Western Cape Department of Agriculture MEC JJ Dowry

1
Western Cape Department of AgricultureMEC JJ
Dowry

• 11 February 2008

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Departmental Expenditure
Description 2005/06 R000 Actual 2006/07 R000 Actual 2007/08 R000 Adjusted Budget
Equitable Share 174 353 212 610 240 623
Conditional Grants 67 979 34 706 75 974
Own Revenue 16 183 19 311 14 963
TOTAL 258 515 266 627 331 560
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Expenditure per Programme
Programme 2005/06 R000 Actual 2006/07 R000 Actual 2007/08 R000 Adjusted Budget
Administration 34 514 39 117 53 671
Sustainable Resource Management 48 302 44 122 74 357
Farmer Support and Development 72 396 71 820 84 729
Veterinary Services 25 656 27 891 34 079
Technology Research and Development 50 513 49 336 52 482
Agricultural Economics 7 571 8 375 6 649
Structured Agricultural Training 19 581 25 966 25 593
TOTAL 258 515 266 627 331 560
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Expenditure per Economical Classification
Description 2006/07 R000 Actual 2007/08 R000 Adjusted Budget
Current Payments 212 671 240 206
Transfers Other 35 229 72 791
Transfers Capital 4 957 500
Capital Payments 13 770 18 063
TOTAL 266 627 331 560
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Conditional Grants
Grant 2006/07 Budget R000 2006/07 Actual R000 2007/08 Adjusted Budget R000
PIG 3 000 3 000 0
LandCare 3 730 3 480 3 317
CASP 20 648 20 644 33 426
Drought Relief 10 199 7 582 20 000
Floods 33 000 0 10 000
Hail 0 0 9 231
TOTAL 70 577 34 706 75 974
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CASP

• Purpose
• To provide post settlement support to targeted
  beneficiaries of mainly land reform and other
  producers who have acquired land through private
  means

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CASP 2006/07

• Budget R20,648 million
• Spent R20,644 million (unspent R4 000)
• 143 Projects (61 LRAD SLAG)
• 5 765 Beneficiaries
• 461 Youth
• 3 459 Women
• Mainly fruit and vegetables

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CASP 2007/08

• Budget R33,426 million
• Actual Spending to 31 Dec 2007 R14,822 million
• 107 projects ( 46 LRAD SLAG)
• 53 Food Security projects
• 5 390 Beneficiaries
• 3 868 Women and Youth

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CASP 2007/08 (cont.)
1st Quarter R000 Actual 2nd Quarter R000 Actual 3rd Quarter R000 Actual 4th Quarter R000 Projected
2 609 3 852 8 361 18 604
January 2008 R3,317million
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LandCare

• Purpose
• Through sustainable resource management, improve
  and develop the livelihoods of individuals and
  communities through integrated governmental and
  community based partnerships

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LandCare 2006/07

• Budget R3,115 million plus R615 000 roll over
• Spent R3,480 million (under spent by R250 000)
• 25 projects (junior LandCare and alien clearing)
• 481 beneficiaries (jobs in alien clearing) 34 430
  person days
• 162 women
• 2 950 youth (Junior LandCare) attended camps
• 13 500 youth attended Junior LandCare puppet
  shows

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LandCare 2007/08

• Adjusted Budget R3,317 million
• Actual Spending to 31 Dec 2007 R1,512 million
• 32 projects (Junior LandCare, alien clearing)
• 769 beneficiaries (jobs) or 28 398 person days
• 140 women
• 5 150 youth (Junior LandCare) attended camps
• 9 300 youth attended Junior LandCare puppet
• shows

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LandCare 2007/08
1st Quarter R000 Actual 2nd Quarter R000 Actual 3rd Quarter R000 Actual 4th Quarter R000 Projected
287 482 1 183 1 805
January 2008 R0,163million
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Challenges

• Time constraints linked to staffing
• Legal issues within groups (contracts, legal
  entities not functioning, conflict)
• Serious cash flow problems and debts
• LRAD programme take 35 40 of FSD
• Sleeping partners tail wagging the dog
• Reallocation of funds - R 3.2 million due to
  selling off farms and Bank legal processes and
  repossession of farms

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Challenges (cont.)

• Alignment issues (organisations, programmes and
  government grants)
• Stakeholder participation, i.e. Municipalities
  etc.
• Drought and floods delay implementation of
  projects
• Pre-settlement training of LRAD beneficiaries
• 2008/09 application process started in 2007/08
• Shortage of Engineers, Economists Subject
  Matter Specialist
• Projects are staff driven not beneficiary driven

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Challenges (cont.)

• Technical staff had to do verification of 2006
  flood damages on 550 farms
• Technical staff involved in flood repair and
  recovery work
• Abnormal high rainfall in Southern Cape and Klein
  Karoo in 2007 led to delays in project
  implementation

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Remedial Action

• Intended for next financial
• year
• N2 Corridor connected
• Started October 2006
• Started August 2007
• Regular meetings held to
• finalise joint approach

• Involvement of more NGOs and Farmer Unions
• IT Wireless connections
• LRAD Monthly meetings with DLA
• DPAC Committee
• ME DLA and PDA monitor projects

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Remedial Action (cont.)

• Comprehensive support to LRAD projects 2008/9
• Outsource Infrastructure pillar of CASP to
  Casidra
• Auditor General requirements paper trail

• Intended for next
• financial year
• Intended for next
• financial year
• Currently underway

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Drought Relief

• Purpose
• To give relief to livestock producers in
  declared drought stricken areas by supplying
  limited fodder and transport thereof

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Drought Relief Process

• Assessment of specific areas for signs of drought
• Establish a representative committee to assess
  areas
• Prepare a report for national DoA, via Provincial
  Disaster Management Unit
• After national DoA concurs that it is a disaster
  area, then DoA approaches the Presidency for a
  declaration, and then national Treasury for
  financial support
• After funds have been obtained, then a framework
  agreement is finalised and gazetted
• Administrative process then gets put in place
• Only after this, then funds can flow to the
  affected farmers

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Drought Relief 2006/07

• R10,199 million roll over
• Spent R7,582 million (under spent by R2,617
  million transferred to hail disaster in
  2007/08)
• 1 015 households benefited of which 318 were
  emerging farmers

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Drought Relief 2007/08

• Budget R20 million received in December 2007
  during the adjustment estimate
• Spent R0
• R10 million expected to be rolled over to 2008/09

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Drought Relief 2007/08
1st Quarter R000 Actual 2nd Quarter R000 Actual 3rd Quarter R000 Actual 4th Quarter R000 Projected
Not received Not received 0 10 000
January 2008 R5,87million
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Flood Relief Process

• After the flood, a team of agricultural
  engineering specialists assesses the damage
  (preliminary)
• This information is fed to the Provincial
  Disaster Management Unit, who then prepares a
  report for cabinet, which then submits this
  decision (disaster) to the Presidency for a
  disaster declaration
• After the declaration, then different national
  Departments approach national Treasury for funds
• After the funds are secured then the DoA and PDA
  agree and enter into a framework agreement
• Staff then has to assess, verify and analyse
  individual claims in terms of the framework
• And only after this verification process is
  completed, payments can be made

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Flood Relief 2006/07

• Received December 2006 (Adjustment Estimate)
• R33 million
• Unspent R33 million (Spending prescripts
  finalised
• in May 2007 only)

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Flood Relief 2007/08

• Received December 2007 (Adjustment Estimate)
• R10 million
• Spent R7,856 million (Spending prescripts
• finalised in May 2007 only)
• 182 of the total number of 550 landowners
  affected
• by the floods benefited from flood relief and
• recovery works to date

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Flood Relief 2007/08
1st Quarter R000 Actual 2nd Quarter R000 Actual 3rd Quarter R000 Actual 4th Quarter R000 Projected
Not received Not received 7 856 2,144
January 2008 R0,656million
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Hail Relief Process

• Similar to Flood process

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Hail Relief 2007/08

• Received December 2007 (Adjustment Estimate)
  R9,231 million
• Spent R3,453 million
• For period of 3 years
• 394 Beneficiaries 346 retrenched farmworkers
  re-employed and 48
• additional workers employed
• R4,2 million to be rolled over to 2008/09

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Hail Relief 2007/08
1st Quarter R000 Actual 2nd Quarter R000 Actual 3rd Quarter R000 Actual 4th Quarter R000 Projected
Not received Not received 3 453 1 578
January 2008 R1,338 million
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CAPITAL EXPENDITURE
Description 2006/2007 2006/2007 2007/2008 2007/2008
Description Budget R000 Actual R000 Adjusted Budget R000 Projected R000
Capital 13 778 13 770 18 063 18 063
Transfer Capital 5 180 4 957 500 500
TOTAL 18 958 18 727 18 563 18 563
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CAPITAL EXPENDITURE (CONT.)
1st Quarter R000 Actual 2nd Quarter R000 Actual 3rd Quarter R000 Actual 4th Quarter R000 Projected
882 1 537 2 556 13 588
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Monitoring evaluation

• Each Programme has its own ME system
• Field staff visit projects on regular basis
• FSD Programme created positions for ME officers
  only 1 was filled, but left for 3 levels higher
  in Eastern Cape
• Challenges
• Post level of ME officers
• Scarcity of skills in the specific field

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Monitoring evaluation

• Institutional Monitoring Evaluation
• Standing Committee
• Annual budget, annual report
• Appropriation budget
• General policy issues
• Parliamentary Questions
• Ministerial enquiries (Red Numbers)
• Laws that govern us and to which we must
  adhere (Strategic Plan p17-19)
• Strategic Plan, Annual Performance Plan,
  Skills development Plan, EE Plan, etc.
• Service Standards Charter

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Monitoring evaluation

• Finances
• Departmental quarterly narrative reports to
  Provincial Treasury (PT)
• Quarterly narrative reports on CASP and LandCare
  to DOA
• Quarterly compliance with PFMA report to PT
• Monthly in Year Monitoring and conditional grant
  report on financial status of Department to PT
• Monthly financial report on CASP and LandCare
  to DOA

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In answer

• Question 3
• Monthly reporting is done

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THANK YOU