1NCERA FARMS (PTY) LTD ANNUAL REPORT 2004105

1. Introduction

2. Background

Why with the DoA

• Entity i.t.o the PFMA
• Establishment of a service centre

· Security fence

· Administration and training centre Workshop

· Water sources

· Shade house/nursery

· Livestock handling facilities

· Tunnels

· Security

R'000

1.Budget allocation

Transfer from the Department 2 240

Plus:Own revenue 1 016

Funds available 3 256

Less: Actual spending 2 831*

Surplus 425

* As follows:

R 000 %

Personnel expenditure 563 19,9

Administrative expenditure 306 10,8

Management fees 1 020 36,0

Veterinary and medicine cost 41 1,4

Fodder and licks 493 17,4

Maintenance 32 1,2

Transport cost 43 1,5

Consumables 7 0,3

Water and electricity 137 4,8

Security services 189 6,7

- Approval granted for the establishment of a service centre during October 2004

-The following services to be rendered:

Extension services

Land preparation, layout and contract ploughing

Training and advice

Preparation of business plans

Cost effective repairs

Postal services

Legal services

Land valuation

Animal husbandry

Animal improvement services

-Progress made

Drilling of boreholes

Erection of irrigation dam

Erection of security fence

Cleaning of land

Finalisation of building plans

- New Board appointed by the Minister

EXTERNAL AUDIT REPORT

- Unqualified report

- No emphasis of matter

SURPLUS FUM OS

- Certain planned capital projects not finalised by the end of 2004/05 and thus rolled over to 2005/06

AUDIT COMEMITEE REPORT

The Internal Audit Report and the financial statements was reviewed but revealed no problems with regard to internal controls or non-compliance with the requirements of the PFMA