Free State Department of Agriculture 3rd Quarterly Conditional Grants and Capital Expenditure Report for 2006/07 Free State Department of Agriculture 19 February 2007 Presented by Mr. MC Mokitlane

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

Index – Cont. LandCare 2006/07: Progress Constraints Internal CAPEX: 3rd Quarter 2006/07 Monthly CAPEX: 3rd Quarter 2006/07 Monitoring Capacity Reporting

Conditional Grants for 2006/07 Comprehensive Agricultural Support Programme (CASP) Land Care Programme (LC) Disaster Management (DM) (To be funded from rollover funds)

2006/07 Allocated Budget and Roll-Over Funds (R’000) Grant Allocated Budget 2005/06 Roll-Over Adjustment to Budget Total Available Budget CASP 25 306 - Land Care 3 115 9 785 3 909 Agricultural Disaster Management 6 672 TOTAL 28 421 6 681 35 887

2006/07 Transfers and Proposed Transfers from National Grant A M J S O N D F CASP 2 531 - 8 857 5 061 LC 312 1 090 1408 TOTAL 2 843 9 947 6469

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

2006/07 Monthly Grant Expenditure up to Dec‘06 (R’000) J S O N D F Total CASP 1 661 3 175 519 975 1050 670 515 2447 3050 - 14062 LC 4 6 216 177 433 154 824 1991 ADM 47 535 736 313 1631 TOTAL 1 708 3 179 525 1191 1227 1103 1428 2601 4187 17684

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

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 204 613 Hide processing & tannery: Kotoko 1 20 545 Riverside Farm 336 116 Mphatlalatsane Layers 7 944 Tikwe Farmers 11 30 647

2006/07 CASP Physical Progress – Cont. Project Name Project Status (%) Expenditure (until December ‘06) Rand Boiteko Peanuts 18 36 430 Glenross Farm 25 47 632 Kamogelo Chickens Tender Multi-Layer Trading Cc 14 39 306 Qwaqwa Hydroponics Project 11 27 019 114 Farmers 249 265 Diyatalawa 62 123 447 Van Reenen& Swinburne LRAD 34 127 587 Heelgoed LRAD Farms 50 234 191 Thuloane Trust

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 Matlakeng Cc 50 120 148 Itumeleng Cc 32 69 297 Mashaeng Maluti Dairy 24 211 276 Setsoto Dairy Cancelled 15980 Pax Project Itekeng Project 96 382 961

2006/07 CASP Physical Progress – Cont. Project Name Project Status (%) Expenditure (until December ‘06) R’ Sasolburg Hydroponics 16 60 000 Parys Hydroponics Tender Bophela Ke Matla Medicinal Plant Nursery Steynsrus Land Reform Projects 7 87 883 Metsimaholo CommPropertyTrust 61 138 036 Training: Beneficiaries Of Projects Unallocated Expenditure Varying 8 408 112 Oppermans Restitution Project 1 102 095

2006/07 LandCare Physical Progress Current Project Progress (%) On Schedule Exp. to end Dec’06 (R) Aasvoëlberg Junior LandCare 85 X 251 560 Enviro Charcoal project 55 386 648 Satansbos Research 60 88 839 Sehalahala Control 83 108 085 Eco Schools & Enviro Clubs 98 440 800 Bophelo ke Matla Medicinal Plants 40 85 825 General Awareness 65 571 208

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

(Over)/Under Expenditure 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

2006/07 Monthly Capital Expenditure up to December ‘06 (R’000) (Excl 2006/07 Monthly Capital Expenditure up to December ‘06 (R’000) (Excl. Grants) Capital A M J S O N D F Assets 475 95 188 47 (2) 33 102 241 143 -

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

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

I Thank You!