Briefing: Quarter 2 and 3 - Quarterly Monitoring Reports Portfolio Committee of the Department of Agriculture, Forestry and Fisheries (DAFF) 3 March 2015

Reputation promise/mission The Auditor-General of South Africa has a constitutional mandate and, as the Supreme Audit Institution (SAI) of South Africa, exists to strengthen our country’s democracy by enabling oversight, accountability and governance in the public sector through auditing, thereby building public confidence.

Agenda 1. Audit of Predetermined Objectives 2. Review of Quarter 2 and Quarter 3 quarterly monitoring reports (QMRs)

AUDIT OF PREDETERMINED OBJECTIVES

Audit of Predetermined Objectives Identify desired impacts Assess and adjust Specify performance indicators resources Monitor and take Corrective action End-year reporting Strategic Planning Implementation and in-year reporting Operational planning and budgeting Policy development INSTITUTION National department Provincial department Municipality Public entity Municipal entity INSTITUTION National department Provincial department Municipality Public entity Municipal entity OVERSIGHT: Parliament, provincial legislature or municipal council OVERSIGHT: Parliament, provincial legislature or municipal council Set targets and allocate resources

Audit of Predetermined Objectives Legislative Requirements AGSA Constitution Chapter 9 Section 188 – must audit and report on accounts, financial statements and financial management of government institutions Public Audit Act (No. 25 of 2004) Section 20 – AGSA must prepare audit report containing opinion/ conclusion on: - Financial statements and financial position - Compliance and financial management - Predetermined objectives (performance) Departments Public Finance Management Act (No. 1 of 1999) Section 38(1)(a)(i) – has and maintains effective, efficient and transparent systems of financial and risk management and internal control. Section 40(3)(a) - annual performance report Treasury Regulations Chapter 5 - Strategic Planning Guidelines, Instruction Notes, Practice Notes, issued by National Treasury Public Service Regulations (PSR) Part III B: (Only applicable to departments) Regulations 1(a)-(f),(g) FMPPI Framework for managing programme performance information (issued by the National Treasury in May 2007 ) Chapter 5 & Framework for Strategic Plans and Annual Performance Plans par. 4&6

Audit of Predetermined Objectives Understand and test the design and implementation of the performance management systems, processes, and relevant controls 1. Understand Test the measurability, relevance, presentation & consistency of planned and reported performance information 2. Test Usefulness Conclude on the usefulness of the report on predetermined development priorities or objectives 3. Conclude Usefulness Test the reported performance information to relevant source documentation to verify the validity, accuracy & completeness of reported performance information 4. Test Reliability Conclude on the reliability of the reported performance for selected development priorities or objectives 5. Conclude Reliability AGSA Audit process

Audit of Predetermined Objectives Audit Outcomes of 2013/14 Compliance with regulatory requirements Usefulness Reliability No matters reported Reported in audit report Additional matter paragraphs included in the audit report: > Material adjustments were made to the annual performance report submitted for audit.

REVIEW OF Q2 and Q3 QMR’s

Quarter 2 and quarter 3 QMR’s review Q2: 10% of reason for variances not reliable Programme 2: Agricultural Production, Health and Food Safety Programme 2: Agricultural Production, Health and Food Safety Target as per APP Q2 targetActual for Q2Deficiency noted Animal disease management plan developed. GAP Analyses and stakeholder consultations on the management of animal diseases. The GAP analysis report that was generated by the stakeholders in Q1 was received. However, consultations with the stakeholders did not take place in Q2. No supporting documentation for reason for variance listed.

Quarter 2 and quarter 3 QMR’s review Programme 2: Agricultural Production, Health and Food Safety Programme 2: Agricultural Production, Health and Food Safety Q3: 12.5% of reason for variances not reliable Q3: 12.5% of reported targets not valid and accurate Target as per APP Q3 targetDeficiency noted 2 animal improvement schemes monitored. Animal improvement scheme performance data collected. Data collection on parameters is continuing well. The report drawn for the collection of data was dated 23 January 2015, therefore the target was only achieved in Q4. No reason for variance listed in Q3. Primary animal health care clinics delivered to provinces. Commission construction of mobile clinics. Construction of prefabricated mobile clinics was commissioned. However, the construction of 28 to 32 ton trucks to be converted into mobile clinics was delayed. No supporting documentation for reason for variance listed.

Programme 3: Food Security and Agrarian Reform Programme 3: Food Security and Agrarian Reform Q2: 40% of reason for variances not provided Q2: 20% of reported targets not reliable Target as per APP Q2 targetActual for Q2Deficiency noted Develop norms and standards for comprehensive producer development support. Norms and standards for comprehensive support consulted internally. Norms and standards still being developed in partnership with the NAMC. Consultation expected to take place in the Q4. The comment on deviation noted on the report does not provide a reason why the target was not met it only states what has been done in the quarter and what still needs to be done for the target to be achieved. Approve and implement the National Extension Advisory Policy. National Extension Advisory Policy approved by EXCO. National Extension and Advisory Services Policy as well as its Implementation Plan were tabled at MinTech on 9 July The resolution of MinTech was for the Policy document and Implementation Plan to be forwarded to all HODs and Public Entity CEOs for comments and inputs. HODs and CEOs were given until 11 August 2014, to submit their comments and inputs. These were incorporated into the Policy document on 24 August The comment on deviation noted on the report does not provide a reason why the target was not met it only states the fact that EXCO did not yet approve the policy an not why not. Quarter 2 and quarter 3 QMR’s review

Programme 3: Food Security and Agrarian Reform Programme 3: Food Security and Agrarian Reform Q2: 40% of reason for variances not provided Q2: 20% of reported targets not reliable Target as per APP Actual for Q2Deficiency noted The Policy document and its Implementation Plan were recommended by MinTech at a meeting held on 11 September 2014, to be tabled at next MINMEC meeting. The Policy and Implementation Plan were tabled at the MINMEC meeting on the 26 September MINMEC approved the policy and further requested Provinces to consider the implications of the approval in line with the Implementation Plan. Quarter 2 and quarter 3 QMR’s review

Programme 3: Food Security and Agrarian Reform Programme 3: Food Security and Agrarian Reform Q2: 40% of reason for variances not provided Q2: 20% of reported targets not reliable Target as per APP Q2 targetActual for Q2Deficiency noted smallholder producers supported smallholder producers supported. The audit was performed for verification and completeness and findings were identified and they are explained on deficiency column. 1.Detailed listing did not agree to the figure reported in the Q2 report. 2.Invalid ID numbers noted. 3.ID numbers noted on listing that did not agree to the supporting documentation. 4.Not all supporting documents were available smallholder producers supported smallholder producers smallholder producers have been supported in Q2. No reason for variance noted for the target that was exceeded smallholder producers supported smallholder producers Result are based on the audit that was performed. 1.Invalid ID numbers noted. 2.Attendance registers that were not signed by participants. 3.Attendance registers that were not prepared on an official DAFF stationary (logo, province not included) Quarter 2 and quarter 3 QMR’s review

Programme 5: Forestry and Natural Resource Management Programme 5: Forestry and Natural Resource Management Q2: 50% of reason for variances not provided Q2: 50% of reported targets not reliable Target as per APP Q2 targetActual for Q2Deficiency noted Irrigation Strategy developed and approved by EXCO. Workshops with provinces, EXCO and other stakeholders. Workshops were not conducted during this quarter. The comment on deviation noted on the report does not provide a reason why the target was not met it only states what still needs to be done to achieve the target. 500 ha of woodlands and Indigenous forests rehabilitated. 125 ha of woodlands and Indigenous forests rehabilitated. A total 175,83 ha of estate indigenous forest was rehabilitated during Q2.44,1 ha of state indigenous forests was rehabilitated in September 2014, while 50,39 ha and 81,34 ha was rehabilitated in July and August, respectively No reason was provided for why the target was exceeded..

Programme 5: Forestry and Natural Resource Management Programme 5: Forestry and Natural Resource Management Q2: 50% of reason for variances not provided Q2: 50% of reported targets not reliable Target as per APP Q2 targetActual for Q2Deficiency noted 500 ha of woodlands and Indigenous forests rehabilitated. 125 ha of woodlands and Indigenous forests rehabilitated. Only consolidated reports are supplied by the regions not monthly report Only consolidated reports are currently available that indicates the number of hectares rehabilitated however, the individual daily/monthly reports that filters into these consolidated reports where not received and we could therefore not verify the reliability of the reported target. Implement climate change research programme on crop suitability. Monitor the implementation of crop suitability. Implementation of crop suitability was monitored as follows: Cultivar was identified for the project (Soya-beans). Sites to conduct trials and project beneficiaries were identified. Three project sites were identified and verified in North West, Free State and Mpumalanga. Implementation plan developed and finalized. The reported provinces did not agree to the provinces as per the supporting documentation provided. North West instead of Limpopo was reported on the Q2 report. Quarter 2 and quarter 3 QMR’s review

Programme 5: Forestry and Natural Resource Management Programme 5: Forestry and Natural Resource Management Q3: 20% of reason for variances not provided Q3: 20% of reported targets not reliable Target as per APP Q3 targetActual for Q3Deficiency noted 500 ha of woodlands and Indigenous forests rehabilitated. 125 ha of woodlands and Indigenous forests rehabilitated. A total of ha of state indigenous forests was rehabilitated. No reason was provided for why the target was exceeded ha of woodlands and Indigenous forests rehabilitated. 125 ha of woodlands and Indigenous forests rehabilitated. There are no monthly report that are supplied by the regions. Only consolidated reports are currently available that indicates the number of hectares rehabilitated however, the individual daily/monthly reports that filters into these consolidated reports where not received and we could therefore not verify the reliability of the reported target.

Thank You.