1. 1st QUARTER FINANCIAL PERFORMANCE REORT: 2015-2016 FINANCIAL YEAR
PRESENTATION TO PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM
19 AUGUST 2015

2. Presentation Outline Executive Summary
DRDLR’s Performance per Program and per Economic Classification
Agricultural Land Holding Account
Deeds Registration Trading Account

3. Executive summary
The Department’s total spending for the 1st Quarter amounted to R1.5 billion, representing 15.8% of the appropriation of R9.4 billion, leaving an available budget of R7.9 billion.
Performance reflected a 9.2% or R861.7 million under spending of the linear target of 25.0%.
The main contributor to the aforementioned under spending was the 14.9% under spending by Programme 3: Rural Development, mainly on Households item, followed by Programme 4: Restitution's under spending of 12.4%, also mainly on Households.

4. Executive summary (cont.)
Compensation of Employees reflected an underspending of 1.6% against the linear target due to 714 funded positions, as established through priority list and natural attrition after cut off date. This imply an vacancy rate of 14.7%. Detail per program and branch is depicted in the table below:

5. Executive summary – cont.
DRDLR per Sub program
Current budget
Spending up to 30/06/2015
Balance
% spent
Filled Positions
Vacant Positions
Vacancy Rate
Estimated Under / (Over) Spending if all posts are filled
R’000 %
Number
1: Administration
709,937
158,513
551,424
22.3%
1,558
174
10.0%
7,880
Ministerial Services
27,318
5,252
22,066
19.2% 30 5
14.3%
4,045
Management
80,948
14,810
66,138
18.3%
129 33
20.4%
3,102
Internal Audit
37,337
6,443
30,894
17.3% 54 15
21.7%
5,237
Corporate Support Services
187,444
43,574
143,870
23.2%
354 41
10.4%
4,143
Provincial Coordination
266,207
62,159
204,048
23.3%
708 48
6.3%
(9,805)
Office Chief Financial Officer
110,683
26,275
84,408
23.7%
283 32
10.2%
1,158
2: Geo- Spatial & Cadastr
478,210
107,087
371,123
22.4%
1,142 92
7.5%
2,856
Cadastral Surveys
385,512
88,012
297,500
22.8%
993 79
7.4%
(2,145)
SPLUM
92,698
19,075
73,623
20.6%
149 13
8.0%
5,001
3: Rural Development
253,424
68,418
185,006
27.0%
528 27
4.9%
(11,694)
Social Organis & Youth Dev
58,759
13,893
44,866
23.6%
113 21
15.7%
(434)
REID
117,633
30,743
86,890
26.1%
137 3
2.1%
(2,357)
RID
77,032
23,783
53,249
30.9%
278
1.1%
(8,902)
4: Restitution
312,321
70,000
242,321
735
225
23.4%
(60,720)
5: Land Reform
362,029
91,559
270,470
25.3%
196
50.0%
(10,970)
Land Redistribution and Development
185,553
63,455
122,098
34.2%
(5,277)
Land Tenure and Admin Support
176,476
28,103
148,373
15.9%
114
(2,780)
Office of Valuer General -
(2,913)
Total DRDLR
2,115,921
495,578
1,620,343
4,159
714
14.7%
(72,647)

6. DRDLR Per Program Q1 14/15 vs 15/16
25.1
20.7%
24.9%
12.6%
18.9%
10.1%
19.8%
19%
17.8%
17.5%

7. Per Branch R’000 2014/15 Budget 2014/15 Quarter 1 Spending
2014/15 % spent Q1
2015/16 Budget
2015/16 Quarter 1 Spending
2015/16 % spent Q1
1. Administration
1,384,430
263,687
19.0%
1,264,265
249,761
19.8%
Ministerial Services
41,283
7,895
19.1%
41,018
9,999
24.4%
Management
134,457
28,525
21.2%
148,545
29,787
20.1%
Internal Audit
41,046
7,208
17.6%
58,107
9,542
16.4%
Financial Services
373,492
59,988
16.1%
350,763
68,019
19.4%
Corporate Services
499,060
87,912
357,720
57,976
16.2%
Provincial Co-ordination
295,092
72,158
24.5%
308,112
74,438
24.2%
2. Geo-spatial & Cad Serv
733,415
130,708
17.8%
799,903
140,258
17.5%
Nat Geomat Man Serv
548,289
101,026
18.4%
607,854
102,029
16.8%
Spat Plan & Land Use Man
185,126
29,682
16.0%
192,049
38,229
19.9%
3. Rural Development
1,852,332
349,989
18.9%
1,975,739
199,580
10.1%
NARYSEC/SOYD
646,223
197,690
30.6%
331,941
59,731
18.0%
RID
716,784
79,580
11.1%
917,862
95,115
10.4%
REID
489,325
72,719
14.9%
725,936
44,735
6.2%
4. Restitution
2,998,742
747,439
24.9%
2,602,669
328,080
12.6%
5. Land Reform
2,486,386
623,881
25.1%
2,737,108
565,585
20.7%
Land Redis and Dev
2,126,840
601,452
28.3%
2,323,729
470,848
20.3%
Land Tenure and Admin
359,546
22,429
413,379
94,737
22.9%
Total
9,455,305
2,115,704
22.4%
9,379,684
1,483,264
15.8%

8. DRDLR Per Econ Class Q1 14/15 vs 15/16
26.7%
28%
20.2%
20.3%
22.1%
73%
12.6%
6.7%

9. Per Economic Classification
2014/15 Budget
2014/15 Quarter 1 Spending
2014/15 % spent Q1
2015/16 Budget
2015/16 Quarter 1 Spending
2015/16 % spent Q1
Compensation
1,810,352
483,672
26.7%
2,115,921
467,474
22.1%
Goods and services
1,376,764
407,559
29.6%
1,244,685
209,970
16.9%
Interest and Rent on Land
5,678
2,400
42.3% -
724
Payments for fin assets
411
370
Dept. agencies and acc.
1,752,678
436,436
24.9%
1,679,634
394,350
23.5%
Foreign Gov & Internat Organ
2,064
0.0%
1,495
Households
3,997,515
701,644
17.6%
4,253,471
313,488
7.4%
Non Profit Institutions (NPI)
3,020
3,159
790
25.0%
Provincial and local gov.
123,197
52,278
42.4%
8,965
43,267
482.6%
Public Corporations&Priv Ent 1
5,604 %
Build & Other Fixed Structures
7,691
10,401
135.2%
11,781
697
5.9%
Land&Subsoil Assets
201,275
4,642
2.3%
48,260
#DIV/0!
Machinery and equipment
170,284
10,659
6.3%
59,100
3,872
6.6%
Software & Intangible Assets
4,786
1,472
Total
9,455,305
2,115,704
22.4%
9,379,684
1,483,264
15.8%

10. 1. Administration R'000 Current budget Spending Under /
(over) spending
% spent
Drawings to
date
Compensation of employees
709 937
158 513
551 424
22,3%
169 277
10 764
93,6%
Goods and services
521 641
89 134
432 507
17,1%
154 438
65 304
57,7%
Interest and rent on land - 1
(1)
Payments for financial assets
Provincial and local governments
134 34
Departmental agencies and accounts
26,5%
Households 60
107
(47)
178,7%
(107)
Buildings and other fixed structures
697
(697)
Machinery and equipment
32 396
1 307
31 089
4,0%
1 491
184
87,6%
Software and intangible assets 96
Total
1 264 265
249 761
1 014 504
19,8%
325 240
75 479
76,8%

11. 1. Administration Variance Linear Target – 5.2%
The branch spending trend is below the linear target of 25% by 5.2% due to the following:
CoE 9.5% vacancy rate
The delay in processing travel payments. The lead time between the date of initial travel and actual payments takes over 60 days to pay .

12. 2. Geospatial and Cadastral Services
Current budget
Spending
Under /
(over) spending
% spent
Drawings to
date
Compensation of employees
478 210
107 087
371 123
22,4%
116 926
9 839
91,6%
Goods and services
164 705
28 908
135 797
17,6%
41 650
12 742
69,4%
Payments for financial assets -
369
(369)
Provincial and local governments 8 9
Departmental agencies and accounts
119 537
Foreign governments and int. org.
1 495
Non profit institutions
3 159
790
2 369
25,0%
100,0%
Households
23 039
2 935
20 104
12,7%
2 365
(570)
124,1%
Machinery and equipment
8 374
168
8 206
2,0%
2 415
2 247
6,9%
Software and intangible assets
1 376
1 167
Total
799 903
140 258
659 645
17,5%
166 817
26 559
84,1%

13. 2. Geospatial and Cadastral Services
Variance Linear Target – 7.5%
The branch spending trend is below the linear target of 25% by 7.5% due to the following:
Payments for bursary scheme under households have not yet been paid to institutions.
Transfers to Deeds to augment budget and support for ECadastre project have not yet been processed
Due to commitments for consultants under branch SPLUM amounting to R52, 7 million that are not yet translated into expenditure, the bulk of consultants relate to SDF that in turn is dependent on finalizing of projects.

14. 3. Rural Development R'000 Current budget Spending Under /
(over) spending
% spent
Drawings to
date
Compensation of employees
253 424
68 418
185 006
27,0%
64 676
(3 742)
105,8%
Goods and services
165 606
16 560
149 046
10,0%
90 326
73 766
18,3%
Interest and rent on land -
364
(364)
Payments for financial assets
Households
1 551 308
113 987
1 437 321
7,3%
354 118
240 131
32,2%
Machinery and equipment
5 401
251
5 150
4,6%
1 022
771
24,5%
Total
1 975 739
199 580
1 776 159
10,1%
510 142
310 562
39,1%

15. 3. Rural Development Variance Linear Target – 14.9%
The branch spending trend is below the linear target of 25% by 14.9% due to the following:
RID review and realignment of Performance targets for the branch to incorporate Agri parks .
REID has not made any payment to existing SLA as they are currently under review due to reprioritization of Agri Parks
SOYD under spending on households/training. Payments to colleges are processed when they are received from institutions, the expenditure is expected to increase once these invoices are received and paid.

16. 4. Restitution R'000 Current budget Spending Under / (over) spending
% spent
Drawings to
date
Compensation of employees
312 321
70 000
242 321
22,4%
72 240
2 240
96,9%
Goods and services
163 859
33 863
129 996
20,7%
41 496
7 633
81,6%
Interest and rent on land -
359
(359)
Payments for financial assets
Provincial and local governments
5 978
8 726
(2 748)
146,0%
924
(7 802)
944,4%
Households
2 116 295
165 183
1 951 112
7,8%
625 916
460 733
26,4%
Machinery and equipment
4 216
1 689
2 527
40,1%
680
(1 009)
248,3%
Land and subsoil assets
48 260
(48 260)
Total
2 602 669
328 080
2 274 589
12,6%
741 256
413 176
44,3%

17. 4. Restitution Variance Linear Target – 12.4%
The branch spending trend is below the linear target of 25% by 12.6% due to the following:
Delays in the approval of S42D submissions due to processes
Transfers of properties to state instead of CPAs due to community disputes. The expenditures reflects against Capital assets instead of Households
Delays in finalizing the transfers of properties due to Conveyancing issues, this results in payments of final trenches being delayed
Most offices are negatively affected by the new system of appointing conveyances through the SCM processes. The matter is currently being discussed with SCM unit and will be resolved
A slow pace of appointing a panel of researchers for the claims lodged also affected spending on goods and services
The roll-out of mobile units were delayed and thereby affected the projected expenditure in terms of maintenance, travelling, fuel costs, etc.

18. 5. Land Reform R'000 Current budget Spending Under / (over) spending
% spent
Drawings to
date
Compensation of employees
362 029
63 455
298 574
17,5%
79 311
15 856
80,0%
Goods and services
243 717
41 504
202 213
17,0%
72 801
31 297
57,0%
Payments for financial assets -
Provincial and local governments
2 845
34 541
(31 696)
1214,1% 3
(34 538)
,0%
Departmental agencies and accounts
1 560 096
394 350
1 165 746
25,3%
392 751
(1 599)
100,4%
Public corporations and private ent. 1
Households
562 769
31 276
531 493
5,6%
163 575
132 299
19,1%
Machinery and equipment
5 651
458
5 193
8,1%
136
(322)
336,9%
Total
2 737 108
565 585
2 171 523
20,7%
708 577
142 992
79,8%

19. 5. Land Reform
Variance Linear Target – 4.3%
The branch spending trend is below the linear target of 25% by 4.3% due to the following:
Households / Grants: Realignment of projects to Agri-Parks and consequent budget reprioritization .
Goods & Services:
Budget Re-alignment to DMP’s took longer than anticipated as result the procurement was delayed.
The delay in submission of quotations by Service Providers.
The delay in delivery of goods & service by service provider.

20. Agricultural Land Holding Account

21. Executive summary
As at 30 June 2015 spending amounted to R105.9 million, representing 6,9% of the annual appropriation of R1.5 billion
Spending to date consisted mainly of Land Acquisition amounting to R62.2 million, representing 7.3% of the Land Acquisition budget, followed by Recapitalization and Development spending to the amount of R35.1 million, representing 5.2% of the Recapitalisation and Development budget, expenditure on Planning amounted to R8.5 million, representing 52.4% of the relevant budget.
The delay in spending had been due to the reprioritisation of the 2015/2016 budget and the reviewing of projects within the Branch Land Redistribution and Development (LRD) to align to the Agri-Parks programme.
The remedial action taken to address material variances in spending versus the budget is the development of recovery plans to ensure the implementation of the projects as a matter of priority.

22. Consolidation R'000 Current budget Spending Under / (over) spending
% spent
Eastern Cape
3 700
1.7%
Free State
35 406
16.4%
Gauteng
14 302
10.6%
KwaZulu-Natal
15 980
8.7%
Limpopo
14 266
8.1%
Mpumalanga
9 807
4.7%
Northern Cape
11 744
9.6%
North West
366
0.2%
Western Cape
83 958
287
83 671
0.3%
TOTAL
6.9%

23. Land Acquisition R'000 Current budget Spending Under / (over) spending
% spent
Eastern Cape -
Free State
31 026
72 764
29.9%
Gauteng
76 601
6 054
70 547
7.9%
KwaZulu-Natal
4 401
3.7%
Limpopo
12 428
95 496
11.5%
Mpumalanga
Northern Cape
75 096
8 318
66 778
11.1%
North West
Western Cape
44 633
TOTAL
62 227
7.3%

24. Recapitalisation and Development
Current budget
Spending
Under /
(over)
spending
% spent
Eastern Cape
1 423
1.4%
Free State
2 135
1.9%
Gauteng
58 423
8 221
50 202
14.1%
KwaZulu-Natal
62 660
8 395
54 265
13.4%
Limpopo
67 698
1 722
65 976
2.5%
Mpumalanga
9 807
93 108
9.5%
Northern Cape
46 669
3 242
43 427
6.9%
North West
82 258 17
82 241 -
Western Cape
38 650
214
38 436
0.6%
TOTAL
35 176
5.2%

25. Planning R'000 Current budget Spending Under / (over) spending % spent
Eastern Cape
960
2 277
(1 317)
237.2%
Free State -
2 245
(2 245)
Gauteng 27
(27)
KwaZulu-Natal
1 700
3 184
(1 484)
187.3%
Limpopo
626
116
510
18.5%
Mpumalanga
2 097
Northern Cape
311
184
127
59.2%
North West
9 774
349
9 425
3.6%
Western Cape
675 73
602
10.8%
TOTAL
16 143
8 455
7 688
52.4%

26. Registration of Deeds Trading Account

27. Executive summary
Deeds Trading Account generated R149,7 million for the 1st quarter, representing 21% of the projected revenue of R735.6 million. The revenue projected included a transfer/grant amount of R15.9 million expected to be received from the Department for the salaries inflation costs
Spending to date amounted to R114.8 million, representing 17% against the budget of R672.7 million leaving a favourable balance of R62.9 million.
The underspending is due to timing difference on invoices for services that has been rendered.
A matter of serious concern is the fact that as many as six (6) of the Deeds offices had already at this early stage of the year not generated sufficient revenue to cover their operational spending. The under spending at remaining offices have to date still compensated for this over spending of projected revenue/budget, but improvement plans are currently being developed by each office and will be implemented as a matter of urgency to bring the variance down to the PFMA prescribed accepted limit of 5%, as well as to ensure that the Trading Account does not run into a deficit.

28. Executive summary – cont.
E-Cadastre Project
The projected grant amount of R103.6 million for the E-cadastre project’s operational costs has not been received from the Department as per the ENE. R81.5 million is the balance brought forward from previous years’ unspent grant.
Spending to date under E-cadastre amounted to R10.4 million, representing 7% of the total projected spending of R166.2 million for the current year.
Compensation of Employees spending amounted to R4.2 million representing 25% of the total projected spending of R17,4 million for the current financial year.
Goods and services spending for the 1st quarter amounted to R6.2 million representing 0.5 % of the total projected spending of R148.8 million for the current year.
The above figures reflects that the E-cadastre projects to spend funds including the grant of R103,6 million still to be transferred from Department.

29. Expenditure Analysis per office
Budget
April - June 2015
Actual April - June 2015
Variance %
spent
Office of the Chief Registrar of Deeds
36,040
21,258
14,782
59%
Pretoria
36,668
22,605
14,063
62%
Johannesburg
18,407
14,756
3,651
81%
Cape Town
31,426
17,272
14,154
55%
Bloemfontein
4,544
9,363
(4,819)
206%
Pietermaritzburg
14,215
10,868
3,347
77%
Kimberly
733
3,122
(2,389)
426%
Vryburg
1,046
3,107
(2,061)
297%
King Williams Town
1,584
3,180
(1,596)
201%
Umtata
231
2,603
(2,372)
1122%
Nelspruit
4,872
6,759
(1,887)
139%
Total
149,766
114,893
34,873

30. E-cadastre Project R’000 Budget Spending Balance available % spent
Unspent funds from previous years /
Deferred income account
81,527 -
Departmental Grants ( 2015/16 Financial Year)
103,608
Total
185,135
10,422
174,713
6 %
Compensation of Employees
17,422
4,241
13,181
25%
Goods and services
148,778
6,181
142,597
0.5%
Depreciation
166,200
155,778 7%
Surplus/ (Deficit) from Operating Activities
18,935
Assets
763

31. Thank You