1. Department of Land Affairs
Presentation to the Joint Budget Committee on the 2007 Medium Term Budget Policy Statement November Ms Cathy Motsisi Acting Chief Financial Officer

2. Contents Purpose Expenditure Trends and Audit outcomes for 2006/07
Mandate & Medium Term Policy Priorities
MTEF Allocations
Infrastructure & Maintenance budget
Transfer & Grants Management
Personnel Establishment and vacancy ratios
Skills Development & Training Programmes
Monitoring & Evaluation systems

3. Purpose The purpose of this presentation is to present:
the Medium Term Expenditure Framework and the audit outcomes for 2006/07 to the JBC
to comment on the efficiency and effectiveness of systems and practices put in place to manage the activities of the Department
to discuss measures put in place to address challenges and shortcomings

4. Five Year Expenditure Trends
73%
99,9%
98%
97%
99%
R1,091b
R1,655b
R2,031b
R3,897b
R3,730b

5. Benchmark Spending for 6 months is 50.%
SPENDING VS BUDGET FOR THE FIRST 6 MONTHS OF THE YEAR CURRENT FINANCIAL YEAR
PROGRAMME
BUDGET
2006/07
2007/08
Spending to date
Exp vs.
Budget
R ‘000
R’000 %
1 Administration
39.97%
2 Surveys & Mapping
79 155
28 220
28.13%
3 Cadastral Surveys
92 283
56 674
56.47%
4 Restitution
59.38%
5 Land Reform
27.65%
6 Spatial Planning
22 586
30 756
7 506
24.40%
7 Auxiliary & Ass.
8 129
12 593
2 876
22.84%
TOTAL
48.95%
Benchmark Spending for 6 months is 50.%

6. Adjustment Estimates for 2007/08
The Department submitted a Treasury Committee memorandum requesting the following adjustments to the current budget:
R1 bil - to augment the funding needs under Programme 4, Restitution
R18 mil - for ICT needs
R67 million for the State Land Audit and the finalization of the Area based Plans
Save to say only R250 million was approved for the Richtersveld claim. The Department is presently looking at reprioritising within Programmes to fund the prioritised activities

7. FINANCIAL PERFORMANCE 2006/07 The Department has achieved a record spending of 99.88% (2005/06: 73.08%) against the adjusted appropriation of R3,73 billion for the year under review.
2006/07
R’000
2005/06
Budget allocation
3,73 billion
3,90 billion
Actual Expenditure
3,72 billion
2,85 billion
Spending as a percentage
99.88%
73.08%
Unspent funds
4,65 million
1,05 billion
Unspent funds as a percentage
0.12%
26.92%
The Restitution and Land Reform Programmes represent 85% of the Departmental adjusted appropriation.
Interventions put in place during the year yielded positive results as both programmes managed to spend 100% of their allocated budgets for capital transfers to household.

8. Audit Report 2006/07 The Department received a qualified
audit opinion on:
Asset Management
Rental Revenue Receivable from Leased Land

9. Asset Management Finding
Assets could not be located for physical verification
Asset register did not comply with the minimum requirements of the Asset Management Guidelines; e.g. order numbers not recorded
Root Cause
Initial take-on of assets in 2002/03 had a number of serious flaws
Non compliance with the Departmental Policy and Procedures
Capacity
Interventions to address the problems:
Reconcile the 2002/03 information – retrieve source documents for proper classification and capturing of order numbers
Continue with the robust identification of non-verified assets
Clean the register to reflect a true record
Capacitate the unit
Enforce compliance with the policy

10. Rental Revenue Receivable from Leased Land
Finding
Incomplete information on all land available for leasing
Revenue collected through the Power Of Attorney (POA) agreements to be transferred to the National Revenue Fund
Incomplete and inaccurate information
Root Cause
Lack of approved policies to govern the relationship regarding the revenue collected through POA
Lack of a complete database/register of leased land
Lack of a debtors management system
Inadequate contract management
Significant progress has been made to institutionalize the management of leased state land and some of the key achievements are:-
Creating capacity in the PLRO - 49 posts created for the management of state land in order to capacitate provincial land reform offices.
Development of a lease contracts and debtors application system which is now going through a user acceptance testing phase.
Setting up of systems for integrating revenue collection from Provincial Departments of
Agriculture (POA)

11. Mandate & Medium Term Policy Priorities

12. Alignment of Spatial plans
Strategic Context
Interventions and participation of the State in the land market to accelerate land redistribution
Enhanced access to and/or ownership of land by people living on farms to improve their livelihoods and economic opportunities
Contribution to Poverty Alleviation and Economic Development through Land Reform and
Administration
Development of capacity building models and programmes for Land Reform Beneficiaries, DLA employees and other Key Stakeholders
Alignment of Spatial plans
Economic Growth
Security of Tenure
Reduction of un- employment
Agrarian Reform
Housing

13. Strategic Objective Core Objectives
Redistribution of 30% of white-owned agricultural land by for sustainable agricultural development.
2.Provision of tenure security that creates socio-economic opportunities for people living and working on farms and in communal areas.
3.Provision of land for sustainable human settlements, industrial and economic development.

14. Strategic Objective Core Objectives cont.
4.Provision of efficient land use and land administration services.
5.Provision of efficient State Land management that support development.
6.Provision of skills development framework for land and agrarian reform to all relevant stakeholders.
7.Development of programmes for the empowerment of women, children, people with disabilities and those living with HIV/Aids and older persons within the context of the Department’s mandate.

15. Challenges
Major challenges facing the Department, and therefore contributing to the much debated slow pace of land reform delivery, are to a large extent attributable to:
Insufficient financial resources
High land prices
Capacity constraints
Lack of appropriate funding models
Providing training, and technical support to land reform beneficiaries which is critical for sustainable land & agrarian reform
Integrated planning

16. Challenges cont. Finalizing restitution process in 2007/2008
Managing risks inherent in the restitution and redistribution ‘high drive’
The need for organized agriculture must demonstrate more concrete commitment to land reform
Increasing the culture of respect for land rights of vulnerable groups like labour tenants, occupiers and other farm dwellers

17. Initiatives to address the challenges
In order to address the unacceptable slow pace of land delivery as well as promote integrated development, the Department has adopted the Pro-active Land Acquisition Strategy (PLAS) whereby prime agricultural land is acquired pro-actively based on the lands needs expressed in the Provincial Growth and Developmental Strategies.
Other initiatives include strengthening of the relations with the key stakeholders like organized agriculture and NGO’s for post settlement support.
Alignment of the implementation plans with the Department of Agriculture for improved and timely provision of agricultural support.

18. Initiatives to address the challenges cont.
Presidential Priority of delivering 5 million ha of agricultural land by 2008/09 which will be driven through the special project.
Review of the grants models to enable a better means of providing land to the beneficiaries.
Fast tracking the vesting of state land to create an enabling environment for restitution and redistribution.
Revised delegations and increased capacity for the restitution and redistribution programmes.
Discussions with NT with regard to the development of a strategy towards curbing the high land prices.

19. Risk Assessments
Risk management forms an integral part of the total management process of the Department, and to this end, the “BARNOWL” Risk assessments tool was procured for data management, monitoring and continuous review of the risk register.
Periodical performance audits are also conducted by Internal Audit.
Risk assessment registers are reviewed annually and aligned to the business processes and operational plans.

20. Planning Assumptions
In our planning for accelerated land delivery the following assumptions are taken into consideration:
Government will provide a reasonable budget
There will be a robust effort to source the relevant capacity
There will be strong partnering with the Department of Agriculture and organized agriculture for post settlement support and transfer of skills
Prime Agricultural land will be identified through various mechanisms like the Area Based Planning
Provision of training to land reform beneficiaries
Bringing in strategic partners for support and sustainability of projects

21. New Policy Options

22. Activities not catered for in the current baseline
Presidential priority in respect of land reform to redistribute 5 million hectares of prime agricultural land in the next two years.
The settlement of remaining restitution claims in the next three years.
Capacity building through the phased-implementation of the new organisation structure by creating and filling
1 221 posts.
Scaling up of Information, Communication and Technology (ICT) to respond to the increase in number of users, business requirements and technology deficiencies.

23. Financial Implications of the Policy Options
2008/09
R’000
2009/10
2010/11
TOTAL
Redistribution of 5 million hectares (Presidential Priority)
18,665 b
20,522 b
21,757 b
60,944 b
Settlement of restitution claims
1,289 b
2,273 b
1,568 b
5,130 b
Filling of new posts and the concomitant operating costs (proposed new structure)
492,4 m
696,4 m
1,021 b
2,210 b
Scaling up of ICT
109 m
64 m
53,1 m
226 m
20,556 b
23,556 b
24,400 b
68,510 b

24. Indicative Baseline Allocation for the new MTEF 2008/09 – 2010/11

25. 2008 MTEF Per Programme excluding Policy Options
Programmes
2007/08
2008/09
R’m
2009/10
2010/11
P1: Administration
P2: Surveys & Mapping
88 189
95 053
P3: Cadastral Surveys
P4: Restitution
P5: Land Reform
P6: Spatial Planning
30 756
32 286
34 194
36 246
P7: Aux Services
12 593
13 321
14 025
14 867
Total

26. 2008 MTEF Per Regional Land Claims Office
Provinces
2008/09
R’m
2009/10
2010/11
Eastern Cape
Free State
Gauteng
Kwa Zulu Natal
Limpopo
Mpumalanga
Western Cape
Total

27. 2008 MTEF Per Provincial Land Reform Office
Programmes
2008/09
R’m
2009/10
2010/11
Eastern Cape
Free State
Gauteng
Kwa Zulu Natal
Limpopo
56 838
73 131
77 525
Mpumalanga
Northern Cape
North West
Western Cape
Total

28. Year on Year comparison of budget against hectares delivered

29. Economic Classification
Impact of the Proposed new baseline including policy options for the period 2008/09 – 2010/11
2008/09
2009/10
2010/11
Economic Classification
Current
baseline
R’m
Additional Funding Proposed
New Baseline
Compensation of employees
580
556
1,136
612
744
1,356b
648
951
1,599b
Goods & Services
459
377
836
489
393
882
519
512
1,031
Transfers to Households
4,909b
8,465b
13,374b
4,041b
10,196b
14,237b
4,284b
9,991b
14,275b
Capital Assets 42 58
100 44 14 47 9 56
Land & Subsoil -
11,098b
12,206b
12,936b
Others 5 2 7 1 6
TOTAL
5,995b
20,556b
26,551b
5,191b
23,555b
28,746b
5,503b
24,400b
29,903b

30. Infrastructure & Maintenance Budget
2008/09
R’000
2009/10
2010/2011
Capital Works
10 162
10 772
11 419
The Infrastructure budget relates to payment for repairs and maintenance of building largely to Public Works.
Internal controls are in place for ensuring value for money, this include constant reconciliation of payments and quality control of work done.

31. Systems for the Transfers and Grants Management
Restitution
Delegations up to R100million given to Commissioners
Quality Assurors have been appointed to provide support to commissioners with regard to risk and financial management
Information Management Unit ensures that approved claims are properly recorded
Effective control measures and segregation of duties in place
Payment is done on original documents and centrally at National Office

32. Systems for the Transfers and Grants Management
Redistribution
Every project is loaded on BAS
Grants are approved through the Provincial Grants Approval Committees
Delegations given to Land Reform Chief Directors
Payments are centrally done at National Office – (Safety net)
Clear segregation of duties

33. Personnel Establishment and Vacancy ratios

34. Personnel Establishment and Vacancy ratios
Programme
Number of posts
Number of posts filled
Number of vacant posts
Vacancy Rate
Administration
767
516
251
33%
Surveys and Mapping
254
217 37
15%
Cadastral Surveys
562
434
128
23%
Restitution
1,135
642
493
43%
Land Reform
722
547
175
24%
Spatial Planning 96 35 61
64%
Deeds Registration
1,236
962
274
22%
Total
4,772
3,353
1,419
30%

35. Analysis of Vacant Posts
Description
Numbers
Vacant Posts as 16 March 2007
1186
New appointments
425
Internal Promotions
375
TOTAL POSTS FILLED BY OCT 07
800
POTENTIAL O/S VACANCIES
386
Add: Internal Promotions
Deaths 9
Resignations
168
Retirements 26
Dismissal 5
New balance of Vacant Posts
969
And therefore effectively only 217 posts were filled
217

36. Skills Development & Training Programme
Internship Programme
Assist DLA create a pool of suitably qualified and skilled people to drawfrom by equipping students with necessary practical experience.
Bursary Scheme
DLA has 168 prospective bursary holders studying degrees and
diplomas in Geomatics, Surveys, Cartography, Town and Regional
Planning at various Universities and Technikons.
22 diploma and 6 degree students are to complete their qualification at the end of this year and be placed in Branch LPI in 2008.

37. Graduate Programme
The DLA has embarked on the above programme to build capacity and fill vacant entry level positions
Graduates undergo a structured training programme and practical work experience and sign a 4 year contract
Training is done by DLA in partnership with different tertiary institutions
21 graduates commenced in deeds on 1 Oct 07 and other branches will follow in a staggered approach. All graduates have allocated mentors

38. Human Resource Development Strategy
Officials
The Department is currently in the process of conducting a skills audit of all employees at different levels. This exercise is aimed at identifying the current skills gaps, job fit, and training needs in order to create a knowledgeable and productive workforce.
Beneficiaries
An MOU with the University of Fort Hare. Through this partnership training programmes for land reform beneficiaries in the Eastern Cape have been developed. Training for beneficiaries will commence in November.
Consultation with stakeholders and beneficiaries in all provinces are continuing to develop a skills development framework.

39. Monitoring & Evaluation Systems
Risk and Compliance Directorate have developed standardised systems and procedures for components to report on operational plans.
The Monitoring and Evaluation Directorate on the other hand, has been more closely aligned and its capacity increased to capacitate it to monitor (as well as report on) both the organisational performance as well as validate effectively, source of information.
Operational and Financial performance is also monitored closely through various structures in the Department, the Strategic Committee (STRATCOM) which meets monthly to discuss strategic issues including operational and financial performance.

40. Monitoring & Evaluation Systems cont.
The Department is in the process of implementing an electronic system called “project tracking tool” which enhance the close monitoring of projects.
Performance agreements and work plans are actively monitored by the Human Resource section. Assessments are also conducted quarterly for junior staff and annually for senior managers.

41. In Conclusion….
Yes indeed, it is not only the budget that will enable the Department to reach the 2014 target, but an integrated radical approach that will provide progressive systems, mechanism and capacity for accelerated land reform.
On the other hand, the challenges faced by the Restitution programme clearly indicates that the commission will not be able to wind up its activities by 2008.

42. THANK YOU