Good performance of the Meat Board of Namibia

The latest report on the Meat Board of Namibia signed by the Auditor-General during December 2013 dates back to the financial year ended 31 March 2012. Normally such report should be finalized within 12 months after the financial year end, meaning thus before 31 March 2013. No reason for the late finalization of the report was mentioned.
Another clean audit opinion was issued on the financial statements, well done.
The functions of the Board are to promote the interests of the meat industry. Principally the collection of levies on livestock exported or slaughtered locally is used for various programmes to promote the marketing of livestock/meat products through ensuring Namibia’s access to existing markets and the development of new premium markets.
The financial situation of the Board is strong and stable as can be seen from the following figures.

Financial position
The current assets exceed the current liabilities by N$ 64 492 590 (previous year: N$ 46 797 602) which is extremely good.
Cash and cash equivalents amount to N$ 113 301 069 (previous year:
 N$ 87 961 196), debtors to N$ 8 827 057 (previous year: N$ 8 261 737) and creditors to N$ 3 325 630 (previous year: N$ 2 646 467).  
Fund accounts amount to N$ 124 223 664 (previous year: N$ 99 770 688). When looking at the cash available, it would appear that the Fund accounts are still not fully cash-backed.
The Board closed the financial year with a surplus of N$ 12 580 926 (previous year: N$ 3 340 459) on the General account.
Government, through the Ministry of Agriculture, Water and Forestry contributed N$ 42 704 404 to the Board to finance certain projects on its behalf. Almost N$ 42 million were spent during the year, which is a good achievement.

Fund accounts
The Board operates fourteen Fund accounts and a separate account for projects run on behalf of the Ministry and the Embassy of Finland which contributed
 N$ 267 927 during the financial year of which N$ 92 525 was spent, mainly on market diversification.
Here are some of the Fund accounts:

Reserve Fund            
The surplus achieved on the general account is annually being transferred to the Reserve Fund or, if a loss occurred, the loss is made good from the Reserve Fund.
The total surplus on the Reserve Fund currently stands on N$ 11 024 772 compared with a deficit in the previous year of N$ 2 421 258.

Cattle Stabilization Fund
The total income of the project amounted to N$ 4 955 396 (previous year: 
N$ 2 884 995) whereas the total expenditure amounted to N$ 7 368 112 (previous year: N$ 3 609 736), mainly for bush eradication. The surplus balance of the previous year of N$ 6 851 375 thus decreased to N$ 4 438 659.

Small Stock Stabilization Fund
No income was generated by the Fund (previous year: N$ 991) and expenditure amounted to N$ 424 576, mainly for marketing purposes. The accumulated surplus of the previous year thus decreased from N$ 481 121 to N$ 56 546.

Animal Health Fund
The total income amounted to N$ 1 745 091 (previous year: N$ 866 000) whilst the expenditure amounted to N$ 194 342 (previous year:  N$ 90 237), mainly for fence inspections, specifications and tenders. The accumulated surplus of the previous year increased from N$ 10 053 386 to N$ 11 604 135.
The Board should ensure that the Fund is being utilized to its full potential.

Ear Tag Account
This account displays its own balance sheet, according to which the retained income amounted to Nil (previous year: N$ 1 907 006) and the amount reserved for capital is N$ 4 953 006 (previous year: N$ 881 065) and for ear tag subsidies N$ 675 586 (previous year: N$ 4 500 000). Cash available amounted to 
N$ 6 163 559 (previous year: N$ 7 184 987).

Fan Meat Fund (National Traceability Scheme)
Income amounted to N$ 5 233 751 (previous year: N$ 1 861 976) whereas the expenditure amounted to N$ 1 793 923 (previous year: N$ 1 611 633), mainly consisting of staff expenses, industry studies, Namlits administration and office rent.
A surplus of N$ 3 439 828 (previous year: N$ 250 343) was realized, increasing the accumulated surplus of N$ 250 343 of the previous year to N$ 3 690 171.

Drought Relief Administration Fund
The Fund closed with a balance of N$ 596 309 (previous year: N$ 568 415). No expenditure has been incurred.

Stock Brands Registration Fund
Income for the year amounted to N$ 714 207 (previous year: N$ 455 573) and expenditure to N$ 442 808 (previous year: N$ 180 318), mainly for staff salaries and brand registrations.
The accumulated surplus of the previous year of N$ 474 941 increased to 
N$ 746 340 in the current year.

Feasibility Study of Meat exports to Angola and the DRC
The surplus in this account has grown from N$ 3 722 685 in the previous year to N$ 3 940 787, through interest received and a small expense of N$ 23 781 (previous year: N$ 18 000).
The Board should ensure that this Fund still serves the purpose for which it has been created.

Northern Communal Area Levy Fund
The income of this Fund amounted to N$ 8 929 180 (previous year: 
N$ 10 123 783) whereas the expenditure amounted to N$ 4 205 511 (previous year:  N$ 8 732 745, consisting mainly of the mentorship programme and veterinary cordon fence expenses.
The accumulated surplus of the Fund increased from N$ 26 456 898 to 
N$ 31 180 567.