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CONTENTS

1. Background

2. Mandate

3. Financial Report 3rd Quarter

4. Performance Report 3rd Quarter

5. Projects Report

6. Educational Awards

7. Human Resources

8. Accounting Authority Meetings

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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.

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VISION, MISSION AND MANDATE

VISION To become 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. To develop progressive business models for the social and economic upliftment and the empowerment of the members of traditional communities on land administered by the Trust.

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MANDATE The Ingonyama Trust Board obtains its legislative mandate as follows: Ingonyama Trust Act, 1994 (Act No. 3 KZ of 1994) as amended by Act 9 of 1997 The Ingonyama Trust was established in 1994 by the KwaZulu Ingonyama Trust Act, (Act No 3 of 1994) to hold the land in title for “the benefit, material welfare and social well-being of the members of the tribes and communities” living on the land. The Act was subsequently amended by the KwaZulu - Natal Ingonyama Trust Amendment Act No 9 of 1997. The Ingonyama Trust Act places emphasis on the property clause as per section 25 of the Constitution and gives a stronger mandate for the Board to protect the land and ensure the benefit of communities from the proceeds of the land. Section 2 (2) of the Ingonyama Trust Act establishes the framework for the administration of the land for the benefit of communities. Section 2 (5) of the Ingonyama Trust Act establishes the framework in which land rights are to be granted and at the same time protecting trust land.

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VALUES

Service Excellence

Transparency

Integrity

Consultation

Open Communication

Value for Money

Professionalism

Honesty

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FUNDING MODEL

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INGONYAMA TRUST BOARD

1. TRANSFER PAYMENT FROM THE DEPARTMENT OF RURAL

DEVELOPMENT AND LAND REFORM

2. SELF GENERATED INCOME:

- LEASE INCOME

- INVESTMENTS- INTEREST INCOME

- SERVITUDES

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 self – generated funds

The ITB’s self generated funds consist mainly of lease income, investment

income and compensation from servitudes.

The ITB uses its self generated funds as the Transfer payment received from

the department is not sufficient to defray the total expenditure of the Trust.

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ITB SELF GENERATED FUNDS 3RD QUARTER EXPENDITURE 2014/2015

ACTUAL FOR 3RD QUARTER

TOTAL BUDGETED FOR 2014/2015

% OF ACTUAL IN 3RD QUARTER

2014/2015

EXPENDITURE R R %

ECONOMIC CLASSIFICATION

Compensation of employees 1 711 281 7 090 080 24.13%

Goods and Services 3 336 863 33 105 584 10.08%

Interest and Rent on land 82 500 200 000 41.25%

Buildings and other fixed structures 50 262 2 600 000 1.93%

Machinery, Equipment and vehicles 418 144 1 500 000 27.88%

Software and Intangible assets 468 331 900 000 52.03%

TOTAL 6 067 381 45 395 644 13.37%

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NOTES ON 3RD QUARTER SELF GENERATED EXPENDITURE

• The total amount spent for the third quarter amounted to R 6.07 m .This represents 13.37% of the total budget for the year

• R 1.7 m was spent on compensation of employees.

• R 3.3 m was utilised on goods and services • R 936 737 was spent on capital expenditure for

the quarter. • The Trust paid R 82 500 for one satellite office

leased in Ulundi.

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SELF GENERATED FUNDS – GOODS AND SERVICES

ACCOUNT NAME ACTUAL OCT – DEC 2014

Legal fees 386 013

Staff training 139 453

Land Tenure Information System 4 304

Advertising and public awareness campaign 7 584

Bank charges 17 141

Cleaning and repairs 120 574

Payments to tribal authorities 1 489 455

Cultural events 177 281

Workshops and roadshows 30 317

HRM and Communication Strategy 68 600

Motor Vehicle Expenses 14 916

Stationery and printing 30 613

Travel, Accommodation, Meetings 281 311

Board Members’ Remuneration 498 135

Electricity and water 62 177

Telephone 8 989 3 336 863

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ITB TRANSFER PAYMENT 3RD QUARTER EXPENDITURE 2014/2015

ACTUAL FOR 3RD

QUARTER

TOTAL BUDGETED FOR

2014/2015

% OF ACTUAL IN 3RD QUARTER

2014/2015

EXPENDITURE R R %

ECONOMIC CLASSIFICATION

Compensation of employees 2 789 646 10 799 001 25.83%

Goods and Services 2 140 552 6 507 335 32.89%

TOTAL 4 930 198 17 306 336 29.49%

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TRANSFER PAYMENT – GOODS AND SERVICES

ACCOUNT NAME ACTUAL OCT – DEC 2014

Insurance 80 212

Motor Vehicle Expenses 26 327

External Audit Fees 445 849

External Audit Committee Members’ Rem 1 706

Bank charges 37

Board Members’ Remuneration 256 793

Cleaning and repairs 98 826

Stationery and printing 72 032

Travel, Accommodation, Meetings 800 388

Electricity and water 110 883

Security Expenses 175 781

Telephone 71 714

2 140 552 2015/03/13 13

BUDGET SPEND 3RD QUARTER 2014/2015 2014/15

CURRENT

BUDGET SPENDING END

QUARTER 3

UNDER/OVER SPENDING % SPENT

R R %

ECONOMIC CLASSIFICATION

Compensation of employees 17,889,080 12,590,024 5,299,056 70.38%

GOODS AND SERVICES 39,612,920 13,147,005 26,465,914 33.19%

INTEREST AND RENT ON LAND 200,000 148,500 51,500 74.25%

BUILDINGS & OTHER FIXED STRUCTURES 2,600,000 789,699 1,810,301 30.37%

MACHINERY AND EQUIPMENT 1,500,000 744,924 755,076 49.66%

SOFTWARE & INTANGIBLE ASSETS 900,000 468,331 431,669 52.04%

Total 62,702,000 27,888,483 34,813,517 44.48%

1. Programme : Land Administration

COMPENSATION OF EMPLOYEES 17,889,080 12,590,024 5,299,056 70.38%

GOODS AND SERVICES 39,612,920 13,147,005 26,465,914 33.19%

INTEREST AND RENT ON LAND 200,000 148,500 51,500 74.25%

BUILDINGS & OTHER FIX STRUCTURES 2,600,000 789,699 1,810,301 30.37%

MACHINERY AND EQUIPMENT 1,500,000 744,924 755,076 49.66%

SOFTWARE & INTANGIBLE ASSETS 900,000 468,331 431,669 52.04%

Total 62,702,000 27,888,483 34,813,517 44.48%

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ACCUMULATED CONSOLIDATED EXPENDITURE TO 31 DECEMBER 2014

• The total amount spent up to the end of the third quarter amounted to R 27.9 m .This represents 44.48 % of the total budget for the year.

• R 12.6 m was spent on compensation of employees.

• R 13.1 m was utilized on goods and services • R 2.0 m was spent on capital expenditure for the

quarter. • The Trust paid R 148 500.00 for one satellite

office leased in Ulundi.

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GRAPH ON CONSOLIDATED EXPENDITURE

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Compensation of employees 45%

GOODS AND SERVICES 47%

INTEREST AND RENT ON LAND 1%

BUILDINGS & OTHER FIXED STRUCTURES

3%

MACHINERY AND EQUIPMENT

2.5%

SOFTWARE & INTANGIBLE ASSETS

1.5%

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Consolidated Budget vs Actual Budget

0

5 000 000

10 000 000

15 000 000

20 000 000

25 000 000

30 000 000

35 000 000

40 000 000

Compensation ofemployees

GOODS ANDSERVICES

INTEREST ANDRENT ON LAND

BUILDINGS &OTHER FIXEDSTRUCTURES

MACHINERY ANDEQUIPMENT

SOFTWARE &INTANGIBLE

ASSETS

Series1 17 889 080 39 612 920 200 000 2 600 000 1 500 000 900 000

Series2 12 590 024 13 147 005 148 500 789 699 744 924 468 331

R

ITB CONSOLIDATED INCOME 3RD QUARTER 2014/2015

INCOME FOR 3RD QUARTER

TOTAL BUDGETED INCOME FOR

2014/2015

% OF INCOME IN 3RD QUARTER

REVENUE R R %

Net Rental Revenue 2 084 829 15 339 618 13.59%

Servitudes and other 105 000 12 561 0

Interest Income 2 797 345 9 823 678 28.47%

Reserves 0 20 232 144 0

Transfer payment 3 814 000 17 294 000 22.05%

Total Revenue 8 801 174 62 702 000 14.03%

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NOTES ON 3RD QUARTER CONSOLIDATED INCOME

• The total revenue generated for the 3RD Quarter amounted to R 8,8m .

• This represented 14.03 % of the total budget for the year.

• R 3,81m was received for the 3rd quarter of 2014/2015

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GRAPH ON CONSOLIDATED INCOME

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-

500 000.00

1 000 000.00

1 500 000.00

2 000 000.00

2 500 000.00

3 000 000.00

3 500 000.00

4 000 000.00

Net Rental Revenue Servitudes and other Interest Income Reserves Transfer Payment

2 084 829.00

105 000.00

2 797 345.00

-

3 814 000.00

Axis Title

Net Rental Revenue

Servitudes and other

Interest Income

Reserves

Transfer Payment

STRATEGIC PLAN PERFORMANCE INFORMATION 3RD QUARTER 2014/15

PERFORMANCE INDICATOR

REPORTING PERIOD

ANNUAL TARGET

3RD QUARTER TARGER

3RD QUARTER ACTUAL

VARIANCE

Number of tenure rights granted by the Board and signed by both parties

QUARTERLY 1200 300 262 -38

Number of land management projects identified and implemented

QUARTERLY 5 1 0 -1

Land Holding Register maintained on daily basis

QUARTERLY 4 1 1 No variance – The task was completed

Number of TC workshops held on land management issues

QUARTERLY 43 11 6 -5

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REMEDIAL ACTION FOR VARIANCES

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The following comments are made in respect of the Key Performance Indicators for the third quarter 2014/2015.

Number of tenure rights granted by the Board and signed by both parties The shortfall of 38 tenure rights was due to a number of factors including but not limited to ineffective postal service as a result of the postal service strike, 80 leases in respect of Department of Public Works were approved by the Board but not yet returned to the ITB during this quarter.

The remedial action plan in place is to conclude the signing of 210 leases in the Uthungulu region and the 80 leases with the Department of Public Works.

Number of land management projects approved by the Board

There was a shortfall of 3 land management related projects .

There were three projects that were identified and under discussion, however could not be finalised before the end of the third quarter.

The approval to commence with these was done in January 2015 for Enyokeni Cultural Precinct Development, Mpophomeni Land audit and layout plan development and Newcastle Land audit Project

The project details are discussed in the slides below.

MPOPHOMENI AREA

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PROJECT NARRATIVE Purpose: The purpose of the project is to implement control mechanism in managing land that is managed by Ingonyama Trust in the Mpophomeni area Background: The land is described as Rem of Rietvallei No. 1043 situated along P135 road to Bulwer. The land is the remnant of the process of transferring Mpophomeni Township to Umngeni Municipality in terms of Proclamation R293. The land does not fall under any Traditional Council and therefore administered directly by the Ingonyama Trust Board. Invariably the land has been invaded by the local community and legal action has been taken to discourage further land invasion. In order to effectively manage the land the following activities had to be undertaken: Land audit of the area to establish who occupies the land, what is the land used for and what type of land right is envisaged Development of a layout plan indicating current land use patterns and alignment thereof to the proposed layout Benefit: The following benefits will be derived from the project: Establishment and identification of land that is occupied and land that is not occupied. Establishment of who occupies the land so as to formalize such occupants Produce a layout plan that will provide for public infrastructure development and for organized land allocation for residential purposes.

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NEWCASTLE AREA

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PROJECT NARRATIVE Project: Drycut Farm - Madadeni Purpose: The purpose of the project is to implement control mechanism in managing land that is managed by Ingonyama Trust in Madadeni Backgound: Background: The land is described as Rem of Dry Cut situated along Madadeni and Osizweni Road. The land is the remnant of the process of transferring Madadeni and Osizweni Township to the Newcastle Municipality in terms of Proclamation R293. The land falls under Ubuhlebomzinyathi Traditional Council. The land has been invaded by the local community and legal action has been taken to discourage further land invasion. In order to effectively manage the land the following activities had to be undertaken: Conduct land audit of the area to establish who occupies the land, what is the land used for and what type of land right is envisaged Development of a layout plan indicating current land use patterns and alignment thereof to the proposed layout Benefit: The following benefits will be derived from the project: Establishment and identification of land that is occupied and land that is not occupied. Establishment of who occupies the land so as to formalize such occupants Produce a layout plan that will provide for public infrastructure development and for organized land allocation for residential purposes Budgeted Cost: R550 000

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ENYOKENI

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PROJECT NARRATIVE

Project: Enyokeni Precinct Development Plan Purpose: To prepare a themed plan over a minimum of 3 phases being the pre-feasibility, feasibility and implementation of the project to be known as Enyokeni Cultural Precinct in Nongoma. The objective is to establish the area as a cultural, conservation and a tourism development node. The Board as the land owner is commissioning the first 2 phases of the project to facilitate the implementation of the project by the respective stakeholders once approved by the Board. Background: Enyokeni Palace is currently the venue of an annual Reed Dance event. Due to this, the Provincial Government and Local Government is already constructing a number of public infrastructure in the area. The area is strategically located between Nongoma and Ulundi which are established small towns. It is an area that is occupied by a poverty stricken community of the uSuthu Tribe. Economic activity in the area peaks only when the Reed Dance event takes place however this is not sufficient to sustain the livelihoods of the local community. The development of the area is critical in ensuring that the Nongoma area is entrenched as a seat of Zulu culture in the Province. This will invariably result in similarly themed but complementing developments being implemented in the area. Milestones of the project entail the following: Desk top pre -feasibility study and producing a report Appointment of a professional team Conducting of feasibility study Reporting and attainment of approval Benefit: The following benefits will be derived from the project: Facilitation of development of the area Ultimate upliftment of the local community

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EDUCATIONAL AWARDS

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MALES FEMALES TOTAL

31 20 51

FIELDS OF STUDY

Nursing

Bachelor of Science - Agriculture

Bachelor of Arts

Medicine Bachelor of Commerce Accounting

Bachelor of Law

Bachelor of Education

Tourism

Public Relations

TOTAL AMOUNT DISBURSED

R 306 000.00

HUMAN RESOURCES

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POST NUMBER VACANT FILLED

Permanent 27 2 25

Contract 31 - 31

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3rd QUARTER ACCOUNTING AUTHORITY MEETINGS

EXCO

BOARD TENURE COMMITTEE

01 October 2014 24 October 2014 10 October 2014

05 November 2014 03 December 2014 07 November 2014

18 November 2014 12 December 2014 05 December 2014

10 December 2014

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