INGONYAMA TRUST BOARD
A SCHEDULE 3A PUBLIC ENTITY
IN TERMS OF THE PUBLIC FINANCE
MANAGEMENT ACT
PRESENTATIO N OF
S T R AT E G I C P L A N 2 0 1 1 / 2 0 1 2
AND
BUDGET 2011/2012
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BACKGROUND
Ingonyama Trust Board has grown formidable in strength since the establishment
of the Board in 1997. Operating with a small staff complement a recruitment drive
was initiated towards the end of 2009 to employ additional staff members
including the Head of Secretariat. Most of these posts were filled during 2010/11
financial year. The additional capacity assisted in developing more streamlined
and effective systems geared to benefit the communities who live in the land that
is administered and managed by the Board. It is therefore anticipated that most
of these systems that have been developed will be implemented during the
2011/12 financial year.
Under land management the Ingonyama Trust Board will fast track programs that
entails consolidation of title deeds and reconcile the asset register, transfer of
former KwaZulu R293 towns to local authorities, transfer of land for state
domestic purposes and land tenure upgrade and formalization. All this is to
ensure the optimum usage of land for the benefit of communities and other
occupiers including the state and municialities. Also, in partnership with the
Department of Agriculture and Rural Development the Board will provide support
to “One Village One Product” project as per the call by his Majesty the King.
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The Board has also resolved to intensify its outreach programs in 2011/12. This is
to make sure that communities to whom the Board supports fully understands its
mandates. This program is long overdue and has been constrained by lack of
capacity. Coupled with this program will be a drive to review Ingonyama Trust Board
Act 1994 (Act No. 03 of 1994) as amended.
Finally, it is the Board’s intention to continuously enhance and streamline its
business systems. One way of achieving this will be through maximizing the
financial benefit to communities from income of the Trust and prioritizing the
projects that will be of community benefit.
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 Vision
To provide the best possible land management systems to communities who live on
Ingonyama Trust land.
 Mission
To improve the quality of life of the people living on Ingonyama Trust land by ensuring that
land usage is to their benefit and in accordance with the laws of the land.
 Values
 Transparency, Integrity, Honesty, Professionalism, Value for money, Open Communication
and Consultative process, Service excellence through sound planning.
 Legislative mandate (Specific)
 KwaZulu-Natal Ingonyama Trust Act 1994 (Act No. 03 of 1994) as amended.
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SITUATIONAL ANALYSIS
 OPERATIONAL ENVIRONMENT
 Land Management
 Ingonyama Trust Board’s core business is land management. Due to the
saturation in terms of land availability, particularly the land owned by
Municipalities there is a surge in demand of land in areas owned by the
Trust. The demand for land varies from commercial to residential needs.
The Board is faced with a situation whereby it has to balance these
needs, that is to make the land available without losing ownership. At
times the urgency of these needs ends up straining the relationship
between Ingonyama Trust Board and the relevant stakeholders.

Royalties
 Also the coming into operation of the Mineral and Petroleum Resources
Royalty, 2008 (Act 28 of 2008) and Mineral and Petroleum Resources
Development Act, 2002, (Act 28 of 2002), and its lack of clarity on
payment of royalties creates uncertainty on the management of Trust
Account.
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ORGANIZATIONAL ENVIRONMENT
 Human Resources
 According to the current organogram the staff complement for Secretariat it is
almost 90% filled. There are however some contract positions filled to assist
the Secretariat to execute its functions effectively. With the Board’s expectation
that its programs should be spread to cover the whole Province, the Secretariat
had to relook at the existing organogram. As a result a revised organogram is
going to be submitted to the Department for consideration.
 The Board has for years operated on the Premises that are managed by the
Department of Land Reform and Rural Development. However as from 2011,
the Board will relocate to its new premises (65 Trelawnley Road). The offices at
Trelawnley will be temporary and the Board intends to build an Administrative
Block that will accommodate all staff during 2011/12 financial year.
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 SATELLITE OFFICES
 Also during 2011/12 the Board intends to open satellite offices that will
be aligned to District Municipalities. This will assist in bring services
offered by Ingonyama Trust Board closer to clients. It will also address
the delays in processing documents / applications that are submitted
to the Board.
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CONSTRAINTS AND MEASURES PLANNED TO OVERCOME
THEM
 Even though the capacity of the Secretariat has increased during the 2010/11 financial
year there is still more capacity needed to execute all the programs for the Board
effectively. Hence a proposal to revise the current organogram so that work is
decentralized to the Districts. Decentralization will assist in taking serves that the Board
offers closer to the clients. This has resulted in land invasions and squatting on Trust
land and this might have huge costs implications in the long run. The Board intends to
develop a comprehensive strategy to deal with these challenges in the forth-coming
financial year.
 With the lack of clarity posed by legislations likes Mineral and Petroleum Resources
Royalty, 2008 (Act 28 of 2008) and Mineral and Petroleum Resources Development
Act, 2002, (Act 28 of 2002), on royalties it has been difficult for the Board to assist the
affected communities to plan their programs. The matter has been taken up with the
National Treasury and hopefully it will be resolved in the near future.
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DESCRIPTION OF PLANNED QUALITY IMPROVEMENT
MEASURES
 Land Management





It is the Board’s objective to make sure that it land is optimally managed
to benefit the communities who live on it. Key to achieving this objective
during 2011/12 financial year would be to conduct land audits, develop a
land management plan for exclusive land and reconcile the asset register.
Communication
The development of a Communication strategy has been identified as one
of the key critical aspects to be focused on during 2011/12 financial
year. The Board intends to increase its awareness programs to all its
stakeholders. The outreach programs are to include; core functions of
Ingonyama Trust Board, its legal mandates and projects that the Board is
engaged on.
Support to Traditional Communities in ITB land
It is the Board’s intention to support and facilitate business opportunities
and development and social needs of the communities who live on
Ingonyama Trust land. The Board will endeavor in its programs to identify
business opportunities for the communities on its land and package them
so that they can ultimately benefit the affected communities.
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FACTS AND FIGURES
Land owned by the Trust 2,700,000 hectares.
Number of titles: 1491.
Land held in almost all 61
municipal areas.
Population living on Trust land
estimated at 4,558,698.
241 Traditional
councils/Authorities have
jurisdiction on Trust land.
Trust set up by Ingonyama
Trust Act No 3 of 1994 as
amended.
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STRATEGIC OVERVIEW 2011/12
OUTCOME 7:
 Vibrant, equitable and sustainable rural communities with food
security for all
OUTCOME 8:
 Sustainable human settlements and improved quality of household
life
 AREAS OF FOCUS




Land Management
Projects
Partnership in Dev. Projects
Enhance Capacity
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LAND MANAGEMENT







To strengthen land management strategies for both inclusive and
exclusive land
Asset Register
Land audit of Trust Farms
Implementation of 100Ha projects
Land audit of R293 towns
Cooperative Agreements
Management of exclusive land to address challenges of relentless
squatting and illegal business activities mash rooming on this
category of land
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PROJECTS
AGRIBUSINESS
Support to communal gardens / 100ha projects
SOCIO-ECONOMIC UPLIFTMENT PROJECTS
Support to coops projects (poultry, sewing etc.,)
EDUCATIONAL
Bursaries to students
CULTURE
Support to cultural groups and events
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PARTNERSHIP IN DEV. PROJECTS
Packaging Business and Development opportunities of which the Board
will approve and assist in implementation thereof.
Package models of development and workshop stakeholders.
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ENHANCE CAPACITY
Effective communication to all relevant stakeholders has been a
challenge to the Board due to its limited capacity.
Increased staff compliment
Rollout extensive outreach programs
Decentralization of the office to DM
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OVERVIEW OF BUDGET AND TRUST FUNDING
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OVERVIEW OF BUDGET AND TRUST FUNDING..cont.
The budget has been aligned to the Strategic Plan for the year 2011/2012.
The Ingonyama Trust Board’s own fund income comprises of
Income earned from Leases, Royalties and Investment
The Budgeted amount for 2011/2012 is R 69 364 987 which makes up
91.03 % of the Total income budget
Transfer Payment from the Department of Rural Development and Land
Reform, in addition to the above, would be R 6 834 000 which makes up
the remainder of the 8.97 % of the total income budget
In terms of the Board’s disbursement policy 90 % of the income earned
from trading activities is to be utilized for the benefit of the communities
and 10 % of the income earned is to be retained for Board expenses.
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 The expenditure budgeted is to be funded from the above sources.
 The internal administration costs of the Board are met from a grant - in - aid received
from the National Department of Rural Development and Land Reform. Certain
operational costs are met from the ten percent of funds accruing to the Trust. These
arrangements are in terms of the Ingonyama Trust Act 1994 and the Regulations
made under the Act.
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Outcome 7: Vibrant, equitable and sustainable rural communities with food security for all
Outcome 8: Sustainable human settlements and improved quality of household life
Strategic Goals:
EFFECTIVE AND EFFICIENT MANAGEMENT OF THE TRUST LAND FOR THE MATERIAL BENEFIT AND WELFARE OF COMMUNITIES LIVING THEREON
IMPROVE ORGANIZATIONAL CAPACITY AND PROFECIENCY
Strategic Objective
11/12
Performance Measure
Indicator
Baseline
1.
To administer, manage and
control Ingonyama Trust
land
2.
To ensure the optimum
usage of land for the
benefit of communities and
other occupiers
3.
To administer, manage and
control Ingonyama Trust
land
Number of Co
operation agreements
entered into and
implemented by TC’s,
LM’s and ITB
Percentage of
appropriate land
tenure applications
approved by the Board
An asset register
reconciled
Number of Land
Tenure records in
putted
12/13
13/14
14/15
Budget
Target
Budget
Target
Budget
Target
Budget
Target
300 000
3
200 000
10
200 000
20
200 000
16
60%
In-House
70%
In-House
90%
-
In-House
0
In-House
1500
1
10%
0
In-House
50%
In-House
150 000
1
150 000
-
In-House
150 000
700
150 000
1000
In-House
1200
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4.
To ensure the optimum usage of land
by developing appropriate land
management plans
5.
To
enhance and improve ITB’s
proficiency through outreach
programs
Number of exclusive land
parcels identified with
tailor made land
management plan
developed and
implemented
Number of Workshops and
Road shows
conducted to
traditional
communities and to
other organs of the
state or stakeholders
6.
Identification of potential business
and development opportunities
within communities living on
ITB land
Number of Traditional
Communities assisted
and supported in
identification of
Business
opportunities
7.
Reviewing and maintenance of
policies
Review of ITB legislation
Number of policies
developed
-Finance
-HRM
R 2M
2
R 1M
4
R 1M
1
300 000
5
300 000
10
300 000
0
500 000
2
300 000
3
200 000
0
150 000
2
50 000
3
25 000
0
6
R 1M
8
300 000
0
10
3
100 000
3
2
25 000
2
1
20
To develop a comprehensive Human
Resource
and
Communication
strategy
Communication strategy
developed
9.
To support communities for their
material benefit and welfare through
disbursement of funds that accrues to
the Trust
Percentage of applications
received from communities
and approvals thereof to
receive income from the
Trust
150 000
2
50
000
TC own
funds
10
TC
own
funds
25
000
15
TC
own
funds
25
000
20
TC
own
funds
25
INCOME PROJECTIONS FOR 2010/11
Strategic Goals:
EFFECTIVE AND EFFICIENT MANAGEMENT OF THE TRUST LAND FOR THE MATERIAL BENEFIT AND WELFARE OF COMMUNITIES LIVING THEREON
PROJECTED INCOME FOR 2011/12 - “000”
Strategic
Objective
10.
Enhance
ITB
business
/
financial
systems
Measurable
Objective
Extension of
security of tenure
to fund
development
projects
Performance Measure
Indicator
Income to be generated
(Non mining –including
existing leases)
Mining / royalty income to
be generated (including
existing mining leases)
11/12
12/13
13/14
14/15
15/16
Budget
Budget
Budget
Budget
Budget
6 271
17 508
-
6 585
18 384
-
6 914
19 303
-
7 260
20 268
-
7 623
21 282
-
11 900
-
13 518
-
13 773
-
14 224
-
14 802
-
Grants / Transfer of Funds
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CAPITAL PROJECTS FOR 2011/12
Strategic Goals:
EFFECTIVE AND EFFICIENT MANAGEMENT OF THE TRUST LAND FOR THE MATERIAL BENEFIT AND WELFARE OF COMMUNITIES LIVING THEREON
EST. EXPENDITURES FOR 2010/11
Strategic Objective
11.
Enhance ITB business
Measurable
Objective
New Offices
Performance Measure
Indicator
11/12
12/13
13/14
14/15
Budget
Budget
Budget
Budget
24 000
000
200 000
200 000
200 000
15/16
Budget
Completion of renovations
Relocation
200
000
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INCOME
2011/2012
ITB Own Fund Income
69,364,987.00
PTO - General
2,000.00
PTO - Commercial
9,648.00
Rental Income non- mining
6,271,797.00
Royalties and Prospecting Income
17,508,948.00
Investment Income
12,628,631.00
Interest on overdue Debtors accounts
From reserves for ITB office accommodation
From reserves for rates provision on ITB land
Other Income / Servitude
9,322.00
27,914, 641.00
20,000.00
5,000,000.00
Department of Rural Development and Land Reform
6,842,860.00
Transfer Payments – Current
6,834,000.00
Investment Income
TOTAL INCOME
8,860.00
R 76,207,847.00
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2011/2012
EXPENSES
ITB Own Fund Expenditure carried forward
58,449,987.00
Advertisement and public awareness campaigns
100,000.00
Legal fees
435,000.00
Bank charges
Repairs, grass cutting and cleaning
Provision for doubtful debts
21,676.00
240,000.00
50,000.00
Payment to beneficiary communities ( 90 % portion )
32,805,311.00
Capital expenditure including ITB office accommodation
24 ,000,000.00
Staff Training
150,000.00
Cultural events and meetings
120, 000.00
Land Tenure Information system - maintenance
150,000.00
Special projects service provider
378,000.00
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2011/2012
EXPENSES continued from previous slide
ITB Own Fund Expenditure balance brought forward
Rates provision
58,449,987.00
5,000,000.00
Rates office ITB office accommodation
75,000.00
Electricity and water
240,000.00
Establishment of communal gardens
250,000.00
Housing admin expenses
50,000.00
Tenure upgrade and formalization of settlements
2 ,000,000.00
Workshop and road shows
300,000.00
Identification of potential business opportunities
500,000.00
Review and maintenance of policies
150, 000.00
HRM Strategy and communication Strategy
150,000.00
Land identification and management plan
Workshop for co-operation agreements
Total ITB own fund expenditure
2,000,000.00
100, 000.00
R 69,364,987
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Departmental Funding Expenditure
Board Members remuneration
Bank Charges
Travel ,accommodation, meetings
Salaries
Internal audit committee members rem
6 842 860.00
694,124.00
9,074.00
450,000.00
3,155,705.00
6,000.00
Insurance
288,000.00
Stationery and other expenses
240,000.00
Crockery & cutlery
10,000.00
Motor vehicle expenses
70,000.00
Personnel agency fees
Computer software
50,000.00
100,000.00
Security expenses
432, 000.00
Telephone
120,000.00
External audit Fees
510,457.00
Internal audit fees
Contract- Real Estate
Cleaning ,repairs and maintenance
TOTAL EXPENDITURE
157 500.00
480,000.00
70,000.00
R 60,096,142.00
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SUMMARY AND CONCLUSION
The Ingonyama Trust Board sees its role increasingly as real estate and land management orientated.
To this extent the Ingonyama Trust seeks to strive as a model in real estate management in the country.
The strategic plan and budget for 2011/2012 have been prepared in order to achieve the optimum usage of
land for the benefit of communities and other parties including the state and municipalities and other parties.
The benefits flowing to persons living on trust land will include:
 Income from rents for commercial development.
 Joint ventures/community participation in developments.
 Employment opportunities.
 Skills transfer.
 Quality of life improved through:
 Provision of Housing.
 Provision of infrastructure and basic services.
The Budget for 2011/2012 totals R76,207,847.00 and is made up of:
 ITB own fund income : R 69,364,987.00
 Voted funds
: R 6,842,860.00
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