1. Public Hearing on Conditional Grants and Capital Expenduture 2005/06 Free State Department of Agriculture Presented by Mr. MC Mokitlane

2. Relevant Conditional Grants Comprehensive Agricultural Support Programme (CASP) Comprehensive Agricultural Support Programme (CASP) Land Care Programme (LC) Land Care Programme (LC) Agricultural Disaster Management (ADM) Agricultural Disaster Management (ADM) Provincial Infrastructure Grant (PIG) Provincial Infrastructure Grant (PIG)

3. 2005/06 Allocated Budget and Roll-Over Funds Grant Allocated Budget (R’000) 2004/05 Roll-Over (R’000) Total Available Budget (R’000) CASP 21 088 15 375 36 463 Land Care 2 000 1 514 3 514 Disaster Management 0 17 000 16 000 (Adj.) 33 000 PIG 16 569 7 739 24 308 TOTAL 39 657 57 628 97 285

4. 2005/06 Transfers (From National) GrantAMJJASONDJFM CASP 17 483 __ 7 381 __ __4218__ LC 2001 714 __700__700__400__ ADM 17 000 ________16000__ PIG 24 308 ________-__ TOTAL 60 505 __ 8 081 __ __20618__ Total 36 463 3 514 33 000 24 308 97 285

5. 2005/06 Budget and Expenditure up to March’06 GrantBudget(R’000) Expenditure (R’000) Deviation (%) (under–expenditure) CASP36,46336,4630 Land Care 3,5143,505(0.02) Disaster Manageme nt 33,00026,328(20.2) PIG24,30824,305(0.02) TOTAL97,28590,601(6.9)Deviation“R”0 0,000 6,672 0.003 6,684

6. 2005/06 Quarterly Grant Expenditure up to March’06 (R’000) Grant2005/06Q12005/06 Q2 Q22005/06 Q3 Q32005/06 Q4 Q4TOTAL CASP7744221284611804636463 Land Care 223180195511473505 Disaster Management 583202682651545426328 PIG3303314411264659424305 TOTAL118537562299454124190601

7. 2005/06 Monthly Grant Expenditure up to March’06 (R’000) GrantAMJJASONDJFMTotal CASP3854212517651519471222118118995381328627591200136463 LC41081111601282771518160329787403505 ADM(28)31030136252911354773234911435910337920726328 PIG125099010636259371582(118)10234114812221452392024305 TOTA L 50803533324026661949294761131600078321074746262586890601

8. 2005/06 Quarterly Capital Expenditure up to March’06 (R’000) Capital Assets 2005/06Q12005/06 Q2 Q22005/06 Q3 Q32005/06 Q4 Q4 Assets 9 831 4 885 20 811 23152 TOTAL 58 679

9. 2005/06 Monthly Capital Expenditure up to March’06 (R’000) Capit al AMJJASONDJFM Assets 4 749 2 363 2 719 1 972 1 439 1 474 1 430 12 243 7 138 31662330 1765 6 TOTAL 58 679

10. Monitoring Capacity Assessment of monitoring capacity: Assessment of monitoring capacity: –At farm level progress on projects are monitored by extension staff; –At Departmental level projects are monitored by the M&E Unit; –Financial progress is monitored at Departmental level by Financial Management and the M&E Unit. –Manual processes have been utilised to date –A web based computer system is being developed and will be launched in March 2006 and effectively utilised in the 2006/07 financial year. This will provide instant access to information relating to any approved infrastructure projects. –Main constraints in terms of monitoring is the understaffing of the M&E Unit, as well as the level of authority and mandate thereof.

11. Monitoring Capacity (Cont.) Constraints identified: Constraints identified: –Financial procedures and delegations –Procurement and tender procedures –Seasonal limitations –Internal staff capacity –Departmental operating capital budget –Financial management and recordkeeping at farm and regional level –Regional responsibilities and delegations –Group dynamics

12. Monitoring Capacity (Cont.) Corrective actions: Corrective actions: –New financial delegations to SCM and Regions implemented since 12 October 2005 –SCM staff capacity improvements –Reprioritization of operating capital budget

13. Reporting Trends The Department submits the following prescribed reports to NDA, Provincial Treasury and the Provincial DPW: The Department submits the following prescribed reports to NDA, Provincial Treasury and the Provincial DPW: –EPWP Reports –DORA Reports –Treasury Infrastructure Reports –Treasury Quarterly Non-Financial Reports –CASP Quarterly Non-Financial Progress Report All reports are submitted on or before the 15 th day of each month, except in the case of quarterly reports. All reports are submitted on or before the 15 th day of each month, except in the case of quarterly reports.

14. Service Level Agreements During the 2005/06 financial year the Department entered into four service agreements: During the 2005/06 financial year the Department entered into four service agreements: –Business Intelleq CC: 01/10/2005 –CSIR: 08/08/2005 –NWGA: 05/08/2004 (Ongoing: 2004-2006) –Central Business Consultants CC: 21/10/2005

15. I Thank You!