1. INGONYAMA TRUST BOARD PERFORMANCE REPORTING
BRIEFING TO THE PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM
17 SEPTEMBER 2014
2018/08/08

2. CONTENTS Background Funding Model 2013-2014 Fourth Quarter Report
First Quarter Report
Budget Spent
Strategic Overview
Human Resources
Board Meetings
Accounting Authority Meetings
Educational Awards
Training to Amakhosi
2018/08/08

3. BACKGROUND
The Ingonyama Trust was established in 1994 by an Act of Parliament – Act No 3 of 1994 with His Majesty the King as the sole Trustee. An amendment Act in 1997 among other things established a Board to administer the affairs of the Trust. The Board comprises of eight members plus Isilo or his nominee as Chairperson. The eight (8) Board members are appointed by the Minister of Rural Development and Land Reform, after considering National and Provincial interests.
The Trust is the one of the largest landowners in the Province with a total extent of 2,844,903 hectares held under some 1600 individual titles. The Trust owns land in all of the District Municipalities and Metro Municipal areas in KwaZulu-Natal.  
The Board sees Real Estate as its major activity. The core business of the Trust is to administer the land for the “material benefit and social wellbeing of the individual members of the tribes”. However, no alienation or burdening of the land may occur without the written permission of the relevant traditional or community authority.
2018/08/08

4. Vision, Mission and Values
To be a leader in sustainable communal land management.
Mission
To contribute to the improvement of the quality of life of the members of the traditional communities living on Ingonyama Trust Land by ensuring that land management is to their benefit and in accordance with the laws of the land.
Mandate
As per Section 2 of the Ingonyama Trust Act 3 (Kz) of 1994 as amended.
Values
Transparency,
Integrity,
Honesty,
Professionalism,
Value for money,
Open Communication,
Consultation and
Service excellence.
2018/08/08

5. FUNDING MODEL
The Ingonyama Trust Board obtains its funding from the following two sources.
Transfer payment received from the Department of Rural Development and Land Reform,
and ITB own self – generated funds.
The amount reflected for 2013/2014 has been audited.
The ITB’s self generated funds consist mainly of lease income, investment income and compensation from servitudes.
The ITB uses its own self generated fund as the Transfer payment received from the department is not sufficient
to defray the total expenditure of the Trust.
2018/08/08

6. CONSOLIDATED INCOME FOR 2013 / 2014
INCOME FOR THE 4TH QUARTER
TOTAL INCOME FOR 2013/2014
% OF TOTAL YEARLY INCOME GENERATED IN
4TH QUARTER
Revenue R %
Net Rental Revenue
22.18
Royalty Income
100
Servitudes and other
99.84
Interest Income
28.48
Transfer payment
0.00
Total Revenue
27.95%
2018/08/08

7. The total revenue generated for the 4th quarter amounted to R13.01 m .
This represented % of the total revenue generated for 2013/2014.
No transfer payment was received for the 4th quarter of 2013/2014.
2018/08/08

8. Total Revenue for the year ending 31 March 2014
The Total revenue generated for the year amounted to R ( Excluding straight lining lease income )
ITB self generated funds amounted to R m.(68.86 % of total revenue)
Transfer payment received for the year amounted to R m. ( % of total revenue)
2018/08/08

9. ITB TRANSFER PAYMENT EXPENDITURE FOR FORTH QUARTER 2013 / 2014
ACTUAL FOR THE 4TH QUARTER
TOTAL BUDGETED
FOR 2013 / 2014
% OF TOTAL BUDGET SPENT IN THE
4TH QUARTER 2013/2014
EXPENDITURE R %
Economic classification
Compensation to Employees
463
0.005
Goods and Services
13.54
Total
6.13%
2018/08/08

10. Transfer payment expenditure
4th quarter 2013/2014
Transfer payment expenditure
A total amount of R was spent in this quarter.
No compensation of employees was paid as compensation for this quarter was paid from the ITB “own fund” budget.
2018/08/08

11. ITB OWN FUNDS EXPENDITURE FOR FORTH QUARTER 2013 / 2014
ACTUAL FOR THE 4TH QUARTER
TOTAL BUDGETED
FOR 2013 / 2014
% OF TOTAL BUDGET SPENT IN
THE 4TH QUARTER 2013/2014
EXPENDITURE R %
Economic classification
Compensation to Employees
59.53
Goods and Services
46.27
Interest and Rent on land
46 500
24.47
Buildings and other fixed structures
47.16
Machinery, Equipment and vehicles
14.93
Software and Intangible assets
97.88
Total
44.71 %
2018/08/08

12. ITB “own funds expenditure”
4th quarter 2013/2014
ITB “own funds expenditure”
The total expenditure from ITB own funds amounted to R 28.08m for the 4th quarter.
This represent 44.71% of the total budget for the year.
R 4.19 m was spent on compensation to employees.
R m was utilised for goods and services(including rates provision)
The ITB paid rental for one satellite office amounting R for this quarter.
R 1.3 m was spent on capital expenditure for this quarter.
2018/08/08

13. ACTUAL SPENT – UP TO 3RD QUARTER AND 4TH QUARTER – 2013 / 2014
2013/14
Final budget
Spending end Q3
% spent
Spending for Q4
Total spending
Under / (over) spending
Economic classification
COMPENSATION OF EMPLOYEES
15,000,345
10,407,086
69.4%
4,198,970
-66.7%
14,606,056
394,289
2.70%
GOODS AND SERVICES
57,110,850
67,138,282
117.6%
23,392,777
-154.5%
90,531,059
(33,420,209)
-36.92%
INTEREST AND RENT ON LAND
190,000
135,000
71.1%
46,500
-66.4%
181,500
8,500
4.68%
BUILDINGS & OTHER FIXED STRUCTURES
750,000
1,945,892
259.5%
613,040
-330.1%
2,558,932
(1,808,932)
-70.69%
MACHINERY AND EQUIPMENT
4,050,000
3,499,252
86.4%
522,572
-85.7%
4,021,824
28,176
0.70%
SOFTWARE & INTANGIBLE ASSETS
200,000 -
0.0%
195,760
2.2%
4,240
2.17%
Total
77,301,195
83,125,512
28,969,619
112,095,131
(34,793,936)
Programme:
Land Administration
 2.70%
 -36.92%
 4.68%
BUILDINGS & OTHER FIX STRUCTURES
 -70.69%
 .70%
 2.17%
2018/08/08

14. Total consolidated expenditure for the year ended 31 March 2014
The Total expenditure for the year excluding depreciation amounted to
R 112, 095 m.
There was an overall overspending of R 34.7 m because of the increase in the rates provision which was previously recorded as a contingent liability in 2012/2013.
The Trust spent R 14,6 m on compensation to 55 employees for the year.
R6.7 m was spent on capital expenditure for the year.
The Trust utilised the R m transfer payment received from the department on goods and services and compensation to employees.
2018/08/08

15. CONSOLIDATED INCOME FOR FIRST QUARTER 2014 / 2015
INCOME FOR THE 1st QUARTER
TOTAL BUDGETED INCOME FOR 2014/2015
% OF INCOME IN
1st QUARTER
Revenue R %
Net Rental Revenue
81.47
Servitudes and other
12 561
Interest Income
25.92
Reserves
Transfer payment
38.97%
Total Revenue
34.74%
2018/08/08

16. The Trust generated R 21.78m for the 1st quarter of 2014/2015.
Consolidated Income
The Trust generated R 21.78m for the 1st quarter of 2014/2015.
This constitutes % of the total budgeted income for the year.
2018/08/08

17. ITB OWN FUNDS EXPENDITURE FOR FIRST QUARTER 2014 / 2015
ACTUAL FOR THE 1ST QUARTER
TOTAL BUDGETED
FOR 2014 / 2015
% OF ACTUAL IN
1ST QUARTER 2014/2015
EXPENDITURE R %
Economic classification
Compensation to Employees
1.72
Goods and Services
4.93
Interest and Rent on land
49 500
24.75
Buildings and other fixed structures
24.65
Machinery, Equipment and vehicles
14.49
Software and Intangible assets
Total
5.46%
2018/08/08

18. ITB TRANSFER PAYMENT EXPENDITURE FOR FIRST QUARTER 2014 / 2015
ACTUAL FOR THE 1ST QUARTER
TOTAL BUDGETED
FOR 2014 / 2015
% OF ACTUAL IN
1ST QUARTER 2014/2015
EXPENDITURE R %
Economic classification
Compensation to Employees
44.68
Goods and Services
21.72
Total
34.11%
2018/08/08

19. BUDGET SPEND 1ST QUARTER 2014/15
Current budget
Spending end Q1
Under / (over) spending
% spent
Economic classification
COMPENSATION OF EMPLOYEES
16,717,000
4,300,981
12,416,019
25.7%
GOODS AND SERVICES
40,785,000
3,345,995
37,439,005
8.2%
INTEREST AND RENT ON LAND
200,000
49,500
150,500
24.8%
BUILDINGS & OTHER FIXED STRUCTURES
3,000,000
739,436
2,260,564
24.6%
MACHINERY AND EQUIPMENT
1,500,000
217,358
1,282,642
14.5%
SOFTWARE & INTANGIBLE ASSETS
500,000 -
0.0%
Total
62,702,000
8,653,271
54,048,729
  %
1. Programme : Land Administration
BUILDINGS & OTHER FIX STRUCTURES
2018/08/08

20. Consolidated expenditure
1st quarter 2014/2015
Consolidated expenditure
The total amount spent in the first quarter amounted to
R 8.6m .This represents 13.8% of the total budget for
the year
R 4.3 m was spent on compensation of employees.
R 3.3 m was utilised on goods and services
R was spent on capital expenditure for the quarter.
The Trust paid R for one satellite office leased in Ulundi.
2018/08/08

21. STRATEGIC PERFORMANCE - FORTH QUARTER REPORT 2013/14
PERFORMANCE INDICATOR
REPORTING PERIOD
ANNUAL TARGET
4TH QUARTER TARGET
4TH QUARTER ACTUAL
Number of tenure by the Board and signed by both parties
QUARTERLY
1601
401
283
Number of land management projects identified and implemented 4 2 1
Land Holding Register maintained on quarterly basis
Number of TC workshops held on land management issues 33 8
2018/08/08

22. STRATEGIC PERFORMANCE - FIRST QUARTER REPORT 2014/15
PERFORMANCE INDICATOR
REPORTING PERIOD
ANNUAL TARGET
1ST QUARTER TARGET
1ST QUARTER ACTUAL
Number of tenure rights granted by the Board and signed by both parties
QUARTERLY
1200
300
370
Number of land management projects identified and implemented 5 1
Land Holding Register maintained on daily basis 4
Number of TC workshops held on land management issues 43 10 9
2018/08/08

23. HUMAN RESOURCES PERIOD TOTAL NO. APPROVED POSTS PER ORGANOGRAM
NO. OF FILLED POSTS
NO. OF VACANT POSTS
NO.OF POSTS ADDITIONAL TO THE ESTABLISHMEN
TOTAL FILLED POSTS
AS AT 31 MARCH 2014 27 25 02 30 55
AS AT 30 JUNE 2014
2018/08/08

24. BOARD MEETINGS FOR THE YEAR ENDED 31 MARCH 2014
2018/08/08

25. 2014 / 2015 MEETINGS - 1ST QUARTER ACCOUNTING AUTHORITY MEETINGS
EXCO
BOARD
09 April 2014
09 May 2014
20 June 2014
28 May 2014
16 July 2014
04 June 2014
07 July 2014
2018/08/08

26. PAYMENT OF EDUCATIONAL AWARDS - 1st Quarter 2014/2015
Awarded For :-
Marketing Management
Accounting Diploma
Financial Information System
Information and Communication Technology
Electrical Engineering
BSC Chemistry
Bachelor of Education
BSC Foundation
Human Movements Science
Bachelor of Arts
Bachelor of Commerce
Tourism
Civil Engineering
Correctional Studies
B Rad
Agricultural Management
Transportation Management
BSC Consumer Science
Business of Administration
B SC Computer Science
LLB
Nursing Science
Total amount disbursed to TC’s for educational awards is R
2018/08/08

27. EDUCATIONAL AWARDS 2013/14
2018/08/08

28. EDUCATIONAL AWARDS 2013/14 (CONT..)
Umkhanyakhude District Municipality
QUALIFICATION IN ARTS
QUALIFICATION IN EDUCATION
QUALIFICATION IN SCIENCE
QUALIFICATION IN COMMERCE & LAW
QUALIFICATION IN ADMINISTRATION
INSTITUTIONS
Female
Male
Total fees
UNIVERSITY OF ZULULAND 3 2 R 5 11 R 1 R
R 6 000
DURBAN UNIVERSITY OF TECHNOLOGY R
MANGOSUTHU UNIVERSITY OF TECHNOLOGY
UNIVERSITY OF JOHANNESBURG
UNIVERSITY OF KWAZULU-NATAL
GRAND TOTAL R R
The Total Amount disbursed for educational awards in Umkhayakude district
Municipality is R 258,000.00
2018/08/08

29. Thank You
2018/08/08