female

35

• Finance for Non-Financial Managers

• Public speaking and presentations

• Marketing communication in the public sector

• Event Management

• Project Management

• Foundation Management Development Programme

• Environmental Management Systems

• Green Economy/Sustainability Course

• Middle Management Development Programme

• Managers

• FSSA Symposium

• Symposium of Contemporary Conservation practice

• National Land Care Conference

• National Wetland Indaba

• EEASA

• SAPO Congress

• Biosecurity Congress

• Red Meat Abattoir Association Congress

• South African State Veterinarian Association

• Congress

• Waste Khoro

• Waste Conference 15


Male 47

• PERSAL

• Recruitment & Selection in the Public Service

• Strategic HR Planning

• Coaching and Mentoring

• Management Orientation

• Ms Excel

• Presentation Skill

• Disability Mainstreaming

• Advanced MS Excel

• Lead Food Safety Auditor

• Applied Epidemiology

• Corporate Time Management Training

• Labour Relations

• Symposium of Contemporary Conservation practice

• Bird of Prey Programme Annual Conference

• Conservation Practice

• GSSA Congress Air Quality Lekgotla

• SASVEPM Lead Food Safety Auditor

• South African State Veterinarian Association Congress

• Waste Khoro 2014

• Waste Con 2014

28

• Disciplinary Course

• Middle Management Development Programme


• Environmental Law

• Advanced GIS training

• Marketing fundamentals

• Professional Development Programme in Advanced Public Relations Writing

• Safety, Health, Environment and Quality Management


• Laboratory and Field Techniques Masterclass

• Organisational Design

• Emotional Intelligence

• Cobit

• Togaf 9

• Agribio-Resource Planning Programme

• Farm Business Management

• Organic Farming

• 7 Habits of Highly Effective People

• Management Development Programme

• Advanced Microsoft Access

• Intermediate Excel, Word, Powerpoint

• Molecular Biology

• Game Meat Inspection


(9 – 10)

Female 77

• Report Writing

• Negotiation and Conflict Management

• Poultry production

• Mobilization and Facilitation Of Agricultural Farmer Groups

• Business Planning

• Supervisory Management Skills

o SASAE Conference

o IAIA Conference

o KZN Conservation Symposium

o SAWMA Conference

o Registration and Public Relations Seminar

o Waste Khoro

25


• Irrigation Management

• Conflict Management and Resolution

• Hydrophonic Training


• Mining Course

• Air Quality Management Course

• Conservation Practices

• Microsoft Access

• Advanced GIS Course

• Professional Development Programme in Public Relations Practice

• Photoshop/graphics

• Integrated Community Development Planning

• Department of International Relations and Cooperation

• Safety, Health, Environment and Quality

• Environmental Manage sional Report Writing

• Emerging Management Development Programme

• Facilities Management Programme

•

o (IAIA)conference

o 32nd Environmental Education Association of Southern Africa

o Biannual National LandCare Conference

o Integrated Land Management and Environmental Education for Sustainable Development

o National Land Care Conference

o Labour Relations

o SASAE

o SASAS

o PHASA Convention

o Waste Conference

o Landcare Conference


• Records

Management

• Policy

Development

Implementation

and Analysis

• Materials

Development

• Emotional

Intelligence

• HR Monitoring &

Reporting

• Organisational

Design

• Job Evaluation

Initial

• Nursery/

Hydroponics

Management

• Facilitation Skills

• Local Economic

Development

• Mapping

• Leadership and

Supervisory Skills

• Conflict

Management and

Resolution

• Records

Management

• Customer Service

Excellence

• National

Certificate

Business

Management


• Intermediate MS Word, Excel, Powerpoint

• Integrated Land Management Towards Sustainable Land Use: Rehabilitation and Monitoring

• National Diploma in Environmental Education, Training and Development Practice

Clerks

(5 – 8)

Female 204

• Excel & Power point


• Advanced Project management

• International Computer Driving Licence

• Report Writing

• International Computer Driving Licence

• Air Quality Course

• Snake Identification and Handling

• Geographical Information System (GIS)

• Financial Management

• Risk Management


• Air Quality Lekgotla

• International Association for Impact Assessment


• Supervisory training

• SASAE

• Labour Relations

• GSSA Congress

• Waste Khoro 2014

• IAIA Conference

• Air Quality Lekgotla

• SASVEPM Conference

76


• Sustainable Development

• Time management

• Ashep and Samtrac

• Introduction to Mentoring


• Facilitation Skills

• Events Management

• Coaching and mentoring

• Customer Service Excellence

• Poultry Production

• Lead Food Safety

• Auditor

• ISO 14001

Male 155



• Advanced Project Management

• ArcGIS Spatial Analysis


• Supervisory Training



• Geographical Information System

• Report Writing

• Events Management

• SASAE

• SASAS Snake

Identification

and handling

• GSSA Congress

• Southern

African Wildlife

Management

Association

(SAWMA)

symposium

• Air Quality

Lekgotla

• SASVEPM

Conference

• Animal Health

Technician

Congress

69




• Cobit

• Integrated Land Management

• Time Management




• Lead Food Safety Auditor

Elementary occupations

Female 34



• Animal Health Technician Congress

3

Male 104

• Arc GIS Spatial Analysis


8

Sub Total Female

369

Male 413

Total 782


TABLE 3.13.2 Training provided for the period 1 April 2013 to 31 March 2014

Occupational Categories Gender

Number of employees as at 1 April 2013

Training provided within the reporting period

Learnerships Skills Programmes & other short courses

Other forms of training Total


Female

19

• IOD & Pension Workshop

• Labour Relations Workshop

• Ethics Workshop

9

Male 19 • Risk Management for Neurocysticercosis

• Ethics Workshop


• Labour Relations Training

24

Professionals

Female

35

• Innovation Workshop

• Risk Management for Neurocysticercosis

• SAMTRAC

• Demand Management


• GDARD Induction

• Labour Relation

• Performance Management & Development System


• Refresher Induction Workshop

• KZN Wildlife Symposium

11

Male

47


• SAMTRAC




• GDARD Induction

• Labour Relations Training

8



77 • Innovation Workshop


• Train The Trainer (ARC Hatfield)

• SAMTRAC

• PFMA Training

• Finance for Non-Financial Managers Training

• Electronics Records Management Course

• Disaster Management Workshop

• Budgeting

• Innovation Training



• SCCM

• National Workshop for Species Monitoring at SANBI

• Symposium of Contemporary Conservation Practice 2013

• GDARD Induction


• Ethics Workshop


• Performance Management & Development System GSSA 2013 Conference

• GISSA Seminar

• SABI Congress

• IAIASA 2013 Conference

• South African Wildlife Management Association Conference

• National Workshop for Species Monitoring

52

Male 88 • Innovation Workshop



• SAMTRAC

• PFMA Training



• SCCM

• National Workshop for Species Monitoring

• GSSA 2013 Conference

• GISSA Bi – Annual Seminar

• SABI Congress



51



• Budgeting


• Innovation Training



• GMP Basic Data Capturing

• GDARD Induction

• Ethics Workshop




Clerks 204 • Supply Chain Management

• Foundational Management Development Programme

• Rodent Training

• Aquaculture Workshop

• Budgeting


• PFMA Training

• Finance for Non-Financial Training



• Achieving Customer Service Excellence

• GMP Basic Data Capturing


• Abattoir Hygiene Assessment System


• Refreshers Induction

• Ethics Workshop


• GDARD Induction


• National Workshop for Species Monitoring GISSA Bi - Annual Seminars




• Cycads Identification Symposium of Contemporary Conservation Practice 2013

26


Male 155 • Supervisory Development Programme


• SCCM

• Short course in Business writing

• Rodent Training

• Budgeting


• PFMA Training



• SAMTRAC




• Business Writing Skills

• Inventory Management





• IAIASA 2013

Conference


• Aquaculture Workshop


• GDARD Induction

• SABI Congress


• Cycads Identification Symposium of Contemporary Conservation Practice 2013

• National Wetland Indaba


32

Elementary occupations

Female 34 • PFMA


• Office Administration

• Budget Analysis


• IOD and Pension Workshop

• Waste Khoro Conference

8


Male 104 • PFMA Training

• Ms Excel

• Inventory Management

• Supply Chain Managemen

6

Sub Total Female 369 106

Male 413 121

Total 782 227

3.14. INJURY ON DUTY

TABLE 3.14.1 Injury on duty for the period 1 April 2013 to March 2014

Nature of injury on duty Number % of total

Required basic medical attention only 11 100

Temporary Total Disablement 0 0

Permanent Disablement 0 0

Fatal 0 0

Total 11 100

3.15. 3.15 UTILISATION OF CONSULTANTS

Table 3.15.1 Report on consultant appointments using appropriated funds for the period 1 April 2013 to 31 March 2014

Project Title Total Number of consultants that worked on project

Duration

Work days

Contract value in

Rand

Appointment of service provider to assist the Department in the preparation of annual financial statement and implementation of action plan to address Auditor General findings.

01 R 404 899.90

Total number of projects

Total individual consultants

Total duration

Work days

Total contract value in Rand

01 01 R 404 899.90


Table 3.15.2 Analysis of consultant appointments using appropriated funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2013 to 31 March 2014

Project Title Percentage ownership by HDI groups

Percentage management by HDI groups

Number of Consultants from HDI groups that work on the project

Appointment of service provider to assist the Department in the preparation of annual financial statement and implementation of action plan to address Auditor General findings.

100% 100% 3

Table 3.15.3 Report on consultant appointments using Donor funds for the period 1 April 2013 to 31 March 2014

Project Title Total Number of consultants that worked on project

Duration

Work days

Donor and Contract value in Rand

Not applicable

Total number of projects

Total individual consultants Total duration

Work days

Total contract value in Rand

Not applicable

Table 3.15.4 Analysis of consultant appointments using Donor funds, in terms of Historically Disadvantaged Individuals (HDIs) for the period 1 April 2013 to 31 March 2014

Project Title Percentage ownership by HDI groups

Percentage management by HDI groups

Number of Consultants from HDI groups that work on the project

Not applicable


Part E: FINANCIAL INFORMATION


ANNUAL FINANCIAL STATEMENTS FOR THE GAUTENG DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENT

Contents

REPORT OF THE ACCOUNTING OFFICER ........................................................................................................... 141

REPORT OF THE AUDITOR-GENERAL ....................................................................................................................161

Appropriation per programme .....................................................................................................................................165

Notes to the Appropriation Statement ....................................................................................................................175

STATEMENT OF FINANCIAL PERFORMANCE .....................................................................................................177

CASHFLOW STATEMENT ..................................................................................................................................................178

STATEMENT OF CONDITIONAL GRANTS RECEIVED ..................................................................................223

ANNEXURE 1A ........................................................................................................................................................................224


REPORT OF THE ACCOUNTING OFFICERfor the year ended 31 March 2014

1. REPORT OF THE ACCOUNTING OFFICERGENERAL REVIEW OF THE STATE OF FINANCIAL AFFAIRS

1.1. Mandate, Vision and MissionThe Department of Agriculture and Rural Development carries out its mandate in terms of the Constitution of

the Republic of South Africa, 1996 within the functional areas of agriculture, environment, rural development

and conservation.

The vision of the Department - Vibrant, equitable, sustainable communities, food security for all and protected

and enhanced environmental assets and natural resources - encompasses and sets the direction for improving

the lives of the peoples of Gauteng through these functional areas. The Department has the following specific

Mission:

To provide an integrated management system for sustainable agriculture, rural development and use of natural

resources towards improved quality of life for all in Gauteng through:

• Increased competitiveness of Gauteng agri-food industry by increasing competencies, sales and

equality;

• Championing of animal health and welfare in a cost-sharing/recovery model;

• Sustainable use of environment with the challenge of restoring and enhancing profitable and sustainable

ecosystems, improving bio-diversity and landscape, and providing opportunities for access in the

countryside; and,

• Co-ordination of rural development with respect to agriculture, environment, education, health, transport,

infrastructure and other social services.

Important Policy DecisionsThe Department continued to implement its strategic and policy frameworks in delivering services in the area

of farmer support, food security, animal health, removal of alien vegetation, provision of services to identified

rural nodes, amongst others, to the people of Gauteng through the strategies and policies approved between

2010 to 2013.

The Executive Council approved two major Plans in the year under report – the Gauteng 20-Year Food Security

Plan and the Gauteng 5-Year Acid Mine Drainage (AMD) Plan. The Gauteng 20 Year Food Security Plan sets

out a portfolio of targeted strategic programmes to address food insecurity in the Province in a comprehensive

way, reducing the 2011 levels of hunger and inadequate access to food by half by 2030.

The Gauteng 5-Year Acid Mine Drainage Plan gives effect to the provincial response to the mine water

contamination challenge in the Province. The Plan outlines various passive treatment and piloting options and

institution and financial models to address the challenge and supports national initiatives by the Department of

Water Affairs to address this challenge.

To further improve efficiency of administration in processing of environmental impact assessment applications

and provide a reliable service in this area of work, the Department finalised the development of the

Environmental Impact Assessment Review System. The system will ensure better efficiency in the review of

applications, ensure consistent decision making and improve quality of decision making, thereby provide a

reliable investment climate/regime for developers.



Key Strategic Priorities and Service Delivery Areas of the DepartmentThe Department continue to provide services in respect of the following key GPG strategic priorities.

Outcome 5a Vibrant, equitable and sustainable and rural communities and food security for all

Outputs1. Sustainable agrarian reform with a thriving small and large farming sector

2. Improved access to affordable and diverse food

3. Improved rural services to support livelihoods

4. Improved employment opportunities and economic livelihoods

Outcome 5b Protected and enhanced environmental assets and natural resources

Outputs

1. Enhanced quality and quantity of water resources

2. Reduced greenhouse gas emissions, climate change impacts and improved air / atmospheric quality

3. Sustainable Environmental Management

4. Protected biodiversity

Outcome 8 An efficient, effective and development oriented public service and empowered, fair and inclusive citizenship

Outputs

1. Service delivery quality and access

2. Human Resource Management and Development

3. Business Process, Systems, Decision Rights & Accountability



1.2. Significant Achievements (Events and Projects) during the year

The following are significant achievements during the year under report:

Departmental Projects• Through the Maize Triangle Programme, Zivuseni Agricultural Cooperative comprised of 35 local small

producers exported 72 tons of maize whilst Siyibane Farming Project also exported 164.14 ton to

Lesotho. This was in partnership with the WFP, which is an internationally recognized agency of the

United Nations (UN). The programme has assisted farmers with various interventions such as on-and

off farm infrastructure mechanization, packaging facilities and grain silos.

• As part of the farmer support programme in the Province, a total of 143 smallholder farmers were

assisted with production inputs: 30 farmers were provided with piggery production inputs, 30

smallholders were provided with poultry production inputs and a total of 83 smallholder farmers were

supported with maize production inputs.

• Support was provided for the establishment of 50 school food gardens with the provision of garden

tools, seeds, compost and watering cans .The gardens were established in order to complement the

food provided by the Department of Education as part of the school nutrition feeding program.

• In line with Gauteng’s vision to increase Agriculture’s contribution to the Province’s GDP, the focus has

been on development of skills and expertise that is required to grow Agri business in the province. In

collaboration with five universities in Gauteng (University of Johannesburg, Wits University, University

of Pretoria, Tshwane University of Technology and Vaal University of Technology), 50 biotechnology

bursaries were awarded, 25 internship opportunities created and 12 students participated in the

Gauteng Biotech fundi Awards. 2 students were awarded travelling scholarships to attend the

Agricultural Biotechnology International Congress in Canada and 1 student from ARC was also funded

to attend the congress through the ABIC Foundation.

• Significant pockets of excellence throughout the department were identified in 2013/14. The Veterinary

Services Branch was awarded the first prize both locally and internationally, for a livestock project which

took place in the Rust de Winter area. The first award was conferred by the World Veterinary Association

in conjunction with the OIE for effective public-private partnerships towards the delivery of services

during the World Veterinary Congress which took place in Prague. The prize was in a form of a trophy

and cash to the value of $1000.



The project went further to win the CPSI’s (Centre for Public Service Innovation) overall award for innovative

partnerships under the ‘Innovator of the year’ category. This was accompanied by a cash prize in the region of

R70, 000.00. The prize money was subsequently used to acquire a mobile livestock handling facility.

A third award scooped by the project was awarded during the Premier’s Service Excellence Awards under the

‘Best project’ category.

• GDARD’s performance in processing development applications (through the Environmental Impact

Assessment system) remain the best the country. Processing more than 40% of the development

applications in the country, the Department has further improved efficiencies in this important regulatory

area, resulting in 314 Environmental Impact Assessment applications processed in 2013/14. The

Department has also formed a strategic alliance with the recently launched Gauteng Investment Centre,

providing investor consultation services on Environmental Impact Assessment process in order to effect

reduced turnaround time for development applications by domestic and foreign investors. This is to

reduce bureaucracy and improve the ease of doing business in the province.

• The designation of Environmental Management Inspectors (EMI) at local authority level is a key

national indicator which forms part of the delivery agreement between the President and the Minister of

Environmental Affairs. GDARD was the first province in the country to designate 3 officials as EMIs at

Emfuleni Municipality. During the year the MEC designated 24 municipal officials as EMIs.

• GDARD was also the only province that obtained approval from the Chief Magistrate of Pretoria to

impose an admission of guilt fines for the National Environmental Management: Waste Act, 2008. It

is therefore important to improve the capacity of the Department to ensure effective compliance to

legislation. Thus the Department is actively engaged in training of officials at municipal level to be

designated as Environmental Management Inspectors.

• Two Departmental officials received special recognition in the year under review. Ms Nontebeko Tsiane

was awarded the Gauteng Provincial Government HR Director of the Year Award while Mr Ali Makgato

received an Outstanding Public Official award during the Premier’s Service Excellence Awards.

• The Department’s Annual Report for the year ended 31 March 2012 was rated among the Top 20

(position 11) by the South African Institute of Government Auditors (SAIGA) during the 2013 Annual

Public Sector Reporting Awards in September 2013. The Annual Public Sector Reporting Awards

recognize the pursuit of excellence in annual reports published by all provincial and national

departments. GDARD was the only other Department in the Gauteng Province to make the Top 20 list.



Departmental Events The following main events were successfully hosted during the year under report:

The Bontle Ke Botho Awards

The Bontle ke Botho Awards seek to recognise wards, schools and municipalities that have initiated best

environmental action project under five themes which are water conservation, energy efficiency, greening,

sustainable agriculture and waste management. It is the concluding part of the BkB campaign designed

to heighten environmental awareness and encourage meaningful actions in communities. The BkB Awards

ceremony to award prizes to the best performing municipalities, wards and schools was held on 21 June 2013.

The best two Metropolitan and 3 Local municipalities won monetary prizes. Five rural schools and 3 wards also

won prizes at the event. The monetary prize is used to improve the existing projects or initiate new ones in line

with the five themes of the campaign.

The Agribusiness and Young Farmer of the Year Awards

The Agribusiness Young Farmer of the Year Awards seeks to encourage youths in agriculture by recognizing

their contributions in the agricultural sector and increase their participation in agricultural activities. The event

aims to award youths in different categories within the agricultural sector. The Department recognized young

farmers for the contribution they made in the agricultural sector through the Awards which took place on 25

June 2013 which was attended by 400 young farmers from across the Province. There were nine awards

categories: Best Youth Worker, Best Homestead Food Garden, Best Community Project, Best Young Disabled

Agri-business of the year, Best Agri-business youth of the year: Informal Markets: Livestock, Best Agri-business

youth of the year: Informal Markets: Crops, Best Agri-business youth of the year: Formal Markets, Best Agri-

business youth of the year: Export Markets and Best Agri-business youth of the year: Processing. The overall

winner in the year under report was Siphiwo Gift Mafuleka of Mphiwe Siyalima Trading Enterpises. He also won

in the category Best Agribusiness Youth of the year: Formal Markets.

The Nama Phepa Awards

The year 2013 marked a decade of the Gauteng Nama Phepa awards. This annual event recognizes abattoirs

that meet the criteria to be rated amongst the best with a view to assuring consumers which outlets are

credible and sell healthy meat. This year’s event took place with Chalmar Beef Abattoir winning in the high

throughput red meat abattoirs category while Leeuwkop Abattoir, a Correctional Services Abbatoir, won in the

low throughput red meat abattoir category. The Department regards this as an achievement for a government-

owned abattoir competing with the private sector to win this award. Earlybird Abattoir won the high throughput

poultry abattoir award while Zain’s Halaal Poultry won the low throughput poultry abattoir award.



Women in Dialogue

To ensure active participation of women in agricultural, environment, veterinary services and rural development,

the MEC held a Women’s Dialogue Stakeholder Engagement with women from the environment, veterinary

services, agriculture and rural development sectors in August 2013. Five hundred women attended the

session. Attendees were given the opportunity to raise issues of concern with the MEC. The event also sought

to address issues of women empowerment and development.

Agricultural Expos

The Department hosted 3 Agricultural Expos in collaboration with private sector agricultural exhibition

companies. The Department hosted the African Farmers’ Expo from 15 -17 August 2013, the Tshwane Spring

Show in September 2013 and the Undercover Farming Expo in March 2014 with the aim of exposing African

farmers to the latest in best practice and technology. The Agricultural expos includes practical workshops

for farmers presented by agricultural production inputs suppliers, machinery suppliers, land bank and

commercial banks agricultural divisions as well as agricultural services providers and parastatals undertaking

research in the sector. The expo aims to serve as a platform for interaction among agriculture stakeholders,

creating opportunities for agricultural trade as well as exchange of ideas and strategies for agri-business and

smallholder farmer development. They are undertaken in the context of enhancing Public-Private partnership

with the aim of accelerating agricultural development in Gauteng province.

Agri-Business Woman of the Year Awards

The Department recognized female farmers for the contribution they made in the agricultural sector through

the Agri-Business Woman of the Year event in August. The aim of this event is to empower and encourage

women in agriculture by recognizing their contributions in the Agricultural industry. The overall winner of the

Agri-Business Winner of the Year Awards 2013 went to Ikhwezi Project led by a woman with a disability and

that has 60% of its members as PWDs.



MTK Awards

The Mma Tshepo Kumbane or MTK Awards are named after environmental activist Mma Tshepo Kumbane.

The MTK Awards encourage communities and schools initiatives and innovations on best natural resource

management practices.

The MTK Awards ceremony took place on 1 November 2013 and 162 projects were nominated in eight different

categories - Best School Greening Projects, Best School Innovative Projects, Best Environmental Rehabilitation

Projects, Best Environmental Awareness Projects, Best Water Management Projects, Best Community Nursery

Projects, Most Innovative Projects and Best Community Based Natural Resources Management (CBNRM)

Projects. Apart from the schools and community projects that won in the eight categories, there were two

overall winners in the year under report - Seetsa Sa Kgwedi Primary School and Bambanani Project and they

each received R25000.00.

MEC Environmental Stakeholders Open Day

This event was held on 14 February 2014 and was designed to afford environmental stakeholders working

in all aspects of the environment, conservation, agriculture and compliance and enforcement to engage

with the MEC of Agriculture and Rural Development on issues of mutual interest and to discuss the work

the Department of Agriculture and Rural Development has done in the environment sector. The event, which

previously focussed on environmental impact assessment, was expanded this year to include compliance

and enforcement issues and conservation issues. The MEC Open Day continues to be the primary interaction

platform for many environmental assessment practitioners, communities and NGOs with the MEC and provides

valuable feedback mechanism in order to improve efficiency in the environment sector.

Clean Fires Campaign (Basa Nje Ngo Magogo)To address in-door pollution, especially in low-income densely populated urban areas (including informal

settlements), the Department hosted two Clean Fires Campaign, referred to as Basa nje ngo Magogo (BNM).

These BNM campaigns were hosted in partnership with the Central Energy Fund in Impumelelo in Devon and

Attridgeville in Tshwane. The campaign sought to educate communities about the dangers of indoor pollution

especially real and often fatal dangers emanating from the use of coal as energy for indoor cooking and space

heating.



1.3. Report on Capital Projects Planned for the 2013/14 financial year

Project description Local Municipality

Inco

mp

lete

Co

mp

lete

d

Appropriation

Institution Name


Booster Pump for the Northern Water Line

Midvaal and Lesedi

× 36 843.00

Suikerbosrand Nature Reserve New Adventure Centre

Midvaal and Lesedi

×

750 000.00

Suikerbosrand Nature Reserve Southern Water Line

Midvaal and Lesedi

x 1 110 122.00

Training CentreNew Kiddies pool construction

Tshwane Municipality

×

103,000.00

TembaUpgrading of Temba Agricultural Offices

Tshwane Municipality x 309 989.00

Suikerbosrand-Kareekloof

Reconstruction of stables into accommodation units


×

300 000.00


Renovation of house 1 to 7

Midvaal and Lesedi × 497 000.00


General renovations of Schoongezicht house, outbuildings and palisade fence

Midvaal and Lesedi × 488 000.00


Replacement of carpet in breakaway rooms and painting of admin

Midvaal and Lesedi × 300,000.00


Upgrading of male and female toilets

Midvaal and Lesedi x 69 000.00


Maintenance and repairs of Ouhoutkamp

Midvaal and Lesedi x 452,000.00


Maintenance of old boom gates at Diepkloof and Schoongezicht



General renovation to Yellow house


Training CentreRenovation of existing swimming pool

Midvaal and Lesedi

×71 706.00

Leeuwfontein Nature Reserve

Basic picnic site for day visitors


x400 000.00

Roodeplaat Nature Reserve Upgrade of power units

Tshwane Municipality x 114 430.00

Maintenance Scheduled maintenanceMidvaal and Lesedi × 977 408.00

Maintenance

External upgrade of ARC1 and 2 Building at Vredehuis

Midvaal and Lesedi

×

x 142 592.00

TOTAL 7 406 000.00



Capital projects that are currently in progress and when they are expected to be completed

Project description Local MunicipalityExpected Completion

dateInstitution Name



30 May 2014


31 December 2015

2. SPENDING TRENDSSpending Trends for the previous years

2009/10 2010/11 2011/12 2012/13 2013/14

R’000 R’000 R’000 R’000 R’000

Final Appropriation 436,843 444,373 489,850 517,659 554,177

Adjustments 410,490 443,672 516 658 516 479 554,177

Expenditure 409,908 411,736 476 949 515 887 549,139

(Over) / Under Expenditure 582 31,936 39,709 1,772 5,038

% Budget increase from previous year 9% 7% 16% 5% 7%

% of appropriation spent 99.9% 92.8% 92.3% 99.7% 99,1 %

Reasons for overspending/underspending

Programme Name

2013/2014

Final Appropriation

Actual Expenditure

(Over) / Under Expenditure

R’000 R’000 R’000

Administration 156,592 155,615 977

Agriculture & Rural Development 253,440 253,150 290

Environmental Affairs 144,145 141,374 3,771

TOTAL 554,177 550,741 5,038

The Department underspent by 0.6%. The main underspending is under Compensation of Employees due to

vacancies in the Department.



Programme 1 – Administration: R977 thousand This Programme spent 99.4% of its allocated budget for the 2012/2013 financial year. The main underspending

was under Compensation of Employees because of the late filling of the posts of the Head of Department and

the Chief Financial Officer.

Programme 2 - Agriculture and Rural Development: R290 thousand This Programme spent 99.9% of its allocated budget. An amount of R281 thousand was not spent on payment

for Capital Assets. The money was committed but actual payment could not be made before the end of the

financial year.

Programme 3 - Environmental Affairs: R3,7 millionThis Programme spent 98.1% of its allocated budget. An amount of R3,7 million was not spent under the

Compensation of Employees budget. The under-spending can be attributed to OSD vacancies not filled during

the financial year.

Impact on programmes and service deliveryThe consolidated performance information as required in terms of the PFMA is included in this annual report

for the year ending 2013/2014. Monitoring of targets set in the Annual Performance Plan and Programme of

Action is carried out on a monthly and quarterly basis. Quarterly reports were submitted to the Legislature. This

is supported by quarterly reviews with the MEC and HOD in which there is robust interrogation with the aim of

finding solutions where targets were not being achieved. Of all the APP targets, the Department has achieved

83%of its targets for the 2013/2014 financial year with 17% not being achieved.

Utilisation of donor funds No donor funds were received for the 2013/2014 financial year.

3. OUTLOOK/ PLANS FOR THE FUTURE TO ADDRESS FINANCIAL CHALLENGES

The Department has been without a CFO for the last 18 months and several efforts to recruit have not yielded

results. The filling of this position is of critical importance and priority. The Department will keep on improving

on its financial processes and controls to ensure that the budget get spent according to EPRE taking into

consideration relevant laws such as the Public Finance Management Act (PFMA) and Treasury Regulations.

Key Areas of focus in the coming year are:• Establishing Programme and Contract Management processes

• Addressing capacity gaps in the CFO’s office

• Improving controls and establishing a committee that will address financial mismanagement in the

department

• Improving asset management and control



3.1. Revenue

2013/2014 2012/2013

Departmental receipts Estimate Actual Amount

Collected


Estimate Actual Amount

Collected


R’000 R’000 R’000 R’000 R’000 R’000


850 743 107 620 671 (51)


40 1 39 6 80 (74)


500 285 215 940 1 355 (415)

Total 1 390 1 029 361 1 566 2 106 (540)

Sale of goods and services other than capital assetsThe saving is due to the decline in collection of revenue for replacement of access cards as the Department moved

to the new Building 11 Diagonal Street. Access cards are not being used currently. The revenue item relates also

to Commission charges on insurance and Garnishee orders which decreased in the 2013/2014 financial year thus

impacting on Revenue Collection.

Interest, dividends and rent on landThe under collection in this revenue item can be attributed to the fact that the Department wrote off a huge amount of

supplier debts at the end of March 2013. These were supplier debts which had no prospect of being recovered as all

avenues to collect had been exhausted. Interest charges are less than R1 000.00 for the 2013/2014 financial year.

Financial transactions in assets and liabilitiesThis revenue item relates to the recovery of previous year expenditure which is lower than what was originally projected

to be collected.



4. ORGANISATIONS TO WHICH TRANSFER PAYMENTS HAVE BEEN MADE

Transfer payments were made to municipalities, government agencies and other related bodies. The

Department ensured compliance with section 38(1)(i) of the PFMA. Detail of transfer payments made is below:

Name of transferee Type of organisation Purpose for which the funds were used

Amount transferred

(R’000)SANBI Departmental Agencies and

AccountsWetlands rehabilitation R1 600


Research Agenda projects R1 360


Farmer training R2 200

RAND WATER Public Corporations Alien plants removal & MTK awards

R5 689

RAND WATER Public Corporations Agro processing R5 700

RAND WATER Public Corporations Production inputs R10 485

UJ Universities and Technikon Research agenda & bursaries

R730

VUT Universities and Technikon Research agenda & bursaries

R250

UP Universities and Technikon Research agenda & bursaries

R700

UNISA Universities and Technikon Research agenda & bursaries

R200

WITS Universities and Technikon Research agenda & bursaries

R450

TUT Universities and Technikon Research agenda & bursaries

R826

Lesedi Municipality Municipality Alien vegetation Eradication

R1 300

Merafong Municipality Municipality Alien vegetation Eradication

R750

City of Johannesburg Municipality River clean -up project. R2600Emfuleni Municipality Municipality Alien vegetation

EradicationR750

Ekurhuleni Municipality Municipality Tembisa urban Renewal R1 425

Lesedi Municipality Municipality Devon Tannery R500



5. GRANT RECEIVED AND THE EXPENDITURE INCURRED

GRANT NAMEADJUSTED

BUDGETEXPENDINTURE AS AT 31 March 2014

AVAILABLE BUDGET

% SPENT

AGRICULTURE DISASTER MANAGEMENT 4,274 4,484 210 95.3%

CASP 32,701 32,701 0 100.0%

ERP 18,695 18,785 (90) 100.5%

Total CASP 55,880 55,760 120 99.8%

ILIMA/LETSEMA 17,538 17,538 0 100.0%

EPWP – Integrated Incentive Grant 606 606 0 100.0%

Land Care Programme – Poverty Relief & Infrastructure 6,163 6,163 0 100.0%

CONDITIONAL GRANT TOTAL 80,187 80,067 120 99.9%

6. VIREMENTS/ROLL OVERS

Programme 1: Administration

A total amount of R3, 943 million was moved to Programme 1 as follows:

Senior Management sub programme received R1 925 million to cater for shortfall on security services contract

during the financial year. Corporate Services sub programme received R2 018 to fund shortfall relating to fuel

and maintenance of departmental vehicles.

Programme 2: Agriculture and Rural Development

A total amount of R3 019 million was moved from Programme 2 as follows:

A saving of R3 943 was realised from Veterinary Services sub programme as the Department budgeted

for contingency plan for animal outbreaks during this financial year. Famer Support and Development sub

programme received R924 thousand to fund shortfalls under Compensation of Employees in this Programme.

Programme 3: Environmental Affairs

A total amount of R924 thousand was moved to programme 2 as follows: A total amount of R924 thousand was moved from Biodiversity Management to Programme 2, to fund critical

posts in Programme 2. Recruitment was done in line with the needs of the Department as well as critical posts

identified.



7. UNAUTHORISED, FRUITLESS AND WASTEFUL EXPENDITURE

Item AmountR’000

Intervention Challenges

Unauthorised Expenditure

R 5 442 This relates to the unauthorised expenditure in 2005/2006 financial year which was not condoned. Approval was given by Gauteng Provincial Treasury for the unauthorized expenditure to become a first charge against the Budget of the Department for the 2013/2014 Financial Year. The Department has since cleared the unauthorized expenditure from their records

None

Fruitless and Wasteful

Expenditure

R 13 Suppliers were requested to forward invoices to the Department electronically to speed up the payment process and avoid interest charges.

The SCOA changes that took effect on 1 April 2013, had a huge impact on Suppliers being paid timely. The first run took place only in the 3rd week of April 2013 and therefore payments were made late to Suppliers. With receipt of invoices in May 2013, the Office of the Auditor General and Magalies Water charged interest due to late payments made in April 2013.

Even though invoices are submitted electronically by Suppliers, it is still submitted too late to ensure payments are made before the due date. Meetings were held with Suppliers but this still remains a huge challenge to the Department.

Irregular Expenditure

R 3 188 There is now a dedicated person who ensures that tender points are calculated correctly by the BEC before the tender is forwarded to DAC. Training has also been offered to officials dealing with Tenders. Tender points are verified by someone who was not part of the evaluation process of the tender.

This relates to a tender that was awarded last year whereby there was an error in the calculation of Functionality Points. This was caused by shortage of staff and now extra capacity has since been secured.



8. CAPACITY CONSTRAINTSThe Departmental vacancy rate at the end of the financial year was at 17.3%. Two recruitment drives were

embarked in the 2013/2014 financial year. Attracting and retaining scarce skills remains problematic due to

the pressures in this area from other Government Departments and the private sector. As a result the Chief

Financial Officer post remained unfilled in the year under review as a suitable candidate could not be found

despite interviews held in a bid to fill the post. The post of the Head of Department also remained unfilled for a

greater part of the year. Plans are underway to fill the Chief Financial Officer post in the 2014/15 financial year.

The Department has continued to appoint interns, learners and contract workers and has closely monitored

the retention processes. In addition the Department offers bursaries to deserving individuals to assist in

building a pool of skills for scarce skills areas. Bursaries with Tshwane University of Technology, University of

Pretoria, University of South Africa and the University of Johannesburg were continued in 2013/2014 financial

year. However, increased demands on the Department’s services and additional mandates without concurrent

funding remain a challenge.

9. PUBLIC PRIVATE PARTNERSHIPS (PPP)The Department did not enter into any Public Private Partnership for the year under review.

10. CORPORATE GOVERNANCE ARRANGEMENTS

The Department maintains a high standard of governance. The Department has a functional Risk Management

unit and Ethics Committee. The Department is serviced by the Provincial Audit Committee responsible for

the economic cluster. The committee consists of external members from civil society and is attended by

the Department’s HOD, CFO and CRO. Chief Directors also attend meetings of the Audit Committee. The

Audit Committee is effective in that it provides valuable support and oversight to the Department in relation

to financial management and accountability. The Audit Committee was functional and reviewed all plans and

progress for the 2012/13 financial year.

Risk Management

Effective management of risk and opportunity is essential in the achievement of the department‘s goals and

objectives. Risk Management has remained an integral part of the operations of the department during the

year under review.

The Department has adopted the Gauteng Provincial Government Risk Management Framework approach

to Risk Management which means that each key risk in every business unit of the department is included in a

structured framework and systematic process of Risk Management. Risk assessment reviews are conducted

annually and specifically address strategic, operational, human resource, information technology, financial

and reputational risks as well as risks covered by the legislation on Health, Safety and Environmental issues.

The Risk Management unit is headed by the Chief Risk Officer and it now reports directly to the Accounting

Officer. The unit has been given access to Top Management and facilitate the process of embedding Risk

Management into day-to-day activities and management processes within the department. This includes the

following activities:



• Conducting annual strategic risk assessments;

• Conducting operational risk assessments or re-evaluate key risks for all business units at-least annually;

• Regular reviews and update of risk registers and progress on management actions intended to mitigate or

reduce the identified risks;

• Development of contingency plans for high risks;

• Early identification of emerging risks and initiation of risk reduction or mitigation actions; and

• Monitor and report on key risks affecting the department including any incidents or losses.

The Risk Management unit and line managers are accountable on risk mitigation to the Risk Management

Committee which meets every quarter. The Head of Department is ultimately responsible for Risk management

within the department. The Head of Department is accountable to the Executive Authority regarding the

effectiveness of the Risk Management process.

• Risks are reported to the following oversight bodies

• The Audit Committee

• Executive Management Team

• Risk Management Committee

• Gauteng Provincial Government Risk Management Forums

The risk identification process is performed at risk assessment workshops and includes all risks whether or not

such risks are under the control of the department.

The Risk Management culture continues to improve and management is more committed with regard to reporting

on risks identified for their specific directorate as well as reporting emerging risk to the Risk Management

unit. This has ensured a continuous monitoring of identified risks as well as updating of alternative mitigation

actions with risks that require much detailed attention.

Fraud and Corruption

The Department has a Fraud Prevention Policy and Prevention Plan in place. The main objectives of the Plan

include the following:

• Developing a culture of ethical behaviour and instilling zero-tolerance to fraud and corruption;

• Sending a clear message to all employees and members of the public who interact with the department

that it is committed to fighting fraud and corruption;

• Improving accountability, efficiency and effective administration within the department and to deal

decisively with acts of fraud and corruption;

• Improving the application of systems, policies, procedures and regulations;

• Encouraging all employees and other stakeholders to strive towards the prevention and detection of fraud

and corruption impacting or having the potential to impact the department

The Department continues to implement the GPG Whistleblowing Policy, with guidance for staff on anonymous

reporting. Reporting can be done through the departments’ Legal representative, Member of the Executive

Council, Public Service Commission, Public Protector, The Auditor General, The Gauteng Premiers’ Office,

National Gauteng Hotline by form of South African telephone numbers, or post, with the Chief Risk Officer as

the principal contact.



All employees and other stakeholders have the opportunity to make confidential disclosures about any

suspected impropriety and wrongdoing. Confidential disclosures can be made to the National Anti-Corruption

Hotline (“NACH”) which is maintained by the Public Service Commission (“PSC”). All reported cases are

thoroughly investigated and where necessary dealt with in terms of disciplinary code and procedures.

The Department is supported by the Gauteng Department of Finance: Forensic Services unit with regard to

dealing with all cases of fraud and corruption reported through to the department. The unit fulfils the department’s

objective of timeously investigating and reporting fraud and corruption and other related irregularities.

Minimising Conflict of InterestAll SMS members submitted their financial disclosures in the year under review. In addition, the MEC required

officials in Finance (Procurement and Financial Management), officials at the level of Assistant Directors and

above in the Department to complete the declaration of financial interest. Approval must also be obtained

before any remunerative work outside the public service can be undertaken by officials. In terms of the

Remunerative Work Outside the Public Service Policy that governs this, an official cannot seek approval to do

work that would be in conflict with his/her job responsibility in the Department.

Code of Conduct/Ethics

The Department complies with the Public Service Code of Conduct. An Ethics Committee has been

established and an Ethics Officer has been appointed by the Head of Department. The Committee meets

once every quarter and part of its functions includes oversight, training, reporting and advice on ethics related

matters. The Ethics Committee carried out extensive awareness on Ethics and the Public Service Code of

Conduct in the year under report. Two ethics related policies were also amended and approved: the Policy

on Remunerative Work Outside the Public Service and the Gifts and Donations Policy. In terms of the latter,

the Department has now put in place a no-gifts policy. The Disciplinary Code and Procedures guides issues

relating to discipline in the Department.

Occupational Health and Safety (OHS)

Occupational health and safety is being addressed with the appointment of a Deputy Director: Safety and

Security. Plans are being put in place to revive the Department’s Occupational Health and Safety Committee.

Internal Control UnitThe Internal Audit function is carried out by Gauteng Audit Services within the Department of Finance. A risk

assessment was conducted by the Department which formed the basis for all the internal audit work done

during the year under review. The Internal Audit Plan was duly approved by the Audit Committee as part of their

oversight duties in ensuring that all high risk areas of the business are audited. In the 20134/14 financial year

the Gauteng Audit Services planned to perform 16 audits and completed 16 audits.



11. SERVICES RENDERED BY THE DEPARTMENT

The Services rendered by the Department are covered under Section 1.1 of the Accounting Officer’s report.

12. TARIFF POLICYThe Department charges tariffs/fines based on the various legislative frameworks that form the mandate of the

Department. These include:

• Convention of International Trade in endangered species of fauna and flora (CITES) export, import, re-

export and general permits;

• Veterinary export certification and post-import control;

• Visitor services at the Nature Reserves;

• Section 24G NEMA fines (Section 24G of NEMA specifically refers to an “administration fine” which

serves as an initial penalty for activities that commence prior to authorisation as required by NEMA as

well as contravention of the conditions applicable to any environmental authorisation) using a calculator

developed jointly by the National Department of Environmental Affairs and Tourism and the relevant

Provinces.

13. FREE SERVICESThe Department provides all agricultural and environmental related services free of charge to the public. These

services include:

• Preparation of business plans

• Feasibility studies

• Training, conferences and information sessions

• Ploughing of farms

• Processing of Environmental authorisation applications

For more information, please refer to the Cost Recovery Annual Financial Statements.

14. TRADING ENTITIES AND PUBLIC ENTITIES

The Department manages a Cost Recovery Trading Account which is used for the recovery of costs in the

following areas:

• Veterinary Services and Conservation – CITES, export certification and post-import control revenue and

associated costs.

• Conservation – Visitor services collections and associated costs

• Compliance and Enforcement – section 24G NEMA Administrative fines

For more information please refer to the Cost Recovery Annual Financial Statements.



15. DISCONTINUED ACTIVITIES/ACTIVITIES TO BE DISCONTINUED

No activities were discontinued.

16. NEW OR PROPOSED ACTIVITIES

There are no new/proposed activities.

17. EXEMPTIONS AND DEVIATIONS RECEIVED FROM THE NATIONAL TREASURY

No exemptions and deviations were received from National Treasury for the 2013/14 financial year.

18. EVENTS AFTER THE REPORTING DATE

A notable event that has occurred is the elections that took place on 7 May 2014 which has ushered in a new

five year term of government. While at this time the changes in relation to policies might not be major, the

Department is preparing for the a strategic planning session to put in place a Strategic Plan for the next five

year term of government. In addition, the Department has also experienced a change in the political leadership

with Ms Faith Mazibuko being appointed as the Member of the Executive Council for the Department.

19. OTHER

Supply Chain Management

• The Department did not have any unsolicited bids during the year under review.

• A lot has been done during the course of the financial year to improve compliance with all relevant

prescripts in Supply Chain Management (SCM). An Action Plan was developed and it is monitored on

a monthly basis. A Checklist was also developed and is attached to all Procurement transactions thus

ensuring total compliance with procurement procedures.

• The migration of procurement functions from the Gauteng Department of Finance (GDF) in the 2012/2013

financial year amplified the need for extra human capacity. A work study has since been started by GDF

so as to ensure that the SCM unit is properly capacitated.

_____________________

Ms Thandeka Mbassa

Head of Department: Agriculture and Rural Development

Date: 31 July 2014



ACCOUNTING OFFICER’S STATEMENT OF RESPONSIBILITY

Statement of Responsibility for the Annual Financial Statements for the year ended 31 March 2013

The Accounting Officer is responsible for the preparation of the department’s annual financial statements and

for the judgements made in this information.

The Accounting Officer is responsible for establishing, and implementing a system of internal control designed

to provide reasonable assurance as to the integrity and reliability of the annual financial statements

In my opinion, the financial statements fairly reflects the operations of the Department for the financial year

ended 31 March 2013

The external auditors are engaged to express an independent opinion on the AFS of the department.

The Department of Agriculture and Rural Development AFS for the year ended 31 March 2014 have been

examined by the external auditors and their report is presented on page 160.

The Annual Financial Statements of the Department set out on page 164 to page 221 have been approved.

______________________________

Ms Thandeka Mbassa

ACCOUNTING OFFICER


Date 31 March 2014


REPORT OF THE AUDITOR-GENERALfor the year ended 31 March 2014

REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE ON VOTE NO. 11: GAUTENG DEPARTMENT OF AGRICULTURE AND RURAL DEVELOPMENTReport on the financial statements

Introduction

1. I have audited the financial statements of the Gauteng Department of Agriculture and Rural

Development set out on pages 164 to 234, which comprise the appropriation statement, the statement

of financial position as at 31 March 2014, the statement of financial performance, statement of changes

in net assets and the cash flow statement for the year then ended, and the notes, comprising a

summary of significant accounting policies and other explanatory information.

Accounting Officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation and fair presentation of these financial

statements in accordance with Modified Cash Standards and the requirements of the Public Finance

Management Act of South Africa, 1999 (Act No 1 of 1999) (PFMA), and for such internal control as the

accounting officer determines is necessary to enable the preparation of financial statements that are free

from material misstatement, whether due to fraud or error.

Auditor-general’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004)

(PAA), the general notice issued in terms thereof and International Standards on Auditing. Those

standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures

in the financial statements. The procedures selected depend on the auditor’s judgement, including the

assessment of the risks of material misstatement of the financial statements, whether due to fraud or

error. In making those risk assessments, the auditor considers internal control relevant to the entity’s

preparation of the financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s

internal control. An audit also includes evaluating the appropriateness of accounting policies used and

the reasonableness of accounting estimates made by management, as well as evaluating the overall

presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my

audit opinion.



Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Gauteng Department of Agriculture and Rural Development as at 31 March 2014, and its financial performance and cash flows for the year then ended in accordance with the Modified Cash Standards as prescribed by the National Treasury and the requirements of the PFMA.

Emphasis of matters

7. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Significant uncertainties

8. With reference to note 22 to the financial statements, the department is the defendant in various court

cases. The ultimate outcome of these matters cannot presently be determined, and no provision for any

liability that may result has been made in the financial statements.

Accruals

9. With reference to note 24 to the financial statements, the department incurred accruals amounting to R9

072 000 for the financial year ended 31 March 2014. This amount, in turn, exceeds the voted funds to be

surrendered of R3 453 000 as per the statement of financial performance by R5 619 000. The amount of

R5 619 000 would have resulted in unauthorised expenditure if the balance was settled at year end.

Expenses recovered from the trading entity

10. With reference to note 16 to the financial statements, the department recovered management fees and

general expenses amounting to R7 030 000 from the Cost Recovery trading entity, for expenditure that

was incurred by the department during the year on behalf of the entity. The amount received was offset

against total expenditure incurred. This amount did not form part of the departmental revenue to be

surrendered.

Additional matters

11. I draw attention to the matters below. My opinion is not modified in respect of these matters.

Unaudited supplementary schedules

12. The supplementary information set out on pages 223 to 234 does not form part of the financial

statements and is presented as additional information. I have not audited these schedules and,

accordingly, I do not express an opinion thereon.

Report on other legal and regulatory requirements

13. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives

14. I performed procedures to obtain evidence about the usefulness and reliability of the reported

performance information for the following selected programmes presented in the annual performance

report of the department for the year ended 31 March 2014



• Programme (2): Agriculture and rural development on pages 44 to 72

15. I evaluated the reported performance information against the overall criteria of usefulness and reliability.

16. I evaluated the usefulness of the reported performance information to determine whether it was

presented in accordance with the National Treasury’s annual reporting principles and whether the

reported performance was consistent with the planned programmes. I further performed tests to

determine whether indicators and targets were well defined, verifiable, specific, measurable, time bound

and relevant, as required by the National Treasury’s Framework for managing programme performance

information.

17. I assessed the reliability of the reported performance information to determine whether it was valid,

accurate and complete.

18. I did not raise any material findings on the usefulness and reliability of the reported performance

information for agriculture and rural development programmes.

Additional matter

19. Although I raised no material findings on the usefulness and reliability of the reported performance

information for the selected programmes, I draw attention to the following matters:

Achievement of planned targets

20. Refer to the annual performance report on pages 36 to 44 for information on the achievement of the

planned targets for the year.

Compliance with laws and regulations

21. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Annual financial statements

22. The financial statements submitted for auditing were not prepared in accordance with the prescribed

financial reporting framework and supported by full and proper records as required by section 40(1)

(a) and (b) of the PFMA. Material misstatements of expenditure and disclosure items identified by the

auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit

opinion.

Human resource management

23. Employees were appointed without verifying the criminal record checks as required by Public Service

Regulation 1/VII/D8 (PSR).

Expenditure management

24. Effective steps were not taken to prevent irregular expenditure as required by section 38(1)(c)(ii) of the

PFMA and Treasury Regulations 9.1.1 (TR).



25. Contractual obligations and money owed by the department were not always settled within 30 days or an

agreed period, as required by section 38(1)(f) of the PFMA and TR 8.2.3.

Asset management

26. Proper control systems to safeguard and maintain assets were not implemented as required by section

38(1)(d) of the Public Finance Management Act and Treasury Regulation 10.1.1(a). Assets were not

adequately managed, reconciled and verified throughout the year.

Internal control

27. I considered internal control relevant to my audit of the financial statements, performance report and

compliance with legislation. The matters reported below are limited to the significant internal control

deficiencies that resulted in the findings on compliance with legislation included in this report.

Leadership

28. Leadership did not exercise adequate oversight of financial reporting, compliance and related internal

controls.

Financial and performance management

29. Management did not adequately review the financial statements and information supporting disclosure

notes for completeness and accuracy prior to their submission for audit.

30. Management did not adequately review and monitor compliance with the PFMA and the PSR.

Other reports

Investigations

31. The forensic unit is performing investigations at the request of the department. The investigations were

initiated on allegations of possible fraud and misappropriation of the department’s assets. The outcomes

of the investigations are not yet finalised.

Johannesburg31 July 2014Annual Financial Statements


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NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2014

Notes to the Appropriation Statement

1.1 Detail of transfers and subsidies as per Appropriation Act (after Virement):

Detail of these transactions can be viewed in the note on Transfers and subsidies, disclosure notes and Annexure 1 (A-

H) to the Annual Financial Statements.

1.2 Detail of specifically and exclusively appropriated amounts voted (after Virement):

Detail of these transactions can be viewed in note 1 (Annual Appropriation) to the Annual Financial Statements.

1.3 Detail on payments for financial assets

Detail of these transactions per programme can be viewed in the note on Payments for financial assets to the Annual

Financial Statements.

1.4 Explanations of material variances from Amounts Voted (after Virement):

4.1 Per programme Final

Appropriation

Actual

Expenditure

Variance

R’000

Variance as a % of

Final Appropriation1. Administration 156,592 155,615 977 0.62%2. Agriculture and Rural

Development253,440 253,150 290 0.11%

3. Environment Affairs 144,145 134,933 9,212 6.39%

4.2 Per economic classification Final

Appropriation

Actual

Expenditure

Variance Variance as a % of

Final AppropriationR’000 R’000 R’000 R’000

Current paymentsCompensation of employees 303,632 291,624 12,008 3.95%Goods and services 202,077 201,491 586 0.29%Interest and rent on land 7 7 - 0.00%Unauthorised expenditure

approved

- - - -

Transfers and subsidies

Provinces and municipalities 7,325 7,325 - 0.00%Departmental agencies and

accounts

6,056 6,056 - 0.00%

Higher education institutions 3,156 3,156 - 0.00%Public corporations and private

enterprises

- - - -

Foreign governments and

international organisations

21,645 21,645 - 0.00%

Non-profit institutions - - - -Households 609 609 - 0.00%Gifts and donations - - - -Payments for capital assets


NOTES TO THE APPROPRIATION STATEMENTfor the year ended 31 March 2014

Buildings and other fixed

structures

5,906 5,838 60 1.15%

Machinery and equipment 3,739 5,922 (2,183) (58.38%)Heritage assets - - - -Specialised military assets - - - -Biological assets - - - -Land and subsoil assets - - - -Intangible assets - - - -

Payments for financial assets 25 25 - 0.00%

4.3 Per conditional grant Final

Appropriation

Actual

Expenditure

Variance Variance as

a % of Final

AppropriationR’000 R’000 R’000 R’000

Agriculture,Forestry & FisheriesIlima/Letsema Projects 17,538 17,538 - 0.00%Land Care P Grt:Pov Re&Inf 6,163 6,163 - 0.00%Compr Agric Supp Pr Grnt 55,880 55,760 120 0.21%EPWP:Integrated Incentive Grant 606 606 - 0.00%

5. Reconciliation of the underspending as reported in the Appropriation Statement

2013/14 2012/13R’000 R’000

Actual underspending as per the

allocated funds

3,449 1,721

Actual amount received from

Cost Recovery Trading Entity

5,441 -

Amount receivable from Cost

Recovery Trading Entity relating

to Management Fees

1,589 -

TOTAL 10,479 1,721

The Department recovered management fees and general expenses amounting to R7 030 000 from the Cost

Recovery Trading Entity, for expenditure that was incurred by the Department during the year of the entity. The amount

received was offset against total expenditure incurred. This amount did not form part of the department revenue to be

surrendered.


STATEMENT OF FINANCIAL PERFORMENCEfor the year ended 31 March 2014

Note 2013/14 2012/13R’000 R’000

REVENUE Annual appropriation 1 554,177 517,659Departmental revenue 3 1,030 2,106

TOTAL REVENUE 555,207 519,765

EXPENDITURE Current expenditureCompensation of employees 4 291,623 267,596Goods and services 5 201,487 192,732Interest and rent on land 6 7 14Unauthorised expenditure approved without funding 10 5,441 -

Total current expenditure 498,558 460,342

Transfers and subsidiesTransfers and subsidies 8 38,792 30,807Total transfers and subsidies 38,792 30,807

Expenditure for capital assetsTangible assets 9 11,760 23,390Intangible assets 9 - 593Total expenditure for capital assets 11,760 23,983

Payments for financial assets 7 25 756

TOTAL EXPENDITURE 549,135 515,888

SURPLUS/(DEFICIT) FOR THE YEAR 6,072 3,877

Reconciliation of Net Surplus/(Deficit) for the year Voted funds 5,042 1,771

Annual

appropriation

4,922 1,485

Conditional grants 120 286Departmental revenue and NRF Receipts 16 1,030 2,106SURPLUS/(DEFICIT) FOR THE YEAR 6,072 3,877


STATEMENT OF FINANCIAL POSITIONas at 31st March 2014

Note 2013/14 2012/13R’000 R’000

ASSETS

Current assets

5,601 8,379Unauthorised expenditure 10 - 5,441Cash and cash equivalents 11 2,395 32Prepayments and advances 13 40 30Receivables 14 3,166 2,876

TOTAL ASSETS 5,601 8,379

LIABILITIES

Current liabilities

5,601 8,379Voted funds to be surrendered to

the Revenue Fund

15 4,991 1,721

Departmental revenue and NRF 16 153 555Bank overdraft 17 - 6,035Payables 18 457 68

TOTAL LIABILITIES 5,601 8,379

NET ASSETS - -


CASH FLOW STATEMENTfor the year ended 31 March 2014

Note 2013/14 2012/13R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts 555,207 519,765Annual appropriated funds received 1.1 554,177 517,659Departmental revenue received 3 1,030 2,026

Net (increase)/decrease in working capital 5,530 2,454Surrendered to Revenue Fund (3,204) (41,649)Current payments (498,551) (460,342)Interest paid 6 7Payments for financial assets (25) (756)Transfers and subsidies paid (38,792) (30,807)Net cash flow available from operating activities 20 20,158 (11,335)

CASH FLOWS FROM INVESTING ACTIVITIES

Payments for capital assets 9 (11,760) (23,983)Net cash flows from investing activities (11,760) (23,983)

Net increase/(decrease) in cash and cash equivalents 8,398 (35,318)

Cash and cash equivalents at beginning of period (6,003) 29,315

Cash and cash equivalents at end of period 21 2,395 (6,003)


ACCOUNTING POLICIESfor the year ended 31 March 2014

1. Accounting Policies

Summary of significant accounting policies

The financial statements have been prepared in accordance with the following policies, which have been applied

consistently in all material aspects, unless otherwise indicated.

The historical cost convention has been used, except where otherwise indicated. Management has used assessments

and estimates in preparing the annual financial statements. These are based on the best information available at

the time of preparation.

Where appropriate and meaningful, additional information has been disclosed to enhance the usefulness of the

financial statements and to comply with the statutory requirements of the Public Finance Management Act (PFMA),

Act 1 of 1999 (as amended by Act 29 of 1999), and the Treasury Regulations issued in terms of the PFMA and the

annual Division of Revenue Act.

1 Basis of preparation

The financial statements have been prepared in accordance with the Modified Cash Standard.

2 Going concern

The financial statements have been prepared on a going concern basis.

3 Presentation currency

Amounts have been presented in the currency of the South African Rand (R) which is also the functional

currency of the department.

4 Rounding

Unless otherwise stated financial figures have been rounded to the nearest one thousand Rand (R’000).

5 Foreign currency translation

Cash flows arising from foreign currency transactions are translated into South African Rands using the

exchange rates prevailing at the date of payment / receipt.

6 Current year comparison with budget

A comparison between the approved, final budget and actual amounts for each programme and economic

classification is included in the appropriation statement.

7 Revenue

7.1 Appropriated funds

Appropriated funds comprises of departmental allocations as well as direct charges against the revenue

fund (i.e. statutory appropriation).

Appropriated funds are recognised in the statement of financial performance on the date the appropriation

becomes effective. Adjustments made in terms of the adjustments budget process are recognised in the

statement of financial performance on the date the adjustments become effective.

The net amount of any appropriated funds due to / from the relevant revenue fund at the reporting date is

recognised as a payable / receivable in the statement of financial position.



7.2 Departmental revenue

Departmental revenue is recognised in the statement of financial performance when received and is

subsequently paid into the relevant revenue fund, unless stated otherwise.

Any amount owing to the relevant revenue fund at the reporting date is recognised as a payable in the

statement of financial position.

7.3 Accrued departmental revenue

Accruals in respect of departmental revenue (excluding tax revenue) are recorded in the notes to the

financial statements when:

• it is probable that the economic benefits or service potential associated with the transaction will flow to

the department; and

• the amount of revenue can be measured reliably.

The accrued revenue is measured at the fair value of the consideration receivable.

Accrued tax revenue (and related interest and / penalties) is measured at amounts receivable from

collecting agents.

8 Expenditure

8.1 Compensation of employees

8.1.1 Salaries and wages

Salaries and wages are recognised in the statement of financial performance on the date of payment.

8.1.2 Social contributions

Social contributions made by the department in respect of current employees are recognised in the

statement of financial performance on the date of payment.

Social contributions made by the department in respect of ex-employees are classified as transfers to

households in the statement of financial performance on the date of payment.

8.2 Other expenditure

Other expenditure (such as goods and services, transfers and subsidies and payments for capital assets)

is recognised in the statement of financial performance on the date of payment. The expense is classified

as a capital expense if the total consideration paid is more than the capitalisation threshold.

8.3 Accrued expenditure payable

Accrued expenditure payable is recorded in the notes to the financial statements when the goods are

received or, in the case of services, when they are rendered to the department.

Accrued expenditure payable is measured at cost.

8.4 Leases

8.4.1 Operating leases

Operating lease payments made during the reporting period are recognised as current expenditure in the


The operating lease commitments are recorded in the notes to the financial statements.



8.4.2 Finance leases

Finance lease payments made during the reporting period are recognised as capital expenditure in the


The finance lease commitments are recorded in the notes to the financial statements and are not

apportioned between the capital and interest portions.

Finance lease assets acquired at the end of the lease term are recorded and measured at the lower of:

• cost, being the fair value of the asset; or

• the sum of the minimum lease payments made, including any payments made to acquire ownership

at the end of the lease term, excluding interest.

9 Aid Assistance

9.1 Aid assistance received

Aid assistance received in cash is recognised in the statement of financial performance when received.

In-kind aid assistance is recorded in the notes to the financial statements on the date of receipt and is

measured at fair value.

Aid assistance not spent for the intended purpose and any unutilised funds from aid assistance that are

required to be refunded to the donor are recognised as a payable in the statement of financial position.

9.2 Aid assistance paid

Aid assistance paid is recognised in the statement of financial performance on the date of payment. Aid

assistance payments made prior to the receipt of funds are recognised as a receivable in the statement of

financial position.

10 Cash and cash equivalents

Cash and cash equivalents are stated at cost in the statement of financial position.

Bank overdrafts are shown separately on the face of the statement of financial position.

For the purposes of the cash flow statement, cash and cash equivalents comprise cash on hand, deposits

held, other short-term highly liquid investments and bank overdrafts.

11 Prepayments and advances

Prepayments and advances are recognised in the statement of financial position when the department

receives or disburses the cash.

Prepayments and advances are initially and subsequently measured at cost.

<Indicate when prepayments are expensed and under what circumstances.>

12 Loans and receivables

Loans and receivables are recognised in the statement of financial position at cost plus accrued interest,

where interest is charged, less amounts already settled or written-off.

13 Investments

Investments are recognised in the statement of financial position at cost.



14 Impairment of financial assets

Where there is an indication of impairment of a financial asset, an estimation of the reduction in the recorded

carrying value, to reflect the best estimate of the amount of the future economic benefits expected to be

received from that asset, is recorded in the notes to the financial statements.

15 Payables

Loans and receivables are recognised in the statement of financial position at cost.

16 Capital Assets

16.1 Immovable capital assets

Immovable capital assets are initially recorded in the notes to the financial statements at cost. Immovable

capital assets acquired through a non-exchange transaction is measured at fair value as at the date of

acquisition.

Where the cost of immovable capital assets cannot be determined accurately, the immovable capital

assets are measured at R1 unless the fair value of the asset has been reliably estimated, in which case the

fair value is used.

All assets acquired prior to 1 April 2002 (or a later date as approved by the OAG) are recorded at R1.

Immovable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.

Subsequent expenditure that is of a capital nature is added to the cost of the asset at the end of the capital

project unless the immovable asset is recorded by another department in which case the completed

project costs are transferred to that department.

16.2 Movable capital assets

Movable capital assets are initially recorded in the notes to the financial statements at cost. Movable

capital assets acquired through a non-exchange transaction is measured at fair value as at the date of

acquisition.

Where the cost of movable capital assets cannot be determined accurately, the movable capital assets are

measured at fair value and where fair value cannot be determined; the movable assets are measured at R1.


Movable capital assets are subsequently carried at cost and are not subject to depreciation or impairment.


project unless the movable asset is recorded by another department/entity in which case the completed




16.3 Intangible assets

Intangible assets are initially recorded in the notes to the financial statements at cost. Intangible assets

acquired through a non-exchange transaction are measured at fair value as at the date of acquisition.

Internally generated intangible assets are recorded in the notes to the financial statements when the

department commences the development phase of the project.

Where the cost of intangible assets cannot be determined accurately, the intangible capital assets are

measured at fair value and where fair value cannot be determined; the intangible assets are measured at

R1.


Intangible assets are subsequently carried at cost and are not subject to depreciation or impairment.


project unless the intangible asset is recorded by another department/entity in which case the completed


17 Provisions and Contingents

17.1 Provisions

Provisions are recorded in the notes to the financial statements when there is a present legal or constructive

obligation to forfeit economic benefits as a result of events in the past and it is probable that an outflow of

resources embodying economic benefits or service potential will be required to settle the obligation and

a reliable estimate of the obligation can be made. The provision is measured as the best estimate of the

funds required to settle the present obligation at the reporting date.

17.2 Contingent liabilities

Contingent liabilities are recorded in the notes to the financial statements when there is a possible

obligation that arises from past events, and whose existence will be confirmed only by the occurrence or

non-occurrence of one or more uncertain future events not within the control of the department or when

there is a present obligation that is not recognised because it is not probable that an outflow of resources

will be required to settle the obligation or the amount of the obligation cannot be measured reliably

17.3 Contingent assets

Contingent assets are recorded in the notes to the financial statements when a possible asset arises from

past events, and whose existence will be confirmed by the occurrence or non-occurrence of one or more

uncertain future events not within the control of the department

17.4 Commitments

Commitments are recorded at cost in the notes to the financial statements when there is a contractual

arrangement or an approval by management in a manner that raises a valid expectation that the department

will discharge its responsibilities thereby incurring future expenditure that will result in the outflow of cash



18 Unauthorised expenditure

Unauthorised expenditure is recognised in the statement of financial position until such time as the

expenditure is either:

• approved by Parliament or the Provincial Legislature with funding and the related funds are received;

or

• approved by Parliament or the Provincial Legislature without funding and is written off against the

appropriation in the statement of financial performance; or

• transferred to receivables for recovery.

Unauthorised expenditure is measured at the amount of the confirmed unauthorised expenditure.

19 Fruitless and wasteful expenditure

Fruitless and wasteful expenditure is recorded in the notes to the financial statements when confirmed. The

amount recorded is equal to the total value of the fruitless and or wasteful expenditure incurred.

Fruitless and wasteful expenditure is removed from the notes to the financial statements when it is resolved

or transferred to receivables for recovery.

Fruitless and wasteful expenditure receivables are measured at the amount that is expected to be

recoverable and are de-recognised when settled or subsequently written-off as irrecoverable.

20 Irregular expenditure

Irregular expenditure is recorded in the notes to the financial statements when confirmed. The amount

recorded is equal to the total value of the irregularity unless it is impracticable to determine, in which case

reasons therefor are provided in the note.

Irregular expenditure is removed from the note when it is either condoned by the relevant authority or

transferred to receivables for recovery.

Irregular expenditure receivables are measured at the amount that is expected to be recoverable and are

de-recognised when settled or subsequently written-off as irrecoverable.

21 Changes in accounting estimates

The effect of a change in an accounting estimate are be recognised prospectively

Nature and amount of a change in an accounting estimate that has an effect in the current period or is

expected to have an effect in future periods, except for the disclosure of the effect on future periods when

it is impracticable to estimate that effect are disclosed.

If the amount of the effect in future periods is not disclosed because estimating it is impracticable, the

department disclose that fact.



22 Prior period errors

Prior period error is corrected by retrospective restatement except to the extent that it is impracticable to

determine either the period-specific effects or the cumulative effect of the error.

When it is impracticable to determine the period-specific effects of an error on comparative information for

one or more prior periods the department restate the opening balances of recognised assets, liabilities and

net assets for the earliest period for which retrospective restatement is practicable

Similarly, opening balances reflected in the secondary financial information that are affected by a prior

period error are restated accordingly.

When it is impracticable to determine the cumulative effect, at the beginning of the current period, of an error

on all prior periods, the department restate the comparative information to correct the error prospectively

from the earliest date practicable.

A department disclose the following, distinguishing clearly between primary and secondary financial

information:

(a) the nature of the prior period error;

(b) for each prior period presented, to the extent practicable, the amount of the correction for each line

item affected;

(c) the amount of the correction at the beginning of the earliest prior period presented;

(d) the impact on unauthorised expenditure and voted funds to be surrendered (where applicable); and

(e) If retrospective restatement is impracticable for a particular prior period, the circumstances that led to

the existence of that condition and a description of how and from when the error has been corrected.

23 Non-adjusting events after the reporting date

A major event that happened after the balance sheet date was the general election that took place on the

7th May 2014. This has resulted in the change in the Member of Executive Authority for the department.

24 Agent-Principal arrangements

[Insert a description of the nature, circumstances and terms related to agency-principal arrangements and

refer to the relevant note to the financial statements]


NOTES TO THE ANNUAL FINANCIAL STATEMENTSfor the year ended 31 March 2014

2. Annual Appropriation

2.1 Annual Appropriation

Included are funds appropriated in terms of the Appropriation Act (and the Adjustments Appropriation Act) for

National Departments (Voted funds) and Provincial Departments:

2013/14 2012/13

Final

Appropriation

Actual

Funds Received

Funds

not requested/ not

received

Appropriation

received

R’000 R’000 R’000 R’000

Administration 156,592 156,592 - 143,531

Agriculture 253,440 253,440 - 245,257

Conservation - - - 62,953

Environment 144,145 144,145 - 65,918

Total 554,177 554,177 - 517,659

2.2 Conditional grants

Note

2013/14 2012/13

R’000 R’000

Total grants received 35 80,187 87,872

Provincial grants included in Total Grants received 80,187 87,872



3. Departmental revenue

Note 2013/14 2012/13

R’000 R’000

Tax revenue

Sales of goods and services other than capital assets 3.1 743 671

Interest, dividends and rent on land 3.2 - 80

Transactions in financial assets and liabilities 3.3 287 1,355

Total revenue collected - 2,106

Departmental revenue collected 1,030 2,106

3.1 Sales of goods and services other than capital assets

Note 2013/14 2012/13

3 R’000 R’000

Sales of goods and services produced by the department 743 671

Sales by market establishment

Administrative fees

Other sales 743 671

Sales of scrap, waste and other used current goods

Total 743 671



3.2 Interest, dividends and rent on land

Note 2013/14 2012/13

3 R’000 R’000

Interest - 80

Total - 80

3.3 Transactions in financial assets and liabilities

Note 2013/14 2012/13

3 R’000 R’000

Other Receipts including Recoverable Revenue 287 1,355

Total 287 1,355



4. Compensation of employees

4.1 Salaries and Wages

Note 2013/14 2012/13

R’000 R’000

Basic salary 199,098 183,831

Performance award 1,537 2,645

Service Based 15,914 14,050

Compensative/circumstantial 15,831 13,025

Periodic payments 7,133 5,308

Other non-pensionable allowances 14,139 13,212

Total 253,652 232,071

4.2 Social contributions

Note 2013/14 2012/13

R’000 R’000

Employer contributions

Pension 25,579 23,724

Medical 12,341 11,757

Bargaining council 51 44

Total 37,971 35,525

Total compensation of employees 291,623 267,596

Average number of employees 897 822



5. Goods and services

Note 2013/14 2012/13

R’000 R’000

Administrative fees 126 77

Advertising 2,568 7,382

Capital assets less than R5 000 5.1 532 552

Bursaries (employees) 947 820

Catering 3,464 2,033

Communication 7,969 5,889

Computer services 5.2 4,968 7,701

Consultants, contractors and agency/outsourced services 5.3 19,903 25,129

Entertainment 943 106

Audit cost – external 5.4 4,048 2,895

Fleet services 3,551 2,226

Inventory 5.5 71,587 8,205

Consumables 5.6 7,410 60,766

Housing - -

Operating leases - -

Property payments 5.7 35,058 34,409

Rental and hiring - -

Transport provided as part of the departmental activities - 1,400

Travel and subsistence 5.8 24,326 19,845

Venues and facilities 8,042 7,038

Training and development 1,491 3,070

Other operating expenditure 5.9 4,564 3,189

Total 201,487 192,732

The prior year figures for Learnerships (R155,000) and Gifts (R774,000) had to be revised based on the Treasury

guideline issued because of changes in SCOA.



5.1 Capital assets less than R5 000

Note 2013/14 2012/13

5 R’000 R’000

Tangible assets

Machinery and equipment 532 552

Intangible assets

Total 532 552

5.2 Computer services

Note 2013/14 2012/13

5 R’000 R’000

External computer service providers 4,968 7,701

Total 4,968 7,701

5.3 Consultants, contractors and agency/outsourced services

Note 2013/14 2012/13

5 R’000 R’000

Business and advisory services 6,882 1,349

Infrastructure and planning 7,278 12,212

Laboratory services 132 652

Legal costs 1,168 1,020

Contractors 4,049 9,754

Agency and support/outsourced services 394 142

Total 19,903 25,129



5.4 Audit cost – External

Note 2013/14 2012/13

5 R’000 R’000

Regularity audits 4,048 2,895

Total 4,048 2,895

5.5 Inventory

Note 2013/14 2012/13

5 R’000 R’000

Clothing material and accessories 1,555 -

Farming supplies 59,698 -

Food and food supplies 1,031 80

Fuel, oil and gas 5,237 3,806

Materials and supplies 2,601 1,683

Medical supplies 28 253

Medicine 1,437 2,383

Total 71,587 8,205



5.6 Consumables

Note 2013/14 2012/13

5 R’000 R’000

Consumable supplies 5,744 58,706

Household supplies 135 -

Other consumables 5,609 58,706

Stationery, printing and office supplies 1,666 2,060

Total 7,410 60,766



5.7 Property payments

Note 2013/14 2012/13

5 R’000 R’000

Municipal services 2 207

Other 35,056 34,202

Total 35,058 34,409

5.8 Travel and subsistence

Note 2013/14 2012/13

5 R’000 R’000

Local 22,697 18,253

Foreign 1,629 1,592

Total 24,326 19,845



5.9 Other operating expenditure

Note 2013/14 2012/13

5 R’000 R’000

Professional bodies, membership and subscription fees 936 308

Resettlement costs 1,028 952

Other 2,600 1,929

Total 4,564 3,189



6. Interest and rent on land

Note 2013/14 2012/13

R’000 R’000

Interest paid 7 14

Total 7 14

7. Payments for financial assets

Note 2013/14 2012/13

R’000 R’000

Debts written off 7.1 25 756

Total 25 756



7.1 Debts written off

Note 2013/14 2012/13

7 R’000 R’000

Nature of debts written off

Ex-Employee and Supplier debt written off 25 756

Total 25 756

Total debt written off 25 756



8. Transfers and subsidies

2013/14 2012/13

R’000 R’000

Note

Provinces and municipalities Annex 1A, 7,325 6,185

Departmental agencies and accounts Annex 1B 6,056 4,343

Higher education institutions Annex 1C 3,156 3,798

Public corporations and private enterprises Annex 1D 21,645 16,422

Households Annex 1E 610 59

Total 38,792 30,807

Unspent funds transferred to the above beneficiaries

9. Expenditure for capital assets

Note 2013/14 2012/13

R’000 R’000

Tangible assets 11,760 23,390

Buildings and other fixed structures 32 5,837 8,600

Machinery and equipment 32 5,923 14,790

Intangible assets - 593

Software 33 - 593

Total 11,760 23,983

9.1 Analysis of funds utilised to acquire capital assets – 2013/14

Voted funds Aid assistance Total

R’000 R’000 R’000

Tangible assets 11,760 - 11,760

Buildings and other fixed structures 5,837 - 5,837

Machinery and equipment 5,923 - 5,923

Total 11,760 - 11,760



9.2 Analysis of funds utilised to acquire capital assets – 2012/13

Voted funds Aid assistance Total

R’000 R’000 R’000

Tangible assets 23,390 - 23,390

Buildings and other fixed structures 8,600 - 8,600

Machinery and equipment 14,790 - 14,790

Intangible assets 593 - 593

Software 593 - 593

Total 23,983 - 23,983

10. Unauthorised expenditure

10.1 Reconciliation of unauthorised expenditure

Note 2013/14 2012/13

R’000 R’000

Opening balance 5,441 5,441

As restated 5,441 5,441

Less: Amounts approved by Parliament/Legislature

without funding and written off in the Statement of Financial

Performance (5,441)

-

Capital

Current (5,441) -

Transfers and subsidies

Less: Amounts transferred to receivables for recovery 14

Unauthorised expenditure awaiting authorisation /

written off

- 5,441



10.2 Analysis of unauthorised expenditure awaiting authorisation per economic classification

2013/14 2012/13

R’000 R’000

Current - 5,441

Total - 5,441

10.3 Analysis of unauthorised expenditure awaiting authorisation per

type

2013/14 2012/13

R’000 R’000

Unauthorised expenditure relating to overspending of the vote

or a main division within a vote

- 5,441

Total - 5,441

11. Cash and cash equivalents

Note 2013/14 2012/13

R’000 R’000

Consolidated Paymaster General Account 2,358 -

Cash on hand 37 32

Total 2,395 32



12. Prepayments and advances

Note 2013/14 2012/13

12 R’000 R’000

Travel and subsistence 40 30

Total 40 30

13. Receivables

2013/2014 2012/13

R’000 R’000 R’000 R’000 R’000

Note

Less than

one year

One to

three

years

Older

than

three

years

Total Total

Claims recoverable 13.1

Annex 3 2,925

- -

2,925 2,788

Recoverable expenditure 13.2 111 - - 111 41

Other debtors 13.3 130 - - 130 47

Total 3,166 - - 3,166 2,876

13.1 Claims recoverable

Note 2013/14 2012/13

14 R’000 R’000

Provincial departments 1,336 1,144

Public entities 1,589 1,644

Total 2,925 2,788



13.2 Recoverable expenditure (disallowance accounts)

Note 2013/14 2012/13

14 R’000 R’000

Sal: Recoverable

Sal: Reversal Control: CA

Sal: Disallowance Account: CA

Sal: Deduction Disall Acc: CA

Deb Receivable Interest: CA

Sal: Tax Debt: CA

UNP/RC BAS EBT Cntr Acc: Dom

84

15

7

-

-

3

2

20

10

7

1

1

2

-

Total 111 41

13.3 Other debtors

Note 2013/14 2012/13

14 R’000 R’000

Employee Debt Account 130 47

Total 130 47



14. Voted funds to be surrendered to the Revenue Fund

Note 2013/14 2012/13

R’000 R’000


As restated 1,721 39,656

Transfer from statement of financial performance (as

restated)

5,042 1,771

Paid during the year (1,772) (39,706)

Closing balance 4,991 1,721

15. Departmental revenue and NRF Receipts to be surrendered to the Revenue Fund

Note 2013/14 2012/13

R’000 R’000

Opening balance 555 392

As restated 555 392

Transfer from Statement of Financial Performance (as

restated)

1,030 2,106

Paid during the year (1,432) (1,943)

Closing balance 153 555

The Department recovered management fees and general expenses amounting to R7 030 000 from the Cost

Recovery Trading Entity, for expenditure that was incurred by the Department during the year of the entity. The amount

received was offset against total expenditure incurred. This amount did not form part of the department revenue to

be surrendered.



16. Bank Overdraft

Note 2013/14 2012/13

R’000 R’000

Consolidated Paymaster General Account - 6,035

Total - 6,035

17. Payables – current

Note 2013/14 2012/13

R’000 R’000

Clearing accounts 17.1 458 68

Total 458 68

17.1 Clearing accounts

Note 2013/14 2012/13

18 R’000 R’000

Description

Cheques Payables: Dom

Sal:Persal EBT Control Acc:Dom

Outstanding Payments: Dom

Disall Damages& Losses: CA

Debt Receivable Income: CA

Debt Receivable Interest: CA

Sal: Income Tax: CA

Sal: Pension Fund: CL

Sal: Bargaining Councils: CL/SAL: Motor Finance Deduction

1

10

2

-

-

1

379

59

6

4

22

-

11

23

-

8

-

-

Total 458 68



18. Net cash flow available from operating activities

Note 2013/14 2012/13

R’000 R’000

Net surplus/(deficit) as per Statement of Financial

Performance

6,072 3,877

Add back non cash/cash movements not deemed

operating activities

14,086 (15,212)

(Increase)/decrease in receivables – current (290) 3,082

(Increase)/decrease in prepayments and advances (10) (30)

(Increase)/decrease in other current assets 5,441

Increase/(decrease) in payables – current 389 (598)

Expenditure on capital assets 11,760 23,983

Surrenders to Revenue Fund (3,204) (41,649)

Net cash flow generated by operating activities 20,158 (11,335)

19. Reconciliation of cash and cash equivalents for cash flow purposes

Note 2013/14 2012/13

R’000 R’000

Consolidated Paymaster General account 2,358 (6,035)

Cash on hand 37 32

Total 2,395 (6,003)



20. Contingent liabilities and contingent assets

20.1 Contingent liabilities

Note 2013/14 2012/13

R’000 R’000

Liable to Nature

Claims against the department Annex 2A 26,992 67

Intergovernmental payables (unconfirmed balances) Annex 4 10 -

Total 27,002 67

21. Commitments

Note 2013/14 2012/13

R’000 R’000

Current expenditure

Approved and contracted 10,887 53,161

Approved but not yet contracted 25,656 6,622

36,543 59,783

Capital expenditure

Approved and contracted - 1,141

Approved but not yet contracted 91 130

91 1,271

Total Commitments 36,634 61,054

Indicate whether a commitment is for longer than a year.

Current: Longer than a year

Current: Shorter than a year

Capital: Longer than a year

Current: Shorter than a year

903

35,640

-

91

TOTAL 36,634

The Department has commitments amounting to R4,887,824.49 which have been approved and contracted by the

Department of Infrastructure Development on behalf of the Department relating to capital works projects.



22. Accruals

2013/14 2012/13

R’000 R’000

Listed by economic classification

30 Days 30+

Days

Total Total

Goods and services 8,612 208 8,820 23,947

Other 252 - 252 -

Total 8,864 208 9,072 23,947

Note 2013/14 2012/13

R’000 R’000

Listed by programme level

Administration 6,051 7,737

Agriculture

Conservation

Environment

1,707

-

1,314

12,949

2,166

1,095

Total 9,072 23,947

Note 2013/14 2012/13

R’000 R’000

Confirmed balances with other departments Annex 4 - 119

Total - 119

23. Employee benefits

Note 2013/14 2012/13

R’000 R’000

Leave entitlement 12,763 10,653

Service bonus (Thirteenth cheque) 8,163 7,775

Performance awards 1,526 2,610

Capped leave commitments 8,929 8,547

Total 31,381 29,585



24. Lease commitments

24.1 Operating leases expenditure

2013/14

Specialised

military

equipment Land

Buildings and

other fixed

structures

Machinery

and

equipment Total

Not later than 1 year - - 3,870 2,759 6,629

Later than 1 year and not

later than 5 years

- - 3,941 - 3,941

Total lease commitments 7,811 2,759 10,570

2012/13

Specialised

military

equipment Land

Buildings and

other fixed

structures

Machinery

and

equipment Total

Not later than 1 year - - 6,395 3,861 10,256

Later than 1 year and not

later than 5 years

- - 6,278 2,574 8,852

Total lease commitments - - 12,673 6,435 19,108

The amount disclosed as Operating Leases included charges for Photocopying Machines and Buildings


DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014

24.2 Finance leases expenditure**

2013/14

Specialised

military

equipment Land

Buildings and

other fixed

structures

Machinery

and

equipment

Total

Not later than 1 year - - - 234 234

Later than 1 year and not later

than 5 years

- - - -

268

-

268

Total lease commitments - - - 502 502

2012/13

Specialised

military

equipment Land

Buildings and

other fixed

structures

Machinery

and

equipment Total

Not later than 1 year 1,501 1,501

Later than 1 year and not later

than 5 years

- - -

516 516

Total lease commitments - - - 2,017 2,017

**This note excludes leases relating to public private partnership as they are separately disclosed to note no.35.

The amount disclosed as Finance Leases includes charges for the use of Motor Vehicles from G-Fleet



25. Irregular expenditure25.1 Reconciliation of irregular expenditure

Note 2013/14 2012/13

R’000 R’000


Add: Irregular expenditure – relating to current

year

5,636 15,203

Less: Prior year amounts condoned - (31,041)

Irregular expenditure awaiting condonation 21,096 15,460

Analysis of awaiting condonation per age

classification

Current year 5,636 15,203

Prior years 15,460 257

Total 21,096 15,460

25.2 Details of irregular expenditure – current year

Incident Disciplinary steps taken/

criminal proceedings

2013/14

R’000

Wrong Calculation of functionality

Points

Under Investigation 3,188

No original Tax Clearance

Certificates

Under Investigation 632

No original B-BBEE certificates Under Investigation 951

No three quotations Under Investigation 828

SBD 4 Under Investigation 37

Total 5,636



25.3 Details of irregular expenditures under investigation

Incident 2012/13

R’000

Tender awarded was based on the wrong site visit score

Non-submission of 3 quotes

No Tax Clearance Certificates

No three quotations

5,252

325

8,881

745

Total 15,203

26. Fruitless and wasteful expenditure26.1 Reconciliation of fruitless and wasteful expenditure

Note 2013/14 2012/13

R’000 R’000

Opening balance 14 167

Fruitless and wasteful expenditure – relating to current year 13 14

Less: Amounts resolved (14) (167)

Fruitless and wasteful expenditure awaiting resolution 13 14

26.2 Analysis of awaiting resolution per economic classification

2013/14 2012/13

R’000 R’000

Current 13 14

Total 13 14



26.3 Analysis of Current year’s fruitless and wasteful expenditure

Incident Disciplinary steps taken/

criminal proceedings

2013/14

R’000

SCOA Codes changed and

payments were delayed in April

2013. The Water and Electricity

accounts are still submitted late

from Eskom/Magalies Retail/

Telkom even though requested that

it be forwarded electronically. By

the time invoices are submitted to

the Department for payment it is

already late as the Department in

most instances only have a week to

finalize payments and the normal

payment process is 10 working

days

General Public Bargaining Council

Declared Irrecoverable

Under Investigation

7

6

Total 13



27. Related party transactions

Revenue received Note 2013/14 2012/13

R’000 R’000

Sales of goods and services other than capital assets 8,287 3,419

Fines, penalties and forfeits 6,015 3,095

Total 14 ,302 6,514

Note 2013/14 2012/13

R’000 R’000

Year end balances arising from revenue/payments

Receivables from related parties - 6,916

Payables to related parties 832 832

Total 832 7,748

Cost Recovery Trading Entity is one of the Department’s related parties. In accordance with the PFMA a Trading

Entity means “Entity operating within the administration of a Department for the provision of sale of goods and

services”. The Entity operates within the full administration of GDARD. All assets that are used in the operation of

the Entity are owned by GDARD. The Entity administers revenue collected by the Nature Reserves, fines issued for

non-compliance of Environmental Laws and money collected for issuing Cities Permits.

The Department is a related party to all Departments within Gauteng Provincial Government as well as their Entities.

During the 2013/2014 Financial Year the Department had transaction with the following Departments/Entities:

Gauteng Department of Infrastructure Development – Building Leases (R 31,308,856-33);

Gauteng Department of Infrastructure Development – Cleaning Services (R 1,417,000-00) Unconfirmed;

Gauteng Department of Social Development – Claims Receivable (R 3,000-00);

Gauteng GCRA – Salary related Claims Receivable (R 158,000-00);

Government Printing Works – Claims Payable (R 4,000-00);

National Department of Labour – Claims Payable (R 10,000-00) Unconfirmed.

G-Fleet - Government vehicles (R3,433,004-13).

28. Key management personnel

No. of Individuals 2013/14 2012/13

R’000 R’000

Political office bearers (provide detail below)

Officials: 1 1,735 1,646

Level 15 to 16 3 2,943 3,861

Level 14 (incl. CFO if at a lower level) 9 9,036 8,438

Total 13,714 13,945



29. Movable Tangible Capital Assets

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening

balance

Curr Year

Adjust-ments

to prior year

balances

Additions Disposals Closing

Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND

EQUIPMENT

110,923 7,338 15,686 28,522 105,425

Transport assets 51,200 1,358 9,999 9,225 53,332

Computer equipment 22,806 2,892 4,307 12,292 17,713

Furniture and office

equipment

13,539 667 408 1,821 12,793

Other machinery and

equipment

23,378 2,421 972 5,184 21,587

BIOLOGICAL ASSETS 25,345 19,999 9,625 618 54,351

Biological assets 25,345 19,999 9,625 618 54,351

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

136,268 27,337 25,311 29,140 159,776

The closing balance include assets amount to R5.6million that could not be verified as at reporting date. The

separate asset register for unverified is kept pending up until the investigation is completed.



29.1 Additions

ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Cash* Non-cash** (Capital Work

in Progress

current

costs and

finance lease

payments)

Received

current, not

paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT

5,922 9,794 (30) 15,686

Transport assets 956 9,043 - - 9,999

Computer equipment 3,599 708 - - 4,307

Furniture and office equipment 412 43 - (47) 408

Other machinery and

equipment

955 - - 17 972

BIOLOGICAL ASSETS 9,625 9,625

Biological assets - 9,625 - - 9,625

TOTAL ADDITIONS TO MOVABLE TANGIBLE CAPITAL ASSETS

5,922 19,419 - (30) 25,311



29.2 Disposals

DISPOSALS OF MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Sold for cash Transfer out

or destroyed

or scrapped

Total

disposals

Cash Received

Actual

R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT - 28,522 28,522 -

Transport assets - 9,225 9,225 -

Computer equipment - 12,292 12,292 -

Furniture and office equipment - 1,821 1,821 -

Other machinery and equipment - 5,184 5,184 -

BIOLOGICAL ASSETS 570 48 618 2,028

Biological assets 570 48 618 2,028

TOTAL DISPOSAL OF MOVABLE TANGIBLE CAPITAL ASSETS 570 28,570 29,140 2,028



29.3 Movement for 2012/13

MOVEMENT IN MOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening

balance

Curr Year

Adjust-ments

to prior year

balances


Balance

R’000 R’000 R’000 R’000 R’000

MACHINERY AND EQUIPMENT 74,845 (17,223) 53,510 (209) 110,923

Transport assets 19,707 (2,037) 33,660 (130) 51,200

Computer equipment 27,386 (7,329) 2,790 (41) 22,806

Furniture and office equipment 15,953 (2,609) 200 (5) 13,539

Other machinery and equipment 11,799 (5,248) 16,860 (33) 23,378

BIOLOGICAL ASSETS 15,936 - 9,409 - 25,345

Biological assets 15,936 - 9,409 - 25,345

TOTAL MOVABLE TANGIBLE CAPITAL ASSETS

90,781 (17,223) 62,919 (209) 136,268



29.4 Minor assets

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2014

Specialised

military

assets

Intangible

assets

Heritage

assets

Machinery

and

equipment

Biological

assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance 4 40 20,621 15,233 35,898

Curr Year Adjustments to

Prior Year balances

- - 1,467 (2,092) (625)

Additions - - 3,355 3,355

Disposals (4) - (3,125) (1,871) (5,000)

TOTAL MINOR ASSETS - 40 22,318 11,270 33,614

The closing balance include assets amount to R1.8 million that could not be verified as at reporting date.The

separate asset register for unverified is kept pending up until the investigation is completed.

Specialised

military

assets

Intangible

assets

Heritage

assets

Machinery

and

equipment

Biological

assets

Total

Number of R1 minor

assets

- - - 8 - 8

Number of minor assets

at cost

- - 376 16,246 4,048 20,670

TOTAL NUMBER OF MINOR ASSETS

- - 376 16,254 4,048 20,678

MOVEMENT IN MINOR ASSETS PER THE ASSET REGISTER FOR THE YEAR ENDED AS AT 31 MARCH 2013

Specialised

military asset

Intangible

assets

Heritage

assets

Machinery

and

equipment

Biological

assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Opening balance - 45 40 24,630 12,374 37,089

Curr Year (41) - (4,455) - (4,496)Adjustments to Prior

Year balances

Additions - - - 556 2,859 3,415

Disposals - - - (110) - (110)

TOTAL MINOR

ASSETS

- 4 40 20,621 15,233 35,898



29.5 Movable assets written off

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2014

Specialised

military

assets

Intangible

assets

Heritage

assets

Machinery

and

equipment

Biological

assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Assets written off

- - - - 29 29

TOTAL MOVABLE ASSETS

WRITTEN OFF - - - - 29 29

MOVABLE ASSETS WRITTEN OFF FOR THE YEAR ENDED AS AT 31 MARCH 2013

Specialised

military

assets

Intangible

assets

Heritage

assets

Machinery

and

equipment

Biological

assets

Total

R’000 R’000 R’000 R’000 R’000 R’000

Assets written off

- - - 4,918 4,918

TOTAL MOVABLE ASSETS

WRITTEN OFF - - - 4,918 4,918



30. Intangible Capital Assets

MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2014

Opening

balance

Current Year

Adjust-ments

to prior year

balances


Balance

R’000 R’000 R’000 R’000 R’000

SOFTWARE 1,030 1,030

TOTAL INTANGIBLE CAPITAL

ASSETS 1,030 1,030


MOVEMENT IN INTANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31 MARCH 2013

Opening

balance

Current Year

Adjust-ments

to prior year

balances


Balance

R’000 R’000 R’000 R’000 R’000

SOFTWARE 1,161 (724) 593 - 1,030

TOTAL INTANGIBLE CAPITAL

ASSETS 1,161 (724) 593 - 1,030



31. Immovable Tangible Capital Assets

MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31

MARCH 2014

Opening

balance

Curr Year

Adjust-

ments to

prior year

balances


Balance

R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED

STRUCTURES 113,695 - - 113,695 -

Non-residential

buildings

30,224 - - 30,224 -

Other fixed

structures

83,471 - - 83,471 -

LAND AND SUBSOIL ASSETS 264,965 - - 264,965 -

Land 264,965 - - 264,965 -

TOTAL IMMOVABLE TANGIBLE

CAPITAL ASSETS

378,660 - - 378,660 -



31.1 Additions

ADDITIONS TO IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31

MARCH 2014

Cash Non-cash (Capital Work

in Progress

current

costs and

finance lease

payments)

Received

current, not

paid

(Paid current

year, received

prior year)

Total

R’000 R’000 R’000 R’000 R’000

BUILDING AND OTHER FIXED

STRUCTURES

5,837 - (5,837) - -

Non-residential buildings 3,361 - (3,361) - -

Other fixed structures 2,476 - (2,476) - -

TOTAL ADDITIONS TO IMMOVABLE

TANGIBLE CAPITAL ASSETS 5,837 - (5,837) - -

31.2 Disposals

DISPOSALS OF IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31

MARCH 2014

Sold for

cash

Transfer out

or destroyed

or scrapped

Total

disposals

Cash

Received

Actual

R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES - 113,695 113,695 -

Non-residential buildings - 30,224 30,224 -

Other fixed structures 83,471 83,471 -

LAND AND SUBSOIL ASSETS - 264,965 264,965 -

Land - 264,965 264,965 -

TOTAL DISPOSALS OF IMMOVABLE TANGIBLE

CAPITAL ASSETS - 378,660 378,660 -




MOVEMENT IN IMMOVABLE TANGIBLE CAPITAL ASSETS PER ASSET REGISTER FOR THE YEAR ENDED 31

MARCH 2013

Opening

balance

Curr Year

Adjust-ments

to prior year

balances


Balance

R’000 R’000 R’000 R’000 R’000

BUILDINGS AND OTHER FIXED

STRUCTURES

113,179 - 516 - 113,695

Non-residential buildings 113,179 (82,955) - - 30,224

Other fixed structures - 82,955 516 - 83,471

LAND AND SUBSOIL ASSETS 264,965 - - - 264,965

Land 264,965 - - - 264,965

TOTAL IMMOVABLE TANGIBLE

CAPITAL ASSETS

378,144 - 516 - 378,660

31.4 S42 Immovable assets

Assets subjected to transfer in terms of S42 of the PFMA – 2013/14

Number of

assets

Value of

assets

R’000 R’000

BUILDINGS AND OTHER FIXED STRUCTURES

22 113,695

Dwellings - -

Non-residential buildings 13 30,224

Other fixed structures 9 83,471

LAND AND SUBSOIL ASSETS 5 264,965

Land 5 264,965

TOTAL 27 378,660

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DISCLOSURE NOTES TO ANNUAL FINANCIAL STATEMENTS for the year ended 31 March 2014GAUTENG DEPARTMENT OF AGRICULRUE AND

RURAL DEVELOPMENT

COST RECOVERY TRADING ENTITY


GAUTENG DEPARTMENT OF AGRICULRUE AND RURAL DEVELOPMENTCOST RECOVERY TRADING ENTITYfor the year ended 31 March 2014

REPORT OF THE AUDITOR-GENERAL TO THE GAUTENG PROVINCIAL LEGISLATURE ON COST RECOVERY TRADING ENTITY

Report on the financial statements

Introduction

1. I have audited the financial statements of the Cost Recovery Trading Entity set out on pages 240 to 256, which comprise the appropriation statement, the statement of financial performance, statement of changes in net assets and the cash flow statement for the year then ended, and the notes, comprising a summary of significant accounting policies and other explanatory information.

Accounting Officer’s responsibility for the financial statements

2. The accounting officer is responsible for the preparation of these financial statements in accordance with Generally Recognised Accounting Practice and the requirements of the Public Finance Management Act of South Africa, 1999 (Act No 1 of 1999) (PFMA), and for such internal control as the accounting officer determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor-General’s responsibility

3. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion.

Opinion

6. In my opinion, the financial statements present fairly, in all material respects, the financial position of the Cost Recovery Trading Entity as at 31 March 2014, and its financial performance and cash flows for the year then ended in accordance with the Generally Recognised Accounting Practice and the requirements of the PFMA.

Additional matter

7. I draw attention to the matter below. My opinion is not modified in respect of this matter.

Unaudited supplementary schedules

8. The supplementary information set out on pages 223 to 234 does not form part of the financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon.



Report on other legal and regulatory requirement

9. In accordance with the PAA and the General Notice issued in terms thereof, I report the following findings relevant to performance against predetermined objectives, compliance with laws and regulations and internal control, but not for the purpose of expressing an opinion.

Predetermined objectives

10. I did not audit performance against predetermined objectives, as the entity’s performance objectives are included as part of the Gauteng Department of Agriculture and Rural Development’s annual performance report.

Compliance with laws and regulations

11. I performed procedures to obtain evidence that the entity has complied with applicable laws and regulations regarding financial matters, financial management and other related matters. My findings on material non-compliance with specific matters in key applicable laws and regulations as set out in the General Notice issued in terms of the PAA are as follows:

Annual financial statements

12. The financial statements submitted for auditing were not prepared in accordance with the prescribed financial reporting framework and supported by full and proper records as required by section 40(1)(a) and (b) of the PFMA. Material misstatements of revenue expenditure, assets, liabilities and disclosure items identified by the auditors were subsequently corrected, resulting in the financial statements receiving an unqualified audit opinion.

Revenue management

13. Appropriation processes were not developed and implemented to provide for the safeguarding of information about revenue, as required by Treasury Regulation 7.2.1. (TR)

Internal control

14. I considered internal control relevant to my audit of the financial statements, annual performance report and compliance with legislation. The matters reported below are limited to the significant internal control deficiencies that resulted in the findings on compliance with legislation included in this report.



Leadership

15. Leadership did not exercise adequately oversight responsibility of financial reporting, compliance and related internal controls.

Financial and performance management

16. Management did not adequately review the financial statements and information supporting disclosure notes for completeness and accuracy prior to their submission for audit.

17. Management did not adequately review and monitor compliance with PFMA.

Johannesburg

31 July 2013



Contents .................................................................................. Page No.

Statement of Financial Position ..................................................................................................................................240

Statement of Financial Perfomance ..........................................................................................................................241

Statement of Changes in Net Assets .......................................................................................................................242

Statement of Cash Flows ................................................................................................................................................ 243

Accounting policies ............................................................................................................................................................244

Notes to the Annual Financial Statements ..........................................................................................................253



STATEMENT OF FINANCIAL POSITION

as at 31 March 2014

Figures in rand Notes 2014 2013

R’000 R’000

ASSETS

Current Assets

Receivables from exchange

transactions

5 3,232 12,985

Cash and cash equivalents 6 14,583 8,962

Total Assets 17,815 21,947

LIABILITIES

Current Liabilities

Payables from exchange

transactions

7 1,633 17,738

Total Liabilities 1,633 17,738

NET ASSETS

Capital and Reserves

Accumulated surplus/(deficit) 8 16,182 4,209

Total Net Assets 16,182 4,209

Total Equity and Liabilities 17,815 21,947



STATEMENT OF FINANCIAL PERFOMANCE

For the year ending 31 March 2014


R’000 R’000

Revenue from non-exchange

transactions

2 21,445 3,095

Revenue from exchange

transactions

3 8,287 3,420

Total Revenue 29,732 6,515

Expenditure 4

Administrative expenses (14) (20)

Management Fees- Gauteng

Department of Agriculture and

Rural Development

Bad Debts

(4,218)

(10,714)

(2,203)

-

General Expensed

Total Expenditure

(2,812)

(17,759)

-

(2,223)

NET SURPLUS/ DEFICIT FOR

THE YEAR

11,973 4,291



STATEMENT OF CHANGES IN NET ASSETS

For the year ended 31 March 2014

Figures in rand Accumulated

Surpluses/(deficits)

Total Net Assets

R’000 R’000

Accumulated surplus at 01 April 2012 Restated

(82) (82)

Surplus for the period

Balance at 31 March 2013

4,291

4,209

4,291

4,209

Surplus /(Deficit) for the year 11,973 11,973

Accumulated surplus at 31 March 2014 16,182 16,182



STATEMENT OF CASH FLOWS

For the year ended 31 March 2014


R’000 R’000

CASH FLOWS FROM OPERATING ACTIVITIES

Cash Receipts from customers 23,380 6,537

‘

Cash Paid to suppliers and employees (17,759) (3,199)

Net cash inflows/(outflows) from operating activities 9 5,621 3,338

Net Increase/(decrease) in cash and cash equivalents 5,621 3,338

Cash and cash equivalents at the beginning of the year 8,962 5,624

Cash and cash equivalent at end of the year 14,583 8,962



Accounting policies

General Information

Cost Recovery is a trading entity for Gauteng Department of Agriculture and Rural Development and constitutes

0.33% of the operations of the Department. The cost of allocating operational expenses incurred on behalf of Gauteng

Department of Agriculture and Rural Development Cost Recovery Trading Entity (Cost Recovery) would exceed the

benefit of so doing, furthermore the quantity of time spent on the operations that generate income for Cost Recovery

are considered immaterial and therefore do not have a significant impact on Gauteng Department of Agriculture and

Rural Development.

1. Basis of preparation and presentation of the annual financial statements

The annual financial statements were prepared in accordance with Standard of Generally Recognised Accounting

Practice (GRAP) as issued by the Accounting Standards Board in accordance with Section 91(1) of the Public Finance

Management Act, (Act No1 of 1999). This is the first year of Generally Recognised Accounting Practice (GRAP) adoption.

These annual financial statements were previously prepared in accordance with South African Statements of Generally

Accepted Accounting Practice.

Assets, liabilities, revenue and expenses were not offset, except where offsetting is either required or permitted by

Standard of GRAP. In the absence of an issued and effective Standard of GRAP, accounting policies for material

transactions, events or conditions were developed in accordance with paragraphs 8, 10 and 11 of GRAP 3 as read with

Directive 5.

These annual financial statements were prepared on the accrual basis of accounting and incorporate the historical cost

conventions as the basis of measurement, except where specified otherwise. These annual financial statements have

been prepared based on the expectation that the entity will continue to operate as a going concern basis for at least

the next 12 months.

A summary of the significant accounting policies, which have been consistently applied, are disclosed below.

These accounting policies are consistent with the previous period unless explicitly stated otherwise.

These annual financial statements are presented in South African Rand, which is the functional currency of the entity.

1.1. Prior year comparatives

When the presentation or classification of items in the annual financial statements is amended, prior period comparative

amounts are also reclassified and restated, unless such comparative reclassification and / or restatement is not required

by Standard of GRAP. The nature and reason for such reclassification and restatements are also disclosed.

Where material accounting errors, which relate to prior periods have been identified in the current year, the correction is

made retrospectively as far as is practicable and the prior year comparatives are restated accordingly. Where there has

been a change in accounting policy in the current year, the adjustment is made retrospectively as far as is practicable

and the prior year comparatives are restated accordingly.

The presentation and classification of items in the current year is consistent with prior periods.



Accounting policies

1.2. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or a residual

interest of another entity.

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable willing

parties in an arm’s length transaction.

The amortised cost of a financial asset or financial liability is the amount at which the financial asset or financial liability is

measured at initial recognition minus principal repayments, plus or minus the cumulative amortisation using the effective

interest method of any difference between that initial amount and the maturity amount, and minus any reduction (directly

or through the use of an allowance account) for impairment or uncollectability.

A financial asset is:

• cash;

• a residual interest of another entity; or

• a contractual right to:

- receive cash or another financial asset from another entity; or

- exchange financial assets or financial liabilities with another entity under conditions that are potentially

favourable to the entity.

A financial liability is any liability that is a contractual obligation to:

• deliver cash or another financial asset to another entity; or

• exchange financial assets or financial liabilities under conditions that are potentially unfavourable to the entity.

Classification

The entity has the following types of financial assets (classes and category) as reflected on the face of the statement of

financial position or in the notes thereto:`

Class Category

Trade and other receivables Financial asset measured at amortised cost

Other receivables from non-exchange transactions Financial asset measured at amortised cost

Cash and cash equivalent Financial asset measured at fair value

The entity has the following types of financial liabilities (classes and category) as reflected on the face of the statement

of financial position or in the notes thereto:

Class Category

Other financial liabilities Financial liability measured at amortised cost

Trade and other payables Financial liability measured at amortised cost

Consumer deposits Financial liability measured at amortised cost



Accounting policies

Initial recognition

The entity recognises a financial asset or a financial liability in its statement of financial position when the entity becomes

a party to the contractual provisions of the instrument.

The entity recognises financial assets using trade date accounting.

Initial measurement of financial assets and financial liabilities

The entity measures a financial asset and financial liability initially at its fair value plus transaction costs that are directly

attributable to the acquisition or issue of the financial asset or financial liability.

The entity measures a financial asset and financial liability initially at its fair value [if subsequently measured at fair value].

Subsequent measurement of financial assets and financial liabilities

The entity measures all financial assets and financial liabilities after initial recognition using the following categories:

• Financial instruments at fair value.

• Financial instruments at amortised cost.

• Financial instruments at cost.

All financial assets measured at amortised cost, or cost, are subject to an impairment review.

Fair value measurement considerations

The best evidence of fair value is quoted prices in an active market. If the market for a financial instrument is not active,

the entity establishes fair value by using a valuation technique. The objective of using a valuation technique is to establish

what the transaction price would have been on the measurement date in an arm’s length exchange motivated by

normal operating considerations. Valuation techniques include using recent arm’s length market transactions between

knowledgeable, willing parties, if available, reference to the current fair value of another instrument that is substantially

the same, discounted cash flow analysis and option pricing models. If there is a valuation technique commonly used

by market participants to price the instrument and that technique has been demonstrated to provide reliable estimates

of prices obtained in actual market transactions, the entity uses that technique. The chosen valuation technique makes

maximum use of market inputs and relies as little as possible on entity-specific inputs. It incorporates all factors that

market participants would consider in setting a price and is consistent with accepted economic methodologies for

pricing financial instruments. Periodically, an municipality calibrates the valuation technique and tests it for validity using

prices from any observable current market transactions in the same instrument (i.e. without modification or repackaging)

or based on any available observable market data.

The fair value of a financial liability with a demand feature (e.g. a demand deposit) is not less than the amount payable

on demand, discounted from the first date that the amount could be required to be paid.



Accounting policies

Gains and losses

A gain or loss arising from a change in the fair value of a financial asset or financial liability measured at fair value is

recognised in surplus or deficit.

For financial assets and financial liabilities measured at amortised cost or cost, a gain or loss is recognised in surplus

or deficit when the financial asset or financial liability is derecognised or impaired, or through the amortisation process.

Impairment and uncollectibility of financial assets

The entity assess at the end of each reporting period whether there is any objective evidence that a financial asset or

group of financial assets is impaired.

Financial assets measured at amortised cost:

If there is objective evidence that an impairment loss on financial assets measured at amortised cost has been incurred,

the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of

estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial

asset’s original effective interest rate. The carrying amount of the asset is reduced directly OR through the use of an

allowance account. The amount of the loss is recognised in surplus or deficit.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to

an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed directly

OR by adjusting an allowance account. The reversal does not result in a carrying amount of the financial asset that

exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment

is reversed. The amount of the reversal is recognised in surplus or deficit.

Financial assets measured at cost:

If there is objective evidence that an impairment loss has been incurred on an investment in a residual interest that is

not measured at fair value because its fair value cannot be measured reliably, the amount of the impairment loss is

measured as the difference between the carrying amount of the financial asset and the present value of estimated future

cash flows discounted at the current market rate of return for a similar financial asset. Such impairment losses are not

reversed.



Accounting policies

Derecognition

Financial assets

The entity derecognises a financial asset only when:

• the contractual rights to the cash flows from the financial asset expire, are settled or waived;

• the entity transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or

• the entity, despite having retained some significant risks and rewards of ownership of the financial asset, has

• transferred control of the asset to another party and the other party has the practical ability to sell the asset in its

entirety to an unrelated third party, and is able to exercise that ability unilaterally and without needing to impose

additional restrictions on the transfer. In this case, the entity:

- derecognise the asset; and

- recognise separately any rights and obligations created or retained in the transfer.

The carrying amounts of the transferred asset are allocated between the rights or obligations retained and those

transferred on the basis of their relative fair values at the transfer date. Newly created rights and obligations are measured

at their fair values at that date. Any difference between the consideration received and the amounts recognised and

derecognised is recognised in surplus or deficit in the period of the transfer.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the sum of the

consideration received is recognised in surplus or deficit.

Financial liabilities

The entity removes a financial liability (or a part of a financial liability) from its statement of financial position when it is

extinguished — i.e. when the obligation specified in the contract is discharged, cancelled, expires or waived.

The difference between the carrying amount of a financial liability (or part of a financial liability) extinguished or

transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed,

is recognised in surplus or deficit. Any liabilities that are waived, forgiven or assumed by another entity by way of a non-

exchange transaction are accounted for in accordance with the Standard of GRAP on Revenue from Non-exchange

Transactions (Taxes and Transfers).

Presentation

A financial asset and a financial liability are only offset and the net amount presented in the statement of financial position

when the entity currently has a legally enforceable right to set off the recognised amounts and intends either to settle on

a net basis, or to realise the asset and settle the liability simultaneously.

In accounting for a transfer of a financial asset that does not qualify for derecognition, the entity does not offset the

transferred asset and the associated liability.



Accounting policies

1.3. Compensation of employees

The accounting policy in terms of the compensation of employees is in line with the policy of the Gauteng Department

of Agriculture and Rural Development which is guided by the DPSA.

The Gauteng Department of Agriculture and Rural development charge Cost Recovery Trading Entity a management

fee because Cost Recovery Trading Entity does not appoint employees, all short term employee benefits and post-

retirement benefits, termination benefits as well as long term employee benefits are covered by the Gauteng Department

of Agriculture and Rural Development.

1.4. Revenue from exchange transactions

Revenue is the gross inflow of economic benefits or service potential during the reporting period when those inflows

result in an increase in net assets, other than increases relating to contributions from owners.

An exchange transaction is one in which the entity receives assets or services, or has liabilities extinguished, and directly

gives approximately equal value (primarily in the form of goods, services or use of assets) to the other party in exchange.

Measurement

Revenue is measured at the fair value of the consideration received or receivable, net of trade discounts and volume

rebates.

Sale of goods

Revenue from the sale of goods is recognised when all the following conditions have been satisfied:

• the entity has transferred to the purchaser the significant risks and rewards of ownership of the goods;

• the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor

effective control over the goods sold;

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits or service potential associated with the transaction will flow to the entity;

and

• the costs incurred or to be incurred in respect of the transaction can be measured reliably

Rendering of services

When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated

with the transaction is recognised by reference to the stage of completion of the transaction at the reporting date. The

outcome of a transaction can be estimated reliably when all the following conditions are satisfied:

• the amount of revenue can be measured reliably;

• it is probable that the economic benefits or service potential associated with the transaction will flow to the entity;

• the stage of completion of the transaction at the reporting date can be measured reliably; and

• the costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

When services are performed by an indeterminate number of acts over a specified time frame, revenue is recognised

on a straight line basis over the specified time frame unless there is evidence that some other method better represents

the stage of completion. When a specific act is much more significant than any other acts, the recognition of revenue is

postponed until the significant act is executed.



Accounting policies

When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is

recognised only to the extent of the expenses recognised that are recoverable.

1.5. Revenue from non-exchange transactions

Non-exchange transactions are defined as transactions where the entity receives value from another entity without

directly giving approximately equal value in exchange.

Cost Recovery Trading Entity generates revenue when costs are recovered with the delivery of services to the public.

These services include:

• Section 24G fines - Revenue in this case is recognized only after the fine has actually been paid instead of when

fines are issued. This is mainly because the recipient is given time to appeal the fine in a court of law.

• Imports and Export Permits - Revenue is recognized on an accrual basis.

• Veterinary services - Revenue is recognized on an accrual basis.

• Accommodation and Entrance fees - Revenue is recognized if and when the actual service does take place.

Interest income is recognized on time- proportion basis using the effective interest method. When a receivable is

impaired, Cost Recovery Trading Entity will reduce the carrying amount to its recoverable amount, being the estimated

future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount

as interest income. Interest income on impaired loans is recognized using the original effective interest rate.

1.6. Unauthorised expenditure

Unauthorised expenditure means:

• overspending of a vote or a main division within a vote; and

• expenditure not in accordance with the purpose of a vote or, in the case of a main division, not in accordance with

the purpose of the main division.

All expenditure relating to unauthorised expenditure is recognised as an expense in the statement of financial performance

in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of the expense,

and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.

1.7. Fruitless and wasteful expenditure

Fruitless expenditure means expenditure which was made in vain and would have been avoided had reasonable care

been exercised.

All expenditure relating to fruitless and wasteful expenditure is recognised as an expense in the statement of financial

performance in the year that the expenditure was incurred. The expenditure is classified in accordance with the nature of

the expense, and where recovered, it is subsequently accounted for as revenue in the statement of financial performance.



Accounting policies

1.8. Irregular expenditure

Irregular expenditure as defined in section 1 of the PFMA is expenditure other than unauthorised expenditure, incurred in

contravention of or that is not in accordance with a requirement of any applicable legislation, including -a. this Act; orb. the State Tender Board Act, 1968 (Act No. 86 of 1968), or any regulations made in terms of the Act; orc. any provincial legislation providing for procurement procedures in that provincial government.

National Treasury practice note no. 4 of 2008/2009 which was issued in terms of sections 76(1) to 76(4) of the PFMA

requires the following (effective from 1 April 2008):

Irregular expenditure that was incurred and identified during the current financial and which was condoned before year

end and/or before finalisation of the financial statements must also be recorded appropriately in the irregular expenditure

register. In such an instance, no further action is also required with the exception of updating the note to the financial

statements.

Irregular expenditure that was incurred and identified during the current financial year and for which condonement is

being awaited at year end is recorded in the irregular expenditure register. No further action is required with the exception

of updating the note to the financial

statements.

Where irregular expenditure was incurred in the previous financial year and is only condoned in the following financial

year, the register and the disclosure note to the financial statements must be updated with the amount condoned.

Irregular expenditure that was incurred and identified during the current financial year and which was not condoned by

the National Treasury or the relevant authority must be recorded appropriately in the irregular expenditure register. If

liability for the irregular expenditure can be attributed to a person, a debt account must be created if such a person is

liable in law. Immediate steps must thereafter be taken to recover the amount from the person concerned. If recovery is

not possible, the accounting officer or accounting authority may write off the amount as debt impairment and disclose

such in the relevant note to the financial statements.

The irregular expenditure register must also be updated accordingly. If the irregular expenditure has not been condoned

and no person is liable in law, the expenditure related thereto must remain against the relevant expenditure item, be

disclosed as such in the note to the financial statements and updated accordingly in the irregular expenditure register.



Accounting policies

1.9. Financial Risk Management

Financial Risk Factors

Cost Recovery Trading Entity’s activities expose it to some financial risks, most of which are managed through internal

controls. Cost Recovery Trading Entity has direct access to its bank account, and cash management is performed.

Risk Management is carried out and monitored by the Risk Management unit in the Department of Agriculture and Rural

Development under policies approved by the Head of Department. The Gauteng Department of Agriculture and Rural

Development has written principles for overall risk management. As a trading entity of the Gauteng Department of

Agriculture and Rural Development, these principles apply to Cost Recovery Trading Entity.

The most significant financial risks are related to reporting (inaccurate financial information that might result in inaccurate

reporting and not meeting reporting deadlines in terms of PFMA) and financial systems (payment systems not aligned

to business processes).

The risk of reporting was mitigated by the implementation of an independent financial package, enabling Cost Recovery

Trading Entity to record financial information on an accrual basis, as opposed to the modified cash basis run by its

parent department.

1.9.1. Liquidity Risk

For Cost Recovery Trading Entity, prudent liquidity risk management implies maintaining sufficient cash to meet its

commitments. To a certain extent, the Gauteng Department of Agriculture and Rural Development through its cash

management programme covered this, if any.



Notes to the Annual Financial Statements

Figures in Rands

2014

R’000

2013

R’000

2. Revenue from non-exchange transactions

Section 24G Fines

Other

6 015

15 430

3 095

-

3. Revenue from exchange transactions

Imports – Conservation

Accommodation – Roodeplaat Nature Reserve

Entrance Fees – Entrance at all reserves

Veterinary Services

Interest Earned On Outstanding Receivables

Other (Fines and vet services/inspections)

981

338

944

2 850

12

3 162

1 049

130

793

1 437

-

10

29,732 6,514

Other income under Revenue from non-exchange transactions includes an amount of R15, 430 for Gains

from Payable written off against Protea after its contract for running the hospitality side at Suikerbosrand

expired.

4. Operating Expenses

Administration Costs

Management Fees- GDARD

Fuel, Oil and Lubrcnt

Spares & Access

Uniform and Prot Clothing

Electrical Supp

KM (Own Transport)

14

4,218

108

686

757

31

1,230

20

2,203

-

-

-

-

7,044 2,223

The Cost Recovery policy states that the entity can be used by Department of Agriculture and Rural Development to cover any possible overspending of the vote by the Department.




Figures in Rands

2014

R’000

2013

R’000

5. Receivables from exchange transactions

Figures in Rand 2014

R’000

2013

R’000

Departmental receivableProtea Hotel

3 232

-

832

12 153

3 232 12 985

After winding up of the Protea Hotel contract it was established that they actually owe the entity R1, 439 after taking into consideration the payables and receivables from both sides. An amount of R10, 714 was subsequently written off.

Age analysis:

91 - 120 days 3 232 12 985

6. Cash and cash equivalents

Cash and bank balance on handPetty Cash

14,580 3

8,962 -

14,583 8,962



R’000

2013

R’000

7. Payables from exchange transactions

Income received in advanceDepartmental payableProtea Hotel

44

1 589 -

105

2 20315 430

1 633 17 738

After winding up of the Protea Hotel contract it was established that the Entity does not owe them anything which let to the R15,430 being treated as a Gains from Payables written off after receiving confirmation of a zero balance.




Figures in Rands

2014

R’000

2013

R’000

8. Accumulated Surplus/Deficit

Balance at beginning of the year Surplus/(Deficit) for the year

4,20911,973

(82)4,291

Balance at the end of the year 16,182 4,209

9. Net cash inflows/outflows from operating activities

Surplus/(Deficit) before tax Non- Cash Movement/Working Capital Changes

11,973(6,352)

4,291 (953)

Increase/Decrease in Payables Increase/Decrease in Receivables

(16,105)9,753

(953) -

5,621 3,338

10. Categories of financial instruments

The accounting policies for financial instruments have been applied to the line items below:

2014

Financial assets Loans and

Receivables

Fair value through

surplus or deficit –

Held for trading

Total

Cash and cash equivalentsTrade and other receivables

-

3 232

14 583

-

14 583

3 232

3 232 14 583 17 815



R’000

2013

R’000

Financial liabilities Financial liabilitiesAmortised cost

Total

Trade and other payables 1 633 1 633

1,633 1 633

11. Taxation

No provision for taxation has been made in the financial statements, as Cost Recovery is not a tax paying entity. ( The entity, as part of the Department of Agriculture and Rural Development is exempt, as per s20 of the Income Tax Act ( Act 58 of 1962).




Figures in Rands

2014

R’000

2013

R’000

12. Related party transactions

Cost Recovery is a trading entity under the control of Gauteng Department of Agriculture and Rural Development; therefore Gauteng Department of Agriculture and Rural Development is considered as its parent department. The following transactions took place between Cost Recovery and the Department:

Management Fees General Expenses

4,218 2,812

2,202 -

Gauteng Department of Agriculture charges management fees to Cost Recovery and were necessary they divert overspending to the entity.

Trade and other receivables from GDARD Trade and other payables to GDARD

3,232

-

832(6,916)

13. Irregular Expenditure

The contract between the Gauteng Department of Agriculture and Rural Development and Protea Hotel expired and was extended without following proper procurement processes resulting in the fees charged by Protea for 2011/2012 being regarded as irregular expenditure

Reconciliation of Irregular Expenditure:

Opening Balance 876 876

Irregular Expenditure condoned (876) -

Irregular expenditure awaiting con-donement

- 876

14. Events after reporting period.

Management is not aware of any matters or circumstances that arose from the end of the reporting to the date of this report which would require adjustments to, or disclosure in the financial statements.

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