DCR Finance Report

1 of 2014

Introduction

This serves to report on the financial activities for the fiscal year 2013 and the planned activities for 2014.

The main focus will be on the main sources of funding, namely:

Appropriation Agricultural Revolving Fund Donor funds which should be called collaborations and the Public Private Partnership Programs

Outstanding obligations to service providers shall also be presented It will conclude with some issues on the audits by both the Internal Audit and the Comptroller and the Auditor General.

APPROPRIATION

The fiscal year 2013 was a different year. For the second half of the year, the Department under Sub Vote II received a disbursement of US$2,000.00 only. This was to be shared between the two Divisions which are Crops Research and Livestock Research. Fortunately the Directors for these two Divisions agreed on settling the outstanding bill accrued on the partitioning of the office for the Director Crops Research. The Department under Sub Vote II did not receive any supplementary budget when the Minister of Finance presented the National Budget.

The Division had a shortfall of US$108,820 on Housing Allowances for the December salaries and also a shortfall of US$177,630 on Bonuses.
The Finance Section was advised by the Treasury to virement the shortfalls from goods and services.

APPROPRIATION
Original Budget Revised Budget 3,458,930 1,277,955 130,400 40,000 4,907,285 1,448,355 Expenditure for the year 3,320,874 494,096 26,589 3,841,559 520,685 Percentage Consumption 96.0 38.7 20.4 78.3 36.0

Employment Costs Goods and Services Maintenance Acquisition of Capital Total Total with Employment Costs Total without Employment Costs

3,484,600 1,325,200 286,900 140,000 5,236,700 1,752,100

APPROPRIATION

2014 BUDGET ESTIMATES

The presentation of the 2014 Budget Estimates finally laid DAR4D, the former Sub Vote II, to rest. It gave life to the Divisions of Crops and Livestock Research which we believe shall give birth to separate budgets, in the next fiscal year, for Crops Research and Livestock Research Division. The Divisions of Crops and Livestock Research combines the budgets of the two Divisions Ministry of Agriculture, Mechanisation and Irrigation Development which used to be Vote 10 in the Blue Book is now Vote 8. Under the Zim Asset, Ministry of Agriculture, Machenisation and Irrigation Development falls under the Food Security and Nutrition cluster. The major priority for the Division of Crops Research is Crop Production and Development, which is deferent from that of Division of Livestock Research. This paved way for each Division to maintain its own Cost Centre, that is internally separating the budgets. The Cost Centre for the Division of Crops Research shall be 103201.

2014 BUDGET ESTIMATES

2013 Allocation Proposed Budget for 2014 2014 Allocation Percentag e Change from 2013 Percentage Allocated

Goods and Services Maintenance Acquisition of Capital Total Total

1,325,200 286,900 140,000 1,752,100

2,553,600 636,600 4,748,500 7,938,700

936,000 305,000 583,000 1,824,000

70.6 106.6 416.4 104.1

36.7 47.9 12.3 23.0

2014 BUDGET ESTIMATES

Of the total amount of US$ 936,000.00 on Goods and Services, US$ 85,000.00 is for Rentals and Hire Expenses and US$ 324,000.00 is fro Utilities and other services charges. On acquisition of Capital Equipment, the Division was allocated an amount of US$ 12,000.00 on Furniture and Fittings, US$ 126,000.00 is for the acquisition of motor vehicles and US$ 445,000.00 is for Construction Works.

AGRICULTURAL REVOLVING FUND

Upon the compilation of this report, most Institutes were still finalizing on their yearend financial statements.

The Ministrys Head Office, in consultation with the Ministry of Finance and the Comptroller and Auditor General, has introduces the new reporting formats.
With the introduction of the depreciation on all assets acquired by revolving funds, this has created confusion amongst the Finance staff. The proposal was for the Ministry to host a workshop to train and assist in preparation of the Statutory Reports so as to avoid the qualification of the Revolving Funds. However some Institutes have submitted their figures.

PERFOMANCE ANALYSIS OF REVOLVING FUNDS

Institute Coffee Lowveld Horticulture Crop Breeding Agronomy Cotton Nyanga 67,342.74 45,847.21 67,808.65 49,793.23 Budgeted Income Budgeted Expenditure Actual Income 6,974.90 93,19.05 Actual Expenditure 6,94.55 109,319.07 Variance on Income

ARF BUDGETS FOR 2014

The ARF 2014 Budgets were approved on the 7th of January 2014. Most ARF Budget submissions from Institutes had a lot of errors. The Divisional Finance Section worked closely with the Finance Staff in Institues to rectify the errors.