MTEF Budget : 2011/12 – 2013/14

2 The presentation will cover the following: Budget Allocation Basis for budget allocation Budget allocation per programme 2011/12: Budget per standard item Professional services

Budget Allocation: 2011/12 – 2013/14 The NAMC has received an MTEF budget allocation letter for the period 2011/ /14 from DAFF. The budget allocations are as follows: 2011/12:R /13:R /14:R

Budget Allocation Cont’ This resulted in the following percentage fluctuation for the period: From 2010/11 – 2011/12:15% increase From 2011/12 – 2012/13:16% decrease From 2012/13 – 2013/14: 7% increase. The decrease of R5 million in 2012/13 is due to the following: The NAMC has in the previous financial year received additional funding to expand the export promotion programme that will afford 100 emerging agribusinesses the opportunity to participate in international trade. This funding was for the MTEF period 2009/10 – 2011/12 only.

Budget Allocation Cont’ 2011/12 – 2013/14 Other source of Income The NAMC is anticipating to generate income from the investment of the grants to be received from DAFF at the beginning of the financial year 2011/12. The following are the projected interest to be generated: 2011/12:R /13:R /14:R Total Income for the MTEF period then results in: 2011/12:R /13:R /14:R

Basis for budget allocation The NAMC consist of 7 programmes excluding Council and Audit. The budgets allocated to programs were done in consultation with each respective programme manager. The following were the issues considered when allocating the budget to various programmes. Baseline assessment Review of previous years expenditure Identification of once off payments/ non- recurring expenditure Contractual obligations e.g. ( rental office space and leased equipments )

Budget Allocation per Programme for MTEF period and Current year ( 2010/11) 2010/ /122012/132013/14 R’000 Division: Finance & Administration ,6057,891 Human Resources ,1663,352 Statutory Measures ,9922,133 Agribusiness Development ,1763,365 Agricultural Trusts ,4181,484 MERC ,38410,556 CEO ,1873,374 Council ,2391,307 Audit Total ,31533,620

2011/12 BUDGET PER STANDARD ITEMS Expenditure categories MTEF Budget 2010/11 R’000 MTEF budget 2011/12 R’000 Increase/(Decrease) R’000 % Change Personnel Merit Bonus 16,863 2,041 18,258 2,357 1, % Administration7,5327, % Professional services8,5079, % Assets % Total35,18737,2492,062 6%

Professional services Included in the professional service budget is the amount of R3,3 million for Eastern Cape Red meat project, during the past financial years 2009/10 the NAMC has received funding for an amount of R1, 8 million from ComMark, this funding was meant to assist in the development of Eastern Cape Red Meat project, the contract for this project has expired on 31 March 2010, however the NAMC continued to fund this project from its budget during 2010/11 financial year, for the financial year 2011/12 an amount of R3,3 million has been allocated for the Eastern Cape Red Meat which forms part of the Agricultural Trust budget. The NAMC is currently sourcing funds in order to sustain this project in future.

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