1. 4/5 March 2015
Briefing: Annual Performance Plan Portfolio Committee of the Department of Agriculture, Forestry and Fisheries (DAFF)

2. 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.

3. Agenda 1. Audit of Predetermined Objectives
Review of Annual Performance Plan
Budget

4. AUDIT OF PREDETERMINED OBJECTIVES

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

6. 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

7. Audit of Predetermined Objectives
AGSA Audit process
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

8. Audit of Predetermined Objectives
Audit Outcomes of 2013/14
Compliance with regulatory requirements
Existence
Timeliness
Usefulness
Presentation
Measurability
Relevance
Consistency
Reliability
Validity
Accuracy
Completeness
Additional matter paragraphs included in the audit report: > Material adjustments were made to the annual performance report submitted for audit.
No matters reported
Reported in audit report

9. REVIEW OF ANNUAL PERFORMANCE PLAN 2015-16

10. Annual Performance Plan 2015-16
Usefulness 2015/16 APP
Performance information must be presented using the National Treasury Annual reporting guidelines. Actual performance information in tables and narrative in annual report must be consistent. Reasons for major variances between planned and actual performance must be explained and should be supported by corroborating evidence.
Requirement
Presentation
Conclusion
Can only conclude once the Annual Performance Report is made available on 31 May 2015.
Requirement
Objectives, indicators and targets must be consistent between planning and reporting documents.
Consistency
Conclusion
Can only conclude once the Annual Performance Report is made available on 31 May 2015.
Indicators should be well-defined and verifiable. Targets should be specific, measurable and time-bound.
Requirement
Measurability
Conclusion
Findings identified on Programme 3 and Programme 5 amd Programme 6 summarised per programme on the next slide.
The indicators relate logically and directly to an aspect of the institution's mandate, and the realisation of strategic goals and objectives
Requirement
Relevance
Conclusion
No material findings to be reported.

11. Annual Performance Plan 2015-16
Programme 3:
Food Security and Agrarian Reform
13% of targets not measurable
13% of indicators not verifiable
Strategic objective
Indicator
2015/16 Target
“SMART” criteria affected
Lead and coordinate government food security initiatives.
Number of hectares of under-utilised land in communal areas cultivated for production.
120 000 ha
 Annexure E:
“A 30% data sample will be collected from each province at the end of the planting season…”
Measurable / Indicator not verifiable
Annexure E state that information will only be verified on a 30% sample basis by the department. The total population will therefore not be measurable or verifiable.

12. Programme 5 (Continues) “SMART” criteria affected
Annual Performance Plan
Programme 5 (Continues)
Forestry and Natural Resource Management
Strategic objective
Indicator
2015/16 Target
“SMART” criteria affected
Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resources.
Number of plantations certified for Forest Stewardship Council. 1
Annexure E:
Source: Service provider to evaluate data against agreed external standards.
Specific and Measurable / Indicator not verifiable
Annexure E does not specify the specific data that will be collected from the service provider.

13. Annual Performance Plan 2015-16
Programme 6:
Fisheries : Marine Living Resource Fund
11% of targets not specific
33% of indicators not well defined
Strategic objective
Indicator
2015/16 Target
“SMART” criteria affected
Strategic goal 2:
Enhanced production, employment and economic growth in the sector
Objective 2.1:
Ensure increased production and productivity in prioritised areas as well as value chains
Number of Aquaculture catalyst projects identified and listed under Operation Phakisa supported
4 Operation Phakisa
Projects for phase 1
supported
Measurable / Indicator not well defined
The indicator per the annual performance plan, read in conjunction with the target does not define the type of support that is required in order to achieve the objective.

14. “SMART” criteria affected
Annual Performance Plan
Programme 6:
Fisheries : Marine Living Resource Fund (continues)
Strategic objective
Indicator
2015/16 Target
“SMART” criteria affected
Strategic goal 3:
Enabling environment for food security and sector transformation
Objective 3.1:
Lead and coordinate government food security initiatives
Rights allocated to 9 sectors
Develop sector specific
policies and allocate rights
to 9 fishing sectors
Measurable / Indicator not well defined
The indicator per annual performance report, read in conjunction with the target is not clear. Based on our assessment the indicator should measure compliance and or achievement on the FRAP framework.

15. “SMART” criteria affected
Annual Performance Plan
Programme 6:
Fisheries : Marine Living Resource Fund (continues)
Strategic objective
Indicator
2015/16 Target
“SMART” criteria affected
Strategic goal 4:
Sustainable use of natural resources in the sector
Objective 4.1:
Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resources
Objective
Integrated Fisheries Security (IFSS) implemented through inspections and joint operations with partners
Plan to recover and maintain prioritised fish stocks
Recovery
plans for the
3 sectors:
Abalone, West
Coast Rock
Lobster and
Deep Water
Hake updated
4598 compliance and enforcement measures in the 4 prioritised fisheries sectors: hake, abalone, rock lobster and line fish implemented
Measurable / Indicator not well defined
The indicator per the annual performance plan, read in conjunction with the target is not well-defined as the indicator should measure achievement of the plan.
Target not specific
The target is not specific as enforcement measures are not defined.

16. “SMART” criteria affected
Annual Performance Plan
Programme 6:
Fisheries : Marine Living Resource Fund (continues)
Strategic objective
Indicator
2015/16 Target
“SMART” criteria affected
Strategic goal 4:
Sustainable use of natural resources in the sector
Objective 4.1:
Ensure the conservation, protection, rehabilitation and recovery of depleted and degraded natural resources
Plan to recover and maintain prioritised fish stocks
Recovery
plans for the
3 sectors:
Abalone, West
Coast Rock
Lobster and
Deep Water
Hake updated
Measurable / Indicator not verifiable
The indicator per the annual performance plan, read in conjunction with the target is not well-defined as the indicator should measure achievement of the plan.

17. Annual Performance Plan 2015-16
MTSF Outcomes not fully reported in the APP where DAFF was allocated as the
lead department:
Outcome 4: Decent employment through inclusive economic growth
Indicator (MTSF)
First year target (MTSF)
Target included in final draft APP
Comments
Development of smallholder production in context of improved district planning and link to land reform, extension, marketing and other systems.
[DAFF supported by DRDLR, EDD, DTI, NT and DST]
Number of small-scale producers (agriculture, forestry and fisheries) supported towards increased market participation and employment Implementation of proposals monitored by DAFF and NT.
2019 target:
300 000 new smallholders
Programme 4:
I498
smallholders
linked
to markets
Based on discussion with the directorate Strategic Planning the term smallholder producers include agriculture, forestry and fisheries.
However, the 5 year target listed [1498] do not agree with the annual target listed [ =498 and not 1498 (typing error)]. Also unable to establish whether the 2019 target of 300 000 new smallholders will be met due to a breakdown per department not being available.

18. First year target (MTSF) Target included in final draft APP
Annual Performance Plan
Outcome 7: Vibrant, equitable, sustainable rural communities contributing towards food security for all
Indicator (MTSF)
First year target (MTSF)
Target included in final draft APP
Comments
Implement the comprehensive food security and nutrition strategy.
[DAFF supported by DRDLR, DSD, DBE and DoH]
4,3 million vulnerable people benefiting from food security and nutrition initiatives, translating to 1,6 million households by March 2019
Programme 3:
Number of households benefiting from food and nutrition security initiatives
40 000 per annum
DAFF is contributing to 200 000 households as per the APP. It is not sure how the target of 4.3 million people and 1.6 million households will be achieved .
Based on discussions held with the Strategic Planning directorate and per inspection of the MTSF outcome other departments are supporting DAFF to achieve the 2019 target however a breakdown of how the 4.3 million and 1.6 million targets will be achieved was not available.
Develop under-utilised land in communal areas and land reform projects for production.
1 million hectares by March 2019
Number of hectares of under-utilised land in communal areas cultivated for production.
120 000 ha per annum
DAFF is contributing to 600 000 hectares as per the APP. It is not sure how the target of 1 million hectares will be achieved.
Based on discussions held with the Strategic Planning directorate and per inspection of the MTSF outcome other departments are supporting DAFF to achieve the 2019 target however a breakdown of how the 1 million target will be achieved was not available.

19. First year target (MTSF) Target included in final draft APP
Annual Performance Plan
Outcome 10: Protect and Enhance our Environmental Assets and Natural Resources
Indicator (MTSF)
First year target (MTSF)
Target included in final draft APP
Comments
Hectares of land under rehabilitation/restoration ha ha
The indicator is included in Programme 5: Forestry but the target set is set at 80 000 ha and not 152 500 ha.

20. BUDGET

21. Comparison between current year and prior year budget5% 2%
13%
33% 2%
20% 4%
% Budget increase % %

22. Current payments Compensation of employees 1 698,40 1 737,80 39,40
R’000
Number of employees
Increase / (Decrease)
Percentage
Compensation of employees
1 698,40
1 737,80
39,40
2.3%
Programme 1
381,70
391,81
1 203
Programme 2
409,00
423,80
1 510 1
Programme 3
129,50
134,30
472
Programme 4
91,41
91,20
170
Programme 5
510,40
512,10
2 580
Programme 6
176,35
184,64
552
Goods and services
809,50
847,00
37,50
5.0%
Total
2 507,90
2 584,80
76,90
3.1%

23. Transfer and subsidies
Transfers and subsidies
Transfer and subsidies
R’000
Increase / (Decrease)
Percentage
Provinces and Municipalities (breakdown on next slide)
2 390,10
2 189,20
(200,90)
(8.4%)
Department agencies and accounts
(breakdown on next slide)
1 354,60
1 132,50
(222,10)
(16.4%)
High education institution
7,00
7,80
0,80
11.4%
Foreign government and International Organisations
38,70
29,50
(9,20)
-24%
Public Corporation and Private Enterprises
222,00
312,90
90,90
41%
Non Profit Institutions
26,80
26,70
(0,1)
(0.4%)
Households
8,40
1,90
(6,50)
(77.1%)
Total
4 047,70
3 700,50
(347,20)
(8.7%)

24. Transfers and subsidies
Provinces and Municipalities - Breakdown
R’000
Municipalities
Municipal Bank Account
Licences
0,53
0,48
Forestry Arbor City Awards
0,50
0,60
Provinces
Provincial Revenue Fund
Current
Illima/Letsema project fund
460,63
470,77
CASP: Infrastructure
949,59
1 179,01
CASP: Extension Recovery Plans
358,55
343,87
CASP: Upgrading of Provincial Agrucultural Colleges
58,77
69,47
Land Care Programme Grant: Poverty Relief and Infrastructure Development
67,84
66,36
CASP: Flood damaged infrastructure
493,76
58,60
Total
2 390,10
2 189,20

25. Transfers and subsidies
Department agencies and accounts
- Breakdown
R’000
Communication
0,04
0,03
Primary Education Sector Education and Training Authority
0,90
0,94
National Research Foundation
15,00
15,84
Public Service Sector Education and Training Authority
0,37 -
Fibre Processing and Manufacturing Sector Education and Training Authority
0,45
0,43
Agricultural Research Council - current
921,46
691,28
Agricultural Research Council - capital
107,70
112,64
National Student Financial Aid Scheme
15,93
14,50
PPECB
0,60
National Agricultural Marketing Council
36,01
34,64
Small Enterprise Development Agency
1,83
Water Research Commision
3,00
Marine Living Research Fund
251,33
258,62
Total
1 354,60
1 132,50

26. Payment of capital goods
R’000
Increase / (Decrease)
Percentage
Building and other Fixed Structures
41,30
42,50
1,20 3%
Machinery and Equipment
93,90
53,20
(40,90)
(43.34%)
Biological Assets
0,20
0,50
0,30
150%
Software and other Intangible Assets
0,10
0,00
(0,10) --
Total
135,40
96,20
(39,20)
(29%)

27. Thank You.