1. ILIMA/LETSEMA PROJECT GRANT PRESENTATION TO SELECT COMMITTEE ON APPROPRIATION KZN AGRICULTURE & ENVIRONMENTAL AFFAIRS 21 MAY 2013

2. PRESENTATION OUTLINE 1.Budget Performance: Trends in allocation, transfers and actual expenditure 2.Capacity constraints / Challenges 3.Monitoring capacity 4.Reporting mechanisms 5.Business plans 2012/13

3. Budget Performance Transfers were received as scheduled Low expenditure in Quarter 3 and high in Quarter 4 due to:- incorrect allocation codes on the financial system which required correcting journals to be processed in Quarter 4; Bulk of mechanisation and food security expenditure is incurred in Quarter 4 in line with the seasonal agricultural activities. Province spent 100% of the budget allocation for 2012/13

4. Capacity Constraints / Challenges The change in the allocation codes on the financial system did effect the spending trends on the system. This was rectified and all expenditure correctly allocated. Unseasonal high rainfall did cause some initial delay in implementation of projects such as mechanisation as well as earth dams. Change in management of food security programme due to contract of Senior Manager ending did result in some initial delays in the programme. However the department has appointed Senior Manager and was able correct and make up the lost time.

5. Monitoring Capacity Department has a Monitoring and Evaluation Unit at a Director Level This unit monitors performance for all activities, including those for conditional grants. Line Managers report quarterly on performance against set targets.

6. Reporting Mechanism Department reports monthly on financial performance using the In Year Monitoring report of National Treasury. IYM report submitted to Provincial Treasury and DAFF Quarterly Performance report to DAFF No transfers are made to local government or public entity

7. Business Plan – 2012/13 See attached table for achievements against targets

9. LIMING PROGRAMME Timely application and incorporation of appropriate amounts of lime, P and K can more than double crop yields (including staple crops such as maize) provided that other factors such as rainfall, weed control, and seed and nitrogen inputs are conducive to crop growth & production. Contrast in maize growth on limed, and acidic soils

12. Rehabilitation of Dip tank Construction of a new Dip tank

14. Siyabonga Thank you