Quarter 1

DRDLR’s 2017-2018 Financial

Performance Report

Presentation to the Portfolio

Committee on Rural Development and

Land Reform

6 September 2017

Summary The departmental expenditure as at end of the 1st quarter was R1,495 billion or 14.7%

of the allocated budget of R10,184 billion which leaves R8,690 billion available to be

spent for the remaining months.

The expenditure reflect an under – spending of R1,160 billion, or 56.3% of the drawings

of R2,654 billion.

The under spending was mainly under the following programmes:

Restitution under spent by R759.6 million;

Administration under spent by R191.9 million

Rural Development under spent by R116.8 million;

Land Reform under spent by R75.4 million; and

NGMS under spent by R15.9 million.

2

Departmental expenditure per programme

Programmes

ENE Spending Available budget % spent

R’000 R’000 R’000 %

1: Administration 1 721 620 308 035 1 413 585 17.9%

2:NGMS 672 117 138 494 533 623 20.6%

3:Rural Development 1 914 896 244 734 1 670 162 12.8%

4: Restitution 3 247 384 289 398 2 957 986 8.9%

5: Land Reform 2 628 223 513 964 2 114 259 19.6%

TOTAL 10 184 240 1 494 625 8 689 615 14.7%

3

Low expenditure was mainly due to challenges experienced with BAS conversion from V4 to V5 which also resulted in late registering of projects.

Expenditure share per Programme 4

Departmental expenditure per Economic Classification

ECON CLASS Budget Expenditure

Available

budget % spent

R’000 R’000 R’000 %

Current Payments 3 910 050 746 816 3 163 235 19.1%

Compensation of Employees 2 194 584 514 620 1 679 965 23.4%

Goods and Services 1 715 466 231 931 1 483 535 13.5%

Interest and Rent on Land - 265 (265) 0.0%

Transfer and Subsidies 6 249 257 733 597 5 515 660 11.7%

Depart Agencies & Acc 1 493 134 363 858 1 129 276 24.4%

Foreign Gov & Int Org 1 653 - 1 653 0.0%

Households (HH) 4 683 435 358 036 4 325 399 7.6%

Non Profit Institutions 3 492 873 2 619 25.0%

Provincial and Local Gov 67 542 10 830 56 712 16.0%

Public Corp & Private Ent 1 1 0.0%

Payments Capital Asset 24 933 14 212 10 721 57.0%

Machinery and Equipment 24 004 4 429 19 575 18.4%

Software and Other Intang Assets 929 0 929 0.0%

Land & Subsoil Assets - 9 784 -9 784 -

Total 10 184 240 1 494 625 8 689 615 14.7%

5

Priorities expenditure

6

Priorities Expenditure Budget Expenditure Available Budget % Spent

R’000 R'000 R’000 %

Rural Infrastructure Development 814,432 98,595

715,837 12.1%

Rural Enterprise and Industrial

Development 384,000 16,640

367,360 4.3%

NARYSEC 356,025 42,930

313,095 12.1%

Land Claims 2,609,078 167,116

2,441,962 6.4%

Land Reform 493,988 31,214

462,774 6.3%

Sub Total 4,657,523 356,495

4,301,028 7.7%

Recapitalisation* 327,882 18,812

309,070 5.7%

Land Acquisition* 947,871 34,521

913,350 3.6%

Sub Total 1,275,753 53,333

1,222,420 4.2%

Grand Total 5,933,276 409,828

5,523,448 6.9%

* Recap & La Acquisition within ALHA

R42.9

million R16.6 million

R34.5

million

R167.1 million R31.2

million

R18.8 million

R98.6 million

Land

Acquisition

R34.5 million

REID

R16.6 million

Land Claims

R167.1 million

NARYSEC

R42.9 million

Recap /1H1H

R18.8 million

RID

R98.6 million

Land Reform

R31.2 million

Expenditure per priority Budget: R5.933 billion

Expenditure: R409.8 million

Percentage Spent: 6.9 per cent

Agricultural Land Holding

Account (ALHA)

Financial Performance

Quarter 1 of 2017-2018

9

-

20

40

60

80

100

120

140

160

180

Consolidated Spending

ORIGINAL BUDGET CURRENT YEAR EXPENDITURE

10

-

5 000

10 000

15 000

20 000

25 000

30 000

35 000

40 000

45 000

EC FS GP KZN LP MP NC NW WC SRR Drought H/O

Spending vs Drawings

DRAWINGS / TRANSFERSTO DATE

CURRENT YEAR EXPENDITURE

Consolidated Spending

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PROVINCE ORIGINAL BUDGET

CURRENT YEAR

EXPENDITURE BUDGET AVAILABLE

%

SPENT

R’000 R’000 R’000 %

Eastern Cape 162 500 1 264 161 236 1%

Free State 134 500 22 637 111 863 17%

Gauteng 119 000 10 135 108 865 9%

KwaZulu-Natal 174 630 2 324 172 306 1%

Limpopo 152 800 2 161 150 639 1%

Mpumalanga 159 920 2 067 157 853 1%

Northern Cape 132 256 9 645 122 611 7%

North West 172 857 1 073 171 784 1%

Western Cape 86 634 477 86 157 1%

Transfers to NEF (SRR) - - - -

Drought - 3 083 (3 083) -

Head Office 124 504 17 782 106 722 14%

Total 1 419 601 72 648 1 346 953 5%

Consolidation-Spending vs Drawings

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PROVINCE DRAWINGS TO DATE

CURRENT

EXPENDITURE

UNDER/(OVER)

SPENT

%

SPENT

R’000 R’000 R’000 %

Eastern Cape 40 625 1 264 39 361 3%

33 625 22 637 10 988 67%

Free State 29 751 10 135 19 616 34%

Gauteng 43 657 2 324 41 333 5%

KwaZulu-Natal 38 200 2 161 36 039 6%

Limpopo 39 981 2 067 37 914 5%

Mpumalanga 33 064 9 645 23 419 29%

Northern Cape 43 214 1 073 42 141 2%

North West 21 658 477 21 181 2%

Western Cape - - -

Drought - 3 083 (3 083) 0%

Head Office 31 126 17 782 13 344 57%

Total 354 901 72 648 282 253 20%

Land Acquisition

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PROVINCE ORIGINAL BUDGET

CURRENT YEAR

EXPENDITURE

UNDER / (OVER )

SPENT

%

SPENT

R’000 R’000 R’000 %

Eastern Cape 119 070 - 119 070 0%

Free State 99 666 22 452 77 214 23%

Gauteng 89 670 2 627 87 043 3%

KwaZulu-Natal 127 400 - 127 400 0%

Limpopo 117 600 - 117 600 0%

Mpumalanga 124 578 - 124 578 0%

Northern Cape 86 352 9 442 76 910 11%

North West 139 794 - 139 794 0%

Western Cape 43 741 - 43 741 0%

Transfers to NEF (SRR) - -

Total 947 871 34 521 913 350 4%

Recap and Development

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PROVINCE ORIGINAL BUDGET

CURRENT YEAR

EXPENDITURE

UNDER/(OVER)

SPENT

%

SPENT

R’000 R’000 R’000 %

Eastern Cape 41 000 1 190 39 810 3%

Free State 32 800 - 32 800 0%

Gauteng 27 500 7 408 20 092 27%

KwaZulu-Natal 44 630 2 284 42 346 5%

Limpopo 32 800 2 106 30 694 6%

Mpumalanga 32 800 1 668 31 132 5%

Northern Cape 44 142 - 44 142 0%

North West 30 210 1 073 29 137 4%

Western Cape 42 000 - 42 000 0%

Drought - 3 083 (3 083) 0%

Total 327 882 18 812 309 070 6%

Planning

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PROVINCE ORIGINAL BUDGET

CURRENT YEAR

EXPENDITURE

UNDER / (OVER)

SPENT

%

SPENT

R’000 R’000 R’000 %

Eastern Cape 2 430 74 2 356 3%

Free State 2 034 185 1 849 9%

Gauteng 1 830 100 1 730 5%

KwaZulu-Natal 2 600 40 2 560 2%

Limpopo 2 400 55 2 345 2%

Mpumalanga 2 542 399 2 143 16%

Northern Cape 1 762 203 1 559 12%

North West 2 853 - 2 853 0%

Western Cape 893 477 416 53%

Total 19 344 1 533 17 811 8%

Summary-ALHA Budget

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Summary Budget Total spent Available budget % Spent

Land Acquisition 422 871 34 521 388 350 8%

Recap & Development 327 882 15 729 312 153 5%

Planning 19 344 1 533 17 811 8%

SRR (50/50) 525 000 - 525 000 0%

Drought - 3 083 -3 083 0%

Total Provincial 1 295 097 54 866 1 240 231 4%

Head Office 124 504 17 782 106 722 14%

Total ALHA Budget 1 419 601 72 648 1 346 953 5%

Registration of Deeds Trading

Account .

Quarter 1 of 2017/18

Executive summary

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1. Deeds Trading Account collected R168 million, which includes R4,4 million interest received from bank as at 30 June 2017.

2. Revenue collected amounted to R168 million vs. total payment of R142 million, which represents 84% of spending vs revenue collected,

leaving positive balance of R26 million.

3. Spending on compensation of employees amounted to R110 million representing 20% of the projected spending of R548,3 million.

4. Spending on goods and service to date amounted to R31,8 million, representing 20% of the projected spending of R158,1 million.

5. The cash balance as at 30 June 2017 was R326,7 million

6. Deeds Trading Account will request the approval of retention surplus on cash available from the bank as at 31 March 2017 to pay

accruals of R48,7 million; provisions of R17,1 million; commitment amount of R40,2 million; IT Software support and maintenance

(licences for Oracle) amounting to R12,6 million ; IT Hardware (Oracle Premium support) for R10, 2 million and PPP amount of R100

million.

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Consolidated Deeds R’000 Revised Projected

Revenue v/s

Spending

Revenue

collected v/s

Actual spending

Variance:

Projections v/s

Actuals

%

Revenue 674 953 163 171 511 782 24%

Interest Received: STD Bank 16 225 4 418 11 807 27%

Other Income 58 056 857 57 199 1%

Total Revenue 749 234 168 446 580 788 22%

Compensation of Employees 548 298 110 368 437 930 20%

Goods and services

158 142

31 826

126 316

20%

Total Operating Expenditure 706 440 142 194 564 246 20%

Surplus/ (Deficit) 42 794 26 252 16 542

Assets 32 198 17 767 14 431 55%

Financial Performance: Per Economic Classification

Deeds Cash Flow Analysis

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R’000

Opening Bank balance as at 01/04/2017 318 239

Current year Allocation

Revenue 163 171

Spending (159 961)

Balance as at 30/06/2017 3 210

Bank Balance

Opening Balance as at 01/04/2017 318 239

Balance as at 30/06/2017 3 210

Interest Received bank 4 418

Other Income 857

Balance as at 30/06/2017 326 724

Thank You

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