1. 2 nd AND 3 rd QUARTER FINANCIAL PERFORMANCE REPORT: 2015-2016 FINANCIAL YEAR PRESENTATION TO PORTFOLIO COMMITTEE ON RURAL DEVELOPMENT AND LAND REFORM 17 FEBRIARY 2016

2. Presentation Outline 1.Executive Summary 2.DRDLR’s Performance per Program and per Economic Classification 3.Agricultural Land Holding Account 4.Deeds Registration Trading Account

3. 3 Executive summary  The Department’s total spending for the 3 rd Quarter amounted to R6.2 billion, representing 67.68% of the adjusted appropriation of R9.2 billion, leaving an available budget of R3 billion.  Performance reflected a 7.5% or R686.4 million under spending of the linear target of 75.0%.  If compared to the spending of the 2 nd Quarter amounting to R3,611 billion or 38.5% of the original appropriation of R9, 4 billion and improvement of R2. 6 billion or nominal increase of 72% quarter on quarter  The main contributor to the aforementioned under spending was Household Transfers spending 17.2% below linear target and specifically under Program Rural Development 47.5% Program: Land Reform 37.1%.; and Program Restitution with 5.6% under spending.  The vacancy rate of 10.68% or 497 funded vacancies also contributed to under spending of Compensation of employees.

4. 4 Per Branch Per Program & Branch R’000 Original BudgetOriginal Budget Quarter 2 Spending Q2 % Spent Adjusted Budget Quarter 3 Spending Available Budget Q3 % Spent % Growth Q2 to Q3 1. Administration 1,264,265 1,264,265 603,706 603,70647.8%1,324,944 939,035 939,035 385,909 385,90970.9%55.5% Ministerial Services 41,018 21,07451.4% 40,866 34,302 6,56483.9%62.8% Management 140,050 62,39044.5% 150,984 101,142 49,84267.0%62.1% Internal Audit 58,107 20,69935.6% 51,181 32,073 19,10862.7%54.9% Financial Services 352,637 178,57650.6% 373,085 260,203 112,88269.7%45.7% Corporate Services 364,341 169,25046.5% 390,838 277,552 113,28671.0%64.0% Provincial Co-ordination 308,112 151,71949.2% 317,990 233,764 84,22673.5%54.1% 2. Geo-spatial & Cad Serv 799,903 799,903 321,472 321,47240.2% 748,063 748,063 491,046 491,046 257,017 257,01765.6%52.7% Nat Geomat Man Serv 609,854 241,09239.5% 533,130 369,642 163,48869.3%53.3% Spat Plan & Land Use Man 190,049 80,38042.3% 214,933 121,405 93,52856.5%51.0% 3. Rural Development 1,975,739 1,975,739 558,197 558,19728.3%1,984,5771,066,971 917,606 917,60653.8%91.1% NARYSEC/SOYD 331,941 145,16143.7% 361,941 233,597 128,34464.5%60.9% RID 917,862 275,37430.0% 926,700 459,597 467,10349.6%66.9% REID 725,936 137,66119.0% 695,936 373,777 322,15953.7%171.5% 4. Restitution 2,602,669 2,602,669 945,671 945,67136.3%2,602,6691,899,345 703,324 703,32473.0%100.8% 5. Land Reform 2,737,108 2,737,108 1,182,214 1,182,21443.2%2,537,1081,815,243 721,865 721,86571.5%53.5% Land Redis and Dev 2,323,529 1,002,07043.1%1,969,8751,539,629 430,24678.2%53.6% Land Tenure and Admin 413,579 180,14443.6% 567,233 275,614 291,61948.6%53.0% Total 9,379,684 9,379,684 3,611,260 3,611,26038.5%9,197,3616,211,640 2,985,721 2,985,72167.5%72.0%

5. DRDLR Per Program Q2 vs Q3

6. 6 Per Economic Classification R ' 000R ' 000 Original Budget Quarter 2 Spending Q2 % Spent Adjusted Budget Quarter 3 Spending Available Budget Q3 % Spent % Growth Q2 to Q3 Compensation Of Employees 2,115,921 960,65845.4% 2,114,885 1,477,395 637,49069.9%53.8% Goods and services 1,501,805 554,02636.9% 1,361,184 911,552 449,63267.0%64.5% Interest And Rent On Land - 725- 300 727 (427)242.4%0.3% Provinces and Municipalities 3,735 66,558 1782.0% 58,204 74,049 (15,845)127.2%11.3% Departmental Agencies and Accounts 1,679,633 804,23647.9% 1,379,491 1,197,520 181,97186.8%48.9% Foreign Governments and International organisations 1,495 -0.0% 2,325 1,722 60374.1%- Public Corporations and Private enterprises 1 -0.0% 1 - 1 - Non-Profit Institutions 3,159 1,58050.0% 3,159 1,580 50.0%0.0% Households 4,048,816 1,116,01827.6% 4,177,787 2,413,993 1,763,79457.8%116.3% Buildings & Other Fix Struct - 1,970- 11,818 3,610 8,20830.5%83.3% Land&Subsoil Assets - 78,213- - 82,552 (82,552)-5.5% Machinery And Equipment 23,320 26,600114.1% 87,955 46,267 41,68852.6%73.9% Software & Intangible Assets 1,799 1568.7% 252 156 9661.9%0.0% Payment for Financial Assets - 516- - 522 (522)-1.2% Total 9,379,684 9,379,684 3,611,255 3,611,25538.5% 9,197,361 9,197,361 6,211,644 6,211,644 2,985,717 2,985,71767.5%72.0%

7. 7 Per Economic Classification

8. 8 1. Administration R ' 000R ' 000 Original Budget Quarter 2 Spending Q2 % Spent Adjusted Budget Quarter 3 Spending Available Budget Q3 % Spent % Growth Q2 to Q3 Compensation Of Employees 709,937 319,93045.1% 697,503 486,505 210,99869.7%52.1% Goods and services 543,867 261,76148.1% 571,185 419,560 151,62573.5%60.3% Interest And Rent On Land - 2- - 3 (3)-51.1% Provinces and Municipalities 137 85.5% 4 12 (8)288.2%52.6% Departmental Agencies and Accounts - 2- 4 2 262.3%0.0% Households - 350- 653 -100.0%86.4% Buildings & Other Fix Struct - 1,970#DIV/0! 11,725 3,517 8,20830.0%78.6% Machinery And Equipment 10,324 19,646190.3% 43,774 28,747 15,02765.7%46.3% Software & Intangible Assets - -- 96 - 0.0%- Payment for Financial Assets - 37- - 36 (36)-(4.4%) Total 1,264,265 1,264,265 603,706 603,70647.8% 1,324,944 1,324,944 939,035 939,035 385,909 385,90970.9%55.5%

9. 9 2. Geospatial and Cadastral Services R ' 000R ' 000 Original Budget Quarter 2 Spending Q2 % Spent Adjusted Budget Quarter 3 Spending Available Budget Q3 % Spent % Growth Q2 to Q3 Compensation Of Employees 478,210 220,94546.2% 479,978 337,731 142,24770.4%52.9% Goods and services 166,157 70,42242.4% 204,594 113,056 91,53855.3%60.5% Provinces and Municipalities 20 14.5% 8 1 718.7%66.4% Foreign Gov&International Organ 1,495 -0.0% 2,325 1,722 60374.1%- Departmental Agencies and Accounts 119,537 15,92913.3% 19,391 15,929 3,46282.1%0.0% Non Profit Institutions (NPI) 3,159 1,58050.0% 3,159 1,580 50.0%0.0% Households 22,973 10,78146.9% 27,695 15,315 12,38055.3%42.1% Machinery And Equipment 6,553 1,28719.6% 10,757 5,184 5,57348.2%302.8% Software & Intangible Assets 1,799 1568.7% 156 0100.0%0.0% Payment for Financial Assets - 372- - 373 (373)-0.2% Total 799,903 799,903 321,472 321,47240.2% 748,063 748,063 491,046 491,046 257,017 257,01765.6%52.7%

10. 10 3. Rural Development R ' 000R ' 000 Original Budget Quarter 2 Spending Q2 % Spent Adjusted Budget Quarter 3 Spending Available Budget Q3 % Spent % Growth Q2 to Q3 Compensation Of Employees 253,424 143,28856.5% 269,057 219,774 49,28381.7%53.4% Goods and services 373,368 39,05010.5% 149,002 79,700 69,30253.5%104.1% Interest And Rent On Land - 364- - (364)-0.0% Households 1,345,679 374,28927.8% 1,556,376 764,934 791,44249.1%104.4% Machinery And Equipment 3,268 1,18236.2% 10,142 2,176 7,96621.5%84.1% Payment for Financial Assets - 22- - (22)-0.0% Total 1,975,739 1,975,739 558,197 558,19728.3% 1,984,577 1,984,577 1,066,971 1,066,971 917,606 917,60653.8%91.1%

11. 11 4. Restitution R ' 000R ' 000 Original Budget Quarter 2 Spending Q2 % Spent Adjusted Budget Quarter 3 Spending Available Budget Q3 % Spent % Growth Q2 to Q3 Compensation Of Employees 312,321 144,39146.2% 312,122 227,699 84,42373.0%57.7% Goods and services 168,419 79,59247.3% 205,640 131,179 74,46163.8%64.8% Interest And Rent On Land - 359 - 300 360 (60)120.0%0.4% Provinces and Municipalities 3,567 18,548 520.0% 8,888 19,053 (10,165)214.4%2.7% Households 2,116,295 621,48629.4% 2,066,464 1,433,473 632,99169.4%130.7% Land & Subsoil Assets - 78,213- - 82,552 (82,552)-5.5% Machinery And Equipment 2,067 3,014 145.8% 9,255 4,953 4,30253.5%64.3% Payment for Financial Assets - 68- - 75 (75)-10.3% Total 2,602,669 2,602,669 945,671 945,67136.3% 2,602,669 2,602,669 1,899,345 1,899,345 703,324 703,32473.0%100.8%

12. 12 5. Land Reform R ' 000R ' 000 Original Budget Quarter 2 Spending Q2 % Spent Adjusted Budget Quarter 3 Spending Available Budget Q3 % Spent % Growth Q2 to Q3 Compensation Of Employees 362,029 132,10936.5% 356,225 205,681 150,54457.7%55.7% Goods and services 249,994 103,20041.3% 230,763 168,056 62,70772.8%62.8% Provinces and Municipalities 11 48,001 436376.3% 49,304 54,983 (5,679)111.5%14.5% Departmental Agencies and Acc1,560,096 788,30550.5%1,360,096 1,181,589 178,50786.9%49.9% Households 563,869 109,11119.4% 526,599 199,618 326,98137.9%82.9% Public Corporations & Priv Ent 1 -0.0% 1 - 1 - Buildings & Other Fix Struct - -- 93 099.7%- Machinery And Equipment 1,108 1,471132.7% 14,027 5,206 8,82137.1%254.0% Payment for Financial Assets - 17- - (17)-0.0% Total2,737,108 1,182,214 1,182,21443.2%2,537,108 1,815,243 1,815,243 721,865 721,86571.5%53.5%

13. Agricultural Land Holding Account Financial Performance as at 31 December 2015

14. 1.As at 31 December 2015 expenditure amounts to R1 076 billion against the annual budget of R1 542 billion, representing 69.8% of the budget. 2.Spending consists of Land acquisition amounting to R739.3 million, representing 86.9% of the Land Acquisition budget, Recapitalisation and Development amounting to R325.5 million, representing 48.2% of the Recap budget and Planning amounting to R11.2 million, representing 69.5% of the Planning budget. 3.In terms of the recovery plans implemented by LRD Branch, expenditure on Land Acquisition managed to improve from 34.4% in the second quarter to 86.9% in the third quarter exceeding the linear target of 75%. 4.Recap expenditure increased from 14% in the second quarter to 48.2%, which still constitutes under performance in terms of the linear target. Expenditure Analysis 14

15. 5. Reason for under-performance on Recap is due to: Delays in processing of payments due to the non compliance by SP/Beneficiaries in submitting the invoices. Delays in packaging of payments after NLARCC /MCM approval /Concurrence. c) Delays in signing of the new Recap contracts, which delay the implementation of projects. 6. Remedial Action to address identified challenges: The team, lead by Chief Directors within the Branch will assist Provinces on unblocking the blockages (Ensure compliance of submissions including signing of contracts and Reconciliation of invoices). Projects with SP and beneficiaries that are non compliance with the reconciliation will be removed from the projections. Expenditure Analysis 15

16. Consolidation 16 R'000 Current budget Actual Spending April – December 2015 Available Budget % Spent First Quarter % Spent Second Quarter % Spent Third Quarter Eastern Cape 178 654 153 420 25 234 1.7% 14% 85.9% Free State 171 941 154 251 17 690 16.5% 42% 89.7% Gauteng 100 198 90 490 9 708 10.6% 39.7% 90.3% KwaZulu-Natal 315 719 122 478 193 241 8.7% 8.4% 38.8% Limpopo 171 205 86 333 84 872 8.1% 29.2% 50.4% Mpumalanga 134 308 84 248 50 060 4.7% 8.2% 62.7% Northern Cape 172 197 157 580 14 617 9.6% 32.2% 91.5% North West 167 995 176 641 (8 646) 0.2% 72% 105.1% Western Cape 129 810 50 704 79 106 0.3% 2.4% 39.1% TOTAL 1 542 027 1 542 027 1 076 145 1 076 145 465 882 465 8826.9% 25.8% 69.8%

17. Land Acquisition 17 R'000 Current budget Actual April – December 2015 Available Budget % spent First Quarter % spent Second Quarter % spent Third Quarter Eastern Cape 114 302 104 855 9 447 0.0% 7.4% 91.7% Free State 103 790 103 456 334 29.9% 49.4% 99.7% Gauteng 76 601 73 532 3 069 7.9% 27.3% 96.0% KwaZulu-Natal 119 425 76 236 43 189 3.7% 10% 63.8% Limpopo 107 923 56 211 51 712 11.5% 38.3% 52.1% Mpumalanga 105 547 61 917 43 630 0.0% 2.2% 58.7% Northern Cape 75 096 78 568 (3 472) 11.1% 58.5% 104.6% North West 103 447 148 221 (44 774) 0.0% 108.8% 143.3% Western Cape 44 634 36 387 8 247 0.0% 0% 81.5% TOTAL 850 765 850 765 739 383 739 383 111 382 111 3827.3% 34.4% 86.9%

18. Recapitalisation and Development 18 R'000 Current budget Actual April – December 2015 Available Budget % spent First Quarter % spent Second Quarter % spent Third Quarter Eastern Cape 63 392 47 945 15 447 1.4% 25% 75.6% Free State 68 151 50 161 17 990 1.9% 30% 73.6% Gauteng 23 597 16 561 7 036 14.1% 299.9% 70.2% KwaZulu-Natal 194 594 39 226 155 368 13.4% 4.4% 20.2% Limpopo 62 656 29 553 33 103 2.5% 13.2% 47.2% Mpumalanga 26 664 22 000 4 664 9.5% 32.2% 82.5% Northern Cape 96 790 78 528 18 262 6.9% 10.9% 81.1% North West 54 774 27 389 27 385 0.0% 13.8% 50.0% Western Cape 84 501 14 178 70 323 0.6% 3.6% 16.8% TOTAL 675 119 675 119 325 541 325 541 349 578 349 5785.2% 14.0% 48.2%

19. Planning 19 R'000 Current budget Actual April – December 2015 Available Budget % spent First Quarter % spent Second Quarter % spent Third Quarter Eastern Cape 960 620 340 237.2% 64.5% 64.6% Free State - 634 (634) 0.0% 0% 0.0% Gauteng - 397 (397) 0.0% 0% 0.0% KwaZulu-Natal 1 700 7 016 (5 316) 187.3% 396.5% 412.7% Limpopo 626 569 57 18.5% 54.6% 90.9% Mpumalanga 2 097 331 1 766 0.0% 6% 13.3% Northern Cape 311 484 (173) 59.2% 326.7% 155.6% North West 9 774 1 031 8 743 3.6% 8% 11.0% Western Cape 675 139 536 10.8%15.1% 20.6% TOTAL 16 143 16 143 11 221 11 221 4 922 4 92253.0% 64.1% 69.5%

20. Registration of Deeds Trading Account Financial performance as at 12 February 2016 and Third Quarter Financial Performance Report (April- December 2015)

21. Executive summary 21 1.Deeds Trading Account generated R480,2 million, representing 67% of the revised projected revenue of R719,9 million. The revenue generated included a transfer/ grant amount of R 15,9 million which was received from the Department to augment salaries. The main source of revenue is Office of Chief Registrar of Deeds for provision of bulk information search of property from Deeds web. 2.Spending as at 31 December 2015 amounted to R396 million, representing 59% against the revised projected budget of R665,9 million. 3.Deeds utilise revenue generated to pay for its operational costs and therefore R52,4 million under spending is favourable as linear target is not applicable and also to ensure that the branch does not run in a deficit, measures have been put in place to monitor spending. 4.Compensation of Employees spending amounted to R321,3 million representing 65% of the projected allocated budget of R496,9 million. The under spending is attributed to the 139 vacant posts that are in the process of being filled. 5.Currently the branch has a total establishment of 1345 posts, filled posts are 1190, and 139 vacant posts 6.The cash flow balance as at 31 December 2015 is R323,9 million.

22. Executive summary – cont. 22 E-Cadastre Project 1.The amount of R81.5 million is the balance brought forward from previous years unspent grants. The Deeds Trading Account augmented E-cadastre project with R24 million from the approved retention surplus of R110,4 million. 2.Spending as at 31 December 2015 for E-cadastre amounted to R23,7 million, representing 44% of the total projected spending of R53.6 million. The total expenditure of R23,7 million includes R2 million for recovery of prepaid expenditure of work-back plan for Gijima and R4,1 million for depreciation. 3.The budget was revised in order to be in line with available funds for the operation of the project.

23. 23 Expenditure Analysis per office R’000 Name of Office Revised Budget Revenue generated April – December 2015 Actual Exp April – December 2015 Variance: Revenue generated & Actual Exp %spent First Quarter %spent Second Quarter % spent Third Quarter Projection s April - December 2015 Over/ under projected Office of the Chief Registrar of Deeds184,188122,98387,23635,74759%62%71%109,29822,062 Pretoria96,019115,24371,51143,73262%62%62%70,998513 Johannesburg71,80661,95649,34512,61181%77%80%52,1362,791 Cape Town77,02196,00453,28242,72255%56%55%52,587695 Bloemfontein58,80514,46129,75015,289206%205%206%37,8508,100 Pietermaritzburg69,18743,82943,13369677%98%98%49,5926,459 Kimberly20,6852,36610,9688,6024265430%464%14,3263,358 Vryburg21,3593,02110,5517,530297%313%349%14,6954,144 King Williams Town18,6874,95910,3835,424201%204%209%13,5073,124 Umtata14,7627449,1418,3971122%1107%1229%10,057916 Nelspruit33,42414,63020,7476,117139%144%142%23,4212,674 Total665,943480,196396,04784,14977%79%82%448,46752,420

24. 24 Consolidation R’000 Revenue Budget Actual Revenue April- December 2015 April- December 2015Variance:% First Quarter % Second Quarter % Third Quarter Revenue703,957464,267239,69021%42%66% Departmental Grants15,92915,929--100%100% Total Revenue 719,886 719,886 480,196 480,196239,69021%44%67% Compensation of Employees496,912 321,275 175,63722%42%65% Goods and services 149,531 65,05584,4767%25%41% Depreciation 19,5009,717 9,78312% 71% Total Operating Expenditure 665,943 665,943 396,047 396,047269,89617%37%59% Surplus/ (Deficit) from Operating Activities 53,943 53,94384,149(30,206)--- Assets 39,5183,41936,0995% 9%

25. E-cadastre Project 25 R’000 Revised Budget Revised BudgetSpendingBalanceavailable% Spent First Quarter % spent Second Quarter % spent Third Quarter Retained surplus81,527 - -- Transfer from Approved Retention Surplus 24,000 - - - Total 105,527 105,527 23,702 23,702 81,825 81,8256%9%22% Goods and services 53,60029,815 23,7855%17%56% Less: Recovery of prepaid expenditure work-back plan (2,024) Depreciation(4,089) Total 53,600 53,60023,702 29,898 29,8987%17%44% Surplus/ (Deficit) 51,927 51,927 - - Assets 763 -0.0%

26. Thank You 26