Chief Financial Officer Kra AGRICULTURAL RESEARCH COUNCIL BUSINESS PLAN FOR 2009

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Chief Financial Officer Kra AGRICULTURAL RESEARCH COUNCIL BUSINESS PLAN FOR 2009 Powered By Docstoc
					AGRICULTURAL RESEARCH
       COUNCIL

  BUSINESS PLAN FOR
     2009 TO 2010
    Dr Shadrack Moephuli
       President & CEO
                 ARC TEAM
• Ms. Jean Davidson – Chairperson (farmer)
• Prof. Michael Kahn – Chair: R & D Committee
• Mr. Hamish McBain – Chair: F & I Committee
MANAGEMENT
• Dr. Shadrack Moephuli – CEO
• Ms. Anati Canca – Exec. Director: Tech. Trans.
• Prof. Mohammed Jeenah – Exec. Director: Research
• Mr. Gabriel Maluleke – Chief Financial Officer
• Mr. Michael Netsianda – Exec. Director: HR & Corp.

                                                   2
MANDATE (OBJECTS) OF THE ARC
         AS PER ACT
 To CONDUCT RESEARCH,
 DEVELOPMENT, &,
 TECHNOLOGY TRANSFER,
 IN ORDER TO:
   Promote agriculture & industry;
   Contribute to better quality of life;
   Facilitate/ensure natural resource conservation




                                                      3
 Policy Considerations (March 2009)
• Government‟s National Priority
    • Agriculture Programme of Action
    • Strategic Plan for South African Agriculture (Sector
      Plan)
    • Land and Agriculture Reform Programme (LARP)
    • National Research & Development Strategy
    • Ten Year Plan for Science and Technology
• African Agenda (NEPAD)
  – Consolidated Science and Technology Plan of Action
  – Comprehensive African Agricultural Development Plan



                                                             4
          COUNCIL STRATEGIC REVIEW
•   Growth in agriculture – increased productivity
•   Growth in exports – innovation (products & processes)
•   Reduction in rural poverty – productivity improvements
•   Mitigation of agricultural risks
•   Business analysis – optimize performance & reduce
    duplication
•   Synergy & collaboration
•   Ratio of scientists – critical mass & optimum performance
•   Improve efficiency
•   Improve reporting controls




                                                                5
STRATEGIC CONSIDERATIONS
– Increased Focus on Basic/Fundamental
  Research
– Applied & adaptive Research
– Human Capital Development
– Technology Development & Dissemination
– Organizational Performance



                                           6
            VISION & MISSION
• VISION:
  – “Excellence in Agricultural Research and
    Development”
• MISSION:
  – “The ARC is a premier science institution that
    conducts fundamental and applied research with
    partners to generate new knowledge, develop human
    capital and foster innovation in agriculture, through
    technology development and dissemination, and
    competitive commercialization of research results, in
    support of developing a prosperous agricultural
    sector”


                                                            7
                                                                                                                                                       excellence (Internally and
                                           agricultural technologies




                                                                                                  Support for/ to resource-
                                                                       improved technologies




                                                                                                                               Competitiveness of SA
                            Strategic




                                                                        Transfer the ability to
                                                                         utilise the new and
                                              New and improved




                                                                                                                                                          sustainability and
                                                                                                                                                            Organisational
                             Thrusts




                                                                                                       poor farmers



                                                                                                                                   Agriculture



                                                                                                                                                              externally)
 Strategic
 Objectives
1. Generate, develop and apply new
                                          XXXX                               XX                   XX                          XXX                               X
   knowledge and technology
2. Sustainable use of natural resources
                                          XXX                             XXX                     XXX                         XXX                               X

3. Enhance nutrition, food security and
                                          XXX                             XXX                     XXX                         XXX                               X
   safety
4. Enhance the ability of the
   agricultural sector to manage and      XXX                             XXX                     XXX                         XXX                               X
   mitigate agricultural risk
5. Technology Transfer &
                                          XXX                                XX                   XX                          XXXX                              X
   commercialisation
6. Achieve organizational growth and                                                                                                                                   8
                                              X                                 X                    X                          X                               X
   sustainability
                     VALUES
• Batho Pele principles
• Ons maak „n plan
• TARGET
  – Truth
  – Accountability
  – Respect
  – Growth
  – Excellence
  – Trust


                              9
             ARC Mandate: To conduct research, development and technology transfer in order to:
                                        •promote agriculture & industry;
                                      •contribute to a better quality of life
                               •facilitate/ensure natural resource conservation


                                                                           Mission Statement:
                                               The Agriculture Research Council is a premier science institution that conducts
             Vision:                           fundamental and applied research with partners to generate new knowledge,
    Excellence in Agricultural                      develop human capital and foster innovation in agriculture through
   Research and Development                            technology development and dissemination, and competitive
                                                commercialisation of research results in support of developing a prosperous
                                                                            agricultural sector.




                                                                                                            Enhance the ability
                           Generate, develop
                                                       Sustainable use and        Enhance Nutrition,         of the agricultural
                            and apply new
                                                         management of            Food Security and          sector to manage
                            knowledge and
                                                        natural resources              Safety                   and mitigate
                              technology
                                                                                                              agricultural risks
   Achieve
organisational
 growth and
sustainability


                                                       Technology Transfer & Commercialisation
                                                                                                                            10
                          MINISTER

                       COUNCIL (BOARD)


                     CHIEF EXECUTIVE OFFICER


 COMPANY SECRETARY                             CHIEF RISK OFFICER




CHIEF FINANCIAL     EXEC. DIR     EXEC. DIR.          EXEC. DIR.
    OFFICER       HR & SUPPORT       R&D           TECH. TRANSFER
 MR. MALULEKE     MR. NETSIANDA   Dr. JEENAH         MS. CANCA



                                                                11
                        ARC AREAS OF PRIORITY
       Start with                                          Product Portfolio
 Industries that deliver
  growth now and/or are                                     Total Value Chain
  positioned for further
  growth: collaborate & de-                           GRAINS
                                                    Primary                               Packaging
  bottleneck                                   Agricultura           Processing          / Additional
                                    LIVESTOCK
                                   Pri       Primary
                                                   l activity                       Packaging add
                                                                                           Value
 Industries that are              ma   Agricultura             Processing         / Additional
  important for desired
                                VEGETABLES
                                   ryPrimaryl activity                               Value
                                                                            Packaging add
                                                                         Packagin
  outcomes but are not yet HORTICULTURE
                                 Agricultura
                                   Agr
                                    l activity
                                   icul
                                                        Processing
                                                      Processi
                                                                           / Additional
                                                                                g/
                                                                             Value add
  competitive: lead the way                                              Additiona
                                   tur                       ng
                                                      Processi                l /
                                                                       Packaging Value
                                                 e
                                    Primary                ng           Value add add
                                   Agriculture

                                 the Foundation

                                                          Fix the basics: scientific solutions
                New & improved technologies
                                                          Research & Development
Cross-          Technology Transfer
                                                          Human Capital Development
                Support LARP
Cutting                                                   Knowledge Infrastructure
                Competitiveness of SA Agric.
Issues                                                    Mitigate agricultural risks
                Organizational Sustainability                                                          12
                                                          Enablers for Innovation
         LARP Goals, Strategies & Objectives
                            Poverty
    Goals                 Eradication                         Goals




              Govt.               Good
                                                Govt.
              Policies        Governance        Policies
    Job                Access          Profitability         Economic
  Creation                 &                 &                Growth
                     Participation   Competitiveness

                         Sustainable Agricultural
                             Resource Use                    Exports
   Land Reform

        Production                                    Agribusiness
                              Services &
ARC Interventions           Infrastructure          ARC Interventions   13
            Strategic Objective 1
    Generate, Develop and Apply new Knowledge and
                      Technology
RATIONALE:
•  Critical component of a knowledge based economy and
   people;
•  Underpins generation of new (novel)
   products/processes/ technologies;
•  Contributes towards excellence and scientific
   knowledge;
•  Enables ARC to use best science to address
   agricultural problems unique to RSA & Africa;
•  Generates intellectual property essential for economic
   development

                                                        14
   EXAMPLES FOR STRATEGIC OBJECTIVE 1
 Generate, Develop and Apply New Knowledge and
                   Technology
KRA                   PROGRAMME              SUB-                   INDICATOR
                                             PROGRAMME
Accurate Prediction   Research &             Risk models &          • Publications
of Risks              application of earth   systems to ensure      •Model (e.g.
                      observation &          growth in a            DEWS)
                      remote sensing for     changing               •Information
                      risk prediction        environment            dissemination
Increased             Bio – prospecting      Bio – activity based   •Publications
Agricultural                                 product innovation     •Insecticides
Productivity                                 (medicinal plants,     •Pest risk analyses
                                             insecticides etc)
                                                                    •Information
                                                                    dissemination



                                                                                      15
          Strategic Objective 2
 Sustainable use and management of natural resources

RATIONALE:
• Improve efficient use of agricultural
  natural resources for food production;
• Ensure sustainable use and management;
• Reduce poverty and increase wealth;
• Competitiveness of industries dependent
  on natural resource – based agriculture

                                                       16
      EXAMPLES FOR STRATEGIC OBJECTIVE 2
      Sustainable use and management of natural
                      resources
KRA                   PROGRAMME              SUB-                   INDICATOR
                                             PROGRAMME
Characterization of   Characterization       •Rainwater             • Publications
natural resources     and quantification     harvesting             •Information
and ecological                               •Land degradation      dissemination
systems                                      •Water use             •Services rendered
                                             efficiency             •Products
Maintenance and       Maintenance of         Utilization of         •Publications
use of national       national assets (e.g   national collections   •Pest risk analyses
assets                databases,                                    •Collections
                      collections,
                      genebanks etc)                                •Information
                                                                    dissemination


                                                                                      17
           Strategic Objective 3
       Enhance Nutrition Food security and Safety

RATIONALE:
•  Increase access and availability of nutritious food;
•  Broadening the food base to enhance food security and
   nutrition;
•  Improving the inherent nutritional quality of food at
   source;
•  Broadening participation in the value chain and
   reducing waste;
•  Integrated approaches to optimize impact and adoption
   of new technologies.


                                                       18
       EXAMPLES FOR STRATEGIC OBJECTIVE 3
            Enhance Nutrition Food Security and Safety
KRA                   PROGRAMME           SUB-                   INDICATOR
                                          PROGRAMME
Increased access      Crop Improvement    •Cultivars, lines      • Publications
and availability of                       hybrids                •Methods
quality and safe                          •Production            •Products
nutritious food                           practices/systems      •Germplasm
                                          •Bio – fortification   collections
                      Animal              •New breeds            •Services rendered
                      Improvement         •Disease control       •Information
                                          •Alternative feed      dissemination

Improved Pre-         Agriculture value   •Shelf – life          •Publications
harvest, harvesting   chain improvement   •Nutritive value of    •Products
and post harvest                          food/feed              •Methods
technologies
                                                                 •Information
                                                                 dissemination

                                                                                  19
         Strategic Objective 4
        Manage and mitigate agricultural risk

RATIONALE:
• Reduce vulnerability to climate change;
• Solutions and management of pests,
  diseases, weeds and alien invasives;
• Management of natural disasters in
  agriculture;
• Manage risks to increased agricultural
  productivity and trade

                                                20
         EXAMPLES FOR STRATEGIC OBJECTIVE 4
       Enhance the ability to Manage & Mitigate Agric. Risks
KRA                   PROGRAMME              SUB-PROGRAMME          INDICATOR

Reduced vulnerability Natural resources      •AGIS                  • Publications
of agricultural sector information and       •Remote sensing        •Methods
to climate change      decision support      models for agriculture •Products
                       systems
                                                                    •Information
                                                                    dissemination
                      Natural resource       •Rangeland condition •Publications
                      monitoring, auditing   assessment and       •Services rendered
                      and impact             monitoring           •Information
                      assessment                                  dissemination
Solutions to predict & Agriculture value     •Shelf – life          •Publications
manage pests,          chain improvement     •Nutritive value of    •Products
diseases, weeds &                            food/feed              •Methods
alien invasives
                                                                    •Information
                                                                    dissemination

                                                                                     21
             Technology Transfer
RATIONALE:
• Creation of value through Agricultural R&D
• Transfer ability to utilize new & improved technologies
• Contribute to growth in agricultural sector through Tech
  Transfer and adoption programmes
• Contribute to increase in exports through the
  dissemination of technological innovations
• Contribute to the reduction of rural poverty through
  formulation and execution of programmes to address
  access and improved quality of life



                                                             22
      EXAMPLES FOR STRATEGIC OBJECTIVE 5
        Technology Transfer and Commercialization
KRA           PROGRAMME      SUB-          INDICATOR
                             PROGRAMME




                                                       23
                  Human Resources
                   ARC’s Intellectual Asset

    The HR division’s mandate is:

   Develop, review, update and implement comprehensive and
    dynamic HR policies, procedures and protocols aligned to
    the core business of the ARC.
   Attraction & retention of critical and scarce skills
   Human Capital Development.
   Implementation of a robust Performance Management
    System
   Maintain sound labour relations with organised labour (OL).
   Strive to ensure that ARC is legally compliant with relevant
    labour laws.
   Change Management & Transformation

                                                               24
             Strategic Objective 6
Achieve Organisational Growth and Sustainability
1.       Human Capital Utilisation

            Effective talent management framework implementation

2.       Organizational Development & Design

            Fully implemented Organizational structure
            All new posts established, profiled, graded and budgeted.

3.       Aligned and improved organisational performance

            Implementation of Performance Management System
            All employees have quality performance agreements and development plans
            Establish performance moderation framework and process
            Performance reviews

4.     Attracting, developing and retaining Human Capital
          Develop and implement a retention strategy and an incentive scheme
          Development and implementation of a succession planning model
          Implementation of remuneration policy and recruitment strategy




                                                                                       25
             Strategic Objective 6
Achieve Organisational Growth and Sustainability
                    (cont.)
5.       Human Capital Development

            Development and conducting training needs analysis
            Develop 100% of personal development plans for staff
            Conduct skills audit

6.       Occupational Health & Safety

            Conducting Health & Safety audits

7.       Management of transformation & Diversity

            Diversity and change management training

8.       Employment Equity program

            Develop Institute EE Plan with Targets
            Training of EE Committees




                                                                    26
         SCIENTIFIC CAPACITY PER RACE
                  30/06/2009




                                             African
                                  278
                                32.21%
                                             Coloured


                                             Indian


                                             White

                                       31
  541
                                     3.59%
62.69%
                                    13
                                  1.51%




                                                        27
      DISTRIBUTION OF SALARY BILL
               30/06/2009



                         17%


36%




                               47%
                                     Management

                                     Sientific staff

                                     Rest of staff complement



                                                                28
      % SCIENTIFIC CAPACITY AGAINST TOTAL STAFF




                                         36%




                                                  Scientific staff
                                                  Rest of Staff




64%




                                                                     29
              Finance overview
•   Analysis of Expenditure
•   Analysis of Income
•   Budget Assumptions
•   Budget Scenarios
•   Recommended Budget
•   Medium Term Actions
•   Risks in the Budget


                                 30
ANALYSIS OF EXTERNAL INCOME
               External Income 2008/09                                      External Income 2009/10
                          R'm                                   Q4                     R'm               Q1
   Q4                                       Q1
                                                             R 97.94                                  R 82.41
R 88.74                                  R 39.61
                                                              (29%)                                    (24%)
 (32%)
                                          (14%)




                                                      Q2
                                                   R 61.82                                                   Q2
             Q3                                     (22%)            Q3                                   R 73.12
          R 91.29                                                 R 84.51                                  (22%)
           (32%)                                                   (25%)



                                                                                                          31
ANALYSIS OF EXPENDITURE
              Expenditures 2008/09                             Expenditures 2009/10
                      R'm                                              R'm


                     Depreciation
                                                                          Depreciation
                                                 Operational                R 28.06
                       R 18.67                    expenses
                         (2%)                                                 (3%)
Operational                                        R 328.94
 expenses                                           (37%)
  R 333.17
   (40%)




                                     Personnel
                                      R 471.65                                           Personnel
                                       (58%)                                              R 522.41
                                                                                           (60%)




                                                                                               32
Baseline Allocation (excl capex and ringfenced
 projects) vs Personnel Costs
           700,000

           600,000

           500,000
                                                                               Baseline
           400,000
   R'000




                                                                               Allocation
           300,000                                                             Personnel
                                                                               Costs
           200,000

           100,000

               -
                           8



                                       9



                                                   0



                                                               1



                                                                           2
                        /0



                                    /0



                                                /1



                                                            /1



                                                                        /1
                     07



                                08



                                            09



                                                        10



                                                                    11
                   20



                               20



                                           20



                                                       20



                                                                   20
                                                  Year
 Budget Assumptions For 2009/10
1. PG increase 2%
2. External Income Neutral 0% (Risk)
3. Personnel Cost Increase 7 % (Risk)
  a) Vacancies & salary adjustments
  b) Cost of living adjustment (inflation)
4. Roll over capital (FMD facility) R44m
5. Forecasted deficit 08/09 (R23m)



                                             34
                     ARC 2009/10 Budget Scenario 1
                    Expenditure
                                         ADD
                    Personnel: (R522m)
                                         Depreciation: R28m
                    Operating: (R328m)                                       Cash at Beginning
                                         WC Movement: R3m
                    Depr:       (R28m)                                       Of Year
                    Total      (R879m)   Total            R31m                         R9m


Revenue
PG:     R503m
External:   R338m           (Deficit)             Cash                    Net                  Cash
                            (R15m)               Ex Ops               Cash for Year          end of Year
Other:      R23m
                                                  R16m                  (R85m)                (R78m)


Total       R864m                                          Capex
                                                           FMD: (R44m)
                                                           Other: (R57m)

                                                           Total (R101m)



                                                                                                   35
                                                             Potential Saving
Action Items 2009/10                                         (R‟000)



Clear long outstanding debtors                                   10.00

Offer salary increases average of 7%                              4.00

Delay filling of vacancies                                       15.00


Saving in operating cost as a result of delay in vacancies        4.50

Discontinue the Animal Improvement Scheme                        24.00

Potential saving during 2009/10                                  57.50
                     ARC 2009/10 Budget Scenario 2
                    Expenditure
                                         ADD
                    Personnel: (R487m)
                                         Depreciation: R28m
                    Oper:     (R317m)                                        Cash at Beginning
                                         WC Movement: R13m
                    Depr:      (R28m)                                        Of Year
                    Total     (R832m)    Total            R41m                         R9m


Revenue
PG:     R503m
External:   R338m           Surplus               Cash                    Net                  Cash
                             R32m                Ex Ops               Cash for Year          end of Year
Other:      R23m
                                                  R73m                  (R28m)                (R19m)


Total       R864m                                          Capex
                                                           FMD: (R44m)
                                                           Other: (R57m)

                                                           Total (R101m)



                                                                                                  37
             ARC 2009/10 Budget Scenario 4 Approved
                    Expenditure
                                         ADD
                    Personnel: (R500m)
                                         Depreciation:    R21m
                    Admin:     (R281m)                                       Cash at Beginning
                                         WC Movement:R17m
                    Depr:       (R21m)                                       Of Year
                    Total      (R802m)   Total            R38m                         R9m


Revenue
PG:     R503m
External:   R294m            Surplus              Cash                    Net                  Cash
                              R11m               Ex Ops               Cash for Year          end of Year
Other:      R16m
                                                  R49m                   R7m                   R16m


Total       R813m                                          Capex
                                                           FMD: (R22m)
                                                           Other: (R20m)

                                                           Total (R42m)



                                                                                                  38
BUDGET PER STRATEGIC OBJECTIVE
STRATEGIC OBJECTIVE                                 PERCENT R‟000
Generate, develop and apply new knowledge             14.4 %   124,880
and technology
Sustainable use and management of natural             20 %     174,831
resources
Enhance Nutrition, Food Security and Safety           19.2 %   166,506

Enhance the ability of the agricultural sector to     20 %     174,832
manage and mitigate agricultural risks
Technology Transfer and Commercialization             13 %     112,601

Achieve Organizational growth and                     13 %     114,082
sustainability

                                                                         39
Medium Term Management Actions (3- 5 YRS)

1. Rent out unused facilities
2. Establish a unit to focus on sale of ARC
   products (e.g. milk, eggs, fruits, etc)
3. Review all non-value adding Projects
4. Negotiate Prepayments & Progress payments on
   contracts
5. Closure of non- required facilities
 Risks in the 2009/10 budget
Risks                                  Action item
1 There is a cash shortfall of about   Reduce costs & waste
R100m to date                          New business unit product sales
2 The target of R56m or 20% more       Engage stakeholders, look for new
external income may not be             business & prepayments
reached                                Review target along economy
                                       Efficient management of resources
3 The funding of R24m for Animal       Engage Minister, DoA and
Improvement Schemes may not be         Treasury on urgency of funding
resolved on time.                      Increase fees for participants
4 Additional funding of R190m for      Engage Minister, DoA, DST &
the FMD facility may not be            Treasury on strategic nature of
resolved on time                       facility – review costs of project
5 Failure to fill vacancies may        Fill critical replacements on
hamper delivery on contracts and       priority basis
mandate                                Contract linked posts to continue
                                                                              AGRICULTURE RESEARCH COUNCIL
                                                                          TEN YEAR REVIEW
                                                 2008/09    2007/08   2006/07   2005/06  2004/05   2003/04   2002/03   2001/02    2000/01   1999/00   1998/99
                                                 R'm        R'm       R'm        R'm      R'm      R'm        R'm        R'm        R'm       R'm       R'm
             INCOME STATEMENT
Total Income                                      747.21    717.60    692.07   654.15    545.22    488.39     507.07    528.72     444.19    432.43    416.13
Parliamentary Grant                               448.74    451.77    434.18   457.19    320.71    276.14     267.55    267.68     276.28    274.52    286.41
External Income                                   298.47    265.83    257.90   196.97    224.51    212.25     239.51    261.04     167.92    157.91    129.72
Total Expenditure                                 784.45    721.41    695.61   657.05    552.18    495.98     473.67    496.52     450.33    440.69    474.86
Total Remuneration Cost                           467.04    416.08    415.97   395.97    315.85    284.23     263.63    289.80     284.59    285.40    295.30
Other Expenditure                                 317.41    305.33    279.64   261.09    236.32    211.76     210.04    266.56     165.74    155.30    179.56
Investment Income                                    8.57    12.35     11.69    11.18     12.76     13.96       9.57      6.29       6.17      8.31     13.82
Net Surplus\(Deficit)                              -28.68     8.55      8.16    12.91      6.07      6.36      36.89    -21.35      33.00     47.00    -44.91
               BALANCE SHEET
Property, plant and equipment                     650.48     548.83   523.25   396.96    381.00    375.68     385.44    395.21     544.45    545.24    547.57
Other Assets                                        2.12       2.23     2.23     1.24      0.85      0.85       0.18      0.19       0.19      0.13      0.10
Current assets (excluding cash)                    81.23      94.76    77.18   128.74     73.39     67.48      75.41     65.86      66.26     47.13     35.85
Cash resources (net of bank overdraft)             34.97      59.10    96.66   152.82    152.41    102.68      80.51     65.54      20.16     25.68     57.65
Total Assets                                      768.80     704.92   699.31   679.76    607.66    546.68     541.54    526.80     631.06    618.18    641.17

Capital and Reserves                              244.23     214.18   205.63   197.47    184.56     382.00    380.35    350.21     494.79    494.76    494.18
Other Liabilities                                 344.32     326.45   309.34   230.30    288.90     30.64      55.78     71.00      64.17     52.50     49.93
Current Liabilities                               180.23     164.29   184.34   251.98    134.19    134.04     105.41    105.59      72.10     70.92     97.06
Total Equity and Liabilities                      768.78     704.92   699.31   679.75    607.66    546.68     541.54    526.80     631.06    618.18    641.17
                 CASH FLOWS
Net cash flow from operating activities            38.13       4.77     6.62    31.64     72.01     32.45      27.05      58.55      9.88    -20.26    -30.96
Net cash flow from investing activities           -62.26     -42.32   -62.79   -31.23    -22.27    -10.28     -12.08     -13.17    -15.41    -11.71    -29.54
Cash and cash equivalents at beginning of year     59.10      96.66   152.82   152.41    102.68     80.51      65.54      20.16     25.68     57.65    118.15
Cash and cash equivalents at end of year           34.97      59.10    96.66   152.82    152.41    102.68      80.51      65.54     20.16     25.68     57.65
                RATIO ANALYSIS
Profitability and asset management
Asset Turnover                                       1.3        1.3      1.3      1.5       1.2       1.2        1.2        1.3       0.8       0.8       0.8
Return on net assets (%)                           -5.2%       1.8%     1.9%     4.7%      1.9%      2.1%      10.4%      -6.0%      6.1%      9.0%     -9.2%
Current Ratio                                        0.5        0.6      0.4      0.5       0.5       0.5        0.7        0.6       0.9       0.7       0.4
Operating margin (%)                               -3.8%       1.2%     1.2%     2.0%      1.1%      1.3%       7.3%      -4.0%      7.4%     10.9%    -10.8%
Performance
Revenue per employee (Rands)                       0.302      0.292    0.258    0.242     0.206     0.193      0.191      0.184     0.145     0.132     0.122
Net surplus\(Deficit) per employee                -0.012      0.003    0.003    0.005     0.002     0.003      0.014     -0.007     0.011     0.014    -0.013
Remuneration as a % of PG                          104%         92%      96%      87%       98%     103%         99%      108%      103%      104%      103%
Remuneration as a percentage of total
                                                     60%       58%       60%      60%      57%        57%       56%        58%        63%       65%        62%
expenditure %
External revenue as a % of total income              40%       37%       37%      30%      41%        43%       47%        49%       38%        37%        31%
Number of employees                                 2475       2457     2686     2698     2,643     2,525      2,652     2,872      3,057     3,281     3,404
Ratio definitions
Net Assets
Asset turnover



                                                                                                                                                      42
PARLIMENTARY GRANTS FOR PERIODS 2008/09-2011/12

                                        2008/09 % Incr    2009/10 % Incr 2010/11 % Incr    2011/12
                                        R'000             R'000          R'000             R'000
DAFF ALLOCATION
Baseline Allocation                        394       7%      420    17%      490    15%        562
-operating                                 334       9%      363     6%      384     6%        407
-capital                                    60      -4%       57    86%      106    46%        155
           Baseline- Allocation             60      -8%       55     6%       58     6%         61
           Baseline-adjustment                                                44   100%         88
           Baseline- Inflation adjust                          2    93%        5    28%          6

Ringfenced projects                         63     -30%       44     6%       47      5%        49
Vat                                         57       6%       61    16%       71     14%        81
                                           515       2%      525    16%      608     14%       692

DST ALLOCATION
Total Allocation excluding VAT              38     11%        42     7%       45      4%        47
VAT on DST                                   5     20%         6     0%        6     17%         7
TOTAL DST ALLOCATION                        43     12%        48     6%       51      6%        54

Total Grant Including VAT                  558       3%      573    15%      659     13%       746


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RINGFENCED PROJECTS

                             2008/09 % Incr 2009/10 % Incr 2010/11 % Incr 2011/12
                               R'm            R'm            R'm            R'm
Climate Monitoring                 1     0%       1     0%       1     0%       1
SADC acitivites (ringfenced)       3     0%       3     0%       3     0%       3
National public goods assets     11      9%     12      0%     12      8%     13
Upgrade of FMD building          21 -100%
Intergis                           2     0%       2     0%       2     0%       2
Crop forecasting                   5    60%       8     0%       8    13%       9
Diagnostic Services (OVI)        14      7%     15      7%     16      0%     16
                                 57 -28%        41      2%     42      5%     44



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  THANK YOU

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Description: Chief Financial Officer Kra document sample