2016/01/111

CONTENTS 1.Background 2.Mandate 3.Financial Report 1 st Quarter 4.Performance Report 1 st Quarter 5.Projects Report 6.Educational Awards 7.Human Resources 8.Accounting Authority Meetings 2016/01/112

BACKGROUND The Ingonyama Trust was established in 1994 by an Act of Parliament – Act No 3 of 1994 with His Majesty the King as the sole Trustee. An amendment Act in 1997 among other things established a Board to administer the affairs of the Trust. The Board comprises of eight members plus Isilo or his nominee as Chairperson. The eight (8) Board members are appointed by the Minister of Rural Development and Land Reform, after considering National and Provincial interests. The Trust is the one of the largest landowners in the Province with a total extent of 2,844,903 hectares held under some 1600 individual titles. The Trust owns land in all of the District Municipalities and Metro Municipal areas in KwaZulu-Natal. The Board sees Real Estate as its major activity. The core business of the Trust is to administer the land for the “material benefit and social wellbeing of the individual members of the tribes”. However, no alienation or burdening of the land may occur without the written permission of the relevant traditional or community authority. 2016/01/113

GRAPH ON FUNDING MODEL 2016/01/114 INGONYAMA TRUST BOARD 1. TRANSFER PAYMENT FROM THE DEPARTMENT OF RURAL DEVELOPMENT AND LAND REFORM 2. TRADING ACTIVITIES - LEASE INCOME - SERVITUDES - INVESTMENT INCOME

FUNDING MODEL The Ingonyama Trust Board obtains its funding from the following two sources. Transfer payment received from the Department of Rural Development and Land Reform, and income from trading and investing activities The income from trading activities consist mainly of lease income and compensation from servitudes. The ITB uses the income from trading activities because the Transfer payment received from the department is not sufficient to defray the total expenditure of the Trust. 2016/01/115

6 1st QUARTER EXPENDITURE 2015/2016 BUDGET FOR THE YEAR SPENDING TO THE END OF 1 st QUARTER BALANCE AVAILABLE FOR THE YEAR % OF THE TOTAL BUDGET SPENT IN THE 1 ST QUARTER EXPENDITURE PER PROGRAMME RRR% ADMINISTRATION LAND MANAGEMENT RURAL DEVELOPMENT TRADITIONAL COUNCIL AND COMMUNITY SUPPORT

2016/01/117 BUDGET FOR THE YEAR SPENDING TO THE END OF 1st QUARTER BALANCE AVAILABLE FOR THE YEAR % OF THE TOTAL BUDGET SPENT IN THE FIRST QUARTER RRR% Economic Classification Compensation of employees Goods and Services Rent – Ulundi Office Building and other fixed structures Machinery, equipment, vehicles Software and intangible Assets st QUARTER EXPENDITURE 2015/2016

NOTES ON EXPENDITURE The total amount spent including provisions for the 1st quarter amounted to R 14.6m. This represents % of the total budget for the year. R was spent on land management. R 6 m was utilised on rural development. R 2 m was spent on traditional council/ community support for the first quarter. R 6.5 m was utilised on administration costs (includes staff salaries). 2016/01/118

9 SCHEDULE OF GOODS AND SERVICES 1 st Quarter Actual R Legal fees - other Advertising and public awareness campaign Land Tenure Information System Bank Charges Cleaning repairs & other expenses Payments to traditional council / community support– Administration and Other Educational Awards Projects launches and information sharing meetings Motor Vehicle Expenses Stationery and Printing Travel,Accomodations,Meetings Board Members’ Remuneration

2016/01/1110 SCHEDULE OF GOODS AND SERVICES (Contd) 1 st Quarter Actual R External Audit Fees Internal Audit Fees Electricity and Water Telephone Computer Software/Licencing Fee Security Expenses Internal Audit Committee Members’ Remuneration Insurance

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NOTES ON 1 ST QUARTER INCOME The total revenue generated for the 1 ST Quarter amounted to R 23.6 m (Includes transfer payment), This represents % of the total budget for the year, Transfer payment received for the first quarter is R 6.1m. 2016/01/1112

SCHEDULE OF REVENUE ITEMACTUAL FOR THE QUARTER BUDGET FOR THE YEAR % OF TOTAL YEARLY INCOME RENTAL INCOMER 14,537,750R 17,642,62182,40% SERVITUDES AND OTHERR 140,446R 352,65039,83% INVESTMENT INCOMER 2,836,495R 10,647,24826,64% RESERVES -R 40,930, % TRANSFER PAYMENTR 6,116,000R 18,069,00033,85% TOTAL INCOME FOR 1 ST QUARTERR 23,630,691R 87,642,42426,96% 2016/01/1113

PERFORMANCE REPORTING 1 st QUARTER 2015/ /01/1114 PROGRAMME:Administration STRATEGIC GOAL:To administer the affairs of the Trust for the benefit and material wellbeing of the communities living on land under Ingonyama Trust Board STRATEGIC OBJECTIVE:Efficient resource management to ensure effective internal control systems in order to comply with legislative requirements

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2016/01/1117 PERFORMANCE REPORTING 1 st QUARTER 2015/16 PROGRAMME: Land Management STRATEGIC GOAL:To administer the affairs of the Trust for the benefit and material well being of the communities living on land under Ingonyama Trust Board STRATEGIC OBJECTIVE:Efficient resource management to ensure effective internal control systems in order to comply with legislative requirements

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2016/01/1119 PERFORMANCE REPORTING 1 st QUARTER 2015/16 PROGRAMME:Rural Development STRATEGIC GOAL:To administer the affairs of the Trust for the benefit and material well being of the communities living on land under Ingonyama Trust Board STRATEGIC OBJECTIVE:Efficient resource management to ensure effective internal control systems in order to comply with legislative requirements

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2016/01/1121 PERFORMANCE REPORTING 1 st QUARTER 2015/16 PROGRAMME: Traditional Council Support STRATEGIC GOAL:To administer the affairs of the Trust for the benefit and material well being of the communities living on land under Ingonyama Trust Board STRATEGIC OBJECTIVE:Efficient resource management to ensure effective internal control systems in order to comply with legislative requirements

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HIGH IMPACT PROJECTS IDENTIFIED BY THE BOARD The Board initiated engagements with Richards Bay Minerals for the Zulti South mining operation where Richards Bay Minerals will be mining titanium on the land occupied by the Mkhwanazi and the Dube Traditional Councils. It is envisaged that this project will lead to job creation and will be seen as a catalyst for further development. The Traditional Councils have consented to this initiative and progress will be reported in the next quarter. 2016/01/1123

EDUCATIONAL AWARDS 2016/01/1124 MALESFEMALESTOTAL FIELDS OF STUDY Bachelor of Education (10) Bachelor Business Admin (1) Bachelor of Politics (1) Bachelor of Sports (1) Bachelor of Law (1) Bachelor of Arts (3) Bachelor of Commerce (5) Bachelor of Chemistry (3) Bachelor of Pharmacy (1) Bachelor of Agric (1) National Dip Office (2) National Dip Building (1) National Dip Elec (1) National Dip Enviro (1) Town Planning (1) Taxation (1) Public Relations (1) An amount of R 339,490 was paid on behalf of students from the Ximba TC

HUMAN RESOURCES 2016/01/1125 POSTNUMBERVACANTFILLED Permanent27324 Contract31328 The vacant positions are Chief Executive Officer Manager Real Estate Auxiliary Services Assistant – the post will be filled in the next quarter. Action taken to fill in these posts CEO – the post has been filled Manager Real Estate – Short-listing for this post took place on 11 June 2015, however no suitable candidates were found. The process to recruit for this post is on hand.

2016/01/1126 4th QUARTER ACCOUNTING AUTHORITY MEETINGS EXCO BOARD TENURE COMMITTEE 04 April May May June 2015

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