11

3rd Quarterly Conditional Grants and Capital

Expenditure Report for 2006/07

Free State Department of Free State Department of AgricultureAgriculture

19 February 200719 February 2007

Presented by Mr. MC MokitlanePresented by Mr. MC Mokitlane

22

Index

• Overview of Conditional Grants for 2006/07

• Allocated Conditional Grant Budget and Roll-over for 2006/07

• Conditional Grant transfers for 2006/07

• 3rd Quarter Budget Variance Report

• Monthly Grant Expenditure: 3rd Quarter 2006/07

• Outstanding Commitments

• CASP 2006/07: Progress

33

Index – Cont.

•LandCare 2006/07: Progress

•Constraints

• Internal CAPEX: 3rd Quarter 2006/07

•Monthly CAPEX: 3rd Quarter 2006/07

•Monitoring Capacity

•Reporting

44

Conditional Grants for 2006/07

• Comprehensive Agricultural Support Programme (CASP)

• Land Care Programme (LC)

• Disaster Management (DM) (To be funded from rollover funds)

55

2006/07 Allocated Budget and Roll-Over Funds (R’000)

Grant Allocated

Budget

2005/06 Roll-Over

Adjustment to

Budget

Total Availabl

e Budget

CASP 25 306 - - 25 306

Land Care 3 115 9 785 3 909

Agricultural Disaster Management

- 6 672 - 6 672

TOTAL 28 421 6 681 785 35 887

66

2006/07 Transfers and Proposed Transfers from National

Grant A M J J A S O N D J F M

CASP 2 531

- - 8 857

- - 8 857

- - 5 061

- -

LC 312 - - 1 090

- - 1 090

- - 1408 - -

TOTAL

2 843

- - 9 947

- - 9 947

- - 6469 - -

77

2006/07 Budget and Expenditure up to Dec ’06

Grant Budget (R’000)

Expenditure (R’000)

% Budget Spent

(Over)/Under Expenditure

(R’000)

CASP 25 306 14 062 55.6 11 244

Land Care 3 909 1 991 50.9 1 918

Agricultural Disaster Management

6 672 1 631 24.4 5 041

TOTAL 35 887 17 684 49.3 18 203

88

2006/07 Monthly Grant Expenditure up to Dec‘06 (R’000)

Grant A M J J A S O N D J F M Total

CASP 1 661

3 175

519 975 1050 670 515 2447 3050 - - - 14062

LC - 4 6 216 177 433 177 154 824 - - - 1991

ADM 47 - - - - 535 736 - 313 - - - 1631

TOTAL

1 708

3 179

525 1191 1227 1103 1428 2601 4187 - - - 17684

99

Outstanding Commitments

• Unpaid commitments as on 31 December 2006:– CASP: R9 879 327.44– Land Care: R 484 356.02 – Disaster Management: R4 324 492.04

1010

2006/07 CASP Physical Progress

Project Name Project Status (%) Expenditure(until December ‘06)

Rand

Jacobsdal commonage 95 798 474

Bethany restitution 50 393 969

Boitumelo vineyard 44 583 033

Vukani-ma-afrika 4 56 453

Essential Oils 50 204 613

Hide processing & tannery: Kotoko

1 20 545

Riverside Farm 95 336 116

Mphatlalatsane Layers 1 7 944

Tikwe Farmers 11 30 647

1111

Project Name Project Status (%)Expenditure

(until December ‘06)Rand

Boiteko Peanuts 18 36 430

Glenross Farm 25 47 632

Kamogelo Chickens Tender 0

Multi-Layer Trading Cc 14 39 306

Qwaqwa Hydroponics Project 11 27 019

114 Farmers 25 249 265

Diyatalawa 62 123 447

Van Reenen& Swinburne LRAD 34 127 587

Heelgoed LRAD Farms 50 234 191

Thuloane Trust Tender 0

2006/07 CASP Physical Progress – Cont.

1212

2006/07 CASP Physical Progress

Project Name Project Status (%) Expenditure(until December ‘06)

R’

Nyambose&Motsima Farming Cc

54 153 314

Seloane Farmers Project Tender 0

Matlakeng Cc 50 120 148

Itumeleng Cc 32 69 297

Mashaeng Tender 0

Maluti Dairy 24 211 276

Setsoto Dairy Cancelled 15980

Pax Project Tender 0

Itekeng Project 96 382 961

1313

Project Name Project Status (%)Expenditure

(until December ‘06)R’

Sasolburg Hydroponics 16 60 000

Parys Hydroponics Tender 0

Bophela Ke Matla Medicinal Plant Nursery

Tender0

Steynsrus Land Reform Projects

787 883

Metsimaholo CommPropertyTrust

61138 036

Training: Beneficiaries Of Projects

Tender0

Unallocated Expenditure Varying 8 408 112

Oppermans Restitution Project

16 1 102 095

2006/07 CASP Physical Progress – Cont.

1414

2006/07 LandCare Physical Progress

Current Project Progress (%) On ScheduleExp. to end Dec’06 (R)

Aasvoëlberg Junior LandCare

85 X 251 560

Enviro Charcoal project

55 X 386 648

Satansbos Research 60 X 88 839

Sehalahala Control 83 X 108 085

Eco Schools & Enviro Clubs

98 X 440 800

Bophelo ke Matla Medicinal Plants

40 X 85 825

General Awareness 65 X 571 208

1515

Constraints – Grant Funding

– Procurement and tender procedures (Learning curve)

– Scarce Skills (Agric Engineers and Economists)

– Departmental working capital

– Group dynamics

– Financing of agricultural inputs and mechanisation

1616

2006/07 Annual Capital Expenditure (excluding conditional grants) up to

December ’06 (R’000)

Capital Assets

Budget Expenditure

% Budget Spent

(Over)/Under

Expenditure

Assets 1 612 1 322 82 290

1717

2006/07 Monthly Capital Expenditure up to December ‘06 (R’000) (Excl.

Grants)

Capital

A M J J A S O N D J F M

Assets 475 95 188 47 (2) 33 102 241 143 - - -

1818

Monitoring Capacity

• The Department has developed sufficient capacity to monitor its projects, both financially and physically

• An additional four staff members have been allocated to the Strategic Planning and Control Unit since January 2007

• Systems and processes have been put in place to improve the efficiency and quality of information flow in the Department

1919

Monthly Reporting

• All DORA reports (financial and non-financial) are submitted to NDA on a monthly and quarterly basis

• IRM reports are submitted to the Free State Treasury on a monthly basis

• EPWP reports are submitted to Free State Department of Public Works on a monthly basis and to NDA on a quarterly basis

2020

I Thank You!