Quarter 4 DRDLR’s 2017-2018 Financial Performance Report Presentation to the Portfolio Committee on Rural Development and Land Reform 30 May 2018

Overall financial performance Drawings for the quarter amounted to R2.420 billion. However, expenditure for the quarter amounted to R4.054 billion which means that drawings were overspent by 68%. However, funds were available in the bank (due to unspent funds from the previous quarters ) account to accommodate this expenditure. Departmental expenditure to date amounted to R10.078 billion or 99 per cent of the adjusted appropriation of R10.184 billion, leaving total unspent funds of R105.9 million. Unspent funds were mainly due to vacant posts. 2

Drawings vs spending per programme Overspending areas were mainly due to fast tracking of projects that lagged from previous quarters. 3

Drawings vs spending per Economic class Overspending mainly on G&S was due to transfer of capital contribution towards the construction of the new building through a PPP transaction; HH overspending was due to fast-tracking of projects that lagged from the previous quarters; Prov. & Local Govt. was payment of rates and taxes owed from the municipalities; Land and Subsoil Assets due to acquisition of land that had to be registered in the department’s name pending finalisation of the claims. 4

Budget vs Spending per programme 5

Budget vs Spending per Economic Class 6

Quarterly Comparison of expenditure per programme 7

Quarterly Comparison of expenditure per Eco class 8

4TH QUARTER FINANCIAL PERFORMANCE ALHA 4TH QUARTER FINANCIAL PERFORMANCE

OVERALL FINANCIAL PERFORMANCE Drawings for the quarter amounted to R 368 million. However, expenditure for the quarter amounted to R 279 million representing by 76%. Entity expenditure to date amounted to R 745 million or 51% of the adjusted appropriation of R 1.4 billion, leaving total unspent funds of R 974 million. Unspent funds were mainly due to low spending in the following programmes One Household One Hectare (1H1H) 29% Strengthening of Relative Rights (SRR) 2% Recap Commitments 38% Planning 27% 2

Q4 DRAWINGS VS SPENDING PER PROGRAMME 3

Q4 BUDGET VS SPENDING PER PROGRAMME

YEAR-TO-DATE BUDGET VS SPENDING PER PROVINCE 5

QUARTERLY COMPARISON OF EXPENDITURE PER PROGRAMME 6

QUARTERLY COMPARISON OF EXPENDITURE PER PROVINCE 7

Registration of Deeds Trading Account Fourth Quarter Financial Performance report : (01 January – 31 March 2018) .

Executive summary The Deeds Registration Trading Account is a self-funding trading entity generating its own income, mainly from the registration of deeds and the sale of deeds registration information, of which revenue generated represents budget. In terms of PFMA Trading entities are not allowed to budget for deficit unless there are special arrangements, as a result of these the expenditure projected was aligned to the revenue projected. Deeds Trading Account (billed) R136 million revenue and collected R135 million revenue representing R1 million under collection. The entity projected R175,6 million revenue to be billed and collected for fourth quarter; but received R139,1 million which includes interest from the bank, resulted in under collection of R 36,5 million and represents 79% of the projected revenue of R175.6 million. The entity collected 99% of the billed amount which is above 95% set target on collection. Debtors are given 30 days after billing to settle their accounts and are suspended after 30 days and handed to debt collector after 90 days Revenue collected in the third quarter amounted to R192,9 million which represented 99% of the R194,6 million revenue billed. When comparing revenue collection between two quarters,(3rd quarter R192,9mil) and (4th quarter R135 mil) there is a decrease in collection of R57,9 million. Spending on compensation of employees amounted to R117,5 million representing 84% of their projections of R139,5 million. Deeds spending on goods and services amounted to R53,3 million, representing 98,5% of the projected spending of R54,1 million. Revenue collected amounted to R135 million vs expenditure of R170,8 million which represents 127% of spending vs revenue collected, leaving negative balance of R35,8 million. When comparing the spending vs revenue collected for both quarter 3 and 4, on the third quarter was 90% and 127% on fourth quarter.

Consolidation : Economic Classification R’000 Quarter 4 Projected Revenue Quarter 4 Revenue collected Variance Quarter 4 % Quarter 3 Quarter 2 Quarter 1 Revenue 171 461 135 047 36 414 78,8% 112% Interest 4 212 4 111 101 97,6% 121% Total Revenue 175 673 139 158 36 515 79,2% 113% 66.1% 20% Economic Classification Quarter 4 Projected Expenditure Quarter 4 Actual spending Compensation of Employees 139 531 117 567 21 964 84,3% 89% 61.3% 21.0% Goods and services 54 121 53 312 809 98,5% 122% 78.5% 6.0% Depreciation 14 833 8 717 6 116 58,8% 57% 55.5% Total Operating Expenditure 208 485 179 596 28 889 86,1% 93% 65.8% 18.0% Assets 959 483 476 50,4% 58% 3.0% 5.0% Surplus/ (Deficit) from Operating Activities (32 812) (40 438)

Expenditure per office- Economic Classification Name of Office Quarter 4 Revenue Generated ( Billed) Quarter 4 Revenue collected Quarter 4 Comp of Employees Quarter 4 Goods and Services Quarter 4 Assets Q4 Total Exp Variance: Revenue Collected & actual exp Q4 % Spent OCRD 31 056 30 428 14 664 38 050 23 52 714 (22 286) 173% PTA 29 362 29 319 24 000 3 091 27 091 2 228 92% JHB 17 585 17 567 15 506 1 950 90 17 456 111 99% CPT 28 509 28 482 18 492 2 117 35 20 609 7 873 72% PMB 11 324 11 316 14 415 2 008 60 16 423 (5 107) 145% BLM 4 364 4 095 9 702 1 332 38 11 034 (6 939) 269% KIM 1 191 3 169 722 212 3 891 (2 700) 327% VRY 848 3 254 769 4 023 (3 175) 474% KWT 4 626 3 293 1 223 4 516 110 98% UMT 264 2 093 299 2 392 (2 128) 906% NEL 4 031 4 026 6 149 1 232 7 381 (3 355) 183% LMP 2 885 2 830 519 25 3 349 (464) 116% Total 136 045 135 047 117 567 53 312 483 170 879 (35 832) 127%

Revenue collected in Q 1 v/s Q 2 v/s Q3 v/s Q4 Name of Office Quarter 1 Revenue Generated ( Billed) Quarter 1 Revenue collected Quarter 2 Revenue Generated ( Billed) Quarter 2 Revenue collected Quarter 3 Revenue Generated ( Billed) Quarter 3 Revenue collected Quarter 4 Revenue Generated ( Billed) Quarter 4 Revenue collected OCRD 39 965 35 108 51 032 28 702 41 364 40 266 31 056 30 428 PTA 37 519 35 252 35 170 23 975 46 893 46 847 29 362 29 319 JHB 20 119 19 460 21 460 14 895 24 351 24 322 17 585 17 567 CPT 36 964 35 155 37 917 25 573 43 274 43 224 28 509 28 482 PMB 14 136 9 274 15 555 10 743 17 329 17 322 11 324 11 316 BLM 4 554 3 835 4 885 2 631 5 654 5 304 4 364 4 095 KIM 1 090 1 074 1 428 961 1 615 1 191 VRY 852 767 842 644 1 204 1 203 848 KWT 1 597 1 580 1 811 1 248 2 010 2 009 4 626 UMT 322 313 272 211 306 264 NEL 3 911 3 838 4 213 2 955 5 853 4 031 4 026 LMP 1 298 3 279 2 113 4 727 2 885 Total 162 327 146 954 177 864 114 651 194 580 192 998 136 045 135 047

Performance per Quarter 6

Quarter 4: Performance per Office 7

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