1. INGONYAMA TRUST BOARD’S 2ND AND 3RD QUARTER PERFORMANCE AND FINANCIAL REPORT: 2015 – 2016 FINANCIAL YEAR
PRESENTATION TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM
DATE : 17 FEBRUARY 2016
2019/05/07

2. CONTENTS Introduction Overall Programme Performance
Programme 1 : Administration
Programme 2 : Land Management
Programme 3 : Rural Development
Programme 4 : Traditional Council Support
Overall Financial Performance
Educational Awards
Accounting Authority meetings
Conclusion
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3. INTRODUCTION
The presentation covers the organisational programme performance in line with the four (4) programmes of the Ingonyama Trust Board
Performance recorded during the period under review is compared against targets set in the 2015 – 2016 Annual Performance Plan (APP)
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4. PROGRAMME PERFORMANCE
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5. PROGRAMME 1 : ADMINISTRATION
Strategic Objective
Performance Indicator
Annual Target 2015/16
2nd Quarter Target
2nd Quarter Results
3rd Quarter Target
3rd Quarter Results
Reason for variance
Corrective action
To ensure that efficient internal resource management is aligned to legislative requirements
Number of policies approved by the Board 5 1
No Variance
Not applicable
Percentage of all moveable assets to be recorded in the asset register
100%
90%
Balance of the tractors purchased still in storage awaiting distribution
Plan in place to visit storage facility in order to record tractors
Percentage of vacant positions to be filled
100% (3)
88.8%
66.6%
- 2nd Quarter focus was of filling the position of Head of Secretariat in July 2015;
- Positions finalised in 3rd Quarter for Deputy Manager Administration and Assistant Registry Clerk
- 2nd Quarter priority was the filling of the (3) vacant posts which were finalised in 3rd Quarter for Deputy Manager Administration, Assistant Registry Clerk. HOD Real Estate position interviews held awaiting finalisation in 4th Quarter.
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6. PROGRAMME 1 : ADMINISTRATION (contd)
Strategic Objective
Performance Indicator
Annual Target 2015/16
2nd Quarter Target
2nd Quarter Results
3rd Quarter Target
3rd Quarter Results
Reason for variance
Corrective action
To ensure that efficient internal resource management is aligned to legislative requirements
Percentage of performance agreements signed
100%
94.4%
56 out of 57 Employees signed Performance Agreements during the 2nd Quarter and the balance was to be finalised during 3rd Quarter
1 Employee finalised their performance agreements during the 3rd Quarter
Monthly Backup of exchange / file server properly completed 12 3
No Variance
Not Applicable
Bi annual check of software compliance conducted 2 1
Not applicable
Provision of skills development to employees to improve service delivery
Number of training programmes conducted 10
Priority during the 2nd Quarter was given to Performance Agreements and Personal Development Plans
Revised plan being finalised based on current challenges on the ground
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7. PROGRAMME 1 : ADMINISTRATION (contd)
Strategic Objective
Performance Indicator
Annual Target 2015/16
2nd Quarter Target
2nd Quarter Results
3rd Quarter Target
3rd Quarter Results
Reason for variance
Corrective action
To improve customer relationship
Payment of valid invoices paid within 30 days of receipt in finance
100%
No Variance
Not Applicable
Communicati on Strategy approved 1
Not applicable
Number of Memorandum of Agreements with Traditional Councils(TC’s) approved 4
- During the 2nd Quarter the translation of the MOU was completed and a plan for engagement of amaKhosi developed;
- During the 3rd Quarter the Engagement with Amakhosi was done and two TCs indicated their willingness to sign which are Qiko and Bhidla TCs;
- Qiko TC has signed and Bhidla TC is still outstanding
Follow up to be done with Bhidla TC for the signed MOU
Number of monthly communicatio n reports approved by the Board 12 3
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8. PROGRAMME 2 : LAND MANAGEMENT
Strategic Objective
Performance Indicator
Annual Target 2015/16
2nd Quarter Target
2nd Quarter Results
3rd Quarter Target
3rd Quarter Results
Reason for variance
Corrective action
Provision of secured tenure rights to facilitate development on Ingonyama Trust land
Number of land tenure rights approved by the Board
1300
325
106 49
- During the 2nd Quarter there were 2 meetings held in which 162 tenure applications were approved and 106 applications signed by both parties
- During the 3rd Quarter there was a requirement of informed consent on residential leases
- Also in the 3rd Quarter the reviews of rentals charged on commercial and agricultural leases were done
- To Engage and educate the communities on residential leases for informed consent
- Finalisation of the rental policy and development of a replacement tool for the residential leases
To maintain an intergrated and comprehensive land tenure administration system (database of tenure rights)
Quarterly update of land holdings register 4 1
No Variance
Not applicable
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9. PROGRAMME 2 : LAND MANAGEMENT (contd)
Strategic Objective
Performance Indicator
Annual Target 2015/16
2nd Quarter Target
2nd Quarter Results
3rd Quarter Target
3rd Quarter Results
Reason for variance
Corrective action
Making Trust land available for infrastructure development
Number of MOUs and planning and development agreements approved by the Board 4 1
- During the 2nd Quarter a Draft MOU was developed between the ITB and Newcastle Local Municipality feedback was not received
- Follow up with Newcastle Local Municipality
- Finalisation of the report by consultants to enable MOU negotiation
Prevention and monitoring of illegal occupation of Trust land
Number of legal interventions undertaken by the Board 3
- During the 2nd Quarter three areas were threatened with by the illegal occupation of land which as Mathonzi, Gezinsila and Fynn
- A letter of demand was sent to the illegal occupier under the Macambini TC
Not applicable
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10. PROGRAMME 3 : RURAL DEVELOPMENT
Strategic Objective
Performance Indicator
Annual Target 2015/16
2nd Quarter Target
2nd Quarter Results
3rd Quarter Target
3rd Quarter Results
Reason for variance
Corrective action
Provide support to beneficiary communities to improve food security
Number of agricultural projects approved by the Board 5 1 4
- During the 2nd Quarter there were four (4) agricultural projects which were implemented
- These projects were carried over to the 3rd Quarter
Not applicable
To facilitate economic development (industry and rural enterprise establishment)
Develop a strategy on economic development
Terms of reference drafted prioritised for implementation in 4th Quarter
Number of partnership agreements approved by the Board
- During the 2nd Quarter work was in progress on identification of relevant partnerships
- During the 3rd Quarter the identified partners had not come on board
Secretariat to continue and pursue the potential partners
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11. PROGRAMME 3 : RURAL DEVELOPMENT (contd)
Strategic Objective
Performance Indicator
Annual Target 2015/16
2nd Quarter Target
2nd Quarter Results
3rd Quarter Target
3rd Quarter Results
Reason for variance
Corrective action
To identify strategically located land to be utilised for high impact commercial ventures
Number of commercial high impact projects approved by the Board 4 1 3
It was identified that the indicator was incorrectly written. A proposed amendment to the indicator to read as Land with high commercial impact identified and approved by the Board
Land has been identified in 3 areas (Newcastle, Nyokeni Precinct, Mpophomeni) and is currently being packaged
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12. PROGRAMME 4 : TRADITIONAL COUNCIL SUPPORT
Strategic Objective
Performance Indicator
Annual Target 2015/16
2nd Quarter Target
2nd Quarter Results
3rd Quarter Target
3rd Quarter Results
Reason for variance
Corrective action
Provide training to Traditional Communities in skills development and capacity building programs
Number of traditional councils trained 45 11 9
- During the 2nd Quarter the training programme was reviewed
- During the 3rd Quarter the availability of Traditional Councils was a challenge
- The results of the review of the training programme in the 2nd Quarter resulted in the development of a training plan for implementation in the 3rd Quarter
- The variance for the training programme to be catered in the 4th Quarter to cover the shortfall in performance
Facilitate socio – economic investment to communities living on Trust land
Number of educational awards granted
100 25 20 2
- During the 2nd Quarter Tembe TC submitted bursary requests
- During the 3rd Quarter only two requests were received by the Board
Influx of requests expected to be received during the 4th Quarter as a result of school opening for 2016 academic year
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13. FINANCIAL PERFORMANCE
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14. 2nd and 3rd QUARTER EXPENDITURE 2015/2016
EXPENDITURE PER PROGRAMME
Item
Final Budget
2nd Quarter Spending
3rd Quarter Spending
Spending to the end of 3rd Quarter
Percentage of Total Budget Spent in the 3rd Quarter
Mitigation plan on under expenditure R %
ADMINISTRATION
40.00
See Note 1
LAND MANAGEMENT
38.77
See Note 2
RURAL DEVELOPMENT
69.89
See Note 3
TRADITIONAL COUNCIL SUPPORT
23.66
See Note 4
39.90
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15. 2nd and 3rd QUARTER EXPENDITURE 2015/2016
EXPENDITURE PER ECONOMIC CLASSIFICATION
Item
Final Budget
2nd Quarter Spending
3rd Quarter Spending
Spending to the end of 3rd Quarter
Percentage of Total Budget Spent in the 3rd Quarter R %
COMPENSATION OF EMPLOYEES
70.41
GOODS AND SERVICES
38.06
RENT ON LAND - ULUNDI OFFICE
77.79
BUILDING AND OTHER FIXED STRUCTURES -
0.84
MACHINERY, EQUIPMENT & VEHICLES
71.44
SOFTWARE AND INTANGIBLE ASSETS
22.85
39.90
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16. NOTES ON EXPENDITURE
The total expenditure for Quarter 2 and Quarter 3 amounted to R10.3m and R10.8m respectively.
39.90% of the total budget was spent to the end of Quarter 3 (including capital expenditure)
70.41% of the total salary budget was utilised up to the end of the 3rd quarter.
38.06% of the total goods and services budget was utilised up to the end of the 3rd quarter.
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17. MITIGATION PLAN Note 1 : Administration
The filling of the vacancies for the Deputy manager administration, Real estate manager, Auxiliary clerk and the Business development specialist will result in further expenditure being incurred in quarter four.
In excess of R is committed for the 4th quarter for stakeholder /community engagements.
It is also envisaged that funds will be utilised for the development of policies, organizational structure and job grading in the 4th quarter.
Further audit costs will be incurred during the finalisation of the year end financial statements.
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18. MITIGATION PLAN (contd)
Note 2 - Land management
Funds will be utilised for the the land valuation exercise which is to commence in the 4th quarter
Funds are to be utilised on training of traditional councils on land management
Note 3 - Rural Development
Irrigation systems are to be installed for the agricultural projects. Expenditure is to be incurred for completion of existing projects.
Note 4 - Traditional Council Support
The Board has appointed a Business development specialist who is working with Traditional Councils to draft business plans for the utilization of funds.
The Board has set aside R for bursaries to be paid in terms of the “Funda Zulu Bursary scheme”.
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19. SCHEDULE OF GOODS AND SERVICES
Item
2nd Quarter
Actual
3rd Quarter R
Legal fees - other
Staff Training
Land Tenure Information System
Advertising and public awareness campaign
Bank Charges
Cleaning repairs & other expenses
Payments to community beneficiaries
Tenure Upgrade and finalisation of Settlement -
Projects launches and informative meetings
Workshop for Co - operation agreement
Workshops and road shows
HRM Strategy and Communication Strategy
Board Members Remuneration
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20. SCHEDULE OF GOODS AND SERVICES (contd)
Item
2nd Quarter
Actual
3rd Quarter R
Agricultural Projects - Expenses
Insurance
Motor Vehicle Expenses
External Audit Fees
Internal Audit Committee Remuneration
Internal Audit Fees -
Computer Software/Licencing Fee
Stationery and Printing
Travel , Accommodation, Meetings
Electricity and Water
Security Expenses
Telephone/Data
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21. SCHEDULE OF REVENUE R % Item Actual income for the 2nd Quarter
Actual income for the 3rd Quarter
Cumulative to the end of 3rd Quarter
Budget for the year
Cumulative actual over budget percentage R %
RENTAL INCOME
R 4,671,235
R 2,976,129
R 21,574,980
R 17,642,621
122,29%
SERVITUDES,REFUND ON LEGAL FEES AND OTHER
R ,404 R
R 1 ,006,636
R ,650
285,45%
INVESTMENT INCOME
R 2,875,916
R 2,990,544
R 8,702,956
R 10,647,248
81,74%
TOTAL INCOME EXCLUDING RESERVES AND TRANSFER PAYMENT
R 7,633,555
R 6,
R 31,284,572
R 28,642,519
109,22%
TRANSFER PAYMENT
R 5,721,000
R 5,050,000
R 16,887,000
R 18,069,000
93,46%
RESERVES -
R 40,930,905
00,00%
TOTAL INCOME
R 13,354,555
R 11,
R 48,
R 87,642,424
54,96%
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22. NOTES ON 2nd and 3rd QUARTER INCOME
The total revenue generated for quarter 2 amounted to R7.6 million and for quarter 3 amounted to R6.7 million (excluding transfer payments).
The accumulative income at the end of quarter 3 amounted to R31.2 million which exceeded the budget by 9.22%.
93.46% of the transfer payment was received up to the end of quarter 3.
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23. EDUCATIONAL AWARDS – Granted 2nd QUARTER
Total Amount : R
No of Males
No of Females
Total 11 9 20
Name of Student
Gender
Field
NZ Thusi
Female
Bachelor of Public Admin
University of Zululand
SM Banda
Male
B.Com Business Management & Economics
M Ndlazi
SS Manzini
B.Com Accounting
NB Manzini
Bachelor of Communication Science
TN Zwane
Bachelor of Education
MM Khumalo
SN Mahlangu
Nursing
KC Gumede
L Mthembu
N Thwala
Science Foundation
SN Gwala
Bachelor of Law
T Ngema
Bachelor of Arts
DM Shange
LS Msweli
SS Mageba
Z Mkhumbuzi
B.Com Banking
NV Gumede
KK Mathenjwa
ML Mdluli
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24. EDUCATIONAL AWARDS – Granted 3rd QUARTER
Total Amount Paid : R
No of Males
No of Females
Total 2
Name of Student
Gender
Field
Institution
Amount
L Ntanzi
Female
Bachelor of Education
University of Zululand
LH Thango
Bachelor of Law
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25. ACCOUNTING AUTHORITY MEETINGS
MEETING TYPE/QUARTER
EXECUTIVE COMMITTEE (EXCO)
TENURE COMMITTEE
BOARD
QUARTER 2
22 July
30 July
14 August
18 September
13 August
25 August
25 September
29 September
QUARTER 3
21 October
23 October
30 October
09 December
27 November
20 November
30 November
14 December
11 December
21 December
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26. Thank You
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