1. Financial Statement 2010/11 Annual Grant and Sponsorship  The NAMC received funding of R 31 194 million during the 2010/11 financial year from the Department of Agriculture, Forestry & Fisheries.  Other and Sponsorship income amounted to R 1 451 million. The net interest generated from investments amounted to R 1 022 million. Total Income and Expenditure  The total income for the year was R 33 667 million.  Total expenditure amounted to R 34 665 million.  This resulted in deficit funding of R 998 million. (This figure included non-cash flow expenditure such as depreciation, finance charges, leave pay provision).

2. Expenditure Outcome Expenditure Categories2009/102010/11% VarianceReasons for variance R’000 Personnel15,12520,917 38%Review of salary structures effective date April 2010 and increase in staff complement from 36 - 45 Operating 3,602 3,302-8%Decrease in the number of section 7 workshop held during 2010/11. Rental: Office space 773 93921%Leasing of office space for National Re Meat project in the Eastern Cape. Professional services7,579 5,899-22%Actual expenditure incurred for STATS SA less than projected expenditure. Other Administrative3,0493,60818%Increase of fees paid to Audit Committee members, increase in Printing expenses due to number of reports and copies printed and increase in the number of staff function held during the year. Total31,12834,66511% Baseline allocation28,36031,19410% Donor Funds 2,007 1,451

3. Expenditure trends per programme Name of Programme Budget 2010/11 R’000 Actual expenditure 2010/11 R’000 Percentage variance %Reason for variance Finance & Admin 7,8597,78299%Finance & Admin budget include budgeted interest of R1,300 million. Human Resources 3,1642,99894.5% Agribusiness Development 3,6353,61999.5% Agricultural Trust 1,7443,951227%This expenditure includes expenditure for National Red Meat project financed by donor funding rolled over to the financial year 2010/11 and interest generated in the previous financial year 2009/10. Statutory Measures 1,4621,468100% MERC 10,86510,74098.8% Council 1,0981,120102% CEO 2,6672,987112% Total32,29434,665107%

4. Procurement For the period under review the NAMC advertised a tender for internal audit service, the Bid Evaluation and Adjudication committees were appointed to evaluate and adjudicate the bids and the tender was awarded to Outsourced Risk and Compliance Assessment (ORCA) for the period 2010/11 – 2012/13. The following information regarding ORCA was reported to National Treasury as per supply chain management prescripts. Percentage equity ownership by black persons based on the information furnished on the Standard Bidding Documents (SBD 6.1) 73% Percentage equity ownership by black women as per (SBD 6.1) 2.5% Percentage equity ownership by white women as per (SBD 6.1) 2.5% Total contract priceR693,120.00

5. Outcome of the audit 2010/11: Unqualified audit opinion with no emphasis of matter.