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INGONYAMA TRUST BOARD Strategic Plan 2011/2012 and Budget 2011/2012

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Presentation on theme: "INGONYAMA TRUST BOARD Strategic Plan 2011/2012 and Budget 2011/2012"— Presentation transcript:

1 INGONYAMA TRUST BOARD Strategic Plan 2011/2012 and Budget 2011/2012
A Schedule 3A Public Entity In terms of the Public Finance Management Act PRESENTATION OF Strategic Plan 2011/2012 and Budget 2011/2012

2 BACKGROUND Ingonyama 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.

3 The 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.

4 Legislative mandate (Specific)
Vision To provide the best possible land management systems to communities who live on Ingonyama Trust land. Mission To 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. Values Transparency, 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.

5 SITUATIONAL ANALYSIS OPERATIONAL ENVIRONMENT Land Management Ingonyama 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. Royalties Also 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.

6 Human 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.

7 SATELLITE OFFICES Also 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.

8 CONSTRAINTS 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.

9 DESCRIPTION OF PLANNED QUALITY IMPROVEMENT MEASURES
Land Management It 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. Communication The 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 land It 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.

10 FACTS AND FIGURES Land 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.

11 STRATEGIC OVERVIEW 2011/12 OUTCOME 7:
Vibrant, equitable and sustainable rural communities with food security for all OUTCOME 8: Sustainable human settlements and improved quality of household life AREAS OF FOCUS Land Management Projects Partnership in Dev. Projects Enhance Capacity

12 LAND MANAGEMENT To strengthen land management strategies for both inclusive and exclusive land Asset Register Land audit of Trust Farms Implementation of 100Ha projects Land audit of R293 towns Cooperative Agreements Management of exclusive land to address challenges of relentless squatting and illegal business activities mash rooming on this category of land

13 PROJECTS AGRIBUSINESS Support to communal gardens / 100ha projects
SOCIO-ECONOMIC UPLIFTMENT PROJECTS Support to coops projects (poultry, sewing etc.,) EDUCATIONAL Bursaries to students CULTURE Support to cultural groups and events

14 PARTNERSHIP 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.

15 ENHANCE CAPACITY Effective communication to all relevant stakeholders has been a challenge to the Board due to its limited capacity. Increased staff compliment Rollout extensive outreach programs Decentralization of the office to DM

16 OVERVIEW OF BUDGET AND TRUST FUNDING

17 OVERVIEW 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 of Income earned from Leases, Royalties and Investment The Budgeted amount for 2011/2012 is R which makes up % of the Total income budget Transfer 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 budget In 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.

18 The 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.

19 Outcome 7: Vibrant, equitable and sustainable rural communities with food security for all
Outcome 8: Sustainable human settlements and improved quality of household life Strategic Goals: EFFECTIVE AND EFFICIENT MANAGEMENT OF THE TRUST LAND FOR THE MATERIAL BENEFIT AND WELFARE OF COMMUNITIES LIVING THEREON IMPROVE ORGANIZATIONAL CAPACITY AND PROFECIENCY Strategic Objective Performance Measure Indicator 11/12 12/13 13/14 14/15 Baseline Budget Target 1. To administer, manage and control Ingonyama Trust land Number of Co operation agreements entered into and implemented by TC’s, LM’s and ITB 1 3 10 20 16 2. To ensure the optimum usage of land for the benefit of communities and other occupiers Percentage of appropriate land tenure applications approved by the Board 10% In-House 50% 60% 70% 90% 3. An asset register reconciled - Number of Land Tenure records in putted 700 1000 1200 1500

20 4. To ensure the optimum usage of land by developing appropriate land management plans Number of exclusive land parcels identified with tailor made land management plan developed and implemented R 2M 2 R 1M 4 6 8 5. To enhance and improve ITB’s proficiency through outreach programs Number of Workshops and Road shows conducted to traditional communities and to other organs of the state or stakeholders 1 5 10 6. Identification of potential business and development opportunities within communities living on ITB land Number of Traditional Communities assisted and supported in identification of Business opportunities 3 7. Reviewing and maintenance of policies Review of ITB legislation Number of policies developed -Finance -HRM 50 000 25 000

21 8. To develop a comprehensive Human Resource and Communication strategy HRM strategy and Communication strategy developed 2 50 000 25 000 9. To support communities for their material benefit and welfare through disbursement of funds that accrues to the Trust Percentage of applications received from communities and approvals thereof to receive income from the Trust TC own funds 10 15 20 25 INCOME PROJECTIONS FOR 2010/11 Strategic Goals: EFFECTIVE AND EFFICIENT MANAGEMENT OF THE TRUST LAND FOR THE MATERIAL BENEFIT AND WELFARE OF COMMUNITIES LIVING THEREON Strategic Objective Measurable Objective Performance Measure Indicator PROJECTED INCOME FOR 2011/12 - “000” 11/12 12/13 13/14 14/15 15/16 Budget 10. Enhance ITB business / financial systems Extension of security of tenure to fund development projects Income to be generated (Non mining –including existing leases) Mining / royalty income to be generated (including existing mining leases) 6 271 17 508 - 6 585 18 384 6 914 19 303 7 260 20 268 7 623 21 282 Grants / Transfer of Funds 11 900 13 518 13 773 14 224 14 802

22 Strategic Goals: CAPITAL PROJECTS FOR 2011/12
EFFECTIVE AND EFFICIENT MANAGEMENT OF THE TRUST LAND FOR THE MATERIAL BENEFIT AND WELFARE OF COMMUNITIES LIVING THEREON Strategic Objective Measurable Objective Performance Measure Indicator EST. EXPENDITURES FOR 2010/11 11/12 12/13 13/14 14/15 15/16 Budget 11. Enhance ITB business New Offices Completion of renovations Relocation

23 9,322.00 INCOME 2011/2012 ITB Own Fund Income 69,364,987.00
INCOME 2011/2012 ITB Own Fund Income 69,364,987.00 PTO - General 2,000.00 PTO - Commercial 9,648.00 Rental Income non- mining 6,271,797.00 Royalties and Prospecting Income 17,508,948.00 Investment Income 12,628,631.00 Interest on overdue Debtors accounts From reserves for ITB office accommodation From reserves for rates provision on ITB land Other Income / Servitude 20,000.00 Department of Rural Development and Land Reform  6,842,860.00 Transfer Payments – Current 6,834,000.00 8,860.00 TOTAL INCOME R 76,207,847.00 9,322.00 27,914, 5,000,000.00

24 2011/2012 EXPENSES ITB Own Fund Expenditure carried forward
58,449,987.00 Advertisement and public awareness campaigns 100,000.00 Legal fees 435,000.00 Bank charges 21,676.00 Repairs, grass cutting and cleaning 240,000.00 Provision for doubtful debts 50,000.00 Payment to beneficiary communities ( 90 % portion ) 32,805,311.00 Capital expenditure including ITB office accommodation 24 ,000,000.00 Staff Training 150,000.00 Cultural events and meetings 120, Land Tenure Information system - maintenance Special projects service provider 378,000.00

25 2011/2012 Total ITB own fund expenditure R 69,364,987
EXPENSES continued from previous slide ITB Own Fund Expenditure balance brought forward 58,449,987.00 Rates provision 5,000,000.00 Rates office ITB office accommodation 75,000.00 Electricity and water 240,000.00 Establishment of communal gardens 250,000.00 Housing admin expenses 50,000.00 Tenure upgrade and formalization of settlements 2 ,000,000.00 Workshop and road shows 300,000.00 Identification of potential business opportunities 500,000.00 Review and maintenance of policies 150, HRM Strategy and communication Strategy 150,000.00 Land identification and management plan Workshop for co-operation agreements 2,000,000.00 100, Total ITB own fund expenditure R 69,364,987

26 R 60,096,142.00 Departmental Funding Expenditure 6 842 860.00
Board Members remuneration 694,124.00 Bank Charges 9,074.00 Travel ,accommodation, meetings 450,000.00 Salaries 3,155,705.00 Internal audit committee members rem 6,000.00 Insurance 288,000.00 Stationery and other expenses 240,000.00 Crockery & cutlery 10,000.00 Motor vehicle expenses 70,000.00 Personnel agency fees 50,000.00 Computer software 100,000.00 Security expenses 432, Telephone External audit Fees Internal audit fees Contract- Real Estate ,000.00 120,000.00 510,457.00 Cleaning ,repairs and maintenance 70,000.00 TOTAL EXPENDITURE R 60,096,142.00

27 SUMMARY 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 69,364,987.00 Voted funds : R 6,842,860.00


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