Presentation on theme: "INGONYAMA TRUST BOARD Strategic Plan 2011/2012 and Budget 2011/2012"— Presentation transcript:
1INGONYAMA TRUST BOARD Strategic Plan 2011/2012 and Budget 2011/2012 A Schedule 3A Public EntityIn terms of the Public Finance Management ActPRESENTATION OFStrategic Plan 2011/2012andBudget 2011/2012
2BACKGROUNDIngonyama Trust Board has grown formidable in strength since the establishment of the Board in Operating with a small staff complement a recruitment drive was initiated towards the end of 2009 to employ additional staff members including the Head of Secretariat. Most of these posts were filled during 2010/11 financial year. The additional capacity assisted in developing more streamlined and effective systems geared to benefit the communities who live in the land that is administered and managed by the Board. It is therefore anticipated that most of these systems that have been developed will be implemented during the 2011/12 financial year.Under land management the Ingonyama Trust Board will fast track programs that entails consolidation of title deeds and reconcile the asset register, transfer of former KwaZulu R293 towns to local authorities, transfer of land for state domestic purposes and land tenure upgrade and formalization. All this is to ensure the optimum usage of land for the benefit of communities and other occupiers including the state and municialities. Also, in partnership with the Department of Agriculture and Rural Development the Board will provide support to “One Village One Product” project as per the call by his Majesty the King.
3The Board has also resolved to intensify its outreach programs in 2011/12. This is to make sure that communities to whom the Board supports fully understands its mandates. This program is long overdue and has been constrained by lack of capacity. Coupled with this program will be a drive to review Ingonyama Trust Board Act 1994 (Act No. 03 of 1994) as amended.Finally, it is the Board’s intention to continuously enhance and streamline its business systems. One way of achieving this will be through maximizing the financial benefit to communities from income of the Trust and prioritizing the projects that will be of community benefit.
4Legislative mandate (Specific) VisionTo provide the best possible land management systems to communities who live on Ingonyama Trust land.MissionTo improve the quality of life of the people living on Ingonyama Trust land by ensuring that land usage is to their benefit and in accordance with the laws of the land.ValuesTransparency, Integrity, Honesty, Professionalism, Value for money, Open Communication and Consultative process, Service excellence through sound planning.Legislative mandate (Specific)KwaZulu-Natal Ingonyama Trust Act 1994 (Act No. 03 of 1994) as amended.
5SITUATIONAL ANALYSISOPERATIONAL ENVIRONMENTLand ManagementIngonyama Trust Board’s core business is land management. Due to the saturation in terms of land availability, particularly the land owned by Municipalities there is a surge in demand of land in areas owned by the Trust. The demand for land varies from commercial to residential needs. The Board is faced with a situation whereby it has to balance these needs, that is to make the land available without losing ownership. At times the urgency of these needs ends up straining the relationship between Ingonyama Trust Board and the relevant stakeholders.RoyaltiesAlso the coming into operation of the Mineral and Petroleum Resources Royalty, 2008 (Act 28 of 2008) and Mineral and Petroleum Resources Development Act, 2002, (Act 28 of 2002), and its lack of clarity on payment of royalties creates uncertainty on the management of Trust Account.
6Human Resources ORGANIZATIONAL ENVIRONMENT According to the current organogram the staff complement for Secretariat it is almost 90% filled. There are however some contract positions filled to assist the Secretariat to execute its functions effectively. With the Board’s expectation that its programs should be spread to cover the whole Province, the Secretariat had to relook at the existing organogram. As a result a revised organogram is going to be submitted to the Department for consideration.The Board has for years operated on the Premises that are managed by the Department of Land Reform and Rural Development. However as from 2011, the Board will relocate to its new premises (65 Trelawnley Road). The offices at Trelawnley will be temporary and the Board intends to build an Administrative Block that will accommodate all staff during 2011/12 financial year.
7SATELLITE OFFICESAlso during 2011/12 the Board intends to open satellite offices that will be aligned to District Municipalities. This will assist in bring services offered by Ingonyama Trust Board closer to clients. It will also address the delays in processing documents / applications that are submitted to the Board.
8CONSTRAINTS AND MEASURES PLANNED TO OVERCOME THEM Even though the capacity of the Secretariat has increased during the 2010/11 financial year there is still more capacity needed to execute all the programs for the Board effectively. Hence a proposal to revise the current organogram so that work is decentralized to the Districts. Decentralization will assist in taking serves that the Board offers closer to the clients. This has resulted in land invasions and squatting on Trust land and this might have huge costs implications in the long run. The Board intends to develop a comprehensive strategy to deal with these challenges in the forth-coming financial year.With the lack of clarity posed by legislations likes Mineral and Petroleum Resources Royalty, 2008 (Act 28 of 2008) and Mineral and Petroleum Resources Development Act, 2002, (Act 28 of 2002), on royalties it has been difficult for the Board to assist the affected communities to plan their programs. The matter has been taken up with the National Treasury and hopefully it will be resolved in the near future.
9DESCRIPTION OF PLANNED QUALITY IMPROVEMENT MEASURES Land ManagementIt is the Board’s objective to make sure that it land is optimally managed to benefit the communities who live on it. Key to achieving this objective during 2011/12 financial year would be to conduct land audits, develop a land management plan for exclusive land and reconcile the asset register.CommunicationThe development of a Communication strategy has been identified as one of the key critical aspects to be focused on during 2011/12 financial year. The Board intends to increase its awareness programs to all its stakeholders. The outreach programs are to include; core functions of Ingonyama Trust Board, its legal mandates and projects that the Board is engaged on.Support to Traditional Communities in ITB landIt is the Board’s intention to support and facilitate business opportunities and development and social needs of the communities who live on Ingonyama Trust land. The Board will endeavor in its programs to identify business opportunities for the communities on its land and package them so that they can ultimately benefit the affected communities.
10FACTS AND FIGURESLand owned by the Trust - 2,700,000 hectares.Number of titles: 1491.Land held in almost all 61 municipal areas.Population living on Trust land estimated at 4,558,698.241 Traditional councils/Authorities have jurisdiction on Trust land.Trust set up by Ingonyama Trust Act No 3 of 1994 as amended.
11STRATEGIC OVERVIEW 2011/12 OUTCOME 7: Vibrant, equitable and sustainable rural communities with food security for allOUTCOME 8:Sustainable human settlements and improved quality of household lifeAREAS OF FOCUSLand ManagementProjectsPartnership in Dev. ProjectsEnhance Capacity
12LAND MANAGEMENTTo strengthen land management strategies for both inclusive and exclusive landAsset RegisterLand audit of Trust FarmsImplementation of 100Ha projectsLand audit of R293 townsCooperative AgreementsManagement of exclusive land to address challenges of relentless squatting and illegal business activities mash rooming on this category of land
13PROJECTS AGRIBUSINESS Support to communal gardens / 100ha projects SOCIO-ECONOMIC UPLIFTMENT PROJECTSSupport to coops projects (poultry, sewing etc.,)EDUCATIONALBursaries to studentsCULTURESupport to cultural groups and events
14PARTNERSHIP IN DEV. PROJECTS Packaging Business and Development opportunities of which the Board will approve and assist in implementation thereof.Package models of development and workshop stakeholders.
15ENHANCE CAPACITYEffective communication to all relevant stakeholders has been a challenge to the Board due to its limited capacity.Increased staff complimentRollout extensive outreach programsDecentralization of the office to DM
17OVERVIEW OF BUDGET AND TRUST FUNDING..cont. The budget has been aligned to the Strategic Plan for the year 2011/2012.The Ingonyama Trust Board’s own fund income comprises ofIncome earned from Leases, Royalties and InvestmentThe Budgeted amount for 2011/2012 is R which makes up % of the Total income budgetTransfer Payment from the Department of Rural Development and Land Reform, in addition to the above, would be R which makes up the remainder of the 8.97 % of the total income budgetIn terms of the Board’s disbursement policy 90 % of the income earned from trading activities is to be utilized for the benefit of the communities and 10 % of the income earned is to be retained for Board expenses.
18The expenditure budgeted is to be funded from the above sources. The internal administration costs of the Board are met from a grant - in - aid received from the National Department of Rural Development and Land Reform. Certain operational costs are met from the ten percent of funds accruing to the Trust. These arrangements are in terms of the Ingonyama Trust Act 1994 and the Regulations made under the Act.
19Outcome 7: Vibrant, equitable and sustainable rural communities with food security for all Outcome 8: Sustainable human settlements and improved quality of household lifeStrategic Goals:EFFECTIVE AND EFFICIENT MANAGEMENT OF THE TRUST LAND FOR THE MATERIAL BENEFIT AND WELFARE OF COMMUNITIES LIVING THEREONIMPROVE ORGANIZATIONAL CAPACITY AND PROFECIENCYStrategic ObjectivePerformance Measure Indicator11/1212/1313/1414/15BaselineBudgetTarget1.To administer, manage and control Ingonyama Trust landNumber of Co operation agreements entered into and implemented by TC’s, LM’s and ITB131020162.To ensure the optimum usage of land for the benefit of communities and other occupiersPercentage of appropriate land tenure applications approved by the Board10%In-House50%60%70%90%3.An asset register reconciled-Number of Land Tenure records in putted700100012001500
204.To ensure the optimum usage of land by developing appropriate land management plansNumber of exclusive land parcels identified with tailor made land management plan developed and implementedR 2M2R 1M4685.To enhance and improve ITB’s proficiency through outreach programsNumber of Workshops and Road shows conducted to traditional communities and to other organs of the state or stakeholders15106.Identification of potential business and development opportunities within communities living on ITB landNumber of Traditional Communities assisted and supported in identification of Business opportunities37.Reviewing and maintenance of policiesReview of ITB legislationNumber of policies developed-Finance-HRM50 00025 000
218.To develop a comprehensive Human Resource and Communication strategyHRM strategy and Communication strategy developed250 00025 0009.To support communities for their material benefit and welfare through disbursement of funds that accrues to the TrustPercentage of applications received from communities and approvals thereof to receive income from the TrustTC own funds10152025INCOME PROJECTIONS FOR 2010/11Strategic Goals:EFFECTIVE AND EFFICIENT MANAGEMENT OF THE TRUST LAND FOR THE MATERIAL BENEFIT AND WELFARE OF COMMUNITIES LIVING THEREONStrategic ObjectiveMeasurable ObjectivePerformance Measure IndicatorPROJECTED INCOME FOR 2011/12 - “000”11/1212/1313/1414/1515/16Budget10.Enhance ITB business / financial systemsExtension of security of tenure to fund development projectsIncome to be generated (Non mining –including existing leases)Mining / royalty income to be generated (including existing mining leases)6 27117 508-6 58518 3846 91419 3037 26020 2687 62321 282Grants / Transfer of Funds11 90013 51813 77314 22414 802
22Strategic Goals: CAPITAL PROJECTS FOR 2011/12 EFFECTIVE AND EFFICIENT MANAGEMENT OF THE TRUST LAND FOR THE MATERIAL BENEFIT AND WELFARE OF COMMUNITIES LIVING THEREONStrategic ObjectiveMeasurable ObjectivePerformance Measure IndicatorEST. EXPENDITURES FOR 2010/1111/1212/1313/1414/1515/16Budget11.Enhance ITB businessNew OfficesCompletion of renovationsRelocation
239,322.00 INCOME 2011/2012 ITB Own Fund Income 69,364,987.00 INCOME2011/2012ITB Own Fund Income69,364,987.00PTO - General2,000.00PTO - Commercial9,648.00Rental Income non- mining6,271,797.00Royalties and Prospecting Income17,508,948.00Investment Income12,628,631.00Interest on overdue Debtors accountsFrom reserves for ITB office accommodationFrom reserves for rates provision on ITB landOther Income / Servitude20,000.00Department of Rural Development and Land Reform 6,842,860.00Transfer Payments – Current6,834,000.008,860.00TOTAL INCOMER 76,207,847.009,322.0027,914,5,000,000.00
242011/2012 EXPENSES ITB Own Fund Expenditure carried forward 58,449,987.00Advertisement and public awareness campaigns100,000.00Legal fees435,000.00Bank charges21,676.00Repairs, grass cutting and cleaning240,000.00Provision for doubtful debts50,000.00Payment to beneficiary communities ( 90 % portion )32,805,311.00Capital expenditure including ITB office accommodation24 ,000,000.00Staff Training150,000.00Cultural events and meetings120,Land Tenure Information system - maintenanceSpecial projects service provider378,000.00
252011/2012 Total ITB own fund expenditure R 69,364,987 EXPENSES continued from previous slideITB Own Fund Expenditure balance brought forward58,449,987.00Rates provision5,000,000.00Rates office ITB office accommodation75,000.00Electricity and water240,000.00Establishment of communal gardens250,000.00Housing admin expenses50,000.00Tenure upgrade and formalization of settlements2 ,000,000.00Workshop and road shows300,000.00Identification of potential business opportunities500,000.00Review and maintenance of policies150,HRM Strategy and communication Strategy150,000.00Land identification and management planWorkshop for co-operation agreements2,000,000.00100,Total ITB own fund expenditure R 69,364,987
26R 60,096,142.00 Departmental Funding Expenditure 6 842 860.00 Board Members remuneration694,124.00Bank Charges9,074.00Travel ,accommodation, meetings450,000.00Salaries3,155,705.00Internal audit committee members rem6,000.00Insurance288,000.00Stationery and other expenses240,000.00Crockery & cutlery10,000.00Motor vehicle expenses70,000.00Personnel agency fees50,000.00Computer software100,000.00Security expenses432,TelephoneExternal audit FeesInternal audit feesContract- Real Estate ,000.00120,000.00510,457.00Cleaning ,repairs and maintenance70,000.00TOTAL EXPENDITURER 60,096,142.00
27SUMMARY AND CONCLUSION The Ingonyama Trust Board sees its role increasingly as real estate and land management orientated.To this extent the Ingonyama Trust seeks to strive as a model in real estate management in the country.The strategic plan and budget for 2011/2012 have been prepared in order to achieve the optimum usage of land for the benefit of communities and other parties including the state and municipalities and other parties.The benefits flowing to persons living on trust land will include:Income from rents for commercial development.Joint ventures/community participation in developments.Employment opportunities.Skills transfer.Quality of life improved through:Provision of Housing.Provision of infrastructure and basic services.The Budget for 2011/2012 totals R76,207, and is made up of:ITB own fund income : R 69,364,987.00Voted funds : R 6,842,860.00